From AI to Robotaxis: Takeaways From Big Tech's Latest Earnings Calls

Hello from the 2024 NABJ Convention in Chicago, where thousands of Black journalists and like-minded individuals are gathering to learn and foster new connections. Although NABJ has taken over headlines this week for unexpected reasons, the organization’s brand is still strong, as it has been since its inception in 1975. Learn more about NABJ here.

A peek into today’s edition:

Key takeaways from quarterly Big Tech earnings
OpenAI rolls out Advanced Voice Mode
Apple workers in Maryland unionize

The end of July marks earnings season for the most recognized names in tech. The “Magnificent Seven” are the Big Tech companies with mega market caps and dictate broader market trends. As Apple and Amazon rounded out the reports this week, I looked at some of the bigger trends that the reports signal and consider what might be next in the coming months.

Let’s break it down:

The Self-driving Car Market is Up for Grabs

Tesla had an abysmal quarter. In its most recent report, the electric vehicle company saw revenues drop 7% and projected a troubling forecast for the remainder of the year. However, the most surprising takeaway for investors is that CEO Elon Musk signaled that it will push its unveiling event for its hotly anticipated robotaxi from August to October.

This suggested to investors that there were continued issues in developing the groundbreaking technology. Plus, Musk conceded that his past projections have been “overly optimistic” but that he “would be shocked if we cannot do it next year,” which didn’t feel wholly encouraging.

Less than a full day after the announcement, Alphabet announced that it was expanding its investment in its own self-driving technology. The company announced an additional $5 billion in Waymo. The company is making moves to expand its technology and build its availability in San Francisco, Phoenix, and LA.

AI is the Future

Nvidia stock surged after Alphabet, Meta, and Apple each highlighted the technology’s importance in their upcoming strategies. Each of the Magnificent Seven cited AI as a key part of future product development and in helping them make their businesses run more efficiently.

Mark Zuckerberg told investors that he anticipates that Meta will feature the “most-used” AI tools by the end of the calendar year. Meta boasts 3.27 billion users across Facebook, Instagram, and WhatsApp, offering a massive target audience for the new technology to take root.

However, AI hasn’t been a purely perfect strategy to this point. Facebook axed a program earlier this week, which used celebrities such as Tom Brady, Snoop Dogg, and Kendall Jenner to voice chatbots. Elsewhere, Google axed its Olympics ad that features a dad relaying how his daughter used Gemini to write a letter to her favorite sprinter after it was widely panned.

Apple’s iPhone Release Timeline is Unclear

We are eagerly awaiting the iPhone 16 drop this fall. However, CEO Tim Cook evaded a direct answer as to when customers may be able to upgrade to the newest model.

Apple is reportedly hard at work on finalizing its Apple Intelligence AI software, which the company anticipates will lead many users to cash in their upgrades this fall. That news didn’t seem to shake investors, as the company’s most recent report showed that the Macbook and iPad replaced its current shining stars, driving huge revenue numbers and outrunning predictions by more than $1.2 billion.

Temu and Shein Pose New ‘Local’ Challenges to Amazon

Among customers who quest for quickness, the disappointing Amazon quarter highlights the rise of Temu and Shein as key competitors for the online retail giant. Amazon dropped its annual outlook after a weak Q2 for revenue. Temu and Shein have expanded their reach as customers consider cheap retail options, and see the companies as cutting out an unnecessary middleman for the products made in China.

OpenAI is Sneaking up on the Magnificent Seven

While the official list of the Magnificent Seven includes Alphabet, Amazon, Apple, Microsoft, Meta, Nvidia, and Tesla, the elite bunch admits that Sam Altman‘s OpenAI is sneaking up on the biggest brands in tech. Microsoft added the company to its list of competitors in its most recent quarterly conference.

As reported last week, OpenAI’s SearchGPT is gunning to become a major competitor to Google. The AI-driven search has a leg up on past efforts, such as the ill-fated Microsoft Bing, in that it opens up the standard search to be a more dynamic process, which will lead a user to even more accurate results.

Lastly, although Netflix and Spotify exist beyond the Magnificent Seven, the two streaming giants highlight how boosting subscription prices can fuel profits. Both companies posted massive subscriber gains and stronger-than-anticipated financial performances. I anticipate we’ll see similar increases across other platforms, especially as companies like Paramount and Sirius XM have struggled to hold on to subscribers and seen some deep impacts on their bottom lines.

In Other News

Social media is fueling this year’s Olympic Games, especially in boosting the profiles of athletes in niche sports. US Women’s rugby player Ilona Maher, Brazilian skateboarder Rayssa Leal, and the Flava Flav-backed US women’s water polo team are just a few of the standout stars gaining millions of impressions. NBCUniversal is also leaning on TikTok to diversify its coverage for the first time in an effort to attract Gen Z viewers. To illustrate the popularity of TikTok and social media content surrounding the Paris Olympics, consider the following: The first five days of the 2024 Games have garnered 17x more posts containing #olympics with 521,000 than the Tokyo Olympics (29,000).
Sony has been named the official technology partner of the NFL. The expansive partnership also makes Sony the NFL’s official headphones, as the company works closely with teams to expand sports tech across the league.
OpenAI is starting to roll out its Advanced Voice Mode feature to a select group of ChatGPT Plus users, with full access expected to roll out for all ChatGPT subscribers this fall. The feature was supposed to launch in June, but that was delayed due to OpenAI’s tiff with Scarlett Johansson, who accused the AI company of stealing her voice.
DraftKings told customers in an email that it’s shutting down its NFT business, which includes an NFT marketplace and its Reignmakers collection, effective immediately. The decision comes after the sports gambling company was hit with multiple class action lawsuits for its NFT sales.
That’s not the only company scrapping offerings. The Information reported that Meta is retiring its celebrity-lookalike AI chatbots after first introducing them at Meta Connect last September. The Big Tech giant is shifting its focus to its newly announced AI Studio, where users can build, share, and discover AI characters based on their personal interests.
Cosm raised $250 million in fresh funding to expand its experiential entertainment venues to new markets. With a footprint in Atlanta, LA, and Dallas, the company’s immersive venues host live sports and experiential entertainment experiences.
Doodles, an NFT brand turned entertainment company, teamed up with Sony’s media distribution arm, The Orchard, to launch Doodles Records with a three-song EP produced by Pharrell Williams. The EP, set to drop next week, features vocals from Lil Wayne, Coi Leray, Lil Yachty, Swae Lee, and more.

Michelai’s Bet of the Week

Employees at an Apple store in Maryland have become the first to unionize in the US after striking a three-year deal with the company that includes an average 10% pay raise and more benefits. I’m going to bet that we’ll see more unionization at Apple and similar companies with storefronts in the coming years.