The Microsoft logo is pictured outside the headquarters in Paris, Jan. 8, 2021. A group of video game testers is forming Microsoft's first labor union in the U.S. and the largest in the video game industry. Communications Workers of America said Tuesday, Jan. 3, 2023, that about 300 quality assurance workers at Microsoft video game subsidiary ZeniMax Studios have voted to join the union. (AP Photo/Thibault Camus, File)
The Week's Top Stories is a guided tour through the biggest market stories of the week, from winning stocks to brutal dips to the facts and forecasts generating buzz on Wall Street.
TECH LAYOFFS
Shares of Amazon, Microsoft, and Google parent company Alphabet are all up this week following announcements of mass layoffs. Here's a quick refresher: Microsoft is cutting 10,000 jobs. Amazon is in the process of laying off 18,000 jobs, and Alphabet is putting 12,000 jobs on the chopping block as of Friday. The layoffs are happening despite a historically tight labor market, in part because tech firms hired too many workers during the pandemic. The companies said uncertainties around the global economy going into 2023 are behind the reversal.
NETFLIX ADDS SUBSCRIBERS
Netflix's stock is up near 4 percent this week after reporting that it added 7.6 million subscribers, compared to Wall Street estimates of around 4.5 million. The subscriber beat was enough to counterbalance an earnings miss, and the news that long-time co-CEO Reed Hasting will be transitioning to the role of executive chairman. Chief Operating Officer Greg Peters is replacing Hastings as CEO. Notably this is the first quarter that Netflix offered a cheaper ad-supported plan, though it's unclear how much that contributed to the subscriber gains.
WAYFAIR TAKEOFF
Online furniture retailer Wayfair also announced layoffs this week, and investors also rewarded the move. The stock is up around 23 percent for the week after laying off 1,750 employees, or about 10 percent of its workforce. CEO Niraj Shah said the company grew too rapidly and was now streamlining in anticipation of economic headwinds, a now familiar story in tech.
CHINA POP FALLS
Despite the bullish sentiment in tech following the cuts, markets are set to end the week slightly down, due in no small part to some negative news from China. The country reported a population decline for the first time in decades on top of slowing economic growth. China only recently eased its COVID-19 restrictions, and hopes were high that the change would help buoy the world economy. Now it's less clear that the country will bounce back as strongly.
BITCOIN RALLIES
Finally, Bitcoin's price crossed $20,000 this week despite the collapse of most major crypto exchanges, including an announcement from crypto lender Genesis on Friday that it was declaring bankruptcy. The largest cryptocurrency is now floating around $22,300.
Ty Young, CEO of Ty J. Young Wealth Management, joins Cheddar to discuss Trump's moves as he returns to Washington D.C. and how it may affect the U.S. economy.
Starbucks’ decision to restrict its restrooms to paying customers has flushed out a wider problem: a patchwork of restroom use policies that varies by state and city. Starbucks announced last week a new code of conduct that says people need to make a purchase if they want to hang out or use the restroom. The coffee chain's policy change for bathroom privileges has left Americans confused and divided over who gets to go and when. The American Restroom Association, a public toilet advocacy group, was among the critics. Rules about restroom access in restaurants vary by state, city and county. The National Retail Federation says private businesses have a right to limit restroom use.
President Donald Trump is talking up a joint venture investing up to $500 billion for infrastructure tied to artificial intelligence by a new partnership formed by OpenAI, Oracle and SoftBank. The new entity, Stargate, will start building out data centers and the electricity generation needed for the further development of the fast-evolving AI in Texas, according to the White House. The initial investment is expected to be $100 billion and could reach five times that sum. While Trump has seized on similar announcements to show that his presidency is boosting the economy, there were already expectations of a massive buildout of data centers and electricity plants needed for the development of AI.
Chris Ruder, Spikeball Founder and CEO, explains how he and his friends put roundnet on the global map, plus, how Spikeball helps people "find their circle."
J.W. Roth, CEO of Venu Holding Corporation, discusses the company's IPO and plans to redefine live music entertainment with their fan founded, fan-owned model.
Variety's Clayton Davis discusses why more than just the 1% are struggling after the LA fires. Plus, how awards shows will pivot to help victims. Watch!
Emily Hosie, CEO of Rebelstork, explains the concept of Returns Recommerce, plus how her company raised $18M to address the industry-wide issue of returns.
