Tencent’s Revenue Rises
Tencent (HKF:0700), the Chinese tech giant, experienced accelerated revenues in the first quarter as the country’s economy rebounded after the end of its zero-Covid policy. In the three months leading up to March, the social media and gaming group reported an 11% rise in revenue, reaching Rmb150bn ($21bn) compared to the same period last year. Additionally, the company’s net profit increased by 10% to Rmb25.8bn.
Target’s Sales Stalled, Profits Fell
Target’s (NYSE:TGT) sales growth stalled and profits fell in the most recent quarter as consumers continued to reduce spending on nonessential items while facing rising costs. Comparable sales, which include both physical stores and digital channels operating for at least 12 months, remained flat for the quarter ending April 29 compared to the same period last year. This figure is slightly lower than the previous quarter’s 0.7% increase.
Netflix Faces Ad Tier Challenges
Netflix (NASDAQ:NFLX), the streaming giant, boasts the largest base of subscribers globally compared to any other streaming service. However, as it prepares for its first major presentation to Madison Avenue, it faces the challenge of having a relatively small pool of customers paying for its ad-supported version. As of March, four months after its launch, Netflix’s $6.99-a-month ad tier had 937,616 subscribers in the US, while Disney+’s ad-backed plan, which debuted a few weeks later than Netflix, had 863,791 subscribers, according to subscription-analytics firm Antenna.
IBM and Google Invest in Quantum
IBM (NYSE:IBM) and Google (NASDAQ:GOOG) have committed $150 million to quantum-computing research at the University of Chicago and the University of Tokyo as part of efforts by the US and Japan to maintain an advantage over a fast-rising China. Quantum computers are a highly sought-after area of research due to their potential in solving problems that classical computers alone cannot handle. These include tasks like modeling the interaction of drug molecules with the body’s proteins or analyzing the atomic-scale workings of batteries.
Purplebricks Agrees to Sell for £1
Purplebricks (LSE:PURP) has reached an agreement to sell its business for £1, marking the end of the journey for the online estate agent that aimed to disrupt the UK property market. Under the deal with online estate agency Strike, Purplebricks’ business, assets, and most liabilities will change hands, while the company will retain up to £5.5m in cash to distribute to shareholders, including German media group Axel Springer.
Scottish Mortgage Trust Defends Strategy
Baillie Gifford’s Scottish Mortgage Investment Trust (LSE:SMT) has urged its shareholders to remain patient and disciplined as it defends its investment approach following a challenging year, which resulted in a one-third drop in its shares. The trust’s strategy revolves around identifying high-growth companies, such as Moderna (NASDAQ:MRNA), ASML (NASDAQ:ASML), and Tesla (NASDAQ:TSLA), which have the potential to transform society. Despite these stocks experiencing a sell-off over the past year due to aggressive interest rate hikes by central banks like the US Federal Reserve, the trust maintains its long-term investment outlook.
Shein’s Valuation Drops Amid Scrutiny
Shein, the online fashion company that gained popularity among American shoppers during the pandemic, has raised $2 billion in its latest fundraising round, valuing the company at $66 billion. However, this is a significant drop from its previous valuation, which was one-third higher just a year ago. The company was forced to reduce its valuation due to a decline in tech-company share prices. Additionally, the company is facing increased scrutiny from U.S. lawmakers regarding its labor and environmental practices.
SBB Dividend Postponement Impacts CEO
SBB (STO:SBB-B), one of Sweden’s largest commercial landlords, has postponed dividend payments to conserve cash. However, this move has had an impact on its CEO, Ilija Batljan. His company, Ilija Batljan Invest AB, could see a significant drop in its total recurring income, with most of it coming from the real estate company. Experts estimate the income could decrease to 100 million kronor ($9.6 million) this year, down from 154 million in 2022. As a result, the company may need to rely on cash reserves or liquid asset sales to meet its debt payments and other expenses.
Deutsche Bank to Reduce Office Space
Deutsche Bank AG (XE:DBK) plans to reduce office space by 40% at its primary location as more employees work from home. The bank expects to achieve this reduction by the end of 2024 across Frankfurt and nearby Eschborn. Since the introduction of a hybrid work model three years ago, almost two-thirds of employees have registered for it. This model allows up to three days of home office per week.
Elizabeth Holmes Denied Prison Release
Elizabeth Holmes, the founder of Theranos, a blood-testing startup, cannot remain out of prison while appealing her conviction, according to a court ruling on Tuesday. The U.S. Court of Appeals for the Ninth Circuit found that Holmes’s appeal did not raise a substantial legal question, and even if it did, it was unlikely to overturn her fraud conviction. Holmes was convicted of wire fraud and conspiracy to commit wire fraud against the company’s investors in January 2022 and was sentenced to over 11 years in prison.