Latest news with #AI-fueled
Business Insider
16 hours ago
- Business
- Business Insider
Microsoft (MSFT) Layoffs Expand a Major AI Trend
Microsoft (MSFT) will reportedly cut thousands of jobs soon as it looks to reduce its sales team. This comes as the company embraces artificial intelligence (AI), which allows it to offload some responsibilities of workers to AI. The tech giant has also made huge advancements in AI, pledging $80 billion to the sector this year. Confident Investing Starts Here: With its huge investments in AI, Microsoft needs to show investors that its spending is worth something. While it's already using its data centers to increase growing AI demand, utilizing the technology to enhance the efficiency of its operations is another way to show the product of its investment. The latest Microsoft job cuts aren't the only ones it has announced recently. Just last month it laid off 6,000 workers, 3% of its workforce, to streamline organizational layers and boost efficiency. The AI Revolution Strikes the Workforce It's not just Microsoft that is laying off workers with the help of AI. Amazon (AMZN) CEO Andy Jassy said the company will experience a 'total corporate workforce' reduction due to 'efficiency gains from using AI extensively.' Other recent and upcoming Silicon Valley layoffs include: Meta Platforms (META) laid off 3,600 employees in February. Alphabet's (GOOGL) Google cut hundreds of jobs that same month, with rumors of 24,000 cuts being made in 2025. Intel (INTC) reportedly plans to reduce its workforce by more than 10,000 employees this year, following 17,500 cuts in 2024. What Jobs Will AI Come for Next? Silicon Valley inhabitants aren't the only ones threatened by AI-fueled layoffs. A report from McKinsey Global Institute highlights other industries and roles that will be affected by AI over the next five years. It expects support roles to drop 18% by 2030 compared to 2022, sales positions to decrease 13%, a 2% reduction in food service roles, and a 1% decrease in manufacturing jobs. Do AI Layoffs Affect Analyst Ratings? If they do, it's in favor of the companies making them. AI layoffs can reduce payroll spending while cutting layers of management, making companies quicker to react to market and economic trends while saving money. Of the companies mentioned above, all but Intel have consensus Strong Buy ratings. Alphabet's upside potential is the highest at 14.88%, with Amazon right on its heels at 13.7%. INTC lacks behind its tech peers with a consensus Hold rating and possible 0.88% downside.
Yahoo
3 days ago
- Business
- Yahoo
Wall Street Can't Ignore This: China's Biotech Stocks Are Exploding--One Is Up 283%
China's biotech sector is on a tear. The Hang Seng Biotech Index has climbed over 60% since Januaryhandily beating China tech's AI-fueled rallythanks to a wave of billion-dollar licensing deals and red-hot IPOs. Pfizer said last month it will pay up to $1.25 billion to license an experimental cancer drug from 3SBio (TRSBF) and invest another $100 million in the firm's stock. Just weeks later, Bristol-Myers Squibb inked a deal worth up to $11.5 billion for a cancer therapy originally licensed by Germany's BioNTech from China's Biotheus. Those two deals alone have ignited a frenzy. 3SBio shares have soared 283% year-to-date. RemeGen, another licensing contender, is up 270% as of June. Investors aren't just chasing dealsthey're also buying into the IPO pipeline. Duality Biotherapeutics, which focuses on cancer immunotherapies, more than doubled on its first day of trading in April and has since gained 189%. Jiangsu Hengrui, China's biggest drugmaker by market value, surged 25% on debut in May. Even more striking? The pace of dealmaking. M&A involving Chinese biotech firms hit $36.9 billion in Q1more than half of global totals. Chinese biotech is having its own DeepSeek moment, said Dong Chen, chief Asia strategist at Pictet Wealth Management, referencing the AI boom that fueled Chinese tech earlier this year. Still, not everyone's chasing the highs. Some healthcare-focused funds are rotating out, preferring stable compounders with steady dividends. Others see the recent mega-deals as one-offs, and aren't ready to assign premium multiples just yet. But even with macro headwinds, analysts like those at Jefferies remain optimistic. Many Chinese biotech firms already operate as partners to U.S. drugmakers, not exportersmeaning tariffs may have limited impact. And with top scientific talent returning home amid geopolitical tensions, R&D momentum could accelerate. In short: China's biotech surge might still be in the early innings. This article first appeared on GuruFocus.
Yahoo
3 days ago
- Business
- Yahoo
Wall Street Can't Ignore This: China's Biotech Stocks Are Exploding--One Is Up 283%
China's biotech sector is on a tear. The Hang Seng Biotech Index has climbed over 60% since Januaryhandily beating China tech's AI-fueled rallythanks to a wave of billion-dollar licensing deals and red-hot IPOs. Pfizer said last month it will pay up to $1.25 billion to license an experimental cancer drug from 3SBio (TRSBF) and invest another $100 million in the firm's stock. Just weeks later, Bristol-Myers Squibb inked a deal worth up to $11.5 billion for a cancer therapy originally licensed by Germany's BioNTech from China's Biotheus. Those two deals alone have ignited a frenzy. 3SBio shares have soared 283% year-to-date. RemeGen, another licensing contender, is up 270% as of June. Investors aren't just chasing dealsthey're also buying into the IPO pipeline. Duality Biotherapeutics, which focuses on cancer immunotherapies, more than doubled on its first day of trading in April and has since gained 189%. Jiangsu Hengrui, China's biggest drugmaker by market value, surged 25% on debut in May. Even more striking? The pace of dealmaking. M&A involving Chinese biotech firms hit $36.9 billion in Q1more than half of global totals. Chinese biotech is having its own DeepSeek moment, said Dong Chen, chief Asia strategist at Pictet Wealth Management, referencing the AI boom that fueled Chinese tech earlier this year. Still, not everyone's chasing the highs. Some healthcare-focused funds are rotating out, preferring stable compounders with steady dividends. Others see the recent mega-deals as one-offs, and aren't ready to assign premium multiples just yet. But even with macro headwinds, analysts like those at Jefferies remain optimistic. Many Chinese biotech firms already operate as partners to U.S. drugmakers, not exportersmeaning tariffs may have limited impact. And with top scientific talent returning home amid geopolitical tensions, R&D momentum could accelerate. In short: China's biotech surge might still be in the early innings. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Miami Herald
3 days ago
- Business
- Miami Herald
Inside the mind of today's bank customer: Consumer survey insights
Inside the mind of today's bank customer: Consumer survey insights If you're curious about how your banking style compares to that of other Americans, you're in the right place. Here, SoFi shares the results of its survey of 500 U.S. banking clients ages 18 and over, conducted in April 2024, and see how your habits in terms of savings, checking account balances, AI adoption, and more, measure up. You can also gain important insights about how to make your cash work even harder for you. Key findings Almost 4 out of 10 people monitor their money daily. Prepare for more surprises as you check out these highlights of SoFi's How People Bank Today survey. 68% of respondents report having either one or two checking or savings accounts, including those of which they are joint those with at least one account, 77% said they used their savings account for emergencies.45% have less than $500 set aside for an emergency fund.31% deposit money in their accounts (including direct deposit) a few times a month.38% check their bank account balances daily, which can be more often than the typically advised pace for monitoring your bank account.48% use online banking daily. Almost 1 in 4 (23%) use budgeting tools provided by their bank.54% of those who have knowingly used AI-fueled tools when banking report doing so to track their credit score. Banking habits and preferences Many people have multiple bank accounts to manage, and they keep close tabs on their funds, SoFi's data shows. They also know the importance of savings, especially for emergencies. So how much money do they have in their accounts? And how often do they make deposits? The How People Bank Today survey has the answers. 68% hold 1 to 2 checking or savings accounts Of the survey takers, two-thirds had one or two checking or savings accounts. Specifically, 37% had one, and 31% had two. These results may include joint accounts that they co-hold with another person. Beyond that, 11% said they had three checking or savings accounts, and 9% had four. That means 1 in 5 people could be wrangling three or more accounts. While that may seem as if it's a lot to manage, there can be a benefit to having multiple bank accounts. For instance, if you have a side hustle, you might want your earnings and expenses to be funneled through a dedicated checking account. Of people with at least one account, 88% had a checking account, and 71% held a savings account. In terms of savings accounts, you might want to have one for your emergency fund, one for savings for a down payment on a house, and one for money you're accumulating for that trip to Africa you've been dreaming of. Keeping each separate can help you track your cash and see how your balance in each one is growing. Tip: Look for a high-yield savings account to get a favorable interest rate; online banks typically offer these with low (or no) fees. Most use savings for emergencies, but nearly half have $500 or less Having an emergency savings account is typically considered a critical element of financial stability. Many financial professionals advise having at least three to six months' worth of basic living expenses in the bank. Your emergency fund could be tapped when a major medical, dental, or car repair bill unexpectedly hits, or if you were to lose your job and needed to cover your daily expenses. However, according to SoFi's survey, most people are falling short of the standard emergency fund goal. The data revealed that of those with an emergency fund: One way to grow an emergency fund can be to set up recurring automatic transfers between bank accounts, with money flowing on payday from checking into savings. Even if you only move, say, $25 per pay period, that's a solid step toward building a cash cushion. Wondering how much you should put toward your emergency fund? An online emergency fund calculator can help you do the math. 31% deposit money a few times a month How frequently do most people deposit money into their account? Given the prevalence of direct deposit (about 92% of Americans are paid that way, according to PayrollOrg), many people make deposits on payday, which is often twice a month. But in this era of the gig economy, with people commonly having multiple income streams, it seems that cash goes into bank accounts more often than you might expect. 82% of people check their bank balances weekly or more Technology, including ATMs, banking apps and websites, certainly makes it easier to keep tabs on your money, and many people are doing just that. Here's how often survey respondents are taking a peek at their bank account balances. The right amount of monitoring will vary with an individual's needs. Those who are actively saving toward a goal, like accumulating enough cash for a down payment on a property, may want to check in more often than someone who, say, bought a house a few years ago. Most people visit a bank branch monthly Some people bank at traditional rather than online banks, but digital-only banks have made considerable inroads in recent years. One key difference involves accessing physical branches, since online banks don't have any, which may enable them to reduce fees and offer higher interest rates. SoFi was curious about how often bank branch visits occur. The survey revealed that 27% of respondents say they visit a physical bank branch once a month, 21% said they visit multiple times monthly, 23% visit rarely, 18% visit a few times annually, and 10% say they never visit a branch since their bank doesn't have any. The role of technology in banking The times in which we live and ever-advancing technology are changing the way people bank. SoFi's survey uncovered these surprising findings about the role of automation, cybersecurity, and AI. 48% use online banking daily for balances, transfers, and deposits Almost half (48%) of survey takers said they typically use online banking every single day, whether to check their balance, transfer funds, or make a deposit (with the convenience of mobile deposit). Talk about staying on top of your finances! Another 26% said they usually bank online a few times a week, 7% said they access these services once a week, and 13% said they did so a few times a month. That leaves 6% who said they rarely or never used online banking services. 42% express worry about online banking security Online and in-app banking appeal to many people for their convenience and other benefits, but some people have concerns, as well. When it comes to online banking, one of the biggest concerns is security, with 42% of SoFi survey participants worrying about this facet. Rounding out the responses, 29% described themselves as neutral about safety risks, and another 29% said they weren't worried by this aspect of online banking. Typically, online or mobile banking is safe, but it can be wise to practice such habits as not replying to text messages or emails alleging there is a problem with your bank account, and not clicking on any links within those messages. Instead, consider going to your financial institution's website (or phoning customer service) directly to see if an issue has cropped up. Also, avoid accessing public Wi-Fi for online banking, and only use unique, strong passwords for your accounts as well as multifactor identification to help protect your money and avoid identity theft. Most people skip budgeting apps, but 23% use their bank's tool There are many different types of budgeting methods out there, and digital money management tools are continuing to evolve to meet individual needs. Granted, 57% of survey participants disclosed that they don't use budgeting apps, but of those who do, 23% utilize tools provided by their bank. Often, these budgeting trackers and tools can be integrated in a way that makes monitoring and tweaking one's financial habits simple and seamless. It can be a good first step for those wanting to see where their money goes. There are also an array of third-party apps available. 80% haven't used AI for personal finance Artificial intelligence is making inroads into the way people bank today and tomorrow through such advances as automation and customization. That said, 80% of SoFi's survey respondents indicated that they hadn't knowingly used AI for personal finance. Of the 2 out of 10 people who have used it, here's how they tapped the power of AI. Switching banks and top features customers want Sometimes, people need to switch banks to find a better fit. It's a competitive field, and each individual's personal finance needs are unique. Here's what the SoFi survey discovered consumers are seeking from their banking partner. Better online banking drives 34% of bank switchers More than half (55%) of the survey respondents said they had switched banks in the past. What drove them to uproot their accounts? The reasons are quite varied. Monthly fees and overdraft protection were the top checking account features It may be no surprise that fee-free services are a main draw for people when choosing a bank. Some of the top features respondents look for when choosing a checking account include no monthly fees (66%), low minimum balance requirements (45%), and ATM fee reimbursements (38%). In addition, 57% of respondents said overdraft protection is an important feature in a checking account. The takeaway The way people bank today is undergoing some fundamental changes. According to key findings from SoFi's survey of 500 respondents ages 18 and older, 2 out of 3 people have one or two checking or savings accounts, and 77% use their savings account for an emergency fund. However, many have $500 or less in the bank. Habits are shifting as well. Customer visits to bank branches often only occur once a month, while tech adoption - online and mobile banking and, increasingly, AI-powered tools - is growing. This story was produced by SoFi and reviewed and distributed by Stacker. © Stacker Media, LLC.
Yahoo
3 days ago
- Business
- Yahoo
Oracle's $116 Billion Surge Leaves Little Room for Error on AI
(Bloomberg) -- Oracle Corp. investors find themselves at a pivotal crossroads. Either heed the warning from a growing list of indicators that suggest the stock has run up too far, too fast — or continue to chase another rally that's been supercharged by lofty artificial intelligence expectations. Security Concerns Hit Some of the World's 'Most Livable Cities' As Part of a $45 Billion Push, ICE Prepares for a Vast Expansion of Detention Space As American Architects Gather in Boston, Retrofits Are All the Rage How E-Scooters Conquered (Most of) Europe Shares of the software maker have soared 75% from April's low, including their best two-day gain since 2001 after its earnings report last week showed AI-fueled revenue growth is gaining steam. However, that's left the stock trading at it most overbought level in 25 years and at its steepest valuation in more than two decades. And there are signs investors may already be balking. Oracle shares fell nearly 1% in premarket trading Tuesday as the Israel-Iran conflict drags on. That follows a nearly 2% decline on Monday, a day that saw the broader Nasdaq 100 Index rally 1.4%. Last week's $116 billion rally has shifted the focus to Oracle's execution, according to Dan Morgan, senior portfolio manager at Synovus Trust. Its growth opportunity from AI reminds Morgan of Microsoft Corp.'s push into cloud computing in the last decade or even Nvidia Corp.'s data center business in 2023. 'That could end up being too optimistic, but I think Oracle is in its teenager phase, not yet mature,' Morgan said. 'We could maybe look back on this quarter as the moment we all realized how much more there is to come.' Oracle is best known for its database software but has been investing aggressively in its cloud-computing business. That spending appears to be paying off as the company predicted 'dramatically higher' revenue growth for its upcoming fiscal year amid strong demand for AI-related services. Analysts expect that growth rate to be about 16%, up from 8.4% in fiscal 2025, which ended last month, according to data compiled by Bloomberg. Net income, meanwhile, is expected to rise 15% in fiscal 2026, and expansion in both metrics is projected to accelerate in fiscal 2027. While Oracle's market share within cloud computing remains below that of bigger players like Inc., Microsoft, and Alphabet Inc., the results were the latest example of the company's growing strength in AI. Earlier this year, it entered into a joint venture to provide OpenAI with computing power. 'AI represents the first material avenue for growth Oracle has seen in a long time, and it comes after a decade where the Street looked at Oracle as a company struggling to find new avenues of growth,' said Stephen Bersey, head of technology research at HSBC. 'Transitioning from a company growing in the mid-single digits to one where annual growth should be in the teens going forward deserves a different kind of valuation profile.' Still, the growth expectations have lagged the explosive move by Oracle's stock price, causing its price-to-earnings ratio to balloon. At 31 times profits projected over the next 12 months, Oracle shares are priced at the highest since 2002 and nearly twice the stock's average valuation over the past decade, according to data compiled by Bloomberg. 'Although the multiple may be high, the growth warrants that, and given the growth outlook, we still think it looks attractive,' HSBC's Bersey said. 'Oracle is very well positioned for AI, and I expect AI demand will remain robust for the foreseeable future.' Top Tech Stories SoftBank Group Corp. raised around $4.8 billion through a sale of T-Mobile US Inc. shares, a move that helps fund the Japanese company's grandiose plans for artificial intelligence. Scale AI co-founder Alexandr Wang is such an enthusiastic networker that his former roommate — OpenAI Chief Executive Officer Sam Altman — once jokingly told him to tone it down a bit. OpenAI has won a $200 million contract for a pilot program aimed at helping the US Defense Department determine how it could use artificial intelligence for a range of administrative and security tasks. The Senate's draft tax bill calls for increasing an investment credit for semiconductor manufacturers, a potential boon for chipmakers that the Trump administration is urging to increase the size of their US projects. Meta Platforms Inc. will begin showing ads inside of its WhatsApp messaging service, opening a new potential revenue stream while the company invests heavily in artificial intelligence and other long-term projects. Earnings Due Tuesday Earnings Premarket: Jabil Inc. (JBL US) John Wiley & Sons Inc. (WLY US) Ken Griffin on Trump, Harvard and Why Novice Investors Won't Beat the Pros How a Tiny Middleman Could Access Two-Factor Login Codes From Tech Giants American Mid: Hampton Inn's Good-Enough Formula for World Domination The Spying Scandal Rocking the World of HR Software US Allies and Adversaries Are Dodging Trump's Tariff Threats ©2025 Bloomberg L.P. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
