Ron DeSantis Escapes Car Accident Unhurt En Route To Campaign Event, TikTok Takes On Twitter, Analysts Expect Nvidia's AI Revenues To Reach $300B In Five Years: Today's Top Stories

The Hill

Ron DeSantis Escapes Car Accident Unhurt En Route To Campaign Event

• The campaign for Republican presidential contender and Florida Gov. Ron DeSantis said the candidate and a few of his team members were involved in a vehicular accident on their way to a campaign event on Tuesday.
• DeSantis and his staff emerged unscathed from the incident.

Business Insider

Nvidia's AI Revenues To Skyrocket 10X And Hit $300B By 2027, Says Analyst

• Nvidia Corporation NVDA could generate up to $300 billion in artificial intelligence (A.I.) revenues by 2027, a tenfold increase from the expected earnings this year.
• Analyst Vijay Rakesh of Mizuho predicts that Nvidia's A.I. revenues could skyrocket in the coming years, driven by the company's strong position in the A.I. market.
• Nvidia made $7.2 billion in the first quarter, more than experts predicted. But, the company didn't share how much money it made from its AI businesses.

Techcrunch

UK Developers Unite: Over 1,500 App Makers Launch Class Action Suit Against Apple for Unfair App Store Fees

• Over 1,500 U.K.-based developers slapped a class action lawsuit against Apple Inc AAPL involving a penalty of up to £800 million (over $1 billion).
• The plaintiffs alleged the iPhone maker of abusing a dominant position by charging an "anti-competitive" 30% fee on in-app sales made by app makers on its iOS App Store. Also, Apple deprived U.K. consumers and developers of money spent on R&D to drive forward app innovation.

Benzinga

Activists Raise Alarm as Microsoft Invests $2B in Saudi Cloud Facility, Cite Data Privacy Concerns

• Microsoft Corp MSFT disclosed a $2 billion investment to build a data center region in Neom during LEAP 2023, an annual tech conference in Riyadh, Saudi Arabia. 
• The event brings together high-profile business leaders and Saudi officials, spearheaded by Crown Prince Mohammed bin Salman.
• The project has a total estimated cost of $1 trillion, with significant funding from the Kingdom of Saudi Arabia's sovereign wealth fund, the Public Investment Fund.

TikTok Takes On Twitter: Launches Text-Based Posts to Challenge Social Media Rivals

• TikTok's latest feature, allowing users to post written content, is likely a strategic move to expand its platform beyond video sharing and compete with Twitter Inc's text-focused format. 
• By offering text-based posts, TikTok aims to provide its users with more creative opportunities and increase engagement on the platform.

CNBC

Adidas Expects Smaller Operating Loss in 2023 After Parting Ways with Kanye West's Yeezy Collection

• German sportswear firm Adidas AG ADDYY expects a significantly smaller operating loss for FY23 following better-than-expected early sales of its Yeezy stock, which it offloaded after cutting relations with collection creator Ye.
• The company's potential write-off from remaining inventory was now €400 million ($442.5 million), down from €500 million, as it trimmed its operating loss forecast for 2023 to €450 million from €700 million.

Bloomberg

H&M Sues Shein For Copying Dozens Of Its Design

• Hennes & Mauritz AB HNNMY HMRZF reportedly sued the fast-fashion retailer Shein for copyright infringement in Hong Kong.
• H&M had included dozens of stolen pictures of clothing, ranging from swimwear to sweaters, as evidence against Shein during a hearing at the Hong Kong High Court on June 21.
• The next hearing on the case is expected on July 31.

Reuters

TSMC To Invest $2.9B In Advanced Chip Packaging Plant In Taiwan

• Nvidia Corp AAPL stock is trading higher Tuesday. Its peer Taiwan Semiconductor Manufacturing Company Ltd TSM has earmarked nearly T$90 billion ($2.87 billion) for an advanced packaging facility in northern Taiwan.
• The Apple Inc AAPL and Nvidia supplier is eying an advanced packaging fab in the Tongluo Science Park.

FedEx Pilots Reject Contract Deal, Prompting Renewed Negotiations

• FedEx Corp FDX pilots are reportedly likely to reopen negotiations after rejecting a tentative contract deal.
• FDX pilots rejected a tentative contract deal with the parcel delivery firm, and the two sides will reopen negotiations, likely under the supervision of the National Mediation Board.
• The proposed FedEx deal included a 30% pay rise and a 30% increase in the pilots' legacy pensions.

Nestle, Danone Price Rises To Put Them Under France's Inflation Scanner

• Product prices of food and beverages manufacturers Nestle S.A.NSRGY NSRGF and Danone DANOY have reportedly risen by more than 10% this year in France, putting them under the inflation scanner of the country.
• The price hike has potentially pressured the companies to renegotiate with French retailers.
• France's Finance Minister Bruno Le Maire secured an affirmation from 75 food enterprises to slash prices.

American Airlines Faces Voting Delay For Pilot Contract Offer For 'Indefinite Time

• American Airlines Group Inc AAL reportedly disclosed that the pilot union postponed the ratification vote for a tentative agreement indefinitely.
• The voting on the current deal was set to commence on Monday for American Air's pilots.
• As per the union, the voting will occur "at a date and time to be determined."

Earnings

Unilever Shares Are Up After Strong Q2 Earnings

• Unilever Plc UL reported an underlying sales growth of 9.1% in the first half of FY23, with a 9.4% price increase and a (0.2)% decline in volume.
• Turnover increased 2.7% to €30.4 billion, with -3.2% from currency and -2.7% from disposals net of acquisitions.
•  Unilever expects underlying sales growth for the full year to be above 5%, ahead of its multi-year range.

General Electric Q2 Earnings Tops Street View

• General Electric Co GE reported second-quarter FY23 revenues of $16.70 billion, an increase of 18% year-over-year, beating the consensus of $15 billion.
• Adjusted EPS was $0.68, up from $0.36 a year ago, beating the consensus of $0.46.
• GE now expects Organic revenue growth in the low double-digit range, up from the prior high-single-digit range.

General Motors Lifts Annual Guidance On Q2 Earnings

• General Motors Company GM reported second-quarter FY23 sales growth of 25% year-on-year to $44.75 billion, beating the analyst consensus of $42.64 billion.
• Adjusted EPS of $1.91 beat the analyst consensus of $1.85.
• General Motors raised its FY23 net income outlook from $8.4 billion-$9.9 billion to $9.3 billion-$10.7 billion.

Xerox Stock Gains After Mixed Q2 Performance

• Xerox Holdings Corp (NASDAQ: XRX) reported second-quarter FY23 sales growth of 0.4% year-on-year to $1.75 billion, marginally missing the consensus of $1.76 billion. Revenues grew 0.5% at constant currency.
• Adjusted EPS of $0.44 beat the analyst consensus of $0.30. 
• The company expects revenue of $7.1 billion (consensus $6.98 billion). The company forecasts a free cash flow of at least $600 million, up from the prior $500 million.

Spotify Reports Lower Than Expected Q2 Earnings

• Spotify Technology SA SPOT stock traded lower after it reported second-quarter FY23 revenue growth of 11% year-on-year to €3.18 billion ($3.46 billion), missing the consensus of $3.57 billion. Premium Revenue grew 11% Y/Y to €2.77 billion, helped by subscriber additions.
• Loss per share of €(1.55) or $(1.69) missed the consensus loss of $(0.70).

Biogen Q2 Earnings Tops Expectations, Shift Resources To Higher Value Area(s), Layoff 1K Staff

• Biogen Inc BIIB posted Q2 FY23 sales of $2.46 billion, beating the consensus of $2.37 billion, down 5% Y/Y and 3% at constant currency (CC).
• The company said the new "Fit for Growth" program is expected to generate approximately $1 billion in gross operating expense savings, approximately $300 million of which will be reinvested into product launches and R&D programs, resulting in approximately $700 million in net operating expense savings by 2025 – the program includes net headcount reduction of approximately 1,000.

Verizon Q2 Earnings: EPS Beat, Consumer EBITDA Margin Improvement and More

• Verizon Communications Inc VZ stock traded higher Tuesday after it reported second-quarter FY23 results. 
• It clocked a sales decline of 3.5% year-on-year to $32.6 billion, missing the consensus of $33.3 billion. Adjusted EPS of $1.21 beat the consensus of $1.16.
• Verizon reiterated wireless service revenue growth of 2.5% - 4.5% and adjusted EPS outlook of $4.55 - $4.85 versus the consensus of $4.68.

Danaher Annual Guidance Disappoints

• Danaher Corp (NYSE: DHR) has logged Q2 FY23 adjusted EPS of $2.05, down from $2.76 a year ago, surpassing the consensus of $2.01.
• Sales decreased 7.5% Y/Y to $7.16 billion, beating the consensus of $7.11 billion, with a 7% non-GAAP core revenue decrease, due to lower COVID-19 revenue and 2% non-GAAP base business core revenue growth. 
• For FY23, the company anticipates non-GAAP base business core revenue growth will be up low-single digits year-over-year, compared to high-single digits earlier.

Dover Shares Fall As Q2 Earnings Miss Street Consensus

• Dover Corp DOV reported a Q2 2023 revenue decline of 3% Y/Y to $2.10 billion and +3% Y/Y organic, missing the consensus of $2.20 billion.
• Adjusted EPS declined 4% Y/Y to $2.05, missing the consensus of $2.20.
• Dover expects adjusted EPS of $8.85-$9.00 (vs. consensus of $8.98 and vs. $8.85-$9.05 prior); and revenue growth of 2%-4% (all-in and organic vs. prior outlook of 3%-5%).

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