Costco Goes Netflix Way To Stop Sharing Of Subscriptions, Satya Nadella Wants To Ditch Console Exclusives, Investors Cheer Rite Aid Q1 Performance: Today's Top Stories

Bloomberg

US Federal Trade Commission Plans to Prosecute Amazon's Core Online Marketplace, Citing Alleged Abuse of Power

• The U.S. Federal Trade Commission (FTC) plans to prosecute Amazon.com Inc's AMZN core online marketplace.
• Amazon allegedly leverages its power to reward online merchants that use its logistics services and penalize those who do not.
• FTC investigators and Lina Khan's office have been honing the complaint for several months and finalizing key details such as where to file suit. 

Benzinga

Oracle Takes On AWS, Microsoft With Nvidia Chip Investments for AI Cloud

• Oracle Corp ORCL is splurging "billions" of dollars on Nvidia Corp NVDA chips as it expands a cloud computing service targeting the artificial intelligence (AI) boom.
• Oracle's cloud division is working to gain ground against larger rivals like Amazon.Com Inc's AMZN Amazon Web Services, and Microsoft Corp MSFT.
• Oracle has focused on building fast networks that can shuffle around the massive data needed to create AI systems similar to ChatGPT.

Satya Nadella Wants To Ditch Console Exclusives, But Sony's Iron Grip On Them Is Keeping Him Trapped

• Microsoft Corp MSFT CEO Satya Nadella said he would "love" to get rid of console-exclusive games if it were up to him. He blamed Sony's dominance in the gaming console market and its strategy of using exclusives to drive sales.
• Nadella took the stand on Wednesday in the company's legal battle against the US Federal Trade Commission (FTC). He outlined how he would like to run the Xbox business, and his vision suggests gamers would get access to all games across platforms.

Salesforce Plans $4B Investment In Its UK Business Over 5 Years

• Salesforce Inc CRM plans to invest $4 billion in its U.K. business in five years.
• The announcement was made at a company event in the U.K., attended by more than 14,000 customers, partners, employees, and stakeholders. The event is called World Tour London: AI Day.
• "Salesforce's major investment in its UK business over the next five years is a ringing endorsement of our economy," said U.K. Prime Minister Rishi Sunak. 

Visa Outpaces Mastercard in Race to Acquire Pismo, Eyeing Greater Support for Emerging Payment Rails

• Visa Inc V agreed to acquire Pismo, a cloud-native issuer processing and core banking platform with operations in Latin America, Asia Pacific, and Europe, for $1 billion in cash.
• Pismo is a Brazilian cloud-based payment and banking platform provider.
• The acquisition will position Visa to provide core banking and issuer processing capabilities across debit, prepaid, credit, and commercial cards for clients via cloud-native APIs. 

Rite Aid Shares Shine After Better Than Expected Q1 Earnings, Strong Guidance Outlook

• Rite Aid Corp RAD has reported Q1 FY24 sales of $5.65 billion, compared to $6.01 billion a year ago, beating the consensus of $5.32 billion. 
• The company reported an Adjusted EPS loss of $(0.73) compared to a loss of $(0.86) a year ago and the consensus of $(1.46).
• Rite Aid expects FY24 revenues of $22.6-$23 billion compared to $21.7 billion-$22.1 billion expected earlier and the consensus of $21.8 billion.

Toyota Posts 10% Sales Growth In May Boosted By Improved Supply Chain Logistics

• Toyota Motor Corp TM reported a sales growth of 10.1% year-on-year for May, to 838,478 vehicles.
• Worldwide sales, including those for subsidiaries Daihatsu Motor Co Ltd and Hino Motors Ltd, improved by 10.7% to 906,715 vehicles.
• The global sales growth in May marks the fourth consecutive month of Y/Y increase.
• Worldwide production for Toyota increased 33.4% Y/Y to 847,000 vehicles.

McCormick Q2: 8% Topline Growth, EPS Beat, Slower Recovery In China & More

• McCormick & Co Inc (NYSE: MKC) reported second-quarter FY23 sales growth of 8% year-on-year to $1.66 billion, slightly missing the analyst consensus of $1.67 billion.
• Adjusted EPS of $0.60 beat the consensus of $0.57.
• McCormick reaffirmed FY23 revenue growth guidance of 5% - 7% and raised FY23 Adjusted EPS outlook to $2.60 - $2.65 from $2.56 - $2.61.

Paychex Q4 Earnings Fall Inline With Wall Street Expectations

• Paychex Inc PAYX reported fourth-quarter FY23 revenue growth of 7% year-over-year to $1.23 billion, beating the consensus of $1.22 billion.
• Total service revenue grew 7% Y/Y to $1.20 billion.
•  Paychex expects revenue to grow by 6% - 7% ($5.31 billion consensus), adjusted EPS to grow by 9% - 10% (prior view 13% - 14%) ($4.59 consensus), and Management Solutions revenue to grow by 5% - 6% (prior view ~8%).

Fashion Retailer H&M Reports 6% Topline Growth In Q2

• Swedish clothing giant Hennes & Mauritz AB HNNMY HMRZF group reported a 6% year-on-year increase in second-quarter FY23 sales to SEK 57.6 billion.
• High raw materials and freight costs and a strong U.S. dollar had a negative impact on the result compared with the previous year.
• Operating profit for the quarter totaled SEK 4.741 billion with an operating margin of 8.2%.

Reuters

Nike Analysts Warn of Earnings Pressure as US Wholesale Demand Slows

• Nike Inc NKE will likely forecast full-year profit below Wall Street estimates, as demand for the sportswear firm's products from wholesalers like Foot Locker Inc FL and Hibbett Inc HIBB in the U.S. succumb to inflation.
• At least seven analysts trimmed their FY24 expectations for Nike's EPS since the beginning of June, and 10 slashed their price targets on the company's stock ahead of its Q4 results.

Exxon Mobil's Strategic Shift: Enters Second Lithium Venture in Bid to Boost US EV Supply Chain

• Exxon Mobil Corp XOM has reportedly struck a deal with Tetra Technologies Inc TTI to exploit over 6,100 lithium-rich acres in Arkansas, representing Exxon's second venture this year into resources necessary for the production of electric vehicle battery metals.
• The shift of Exxon into the lithium sector is in line with a broader trend of traditional energy companies and others focusing on new technologies that can enhance the worldwide availability of this extremely light metal.

TSMC Fastracks Completion Of US Plant As Samsung Gets Aggressive With Foundry Ambitions

• Taiwan Semiconductor Manufacturing Company Ltd TSM looks to send more workers from Taiwan to the U.S. state of Arizona to help fastrack the construction of its massive $40 billion factory.
• TSMC's debut Arizona chip fabrication facility, or fab, will likely be operational by 2024. A second facility nearby will probably make 3-nanometre chips - the most advanced currently in production - due to be up and running by 2026.
• TSMC emphasized the growing importance of skilled expertise given the critical phase of handling the most advanced and dedicated equipment in a sophisticated facility.

Wall Street Journal

Costco Goes Netflix Way To Stop Sharing Of Memberships, Subscriptions

• Costco Wholesale Corporation COST is reportedly implementing stricter measures to prevent card-sharing among customers. The move follows a trend of companies, including Netflix Inc NFLX, trying to curtail the sharing of paid memberships.
• The company now requires photo identification and customers' membership cards at its self-checkout registers.
• Costco stated that the move aims to prevent nonmembers from reaping the benefits and pricing available to the members.

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