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Elon Musk Testifies In 2nd Day Of Tesla Tweet Trial

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Elon Musk Testifies In 2nd Day Of Tesla Tweet Trial

SAN FRANCISCO – Elon Musk returned to federal court in San Francisco on Monday, testifying that during 2018 meetings with representatives from Saudi Arabia’s Public Investment Fund, he believed he had secured financial backing to take Tesla private — though no specific funding amount or price was discussed.

Tesla CEO Elon Musk is facing a class action lawsuit filed by Tesla investors who claim he misled them with a tweet claiming funding was secured to take his electric car company private — for $420 per share.

The tweet resulted in a $40 million settlement with securities regulators after the deal fell through.

The trial hinges on whether Musk’s Aug. 7, 2018, tweets harmed Tesla shareholders during the 10 days preceding Musk’s admission that the buyout he had envisioned would not take place.

musk

Musk Not At His Peak For Trial

In a soft, halting tone, Musk said Monday that he “had trouble sleeping last night, and unfortunately, I am not at my best.” He said jurors should know that he “felt that funding was secured” because of his ownership of “SpaceX stock alone.”

“I didn’t want to sell Tesla stock to buy Twitter, but I did sell Tesla stock,” he said of the stock sale to compensate for the lack of funding from other sources for his $44 billion deal to take Twitter private. Musk sold nearly $23 billion in shares of his car company between April when he began building a position on Twitter and December.

“My SpaceX shares alone would have ensured funding,” Musk said of the 2018 tweets.

Even before Musk took the stand on Friday, U.S. District Judge declared that jurors could consider those two tweets false, leaving them to decide whether Musk purposefully misled investors and whether his statements caused them to lose money.

Musk previously claimed that he entered into the SEC settlement under duress and thought he had secured financial backing for a Tesla buyout during meetings with representatives from Saudi Arabia’s Public Investment Fund.

musk

Musk Stepped Down As Tesla’s Chairman

Musk stated in the first of the 2018 tweets that “funding secured” for a $72 billion — or $420 per share — buyout of Tesla was still dealing with production issues and was worth far less than it is now. Musk responded a few hours later with another tweet implying that a deal was imminent.

A lawyer for Tesla shareholders, Nicholas Porritt, asked Musk if he “went with 420 because it was a joke your girlfriend enjoys.” Musk responded that he believes there is “some karma” surrounding the number 420, a slang reference to marijuana, but he doesn’t know “whether it’s good karma or bad karma at this point.”

He later stated that the figure was a “coincidence” and represented a 20% premium over Tesla’s share price at the time.

As part of the Securities and Exchange Commission settlement, Musk stepped down as Tesla’s chairman while remaining CEO after it became clear that the funds to take Tesla private were unavailable.

SOURCE – (AP)

 

Kiara Grace is a staff writer at VORNews, a reputable online publication. Her writing focuses on technology trends, particularly in the realm of consumer electronics and software. With a keen eye for detail and a knack for breaking down complex topics, Kiara delivers insightful analyses that resonate with tech enthusiasts and casual readers alike. Her articles strike a balance between in-depth coverage and accessibility, making them a go-to resource for anyone seeking to stay informed about the latest innovations shaping our digital world.

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Netflix Earnings Preview: As the stock Approaches Records, Investor Anticipation is high.

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Netflix
(Jaque Silva/SOPA Images/LightRocket via Getty Images)

(VOR News) – Netflix (NFLX) is scheduled to release its fiscal second quarter earnings on Thursday following the market’s close, as the stock continues to approach record highs.

After the market has closed, the earnings report will be available. However, the streaming service will once again encounter a significant challenge in order to accomplish economic outcomes.

Benjamin Swinburne, an analyst at Morgan Stanley, issued the subsequent statement in a note that was disseminated prior to the announcement: “We remain optimistic about NFLX shares, as there is still substantial opportunity for growth.”

The company’s decision to expand into the sectors of sports programming and live events has been met with satisfaction by investors.

While this is occurring, its advertising tier is continuing to draw an increasing number of audience members. As a result, the entire stock has increased by approximately 35% since the beginning of the year.

Netflix’s circumstances inevitably lead to this outcome.

The share price of Netflix was approximately $656 at the conclusion of the business day on Thursday. At the time of closure on November 17, 2021, the price of the shares attained a new all-time high of $691.69.

Conversely, Wall Street has expressed apprehension regarding the stock’s recent surge in price.

“We are cautious as we approach the company’s Q2 2024 release,” said Citi analyst Jason Bazinet. “We maintain our Neutral rating and $660 target price.”

Wall Street anticipates the report to contain the following, as per the consensus forecasts published by Bloomberg:

Netflix’s revenue for the second quarter of 2023 was $8.19 billion, a decrease from the $9.53 billion reported in the previous quarter, as per the company’s revenue guidance.

In contrast to the $3.29 per share in the second quarter of 2023, Netflix’s profit per share (EPS) is anticipated to be $4.74, which exceeds the $4.68 prediction.

The number of new subscribers increased to 4.7 million, a decrease from the 5.9 million recorded in the second quarter of 2023. Netflix was awarded the streaming rights to two National Football League games that were scheduled to be broadcast on Christmas Day as part of a three-season agreement in May.

The contests were scheduled to be broadcast on Christmas Day. The organization also informed advertisers that its advertising tier had reached a total of forty million monthly active consumers worldwide during the May presentation. This is a substantial increase from the 15 million users that the company reported in November.

Additionally, Netflix has grown by 35 million users since last year.

In an effort to incentivize more users to transition to its advertised option, the streaming service has increased the prices of its ad-supported subscriptions, which is the reason for the increase in the prices of its ad-free subscriptions.

Furthermore, Netflix’s restriction on password-sharing has led to an increase in top-line growth and an expansion of the platform’s overall subscriber base, with an additional 9 million users joining in the first quarter. This is a substantial improvement.

Conversely, the ascension has not been an entirely seamless journey. Netflix announced in April that it would cease to furnish subscribers’ numbers starting next year. Investors expressed apprehension regarding the company’s subscriber base’s long-term expansion as a consequence of this announcement, which led to a substantial decrease in the company’s share price.

Furthermore, Swinburne emphasized that Netflix must consider “larger competitors” in light of the company’s own business’ evolution over the next few years. Consider the examples of Prime Video, which is owned by Amazon, and YouTube, which is owned by Alphabet.

These are merely two illustrations. It is likely that alternative sources of consumer time, such as social media, which is becoming increasingly dominated by short-form video, are less apparent. This is an area that will be further examined.

SOURCE: YN

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GameStop Boosts Profits in after-hours Trading, Despite the risk of Mood swings.

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GameStop
Image: Shutterstock

(VOR News) – The share price of the meme stock behemoth GameStop (NYSE: GME) had a big boost, which resulted in the continuation of the gains that were registered earlier in the week.

Gains in broader markets are reflecting an optimistic sentiment for risk assets, which includes bitcoin, despite the fact that recent political events, such as the attempted assassination of presidential candidate Donald Trump on Saturday, have resulted in the occurrence of such events.

following reaching a high of $29.96 following the closing bell of the New York Stock Exchange, the stock is currently trading at roughly $29.60. This is the current price of the stock.

Statistical analysis reveals GameStop that this is the case.

In most cases, trading for GameStop GME and other stocks that are listed on the New York Stock Exchange (NYSE) takes place via electronic communication networks after the market has closed. Trading is able to take place outside of the normal market hours as a result of these platforms.

This followed the stock’s climb on Monday, which was the highest point it has achieved in a month, as well as a 13% advance over the course of the previous thirty days. The increase in the stock’s price occurred on Monday.

GameStop, which is frequently referred to as the “meme stock,” gained a significant amount of attention at the beginning of 2021 when retail investors on the Reddit group r/WallStreetBets started purchasing shares in massive quantities. As a consequence, this led to one of the most consequential short squeezes in the entire history of the market.

The initial excitement had diminished by the beginning of February of that year; nonetheless, GameStop has continued to capture the interest of investors, particularly when it began taking steps to diversify its business. This is particularly true after the company began to take steps to diversify its business.

The recent news made by GameStop that they will be offering a reward of $25,000 for a rare Lionel Messi sticker from the 2024 Panini Copa America collection has garnered some attention with its announcement. This statement is illustrative of the company’s mission to expand outside the traditional video gaming market it has been operating in.

This may be playing into the hands of risk on traders who are anticipating that the Federal Reserve of the United States will begin cutting interest rates as soon as September, according to the CME FedWatch Tool. Traders are assuming that the Federal Reserve will implement this change.

There is a significant possibility that additional liquidity would be introduced into markets as a result of reduction, particularly in the case of small-cap public stocks.

The Russell 2000 Index, which is a measurement of the performance of two thousand small-cap companies in the United States, has witnessed a twelve percent increase over the course of the last five trading days.

This change occurred during the GameStop period of the last five trading days.

The importance of interest rates lies in the fact that they have an impact not only on the price of borrowing money but also on the profits made from investments. There is a positive feedback loop between the Federal Reserve’s decision to cut interest rates and the increased affordability of borrowing money, which in turn supports both consumption and investment.

A bigger quantity of money is invested in a range of assets, including stocks and cryptocurrency, which leads to an increase in the market’s liquidity. This is the result of the aforementioned phenomenon.

Recent market action, including that of GameStop and small-cap stocks, is consistent with broader market trends. This can be observed by the fact that important U.S. indices have ended at record highs, which is evidence of the consistency of the market.

This week, the value of the Dow Jones Industrial Average has increased by 2%, reaching a closing price of 40,954.48, indicating that the value has increased. The numbers from the market indicate that the S&P 500 has also grown by 0.69%, reaching a high of 5,667.20, while the Nasdaq Composite has increased by 0.21%, reaching 18,510.86 altogether. Both of these figures are for the same period of time.

SOURCE: CN

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Alphabet is Considering Acquiring Wiz, a Cybersecurity startup, for $23 Billion.

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Alphabet
PHOTO: REUTERS

(VOR News) – A person who is familiar with the matter and spoke to the media on Sunday revealed that Alphabet, the parent company of Google, is reportedly in advanced discussions to acquire the cybersecurity startup Wiz for approximately $23 billion.

This information was brought to the attention of the media. This particular piece of information was supplied by the individual who addressed the media.

If this transaction were to be finalized, the corporation that dominates the technology industry would be making its most significant acquisition to this point.

The acquisition, which is being funded primarily through cash, may be finalized in the not too distant future, according to a source who spoke on condition of anonymity while expressing their opinion.

Source provided Alphabet information on condition it stay private.

Wiz, a software company that was established in Israel and currently has its headquarters in New York, is one of the businesses that is expanding at the quickest rate throughout the world in terms of its global expansion.

Wiz was created in Israel. In addition to offering solutions for cybersecurity that are hosted in the cloud, it also offers real-time threat detection and responses that are powered by the capabilities of artificial intelligence.

If Alphabet were to go through with the transaction, it would be an unusual instance of a huge technology company pursuing a mega-acquisition at a time when the industry is being subjected to increased regulatory scrutiny under the administration of Joe Biden, the Vice President of the United States of America.

This is something that would be the case given that the government is currently paying a greater amount of attention to the sector.

Over the course of the past several years, Alphabet regulators in the United States have shown a rising antipathy toward the idea of giant technology companies expanding their operations through mergers and acquisitions. This hostility has been expressed by the regulators.

The company Wiz collaborates with forty percent of the companies that are included in the Fortune 100, and the Alphabet website of the company states that the company’s sales in 2023 were approximately three hundred and fifty million dollars.

In light of the fact that the company recently completed a private investment round that resulted in the funding of one billion dollars, the valuation of the company was only recently assessed to be twelve billion dollars.

Wiz is a cloud service provider that collaborates with a wide range of firms, including Microsoft and Amazon, and claims to have a diverse clientele of businesses as its customers. Wiz collaborates with a number of different businesses, including Morgan Stanley and DocuSign, among others.

In the past, Wiz has asserted that it intended to raise the number of people working for it by 400 across the world by the year 2024. There are currently 900 persons working for the organization in various locations throughout the world, including the United States of America, Europe, Asia, and Israel.

Alphabet realized it wouldn’t be worth buying HubSpot recently.

A firm that specializes in generating software Alphabet products for internet marketing. HubSpot is responsible for developing software products.

This year has seen an increase in the total number of transactions that have taken place in the technology industry as a whole. This trend has been observed over the course of this year.

Synopsys, a company that specializes in design software, reached a deal in January to purchase Ansys, a competitor that is on the smaller side, for approximately $35 billion.

Ansys is a company that faces competition from other companies. In the month of January, Hewlett Packard Enterprise reached a deal with Juniper Networks, a firm that specializes in the production of networking equipment, to acquire the company for a price of $14 billion. The agreement was reached between the two Alphabet companies.

According to the information that was provided by Dealogic, the sector of technology was the one that was responsible for the greatest number of mergers and acquisitions that occurred during the first half of the year.

The total amount of these transactions reached $327.2 billion, which is an increase of more than 42 percent when compared to the volume of transactions that occurred in the previous year.

SOURCE: TET

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