Daily Archives: January 5, 2024

Anyone invested broadly in the U.S. stock market this past year can give thanks for the Super Seven. These seven world-beating technology stocks have been on a tear, accounting for much of the markets run to near-record territory.

The S&P 500, which tracks 500 of the biggest stocks, was up 24% for 2023. The Super Seven, on the other hand, far outpaced those gains, with chipmaker Nvidia, electric vehicle-maker Tesla and Facebook parent Meta each more than doubling in value during the year. Amazon, Microsoft and Google parent Alphabet also rose by more than twice as much as the index.

Apple, the relative laggard of the group, still rose nearly 50%, and remained the worlds most valuable company, with a market capitalization of $3 trillion. Altogether, the Super Seven were valued at more than $12 trillion at year-end. Thats a 12 followed by 12 zeros.

So far, 2024 hasnt been as kind, as profit-taking by investors has put a modest dent in those 2023 gains. Still, it would be a big surprise to see these stocks suffer a significant market downdraft this year.

The incredible dominance of these giant tech companies gives us pause but also reason for optimism about this showy display of American innovation and business smarts.

On the downside, concentrating so much value in just seven stocks is a ticket to volatility. Many U.S. stocks did not perform especially well last year, even as the Super Seven lifted the overall U.S. market to impressive levels. A sharp decline in those seven high-flyers could sink things in future years.

Moreover, concerns about excess market power and anti-competitive behavior have dogged the Super Seven, most notably Alphabet, which is embroiled in a showdown with federal trustbusters.

At a trial last fall in Washington, the Justice Department and dozens of states accused the company of using its money and influence to unfairly make Google the worlds default search engine, freezing out smaller competitors. Closing arguments are scheduled for May, and the judge who will decide the case could conceivably order the company to spin off its Chrome browser and Android operating system. Alphabets characteristically immodest defense is that its product is so much better than anyone elses that of course everybody wants it.

Separate legal cases in the U.S. and Europe accuse Alphabet of using its market power to monopolize online advertising. And earlier in December, after a monthlong antitrust trial involving Epic Games, maker of the hit video game Fortnite, a jury took just three hours to find Google at fault for anticompetitive behavior in its app store. The company has vowed to appeal.

In surveys, American consumers say the tech giants have far too much power, putting smaller businesses and consumers at an unfair disadvantage. Many employees at the Super Seven answer those surveys the same way, saying their employers are too powerful. That widely held opinion cuts across party lines. Theres bipartisan support for reining in the power of tech giants and holding them accountable.

Yet even as Europe makes progress on updating its rules and enforcing reasonable standards of conduct, the U.S. is left to litigate one case at a time, as a dysfunctional Congress fails to pass up-to-date legislation.

At the same time that we worry about the anti-competitive potential of Big Tech, we cant help but marvel at its incredible success.

The lofty stock valuations arent an obvious case of speculative fever, as with the dot-com bust almost a quarter-century ago. These companies are on a roll, minting money; their futures might be bumpy, but they look bright.

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Read the latest editorials and commentary curated by the Tribune Opinion team.

Importantly, U.S. tech companies have a strong record of investing in themselves, and the Super Seven are leaders in that area. They plow immense piles of cash into capital expenditures and research and development on everything from virtual reality systems to self-driving cars, cloud computing and artificial intelligence computing. Each company has a different niche, and Nvidia, the most recent to join this elite group, is the markets hottest play in the potentially transformative AI sector.

One of the beauties of technology-research investments is that they typically lead to lower prices for consumers. The computing power available at a piddly cost to everyday people today would have been unfathomable a few decades ago.

Another beneficial side effect of these businesses is their contribution to national security. Staying on the cutting edge of AI, chip design and cybersecurity is critical to Americas national interest. Theres no way any government could gather the smartest minds as effectively as the Super Seven, which provide lucrative employment opportunities for the best and brightest from across the globe. The result is a brain drain from elsewhere that stands to benefit the U.S.

Over the years, the stock market always had safe bets that seemed like sure things until, eventually, they petered out. The 30 stocks that make up the Dow Jones Industrial Average have had to be changed regularly, with dozens of comings and goings over the indexs century-plus history.

Theres no sure thing in the stock market, and that truism applies to the Super Seven of today. Enjoy their impressive run while it lasts, but watch closely to ensure their success doesnt come at the expense of free markets and fair competition.

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Editorial: 7 tech giants' success is impressive and worrisome - Chicago Tribune

As CES 2024, the most powerful tech event in the world gears up to unfold its tech extravaganza in Las Vegas from January 9-12, the spotlight is set to shine brightly on Korean companies, startups, and innovators. This year, over 550 Korean entities, ranging from global tech giants to Korean startups, are ready to unveil their cutting-edge technologies, cementing South Koreas position as a powerhouse of innovation in the global tech landscape.

CES 2024 will be hosted at Las Vegas Convention Center bringing together 4000+ exhibitors, including global brands and startups, industry professionals, media and government leaders.

Incheon Startup Parks Show of Innovation

Incheon Free Economic Zone Authority (IFEZ) has proudly announced that nine domestic startups nurtured by Incheon Startup Park clinched a remarkable total of 11 CES Innovation Awards. Established in 2003, IFEZ actively supports overseas expansion for local companies, with Incheon Startup Park acting as a launchpad for early-stage startups. Branded as Koreas first Korean Silicon Valley, it facilitates validation, investment, and entry into the global market.

These startups, supported by Incheon Startup Park, cover diverse sectors, including financial technologies, cybersecurity, vehicle tech, advanced mobility, and robotics. Notable mentions include Lordsystem, Microsystems, BANF, Gole Robotics, K-Rangers, Safeware, Sheco, TheLittleCat, and Verses, each recognized for their groundbreaking contributions to their respective fields. IFEZ startups can be found at Incheon/IFEZ Promotion Hall Booth No.9037, LVCC North Hall at CES 2024.

Semiconductors & AI Chip Technologies

South Koreas fabless chipmakers and semiconductor IP companies are set to make waves at CES 2024. DeepX, specializing in AI accelerator chips for neural processing units (NPUs), stands out as a star performer. Winning the CES Innovation Award in three categoriescomputer hardware, embedded technology, and roboticsDeepX leads the charge in the competitive AI semiconductor field. Their AI algorithm technology for edge AI applications and power-efficient NPUs promises real-time applications in smart cameras, mobility solutions, robots, and smart appliances.

Panmnesia, a fabless semiconductor company excelling in Compute Express Link (CXL) technology, is set to showcase its CXL-Enabled AI Accelerator at CES 2024. This innovative technology, capable of sharing memory across multiple hosts without coherency concerns, represents the pinnacle of chip memory architecture.

Chips & Media, a semiconductor IP company founded in 2003, is focusing on on-device AI with its NPUs. They plan to introduce their new NPU design asset, CMNP, at CES, underscoring the significance of NPUs in enabling AI functionalities without reliance on cloud servers.

Content Creation Solution & Batteries for Future

RebuilderAI, a 3D technology startup, has earned the CES Innovation Award in the Mobile Devices & Apps category for its mobile-based 3D content creating solution, VRIN 3D. This innovation allows users to quickly create 3D content by capturing surrounding objects and spaces on their smartphones. RebuilderAIs technology, to be showcased at Booth #61504 (Eureka Park), is recognized for its growth potential and backed by major investments.

LiBEST Inc., a South Korean lithium-ion battery startup, is unveiling an advanced form of flexible batteries at CES 2024. With a focus on applications for AR glasses and head-mounted displays (HMDs), LiBESTs multi-structured flexible batteries showcase innovation in design and functionality. The companys commitment to safety and energy density has earned it recognition at previous CES events. This year LiBEST Inc. will be found at Booth #23227 (LVCC Central Hall).

Korean Tech Giants to Step Up

Korean tech giants are also gearing up to make a splash at CES 2024. Samsung Electronics, the worlds largest mobile phone and memory chipmaker, will present its vision for AI technologies, emphasizing connectivity in the age of AI. LG Electronics, expanding its business portfolio, will introduce new AI-powered technologies, including the Smart Home AI Agent and a concept car unveiling its next-generation mobility vision.

SK Group, Hyundai Motor, and Kia are joining forces to showcase net-zero technologies, electric vehicle batteries, urban air mobility, and more in a thematic pavilion. Hyundai Motor Groups Hyundai and Kia will share their future blueprints for hydrogen energy ecosystems, software, and AI.

CES 2024 is shaping up to be a showcase of Korean ingenuity, with startups, semiconductor companies, and tech giants alike poised to display their innovations on the global stage. From AI chips to 3D content creation, flexible batteries, and beyond, South Koreas tech prowess is set to captivate audiences and contribute significantly to the ongoing global dialogue on emerging technologies. As CES unfolds, the world eagerly awaits the unveiling of these groundbreaking Korean technologies, propelling the nation further into the forefront of global innovation.

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K-Digital Wave: Korean Startups and Tech Giants Ready to Amaze at CES 2024 - koreatechdesk

Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia and Tesla see net 350 bn early year downturn, reversing 2023 rally, according to Bloomberg Magnificent 7 Total Return Index

The year has begun with a decline in trading for the so-called 'Magnificent Seven' of leading technology groups - Apple, Amazon, Alphabet, Microsoft, Meta, Nvidia and Tesla.

Apple's shares are leading the downturn, having fallen by 4.6% and contributing significantly to the general slump that resulted in total loss of 350 bn in market value to the seven companies, according to a Bloomberg tracking index.

We dont know if last years rally has fully ended, but it is completely normal to expect markets will pull back after a rally like we saw, said Steve Sosnick, chief strategist at Interactive Brokers Group, as reported by Bloomberg.

Without the year-end factors that turbocharged the rally, I think were seeing the party winding down.

Apple's stocks dropped following a downgrade by Barclays Plc analysts who predict weaker iPhone demand.

Meanwhile, Tesla experienced an 8.8% decline over four days, its longest streak of losses in more than four weeks. Despite surpassing delivery expectations for electric vehicles in the fourth quarter, Tesla lost its leading position in electric car sales to China's BYD Co.

According to Bloomberg, it's too soon to say the tech surge is over. In 2023, most gains made up for earlier losses, and companies like Amazon, Alphabet, Meta, and Tesla are still below their peak values, hinting at further growth potential.

However, the major tech companies also have a challenging task in 2024. They must keep delivering strong and profitable technology, Sosnick noted.

In December everyone bought the sizzle, he said. Now we have to see if the steak is any good.

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Tech giants see 350 bn early year downturn, reversing 2023 rally - Euronews

Symbotic declined to make the 71-year-old CEO available for an interview. But Cohen has laid out big plans for the companys future in speeches and on calls with analysts.

The vision for Symbotic is to be the best automation company in the world, Cohen said at an investor event in May, where he spoke of moving every box in every warehouse. I cant think of any other vision that suits how big an opportunity this is.

If Symbotic stays at the head of the warehouse automation pack now a $20-billion-a-year industry it will be Cohens second major triumph.

He joined his familys business, C&S Wholesale Grocers, in the 1970s, back when the Keene, N.H.-based company was doing $50 million a year of sales around New England. In 1989, he took over as CEO from his father, Lester, who had taken over for his father and company cofounder Israel Cohen in 1955.

Rick Cohen expanded C&S through acquisitions and built it into the countrys largest grocery wholesaler, a business that sits between supermarket chains and manufacturers like General Mills and Procter & Gamble. With sales of almost $35 billion last year, it ranked as the eighth largest private company in the United States by revenue, according to Forbes (three spots ahead of Fidelity Investments).

Supplying groceries taught Cohen about logistics and automation and opened doors to large retailers, including Walmart, which has been a C&S customer. And in the 1990s, C&S built one of the countrys most advanced automated warehouses in York, Pa.

Cohen was buying automation technology from companies Symbotic would later compete against, analyst Rob Mason at RW Baird said. He understands where the shortcomings reside and hes led Symbotic to design a superior automation solution, Mason said.

Around 2005, an inventor named John Lert reached out to Cohen about starting an automation company for grocery stores. Cohen provided financing to form the startup in 2007, but only Lert was listed on its early corporate filings in Massachusetts as a manager and on its first patents as the inventor.

Initially called CasePick Systems, the startup focused on packing and unpacking pallets of boxes at distribution warehouses. But after having trouble raising money amid the financial crisis, Lert sold his majority stake to Cohen in 2009. He left the company in 2011, just as its first prototype system was installed at a C&S warehouse in Newburgh, N.Y.

We had a complex relationship, Lert said of Cohen in an interview. Im very happy for his success and proud of the work we did.

In 2012, Cohen changed the companys name to Symbotic, reflecting the close relationship the robots would have with a warehouses operations. But perfecting the system wasnt easy, and Cohen had sharp elbows. Though he was the chairman, not the CEO, Cohen involved himself in everything from hiring to product design to sales, some of his former employees said.

He made every decision, whether it was a $100 million decision or $100 decision, and so you just had to know that things were going through him, said Ron Kyslinger, a robotics industry consultant who worked for Cohen at C&S and Symbotic from 2013 to 2015, and later worked for Walmart and Amazon.

Cohen recruited Kyslinger himself, first taking the consultant to visit C&Ss York warehouse, then flying on a private jet to Newburgh to see Symbotics pilot project. Quite frankly, they had a science project, it was very clunky, Kyslinger recalled.

Not everyone thrived at Symbotic. The company went through three CEOs from 2011 until the end of 2017, when Cohen formally stepped in to head the firm, resigning as CEO of C&S, where he remained executive chairman.

In 2022, Cohen again tried to hire an outside CEO. But Michael Loparco, a longtime executive at electronics assembler Jabil, lasted only eight months before resigning in November 2022. (Loparco did not return a call for comment.)

The goal of Symbotics system is to help retailers keep store shelves stocked. Each system takes in pallets of goods on trucks from suppliers, sorts and stashes individual cases of items in a warehouse, and then assembles pallets of assorted cases for shipment to retail store locations as needed. Thats different from the robots at Amazon, which bought North Reading-based Kiva Systems in 2012 to automate the movement of e-commerce orders within its warehouses.

A shampoo maker might send a truck full of cases to a Walmart warehouse, where the Symbotic system stashes the boxes. Then when a particular Walmart store needs more shampoo, Symbotic retrieves some cases and assembles them on a pallet for shipment to the store. The system can mix and match various items on one pallet and even optimize the placement to make stocking shelves in a specific store quicker.

Symbotics technology goes far beyond rivals that try to integrate robots among human package handlers. Its robots-only system is built on a massive 30-foot-high steel frame, typically with 10 levels, for storing goods. Aisles crisscross each level where the flat-topped, round symbots whiz goods around at 25 miles per hour. Built-in lifts move goods from level to level.

An AI controller system gives the robots orders and determines where to store items. Similar items are not grouped together. Instead, Symbotics system works more like a computer hard drive, with similar items scattered all over so they can be retrieved quickly.

A single installation can cost more than $50 million and be the size of a football field or larger. But big customers can save money on labor and warehouse space, while improving speed and efficiency.

Automation has caused job losses in the economy in recent decades, while also improving productivity and leading to new jobs, studies have found. The warehouse jobs replaced by Symbotic and its rivals are particularly demanding, Kyslinger noted. A lot of people manually slugging cases its not a great environment, he said. Automating it makes a heck of a lot of sense.

Rick Cohens big break was getting Walmart to sign on in 2021 to install Symbotic systems in 25 of its regional distribution centers. The retail giant had been testing the technology at one of its Florida distribution centers for more than three years and watched it slowly improve. In 2022, Walmart upped the plan to include all 42 of its centers.

Cohen has said that supplying groceries to Walmart helped land the retail giant as a customer for Symbotic. They remembered me, Cohen said in a 2021 Forbes interview. Its a very small world.

As part of the deal, Walmart got a stake in Symbotic and owned 11 percent of the companys shares as of January 2023. Walmart also can have an observer at board meetings and has the right to match outside investment offers, according to Symbotics annual report.

Walmart vice president Mike Walden said in an email that his company has watched Symbotic grow from a start-up with promising technology to a leader in robotics. . . . Weve solved some of the most difficult challenges in warehouse automation together and look forward to the continued innovation.

Last year was a coming-out party of sorts for Symbotic, after it went public by merging with a blank-check company in 2022. The company held its first investor day in May, taking shareholders and analysts on a tour of a Walmart warehouse in Brooksville, Fla. And in July, Symbotic partnered with Japanese tech and investing giant SoftBank to create a new business called GreenBox that will own and operate fully automated warehouses for smaller customers.

Revenue doubled in the companys just-completed fiscal year to $1.1 billion. (Almost 90 percent of Symbotics revenue came from Walmart.) And Symbotics 330 percent stock gain in 2023 is tops among local tech firms, handily beating second-place finisher DraftKings, which was up 209 percent, and HubSpot, up 101 percent.

Still, Symbotic has only installed 12 fully operating systems in warehouses, with another 35 in development, as of the end of September. Symbotic said it has a backlog of $23 billion of systems on order. Customers pay for installation plus recurring fees for software and help running the systems.

One of the newest customers, liquor distributor Southern Glazers Wine & Spirits, spent months visiting warehouses to watch the Symbotic system in action. The distributor, which makes 7 million deliveries per year to 260,000 retail customers, expects the technology to reduce its error rate assembling pallets from 5 percent to 0.1 percent or less.

Cohen helped close the deal himself, according to Bobby Burg, chief supply chain officer for Southern Glazers.

He seems to have an endless supply of ideas, but very easy to talk to, Burg said. He runs a business and obviously knows the things that a new customer like ourselves would need to hear. [He] did a good job really making us comfortable.

Aaron Pressman can be reached at aaron.pressman@globe.com. Follow him @ampressman.

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Who is Rick Cohen, the New Hampshire billionaire behind Symbotic? - The Boston Globe

When an executive decides to leave a firm for any reason, attempting to hinder their employment elsewhere proves ineffective. Either such executives should be compensated for an extended garden leave, including full performance pay, or they may resort to utilising opaque corporate structures, such as consulting contracts, to work for the company they had intended to join. If the entity fails to persuade the employee to stay back, such pressure tactics are counterproductive, conveying a negative message and implying to potential employees that they too will be constrained in their ability to leave, when they so decide.

Amid the competition to attract top-tier talent, companies must provide more than just financial incentives. They need to emphasise their capacity for growth, ensuring that talent is not only suitably employed but also duly rewarded. Furthermore, in the tech industry, the expectation is evolving towards wealth creation and its distribution among employees, albeit not in the conventional manner. One may even see that for critical tech talent in the era of AI, wealth creation may include the sharing of IP royalties.

The escalating margin pressures from global clients on Indian ITES firms underscore the critical importance of retaining key employees. As clients demand cost-efficient solutions and increased value for their investments, the significance of skilled and experienced personnel becomes paramount. In this competitive environment, retaining key employees who possess domain expertise and contribute to innovation is vital for sustaining service quality and meeting client expectations.

It is indeed the right time for Indian tech giants to consider diversifying their talent pool and, more crucially, expanding the expertise they provide to clients. The diminishing effectiveness of Indian ITES as a talent magnet suggests that organisations need to be genuinely meritocratic, free from the founders firm grip, outdated organisational designs, and living on past legacy. A hard question is whether these companies are perceived as relevant in the broader client mindset.

Srinath Sridharan is a policy researcher and corporate adviser. X: @ssmumbai.

(Disclaimer: The views expressed above are the author's own. They do not necessarily reflect the views of DH).

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Tech majors must refrain from outdated protectionist measures - Deccan Herald

Antitrust Onslaught: The FTC and the Future of Tech Giants

The U.S. Federal Trade Commission (FTC) stands on the precipice of landmark decisions that could redefine its powers and the landscape of the tech industry. At the core of this monumental shift are a series of antitrust lawsuits targeting corporate behemoths such as Amazon, Facebook, and Google.

The FTC has filed a lawsuit against Amazon, accusing the retail titan of engaging in practices that artificially inflate prices. This case could potentially reshape the online retail space, affecting both consumers and competitors. Meanwhile, the FTCs antitrust lawsuit against Facebook is slated for trial in 2024. The social media giant stands accused of abusing its power in the personal social network market, charges that, if proven, could significantly alter the dynamics of social networking.

Google is grappling with antitrust challenges on multiple fronts. A lawsuit from the U.S. Justice Department accuses the tech giant of monopolizing internet search, potentially stymying competition and innovation. Another suit targets Googles ad tech business, alleging similar anti-competitive practices. Video game company Epic Games has emerged victorious in a jury decision against Google regarding in-app payments and app distribution on Android devices. In a related development, Google has agreed to a $700 million settlement with consumers and states, marking a significant development in antitrust litigation.

Furthering its mission to prevent anti-competitive, deceptive, and unfair business practices, the FTC has turned its gaze towards the private equity sector. The commission is pursuing an antitrust lawsuit against the private equity firm Welsh Carson Anderson & Stowe for its healthcare sector investments. This case signals a potential broadening of the FTCs reach, targeting not just corporations, but investment firms as well. In a separate development, the FTC has charged VoIP provider XCast Labs, Inc. with facilitating hundreds of millions of illegal robocalls. The company has agreed to settle the charges, implement a screening process, and sever ties with non-compliant firms, in addition to paying a $10 million civil penalty.

As the FTC embarks on this high-stakes legal journey, the outcomes of these cases could have far-reaching implications for the future of competition, consumer protection, and corporate practice.

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FTC Antitrust Cases: Implications for Tech Giants - BNN Breaking

Tech Giants Release Patches to Fortify Security Systems

Several leading technology companies have moved to address significant vulnerabilities in their systems, rolling out a series of patches in December.

Among those stepping up their security protocols are tech giants Apple, Google, Microsoft, Mozilla, and Apache Software Foundation. Each has been quick to respond, releasing patches to fix various security flaws in their products, underscoring the urgency of the situation.

Apple has released iOS 17.2, which includes 12 security patches. The update addresses issues in the WebKit browser engine, the iPhones Kernel, and ImageIO.

The move is seen as a potent response to potential threats, reinforcing Apples commitment to user security.

Google has been equally proactive, with its Android December Security Bulletin addressing nearly 100 security issues. The company has released patches for critical flaws in the Framework and System, marking a significant stride in its security measures.

Additionally, Google issued an emergency fix for its Chrome browser to address a zero-day vulnerability, further emphasizing the companys dedication to user protection.

Microsofts December Patch Tuesday addressed over 30 vulnerabilities, including several critical remote code execution (RCE) flaws. The swift and comprehensive response reflects Microsofts extensive efforts to fortify its systems against potential security breaches.

Mozilla has fixed 18 security vulnerabilities in its Firefox browser, including a heap buffer overflow issue affecting the WebGL DrawElementsInstanced method.

Meanwhile, the Apache Software Foundation has issued a patch for a critical flaw in its Struts 2 open source developer framework. Both companies have demonstrated their commitment to safeguarding users, taking prompt action to rectify vulnerabilities.

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Major Tech Companies Bolster Security with New Patches - BNN Breaking