Technology Morning Post | Musk’s $44 billion takeover of Twitter, the value of large U.S. technology stocks plunges

Reporter | Li Jingya

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Large U.S. tech stocks suffered bloodbath, Apple survived

Hundreds of billions of dollars have been wiped off the market value of major U.S. tech companies this week, while Apple has bucked the trend thanks to its resilience.

On Friday, Apple closed up 7.6%, its biggest one-day gain since July 2020, and its market value is expected to exceed $2.5 trillion. In contrast, other large U.S. technology stocks suffered a “bloodbath” this week: Meta fell 23.72%, Amazon fell 13.33%, Google’s parent company Alphabet fell 4.81%, Microsoft fell 2.58%, and Apple rose 5.75% , Tesla has risen by about 6.53%, only social media Snap has risen by about 30.03%, generally recovering the lost ground since the release of the results report last week.

Statistics show that after the five major U.S. technology companies Google, Microsoft, Meta, Apple, and Amazon announced their quarterly earnings this week, their total market value has evaporated by nearly $800 billion from before the earnings report.

Musk’s $44 billion takeover of Twitter, the original CEO was fired on the spot

On October 27, local time, Reuters quoted people familiar with the matter as saying that Tesla CEO Elon Musk has completed a $44 billion acquisition transaction and has now taken over Twitter. After completing the acquisition of Twitter to live up to expectations, Musk posted on his personal Twitter account: “The bird is free.” (The blue bird is Twitter’s logo) The day before, Musk had smiled and hugged the washbasin Walked into Twitter’s headquarters in San Francisco, USA.

After joining Twitter, Musk fired a number of executives immediately, and Twitter CEO Parag Agrawal was fired on the spot. Also fired were Chief Financial Officer (CFO) Ned Segal, who joined Twitter in 2017, and Sean Edgett, the company’s general counsel. In fact, Twitter’s former executives have undergone a major adjustment.

In addition, it is reported that Musk has told potential investors that he plans to lay off 75% of Twitter’s staff, but Musk himself denied the news.

According to Bloomberg, citing sources, after completing the acquisition, Musk plans to serve as Twitter’s chief executive officer (CEO) and make changes to some of Twitter’s ban. Musk intends to lift the permanent ban on Twitter users, people familiar with the matter said.

Kuaishou restores Tmall external chain

On October 28, it was reported that Taobao and Kuaishou will resume external chain cooperation from 0:00 on October 28, 2022. Jiemian News learned from the Kuaishou customer service that at present, merchants can only use the links of Tmall and JD’s self-operated products in Kuaishou, and cannot use Taobao links. Moreover, the time for merchants to use the Tmall link in Kuaishou Xiaohuangche is from October 28 to December 31, 2022, and the time range for using the Jingdong link is from October 28 to November 30.

As for the expiration of the cooperation, merchants can continue to use Tmall and in Kuaishou. Kuaishou customer service said that there is no information in this regard for the time being. According to another person familiar with the matter, Kuaishou’s restoration of the Tmall external chain is only for short-term cooperation, and it is difficult to say long-term cooperation. 

As of press time, neither Kuaishou nor Alibaba officials responded to the above news.

Intel’s net profit fell 85% in the third quarter, and it will cut costs by $10 billion in the next three years

After the U.S. stock market closed on October 27, Intel announced its financial results for the third quarter of fiscal 2022. According to the report, Intel’s third-quarter revenue was $15.338 billion, down 20% from $19.192 billion in the same period last year; net profit was $1.019 billion, down 85% from $6.823 billion in the same period last year. Among them, revenue from Intel’s Client Computing Group, which sells personal computer (PC) chips, fell 17% year-on-year to $8.12 billion due to lower demand for personal computers.

Intel CEO Pat Kissinger said on an earnings call that economic uncertainty is expected to continue into 2023. Intel said the company is working to achieve $3 billion in cost reductions in 2023, increasing annualized cost reductions and efficiency gains to $8 billion to $10 billion by the end of 2025. Kissinger said the moves will affect headcount.

The three major operators earned 476 million yuan a day in the first three quarters

After China Unicom disclosed the third quarter report for 2022 on October 28, the three quarterly reports of the three major telecom operators have been disclosed.

Public data shows that in the first three quarters of this year, China Mobile’s net profit was 98.5 billion yuan, a year-on-year increase of 13.3%; China Telecom’s net profit was 24.543 billion yuan, an increase of 5.2% compared with the same period last year; China Unicom’s net profit was 6.83 billion yuan, a year-on-year increase of 5.2%. It rose 20.4% over the same period. Based on the 273 days in the first three quarters of 2022, the three major operators achieved an average daily operating income of 4.928 billion yuan in the first three quarters of this year, and an average daily profit of 476 million yuan.

Hikvision’s third-quarter net profit was 3.08 billion yuan, a year-on-year decline widening

On the afternoon of October 28, the security leader Hikvision announced its third-quarter financial report, showing that the company achieved operating income of 22.464 billion yuan in the third quarter, a year-on-year increase of 3.39%; net profit attributable to the parent was 3.08 billion yuan, a year-on-year decrease of 31.29%; The net profit attributable to the parent was 2.88 billion yuan, a year-on-year decrease of 35.61%, and the basic earnings per share was 0.331 yuan.

Hikvision’s third-quarter net profit fell year-on-year. Previously, due to the impact of the epidemic, the increase in costs caused by the shortage of upstream stocks and price increases, and the impact of tightening competition caused by the decline in the industry’s prosperity, the net profit announced by Hikvision this time fell by 11% year-on-year. % of the semi-annual results, the first decline in performance since the listing.