Happy Tech Thursday! (Or whatever day it is… time is a blur in tech, anyway.)

Today’s top stories:

1. Google earnings hit record revenue of $88B in Q3.

2. Apple shifts focus from hardware to AI.

3. Meta reports 19% jump in revenue.

4. Musk trying to raise another round for xAI at $45B valuation.

5. Microsoft’s AI demand outpaces data center availability.

Markets Snapshot

Economic Calendar

What to watch this week 🗓️ 

This week has major announcements for the top economies in the world and US company earnings that are important to know. See calendar above for details.

1. U.S. economy meetings: 🇺🇸 

• September Core PCE meeting (Thu 31 Oct): Unlike CPI, PCE excludes volatile food and energy costs providing a clearer picture of underlying inflation. Important for setting monetary policy and economic forecasting. 🛒 

• October Non-Farm Payrolls (Fri 1 Nov): Crucial because they provide a comprehensive snapshot of the U.S. job market, excluding sectors like farming and non-profits. 🧑‍💼 

2. Company earnings: 💹 

Roughly 20% of the top 500 U.S. companies are going to report their earnings this week. This is important and can sway the financial markets. Wall street will be particularly active this week peeling their eyes over every number! 👀 

Today’s top stories

1. Google's ad empire hits record $66B as profits soar 💰

Alphabet and Meta’s Q3 ad revenues by year

Key takeaways:

• Google parent Alphabet exceeded market expectations with $88.3B total revenue.

• Ad revenue reached $65.9B, surpassing analyst predictions of $65.4B.

• Company achieved highest-ever quarterly profit of $26.3B.

  • Stock jumped 5% after earnings announcement.

• Google maintains 25% market share in global digital advertising.

What this could mean for you:

• Google's strong position suggests continued AI investment in consumer products like Android, Chrome, Gmail, and their Pixel phones. 📱 

• Expect continued AI features across Google services as they aim to reclaim lost glory to rivals like OpenAI, Microsoft and Anthropic.

What this could mean for the digital advertising industry:

• Google's dominance keeps getting stronger despite new rivals - it's like they're playing Monopoly while everyone else is still reading the rules 🎲

• With twice Meta's ad revenue, Google's making other tech giants look like they're running a lemonade stand in Silicon Valley. 🍋 

2. Apple shifts focus from hardware to AI as Vision Pro hiring drops 79% 🔄

Key takeaways:

• Job postings for hardware positions at Apple show significant decline in 2024.

• Job listings with ‘Vision Pro’ dropped from 126 in January to 26 this week.

  • Employees left to join hardware teams at Amazon, Google, Midjourney.

• Optics-related skill requirements decreased by 50%.

• AI and Machine Learning job postings are increasing.

• Apple Intelligence launch drives hiring shift toward AI expertise.

What this could mean for you:

• Future Apple products might focus more on AI features than hardware upgrades, making your daily tasks smarter and more automated.

• Vision Pro support and development could slow down, worth considering before investing in the device.

• Possible slower hardware innovation cycle might mean longer-lasting value for current Apple devices.

What this could mean for the AI industry:

• Apple's entrance into the AI race could heat up competition, but it remains to be see if they will build their own foundational models or fine-tune on existing ones. Time for Siri to finally get smarter! 🤖 

• The shift from a hardware-first company to an AI-focused one might create a new standard for integrating AI into consumer devices - like putting a PhD in your pocket, taking Apple’s product to the next generation.🎓

3. Meta reported a 19% revenue jump as AI features boost engagement 📊

Key takeaways:

• Meta platforms’ ad revenue grew by 19% year-over-year, reaching $39.89 billion in Q3 2024.

• All platforms together reach 3.2 billion daily active users globally.

• AI tools boost Facebook and Instagram engagement by 8% and 6% respectively.

  • Over 1 million advertisers use Meta's GenAI tools.

• Strong momentum with Meta AI, Llama adoption and AI-powered glasses.

• Reality Labs posted another operating loss of $4.4B in Q3 2024.

• Zuck said Meta to continue significant capital expenditures growth in 2025.

What this could mean for you:

• Expect more AI features integrated into your daily social media experience.

• Enhanced AI advertising tools for more targeted ads in your feed.

• New Ray-Ban Meta glasses and Quest 3S could offer new ways to interact with social media. 🕶️ 

• Teen Account protections on Instagram provide better safety options for families.

What this could mean for AI in the social media industry:

• The race for AI integration is in full steam - soon your social media feed will know what you want to see before you do! 🔮

• With 3.2 billion daily users, Meta's not just winning the social media game, they're practically writing the rulebook. Competitors be like "How do we compete with a platform that has almost half the world's population?" 🌍

4. Musk's xAI seeks $5 billion funding at $45 billion valuation 🚀

Key takeaways:

• xAI is in talks to raise $5 billion from investors including Valor Equity Partners and Qatar Investment Authority.

• Valuation nearly doubled from $24 billion to $45 billion in just 5 months.

• Musk claims to have built the largest AI cluster in Memphis in 4 months.

• Nvidia confirms xAI plans to double its chip cluster to 200,000 chips.

• Grok chatbot access available through X subscription ($8/month) or API.

What this could mean for the AI industry:

• The rapid expansion of AI infrastructure suggests we're entering an era where computing power equals market power 🔥

• With Middle Eastern wealth funds pouring money into AI, we might see a shift in who controls the future of AI - looks like Silicon Valley isn't the only player in this game anymore 🌍

5. Microsoft's cloud growth slows as AI demand outpaces data centers 🏗️

Key takeaways:

• Azure cloud revenue growth expected to slow to 31-32% this quarter, down from 34% in Q1.

• Microsoft hit record capital spending of $14.9B, up 50% year-over-year.

• Company forecasts $1.5B loss related to OpenAI investment.

• Q1 revenue rose 16% to $65.6B, beating estimates.

• AI services now account for 12 percentage points of Azure's growth.

What this could mean for the cloud computing industry:

• The race to build AI-ready data centers is turning into a real estate soap opera - whoever finds the best spots with power supply wins! 🏃‍♂️

• Looks like even tech giants can't keep up with AI's appetite for computing power. It's like hosting a buffet where guests eat faster than you can cook! 🍽️

6. China's factory growth breaks 5-month slump amid stimulus push 📈

China’s factory activity increased in October 2024 after 5 months of contraction

Key takeaways:

• Factory activity expanded in October with PMI rising to 50.1, beating forecasts of 49.9.

• Services and construction sectors showed expansion following September's stagnation.

• Beijing launched aggressive stimulus measures including interest rate cuts and housing market support.

• Economists project 4.8% GDP growth, below official 5% target.

• US presidential election and potential 60% tariffs under Trump pose significant risks.

How it could impact you:

• Global product prices might rise if US-China trade tensions escalate, making your holiday shopping more expensive. 🛍️

• Your investment portfolio could face volatility, especially if you're holding Chinese stocks or bonds.

• Pension funds invested in Chinese markets might see fluctuations affecting retirement savings.

What this could mean for manufacturing in the Chinese economy:

• Manufacturing in China is like a student cramming before finals - showing improvement after massive stimulus, but still worried about the big test (US elections) coming up! 📚

• Manufacturing job prospects could improve as factories ramp up production.

7. US GDP grows 2.8% as consumers keep wallets open despite inflation 💪

Key takeaways:

• Economy expanded 2.8% in Q3, slightly below 3% forecast.

• Consumer spending accelerated to 3.7%, up from previous quarter.

• Private sector added 233,000 jobs in October, highest since July 2023.

• Unemployment rate at 4.1%, up from 3.4% in 2023.

• Consumer confidence hit nine-month high in October 2024.

• IMF projects 2.8% US growth in 2024, outperforming global peers.

• Residential investment declined 5.1%.

How it could impact you:

• Strong job market means better employment prospects and potential wage growth.

• Steady economy could help maintain retirement account values, though markets remain choppy.

• High interest rates still mean pricey mortgages and loans. Looks like that dream house might stay on Pinterest for now! 🏠

• Rising consumer confidence suggests stable prices ahead, but inflation isn't gone yet.

Other reads

AI

GitHub Copilot integrates multiple LLMs, shifts away from OpenAI-only architecture.

OpenAI introduces chat history search feature.

Creator of Linux trashes AI hype.

OpenAI builds first chip with Broadcom and TSMC, scales back foundry ambition.

Tech

The MacBook Air gets a surprise upgrade to 16GB RAM.

Apple announces Vision Pro to two more international countries.

Startup

Actress Olivia Wilde launches VC firm.

Salva Health is the winner of Startup Battlefield at Disrupt 2024.

Hummingbirds raises $5.4M to connect creators to brands locally.

Business

Starbucks will stop charging extra for diary alternatives.

Trump Media shares slide 22% before election.

Productivity company, Miro, lays off about 18% of staff.

US Politics

Judge orders Elon Musk to court over $1 million giveaway in US election.

Harris promises to ‘represent all Americans’ after Biden’s remark.

Musk's X ineffective against surge of US election misinformation, report says.

Top Economies (non-US)

Germany avoids recession with a slight Q3 growth.

BOJ steadies policy and opens door for a rate hike.

Indian economy in difficult phase.

Chinese economy shows signs of recovery with recent stimulus.

Fascinating

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