The Briefing by Martin Peers, Jessica Lessin and the team at The Information

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The Briefing

By Martin Peers, Jessica Lessin and the team at The Information

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Recent Editions

Mark Zuckerberg. Photo by Bloomberg.

TikTok’s Meta Effect

By Martin Peers · Feb 2, 2022 5:00pm PST

Wow. TikTok just managed a feat that advertiser boycotts and years of complaints about toxic content on Facebook couldn’t pull off—it loosened Meta Platforms’ grip on advertisers. Meta issued a first-quarter revenue growth outlook today that was so slow (3% to 11%) it could have come from an old-media company. One of the key reasons: Meta is... Wow. TikTok just managed a feat that advertiser boycotts and years of complaints about toxic...

Illustration by Josh Brill.

Zoom, DocuSign Sweeten Employee Pay as Shares Tumble

By Mark Matousek · Feb 2, 2022 2:47pm PST

Thousands of tech employees are reeling as the value of their stock compensation, which soared in the past two years, has come crashing back to earth in recent months. Some companies whose stocks have fallen by half or more in the past year, including Zoom and DocuSign, are taking action to make up the difference for employees, including... Thousands of tech employees are reeling as the value of their stock compensation, which soared in...

The PlayStation 5 console, which will be required for the PlayStation VR2 headset. Credit: Sony.

The PlayStation Chip Squeeze; Meta’s Earnings Anticipation

By Mathew Olson · Feb 2, 2022 11:00am PST

The chip shortage is taking a bite out of Sony’s PlayStation 5 business. Sony Corp today lowered its forecast for the console’s sales in the fiscal year that ends next month by 22%, to 11.5 million, guaranteeing the current generation console will badly trail its predecessor in total sales until supply constraints ease up. And that could become... The chip shortage is taking a bite out of Sony’s PlayStation 5 business. Sony Corp today lowered...

Netflix co-CEO Reed Hastings.

Why Netflix Needs to Buy Another Streaming Service

By Martin Peers · Feb 2, 2022 6:00am PST · 4 comments

Netflix co-CEO Reed Hastings.

Why Netflix Needs to Buy Another Streaming Service

By Martin Peers · Feb 2, 2022 6:00am PST · 4 comments

If Netflix’s warning of sharply slower subscriber growth tells us anything, it’s that Reed Hastings needs a new formula. The Netflix co-founder built the company into the leading video-streaming firm with a low-priced offering in a new market. But Netflix is now the priciest offering in an extremely crowded market. Without a change... If Netflix’s warning of sharply slower subscriber growth tells us anything, it’s that...

Solana Labs. Photo Credit: AP.

Solana Gains Ground With Listing on Coinbase; India to Launch Digital Currency and Tax Digital Assets

By Akash Pasricha · Feb 1, 2022 5:50pm PST · 3 comments

The field of blockchain networks vying to compete with Ethereum is getting increasingly crowded. But Solana, which aims to beat Ethereum on transaction speed and cost, has gained more ground than most over the past week. On Monday, Coinbase listed Solana-based tokens on its cryptocurrency exchange for the first time. That move follows ... The field of blockchain networks vying to compete with Ethereum is getting increasingly crowded....

Alphabet CEO Sundar Pichai. Photo by Bloomberg.

Alphabet's Boom Time

By Martin Peers · Feb 1, 2022 5:00pm PST · 1 comment

It was the best of times, it was the worst of times for Alphabet in 2021. Amid a multifront regulatory assault levied against the company, Alphabet today reported a solid fourth quarter that brought revenue for the full year to $257 billion. That number was 41% higher than what it reported for 2020. The company has not grown that fast since... It was the best of times, it was the worst of times for Alphabet in 2021. Amid a multifront...

Alphabet CEO Sundar Pichai. Photo: Bloomberg

Creator Economy

YouTube’s Ad Revenue Growth Slows; A16z Leads Funding for Launch House

By Kaya Yurieff · Feb 1, 2022 4:44pm PST

YouTube ad revenue growth has slowed over the past three quarters. That may sound alarming for the YouTube creators who make significant income from ads running on their videos. But the rate is coming down from pandemic-jostled year-ago periods and was bound to fall. Here’s a look at what happened, and what else Alphabet execs said about the... YouTube ad revenue growth has slowed over the past three quarters. That may sound alarming for...

Gopuff, Like Instacart, Is Dreaming of an Amazon-Like Ad Business

By Berber Jin, Mark Di Stefano and Sahil Patel · Feb 1, 2022 11:22am PST

Gopuff, Like Instacart, Is Dreaming of an Amazon-Like Ad Business

By Berber Jin, Mark Di Stefano and Sahil Patel · Feb 1, 2022 11:22am PST

Amazon built a $24 billion U.S. ad business by selling ad spots on its marketplace to merchants. Gopuff hopes to follow in its footsteps. The money-losing rapid-delivery startup is ramping up its ad sales efforts in hopes of strengthening its finances ahead of a possible public listing, a person with direct knowledge of the matter said. Gopuff... Amazon built a $24 billion U.S. ad business by selling ad spots on its marketplace to merchants....

The exterior of an Apple retail store. Photo: Bloomberg.

Apple May Warm to WebXR; What’s Next In Games and Metaverse M&A?

By Mathew Olson · Feb 1, 2022 11:00am PST

AR/VR developers, take note: new evidence suggests Apple will support the WebXR standard both in its Safari browser and on its upcoming headset. Such a move would help shift development for AR/VR further away from a discrete app model and toward something a bit more open like the old web (or even, yes, like the m-word everyone is throwing around... AR/VR developers, take note: new evidence suggests Apple will support the WebXR standard both in...

Art by Haejin Park

How Tiger Global Found Its Winning Strategy

By Sebastian Mallaby · Feb 1, 2022 9:00am PST

The invention of the growth-equity business began with a phone call. A young analyst named Scott Shleifer had recently joined Tiger Global, a small New York hedge fund. In the summer of 2002, a friend got in touch. “My work is going very poorly,” Shleifer told him. His mission was to scope out hedge-fund investments in semiconductors... The invention of the growth-equity business began with a phone call. A young analyst named Scott...

Microsoft’s ‘Netflix for Games’ Could One Day Tame Yo-Yoing Gaming Revenue

By Nick Wingfield · Feb 1, 2022 6:00am PST

Microsoft is buying Activision Blizzard for $68 billion—the biggest deal in the software giant’s history—in large part to help it supercharge a Microsoft subscription game service that could shake up how people pay for console games. That service has a long way to go before it transforms Microsoft’s games business,... Microsoft is buying Activision Blizzard for $68 billion—the biggest deal in the software...

FTX CEO Sam Bankman-Fried. Photo: Bloomberg

What FTX’s Latest Raise Says About the Private Market

By Akash Pasricha · Jan 31, 2022 5:11pm PST

FTX CEO Sam Bankman-Fried. Photo: Bloomberg

What FTX’s Latest Raise Says About the Private Market

By Akash Pasricha · Jan 31, 2022 5:11pm PST

Another week, another fundraising from a company with FTX in its name. The Bahamian cryptocurrency exchange FTX closed a $400 million round on Monday, valuing the company at $32 billion. The announcement came just days after the company’s American affiliate, FTX US, closed a $400 million round at an $8 billion valuation.They represent two more... Another week, another fundraising from a company with FTX in its name. The Bahamian...

Spotify CEO Daniel Ek. Photo by Bloomberg.

Spotify’s Real Challenge

By Martin Peers · Jan 31, 2022 5:00pm PST · 1 comment

If the past few days have proved anything, it’s that reporters pay more attention to Neil Young and Joni Mitchell than do investors. After rising 13% today amid a broader market upswing, Spotify shares are now back to where they were trading before Neil Young pulled his music off the service last week in protest over its hosting of Joe Rogan and... If the past few days have proved anything, it’s that reporters pay more attention to Neil Young...

YouTube CEO Susan Wojcicki. Photo: Bloomberg

Creator Economy

What to Expect From Social Media Earnings This Week

By Kaya Yurieff · Jan 31, 2022 3:20pm PST

This week brings a parade of fourth-quarter earnings from major tech companies. Here’s what we’re paying close attention to in the creator-sphere. Alphabet (Tuesday)Google parent company Alphabet began breaking out YouTube’s advertising revenue for the first time in February 2020. We’ll be watching to see if YouTube's revenue growth sped up... This week brings a parade of fourth-quarter earnings from major tech companies. Here’s what we’re...

Jokr advertisements in Manhattan. Photo: AP

Instant Delivery Startup Jokr in Talks to Sell New York Operations

By Berber Jin · Jan 31, 2022 11:33am PST · 1 comment

Instant-delivery startup Jokr has initiated talks to sell its New York operations, which make up the bulk of its U.S. business, after encountering heavy losses in the city, said three people with direct knowledge of the matter. Jokr has reached out to several rivals, including Philadelphia-based Gopuff, Istanbul-based Getir and California-based... Instant-delivery startup Jokr has initiated talks to sell its New York operations, which make up...

A look at how Meta's avatars will be integrated into Instagram. Credit: Meta Platforms.

Meta’s Avatars Meet Instagram; Ubisoft’s Metaverse Missteps

By Mathew Olson · Jan 31, 2022 11:01am PST

A look at how Meta's avatars will be integrated into Instagram. Credit: Meta Platforms.

Meta’s Avatars Meet Instagram; Ubisoft’s Metaverse Missteps

By Mathew Olson · Jan 31, 2022 11:01am PST

Today, for the first time since the company’s rebranding, Meta Platforms announced a step forward for its metaverse ambitions that isn’t reliant on VR or AR. Meta’s avatar system—the tools it gives users to make 3D caricatures of themselves—is getting an update that brings the avatars into Instagram for the first time.What use are these avatars,... Today, for the first time since the company’s rebranding, Meta Platforms announced a step forward...

Art by Mike Sullivan

Vinod Khosla: “Stop Asking Me About the Markets”

By Vinod Khosla · Jan 31, 2022 9:00am PST · 4 comments

We in venture capital often get asked, “How is the market cycle affecting your investing?” And at times like this, with tech stocks now in correction territory, we get it more than ever. Here’s the answer: If you’re pursuing radical innovation, market cycles matter much less. Public market and hedge fund investors... We in venture capital often get asked, “How is the market cycle affecting your...

The People With Power at Stripe After COO Steps Back

By Kate Clark · Jan 31, 2022 6:00am PST · 1 comment

A public listing of online payments giant Stripe, which could occur as soon as this year, will be a major event on Wall Street. Stripe was valued at $95 billion in a March fundraising but is worth $225 billion or higher based on offers in the secondary market for private shares. That puts the spotlight on the core group of Stripe executives who... A public listing of online payments giant Stripe, which could occur as soon as this year, will be...

Left to right, Redwood Materials' JB Straubel, Northvolt's Paolo Cerruti and Peter Carlsson, American Battery's Ryan Melsert, and QuantumScape's Celina Mikolajczak. Photos: Bloomberg, Northvolt, ABTC, QuantumScape. Art by Mike Sullivan.

Meet the 12 Tesla Diaspora Members Building Battery Supply Chains That Carmakers Won’t

By Steve LeVine · Jan 30, 2022 2:00pm PST

Welcome back to The Electric! For months, I’ve been discussing the shortage and price spike in battery metals, and how it puts the U.S. and Europe at a sharp competitive disadvantage to China. But I have not mentioned a particular group of companies that’s attempting to tackle this problem. Today I profile these three companies and the... Welcome back to The Electric! For months, I’ve been discussing the shortage and price spike...

The Information Weekend: A Tech Shaman Rises in the Yucatan; a Guide to Surviving the Crypto Winter; and Why You Should Give ‘Cheer’ a Chance

The Information Weekend: A Tech Shaman Rises in the Yucatan; a Guide to Surviving the Crypto Winter; and Why You Should Give ‘Cheer’ a Chance

By Jon Steinberg · Jan 29, 2022 8:00am PST

The Information Weekend: A Tech Shaman Rises in the Yucatan; a Guide to Surviving the Crypto Winter; and Why You Should Give ‘Cheer’ a Chance

The Information Weekend: A Tech Shaman Rises in the Yucatan; a Guide to Surviving the Crypto Winter; and Why You Should Give ‘Cheer’ a Chance

By Jon Steinberg · Jan 29, 2022 8:00am PST

Hi, welcome to your Weekend!If you’re feeling some post-New Year’s malaise right now, you’re not alone. It’s only natural amidst a volatile week on the stock market, the onset of a potential crypto winter, and the forecast (on the East Coast, at least) of snowpocalypse. But it’s good to know that you can ignore the doldrums and duck out to... Hi, welcome to your Weekend!If you’re feeling some post-New Year’s malaise right now, you’re not...