Welcome to "#SocialStocks," The Fly's weekly recap of Wall Street's reactions to social media stock news.
STOP THE FIGHT: Meta Platforms (META) is looking to thwart the Federal Trade Commission's moves to levy sanctions for alleged privacy infractions by asking a U.S. District Court for Washington D.C, to block a legal proceeding the FTC launched May 3, wrote Ryan Tracy for the Wall Street Journal. "The Consent Order is clear that only the federal court, not the FTC, can enforce or modify it," said Meta spokesperson Dina El-Kassaby Luce, according to the WSJ.
AI TAKEOVER: "Snapping is the way our community stays in touch with their friends and family, creating over 55,000 Snaps every second on average. Now, when Snapchat+ subscribers are chatting with My AI, they can send it Snaps of what they're up to and receive a unique generative Snap back that keeps the conversation going! Since launch, Snapchatters have been using My AI as a tool for creativity to learn more about the world, and ask about movies, sports, video games, or even what to wear to prom. Snap My AI a picture of your pizza, OOTD, or even your furry best friend, and My AI may respond with a Snap back in reaction to what you're doing. So, if you Snap My AI your latest grocery haul, it might recommend a recipe! Like all messages shared with My AI, Snaps will be stored and may be used to improve the product experience. While it was designed to avoid biased, incorrect, harmful, or misleading information, mistakes may occur, so please do not rely on it for advice, and let us know if you have any feedback. We look forward to hearing about your experience with My AI. Happy Snapping, Snapchat+ subscribers!," said Snap (SNAP) in a statement.
NEW CFO: Pinterest (PINS) is announcing that Julia Brau Donnelly will be joining the company as CFO. She'll be joining as a member of Pinterest's executive team and report directly to CEO, Bill Ready. As CFO at Pinterest, Julia will be responsible for financial management of the company, including leading the accounting, finance, internal audit, investor relations and workplace teams.
FIGHT FOR FIRST: Nvidia (NVDA) announced a new class of large-memory AI supercomputer - an NVIDIA DGX supercomputer powered by NVIDIA GH200 Grace Hopper Superchips and the NVIDIA NVLink Switch System - created to enable the development of giant, next-generation models for generative AI language applications, recommender systems and data analytics workloads. Google Cloud (GOOGL), Meta and Microsoft (MSFT) are among the first expected to gain access to the DGX GH200 to explore its capabilities for generative AI workloads.
END IN SIGHT?: Meta employees received news of the final round of previously announced job cuts and staff are hoping this will be an end to the layoffs, Alex Barinka, Aisha Counts, and Sarah Frier of Bloomberg reported. The layoffs complete most of the restructuring CEO Mark Zuckerberg announced in March to eliminate 10,000 positions. Meta has claimed the layoffs were necessary to improve efficiency after over-hiring during the pandemic.
ANALYST COMMENTARY: JPMorgan analyst Harlan Sur says primary research indicates Broadcom's (AVGO) custom chip business has continued to see accelerating orders from Google for its advanced artificial intelligence processor chip called TPU. Google is currently ramping its fifth generation TPU artificial intelligence processor into its datacenters and recent orders to Broadcom for TPU chips have increased substantially for shipments through next year, the analyst tells investors in a research note. The firm believes the recent order acceleration implies that Google's TPU processor program alone could drive $3B-plus in revenue for Broadcom and upside to management's cloud revenue target. In addition, JPMorgan believes that Meta Platforms (META) will emerge as Broadcom's next $1B per year cloud chip customer over the next two years.