Good and Bad News Monday

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According to Market Insider, Estee Lauder announced in conjunction with its quarterly results that it would be laying off between 3% and 5% of its staff in order to reduce its expenses.

Questions:

  1. The bad news was the layoffs, but what is the good news?
  2. For the current year, what did the company predict its EPS would be?
  3. How does this EPS compare to the planned EPS?

Source:

Ramer, L. (2024). Estee Lauder Layoffs 2024: What to Know About the Latest EL Job Cut. Market Insider, Feb. 5 (Retrievable online at https://markets.businessinsider.com/news/stocks/estee-lauder-layoffs-2024-what-to-know-about-the-latest-el-job-cut-1033030846)

Estate of George Carlin Sues Over AI Comedy Special

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According to the Washington Post, George Carlin’s estate is suing the creators of an online comedy special that claimed to imitate the late comedian’s voice and sense of humor using artificial intelligence.

Questions:

  1. What was the name of the special?
  2. What are the legal issues and/or law violations?
  3. The lawsuit is one of a growing number of legal battles against AI companies. What are some of the others?

Source:

Chery, S. (2024) George Carlin’s estate sues over AI comedy special. The Washington Post, January 26 (Retrievable online at https://www.msn.com/en-us/news/us/george-carlin-s-estate-sues-over-ai-comedy-special)

Dietary Supplement or Over the Counter Opiod?

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According to the New York Times, tianeptine, found at convenience stores, at smoke shops and online, can mimic an opioid. It is among a growing class of dietary supplements that are difficult to control.

Questions:

  1. In which states has tianeptine been banned or restricted?
  2. What are some of the risks of these growing unregulated classes of products?
  3. What is the FDA doing about these substances? 

Source:

Hoffman, J. (2024). ‘Gas-Station Heroin’ Sold as Dietary Supplement Alarms Health Officials. The New York Times, Jan. 10 (Retrievable online at https://www.nytimes.com/2024/01/10/health/gas-station-heroin-tianeptine-addiction.html)

Changing relations with China require reconsideration of AI lab

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According to the New York Times, when Microsoft opened an advanced AI research lab in Beijing in 1998, it was a time of optimism about technology and China.

Questions:

  1. What did Bill Gates say about this lab?
  2. To which location is Microsoft moving some researchers from China?
  3. What are some of the risk concerns with the lab? 

Source:

Weise, K., C. Metz, and D. McCabe (2024). Microsoft Debates What to Do With A.I. Lab in China. The New York Times, Jan 10 (Retrievable online at https://www.nytimes.com/2024/01/10/technology/microsoft-china-ai-lab.html).

Hacker surprise sets off brief market frenzy!

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According to the Washington Post, a false hacker post at the SEC’s official account on the social media platform X (previously Twitter), set off a brief frenzy among crypto traders before the agency regained control.

Questions:

  1. Has the SEC approved the listing and trading of spot bitcoin exchange-traded products?
  2. What would have been the benefit of the scam post by anyone with knowledge of the scam post?
  3. The hijack was one of an account with a silver check mark. Why is this notable and what was the question raised in the article?
  4. What has happened with check labeled accounts in recent weeks?
  5. What is SIM-swapping and why is it a security risk?

Source:

Menn, J. (2024). Hackers seize control of SEC’s X account to promote crypto. The Washington Post, Jan. 10 (Retrievable online at https://www.washingtonpost.com/technology/2024/01/09/sec-hack-x-crypto)

This Year’s Large-Scale Layoffs and Their Companies

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According to the Washington Post, some of the deepest cuts have occurred in the tech and media sectors such as Microsoft, Amazon, Salesforce, HP, and the parent companies of Google and Facebook.

Questions:

  1. Where does unemployment stand as of November 2023?
  2. According to the article and the table shown, which company laid off the most workers in terms of percentage of workers since May 2022 and what percentage was that?
  3. In total number of laid off individuals, which company laid off the most workers and how many was that?
  4. What types of risks did these companies face?
  5. Which company surprised you most and why?

Source:

Mark, J., H. Shaban, A. Gregg, and J. Bogage. (2023). These are some of the notable companies laying off workers. The Washington Post, Dec. 18 (Retrievable online at https://www.washingtonpost.com/business/2023/01/06/layoff-numbers)

E.L.F. Makeup – Profile Rising Due to Social Influencers

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According to the Washington Post, companies such as E.L.F., Essence and NYX have flourished as beauty influencers — particularly on TikTok and YouTube — raised their profiles, and as entrenched inflation made many consumers reassess their spending.

Questions:

  1. By how much in the last quarter, did E.L.F. Beauty see its net sales surge?
  2. By how much in 2023, did E.L.F. Beauty see its stock rise?
  3. E.L.F makes a product similar to Dior’s $40 Addict Lip Glow Oil for what price?
  4. E.L.F. is an acronym for what?
  5. When was the company founded?
  6. When the article says: Dupes Dominate, what does that mean?

Source:

Peiser, J. (2023). Viral ‘dupes’ make E.L.F. the makeup brand of the moment. The Washington Post, December 17 (Retrievable online at https://www.washingtonpost.com/business/2023/12/17/elf-makeup-dupes)

No more U.S. Steel

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According to the Washington Post, Japan’s largest steelmaker, Nippon Steel, will purchase U.S. Steel in a, a deal valued at $14.1 billion.

Questions:

  1. Which domestic U.S. competitors tried to buy the company?
  2. Who founded U.S. Steel?
  3. How will the deal be structured?
  4. What type of opposition has there been against the acquisition?

Source:

Tan, E. (2023). U.S. Steel will be acquired by Japan’s Nippon in a $14.1 billion deal. The Washington Post, December 18 (Retrievable online at https://www.washingtonpost.com/business/2023/12/18/us-steel-nippon-acquistion)

No Deal

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According to Reuters, U.S. health insurer, Cigna (CI.N) has ended its attempt to negotiate an acquisition of rival Humana (HUM.N) after the pair failed to agree on price.

Questions:

  1. How large would the company be based on combined market value if the merger had succeeded?

2. Cigna is still exploring the sale of its Medicare Advantage business. What does this segment focus on?

3. Cigna is planning to do a total of how much total repurchases of stock? Exactly what does this mean?

Source: Sen, A. (2023). Cigna abandons pursuit of Humana, plans $10 billion share buyback. Reuters, Dec. 10 (Retrievable online at https://www.reuters.com/markets/deals/us-health-insurer-cigna-scraps-deal-buy-humana-wsj-2023-12-10)

Big Buyout?

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According to CNBC, Arkhouse Management and Brigade Capital Management have offered to buy Macy’s Inc. for $5.8 billion, according to people familiar with the matter.

Questions:

  1. What is the difference between the offer per share and the most recent close of Macy’s stock?
  2. Based on the most recent close of Macy’s stock on 12/8/23, has the stock gone up or gone down since the first of the year and by what percentage?
  3. What factors, mentioned in the article, are either benefiting or hurting Macy’s performance?

Source:

Picciotto, R. (2023). Macy’s receives $5.8 billion buyout offer, sources say. CNBC.com, 12/10/23 (Retrievable online at https://www.msn.com/en-us/money/companies/macy-s-receives-5-8-billion-buyout-offer-sources-say/ar-AA1liroj?)