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| Here's a look at today's tech briefing: - Trump's social media stock falls after firm reports $58M loss.
- Tesla vehicle deliveries fall 8.5% year-over-year.
- Amazon will phase out cashierless tech from grocery stores.
- Discord will introduce ads for the first time.
- Yahoo acquires Artifact, an AI-powered news app.
Beth
p/beth-duckett | |
| 1 | | Shares of Donald Trump's social media company fell by over 20% on Monday after the firm disclosed a net loss of over $58M last year. Trump Media & Technology Group, which owns Truth Social, began trading on the Nasdaq last week under the ticker symbol DJT. More: - On its March 26 debut, the stock soared to nearly $58 but fell to $48.66 after Monday's negative financial disclosure.
- Trump Media lost over $58M in 2023 on revenues of $4.1M, up from $1.47M in revenue in 2022.
- In the regulatory filings, the company shared doubts about having enough funds to cover its liabilities as they are due.
- The company acknowledged that its success partly relies on Trump's popularity, noting that its brand value could fall if his favorability declines.
Zoom out: - Analyst Ross Benes argued that Truth Social's meager revenues, coupled with an unclear profitability path, led to its unsustainably high debut stock price
- Trump's majority stake of 78.75 million shares, valued at over $6B at its peak, dropped to around $3.8B after Monday's sell-off.
- Under a lock-up provision, Trump cannot sell or borrow against his shares for six months. While he could request a waiver from the board, that could still trigger more selling.
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| 2 | | Tesla delivered 386,810 vehicles in Q1 2024, down 20% from the previous quarter and an 8.5% drop year-over-year. It was Tesla's first YoY decline in deliveries since Q2 2020. 
What the numbers say: During the first three months of this year, Tesla delivered 369,783 Model 3s and Model Ys and 17,027 other models, far below analysts' expectations of around 457,000 deliveries. The company hasn't delivered fewer than 400,000 vehicles in a quarter since Q3 2022. What it means: Tesla attributed the decline to early production ramp-ups for the updated Model 3 at its Fremont, California factory, along with shipping delays caused by Houthi rebel attacks in the Red Sea, and an arson attack by environmental activists at its Berlin, Germany factory. The disruptions caused temporary factory closures and production pauses. The bigger picture: Tesla has also been dealing with increasing competition in the EV market, where competitors like Ford and General Motors have lowered prices for their electric vehicles. In China, Tesla faces rivalries from domestic manufacturers including Xiaomi and BYD, which outpaced Tesla in new energy vehicle production for the second year in 2023. Meanwhile, a survey by Caliber suggests that consumer interest in buying Teslas in the U.S. has fallen, which the market intelligence firm partly attributed to Elon Musk's polarizing image. | | | |
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| 3 | | Amazon will phase out its cashierless "Just Walk Out" technology from its grocery stores and replace it with smart shopping carts. Amazon's Dash Carts are equipped with on-cart scanners and screens for users to check out while shopping. More: - Just over half of Amazon Fresh grocery stores use the Just Walk Out technology, which tracks items that shoppers place in their carts through ceiling-mounted cameras and shelf sensors.
- Supported by algorithms, the system automatically charges customers upon leaving the store and sends them a receipt later.
- Amazon will now remove the technology in its grocery stores as they are remodeled this year and won't feature it in new locations.
- The company said it will replace the tech with smart carts, which allow customers to scan items and see savings and receipts as they shop.
Zoom out: - Some Fresh stores in the U.K., along with certain Amazon Go convenience stores, will keep the Just Walk Out technology.
- First launched in 2016, Just Walk Out has faced challenges including high costs and delayed receipts to customers.
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| 4 | | Discord, the gaming social media platform, is set to introduce advertisements this week after previously being ad-free. Video game companies will be able to advertise on Discord, offering users rewards for completing in-game tasks. More: - CEO Jason Citron has previously said Discord wouldn't rely on ads like Facebook, TikTok, and others do.
- The company is now pivoting to introduce sponsored ads as a way to boost revenue, the Wall Street Journal reports.
- The ads, tailored to users' location, age, and gameplay, will be displayed in the bottom left corner of the app.
- Discord users will have the option to deactivate some ads through their settings, though they still could see them elsewhere.
- The company is now hiring for some ad-sales positions.
Zoom out: - Meghana Dhar, a tech investor and adviser, said Discord's move could affect user trust, possibly leading them to explore other platforms.
- Discord reported more than 200 million monthly active users in March.
- Its revenue has surged to over $600M annually, quadrupling its 2020 earnings.
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| 5 | | Yahoo announced its acquisition of Artifact, an AI-powered news app developed by Instagram co-founders Kevin Systrom and Mike Krieger. Yahoo said it plans to incorporate Artifact's AI personalization tech and features into Yahoo News and other products. More: - Financial terms of the deal, finalized last week, were not made public.
- As a result of the acquisition, Artifact's news recommendation app is no longer a standalone service.
- Yahoo said incorporating Artifact's capabilities through its portfolio will "connect users with even richer content experiences and tailored personalization."
- Artifact's co-founders, Krieger and Systrom, will serve as "special advisers" for Yahoo but will not join the web giant.
Zoom out: - Artifact, launched in January 2023, gained traction for its personalized news feeds with AI-powered features like news summaries.
- Unlike Instagram, Artifact didn't attract a large audience. Systrom and Krieger announced they'd shut it down in January but kept it going until they sold it.
- With over 185 million monthly visitors to Yahoo News, Artifact's personalization and recommendation tech will reach a wider audience.
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| 6 | | Cognition Labs, developer of an AI coding tool, is in talks with investors to raise funds at a valuation of up to $2B. The startup was valued at $350M earlier this year, after raising a $21M funding round led by the Peter Thiel-founded Founders Fund. More: - Venture capital firms, including Founders Fund, are now in talks to invest in Cognition's current funding round.
- The startup's potential $2B valuation would mark a sixfold increase in weeks.
- Originally founded as a crypto company, Cognition pivoted to focus on AI amid the rapidly growing interest in technology.
Zoom out: - Cognition recently launched Devin, its AI coding tool built on OpenAI technology.
- Devin, which it calls "the world's first fully autonomous AI software engineer," can handle more complex coding tasks like creating websites.
- While chatbots like ChatGPT can generate code, Devin can also write, test, and implement the code.
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 | AI and technology writer | | Beth is a contributing editor and writer of Inside's AI and Tech newsletters. She has written for publications including USA Today, the Arizona Business Gazette, and The Arizona Republic, where she received recognition with a Pulitzer Prize nomination and a First Amendment Award for collaborative reporting on state pension cost increases. You can reach her at Beth.Duckett@yahoo.com. | | This newsletter was edited by Beth Duckett | |
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