Top Stories Wednesday, May 31: Twitter Algorithm Changes Show Disturbing Impact, Uber One’s Subscription Changes, More Layoffs at Goldman Sachs - Advance Auto Parts (NYSE:AAP), Apple (NASDAQ:AAPL), Boeing (NYSE:BA), Baidu (NASDAQ:BIDU)

Benzinga

Advance Auto Parts Stock Gets Hammered After Q1 Earnings: Here’s Why

Advance Auto Parts Inc (NYSE: AAP) shares are plunging Wednesday morning as its first-quarter results missed expectations. The company also reduced its full-year guidance and decided to reduce its quarterly dividend.
AAP reported first-quarter FY23 sales growth of 1.3% year-on-year to $3.42 billion, missing the analyst consensus estimate of $3.43 billion.
The revenue increase was driven by new store openings and was offset by a decline of comparable store sales of 0.4%.

Prudential’s Executive Shuffle: Ben Bulmer Takes Reins as CFO Amid Conduct Investigation

Prudential PLC (NYSE:PUK) announced the appointment of Ben Bulmer as chief financial officer.
Bulmer will succeed James Turner, who resigned today from the post and will be available for four months to support a smooth transition.
Turner is leaving the company following an investigation into a Code of Conduct issue related to a recent recruitment situation.

Toyota Discloses Yet Another Customer Data Security Breach

Today, Toyota Motor Corp (NYSE:TM) released a statement cautioning against the risk of data leaks of customers in Asia and Oceania (excluding Japan).
Toyota alerted that consumer information such as name, phone number, email ID, addresses, vehicle identification and registration numbers may have been accessible externally from October 2016 to May 2023.
The company assures customers’ vehicle location and credit card information data are not included in the incident.

Blame It On Musk? Research Exposes Disturbing Impact Of Twitter Algorithm Changes

New research revealed concerning findings about the impact of Elon Musk’s Twitter algorithm changes, reportedly amplifying anger and animosity among users, particularly towards those with opposing views.
Musk’s Twitter algorithm changes have come under scrutiny as researchers from Cornell University and UC Berkeley uncovered troubling consequences, revealing that the platform now prioritizes emotionally charged tweets that fuel anger and animosity, ultimately leading to increased polarization among users with opposing views.
According to the researchers, the study was a controlled experiment, which did not involve internal access as they relied on participants who willingly provided access to their tweets through the online crowd-working platform CloudResearch Connect.

Reuters

Boeing Increases 787 Dreamliner Production Rate To Four Per Month: Report

Volkswagen’s Profit-First Strategy in the Face of Rising Chinese Electric Success

Credit Suisse-UBS Merger Derails China Bank Incorporation Plan

CNBC

HP At Forefront Of Upcoming AI Revolution In PC Industry, CEO Says

Goldman Sachs Gears Up For Yet Another Round Of Headcount Reduction: Report

Goldman Sachs Group Inc (NYSE:GS) is reportedly geared up for another round of headcount reduction.
The New York-based bank will cut fewer than 250 jobs in the coming weeks, reported CNBC.
The report, citing a person familiar with the bank’s plans, noted that the job cut would impact managing directors and some partners.

Bloomberg

Baidu Commits $140M Fund to Back ChatGPT-Like Startups

Financial Times

Apple Supplier Foxconn Rides the AI Wave, Doubles Down on Server Business Amid ChatGPT Frenzy

TechCrunch

Uber One’s Farewell to Flat 5% Discounts, Offers Cashback For Other Uber Services

Photo by Ljupco Smokovski via Shutterstock and Wikimedia Commons

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Benzinga

Advance Auto Parts Stock Gets Hammered After Q1 Earnings: Here’s Why

Advance Auto Parts Inc (NYSE: AAP) shares are plunging Wednesday morning as its first-quarter results missed expectations. The company also reduced its full-year guidance and decided to reduce its quarterly dividend.
AAP reported first-quarter FY23 sales growth of 1.3% year-on-year to $3.42 billion, missing the analyst consensus estimate of $3.43 billion.
The revenue increase was driven by new store openings and was offset by a decline of comparable store sales of 0.4%.

Prudential’s Executive Shuffle: Ben Bulmer Takes Reins as CFO Amid Conduct Investigation

Prudential PLC (NYSE:PUK) announced the appointment of Ben Bulmer as chief financial officer.
Bulmer will succeed James Turner, who resigned today from the post and will be available for four months to support a smooth transition.
Turner is leaving the company following an investigation into a Code of Conduct issue related to a recent recruitment situation.

Toyota Discloses Yet Another Customer Data Security Breach

Today, Toyota Motor Corp (NYSE:TM) released a statement cautioning against the risk of data leaks of customers in Asia and Oceania (excluding Japan).
Toyota alerted that consumer information such as name, phone number, email ID, addresses, vehicle identification and registration numbers may have been accessible externally from October 2016 to May 2023.
The company assures customers’ vehicle location and credit card information data are not included in the incident.

Blame It On Musk? Research Exposes Disturbing Impact Of Twitter Algorithm Changes

New research revealed concerning findings about the impact of Elon Musk’s Twitter algorithm changes, reportedly amplifying anger and animosity among users, particularly towards those with opposing views.
Musk’s Twitter algorithm changes have come under scrutiny as researchers from Cornell University and UC Berkeley uncovered troubling consequences, revealing that the platform now prioritizes emotionally charged tweets that fuel anger and animosity, ultimately leading to increased polarization among users with opposing views.
According to the researchers, the study was a controlled experiment, which did not involve internal access as they relied on participants who willingly provided access to their tweets through the online crowd-working platform CloudResearch Connect.

Reuters

Boeing Increases 787 Dreamliner Production Rate To Four Per Month: Report

Boeing Co (NYSE:BA) has boosted its widebody 787 Dreamliner production target from three to four planes per month.
The aircraft maker’s ultimate aim is to increase the production to five a month by the end of 2023, reported Reuters.
Also, Boeing plans to add a second production line to the facilities in Charleston, South Carolina.

Volkswagen’s Profit-First Strategy in the Face of Rising Chinese Electric Success

Volkswagen AG (OTC:VWAGY) plans to focus solely on profitability amid cutthroat competition from the Chinese automakers.
Volkswagen said it would not participate in the discount battle like its Chinese competitors, who are more successful with electric cars than their Western rivals, Reuters reported citing a statement from Chief Operating Officer Ralf Brandstaetter.
Instead of expanding its market share and sales volume, the German carmaker plans to leverage its strong market position to build a sustainable business.

Credit Suisse-UBS Merger Derails China Bank Incorporation Plan

Credit Suisse Group AG (NYSE:CS) has scrapped plans to set up a locally incorporated bank in China to avoid a potential regulatory conflict arising from its merger with UBS Group AG (NYSE: UBS).
Credit Suisse had been planning to establish a local bank in China for years. The report added that a locally constituted bank would have expanded its onshore wealth management business and increased its presence in the country, reported Reuters, citing two sources.
Credit Suisse made the choice because UBS, which recently acquired Credit Suisse as part of a government-managed rescue of its smaller rival, already has a domestically established bank in China.

CNBC

HP At Forefront Of Upcoming AI Revolution In PC Industry, CEO Says

HP Inc. (NYSE:HPQ) CEO Enrique Lores believes that artificial intelligence, or AI, will revolutionize the personal computer industry, and his company is at the forefront of this transformative wave.
What Happened: Lores told CNBC’s Jim Cramer that HP is developing a range of AI-enabled PCs that are poised to revolutionize the way users interact with their computers.
“[AI is] going to help us to redefine what a PC is, the experiences that customers will be able to get are going to be much different, and we are working with all the key software vendors, key silicon providers to redesign the architecture of a PC,” Lores told Cramer, reported CNBC.

Goldman Sachs Gears Up For Yet Another Round Of Headcount Reduction: Report

Goldman Sachs Group Inc (NYSE:GS) is reportedly geared up for another round of headcount reduction.
The New York-based bank will cut fewer than 250 jobs in the coming weeks, reported CNBC.
The report, citing a person familiar with the bank’s plans, noted that the job cut would impact managing directors and some partners.

Bloomberg

Baidu Commits $140M Fund to Back ChatGPT-Like Startups

Baidu, Inc (NASDAQ:BIDU) earmarked 1 billion yuan ($140 million) to finance Chinese startups that explore generative AI, marking the rush to tap the ChatGPT frenzy.
The company proposes to utilize the pool to incubate projects built atop its Ernie AI model in deployments of up to 10 million yuan apiece, Bloomberg reports.
Baidu and its VC partners will examine pitches from prospective founders who will use Ernie to build out their services.

Financial Times

Apple Supplier Foxconn Rides the AI Wave, Doubles Down on Server Business Amid ChatGPT Frenzy

Hon Hai Precision Industry Co Ltd (OTC: HNHPF), operating as Foxconn, forecasts its AI server business to at least double in the second half of this year, taking a cue from Nvidia Corp (NASDAQ: NVDA).
The critical Apple Inc (NASDAQ: AAPL) supplier expected up to triple-digit growth in AI servers in the second half, Financial Times cites chair Young Liu.
Liu said the ChatGPT frenzy and increasing reliance were driving the boost in demand.

TechCrunch

Uber One’s Farewell to Flat 5% Discounts, Offers Cashback For Other Uber Services

Uber Technologies, Inc (NYSE: UBER) dropped the 5% discounts on eligible rides for its Uber One subscription service.
Starting their next billing cycle, subscribers will earn 6% of so-called “Uber Cash” on eligible rides that users can spend on Uber and Uber Eats, TechCrunch cites from an email the ride-hailing company sent out to customers.
In 2021, the Uber One subscription for $9.99 per month or $99.99 annually, which offered rides discounts, has been a significant demand driver.

Photo by Ljupco Smokovski via Shutterstock and Wikimedia Commons

AAPAdvance Auto Parts Inc

GSThe Goldman Sachs Group Inc

$905.03-0.01%