Stock Market Nerd – Market Headlines – January 27, 2024
Google Cloud is partnering with Hugging Face to try to win over more developer talent. Hugging Face is a very popular open-source model provider. If Anthropic and OpenAI are the most well-known purely GenAI players, this is the 3rd. Google also ended its partnership with another AI first called Appen. In related news, the FTC has begun investigations into Google’s, Microsoft’s and Amazon’s investments in Hugging Face, Anthropic and OpenAI. What else is new?
Amazon continues to announce more investments in new regions to expand its cloud footprint. This week, it announced a new $10 billion budget for Mississippi expansion.
Another week, another Microsoft breach. This week, Russian state-sponsored adversaries hacked into Microsoft employee emails. Microsoft does many things extremely well. The firm’s enterprise bundle is perhaps the best in the world. Still, cybersecurity is just not its strength.
Disney rolled out some new tech this week. It’s called a Holotile floor and allows for free movement with the floor keeping you in a fixed location. This will surely be relevant for the metaverse and AR/VR. Still, I can’t help but see this and think “oh great, another distraction from the core business.” This is not the type of thing Disney should be creating internally. It should create elite content, and let the Apples of the world build the Holotiles. Save your money; cut this cost; sell the tech. In other potential Disney news, the NFL playoffs continue to set viewership records. The NFL ESPN partnership needs to happen.
Paramount will conduct a series of layoffs next month. This is as M&A pressure builds and the need for cost-rightsizing does too. Netflix sees a lot of streaming consolidation taking place this year. Third Point sees Shopify results coming in roughly in line with consensus when it reports earnings next month.