Markets Defused aims to give an easy-to-understand and straightforward recap of the day’s most engaging business and stock market news.
- Apple’s AI unveiling ‘did not disappoint’
- OpenAI “excited” as it confirms Apple partnership
- Apple is finally putting its AI in the spotlight
- Investors can buy Nvidia shares for only $120
- Tesla countdown to Musk pay vote
- Krispy Kreme stock sugar rush
- BP bosses face summer of love disclosures
Apple’s AI unveiling ‘did not disappoint’, but market reaction was tepid
Apple Inc (NASDAQ:AAPL, ETR:APC) chief executive Tim Cook delivered a “flex the muscles moment" as the company kicked off its AI-dominated Worldwide Developers Conference (WWDC) in California – albeit, the stock market’s reaction was not yet exuberant.
In Monday’s afterhours dealing, Apple stock was down 0.4% at $192.40.
Cook, with his keynote speech, ushered in what the company is calling “Apple Intelligence” – a packaged, wrapped-up, and branded version of AI that appears with the customary Apple marketing.
Apple Intelligence essentially comprises a suite of AI tools and capabilities that’s being rolled into the Mac, iPhone, and iPad, plus the Siri personal assistant tech as well as Apple’s other devices.
It will be supported by new in-house AI microchips.
Also, central to the proposition appears to be the new partnership with ChatGPT creator OpenAI, which was formally confirmed amidst the conference.
The initial analyst reaction was immediately bullish.
“Apple unveiled multiple new software enhancements in another ‘flex the muscles moment’ for Cook & Co. heading into a robust product cycle into the next 6-9 months led by the iPhone 16 launch later this Fall into its massive installed base,” Wedbush analyst Dan Ives said in a note.
OpenAI “excited” as it confirms Apple partnership and strengths management team
OpenAI is set to power Apple Inc (NASDAQ:AAPL, ETR:APC) new suite of AI services, integrating ChatGPT across iPhones, iPads and Macs.
Today, at Apple’s Worldwide Developer Conference 2024 (WWDC24), the much-speculated new partnership was confirmed.
It is intended that the integration will allow users to access ChatGPT’s capabilities, including image and document understanding, without needing to switch between tools.
Siri, Apple’s voice-interacting ‘personal assistant’, will soon be enhanced using ChatGPT AI models.
"We're excited to partner with Apple to bring ChatGPT to their users in a new way,” OpenAI chief executive Sam Altman said in a statement.
“Apple shares our commitment to safety and innovation, and this partnership aligns with OpenAI's mission to make advanced AI accessible to everyone.
“Together with Apple, we're making it easier for people to benefit from what AI can offer."
Apple is finally putting its AI in the spotlight
Apple Inc (NASDAQ:AAPL, ETR:APC) today kicks off what is predicted to be a five-day AI extravaganza.
In AI, Apple could yet land a real “slow mover’s advantage”.
Microsoft, Apple’s rival in the home computer tech arms race of the nineties, and Google, Apple’s rival in the mobile tech arms race of the noughties, have both moved faster to set out their stalls in the newly emerging AI era.
Now, Apple is expected to use this year’s annual developer’s conference – the World Wide Developer Conference (WWDC) to give the tech developer community its vision for AI, along with its planned integrations across the Apple suite of hardware and software.
WWDC 2024 is a five-day event, beginning today (10 June) running through to Friday (14 June).
Today, chief executive will deliver the event’s keynote speech.
WWDC24 will be Apple’s “biggest event in over decade”, according West Coast stockbroker Wedbush.
“We believe will kick off an AI driven accelerated growth cycle on the iPhone and Services that will be the narrative of the Apple story for the coming years.
Investors can now buy Nvidia shares for only $120 each
No, NVIDIA Corp (NASDAQ:NVDA, ETR:NVD) shares are not down 90% in Monday’s deals.
Today, the chipmaker’s shares began trading for the first time in New York following Friday’s 10-for-1 stock split.
The capital reorganisation was designed to make the stock, previously priced above $1,200 per share, more accessible, not just for retail investors but also for Nvidia’s employees.
Nvidia's rapid growth had previously made its shares too expensive for some investors.
The stock split was announced last month when Nvidia reported a remarkable 262% increase in quarterly revenue compared to the same period last year, generating around $26 billion in three months.
Revenue from data centers reached a record $22.56 billion, driven by strong AI chip sales. Gaming revenue was $2.65 billion, up 18% year-over-year but down 8% from the previous quarter due to a decline in laptop GPU sales. Adjusted earnings per share (EPS) soared 629% to $6.12, surpassing Wall Street's expectation of $5.65.
Nvidia's market valuation has now exceeded $3 trillion, placing it alongside Microsoft and Apple as one of only three public companies to achieve this mark.
Tesla shareholders countdown to Musk pay vote, not all are supportive
Tesla Inc (NASDAQ:TSLA) chief Elon Musk only has a few days of uncertainty remaining over his $56 billion pay deal, with a ‘revote’ taking place on Thursday – though news from Norway is, in his words, “not cool”.
Shareholders will be asked to vote on the previously in-place pay deal at the Thursday’s AGM, and, meanwhile, an independent shareholders advisor and one of Tesla’s larger shareholder’s have indicated they are against the package.
Norway’s wealth fund, a state-backed investment firm seeded by the country’s North Sea oil proceeds, owns just under 1% of Tesla’s equity – worth over $7 billion, and it has publicly stated its concerns over the size of the award, performance triggers, dilution, and lack of key person risk mitigation.
It comes after proxy advisor Glass Lewis recommended that Tesla shareholders should vote against the proposals.
Now, burying the lead somewhat, both the Norwegian fund and the proxy advisor took a similar stance previously, going against the original 2018 award which was backed by Tesla shareholders.
Back then, Musk secured the vote with 66% worth of shareholders approving his pay package.
Six-years later, shareholder sentiments will be retested on Thursday.
Krispy Kreme stock sugar rush as analyst tips upside
Krispy Kreme Doughnuts Inc (NASDAQ:DNUT) stock saw something of a sugar rush on Monday as the market reacted to claims, by one analyst team, that the doughnut firm’s deal is being underestimated by investors.
Truist Securities analysts reckon Krispy Kreme should be worth $15 per share, upgraded from $13, and the new target suggests some 33% upside to the current price around $11.00.
The tie-up is expected to see Krispy Kreme stocked in 12,000 McDonald's locations by the end of 2026 and it promises to be worth $320 million of revenue per year, starting in year-one.
Truist tipped Krispy Kreme to become a significantly larger ‘nationwide’ brand in the United States, whilst noting that it had previously been scarcely available in certain parts of America.
It echoes comments, in March, from Krispy Kreme chief executive Josh Charlesworth.
“The top request we receive from consumers, every day, is, ‘please bring Krispy Kreme to my town.’ Partnering with McDonald’s on a national scale will provide our fans and doughnut lovers unprecedented daily access to fresh doughnuts and the joy that is Krispy Kreme,” Charlesworth said.
Krispy Kreme is among a number of snack-food stocks to have been put on the back foot by investors, spooked by the potential future impact of satiety-boosting ‘weight loss’ drugs like Ozempic and Wegovy.
In 2024 to date, Krispy Kreme stock is down just over 23%.
Today, meanwhile, it traded on the front foot – up 6.4% to change hands at $11.31 per share.
BP bosses face summer of love disclosures
BP PLC (LSE:BP.) has reportedly implemented stricter regulations on workplace relationships, as it revises HR rules following the dismissal of former CEO Bernard Looney for not disclosing relationships with colleagues.
Senior managers at BP are now required to report any intimate relationships that have occurred within the past three years, and, failure to comply with these new rules may result in disciplinary action.
A BP spokesperson noted, via press reports, that the updated approach is backed by “benchmarking” with comparable companies and organisations and review of good industry practice.
Around 4,500 managers have been asked to disclose any reportable relationships by September 1, regardless of whether they believe these relationships pose a conflict of interest.
The former CEO, Bernard Looney, resigned last September and subsequently he ‘lost’ a £32 million remuneration package.