MARKET RECAP → The S&P 500 rose to a fresh all-time closing high Tuesday as earnings season carries on in full swing. The latest high-profile report came from Netflix after the closing bell as the Blockbuster-killer reportedly reached 260.8 million paid subscribers in Q4, topping Wall Street’s expectations. The results come less than a year after its password crackdown, begging the question of how much of its success can be attributed to its new-and-improved “Netflix and Bill” approach. Bitcoin (BTC) declined 2% on the day, declining below the $40K level as the cryptocurrency cools off following a weeks-long hype cycle.
ALPHABET CUTS AI TIES → ? Alphabet’s sudden breakup with Appen, the AI whisperer behind Bard and Google Search, marks a seismic shift in AI strategy, leaving Appen to navigate the choppy waters of a rapidly evolving tech landscape. NETFLIX TAG-TEAMS WITH WWE → ?♂️ Netflix clinches a $5 billion deal to stream WWE’s “Raw,” stepping into the live sports arena and giving WWE a global stage, while TKO’s stock body slams the market with a 20% surge. |
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| Sean Horgan Head of Investor Relations @ MoneyLion
$shorgan |
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? Alphabet ended its contract with Appen, the AI data firm instrumental in training Google’s Bard and enhancing Google Search. This abrupt termination, effective March 19, blindsided Appen, which derived a third of its revenue from Alphabet, signaling a significant shift in Alphabet’s AI strategy.
? Appen, once a darling in the AI training world for giants like Microsoft, Apple, Meta, Google, and Amazon, faces a tough road ahead. The company’s revenue plummeted by 30% in 2023, a stark contrast to its peak in 2020, reflecting challenges in adapting to the evolving AI landscape and internal organizational issues.
? The split highlights the changing dynamics in AI development, with companies like Google now relying less on external data training services. This move could reshape the AI training industry, as firms like Appen scramble to adjust their strategies amidst declining revenues and shifting market demands. |
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NETFLIX TAG-TEAMS WITH WWE |
? Netflix and TKO Group Holdings announced a groundbreaking 10-year, $5 billion deal for streaming WWE’s “Raw.” Starting next year, Netflix will stream “Raw” globally, marking its first major leap into live sports. The deal includes exclusive rights in the U.S., Canada, U.K., and Latin America, and encompasses all WWE shows and specials outside the U.S.
? Following the announcement, TKO shares surged over 20%, with Dwayne Johnson joining its board. Netflix shares saw a modest rise. This strategic move by Netflix, known for its limited live programming, represents a significant shift, potentially boosting its platform with “Raw,” which currently airs on USA Network and attracts 17.5 million unique viewers annually.
? The deal aligns with Netflix’s global expansion goals, offering WWE access to about 250 million subscribers worldwide. Netflix’s recent openness to new strategies, like introducing an ad-tier membership and cracking down on subscription sharing, complements WWE’s vision, making Netflix an ideal partner for broadcasting “Raw.” |
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Johnson & Johnson to settle talc baby powder investigation, will reportedly pay $700 million (CNBC) P&G’s beauty sales hurt by an unlikely headwind: A wastewater release in Japan (CNBC)
Amazon wants to shape the future of car-buying. Dealers are skeptical (CNBC)
Best-picture Oscar nominees ‘Barbenheimer’ account for 88% of the slate’s box-office haul (CNBC)
Appeals court upholds ‘pharma bro’ Martin Shkreli lifetime ban from drug industry (CNBC) 2024 Oscar nominations: See the full list (Mashable) Can private companies carry NASA back to the Moon? (The Verge)
More than 400 Condé Nast staffers stage one-day walkout to protest layoffs (CNN)
Police arrest California woman for allegedly stealing 65 Stanley cups (CNN)
Brex, the fintech giant valued at $12.3 billion, announced it will lay off 20% of its staff (Fortune) |
And if you want more, be sure to check out the MoneyLion blog for tips, hacks and all things money. (MoneyLife) |
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