Tech Earnings and Bitcoin Rally | Bloomberg Technology

Tech Stocks

• Tech stocks rose after the release of the PCE inflation data, which came in line with expectations, leading to relief in the market.
• Bitcoin continued its upward trend, reaching $62,000 and approaching a new record high.
• Software and AI stocks experienced significant gains, with Okta, Duolingo, and C3 AI reporting positive earnings and subscription growth.

Snowflake

• Snowflake experienced a significant drop of 18%, on track for its biggest drop on record, due to the CEO's resignation and a lower-than-expected sales outlook.
• The change in leadership at Snowflake doesn't excite Rebecca, but she acknowledges that Frank Slootman has experience leading companies through transitions.

Paramount

• Paramount rose by 4.8% as they announced the end of the ad slump and a rebound in the advertising industry.
• Paramount's direct-to-consumer streaming business, Paramount Plus, exceeded revenue expectations, showing signs of stabilization but still facing challenges in the advertising sector.
• Paramount's linear TV business, which generates a significant portion of its revenue and profits, continues to face challenges due to cord-cutting and the shift towards streaming platforms.
• The advertising market remains a pain point for Paramount, with TV ads declining by 10%, despite potential benefits from the Super Bowl and political ad cycles.
• Paramount's streaming business loss was narrower than expected, but there is still skepticism about its profitability.
• Paramount aims to achieve domestic profitability for Paramount Plus by 2025 and has plans to cut costs and optimize content expenses.

Electronic Arts (EA)

• Electronic Arts (EA) announced plans to cut 5% of its workforce, about 670 people, due to shifting customer needs and a refocusing of the company.
• EA will also halt development on undisclosed titles and pull back on real estate holdings, moving away from licensed IP that may not be successful in the changing industry.

Cryptocurrencies

• Cryptocurrencies are experiencing a positive sentiment, with Bitcoin on track to be bought at a rate of about a million per year.
• The introduction of ETFs has been a watershed moment for cryptocurrencies, and there has been significant development in the ecosystem since the 2022 crash.
• NFT volume in December was largely driven by gaming, an area that Vance Spencer's firm focuses on.
• The crypto economy is moving beyond whale-driven markets to a more mass-market adoption.
• Inflows into crypto are expected to be around 1% to 3% of investment portfolios, bringing approximately $150 billion into the space over the next few years.
• Framework Ventures, one of the largest asset managers in crypto, has bought nine figures worth of crypto in the past two years and expects the market to become wilder as more money enters.
• Despite the recent market downturn, there is renewed interest in crypto from institutional investors, including pension funds and large endowments.
• Binance, the world's largest crypto exchange, recovered $4.4 billion worth of digital assets for users who mishandled their deposits in the past two years.

Video Game Industry

• Embracer Group, a Swedish gaming company, is selling its Saber subsidiary in a deal valued at around $500 million as part of a cost-cutting initiative.
• The video game industry is facing pressure points, with companies like Sony and EA announcing layoffs due to over-hiring during the pandemic and a decline in growth.
• Rockstar Games, the studio behind Grand Theft Auto, is requiring its employees to return to the office five days a week starting in April, sparking discussions about remote work in the gaming industry.
• Rockstar Games requires employees to return to the office five days a week due to security concerns following significant leaks of their upcoming game, Grand Theft Auto 6.
• Other tech companies, such as Grindr and Blizzard, have also implemented return-to-office policies, leading to speculation that these moves are a way to reduce the workforce through attrition rather than direct layoffs.

Apple

• Apple's iPhone 15 sales in China are experiencing an unusually prolonged slump in demand, with resellers slashing prices by up to $180.
• The weak demand for iPhones in China is attributed to various factors, including geopolitical tensions, government pressure to support domestic brands like Huawei, and the rise of powerful local rivals.
• A European chipmaker, believed to be a major supplier to Apple, has plunged in European trading after a key project related to micro OLEDs was canceled, resulting in potential charges of up to 900 million euros.

Artificial Intelligence (AI)

• Salesforce's focus on data cloud and AI adoption was highlighted as a positive move, with potential for improved efficiency and margins through self-service offerings.
• Experts discussed concerns about growth deceleration and the impact of AI on software companies, with