Category: Top News

Expert Foresees Nvidia Stock Skyrocketing, Cites Historical Parallels with Cisco’s Boom

Post author By lovely
Post date March 14, 2024

In a recent assessment that captivates the investment world, Jeremy James Siegel, a prominent finance professor at the Wharton School, has projected an extraordinarily bullish outlook for Nvidia (NASDAQ:NVDA), suggesting that the company’s shares might double or triple in value. Drawing a historical parallel, Siegel likens Nvidia’s potential trajectory to that of Cisco (NASDAQ:CSCO) during the dot-com bubble of the late 1990s and early 2000s, a period characterized by rampant speculation and meteoric rises in the stock prices of internet and tech companies.

Nvidia, renowned for its cutting-edge graphics processing units (GPUs) that have become indispensable in the realm of artificial intelligence (AI), has been a pivotal player in the current stock market rally propelled by the AI boom. The demand for its high-performance chips, crucial for AI services such as ChatGPT, has surged, leading to a significant uptick in sales. With a dominant market share estimated at 80%, Nvidia’s GPUs, acclaimed for their efficiency in AI-related tasks, stand head and shoulders above the more generalized central processing units (CPUs) offered by competitors like Intel (NASDAQ:INTC). This competitive edge has been reflected in Nvidia’s stock performance, with an impressive 270% increase over the past year and an 82% rise in the current year alone, significantly outpacing broader market trends.

Nvidia’s ascent is reminiscent of the dot-com bubble era when Cisco emerged as one of the most valuable companies globally by market capitalization, epitomizing the investment exuberance in technology and internet stocks of that time. Despite experiencing a 10% intraday drop recently, Siegel’s analysis suggests that Nvidia’s upward momentum remains robust, potentially mirroring Cisco’s historical valuation peak. He posits that Nvidia’s stock could soar to $2700, catapulting the company’s market cap to an astonishing $6.8 trillion, although he clarifies that this is a speculative scenario rather than a concrete prediction.

The significance of Nvidia’s remarkable performance cannot be overstated, particularly in light of the surging demand for its AI-capable GPUs. This bullish sentiment is echoed by major financial institutions such as Bank of America (BofA), which recently reaffirmed a positive outlook on Nvidia, setting a price target of $1,100 for the stock. BofA’s analysis suggests that, despite its soaring valuation, Nvidia remains a compelling investment proposition, underpinned by its innovative technology and leading market position.

However, Nvidia’s rapid ascent and the hype surrounding AI technologies have also spotlighted the competitive landscape, with Advanced Micro Devices Inc (NASDAQ:AMD) emerging as a notable contender. AMD has closely tracked Nvidia’s rapid growth, spurred by the general excitement around AI capabilities and advancements.

In conclusion, Nvidia’s stock trajectory, as suggested by Professor Siegel, underscores the transformative impact of AI technologies and the company’s pivotal role in this burgeoning sector. While comparisons to the dot-com bubble era evoke a sense of speculative fervor, they also highlight the extraordinary potential for growth and innovation within the tech industry. As Nvidia continues to push the boundaries of AI and computing, investors and market watchers alike remain captivated by the company’s future prospects and the broader implications for the tech sector.

Investors Eye Sea Limited for Potential Amazon-Like Growth Story

Post author By TipsForTraders
Post date March 11, 2024

In the ever-evolving world of e-commerce and technology, Sea Limited (NYSE: SE) emerges as a compelling narrative that echoes the early chapters of Amazon’s remarkable journey. From its inception in 1994 as a modest online bookstore, Amazon has ascended to the zenith of the e-commerce universe, broadening its horizon to encompass streaming, digital advertising, and cloud computing among its diversified revenue streams. This expansion beyond its e-commerce roots has significantly contributed to its profitability and overall success.

Similarly, Sea Limited, headquartered in Singapore and serving a burgeoning consumer base across Southeast Asia, is charting a parallel course. With its primary revenue stream rooted in e-commerce through its Shopee app, Sea Limited is not merely content with dominating online retail. The company has ventured into digital entertainment, through its Garena game development studio, and digital financial services, offering a suite of financial products that include digital banking and loans.

As of the latest trading, Sea Limited’s shares are priced around $59, valuing the company at approximately $33.5 billion. Analysts speculate that the stock harbors the potential for a significant upward trajectory, potentially mirroring Amazon’s historic growth. Such speculation draws on the company’s strategic expansion and diversification within the tech sector, reminiscent of Amazon’s journey.

In the realm of e-commerce, Sea Limited has demonstrated a keen focus on efficiency and cost reduction, notably lowering logistics costs in Asia by 12% year-over-year, facilitated by increased automation and operational enhancements. This focus has translated into tangible benefits for consumers, particularly in Indonesia’s Java, where rapid delivery times have been achieved.

However, challenges remain, particularly within Sea’s digital entertainment segment. Despite the global popularity of games like Free Fire, the segment has witnessed a downturn in revenue, attributed to a decline in quarterly active users. Nonetheless, there are signs of recovery, with a notable increase in active users and sustained interest in Free Fire into 2024, suggesting potential for revitalization.

Sea’s financial services arm, Sea Money, represents a growing facet of the company, offering digital banking and merchant financing solutions that complement its e-commerce ecosystem. Despite a deceleration in overall revenue growth in 2023, these segments continue to show robust expansion, contributing to Sea’s strategic shift towards profitability.

The path to profitability has seen Sea Limited report its first annual profit in 2023, a significant turnaround from previous losses. This financial milestone underscores the company’s adept management and strategic cost-cutting, which have not only streamlined operations but also positioned Sea for sustainable growth.

Looking ahead, Sea Limited’s valuation suggests an appealing investment proposition, trading at a price-to-sales ratio that significantly underrepresents its growth potential. If Sea can sustain a revenue growth rate of 20% over the next decade, projections indicate a possible tenfold increase in stock value, buoyed by both growth and potential for multiple expansion.

This optimistic outlook is contingent on several factors, including the continued expansion of Sea’s e-commerce and financial services segments and the recovery of its gaming division. The comparison with Amazon’s trajectory over the past decade illuminates a path of exponential growth and market dominance that Sea Limited could emulate, offering a tantalizing prospect for investors seeking the next big opportunity in the tech sector.

Before diving into Sea Limited’s stock, investors should weigh their options and consider the broader market landscape. While Sea Limited presents an intriguing opportunity, a diversified approach, considering a spectrum of investment options, may be prudent. As the tech sector continues to evolve, Sea Limited stands out as a potential beacon of growth, reminiscent of the early days of Amazon, signaling a compelling opportunity for forward-thinking investors.

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Market Watch: Is the S&P 500 Overdue for a Pullback?

Post author By TipsForTraders
Post date March 11, 2024

The Stock Market’s Surge: Navigating the Wave of Optimism and Caution

The remarkable ascent of the stock market, notably the S&P 500, has captivated investors and analysts alike, with the index soaring 25% from its October 2023 nadir. This surge has not only rewarded the bullish but also silenced the skeptics predicting a downturn. However, the rapid rise is now drawing a cautious eye from market technicians, suggesting a potential overextension that could signal a forthcoming buying opportunity.

Market technicians, experts in analyzing market trends and charts, express growing concern over the S&P 500’s current trajectory. The index now stands 12% above its 200-day moving average, a notable increase from the 9% premium observed at the beginning of 2022, which preceded a significant market correction. John Roque, the head of technical strategy at 22V Research, highlights the index’s “stretched” condition, suggesting that a corrective phase is not just possible but likely.

Despite the index’s record high in the previous week, signs of momentum waning are becoming apparent, with the S&P 500 showing little movement and experiencing dips without clear triggers. Market observers, like Katie Stockton of Fairlead Strategies, point to “upside exhaustion,” suggesting that investors are increasingly opting to secure profits from the recent rally.

Historically, betting against the market’s upward momentum has proved futile, with the S&P 500 marking 16 new highs since November 1st. Even so, the calm indicated by the Cboe Volatility Index (VIX), which remains below its long-term average, does not negate the growing likelihood of a correction, as observed by market analysts like Craig Johnson of Piper Sandler. The market’s internal weakening and overbought conditions call for a “reality check,” he suggests, rather than a bearish outlook.

Technicians anticipate any correction to be mild, pointing to the resilience of the market in recent months. Yet, should the S&P 500’s 20-day moving average begin to decline, it would signal an acceleration in selling pressure, warranting closer attention to potential support levels for the index. The first critical support is projected around 4800, with a further drop potentially signaling a more significant buying opportunity, especially if the index approaches 4600.

In light of current market conditions, investors might consider diversifying into small-capitalization stocks. The S&P 500’s valuation, at 3.9 times that of the S&P Small Cap 600, suggests potential for small-cap outperformance in the coming year. Historical data supports this view, with small-caps showing significant gains following periods of comparative undervaluation.

Conclusion

As the stock market navigates through a phase of optimism and elevated valuations, the voice of caution from market technicians serves as a critical reminder for investors. The anticipation of a mild correction presents not a deterrent but a strategic opportunity for portfolio adjustment and diversification. With small-cap stocks positioned for potential relative gains, investors have a compelling case for considering broader market participation beyond the headline indices. Ultimately, the key to navigating the current market landscape lies in balanced optimism, informed caution, and strategic diversification.

Apple’s Dividend: A Look at the Potential for an Increase

Post author By jun
Post date March 8, 2024

Apple, the iconic tech giant, has a long and storied history of innovation and financial success. One aspect of this success is the company’s dividend program, which has steadily grown over the years. However, the question of whether Apple should further increase its dividend payout ratio remains a topic of debate among investors and analysts.

A Look Back at Apple’s Dividend History

Apple first initiated a dividend program in 2012, marking a significant shift in the company’s capital allocation strategy. Since then, Apple has consistently increased its dividend payout, reflecting its strong financial performance and commitment to returning value to shareholders. In fiscal 2023, Apple distributed a total of $54 billion in dividends to shareholders, representing a significant portion of its free cash flow.

Comparison with Tech Peers

While Apple’s dividend program has seen notable growth, it’s essential to compare it to other tech giants. Several of Apple’s peers, such as Microsoft and Cisco, boast higher dividend payout ratios. For instance, Microsoft’s current payout ratio sits at around 64%, while Cisco’s stands at 57%. This comparison suggests that Apple has room for further increasing its dividend payout, potentially making it more attractive to income-oriented investors seeking consistent returns.

Potential Benefits of an Increased Dividend

An increase in Apple’s dividend payout ratio could yield several potential benefits for the company and its investors.

Enhanced Investor Appeal: A higher dividend yield could attract a broader range of investors, particularly those seeking income-generating assets. This could potentially expand Apple’s investor base and bolster the company’s stock price.
Signal of Confidence: A decision to increase dividends can be interpreted as a signal of management’s confidence in the company’s future financial performance and cash flow generation capabilities. This can instill trust and optimism among existing shareholders.
Tax Advantages: Dividends offer certain tax advantages over stock buybacks, which are typically taxed as capital gains. For some investors, particularly those in higher tax brackets, this tax benefit can make dividends a more attractive form of receiving returns.

Considerations and Potential Challenges

While increasing the dividend payout ratio presents potential advantages, it’s crucial to acknowledge the associated considerations and potential challenges.

Balancing Growth and Return: Apple has consistently invested heavily in research and development, fueling its innovative spirit and propelling its future growth. A significant increase in dividends could potentially divert resources away from these critical growth initiatives. Finding the right balance between returning value to shareholders and reinvesting in future growth is paramount.

Maintaining Financial Flexibility: Maintaining a healthy level of financial flexibility is essential for any company, especially in a dynamic and ever-changing technological landscape. Excessive dividend payouts could limit Apple’s ability to respond to unforeseen circumstances or pursue strategic opportunities that may require significant capital investments.
Market Volatility: Dividend increases, while generally viewed positively by investors, can sometimes lead to short-term market volatility. Investors may interpret an increase as a sign that the company’s growth prospects are limited, potentially leading to fluctuations in the stock price.

Apple is in a strong financial position to consider a modest increase in its dividend payout ratio. The company’s robust cash flow generation and healthy balance sheet suggest it can comfortably sustain a higher dividend payout while still allocating sufficient resources for future growth initiatives.

However, it’s crucial to emphasize that the decision to increase dividends should be made with careful consideration of the potential benefits and drawbacks. Apple’s management team should conduct a thorough analysis of the company’s financial health, growth prospects, and overall strategic objectives before making any definitive decisions regarding dividend payouts.

Ultimately, the optimal dividend payout ratio for Apple will depend on various factors, including the company’s financial performance, future growth plans, and overall risk tolerance. Striking the right balance between returning value to shareholders and fueling future growth is essential for Apple to maintain its long-term success and shareholder value.

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Apple Inc. Faces Market Challenges as Shares Enter Technical Correction

Post author By TipsForTraders
Post date March 6, 2024

Apple Inc., the technology behemoth once revered for its market-leading position, has recently faced a downturn, stirring interest among traders as its shares plummeted below a key psychological mark, signaling the company’s first technical correction since August. This decline saw Apple’s stock fall short of maintaining the $180 support level, dipping below $170 during trading sessions. Todd Sohn, a respected figure in ETF and technical strategy at Strategas Securities, pointed out that this downturn could hint at a further retreat to its October low of $165.67 if the trend persists.

Despite the recent setbacks, Sohn remains cautiously optimistic about Apple’s short-term prospects, suggesting a potential rebound given the oversold condition. However, he also notes the weakened trend, which may lead traders to adopt a more bearish stance should the price attempt to recover to $180. This downturn has significantly impacted Apple’s market valuation, erasing over $300 billion and relinquishing its title as the most valuable U.S. company to Microsoft Corp. This shift comes amid a challenging period for Apple, marked by regulatory challenges, diminished sales in China, and growing skepticism about its growth potential, especially following a lukewarm fourth-quarter outlook that highlighted softening demand for its products.

The company’s struggles have not gone unnoticed by short sellers, who have found Apple to be a lucrative target, with S3 Partners citing it as the second-most profitable short position in February. This development raises broader concerns about the potential impact on the tech sector, especially given Apple’s substantial influence.

Despite Apple’s recent performance woes, its relationship with broader market indices such as the S&P 500 remains moderate, with a correlation coefficient of 0.65, according to Jeff Rubin from Birinyi Associates. This suggests that the overall market can continue to advance even in the face of Apple’s challenges, provided the company’s stock doesn’t breach its long-term upward trend from 2020 lows.

Mark Newton, Fundstrat Global Advisors’ head of technical strategy, echoes this sentiment, indicating that while Apple’s current state does not pose an immediate threat to the market, it is crucial for the stock to avoid further declines to maintain market health. Newton views any forthcoming weakness in Apple as an opportunity, suggesting that the stock could become increasingly appealing in the near term.

In conclusion, Apple Inc.’s recent downturn presents a complex scenario for traders and investors alike. The company’s influence on the market is undeniable, yet its current challenges offer both risks and opportunities. The coming weeks will be crucial in determining whether Apple can reverse its fortunes or if its decline will have a more profound impact on the broader technology sector. As it stands, the situation underscores the importance of monitoring technical indicators and market trends, as well as the interconnectedness of major tech companies with global financial markets.

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AI’s $200 Billion Bet: How Tech Investment is Shaping the Future Economy!

Post author By TipsForTraders
Post date March 4, 2024

The Dawn of AI: A New Era for the Stock Market and Economy

As the world stands on the brink of a technological revolution, the burgeoning field of artificial intelligence (AI) is poised to redefine the contours of the stock market and the broader economy. Esteemed analysts from Wall Street are casting a bright spotlight on AI, forecasting a significant upswing in stock performances, driven by the technology’s capability to enhance growth and productivity. Unlike the ephemeral enthusiasm of past tech booms, the current fervor surrounding AI is rooted in a deep-seated belief in its transformative potential, setting the stage for a sustained rally in the markets.

Beyond the Dot-com Bubble: AI’s Promising Horizon

Contrasting sharply with the speculative dot-com bubble of the 1990s, today’s AI-driven market optimism is underpinned by tangible growth prospects and technological advancements. Tom Lee, Fundstrat’s head of research, vehemently dismisses comparisons to past bubbles, projecting a robust rally for the S&P 500 to 5,200 within the year, which translates to a notable increase of at least 9%. Lee’s optimism extends beyond the immediate future, with a potential 30% rise in stock prices on the horizon, contingent upon favorable Federal Reserve policies. The driving force behind this bullish outlook? A critical global labor shortage coupled with a surging demand for AI solutions, positioning AI not merely as a driver of U.S. economic growth but as a solver of global challenges.

AI’s Economic Impact: From GDP Growth to Sector Disruptions

The influence of AI extends far beyond stock market predictions, with profound implications for the global economy and workforce. A McKinsey report suggests that AI could lead to nearly 12 million U.S. workers shifting careers by 2030. Meanwhile, Goldman Sachs forecasts a 1.5% increase in global GDP over the next decade, attributed to AI, with investments in the technology poised to reach $200 billion by 2025. This substantial infusion of capital into AI underscores its potential to revolutionize productivity and spur human creativity across various sectors, including software, consumer services, and healthcare.

Sector-Specific Impacts and the Rise of Virtual Workers

The ripple effects of AI’s ascendancy are anticipated to be most pronounced in specific sectors, with Morgan Stanley predicting a significant profit surge for S&P 500 companies, driven by up to a 50 basis point increase in net margins by 2025. This potential for heightened profitability highlights the transformative impact of AI across diverse industries, underscoring its role as a critical lever for economic growth and innovation. Similarly, David Waddell of Waddell & Associates emphasizes AI’s capacity to mitigate the chronic worker shortage through the creation of virtual workers, further illustrating the technology’s wide-reaching benefits.

A Sustainable Bull Market Fueled by AI

Echoing the sentiments of his peers, Gene Munster of Deepwater Asset Management anticipates a sustained bull market buoyed by AI, potentially extending over the next three to five years. Munster’s bullish stance on AI, ranking it at the pinnacle of investment opportunities, reflects a broader consensus on AI’s paradigm-shifting potential. This optimism is further reinforced by Mary Ann Bartels of Sanctuary Wealth, who projects the S&P 500 could soar to 5,800 by year-end, driven by AI’s amplification of productivity—a testament to AI’s enduring impact on the economy akin to the internet boom of the late ’90s.

Conclusion: AI as the New Economic Foundation

The unanimous optimism among Wall Street’s luminaries regarding AI’s impact on the stock market and economy is more than mere speculation; it’s a reflection of the technology’s potential to drive unprecedented growth and innovation. As AI continues to evolve, its integration into various sectors promises not only to enhance productivity and solve global challenges but also to redefine the investment landscape. In this new era, AI emerges not just as a technological advancement but as a foundational pillar for economic expansion, heralding a future where its influence permeates every facet of the economy.

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Lockheed’s HIMARS Plant Gearing Up to Meet Demand After Ukraine Success

Post author By reuters
Post date February 28, 2023

HIMARS missile launcher vehicles assembled at Lockheed Martin in Camden, Arkansas

By Mike Stone

CAMDEN, Arkansas (Reuters) – Lockheed Martin’s mobile rocket launcher plant in Camden, Arkansas is gearing up to boost production of the HIMARS system after its success on the battlefield in Ukraine drove up demand from other nations, executives said on Monday.

The High Mobility Artillery Rocket System (HIMARS) is now a widely recognized weapon after mobile phone camera footage of the war in Ukraine showed the launchers in action.

“When you have a combat proven system that is out there and in the news – daily – then that’s driving that demand,” said Jennifer McManus, the vice president for operations of Lockheed’s missile business.

Lockheed Martin makes HIMARS and refurbishes an older version in Camden, a small town southwest of Little Rock.

Thanks to some investments made over the last year in the 282,000 square foot building where the ground vehicles are made, Lockheed only needs a few upgrades to meet that increased production rate, Lockheed executives said.

The list includes a paint booth, non-skid coating mixer, tire assembly manipulator arm and an axel installation track, the executives told Reuters.

On an earnings call with investors Lockheed’s CEO said “on HIMARS specifically, we’ve already met with our long lead supply chain to plan for increasing production to 96 of these units a year.” Lockheed started 2022 with a HIMARS launcher production rate of 48, but has since ramped up to 60 year.

The HIMARS launcher had been growing in popularity even before its success in Ukraine.

Poland was cleared in February to purchase 18 HIMARS launchers and 468 launcher loader kits that can be in installed on Polish-made trucks to turn into them into similar launch platforms. Talks for that deal began in 2017, a Lockheed spokesperson told Reuters.

(Reporting by Mike Stone in Camden, Arkansas; Editing by Stephen Coates)

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Stocks, crude oil advances despite higher interest rate expectations

Post author By reuters
Post date February 23, 2023

German share price index DAX graph is pictured at the stock exchange in Frankfurt

By Chibuike Oguh

NEW YORK (Reuters) -Global equities and crude oil rebounded from earlier losses on Thursday even as economic data continued to show the strength of the U.S. economy and validated the Federal Reserve’s tight monetary policy stance.

A U.S. Labor Department report on Thursday showed that new claims for unemployment benefits unexpectedly fell last week, pointing to a persistently tight labor market.

The readings for the fourth-quarter personal consumption expenditures (PCE) price index, the Fed’s preferred inflation measure, were revised upward to 3.7%, indicating inflation was much stronger than initially thought and weighed on sentiment earlier in the day.

Minutes of the Federal Reserve’s last meeting released on Wednesday showed that officials favored a moderation in the pace of rate hikes although they indicated that containing high inflation would be key in how much further rates need to rise.

“The Fed minutes yesterday were a bit hawkish and they said ongoing rate hikes would be necessary and that should obviously be negative for the market,” said Sandy Villere, portfolio manager at Villere & Co in New Orleans.

“But it seems the market is starting to discount that we’re getting into the eighth or ninth inning of these rate hikes even though the Fed is saying ongoing rate hikes would be necessary,” Villere said.

The MSCI world equity index, which tracks shares in 50 countries, was down 0.27%. European stocks were up at just 0.06%.

On Wall Street, the Nasdaq regained earlier losses from better-than-expected revenue at chipmaker Nvidia Corp. The results drove the company’s shares up 14%, along with shares of other semiconductor manufacturers.

The Dow Jones Industrial Average rose 0.33% to 33,153.91, the S&P 500 gained 0.53% to 4,012.32 and the Nasdaq Composite added 0.72% to 11,590.40.

“When you see strong numbers at certain companies, it could be market moving and that’s what we’re seeing today – a bit of a relief rally,” Villere added.

Oil prices firmed more than 1% before paring some gains, with Russian supply curbs partially offsetting an expected rise in U.S. inventories.

Brent crude futures settled up 2% to $82.21 a barrel, while West Texas Intermediate crude futures (WTI) advanced 2% to $75.39 after six sessions of losses.

U.S. Treasury yields edged lower in choppy trading, with those on the 10-year pulling back from three-month highs, as investors have priced in strong economic data.

Benchmark 10-year Treasury notes were down at 3.8865%, while the yield curve measuring the gap between the two- and 10-year Treasury notes was still inverted at minus 77.90 basis points, indicating a looming recession.

The dollar retained its strength against its major peers. The dollar index rose 0.077%, with the euro down 0.07% to $1.0594.

Safe-haven gold prices slipped to their lowest in about two months as the U.S. dollar climbed. Spot gold dropped 0.03% to $1,822.09 an ounce, while U.S. gold futures fell 0.55% to $1,822.00 an ounce.

(Reporting by Chibuike Oguh in New York, editing by Anna Driver, Bernadette Baum and Diane Craft)

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Alphabet shares dive after Google AI chatbot Bard flubs answer in ad

Post author By reuters
Post date February 9, 2023

Google tweets about its AI chatbot Bard in this screenshot

By Martin Coulter and Greg Bensinger

LONDON (Reuters) – Alphabet Inc lost $100 billion in market value on Wednesday after its new chatbot shared inaccurate information in a promotional video and a company event failed to dazzle, feeding worries that the Google parent is losing ground to rival Microsoft Corp.

Alphabet shares slid as much as 9% during regular trading with volumes nearly three times the 50-day moving average. They pared losses after hours and were roughly flat. The stock had lost 40% of its value last year but rallied 15% since the beginning of this year, excluding Wednesday’s losses.

Reuters was first to point out an error in Google’s advertisement for chatbot Bard, which debuted on Monday, about which satellite first took pictures of a planet outside the Earth’s solar system.

Google has been on its heels after OpenAI, a startup Microsoft is backing with around $10 billion, introduced software in November that has wowed consumers and become a fixation in Silicon Valley circles for its surprisingly accurate and well-written answers to simple prompts.

Google’s live-streamed presentation on Wednesday morning did not include details about how and when it would integrate Bard into its core search function. A day earlier, Microsoft held an event touting that it had already released to the public a version of its Bing search with ChatGPT functions integrated.

Bard’s error was discovered just before the presentation by Google, based in Mountain View, California.

“While Google has been a leader in AI innovation over the last several years, they seemed to have fallen asleep on implementing this technology into their search product,” said Gil Luria, senior software analyst at D.A. Davidson. “Google has been scrambling over the last few weeks to catch up on Search and that caused the announcement yesterday (Tuesday) to be rushed and the embarrassing mess up of posting a wrong answer during their demo.”

Microsoft shares rose around 3% on Wednesday, and were flat in post-market trading.

Alphabet posted a short GIF video of Bard in action via Twitter, promising it would help simplify complex topics, but it instead delivered an inaccurate answer.

In the advertisement, Bard is given the prompt: “What new discoveries from the James Webb Space Telescope (JWST) can I tell my 9-year old about?” Bard responds with a number of answers, including one suggesting the JWST was used to take the very first pictures of a planet outside the Earth’s solar system, or exoplanets. The first pictures of exoplanets were, however, taken by the European Southern Observatory’s Very Large Telescope (VLT) in 2004, as confirmed by NASA.

“This highlights the importance of a rigorous testing process, something that we’re kicking off this week with our Trusted Tester program,” a Google spokesperson said. “We’ll combine external feedback with our own internal testing to make sure Bard’s responses meet a high bar for quality, safety and groundedness in real-world information.”

FORMIDABLE COMPETITOR

Alphabet is coming off a disappointing fourth quarter as advertisers cut spending.

The search and advertising giant is moving quickly to keep pace with OpenAI and rivals, reportedly bringing in founders Sergey Brin and Larry Page to accelerate its efforts.

“People are starting to question is Microsoft going to be a formidable competitor now against Google’s really bread-and-butter business,” said King Lip, chief strategist at Baker Avenue Wealth Management, which owns Alphabet and Microsoft shares.

Lip cautioned, though, that concerns about Alphabet may be overblown, saying: “I think still Bing is a far, far cry away from Google’s search capabilities.”

The new ChatGPT software has injected excitement into technology firms after tens of thousands of job cuts in recent weeks and executive pledges to pare back on so-called moonshot projects. AI has become a fixation for tech executives who have mentioned it as much as six times more often on recent earnings calls than in prior quarters, Reuters found.

The appeal of AI-driven search is that it could spit out results in plain language, rather than in a list of links, which could make browsing faster and more efficient. It remains unclear what impact that might have on targeted advertising, the backbone of search engines like Google.

Chatbot AI systems also carry risks for corporations because of inherent biases in their algorithms that can skew results, sexualize images or even plagiarize, as consumers testing the service have discovered. Microsoft, for instance, released a chatbot on Twitter in 2016 that quickly began generating racist content before being shut down. And an AI used by news site CNET was found to produce factually incorrect or plagiarized stories.

At the time of writing, the Bard ad had been viewed on Twitter more than a million times.

(Reporting by Martin Coulter; Additional reporting by Johann Cherian, Eva Mathews, Lewis Krauskopf; Editing by David Gregorio and Christopher Cushing)

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Ukraine’s parliament amends 2023 budget, raises spending

Post author By reuters
Post date February 7, 2023

People walk along a street in Mariupol

KYIV (Reuters) – Ukraine’s parliament approved changes to the 2023 state budget on Tuesday, raising state spending to support small businesses and channel more funds into reconstruction and recovery projects following Russia’s invasion.

Roksolana Pidlasa, the head of the parliamentary budget committee, said spending had been increased by 5.5 billion hryvnias ($150 million).

The increase included funds to finance and modernise hospitals in the capital Kyiv and the western city of Lviv, and to rebuild bridges damaged in Russia’s war on Ukraine.

The amended budget also plans for 1.28 billion hryvnias in additional support for small businesses in the processing industry and state guarantees for loans in the agriculture sector.

Almost a year of war has ravaged Ukraine’s public finances, leading to double-digit inflation, higher unemployment, a sharp fall in exports and big losses in revenue and tax income.

Ukraine’s budget deficit this year is expected to be about $38 billion. The government plans to cover the deficit with Western foreign aid.

The finance ministry has said the budget received 35.8 billion hryvnias from tax revenues and 31.5 billion hryvnias from customs in January. The government also received 155.24 billion hryvnias in foreign aid last month.

($1 = 36.5686 hryvnias)

(Reporting by Olena Harmash, Editing by Timothy Heritage)