Category Archives: Big Tech

Editors of the USA TODAY Network Tennessee Published 5:29 p.m. CT May 10, 2021

Microsoft's President Brad Smith tells Congress it endorses the Journalism Competition and Protection Act (JCPA), that would give news organizations the ability to negotiate collectively, with Microsoft and other tech giants. (March 12) AP Domestic

The system is stacked against news publishers. Google and Facebook pay to license music and many types of content, but they have refused to fairly compensate the creators of critical journalism.

Quality local journalism is essential to creating an informed and engaged public and protecting a thriving democracy.

Over the last year, the publications of the USA TODAY Network Tennessee have published public service journalism covering the coal ash clean up in East Tennessee, the tornadoes that decimated Middle Tennessee, and West Tennessee stories including the Jackson Generals baseball team saga and theByhalia pipelinesaga in Memphis.

Our journalists are your neighbors, fellow shoppers and congregants, and volunteerswhoare dedicated to covering the communities they live, play and work in.

Local journalism, however, has suffered because of large technology company'sdominant practices for years.

Google and Facebook use and benefit from our news content and audiences, but they dont return value to news publishers.

Thats why were asking Congress to support the"Journalism Competition and Preservation Act," a bipartisan measure introduced in the U.S. Senate and U.S. Housein March.

Journalists watch the final Presidential Debate held at Belmont University on Thursday, Oct. 22, 2020, in Nashville, Tenn.(Photo: George Walker IV / The Tennessean)

Over the past 14 months, local journalism has been more important than ever.

From COVID-19s devastating blows to cities and towns of all sizes, to the reignited social justice movement and the explosive 2020 U.S. presidential election and its tumultuous aftermath, people turn to news publishers to keep them informed about the changes happening around the worldand in their own backyards.

News has been more in-demand than at any other time in recent history. But the local news publishers providing this invaluable information are struggling in an online environment dominated by a few big tech platforms.

The tech platforms have been allowed to get bigger and bigger, exerting their power and influence in ways that stifle competition and eat into news publishers revenue.

The term Big Media is thrown around but, as of 2018, Google and Facebook had nearly four times as much revenue as the entirety of the U.S. news media (TV, print and digital). And in the three years since, Google and Facebook have grown tremendously.

Those two companies alone currently attract about 80 percent of digital ad spending and 45 percent of all ad spending in the United States.

Autoplay

Show Thumbnails

Show Captions

The system is stacked against news publishers. Google and Facebook pay to license music and many types of content, but they refuseto fairly compensate the creators ofjournalism.

Because of this, in the last two years, at least 300 news publicationshave closed, with more than 6,000 journalists laid off. A few of the big, national news outlets may be doing okay, but local news publishers, who provide the information that sustains communities, are getting pushed out.

If we dont find a solution for local journalism soon, there wont be any left.

Hear more Tennessee Voices: Get the weekly opinion newsletter for insightful and thought provoking columns.

We have already seen what happened in Australia earlier this year when Facebook removed news in response to proposed legislation requiringthe companyto pay publishers for their content.

In just two days, the void where news once appeared was quickly filled with misinformation and fake news.

We cannot afford to learn what a world without quality journalism would look like.

Fortunately, Facebook reinstated news and the legislation passed in Australia. Now, the rest of the world is moving toward a new and more equitable compensation system for publishers.

After all, social media platforms compensate music publishers and other creators. Its past time for them to compensate those who deliver real local journalism.

The government cannot regulate news under the First Amendment, but Facebook and Google are de facto regulators, deciding what content people see and when.

They have undervalued quality news content and, as a result, the information ecosystem has become increasingly confusing and unhealthy.

We have the solution that will give all forms of news media a decent shot at getting a fair return for their work and checking the power of government and Big Tech.

Local news publishers just want the ability to band together to fight for their future. Ironically, however, current antitrust laws actually protect Big Tech from publishers taking any organized action.

To help resolve this crisis, we are asking our members of CongressSen. Marsha Blackburn and Bill Hagerty, and Reps. Diana Harshbarger, Tim Burchett, Chuck Fleischmann, Scott DesJarlais, Jim Cooper, John Rose, Mark Green, David Kustoff and Steve Cohento support the Journalism Competition and Preservation Act (also known as the Safe Harbor Bill).

The Safe Harbor Billwould give news publishers the ability to seek fair compensation for use of their content, and which would allow them to continue to invest in the critical newsgathering and reporting on which Americans depend.

With the passage of this bill, all news publishers, especially small local publishers, would finally be able to ask the tech platforms for the compensation they need, and deserve.

We applaud those members of Congress across the country and on both sides of the aisle who have already shown their commitment to local journalism by co-sponsoring the Journalism Competition and Preservation Act.

But we need support from every member of Congress.

We hope our congressional representatives will agree that quality reportingfor our community and the future of all local journalism is worth fighting for and will co-sponsor the Safe Harbor Bill today.

Autoplay

Show Thumbnails

Show Captions

The editors of the USA TODAY Network Tennessee adapted and endorsed this editorial from the News Media Alliance.

Read or Share this story: https://www.tennessean.com/story/opinion/editorials/2021/05/10/safe-harbor-bill-stop-big-tech-harming-local-news-publishers/5027724001/

Read more here:

Safe Harbor Bill will stop Facebook and Google from harming local news publishers | Editorial - The Tennessean

A closed retail shop near Zillows downtown Seattle headquarters in summer of 2020. While tech jobs are holding steady in many tech hubs, retail jobs are sinking. (GeekWire photo)

The great migration of tech talent out of large tech hubs like Seattle, San Francisco and Boston may be overblown. At least thats one of the findings of a new report by Indeed, which compared job postings in eight large tech hubs to other major metropolitan areas.

Even as remote work increases, tech jobs remain as concentrated in the big tech hubs as before the pandemic, the report concluded. According to the findings, tech job postings fell less in the eight major tech hubs than other metro areas, which meant the tech geography pattern changed little during the pandemic.

But heres the rub. Overall, job postings across a variety of sectors particularly in retail, childcare and food preparation declined precipitously in the 8 major tech hubs surveyed when compared to other metro areas. The 8 major tech hubs studied included Seattle, San Francisco, Baltimore, Boston, Austin, Washington, D.C., San Jose and Raleigh.

Whats going on here?

With high shares of people working from home, local businesses like shops and restaurants have been getting less traffic. As a result, job postings and employment have suffered, the report noted.

The story is evident for those whove wandered downtown Seattle, where small retail shops and restaurants once bustling with workers grabbing a lunchtime sandwich or after work cocktail remain closed or occupied by a small fraction of patrons. GeekWire explored the impacts of this trend last summer, speaking with small businesses near Zillow Groups downtown headquarters.

As community leaders discuss how urban centers like Seattle rebound from the pandemic, the data from Indeed paints a troubling picture. Booming tech companies hiring remote and non-remote workers stand in contrast to the decimated industries that have historically served those industries in downtown districts. That could be bad news for downtowns.

Jed Kolko, who produced the report for Indeed, told Axios that its too early to tell whether the retail and food service work declines are permanent. But he also speculated that remote workers could shift the economic balance from downtown environments to outlying residential areas.

Could that mean a boom for Burien and Ballard?

See the original post here:

Tech jobs hold steady in Seattle and other big tech hubs, but theres another disturbing trend line - GeekWire

Ziplines fixed-wing drones, able to carry a few kilograms of payload, are being used to deliver medical supplies in Ghana. Ruth McDowall/AFP/Getty Images

Text size

Which companies, public and private, are best-positioned for the next 100 yearsor at least the next few years? We put the question to Jerry Yang, founding partner of AME Cloud Ventures and co-founder of Yahoo!, and a member of Barrons Centennial Roundtable. Yang, a longtime venture capitalist based in Silicon Valley, has seen his share of start-ups and innovations. He highlights some of todays most promising companies and trends in the edited interview below.

Barrons: Which companies excite you these days, and why?

Jerry Yang: Ill start with Zoom Video Communications [ticker: ZM]. Never in a thousand years would we have thought that Zoom would become a verb in this context. This company took the opportunity to become massively skilled in the past 15 months. In hindsight, we might say it was easy for them to have done that, but they had to overcome a lot of privacy and scale issues. They really matured in a hurry. The future for video is huge. How do we enhance it? How do we make video more intelligent and productive?

Will the future belong to Zoom or a host of competitors?

From the big competitors to start-ups, everyone is emulating or attempting to catch up to Zooms capabilities. Zoom has announced a platform marketplace for applications. It is adding more intelligence to its platform, and more productivity tools. In my view, by launching an app store of sorts, Zoom can create an ecosystem that is a defensible barrier to competition.

With todays abundance of low-cost capital, private companies can take risks and have the money to grow.

Zipline, an on-demand delivery service, is another company to watch. It operates fixed-wing drones that carry a few kilograms of payload. They can fly 160 kilometers round trip. When they reach their destination, they drop an insulated package with a parachute. Zipline was founded in Silicon Valley, but its first scaled deployment is medical supply in Rwanda, Africa. Zipline delivers blood supplies and critical medicines. It continues to scale. It is an incredibly exciting company.

Do you expect Zipline to go public in the next few years?

Thats a good question. Companies are raising as much money now in private funding rounds as they would have in an initial public offering. IPOs help with branding and maybe create a new investor base, but if a company just needs capital, there is plenty in the private market. From 2012 to 2015 or 16, there were few companies coming public. The IPO market goes in cycles. With todays abundance of low-cost capital, private companies can take risks and have the money to grow.

What other industries or companies look promising to you?

In the area of artificial intelligence and drug discovery, we invested in Recursion Pharmaceuticals [RXRX], which went public in April. Recursion is based in Salt Lake City, which has become a hotbed for biotech start-ups. The company uses massive data computational tools, lab robotics, and a petabyte-level database to speed up the drug-discovery process. Zymergen [ZY] also operates in an area Im pretty excited aboutbiofacturing. This is a materials manufacturing company, using AI, automation, and biology for scale manufacturing.

How does biology fit into the equation?

Instead of using chemicals, for instance, theyre using yeast fermentation to make new materials and productsfrom new electronic displays to naturally derived bug repellents. Ginkgo Bioworks is another biofacturing company Im excited about. More broadly, the birth of genetic sequencing launched a whole industry thats exciting, including gene editing. Synthetic biology is at an early stage, but were already starting to see companies come to fruition, such as Twist Bioscience [TWST], which manufactures and sells synthetic DNA-based products. The world will need more of these technologies in coming years. Ten years ago, we hadnt printed a single gene. Now were printing tens of millions, and that will go to billions in the next few years.

What other technologies should we be watching?

Ill emphasize a couple of trends. Were moving into a world where cameras will be smarter. Whether cameras are manned by Zoom apps or cars or your watch, they will be equipped with more sensors, and the sensors will get smarter. That means more data will be fed into the cloud. Were also seeing huge investments in natural-language processing. A lot of theoretical work was done in this area, and now were starting to see practical applications. All of this means the cloud is getting smarter. Were going to need a lot more bandwidth. If we build bandwidth, the applications will come. Sensors and devices will be communicating with each other, without human intervention. Thats another massive source of new data that will come online.

The idea of using biomaterials in sensors is still in the research lab, but its something to watch. Sensors made of carbon, instead of silicon, could be much more responsive to an individuals biology.

We havent talked about longevity. Science tells us the average life span for todays teenagers could be well beyond 100.

There will be a lot to live for. Thanks, Jerry.

Write to Lauren R. Rublin at lauren.rublin@dowjones.com

Read more here:

How to Invest in Tomorrows Big Tech Trends Today - Barron's

Amazon (NASDAQ:AMZN) reported first-quarter earnings last week, smashing Wall Street's expectations on both the top and bottom lines. Revenue jumped 44% to $108.5 billion, but the real showstopper was profitability: Amazon's net income more than tripled to $8.1 billion.

The company's blowout performance may have many investors wishing they owned shares (or more shares) of Amazon. After all, the stock is up 50% in the last year alone, and 400% in the last five years. But I don't think you've missed your chance. Here's why.

In the most recent quarter, revenue from Amazon's online stores and third-party sellers surged 44% and 64%, respectively. Its operating margin also expanded in the North America and international segments, driving a big uptick in profitability. These results highlight Amazon's many competitive advantages.

Image source: Getty Images

First, it's the largest e-commerce marketplace in North America, and the second-largest worldwide. That scale means Amazon makes more money than its rivals, allowing the company to aggressively reinvest in its business. For instance, Amazon can afford to offer Prime Video and one- or two-day shipping to its 200 million Prime members. Put simply, it's hard to compete with a company that is bigger, richer, and better known.

Second, a network effect creates a virtuous cycle that brings consumers and merchants to the platform. In other words, as more consumers shop on Amazon, more merchants will join the marketplace, and vice versa.

Finally, Amazon's extensive fulfillment and logistics network streamlines the shipping process, creating synergies that make the company more efficient as unit volume rises. Consider this example: If Amazon delivers a package to your house, it costs next to nothing for Amazon to deliver a package to your neighbor at the same time. In other words, Amazon benefits as delivery routes become more dense.

Synergies created by Amazon's marketplace (and content platforms like Fire TV) have also helped the company enter the digital ad market. During the most recent earnings call, Amazon CFO Brian Olsavsky said: "Advertising revenue within the North America and international segments also accelerated during the quarter."

And Amazon's digital ad business was already growing quickly. Its U.S. market share jumped from 6.8%in 2018 to 10.3% in 2020, according to eMarketer.

Amazon's growing dominance in this space has broad implications for its business as a whole. For instance, eMarketer estimates that e-commerce channel ad spending will reach $22.5 billion in the U.S. by 2021, and that Amazon will capture $18.2 billion, or 81% of that total. By comparison, second-place Walmart is expected to take just $1.6 billion, or 7.1%. This suggests that Amazon is by far the most valuable e-commerce ad platform.

Over time, that should bring more brands to Amazon, meaning consumers will see a more diverse range of sponsored search results and product recommendations, which could drive sales on Amazon's marketplace. In other words, Amazon's ad business not only boosts its top line directly, but it could also boost retail revenue and further solidify its lead in e-commerce.

Amazon's cloud computing business, Amazon Web Services (AWS), is also a product of synergies created by its marketplace. Roughly two decades ago, Amazon started offering compute, storage, and database services to support third-party merchantsas they transitioned to the internet.

At the time, these efforts were necessary to support the growth of its marketplace, but they also allowed Amazon to hone its infrastructure management skills. In 2006 the company officially launched AWS, bringing cloud services to businesses on a global scale. It's worth noting that AWS beat Microsoft Azureto the market by two years, and that first-mover status has been a considerable advantage.

Image source: Getty Images

Today AWS still controls a dominant portion of the market, and still offers a broader range of servicesthan any rival. Not surprisingly, AWS has been recognized as the best-in-class solution by research firms like Gartnerand the International Data Corporation(IDC).

Market Share

Q4 2019

Q4 2020

Amazon Web Services

32%

32%

Microsoft Azure

18%

20%

Google Cloud Platform

6%

7%

Data source:Canalys.

Cloud computing is much more profitable than retail. For example, AWS's operating margin was nearly 31% in the most recent quarter, much higher than the mid-single-digit operating margin of Amazon's other segments. In other words, AWS is a cash-generating machine, and that has helped Amazon fund the expansion of its commerce empire.

Going forward, Gartner expects the cloud computing market to expand at 18.6% per year through 2022. As the clear leader, AWS is well positioned to capture value.

Over the last 27 years, Amazon has grown from an online bookstore into a $1.7 trillion titan. Is its stock going to double in the next three years? I doubt it. But I probably would have said the same thing three years ago, and I would have been wrong.

The point is that Amazon still has growth opportunities. Industries like e-commerce, cloud computing, and digital advertising are still getting bigger. Moreover, Amazon has an ironclad competitive position that few companies can rival. That's why the stock is still a buy.

This article represents the opinion of the writer, who may disagree with the official recommendation position of a Motley Fool premium advisory service. Were motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

Go here to see the original:

This Big Tech Stock Crushed Earnings -- Why It's Not Too Late to Buy - Motley Fool

Senator Josh Hawley of Missouri accuses the USs biggest tech companies of committing the gravest threat to American liberty since the monopolies of the Gilded Age in his upcoming book. He rails that tech giants Amazon, Google and Facebook have become a techno-oligarchy with overwhelming economic and political power.

Hawley has also invested potentially tens of thousands of dollars in the very companies he denounces, according to public financial disclosure records examined by the Guardian.

Hawleys new book, The Tyranny of Big Tech, is published next week by Regnery Publishing. Simon & Schuster, its original publisher, dropped the book following the Missouri senators involvement in the 6 January electoral college vote certifying Joe Bidens election.

In the book, Hawley compares todays tech titans to the robber baron industrialists who dominated the US economy in the 19th century, whose monopoly powers were attacked by Theodore Roosevelt, the subject of a previous Hawley book.

Theodore Roosevelt had balked at the monopolies of his day that had consolidated power and crowded out the common man, but the the robber barons power over everyday Americans was nothing compared to was nothing compared to that wielded by big tech, Hawley writes.

But according to Senate financial disclosures, the senators disdain for big tech does not extend to his investment portfolio.

Hawley and his wife each have somewhere between $1,000 and $15,000 invested in Vanguard Growth Index Fund ETF, which has holdings in Google parent Alphabet, Amazon, Apple and Facebook. The disclosures do not offer exact amounts of holdings, only a range.

The Hawleys held considerably more cash in Vanguard funds in 2018, according to his disclosures. The couple held between $50,001 and $100,000 in Vanguard Dividend Appreciation ETF, between $50,001 and $100,000 in Vanguard Growth ETF and another $50,001 to $100,000 in Vanguard Value ETF.

Hawley is a long-time critic of tech power. Before taking his seat in the Senate in 2019 he was Missouris attorney general and opened investigations into Facebook, Google and Uber.

Its not unusual for senators to have mutual funds while serving in Congress or for lawmakers to have investments in individual stocks. But its a counterintuitive decision for Hawley. The Missouri senator, educated at Stanford University and Yale Law School, has made fighting big tech one of his signature issues. Hes also been mentioned as a potential 2024 presidential candidate. Hawley is one of a number of young Republican senators who have prioritized rebranding the Republican party as a nemesis of big tech, China and aspiring populist champion of the American working class.

Hawley drew criticism for leading the charge of congressional lawmakers in early January seeking to challenge Bidens victory over Donald Trump in the 2020 presidential elections. That push incited a violent riot at the Capitol where Trump supporters broke into Congress.

In a statement to the Guardian, a spokesperson for Hawley said: The Hawleys dont own any stock. They have their savings in mutual funds. Some politicians enrich their families by landing them board seats on Ukrainian oil and gas companies and multi-million dollar salaries but the liberal media insists that isnt newsworthy. But if youre a Republican, just investing in mutual funds just like millions of hardworking Americans do is considered controversial.

The disclosures also show that Hawley is invested in another of his persistent targets: China.

Hawley has between $1,000 and $15,000 invested in iShares MSCI Emerging Markets ETF, which holds stakes in some of Chinas biggest companies, including Alibaba, Ping An Insurance group and Tencent.

According to the New York Times, Alibabas cloud computing business showed its clients how they could use its software to detect the faces of Uyghurs and other ethnic minorities currently being persecuted.

Last year Hawley launched an attack on China, claiming imperialist China seeks to remake the world in its own image, and to bend the global economy to its own will.

For decades now, China has bent, and abused, and broken the rules of the international economic system to its own benefit, he said in a Senate speech.

They have stolen our intellectual property and forced our companies to transfer sensitive trade secrets and technology. They have manipulated their currency and cheated time and again on their trade commitments. They have been complicit in the trafficking of persons and relied upon the forced labor of religious minorities, he said.

Continue reading here:

Josh Hawley rails at big tech firms but records show he has invested in them - The Guardian

This article first appeared in the Morning Brief. Get the Morning Brief sent directly to your inbox every Monday to Friday by 6:30 a.m. ET. Subscribe

Thursday, April 29, 2021

This week represents the apex of first quarter earnings season with Microsoft (MSFT), Alphabet (GOOGL), Apple (AAPL), and Facebook (FB) all having reported results in the last two days.

Each of these businesses helps us think both narrow and broad about the state of the economy, the tech industry, and consumer behavior, among other things.

But a top of mind concern these companies have also helped shape is what the return to office life is both looking like right now and might look like in the future. And some commentary that stood out to us came from Google CFO Ruth Porat on the company's Tuesday evening earnings call.

Asked about capital expenditures and anticipated investment intensity around personnel and facilities, Porat said, in part, "We've been very clear we do value bringing people together in the office, and we're looking at a hybrid work-from-home, work-from-office model."

But fewer people in offices less often doesn't mean there will be either fewer offices or even smaller ones.

"We are looking at less density per employee," Porat added. "So even with a hybrid work environment, we will continue to need [office] space, and so we're continuing to build out our campuses and office facilities."

Given that consensus expectations for the future of work have become centered around some kind of hybrid model, it's not a total surprise to see Google thinking along these lines. A report from the World Economic Forum published earlier this week said 65% of those working remotely due to the pandemic would like to remain remote. These preferences are so firm that some 58% of workers working remotely said they'd find another job if required to return to an office with pre-COVID expectations.

Story continues

Microsoft, which like Google builds and sells software that helps enable a lot of these hybrid arrangements, noted that, "In market where employees have returned to the workplace, including Australia, China, New Zealand, South Korea, and Taiwan, we have seen [Teams] usage continue to grow."

Microsoft CEO Satya Nadella also referred to the current environment as a "new era" of hybrid work.

But we note Google's investment in its campus because of the influence it has had on multiple generations of companies and how they view the in-office experience.

Earlier this week, tech commentator Ben Thompson explored the transforming relationship between employees and employers in the tech industry. A relationship that today works off the template set by Google's Mountain View campus, which Thompson notes, "became the standard for Silicon Valley companies, from Facebook on down."

"Employers didnt simply offer free lunches, but also free dinners, and everything in between, from transportation to snacks to laundry services," Thompson adds. "Employees, meanwhile, were expected to bring their whole selves to work, by which founders meant a willingness to work long hours and accept lower salaries in exchange for stock options and the chance to 'do your lifes work.'"

Google's view, then, that a physical office will remain a part of but only a part of your professional identity represents a massive shift. Hollywood made movies that did little but showcase Google's modern corporate campus lifestyle. Companies like WeWork were founded to explicitly offer smaller companies a flexible way to approximate the perks of a Google-like office: free food, free drinks, low couches, common spaces.

But Google and its leading tech peers now seem to believe employee expectations revolve not around the perks of going to work but the perks of staying home. And if that prior cultural moment asked workers to bring, as Thompson notes, their "whole selves" to work, one wonders if we're increasingly asked to keep most of ourselves at home. And what might we all think of work then.

By Myles Udland, reporter and anchor for Yahoo Finance Live. Follow him at @MylesUdland

How stocks performed during Biden's first 100 days

Heres how Warren Buffetts top investments fared during the pandemic

Are investors hoarding cash?

Read the latest financial and business news from Yahoo Finance

Read this article:

The future of work according to big tech - Yahoo Tech

The public spat between Facebook and Australia earlier this year presages a new effort to regulate big tech companies but could that threaten the whole future of the web?

By Chris Stokel-Walker

Marcus Marritt

STAND-OFFS between nations are nothing new. But a very public spat between a government and a commercial company, in which each accused the other of taking citizens hostage and threatened sanctions, certainly seemed novel when it broke out this February.

This was the case of Facebook versus Australia, in which the tech giant briefly cut off access to some parts of the web through its platform for its 17 million Australian users, in response to a proposed law that would force it to pay for linking to news stories. Opinions are still divided on the rights and wrongs but this skirmish looks like just a foretaste of bigger battles to come.

Across the world, governments are concluding that tech giants such as Facebook and Google exercise too much power and are undermining the public good by allowing hate speech and misinformation to proliferate. Not only in Australia, but also in the UK, the US, the EU and elsewhere, plans are afoot to bring them to heel.

That determination brings with it risks, though. Clamp down too hard and you can damage freedom of expression, and send out the wrong signals to authoritarian regimes worldwide. Bring in different rules in different places and you risk Balkanising the internet, destroying the universality on which it is built. Not even the tech companies deny that something should be done. The question is, what?

Big tech has certainly become big. Facebook, Google and other tech companies incomes have ballooned as they have benefited from the changing ways we communicate and access information and services. If Facebooks $86 billion revenue in 2020

Read more here:

Facebook vs Australia and the new battle to cut big tech down to size - New Scientist

FOX Business' Stuart Varney weighs the pros and cons of Big Tech and its impact on peoples lives.

FOX Business'Stuart Varney, during his latest "My Take" on"Varney & Co.,"reflected on Big Tech and the impact it has on peoples daily lives.

STUART VARNEY: Big Tech gets a lot of criticism: Too powerful, they squash competition, too much money, they censure free speech.

VARNEY: WELCOME TO 'TAX THE RICH WEEK'

They are indeed dominant and the attacks come from both sides of the aisle.

But hold on a minute -- its not all bad! In fact, Apple, Amazon, Google, Microsoft and Facebook benefit us all.

GET FOX BUSINESS ON THE GO BY CLICKING HERE

Im generalizing, but, Amazon runs online shopping. Apple runs smartphones. Facebook runs a network that links one-third of the worlds population.Googleruns YouTube, the worlds go-to channel.[And] Microsoft, along with Amazon, runs the cloud, which is the worlds back office!

They are very good at providing these products and services. We all benefit. Its good to be plugged into the best!

CLICK HERE TO READ MORE ON FOX BUSINESS

And then theres the money.

One hundred million Americans have a 401(k) or IRA. And most of the money in those pension plans is in stocks. A lot of it in tech stocks. That means your pension gets a huge shot in the arm from Big Techs stock price surge!

This program has been on the air for 10 years and right from the start we tracked Big Techs rise. It has been a great ride.

The stunning financial reports this week show its not over yet. Hope you are enjoying the ride.

Original post:

Varney: Big Techs stock price surge a 'huge shot in the arm' for pensions - Fox Business

Rohit Kulkarni, MKM Partners managing director, discusses some of this weeks biggest tech earnings, including Amazon, Facebook, Pinterest and Twitter.

JULIE HYMAN: Let's talk about some of the companies that are set to report after the close of trading. Facebook is top of mind. Rohit Kulkarni is joining us now, MKM Partners managing director. Rohit, good to see you. You know, do we get any pull through from the likes of Alphabet and some of the ad spending trends that we saw reflected in those numbers? Does that bode well for Facebook?

ROHIT KULKARNI: Yeah, absolutely. I think-- again, thanks for having me. I think what Google told us yesterday, both from a macro as well as a micro perspective, that online spending of consumers is elevated. It's coming back.

Second, from a macro standpoint, I think across all verticals, the level of beat that Google gave us yesterday was-- couldn't have been possible unless all the verticals except travel have been kicking into high gear for Google. So that's a very clear positive macro read for Facebook. Facebook has similar look and feel and composition of revenues. They do a little bit more digital native brands, which we think are also doing well.

And, of course, from travel, retail, tech, CPG, various different sectors that have different cohorts of reopening plays baked into the next six months, I think that bodes well for Facebook. So we feel positive beat and raise numbers coming in for Facebook as well.

- Rohit, on Pinterest, really a mixed quarter out of that company. The stock is under pressure as a result. How concerned are you about life after the pandemic for Pinterest? Which has benefited during the pandemic, because we have all been home on the platform. And then if you do have that concern, how important is it that Pinterest does, in fact, explore a sale, that this is a company that ultimately becomes a subsidiary of Microsoft?

ROHIT KULKARNI: Huh. What I would say is for Pinterest, we are buyers on the dip that we are seeing today. The reason why I say that is Pinterest, as a company, we have-- we think that they can navigate this user penalty box they have put themselves into. I think this company probably under invested in marketing and top of [INAUDIBLE] education of consumers as to how the platform has evolved over the last 18 months.

Story continues

They have added very many consumer-oriented features. I feel Pinterest is going to do just that. And users for all social media platforms, as you know, are the best leading indicator for what future performance would look like. Pinterest probably focused a lot more on advertisers over the last 12 months. They got that. Their revenues are accelerating. Their monetization is kicking into high gears.

Now they need to go back to the supply side, which is users and engagement, and which-- once they do that, I think Pinterest is going to be a more stable story. It is, again, a reasonably recent IPO, if you were to look at the history of Pinterest. And they are balancing supply and demand. Right now, demand is good. Supply they just need to work on.

So I feel-- I feel good about the longer-term prospects. This is a story that we-- we like heading into back half of '21 as well.

- You know, Rohit, another name that you cover that I kind of associate in this bucket of anything that isn't Google and Facebook. And that, of course, would be Twitter. Now, Twitter's story has changed a little bit. An activist in there. They're ramping up their product roadmap.

But when you think about, you know, a name like a Twitter, a name like a Pinterest, are they still kind of in this rising tides, lifting all the boats? I mean, you see the kind of quarter that you were just saying you're likely to see from Facebook tonight. Does that continue to augur well down, you know, the ad stack, if you will?

We saw from Snap last week indicates to some extent, yes. But how do you think about that from an ecosystem standpoint?

ROHIT KULKARNI: Yeah, you said it right-- right on, as in it's a rising tide that lifts all boats, as in-- if you remember what happened in March, April, May of last year, all these companies got a pullback from ad spend, and they are facing easier comps. Pinterest is going to grow more than 100% year-on-year on easier comps in Q2. That's the highest that-- growth rate that this company has ever had in the last five years.

Same with Google. Probably we will hear the same with Facebook. I think what would matter beyond Q1 earnings is whether-- how sticky this growth is going to look like in Q3 and Q4, once the comparables start getting tougher and tougher. I feel Twitter, the bar is high for them, given what has happened to the stock, given what they said in a post-Trump era about users, given what they're doing with direct response.

So the bar is high for Twitter. We like-- it is a good reopening play with Olympics, with events, with conferences, with live sports, as well as various different brand advertisers coming back to the platform. So Twitter should have a double tailwind, if you will. The platform is improving. The tailwind is getting stronger. And brand advertisers are coming back.

So there are more tailwinds in the favor-- in Twitter's favor. So if they execute, I think that's the biggest question mark, as an execution on the basis of technology is something that investors aren't fully convinced yet, like what Snap has been able to do or to some extent Pinterest has been able to do. Twitter is still their show-me story. I feel we'll know more about that tomorrow.

JULIE HYMAN: And finally, I want to end on another come to you cover that isn't really a show-me story. They've shown us quarter after quarter. I'm talking about Amazon, which at this point obviously is just a juggernaut on the e-commerce side and on the cloud side. Is there any suspense with Amazon? Like, what is your big outstanding question for this company?

ROHIT KULKARNI: I think the biggest outstanding question as in Amazon is a company from a stock's perspective. You buy on weakness. You buy on strength. It is a company that is, as you said, it's a juggernaut.

I think the suspense here is, what happens in 2Q? As in there are-- when we talk to investors, remember what Amazon did last year. They reported the highest growth rate for e-commerce and Amazon retail ever in 2Q. They had the best profitability in 2Q, despite spending $5 billion extra. So what happens in Q2 of 2020? We'll know more tomorrow. We have seen a wide dispersion in investor expectations, as in some people expect more than $110 billion in revenue. Some people are expecting $105 billion in revenue for Q2.

So we will see that. I think that will probably lead to some volatility in Amazon's shares. But regardless of what happens, I feel this is a company that's executing and has probably the best portfolio of products, be it cloud, advertising, and retail. And no matter which part of the reopening play you are in, either of all of them or at least two of them continue to succeed. So I think Amazon-- Amazon is a company that we are behind.

But I think the suspense is around 2Q outlook. And if I have to zoom into it a little bit more, what is the next big bucket of spend that Amazon will find? As in last year, they spent about $12 billion extra on COVID. Of course, Street is not modeling all of that comes back this-- this year, but some of it will come back. And Amazon always finds ways to spend money.

So what will that be, and how are they thinking about ROI of that spend? So those are the suspense items, if you will. But I think, as I said, all three segments benefit from reopening. And I think Amazon is something that has traded flat. We like it.

JULIE HYMAN: Amazon always finds ways to spend money, so true. Rohit Kulkarni, thank you so much, MKM Partners managing director. We look forward to those numbers and to your notes on them afterwards.

See the article here:

Breaking down this weeks big tech earnings - Yahoo Tech

After being beaten down on the tech sectors lofty valuation concerns last month, the tech-heavy Nasdaq Composite Index scaled new record highs ahead of the optimism over the big tech earnings wave with more room for upside. The index set its first record since February, representing the 13th record close of 2021.

This has confirmed the end of an 11% correction in the index that began after its previous high on Feb 12, with the index closing at a low on Mar 8.

Tesla Motors TSLA posted the biggest profit in its history shrugging of the global chip crisis when it released Q1 earnings after the closing bell on Monday. The electric carmaker beat estimates on both earnings and revenues.

Tech giants like Microsoft MSFT and Alphabet GOOGL are scheduled to release their earnings today after the bell while Facebook FB and Apple AAPL will report on Apr 28. Amazon AMZN is slated to report on Apr 29. Total Q1 earnings from the group of these five companies are expected to be up 43.5% on revenue growth of 31.4%. This reflects a solid improvement from the Q4 earnings growth of 41.2% and revenue growth of 29% (read: Big Tech Q1 Earnings Look Strong: ETFs to Play).

Further, many other semiconductor companies like Texas Instruments Incorporated TXN and Qualcomm Incorporated QCOM are scheduled to report this week. Texas Instruments has a Zacks Rank #2 (Buy) and an Earnings ESP of +4.25% while Qualcomm has a Zacks Rank #3 (Hold) and an Earnings ESP of 0.00%. Per our proven model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. You can uncover the best stocks to buy or sell before theyre reported with our Earnings ESP Filter.

Investors seeking to ride the Nasdaq could consider the following ETFs. These funds might see massive trading volumes in the days ahead as Q1 earnings unfold.

Fidelity Nasdaq Composite Index Tracking Stock ONEQ

This ETF tracks the Nasdaq Composite Index, holding a broad basket of 1,016 stocks. It has AUM of $4 billion and an average daily volume of around 564,000 shares. The expense ratio comes in at 0.21%. The product has gained 9.4% in the year-to-date frame and carries a Zacks ETF Rank #1 (Strong Buy) with a Medium risk outlook.

Invesco QQQ QQQ

This ETF provides exposure to 102 largest domestic and international non-financial companies listed on the Nasdaq by tracking the Nasdaq 100 Index. QQQ is one of the largest and most popular ETFs in the large-cap space, with AUM of $161.4 billion and an average daily volume of 54.7 million shares. It charges investors 20 bps in annual fees and has risen 9% so far this year. The fund sports a Zacks ETF Rank #1 (Strong Buy) with a Medium risk outlook (read: ETFs to Ride the Nasdaq Composite's Much-Awaited Comeback).

First Trust NASDAQ-100 Equal Weighted Index Fund QQEW

Holding 102 stocks, this fund provides equal exposure to stocks on the Nasdaq-100 Index. It has amassed $1.3 billion in its asset base while it trades in lower volumes of nearly 97,000 shares a day on average. It charges 59 bps in annual fees and has gained 8.1% in the year-to-date period. QQEW carries a Zacks ETF Rank #1 with a Medium risk outlook

Invesco NASDAQ 100 ETF QQQM

This fund is identical to QQQ tracking the NASDAQ-100 Index but comes with lower annual fees of 15 bps. It holds 104 securities in its basket with higher concentration on the big tech giants. QQQM has accumulated $822.3 million in its asset base since its debut last October and trades in an average daily volume of 128,000 shares. The ETF is up 9% so far this year (read: Best ETFs for Long-Term Investors).

ProShares Ultra QQQ QLD

Investors seeking to make big gains in a short span can bet on QLD. It provides twice the return of the NASDAQ-100 Indexs daily performance and exchanges around 2.1 million shares in hand on average. The fund has an AUM of $4.4 billion and charges 95 bps in fees and expenses. It has surged 16.4% so far this year.

ProShares UltraPro QQQ TQQQ

For a more bullish approach, TQQQ could be an excellent choice. It also tracks the NASDAQ-100 Index but offers thrice the returns of the daily performance, with the same expense ratio of QLD. The fund has amassed $11.4 billion in AUM and trades in a heavy volume of 41 million shares on average. TQQ had returned nearly 22.3% in the year-to-date period.

Story continues

Zacks free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Microsoft Corporation (MSFT) : Free Stock Analysis Report

Amazon.com, Inc. (AMZN) : Free Stock Analysis Report

Apple Inc. (AAPL) : Free Stock Analysis Report

QUALCOMM Incorporated (QCOM) : Free Stock Analysis Report

Texas Instruments Incorporated (TXN) : Free Stock Analysis Report

Tesla, Inc. (TSLA) : Free Stock Analysis Report

INVESCO-QQQ TS (QQQ): ETF Research Reports

Facebook, Inc. (FB) : Free Stock Analysis Report

Alphabet Inc. (GOOGL) : Free Stock Analysis Report

FIRST N-100 EQW (QQEW): ETF Research Reports

PRO-ULTR QQQ (QLD): ETF Research Reports

FIDLTY NDQ CMP (ONEQ): ETF Research Reports

PRO-ULT QQQ (TQQQ): ETF Research Reports

To read this article on Zacks.com click here.

Zacks Investment Research

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Continue reading here:

Big Tech Earnings Wave to Push Nasdaq ETFs Higher - Yahoo Finance