Demand for AI Chips Drives Nvidia to Revenue Record in Q2

Nvidia announced Q2 revenue of $13.51 billion, a 101 percent year-over-year increase that sets a new company record. The data center division — which accounts for the majority of AI chip sales — also established a new benchmark: $10.32 billion in Q2, a 171 percent leap over the prior fiscal Q2. Nvidia projects that revenue for the current quarter will hit $16 billion — about $3.5 billion above analysts’ expectations. Nvidia chips power OpenAI’s popular ChatGPT and other generative AI and cloud computing apps from companies including Amazon, Google, Meta Platforms, Microsoft and VMWare. Continue reading Demand for AI Chips Drives Nvidia to Revenue Record in Q2

KKR Will Pay $1.62 Billion for Paramount’s Simon & Schuster

Paramount Global has agreed to sell publishing giant Simon & Schuster to private equity firm KKR for $1.62 billion in an all-cash transaction. Paramount Global President and CEO Bob Bakish said the transaction “delivers excellent value to Paramount shareholders while also positioning Simon & Schuster for its next phase of growth with KKR.” On closing, expected in the first half of 2024, Simon & Schuster will become a standalone private company under the continued leadership of President and CEO Jonathan Karp and COO and CFO Dennis Eulau. Continue reading KKR Will Pay $1.62 Billion for Paramount’s Simon & Schuster

Apple’s Sales Decline Tempered by Record for Services Arm

Apple experienced its third consecutive quarter of declining sales in Q2, with a 1.4 percent slip to revenue of $81.8 billion. But the Cupertino-based company managed to generate record performance in its Services division, up 8.2 percent to $21.21 billion. Sales of the company’s largest device segment, iPhones, underperformed estimates with $39.7 billion in sales, a 2.4 percent dip year-over-year. Overall, however, Apple slightly overperformed Wall Street expectations, which were forecast at $81.64 billion for the quarter ending in June. For Q2, Apple reported 1 billion paid subscriptions — including Apple Music, Apple TV+ and third-party apps. Continue reading Apple’s Sales Decline Tempered by Record for Services Arm

AWS, Advertising Drive Amazon to 11 Percent Revenue Gain

Amazon’s AWS cloud-computing unit generated $22.1 billion in Q2, a 12 percent year-over-year gain that was a highlight in a strong quarter for the e-commerce giant. The company generated a total of $134.4 billion in revenue for the period ending in June, an 11 percent increase over the prior year. Advertising was also strong, jumping 22 percent to $10.68 billion. Cost-cutting and rebounding e-commerce helped propel the Seattle-based company to a quarterly profit of $6.75 billion (its strongest performance since Q4 2021), which contrasted sharply with a loss in the same period last year. Continue reading AWS, Advertising Drive Amazon to 11 Percent Revenue Gain

Pinterest Touts AI and Amazon Partnership with Q2 Earnings

Social image pinboarding and shopping inspiration platform Pinterest touted its recently announced Amazon partnership and AI efforts as part of its Q2 2023 earnings, which showed a 6 percent gain in year-over-year revenue of $708 million, beating analyst expectations. Pinterest announced the multiyear partnership with Amazon that marked a Pinterest first for third-party ads. On the investor call, Pinterest CEO Bill Ready told analysts the company has been testing Amazon ads traffic and is “very pleased” with the early results. When users click on Amazon ads on Pinterest they land on Amazon’s site to complete their purchase. Continue reading Pinterest Touts AI and Amazon Partnership with Q2 Earnings

Meta Sees Double-Digit Growth for the First Time Since 2021

Meta Platforms had a successful Q2, reporting double-digit growth for the first time since Q4 2021. The performance was attributed to a rebound in the digital advertising sector. The good news comes with a warning, as the company says it plans to increase spending on virtual reality and artificial intelligence next year. The parent of Facebook and Instagram reported revenue of just under $32 billion for the period ending June 30, an 11 percent gain over 2022. Advertising contributed a whopping $31.5 billion, growing nearly 12 percent year-over-year. Continue reading Meta Sees Double-Digit Growth for the First Time Since 2021

Search Stays Strong and YouTube Rebounds in Alphabet Q2

Alphabet posted a strong second quarter, with Google Cloud revenue climbing 28 percent year-over-year, to $8.03 billion, and overall revenue gaining 7 percent, to $74.6 billion, exceeding analyst expectations, as did the $18 billion in net income. Google Search ad sales grew by nearly 5 percent, to $42.6 billion, while ad sales from Google’s YouTube streaming platform rose almost 4 percent, to $7.7 billion. YouTube had in recent quarters sustained revenue declines, attributed to increased competition from TikTok and others, but was finally able to reverse the downward trend. Continue reading Search Stays Strong and YouTube Rebounds in Alphabet Q2

Microsoft Q2 Marks a Quarterly Sales Record of $56.2 Billion

Microsoft Cloud drove record sales and profits for Q2, which saw a year-over-year revenue gain of 8 percent to $56.2 billion for April through June. Net income topped $20 billion, a 20 percent gain that beat analyst expectations and the company’s own estimates. Microsoft Cloud revenue for Q2 was up 21 percent, to $30.3 billion. And the company is beginning to see the results of its investments in artificial intelligence. Q2 is Microsoft’s second record-setting quarter this year, topping the three-month high of $52.9 billion in Q1. The previous profit record was $18.8 billion in Q4 2021. Continue reading Microsoft Q2 Marks a Quarterly Sales Record of $56.2 Billion

Twitter Rolls Out Its Ad-Revenue Sharing for Verified Creators

As Twitter seeks to reinvent its business model, the company is inviting some high-profile creators to share ad revenue. Described as amounting to “millions of dollars,” the company’s first payments have reportedly been issued to popular Twitter posters including right-wing influencer Andrew Tate and the left-leaning twins Ed and Brian Krassenstein. Platform owner Elon Musk tweeted last month that the first block of payments would total $5 million. Twitter has initially launched the program to an invitation-only group “who will be invited to accept payment” and “will soon launch an application process” for broader outreach. Continue reading Twitter Rolls Out Its Ad-Revenue Sharing for Verified Creators

LG Unveils Plans to Turn webOS into Media and Ad Platform

LG Electronics has unveiled a plan to increase global revenue from 2022’s $51 billion to about $79 billion by 2030 as it transitions to a “smart life solution company.” A big part of that will be through subscriptions to add-on services for its TVs and home appliances. The South Korean tech giant’s CEO William Cho said the idea is to get the LG smart system, webOS, onto more third-party brands. Cho outlined plans for a “platform-based service business model that continuously generates profits, such as content and services, subscriptions and solutions” across all product categories. Continue reading LG Unveils Plans to Turn webOS into Media and Ad Platform

Snap’s Ad Revenue-Sharing Draws Creators Back to Platform

After significantly curbing its creator payout program, Snap Inc. has largely rejuvenated its Snapchat platform with the implementation of a revenue-sharing option that has lured back some top talent, according to reports. After a testing period that began last year, Snap in April opened to all eligible users a program that allows creators to earn a portion of revenue from ads appearing between their posts. Several thousand participants are said to have qualified for the program, in which those who achieve certain goals become eligible for “Snap Star” status. Continue reading Snap’s Ad Revenue-Sharing Draws Creators Back to Platform

White House: Big Tech Shouldn’t Be Forced to Pay ISP Fees

As consumers increasingly cord-cut, severing the once-profitable content subscriptions that offset infrastructure costs for ISPs, governments are now looking to charge Big Tech companies for access to broadband networks, which are expensive to install and maintain. The European Commission is being lobbied by telecom firms to implement such a plan, which the Biden administration is urging EU lawmakers to reject on the basis it would be difficult to enforce and could also potentially undermine net neutrality. Direct payments to telecom operators “could reinforce the dominant market position of the largest operators,” the U.S. said in response. Continue reading White House: Big Tech Shouldn’t Be Forced to Pay ISP Fees

Advertising Exec Linda Yaccarino Named New CEO of Twitter

Twitter 2.0 is ready for takeoff, now that former NBCUniversal advertising chief Linda Yaccarino has been appointed the social media giant’s new CEO. Yaccarino has extensive experience in advertising and has long been one of Madison Avenue’s major power brokers. Twitter, which relies primarily on ad revenue, is still trying to recover from stumbling after Elon Musk alienated sponsors in a series of erratic moves immediately after acquiring the company for $44 billion in October. Musk says he will now focus on product design and technology while Yaccarino concentrates on business development. Continue reading Advertising Exec Linda Yaccarino Named New CEO of Twitter

Meta Back on Growth Curve Following Three Tough Quarters

After three straight quarters of declining revenue, Meta Platforms posted a 3 percent year-over-year gain in Q1, for a total of $28.6 billion. Earnings fell by 24 percent, to $5.7 billion, due in part to restructuring charges. But the bad news was offset by strong user growth, including 37 million daily active users for Facebook, up 4 percent from Q1 2022. The results beat Wall Street expectations and exceeded Meta’s own guidance. Meta CEO Mark Zuckerberg called it “a good quarter,” adding that “our AI work is driving good results across our apps and business.” Continue reading Meta Back on Growth Curve Following Three Tough Quarters

Netflix Delays Password-Sharing Fees, Cancels DVD Rentals

Netflix followed its triumphant Q4 with mixed results for Q1, the first quarter under new co-CEOs Ted Sarandos and Greg Peters. The period ending March 31 produced profit of $1.31 billion, down 18 percent year over year. Revenue was up 3.6 percent to $8.16 billion from $7.87 billion in Q1 2022. Paid sharing was launched in four countries in Q1, but the company delayed the broader rollout that was to come with a global crackdown on password piggy-backers, which was originally scheduled for Q1. The wider initiative, which includes the U.S., is now set for Q2. In addition, Netflix announced it would shutter its DVD rent-by-mail program. Continue reading Netflix Delays Password-Sharing Fees, Cancels DVD Rentals