Amazon Stock Falls on Mixed Earnings Report and Weak Forecast. AWS Missed Too.

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Netflix hasn’t confirmed its plans to stop password sharing just yet

Based on info Netflix’s support pages, a report published by The Streamable appeared to confirm details about how it will roll out anti-password sharing features in the US and elsewhere. However, Netflix hasn’t announced the details of its plan yet or what it may look like when it rolls out more widely this year.

Netflix spokesperson Kumiko Hidaka said in a statement given to The Streamable and The Verge that “For a brief time on Tuesday, a help center article containing information that is only applicable to Chile, Costa Rica, and Peru, went live in other countries. We have since updated it.”

We already know that Netflix is ​​planning to roll out password sharing more broadly within the coming months. Netflix has been testing the program with subscribers in Chile, Costa Rica, and Peru since early last year, where it started to require users to pay extra for additional users located outside of the subscriber’s primary household.

In its report, The Streamable cite this Netflix help center page as the source for its information. However, the information included in the article for US customers — and visible on an Internet Archive page captured yesterday — doesn’t match what is listed today. Right now, that information is only available on the pages for the Central and South American test countries.

Hidaka explained in an emailed statement to The Verge that the text seen is applicable where Netflix rolled out its “Extra Member” offering in Chile, Costa Rica, and Peru in March, but not in the US or other countries where that isn’t available. As far as what else is confirmed so far, she pointed to Netflix’s earnings statement from January, saying that “Later in Q1, we expect to start rolling out paid sharing more broadly.”

The rules on the archived page (and pages for the Extra Member-enabled countries) state that only the people located in your primary household can use a single Netflix subscription. In order for multiple devices to use a single subscription, Netflix says you must “connect to the Wi-Fi at your primary location, open the Netflix app or website, and watch something at least once every 31 days” on the devices you and your household members use to watch Netflix, to stop device blocks on “trusted devices” that you can use anywhere.

The archived support page says Netflix could block a device “that is not part of your primary location.”
Picture: Internet Archive/Netflix

The US-centric page we can access today states that “people who do not live in your household will need to use their own account to watch Netflix.” That’s in contrast to the page for Costa Rica, Chile, and Peru, which says that you’re required to add an extra member for anyone using your subscription outside your household. It also adds that it will use your IP address, device ID, and account activity to determine when someone else is using your account.

Similarly, the currently available US support page about what Netflix considers a “household” is vastly different from the pages in Costa Rica, Chile, and Peru. On the US page, the company only describes its idea of ​​a household as “people who live in the same location with the account owner.” Meanwhile, the pages for the three South and Central American countries provide more detail on how to change your primary household, sign out of accounts on devices in different locations, or what might cause a device to become blocked.

This is a glimpse at what you could expect when Netflix’s crackdown on password sharing goes into effect globally and what kind of headaches it could bring to people who just need to watch from multiple locations or people who love to use VPNs inside the privacy of their own homes.

But when it comes to how Netflix will try to push users in the US or other countries to purchase sub-accounts for all of the exes, cousins, former roommates, and complete strangers who hitch a ride on our streaming accounts, it’s not ready to tell.

Update February 2nd, 3:37PM ET: Added statement from Netflix about the updates to the support pages.


Penn sports betting business posts fourth quarter profit

In this photo illustration, the Penn Entertainment logo is displayed on a smartphone mobile screen.

Rafael Henrique | SOPA Images | light rocket | Getty Images

Penn Entertainment on Thursday became the first US gambling company to post a profit in its sports betting business during the final three months of a year.

Usually, it’s tougher to turn a sportsbook profit during the third and fourth quarters because companies spend more on marketing and promotions during football season.

Penn’s interactive business, which also includes online casino games, made a $5.2 million profit on $208 million in revenue during the fourth quarter of 2022. The performance helped lift the company’s overall revenue for the period by nearly 1% to $1.6 billion.

The profit in sports betting came even in spite of a highly publicized $10 million bet Jim “Mattress Mack” McIngvale placed – and won – on the Houston Astros winning the World Series in November.

Caesars also took a hit from Mattress Mack’s baseball bet, which blocked his own ability to turn a profit in sports betting in the fourth quarter, according to results pre-released as a result of a debt refinancing.

FanDuel, the US online sports betting leader for market share, announced a quarterly profit in the second quarter last year and said it anticipated profitability for the full year. Its parent company, Flutterhas not yet announced earnings.

DraftKingsanother rival, has said it will be profitable by 2024. Its shares rebounded more than 50% in January, after a punishing 2022, when investors focused on the lack of earnings in spite of massive spending on promotions and marketing.

Penn credits its profitability in the interactive segment to a marketing approach that differs from its competitors. It relies on cross-platform promotion from Barstool, a sports media company that Penn will own in full later this month, and powerhouse Canadian media brand theScore.

Penn said Ontario, where theScore was founded, has become its top market in North America for sports betting and its iCasino business, in spite of intense competition.

The company’s interactive business also experienced its most successful launch ever, based on first time deposits, when Ohio went live with sports betting Jan. 1. Penn credited the power of the Barstool brand and said more than half of the money wagered came from those within its MyChoice customer reward database.

Still shares declined Thursday, after CEO Jay Snowden, on an earnings call, blamed overall lackluster fourth quarter earnings on bad weather in December. The company issued 2023 guidance which Deutsche Bank gaming analyst Carlo Santarelli called “realistic, though likely uninspiring.”

Snowden said the guidance is conservative, based on the broader economic outlook. “We took a haircut to what we anticipated seeing in 2023, just to build in some level of recessionary concerns,” he said.

But, he added, January has been very strong for both its bricks-and-mortar casinos and the online platform. He said if the current trend continues, the midpoint of the guidance is likely to turn out to be low.



80% of workers who quit in ‘great resignation’ regret it: new survey

The “Great Regret” is the latest workplace trend to sweep the nation, with the majority of professionals who quit their jobs last year wishing they could get a do-over, according to a new survey.

2022 was another record year for quitting — 4.1 million workers left their jobs in December, bringing the grand total for the year to over 50 million. Roughly 47 million quit the year before, citing higher pay and better working conditions as incentives for their exit. Now, 8 out of 10 professionals who left their jobs regret their decision, a new Paychex study finds.

Paychex surveyed 825 employees who quit during the “great resignation” and 354 employers to analyze the impact of the quitting spree and gauge employees’ job satisfaction.

They found that mental health, work-life balance, workplace relationships and the chance to get rehired all suffered as a result.

Gen Zers are struggling the most

According to Paychex, Gen Z workers reminisce about their old jobs the most. A whopping 89% of Gen Zers say they regret quitting, and as a result, their mental health is on the decline.

“The ‘great resignation’ has led to much regret by employees seeking new opportunities. Among those regrets, employees were most likely to miss their co-workers,” Jeff Williams, vice president of enterprise and HR solutions at Paychex, tells CNBC Make It . “These friendships create a sense of community among employees, creating a positive company culture — another thing employees missed about their previous job.”

“Our research found that 9 in 10 people reported changing industries after they resigned, and professionals who changed industries were 25% more likely than workers who remained in the same industry to regret their choice. Gen Zers were most likely to miss working in the office , and Gen Xers missed the work-life balance from their previous jobs the most.”

Seemingly, the job perks, benefits, and culture that caused young workers to join the great resignation aren’t enough to keep them satisfied.

“Despite satisfaction with mental health and work-life balance influencing many resignations, only about half of respondents from our survey said they are satisfied with their mental health (54%) and work-life balance (43%) in their new workplace. Unfortunately , Gen Zers reported the lowest levels of positive mental health and work-life balance.”

No loyalty, no leeway

While the majority of employers say they’re open to rehiring job-hoppers, some are more hesitant, questioning the loyalty of boomerang employees.

When asked if they would be willing to rehire employees that left during the great resignation, 27% of employees said yes and that they’ve already rehired at least one former employee. Forty-three percent said yes, but they have yet to rehire, and 30% said no.

“Anecdotally, we believe that more employers than ever are open-minded to the idea of ​​”boomerang” employees returning to companies,” Williams explains. “Tight labor markets, specialized skills, time-to-performance, and knowing the quality of work expected are all cited as reasons by hiring managers. Those with hesitancy to re-hire highlight loyalty, expected compensation, and underlying suspicion of the employee’s motives .”

“Many employers either want to give or have given people their jobs back, with medium-sized businesses the most likely to have done so already. But for others, workplace loyalty seems to keep employers from welcoming them back at all. Returning employees received a 7% raise, but 38% of employers were unwilling to offer new benefits to train employees. Nearly a third of employers won’t consider giving people their jobs back, and blue-collar employers are 17% more likely than white-collar employers to feel this way.”

Turning over a new leaf

It’s natural to spend time relieving the good old days, but Williams advises workers to not dwell on the past for too long.

“Nostalgia is the enemy of growth. Be realistic and move on if your former employer won’t rehire you. Recognize your value, be confident in who you are and move forward.”

As employees figure out how to turn over a new leaf, Williams suggests “starting with a fresh perspective about what you control.”

“For example, you control having a trusted friend peer review your resume. You control making connections on LinkedIn. You control going to networking events, taking a night course to better your skills and giving yourself grace in your search.”

Williams also says that workers should try to avoid job-hopping in the future to put “stability” back on your resume, and that though things may seem bleak now, it won’t last forever.

“The great resignation changed not only the workplace but also the minds of those seeking better work opportunities. The good news is that there’s hope for job hoppers who have had a change of heart about their decision to resign. Many employers are willing to rehire people and improve their benefits, too.”

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Alphabet (GOOGL) earnings Q4 2022

Sundar Pichai, chief executive officer of Alphabet Inc., speaks during the CEO Summit of the Americas hosted by the US Chamber of Commerce in Los Angeles, California, US, on Thursday, June 9, 2022.

Kyle Grillot | Bloomberg | Getty Images

parent google Alphabet will report fourth-quarter earnings Thursday after the close of regular trading. Here’s what analysts are expecting:

  • Earnings: $1.18 per share, according to Refinitiv estimates.
  • Income: $76.53 billion, according to Refinitiv estimates.
  • YouTube advertising revenue: $8.25 billion, according to StreetAccount estimates.
  • Google Cloud income: $7.43 billion, according to StreetAccount estimates.
  • Traffic acquisition costs (TAC): $13.32 billion, according to StreetAccount estimates.

Google’s core ad business is expected to report minimal expansion from a year earlier, and growth is likely to remain in the single digits until late 2023, based on analyst estimates.

A slowing economy and competition from TikTok have hurt Google as well as digital ad rivals Snap and Facebook. Earlier this week, Snap reported weaker-than-expected revenue, while Facebook parent Meta topped estimates but still recorded a 4% decline in sales.

In January, Alphabet announced it was laying off 12,000 employees, or 6% of its workforce. The company told employees recently that more of them will be at risk for low performance ratings than in prior years.

Alphabet also cut staff in its health sciences unit Verily by 15%, citing a restructuring that will supposedly better position the business to seek financial independence.

Pressure is mounting for Google in other ways.

Artificial intelligence-based chatbot ChatGPT, launched late last year by Microsoft-backed OpenAI, is viewed as posing a risk to Google’s search engine. Executives teased that the company may introduce a similar product to the public at some point this year. CNBC reported this week that Google is internally experimenting with several potential products that could influence its search business.

In January, the US Justice Department filed its second antitrust lawsuit against Google in just over two years, this one targeting its advertising business. It marked the first federal lawsuit against Google filed during the Biden administration.

Google is now showing its willingness to invest heavily in live sports. During the fourth quarter, the company agreed to pay $2 billion per year for the next seven years for YouTube to own the exclusive rights for “NFL Sunday Ticket.”

WATCH: US Justice Department addresses antitrust litigation against Google



Ford (F) earnings Q4 2022

Ford CEO Jim Farley takes off his mask at the Ford Built for America event at Fords Dearborn Truck Plant on September 17, 2020 in Dearborn, Michigan.

Nic Antaya | Getty Images

DETROIT- Ford-Motor is set to report its fourth-quarter earnings after the bell Thursday. Here’s what Wall Street is expecting, according to Refinitiv consensus estimates:

  • Adjusted earnings per share: 62 cents
  • Automotive revenue: $40.37 trillion

In October, Ford confirmed its prior full-year guidance of adjusted earnings before interest and taxes of between $11.5 billion and $12.5 billion. Through the first three quarters of the year, its brought in $7.9 billion, led by its North American operations.

If Ford meets or exceeds Wall Street’s top- and bottom-line expectations, EPS would more than double the 26 cents it reported for the same period a year earlier. Revenue would be an increase of 14.5% from the fourth quarter of 2021.

While investors will be monitoring the fourth-quarter results for signs of any waning consumer demand or profit dilution, Ford’s 2023 guidance is expected to be more of a focus.

Wall Street expects Ford’s full-year 2023 adjusted earnings per share outlook to mark a nearly 16% decline from 2022, according to Refinitiv estimates. That’s despite forecasting full-year revenue up 3.4% year over year to more than $151 billion, signaling lower operational profit compared with recent years.

Automakers have posted record or near-record results during the coronavirus pandemic amid a tight supply of new vehicles and resilient consumer demand. But that scenario is slowly normalizing, leaving new vehicle prices and profits in flux.

On Monday, Ford cut the price of its electric Mustang Mach-E, an early sign of a burgeoning EV price war spurred by You’re here.

Earlier Thursday, Ford reported January new vehicles sales that showed slight improvement over the same period last year.

There’s pressure on Ford to deliver a strong fourth quarter and relatively solid guidance. Crosstown rival General Motors on Tuesday significantly outperformed Wall Street’s expectations. The automaker also forecast stronger-than-expected 2023 results, including adjusted earnings before interest and taxes of $10.5 billion to $12.5 billion and adjusted earnings per share of between $6 and $7.

This is breaking news. Please check back for updates.



US weekly jobless claims drop to nine-month low; productivity gains speed

  • Weekly jobless claims drop 3,000 to 183,000
  • Continuing claims decrease 11,000 to 1.655 million
  • Productivity accelerates at 3.0% rate in fourth quarter
  • Unit labor costs grow at 1.1% pace

WASHINGTON, Feb 2 (Reuters) – The number of Americans filing new claims for unemployment benefits dropped to a nine-month low last week as the labor market remains resilient despite higher borrowing costs and mounting fears of a recession this year.

The surprise decline in weekly jobless claims reported by the Labor Department on Thursday raised cautious optimism that the economy could skirt a recession or just experience a shallow and short downturn. Federal Reserve Chair Jerome Powell told reporters on Wednesday that “the economy can return to 2% inflation without a really significant downturn or a really big increase in unemployment.”

“Some day soon economists will have to take down those calls for recession in 2023 because the labor market refuses to budget from the lowest unemployment rate in decades,” said Christopher Rupkey, chief economist at FWDBONDS in New York.

Initial claims for state unemployment benefits dropped 3,000 to a seasonally adjusted 183,000 for the week ended Jan. 28, the lowest level since April 2022. It was the third straight weekly decline in applications. Economists polled by Reuters had forecast 200,000 claims for the latest week.

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Unadjusted claims slipped 872 to 224,356 last week. There were notable declines in applications in Kentucky, California and Ohio, which offset increases in Georgia and New York.

Claims have been running low this year, consistent with a persistently tight labor market. The government reported on Wednesday that there were 11 million job openings at the end of December, with 1.9 openings for every unemployed person.

“The labor market has yet to respond meaningfully to a rapid increase in interest rates,” said Rubeela Farooqi, chief US economist at High Frequency Economics in White Plains, New York.

Outside the technology industry and interest-rate sensitive sectors like housing and finance, employers have been reluctant to lay off workers after struggling to find labor during the pandemic, and also because they are optimistic economic conditions will improve later this year.

An Institute for Supply Management report on Wednesday said manufacturers “are indicating that they are not going to substantially reduce head counts as they are positive about the second half of the year.”

Stocks on Wall Street were trading higher. The dollar rose against a basket of currencies. US Treasury yields fall.


The US central bank on Wednesday raised its policy rate by 25 basis points to the 4.50%-4.75% range, and promised “ongoing increases” in borrowing costs.

The claims report showed the number of people receiving benefits after an initial week of aid, a proxy for hiring, fell 11,000 to 1.655 million during the week ending Jan. 21. That partially revised the increases logged in the prior two weeks in the so-called continuing claims.

The claims data has no bearing on January’s employment report, scheduled for release on Friday, as it falls outside the survey period. According to a Reuters poll of economists, nonfarm payrolls likely increased by 185,000 jobs last month.

The economy created 223,000 jobs in December. The unemployment rate is seen rising to 3.6% from a more than 50-year low of 3.5% in December.

The raft of layoffs in the technology sector pushed up job cuts in January. A separate report on Thursday from global outplacement firm Challenger, Gray & Christmas showed job cuts announced by US-based employers surged 136% to 102,943. That was the highest January total since 2009.

The technology sector accounted for 41% of the job cuts, with 41,829 layoffs. Retailers announced 13,000 job cuts, while financial firms planned to lay off 10,603 workers.

Jobless claims and Challenger layoffs

“It is difficult to completely square the seemingly contrasting messages from the jobless claims data and the Challenger job cuts data,” said Daniel Silver, an economist at JPMorgan in New York. “One possible explanation for the recent divergence is that people are getting laid off, but they are not filing for unemployment insurance. This may be because people are easily able to find new work or because severance payments are delaying eligibility for unemployment benefits.”

Despite labor market tightness, wage inflation is slowing and could continue doing so as a third report from the Labor Department showed worker productivity accelerating at a 3.0% annualized rate in the fourth quarter, the fastest in a year, after rising at a 1.4% pace in the third quarter.

Productivity fell at a 1.5% rate from a year ago and dropped 1.3% in 2022. But that was largely because of distortions caused by the COVID-19 pandemic. Productivity was up 5.1% from the fourth quarter of 2019.

As result, unit labor costs – the price of labor per single unit of output – increased at a 1.1% rate. That was the smallest gain since the first quarter of 2021 and followed a 2.0% pace of growth in the third quarter. Though unit labor costs rose at a 4.5% rate from a year ago, they were below their peak of 7.0% over the 12 months through the second quarter of 2022.

Labor costs and productivity

“The upshot is that, even without a rise in the unemployment rate and with job openings suspiciously resilient, the labor market no longer appears to be a significant source of inflationary pressure,” said Paul Ashworth, chief North America economist at Capital Economics in Toronto .

Reporting by Lucia Mutikani; Editing by Andrea Ricci

Our Standards: The Thomson Reuters Trust Principles.



ECB and Bank of England hike interest rates again in fight with inflation


Europe’s two largest central banks raised interest rates sharply on Thursday, opting for bigger increases than the US Federal Reserve as inflation in the region remains near historically high levels.

The European Central Bank (ECB) and the Bank of England lifted rates by another half a percentage point. Benchmark interest rates for both are at their highest levels since 2008.

Across the Atlantic, the Federal Reserve eased up on rate hikes on Wednesday, delivering just a quarter-point increase as it judged that it was making progress in its battle against inflation.

The ECB said it expected to raise interest rates further and “intended” to hike them by another half a percentage point in March. Although inflation in the 20 countries that use the euro slowed in January, at 8.5% it remains far above the bank’s 2% target.

Speaking to reporters after the announcement, ECB President Christine Lagarde noted recent steep falls in energy prices, but said the fight to tame inflation had further to go.

“Headline inflation has gone down and more so than we had expected and that many had expected,” she said. “But underlying inflation pressure is there, alive and kicking, which is why … I say we have more ground to cover and we are not done.”

UK inflation has also eased, coming in at 10.5% in December, but remains near a 41-year high.

The Bank of England has a particularly tough job on its hands: prices are rising rapidly while at the same time the United Kingdom faces a risk of recession, and rate hikes act to dampen both inflation and economic growth. On Tuesday, the International Monetary Fund forecast that the United Kingdom would be the only major economy to contract this year.

The Bank of England said UK inflation was likely to fall sharply over the rest of the year, largely as past increases in energy and other prices fell out of the calculation. But it signaled significant uncertainty over its forecast.

“The labor market remains tight and domestic price and wage pressures have been stronger than expected, suggesting risks of greater persistence in underlying inflation,” the bank said in a statement.

In addition, wholesale energy prices might boost UK inflation more than expected, it added.

On the broader UK economy, the Bank of England turned more optimistic, forecasting a 0.5% decline in output this year compared with the 1.5% contraction predicted in November. That’s broadly in line with the latest IMF forecast.

The ECB also released some details on the unwinding of its asset purchase program, reiterating that its holdings would decline by €15 billion ($16.5 billion) per month on average from March and until the end of June.



ChatGPT sets record for fastest-growing user base – analyst note

Feb 1 (Reuters) – ChatGPT, the popular chatbot from OpenAI, is estimated to have reached 100 million monthly active users in January, just two months after launch, making it the fastest-growing consumer application in history, according to a UBS study on Wednesday.

The report, citing data from analytics firm Similarweb, said an average of about 13 million unique visitors had used ChatGPT per day in January, more than double the levels of December.

“In 20 years following the internet space, we cannot recall a faster ramp in a consumer internet app,” UBS analysts wrote in the note.

It took TikTok about nine months after its global launch to reach 100 million users and Instagram 2-1/2 years, according to data from Sensor Tower.

ChatGPT can generate articles, essays, jokes and even poetry in response to prompts. OpenAI, a private company backed by Microsoft Corp (MSFT.O), made it available to the public for free in late November.

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On Thursday, OpenAI announced a $20 monthly subscription, initially for users in the United States only. It would provide a more stable and faster service as well as the opportunity to try new features first, the company said.

Analysts believe the viral launch of ChatGPT will give OpenAI a first-mover advantage against other AI companies. The growing usage, while imposing substantial computing cost on OpenAI, has also provided valuable feedback to help train the chatbot’s responses.

The company said the subscription revenue would help cover the computing cost.

Availability of the tool has raised questions about facilitation of academic dishonesty and misinformation.

Last month, Microsoft announced another multi-billion-dollar investment in OpenAI in the form of cash and provision of cloud computing.

Reporting by Krystal Hu in Toronto; Editing by Cynthia Osterman and Bradley Perrett

Our Standards: The Thomson Reuters Trust Principles.



Wall Street analysts are bullish on META, NVDA & FSLR