A sharp decline in demand for PCs is prompting Intel to reevaluate its expenditures, with reduced factory hours and staff reductions among the options under consideration. Intel CEO Pat Gelsinger also says the company is considering divestitures as it seeks to cope with a 20 percent drop in Q3 revenue, to $15.3 billion, and full-year outlook downsized by $1 billion. Intel has been undergoing a reinvention of sorts as it steps into the role of foundry. Increased capex for new plant construction means surgical precision is needed to achieve a goal of $3 billion in 2023 cost cuts. Continue reading With Revenue Down 20 Percent, Intel Plans to Reduce Costs

As Netflix pivots to add a lower-priced ad-supported tier, it is taking on its biggest challenge since shifting to streaming from its DVD-by-mail model, observers say, noting that the move to integrate advertising puts Netflix, once a disruptor, in the position of playing catch-up with rivals that have already adapted their business models to include less expensive, ad-supported options for consumers. Netflix hasn’t disclosed pricing for its ad-supported tier, but it will presumably be below the $9.99 fee for its least expensive ad-free tier. Reports are beginning to surface, however, as to ad rates, and they’re not cheap. Continue reading Netflix Is ‘Shifting Gears, and Fast’ to Roll Out Its New Ad Tier

Chinese tech and entertainment conglomerate Tencent Holdings posted a 23 percent first quarter profit decline on earnings that inched up only 0.1 percent, its worst results since publicly listing on the Hong Kong Stock Exchange in 2004. China’s COVID-19 resurgence and the ensuing regulatory crackdown of the past year were cited as factors. The world’s largest video game developer said that it is refocusing on quality product as Beijing telegraphs it will limit the number of titles release in the coming months. Authorities suspended video game licenses and put time restrictions on game streaming in an effort to protect the nation’s youth. Continue reading Tencent Reports a Significant Profit Decline on Flat Revenues

According to corporate filings and information from sources, Amazon has inked “at least a dozen deals” in which publicly traded companies win Amazon as a client for their goods in exchange for so-called warrants, which allows the Big Tech company to buy stock at potentially below-market prices. Over the last 10 years, Amazon has struck 75+ such deals with privately held companies, said one source. Amazon’s stakes in these deals equal “billions of dollars,” in businesses that range from call centers to natural gas providers. Continue reading Warrant Deals Can Result in Amazon Buying Stock in Vendors

For the second straight quarter, Netflix fell short of its subscriber-growth target. For some, this raises questions about Netflix’s ability to fend off competition in an increasingly crowded market, particularly as traditional media companies continue flooding the space with video-streaming services. On Wednesday, however, Netflix shares rose 8.5 percent based on news that the overall subscriber base did grow in the 3rd quarter, it didn’t lose domestic numbers, and it also saw strong international subscriber growth.

Continue reading Netflix Remains Confident, Despite Increased Competition

Apple reported record revenue and profit for the fourth consecutive quarter, due to higher iPhone prices and App Store sales, but shares fell 6.5 percent to $207.76 in after-hours trading. Investors were unhappy about the company’s announcement that it plans to stop reporting unit sales for products. Apple’s numbers reflect a trend of tech share price drops, due to investor concern about the combination of high valuations, slowing revenue growth and rising costs. Apple forecasts that December quarter revenue will be between $89 billion and $93 billion. Continue reading Apple Shares Dip Despite Report of Record Revenue, Profit

Amazon, Berkshire Hathaway and JPMorgan Chase & Co. are partnering to find a way to reduce healthcare costs for their U.S. employees. The companies are motivated by rising healthcare costs in the U.S., and their joint new company will target technological solutions for a simpler and more economical healthcare solution. They did not reveal, however, how much money they have committed to the effort or whether it would expand to include employees outside the U.S., but did emphasize the effort would not be a profit-making venture. Continue reading Amazon, Berkshire Hathaway, JPMorgan Partner on Healthcare

The Depository Trust and Clearing Corporation (DTCC), the “back end” for much of Wall Street trading, is replacing a central database with Bitcoin-inspired software. The New York-based DTCC records and reports almost every stock, bond and valuable derivative trade in the U.S. IBM, already experienced in blockchain technology, is leading the DTCC software transition, which is slated to be functioning by early 2018. The shift marks Wall Street’s most serious effort thus far to adopt Bitcoin’s underlying technology. Continue reading Wall Street Adopts Blockchain Technology to Record Trades

Alibaba, China’s largest and fastest growing e-commerce company, filed for a $1 billion IPO, which could make it one of the most valuable tech companies in the world. The company made $6.5 billion and saw a 57 percent increase in revenue in the last nine months of 2013. Alibaba handles more business than any other e-commerce company, with transactions on its three online sites — Taobao, Tmall and Alibaba.com — totaling $248 billion, which is more than eBay and Amazon combined. Continue reading Chinese E-Commerce Company Alibaba Files IPO in the U.S.