Uber Lost $1 Billion In 1st Quarter, Hopes Profit-Slashing Price Cuts Ease Up Soon - NPR

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Uber CEO Dara Khosrowshahi says he expects Uber and Lyft will be easing off their price-slashing battle soon. Richard Drew/AP hide caption

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Richard Drew/AP

For most companies, losing $1 billion in a quarter would be a big disappointment. But Uber's first report as a publicly traded company was actually better than it had warned investors to expect.

The ride-hailing and food-delivery giant brought in more than $3 billion in revenue in the first three months of 2019 — a 20% jump from the same quarter a year earlier.

Before going public earlier this month, Uber had told investors to be prepared for an even larger loss in the first quarter. Now, it's telling them it expects the price-cutting competition that has hurt its profits to ease up soon.

Uber has burned through money for years by spending heavily on growth — offering financial incentives to attract new riders and drivers, and taking on the costs of expanding into new markets around the world. So far, that growth has never translated into profits.

Uber's IPO did not go well. Despite pricing its shares relatively conservatively, at least compared with early expectations, the company saw its stock drop immediately, and it finished day one lower than it started. Since then, Uber shares have never sold at the value set for the initial offering.

Wall Street liked what it saw in Uber's first earnings report. Its stock was up more than 1% in early trading Friday.

Uber's earnings report shows the company continues to expand rapidly, especially in Uber Eats, its food delivery branch. In South America, however, the company saw revenue shrink as it faces intense competition from rival Didi.

In the U.S., meanwhile, Uber is facing off with its smaller competitor Lyft.

Around the world, competition in ride-hailing is driving down prices and contributing to Uber's losses. In the earnings call on Thursday, Uber CEO Dara Khosrowshahi said he expects Uber and Lyft, at least, will be easing off their price-slashing battle soon.

"The competition is going to be more healthy," he said. "It's going to be based on brand and product and technology, which we think is the right way to compete, versus throwing money at the problem."

He also acknowledged that Uber has faced headwinds in the U.S. due in part to the tremendous damage to the brand over the past few years — marked by sexual harassment allegations, reports of illegal business practices, data breaches and other scandals.

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https://www.npr.org/2019/05/31/728576269/uber-lost-1-billion-in-1st-quarter-hopes-profit-slashing-price-cuts-ease-up-soon

2019-05-31 13:54:00Z
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Solving The Tech Industry's Ethics Problem Could Start In The Classroom - NPR

Ethics is something the world's largest tech companies are being forced to reckon with. Facebook has been criticized for failing to quickly remove toxic content, including the livestream of the New Zealand mosque shooting. YouTube had to disable comments on videos of minors after pedophiles flocked to its platform.

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Philosophy professor Abby Everett Jaques of the Massachusetts Institute of Technology created a class called Ethics of Technology to help future engineers and computer scientists understand the pitfalls of tech. Courtesy of Kim Martineau, MIT Quest for Intelligence hide caption

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Courtesy of Kim Martineau, MIT Quest for Intelligence

Some companies have hired ethicists to help them spot some of these issues. But philosophy professor Abby Everett Jaques of the Massachusetts Institute of Technology says that's not enough. It's crucial for future engineers and computer scientists to understand the pitfalls of tech, she says. So she created a class at MIT called Ethics of Technology.

As artificial intelligence continues to creep into our lives, Jaques worries about privacy. She's especially concerned about facial recognition "tracking us continuously and pervasively."

Studies have already shown that facial recognition misidentifies dark-skinned people. Google came under fire when its photo app labeled black people as gorillas.

"I'm an ethicist, and I'm especially interested in these questions around ethics of things we make," Jaques says.

In one exercise, Jaques has her class of 30 students play a game that's designed to make them think about how to achieve fairness.

Jaques places a large paper bag at the front of the room. The students don't know its exact contents — only that there are treats inside. And they have to figure out how best to share them.

"All right, let's hear some ideas," Jaques tells the class.

One student suggests they dump everything out of the bag and figure things out from there. Another says they should put someone in charge of deciding what to do.

After considering a dozen ideas, the class votes to do it this way: Each student is randomly assigned a number and allowed to pick something based on their number once the bag is opened.

Jaques empties the bag. Turns out it was filled with assorted baked goods, including rice crispy treats and chocolate chip cookies.

One student has a concern: "Sorry, can we like determine who's vegan here?"

The class didn't account for different dietary needs. And that's exactly what Jaques wants the students to think about.

"Our system didn't protect a certain important minority," she says. "So we're trying to build in something afterwards [to account for that]."

That resonates with Cel Skeggs, a senior studying computer science:

"I've been the person throughout the semester beating the dead horse of 'How does this technology affect LGBTQ people?' " Skeggs says. "To the extent that some people have suggested solutions to things and then when that question's imposed, they're like, 'Oh, I didn't actually think about that thing at all.' "

This comes into play in real life too. For instance, some transgender Uber drivers were kicked off the app when a security feature couldn't recognize them. The feature required drivers to take a selfie to verify their identity but didn't account for people who are transitioning.

Srinivas Kaza, a computer science major, says learning about ethics has influenced what companies he's willing to work for. "I eliminated a lot of choices," he says and laughs.

Kaza says he wants to work with image technology, but he's really concerned about doctored photos and the spread of misinformation. "I think it's just important to not contribute to the problem," he says.

And that's exactly why Jaques created this class — for these students to understand that ethics is essential to their work as engineers and computer scientists.

"Companies better get ready because the students are going to be asking a lot of questions," she says.

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https://www.npr.org/2019/05/31/727945689/solving-the-tech-industrys-ethics-problem-could-start-in-the-classroom

2019-05-31 13:00:00Z
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Uber's earnings print inspires new bull - Seeking Alpha

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1. Uber's earnings print inspires new bull  Seeking Alpha
2. Uber loses $1 billion in quarter as costs grow for drivers, food delivery  Yahoo Finance
3. Uber lost more than $1 billion in the first quarter  CNN
4. How Uber Hopes to Profit From Public Transit  The New York Times
5. Uber loses $1 billion in quarter as costs grow for...  Daily Mail
6. View full coverage on Google News

https://seekingalpha.com/news/3468261-ubers-earnings-print-inspires-new-bull

2019-05-31 13:10:00Z
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Wall St steadies after trade tension-driven selloff - Investing.com

© Reuters. Traders work on the floor at the NYSE in New York

By Amy Caren Daniel

(Reuters) - U.S. stocks inched higher for the first time this week on Thursday, as President Donald Trump said trade talks with China were going well, offering a glimmer of hope to markets roiled by worries that a protracted dispute would slow global growth.

A senior Chinese diplomat said provoking trade disputes is "naked economic terrorism", even as Trump said Beijing wanted to make a deal with Washington.

The escalating dispute has weighed heavily on Wall Street this month, putting its main indexes on track for losses of at least 5% in May. The benchmark is now 5.8% away from its all-time high of 2,954.13 hit on May 1.

"We're seeing just a little bit of a relief to markets after the selling over the past couple of days, whether it morphs into something more than that it's hard to say," said Paul Nolte, portfolio manager at Kingsview Asset Management in Chicago

"Markets are focused on trade talks, or lack there of. We're starting to see more and more signs that the economy is looking more recessionary that expansionary."

U.S. treasury yields fell on Thursday and hovered near 20-month lows as investors sought safety in government bonds. [US/]

The yield curve between three-month bills and 10-year notes remained inverted, with money markets pricing in roughly two U.S. rate cuts by the start of next year.

Interest-rate sensitive bank stocks fell 0.55%, while the broader financial sector declined 0.10%.

Technology stocks, among the worst performing S&P sectors this month, rose 0.60% and boosted markets.

The sector was helped by a 11.7% jump in Keysight Technologies after the electronic measurement equipment maker reported better-than-expected quarterly results and announced a $500 million share buyback plan.

Apple Inc (NASDAQ:), Microsoft Corp (NASDAQ:) and Intel Corp (NASDAQ:) also rose and offered support.

Also helping sentiment was data that confirmed domestic economic growth accelerated in the first quarter, but there were signs that the temporary boost from exports and inventory accumulation was already fading.

At 12:52 p.m. ET the was up 81.69 points, or 0.33%, at 25,208.10. The S&P 500 was up 9.62 points, or 0.35%, at 2,792.64 and the was up 31.00 points, or 0.41%, at 7,578.31.

The energy sector fell 0.85%, the most among the four major S&P sectors trading lower.

Among other stocks, Dollar General Corp (NYSE:) jumped 7.9% after the discount retailer's same-store sales and profit topped expectations.

Viacom Inc climbed 6.1% after report that CBS Corp (NYSE:) is preparing for merger talks with the media company. CBS rose 3.6%.

PVH Corp (NYSE:) plunged 14.2%, the most among S&P companies, after the Calvin Klein owner cut its annual profit forecast as it grapples with tariffs and slowing retail growth.

Advancing issues outnumbered decliners by a 1.51-to-1 ratio on the NYSE and by a 1.35-to-1 ratio on the Nasdaq.

The S&P index recorded one new 52-week high and 23 new lows, while the Nasdaq recorded 22 new highs and 96 new lows.

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https://www.investing.com/news/stock-market-news/futures-tick-higher-after-prior-sessions-selloff-1882964

2019-05-30 17:21:00Z
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Wall St. pauses after trade tension-driven selloff - Investing.com

© Reuters. Traders work on the floor at the NYSE in New York

By Amy Caren Daniel

(Reuters) - U.S. stocks rose for the first time this week on Thursday, as President Donald Trump said trade talks with China were going well, offering a glimmer of hope to markets roiled by worries that a protracted dispute would slow economic growth.

A senior Chinese diplomat said provoking trade disputes is "naked economic terrorism", even as Trump said Beijing wanted to make a deal with Washington.

The escalating dispute has weighed heavily on Wall Street this month, putting its main indexes on track for losses of more than 5% in May. The benchmark is now 5.9% away from its all-time high of 2,954.13 hit on May 1.

"The positivity in markets is very muted today, there are fractional gains," said Peter Kenny, founder of Kenny's Commentary LLC in New York.

"Uncertainty is still the primary driver on the trade front. We have increasingly seen the fear of uncertainty being priced into the market, and that is all about trade and the prospect of a slowdown."

Despite a tick up in U.S. treasury yields on Thursday, they still hovered near 20-month lows as investors sought safety in government bonds. [US/]

The yield curve between three-month bills and 10-year notes remained inverted, with money markets pricing in roughly two U.S. rate cuts by the start of next year.

Interest-rate sensitive bank stocks fell 0.54%, while the broader financial sector declined 0.24%.

Technology stocks, among the worst performing S&P sectors this month, rose 0.38% and boosted markets.

The sector was helped by a 9.6% jump in Keysight Technologies after the electronic measurement equipment maker reported better-than-expected quarterly results and announced a $500 million share buyback plan.

Apple Inc (NASDAQ:), Microsoft Corp (NASDAQ:) and Intel Corp (NASDAQ:) also rose and offered support.

Also helping sentiment was data that confirmed domestic economic growth accelerated in the first quarter, but there were signs that the temporary boost from exports and inventory accumulation was already fading.

At 11:10 a.m. ET the was up 6.11 points, or 0.02%, at 25,132.52. The S&P 500 was up 5.54 points, or 0.20%, at 2,788.56 and the was up 19.47 points, or 0.26%, at 7,566.78.

The energy sector fell 1.1%, the most among the four major S&P sectors trading lower.

Among other stocks, Dollar General Corp (NYSE:) jumped 6.8% after the discount retailer's same-store sales and profit topped expectations.

Viacom Inc climbed 4.8% after report that CBS Corp (NYSE:) is preparing for merger talks with the media company. CBS rose 2.7%.

PVH Corp (NYSE:) tumbled 14.3%, the most among S&P companies, after the Calvin Klein owner cut its annual profit forecast as it grapples with tariffs and slowing retail growth.

Advancing issues outnumbered decliners by a 1.45-to-1 ratio on the NYSE and by a 1.28-to-1 ratio on the Nasdaq.

The S&P index recorded one new 52-week high and 13 new lows, while the Nasdaq recorded 18 new highs and 69 new lows.

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https://www.investing.com/news/stock-market-news/futures-tick-higher-after-prior-sessions-selloff-1882964

2019-05-30 15:51:00Z
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'It is unwise to have so much power concentrated in one person': Here's the stinging message that will be read out to Mark Zuckerberg today by an investor who wants to take him down - Business Insider

Mark Zuckerberg, Facebook's CEO and chairman.Reuters

• Activist Facebook investors will on Thursday vote on whether to fire Mark Zuckerberg as chairman and rip up the firm's dual-class share structure.
• The idea to oust Zuckerberg was put forward by Trillium Asset Management, and the firm's boss, Jonas Kron, will read out a message during Facebook's shareholder meeting.
• With Zuckerberg in the room, he will say it is "unwise to have so much power concentrated in one person" following a string of Facebook scandals.
• You can read his message in full below.
• Visit BusinessInsider.com for more stories.

Mark Zuckerberg is heading for a showdown with investors on Thursday, as the Facebook boss faces a vote on whether he should remain as both CEO and chairman.

At Facebook's annual shareholder meeting in Silicon Valley, investors will vote on two proposals: to hire an independent chairman above Zuckerberg, and to rip up the firm's dual-class share structure.

The former idea, to oust Zuckerberg as chairman, was put forward by activist shareholder Trillium Asset Management, and the firm's senior vice president, Jonas Kron, will read out a message in support of his proposal during today's meeting.

With Zuckerberg in the room, Kron will make the case that Zuckerberg's enormous power has exacerbated Facebook's problems over the past two years, such as the Cambridge Analytica scandal and election meddling on the social network.

"We have watched with growing dismay as that list of controversial and damaging social impacts grew very long. And as rigorous reporting from the New York Times has shown us, having a unified chair and CEO severely limited the board's ability to provide the company the oversight it needed," he will tell Zuckerberg and the Facebook board, according to a statement sent to Business Insider.

Read more: Facebook's activist shareholders are making another dramatic bid to oust Mark Zuckerberg and abolish the firm's share structure

"It is unwise to have so much power concentrated in one person," he will add, as he bids to drum up support from fellow investors. "Let us not miss this opportunity to make a simple, yet powerful change that would go a long way towards creating a successful future."

Facebook has always maintained that hiring an independent chairman would not be a good idea. "We do not believe that requiring the Chair to be independent will provide appreciably better direction and performance, and instead could cause inefficiency in board and management function and relations," it said in a filing last month.

The chance of Trillium's proposal becoming a reality is extremely slim, despite it being backed by investors that control around $3 billion of Facebook stock. A similar proposal in 2017 was popular among independent investors but was crushed because of Zuckerberg's voting power.

This is because of Facebook's dual-class share structure. Class B shares have 10 times the voting power of class A shares, and it just so happens that Zuckerberg owns more than 75% of class B stock. It means he has more than half of the voting power at Facebook.

Here's the full message Jonas Kron will read out to Mark Zuckerberg:

Good morning Mr. Chairman, members of the board, fellow shareholders. My name is Jonas Kron and I am here on behalf of Trillium Asset Management and the Park Foundation to hereby move Item Number 6, seeking an independent board chair policy for Facebook.

This proposal has been co-filed by the New York City Comptroller, the Treasurers of Illinois, Rhode Island, Connecticut, and Oregon, and a multitude of smaller and faith based investors.

At its core this shareholder proposal is about the risk of concentrating too much power in one person – any person.

As proxy advisory firm Glass Lewis put it in its report supporting this shareholder proposal - "vesting a single person with both executive and board leadership concentrates too much responsibility in a single person and inhibits independent board oversight of executives …"

Facebook is incredibly powerful - with wide ranging and difficult to understand, let alone control, social impacts. Over the last two years we have watched with growing dismay as that list of controversial and damaging social impacts grew very long. And as rigorous reporting from the New York Times has shown us, having a unified Chair and CEO severely limited the board's ability to provide the company the oversight it needed.

It is these very facts about power and impact – responsibility and accountability - which highlight why a unified chair and CEO is such a misguided idea – it is unwise to have so much power concentrated in one person.

Which is why we should look to the examples of highly successful companies such as Alphabet, Apple, Autodesk, and Microsoft – to name just a few – which all have independent board chairs.

We recognize that Facebook has a lead independent director. And we acknowledge that the board has recently taken steps to articulate more clearly her powers and responsibilities. However, these recent changes are fundamentally insufficient to meet the task at hand because a lead independent director does not command the same authority as an independent board chair.

This question comes to shareholders at a critical moment. Facebook is embarking on a privacy pivot which leadership has described as requiring a completely new platform. At a time when there is little public trust in Facebook, it is navigating a regulatory landscape that is changing quickly. In this difficult and challenging environment it is important to stop and consider that the CEO position is the most demanding job in corporate America and the responsibilities of a Chairman of the Board are enormously time consuming. We need different people in these two distinctly different leadership positions.

Let us not miss this opportunity to make a simple, yet powerful change that would go a long way towards creating a successful future, not only for Facebook and its employees and its shareholders, but for individuals, families, and communities around the world.

Thank you for your time and attention – and for your support for an independent board chair.

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https://www.businessinsider.com/investors-demand-facebook-fire-mark-zuckerberg-as-chairman-2019-5

2019-05-30 14:30:43Z
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Wall Street rises after trade-driven selloff - Investing.com

© Reuters. Traders work on the floor at the NYSE in New York

By Amy Caren Daniel

(Reuters) - U.S. stocks rose for the first time this week on Thursday, as President Donald Trump said trade talks with China are doing well, offering a glimmer of hope to markets roiled by trade tensions.

A senior Chinese diplomat said that provoking trade disputes is "naked economic terrorism", even as Trump said Beijing wanted to make a deal with Washington.

The escalating trade war has weighed heavily on Wall Street, putting its main indexes on track for a monthly loss of more than 5% in May. The benchmark is now 5.7% away from its all-time high of 2954.13 hit on May 1.

"People are trying to figure out how much of the bad news is already priced in. The trade war looks like it might dampen growth but not enough to throw us into a recession," said Scott Brown, chief economist at Raymond James in St. Petersburg, Florida.

"There has been talk about the Fed possibly cutting rates and that is a little bit positive for the stock market."

Despite a tick up in U.S. treasury yields on Thursday, they were still at 20-month lows as investors sought safety in government bonds.

The yield curve between three-month bills and 10-year notes also remained inverted and money markets were pricing in roughly two U.S. rate cuts by the start of next year. [US/]

The technology sector, among the worst performing S&P sectors this month, rose 0.60%, and provided the biggest boost to markets.

The sector was helped by a 11% jump in shares of Keysight Technologies after the electronic measurement equipment maker's quarterly results topped estimates and the company announced a $500 million share buyback program.

Apple Inc (NASDAQ:), Microsoft Corp (NASDAQ:) and Intel Corp (NASDAQ:) rose between 0.3% and 1.3%, supporting the markets.

At 9:42 a.m. ET the was up 74.96 points, or 0.30%, at 25,201.37. The S&P 500 was up 12.02 points, or 0.43%, at 2,795.04 and the was up 32.96 points, or 0.44%, at 7,580.27.

Nine of the 11 major S&P sectors were trading higher, with only the energy and communication services sectors in the red.

Adding to the upbeat mood, the government confirmed domestic economic growth accelerated in the first quarter, but there are signs that the temporary boost from exports and inventory accumulation is already fading, and production at factories slowing.

Among other stocks, Citigroup Inc (NYSE:) rose 1.4% after Goldman Sachs (NYSE:) raised the bank's shares to "buy", as it expects the lender to achieve a higher return on equity in 2020.

Discount retailer Dollar General Corp (NYSE:) jumped 6.2% after the company reported quarterly same-store sales and profit above expectations.

PVH Corp (NYSE:) tumbled 12.1%, the most among S&P companies, after the Calvin Klein owner cut its annual profit forecast as it grapples with tariffs and slowing retail growth.

Advancing issues outnumbered decliners by a 3.25-to-1 ratio on the NYSE and by a 2.48-to-1 ratio on the Nasdaq.

The S&P index recorded no new 52-week high and six new lows, while the Nasdaq recorded eight new highs and 26 new lows.

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https://www.investing.com/news/stock-market-news/futures-tick-higher-after-prior-sessions-selloff-1882964

2019-05-30 14:24:00Z
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