Amazon (AMZN)
E-commerce company Amazon is scheduled to report earnings after the bell on Tuesday, and the quarter will be focused on the tech company’s progress in the field of AI.
Wall Street analysts expect sales to be $142.6 billion (£113.8 billion), compared with $127.4 billion in the same period last year. Adjusted earnings per share are expected to be $0.82, more than double the $0.31 reported in the first quarter of 2023.
Meanwhile, online stores, Amazon Web Services, and advertising are all expected to grow.
The company said it sees its AI efforts as potentially generating tens of billions of dollars for its cloud business.
“Generative AI may be the biggest technology transformation since the cloud (though the cloud itself is still in its infancy) and perhaps since the Internet,” CEO Andy Jassy said in his annual letter to shareholders earlier this month. No,” he said.
read more: Amazon earnings preview: AI efforts expected to gain attention
Like its rivals Microsoft (MSFT) and Alphabet (GOOG), Amazon has become a powerhouse in the cloud computing business, gaining an edge in the nascent AI market. AI tools require large amounts of data and processing power to train and run large language models and their applications, and rely on cloud providers to supply critical infrastructure.
Like other deals between tech giants and AI-focused companies, Amazon and Anthropic’s partnership includes the promise of access to the company’s cloud computing services as they seek to dominate the coming AI era. The superiority of trillion-dollar companies has become clear.
Tesla shares ended Monday up more than 15% ahead of reports that Chief Executive Officer Elon Musk has begun to shake up the top ranks and cut jobs. Rebecca Tinucci, senior director of the electric car maker’s supercharger business, and Daniel Ho, head of new products, are leaving the electric vehicle maker, The Information reported after reviewing internal documents.
Meanwhile, all employees reporting to Ho and Tinucci will be laid off, the report added.
The news comes following reports that the company has secured key approvals in China to bring its self-driving software to market.
Reuters reported on Monday, citing two people familiar with the matter, that Tesla has reached an agreement with Baidu (BIDU) to use the Chinese tech company’s mapping license to collect data on public roads in China.
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The collection and storage of data in China, and how much of that data is allowed back into the United States, has long been a major concern for U.S. companies interacting with mainland China and vice versa. There is.
Mr. Musk is seeking approval to transfer domestically collected data overseas to train algorithms for self-driving cars, people familiar with the matter told Reuters.
Electronics company Samsung reported net profit for the quarter ending March at 6.62 trillion won (approximately $4.8 billion), compared to the average analyst estimate of 5.63 trillion won, as its chip division returned to profit. and exceeded profit forecasts. Driven by the AI boom, the company’s profits more than quadrupled from the same period last year.
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The company’s fortunes have been hit by macroeconomic uncertainty in recent years, with heavy losses expected in the semiconductor division in 2023. But with the rise of companies looking to cash in on the wave of AI innovation led by OpenAI and others, demand for chips is at an all-time high.
Samsung said it expects semiconductor demand to remain strong this quarter and the second half of this year.
Mercedes-Benz (MBG.DE)
Luxury car maker Mercedes-Benz said it would keep its full-year outlook unchanged and continue share buybacks after first-quarter profits fell 34%.
Profit before interest and taxes fell to $3.9 billion, hurt by weak demand for electric vehicles.
The company expects sales to increase in the coming quarters as the Chinese market improves.
Whitbread (WTB.L)
Whitbread shares rose more than 1% in early London trading on Tuesday after the owner of Premier Inn announced the restaurant chain would close and cut 1,500 jobs. Whitbread plans to sell 126 of its unprofitable branded restaurants, but decisions on job cuts are still being made and a consultation process has begun.
The company said the closures are being made to create more hotel rooms. The latest results show pre-tax profits rose 21% to £452m for the year ended February 29.
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