Welcome to Tech In Depth, our daily newsletter about the business of tech from Bloomberg’s journalists around the world. Today, Benoit Berthelot reports from the World News Media Congress meeting in France where AI was the topic on everyone’s mind. Tech Across the Globe Uber limits AI: The rideshare company has set usage caps on some artificial intelligence tools for its staff. It’s a cost-savings...
Welcome to Tech In Depth, our daily newsletter about the business of tech from Bloomberg’s journalists around the world. Today, Benoit Berthelot reports from the World News Media Congress meeting in France where AI was the topic on everyone’s mind. Tech Across the Globe Uber limits AI: The rideshare company has set usage caps on some artificial intelligence tools for its staff. It’s a cost-savings move . Microsoft’s quantum ambitions: The software maker unveiled an update to its quantum-computing chip, aiming for a commercially useful machine by 2029. Researchers are curious . US policy: An executive order from President Donald Trump calls for giving the federal government access to AI models. It mostly takes a hands-off approach to regulating the technology . Revalued German industrial robotics startup Agile Robots is in discussions to raise about $800 million in new funding from backers including SoftBank, another indication of investor enthusiasm for companies that can deploy artificial intelligence in real-world settings. Existential crisis The breezy seaside capital of southern France, Marseille, was a harbor this week for 1,300 media executives from all over the world. Honchos from Politico, USA Today and El Pais have been sipping rosé, gossiping and networking heavily. In their polite conversations, one heated topic was hard to ignore: The threat of AI destroying their business — at a fast pace. Consumers are increasingly learning about the state of the world through AI chatbots rather than news websites, let alone print papers. Those AI models are trained by articles written by human reporters and the publishers seemed unsure about the best way to get big tech to pay for that work. Attendees of the World News Media Congress were shaken by a scathing opening keynote from A.G. Sulzberger, publisher and chairman of the New York Times, who sent a wake-up call. “Our profession has been too quiet, too passive, and too fragmented in the face of abuses by the compan...
asbe/iStock via Getty Images Cognyte Software ( CGNT ) shares plunged 26% in premarket trading on Wednesday after the analytics software company reported mixed first-quarter results. For the period ending April 30, Cognyte said it earned an adjusted $0.03 per share as revenue rose 10.4% year-over-year to come in at $105.5M. Analysts had expected the company to earn an adjusted $0.09 per share on $...
asbe/iStock via Getty Images Cognyte Software ( CGNT ) shares plunged 26% in premarket trading on Wednesday after the analytics software company reported mixed first-quarter results. For the period ending April 30, Cognyte said it earned an adjusted $0.03 per share as revenue rose 10.4% year-over-year to come in at $105.5M. Analysts had expected the company to earn an adjusted $0.09 per share on $104.96M in revenue. “Our first quarter results reflect the substantial value our differentiated solutions deliver to customers and the operational discipline with which we are managing the business,” said David Abadi, Cognyte’s chief financial officer. “As a result of better-than-expected adoption of subscription offerings, we now expect recurring revenue to grow faster than total revenue. Even with the recurring revenue momentum and foreign exchange dynamics, we are maintaining our Fiscal 27 outlook.” Cognyte kept its outlook for the rest of fiscal 2027, as it expects revenue to be $448M, plus or minus 3%, compared to the expectations of $446.04M. Adjusted earnings are expected to be $0.47 per share, in line with the $0.47 per share estimate. Adjusted EBITDA is expected to be $68M, up roughly 40% year over year. The company will host a conference call at 8:30 a.m. EST to discuss the results. More on Cognyte Software Cognyte Software: Compelling EBITDA, Low Dilution Cognyte Software Ltd. 2026 Q4 - Results - Earnings Call Presentation Cognyte Software Ltd. (CGNT) Q4 2026 Earnings Call Transcript Cognyte Software Non-GAAP EPS of $0.03 misses by $0.06, revenue of $105.5M beats by $0.46M Cognyte Software Q1 2027 Earnings Preview
Michael Vi/iStock Editorial via Getty Images Shares of Palo Alto Networks ( PANW ) fell about 2% premarket on Wednesday despite fiscal third quarter results beating estimates, while analysts remained largely positive. Jefferies kept its Buy rating and increased the price target to $335 from $300 on the shares of the cybersecurity solutions provider. "F3Q org NNARR [Net New Annual Recurring Revenue...
Michael Vi/iStock Editorial via Getty Images Shares of Palo Alto Networks ( PANW ) fell about 2% premarket on Wednesday despite fiscal third quarter results beating estimates, while analysts remained largely positive. Jefferies kept its Buy rating and increased the price target to $335 from $300 on the shares of the cybersecurity solutions provider. "F3Q org NNARR [Net New Annual Recurring Revenue] accelerated driven by AI/SIEM/SASE [Security Information & Event Management/Secure Access Service Edge] tailwinds. While Bears will point to potentially decelerating serv. rev growth (mgmt said stable), the F4Q guide indicates another NNARR accel which PANW has strong visibility into. PANW will also enter FY27 w/ cross-sell synergies, an emerging AI DC [data center] story which should sustain Firewall growth & blossoming observability/AI businesses. 40% LT FCF [free cash flow] mgn guide was importantly reiterated justifying ROI of recent M&A," said analysts led by Joseph Gallo. Wedbush maintained its Outperform ( IVES ) rating while raising its price target to $340 from $300. Analysts led by Dan Ives said that Palo Alto reported its fiscal third quarter results , which featured strong beats across the board while raising its fiscal year 2026 guidance on the top and bottom lines as more organizations turn to the company to secure AI deployments across the enterprise. "We maintain our OUTPERFORM rating while raising our price target from $300 to $340 reflecting incremental confidence in PANW’s ability to win deals through its AI-native, integrated security platform with the company representing a strong pillar in the AI 30 list. We would be buyers of any knee-jerk weakness," Ives and his team. The analysts noted that Palo Alto remains one of their favorite cyber names to own in 2026, as they continue to believe the platformization approach is still in the early stages of playing out with the consolidation theme accelerating as more enterprises turn to the company for advanc...
The Vanguard FTSE Developed Markets ETF (NYSEMKT:VEA) offers a lower-cost path to developed economies, while the iShares Core MSCI Total International Stock ETF (NASDAQ:IXUS) provides broader global diversification including emerging markets. Both funds serve as core international holdings for U.S.-based investors looking to diversify beyond domestic stocks. By capturing thousands of companies out...
The Vanguard FTSE Developed Markets ETF (NYSEMKT:VEA) offers a lower-cost path to developed economies, while the iShares Core MSCI Total International Stock ETF (NASDAQ:IXUS) provides broader global diversification including emerging markets. Both funds serve as core international holdings for U.S.-based investors looking to diversify beyond domestic stocks. By capturing thousands of companies outside the U.S., these ETFs help mitigate the risks associated with a single-country portfolio while offering exposure to different currency movements and economic cycles. While they share overlapping positions in global giants, their geographic scopes differ significantly, impacting their risk profiles and long-term growth potential. Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield. Continue reading
Bass Advances To Runoff In LA Mayor's Race; Pratt Leads Contenders Authored by Jackson Richman and Beige Luciano-Adams via The Epoch Times, Los Angeles Mayor Karen Bass advanced to the November runoff election for Los Angeles mayor. The Associated Press called Bass’s advancement after 1:30 a.m. ET on June 3. Reality TV star Spencer Pratt and Los Angeles City Councilmember Nithya Raman lead 11 othe...
Bass Advances To Runoff In LA Mayor's Race; Pratt Leads Contenders Authored by Jackson Richman and Beige Luciano-Adams via The Epoch Times, Los Angeles Mayor Karen Bass advanced to the November runoff election for Los Angeles mayor. The Associated Press called Bass’s advancement after 1:30 a.m. ET on June 3. Reality TV star Spencer Pratt and Los Angeles City Councilmember Nithya Raman lead 11 other candidates in the race for runner-up. The runner-up will face Bass in the runoff election on Nov. 3. Bass campaigned on issues including affordability, public safety, and homelessness. Pratt focused his campaign on crisis management, fiscal responsibility, government reform, public safety, homelessness, infrastructure improvements, support for small businesses, and oversight of the Los Angeles Department of Water and Power. Raman’s platform emphasized ending homelessness, expanding housing, protecting renters, improving public safety and transportation, environmental protection, immigrant rights, animal welfare, and support for small businesses. Both Raman and Pratt have criticized Bass for her response to recent wildfires sweeping Los Angeles. Pratt’s home was destroyed in the Pacific Palisades fire in 2025. A distinctive feature of Pratt’s campaign was the widespread use of artificial intelligence-generated videos created by supporters. One of the most widely viewed videos opens with scenes of Los Angeles engulfed in flames, with Bass as a Joker-like villain and Pratt as a Batman-style hero promising change. In another, Bass is portrayed as Darth Vader from Star Wars, and in a third, she appears as the villain Thanos from Marvel’s Avengers franchise. Former Florida Gov. Jeb Bush praised the Joker-themed video in a May 5 post on X, calling it “maybe the best political ad of the year.” Bass has publicly criticized the AI-generated videos. “Actually, I think it’s a very dangerous trend,” she said during a May 13 interview with CNN. Los Angeles mayoral candidate Spencer Pra...
Khanchit Khirisutchalual/iStock via Getty Images By Mike Larson AI. AI. AI. And a handful of other stocks, too. That’s basically what’s working in equity markets this year. So... should you worry? We’ll get to that in a minute. But let’s start with the MoneyShow Chart of the Day, which comes courtesy of Jim Bianco at Bianco Research . You can see that the S&P 500 Index ( SPX ) was up 8.9% as of th...
Khanchit Khirisutchalual/iStock via Getty Images By Mike Larson AI. AI. AI. And a handful of other stocks, too. That’s basically what’s working in equity markets this year. So... should you worry? We’ll get to that in a minute. But let’s start with the MoneyShow Chart of the Day, which comes courtesy of Jim Bianco at Bianco Research . You can see that the S&P 500 Index ( SPX ) was up 8.9% as of the end of May - and AI-related stocks accounted for 7.6 percentage points of that gain. “Everyone else” contributed only 1.3 points. (Source: Bianco Research) If you go back even further - and measure gains from the November 22, 2022 launch of ChatGPT for public consumption - you find that AI stocks fueled 70% of the increase in S&P market capitalization. Wondering what qualifies as an “AI stock?” The basket used in this exercise includes 41 direct or indirect AI beneficiaries. Think semiconductor providers, Magnificent 7 names, utilities, and capital equipment companies like Broadcom Inc. ( AVGO ), Nvidia Corp. ( NVDA ), NextEra Energy Inc. ( NEE ), and Quanta Services Inc. ( PWR ). Now let’s get to the “Should I be worried or not?” part. On X , Jim used the Dot-Com Bubble as an illustration. His thesis? We’re closer to the “1997” point in the cycle... versus March 2000 when the Dot-Com Bust was about to begin. Personally, I’ll just repeat what I’ve been saying when kicking off MoneyShow events recently. I don’t think tech is on the verge of a crash. But I do think it makes sense to allocate more capital to other sectors that could play catch-up - including groups that have their own reasons to rally beyond AI, AI... and more AI! Editor's Note: The summary bullets for this article were chosen by Seeking Alpha editors. Originally published on MoneyShow.com
JHVEPhoto/iStock Editorial via Getty Images As we head into the second half of 2026, my biggest priority as an investor is to prepare for a potential market rotation. In my view, the stock market has become increasingly heavy on semiconductors and AI-linked hardware names, while software stocks have lagged heavily and remain largely in deep value territory. That said, careful stock selection here ...
JHVEPhoto/iStock Editorial via Getty Images As we head into the second half of 2026, my biggest priority as an investor is to prepare for a potential market rotation. In my view, the stock market has become increasingly heavy on semiconductors and AI-linked hardware names, while software stocks have lagged heavily and remain largely in deep value territory. That said, careful stock selection here is key, and value is not the only metric I'm using to determine my buying opportunities. Cases like Yext, Inc. ( YEXT ) , in my view, are pure value traps that should be avoided. Down ~50% since January after the company's CEO made a tender offer to take the company private (and then subsequently withdrew that offer), I see virtually no catalysts that can help to drive a rebound in this name. Data by YCharts I last wrote a sell article on Yext in March, when the stock was sitting in the mid-$5s. Since then, Yext has continued to erode value, even as some stocks in the software sector have experienced a near-term rebound. Even before the idea of a “SaaSpocalypse” settled over the stock market, Yext was already struggling with challenges of relevance, which is clearly showcased in the company's declining customer retention rates. I reiterate my sell rating here. In my view, there are two near-term factors that accentuate the bear camp for this stock. The first is that the underlying economics of the business are getting worse. Like many software companies, Yext is investing in AI to stay relevant. These additional infrastructure investments have caused a material decline in the company's gross margin profile, down to 72.9% on a GAAP basis and 76.9% on a pro forma basis (down -170 bps y/y). For a company that lacks growth, this ~2-point erosion in gross margins bears scrutiny, and this is especially true for a company whose “innovation” has consistently failed to prove any correlation to improved revenue growth. Yext Gross Margins (Yext Q1 Shareholder Letter) The second is tha...