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

Golden State Warriors' Andrew Wiggins (22) and Miami Heat's P.J. Tucker (17) in a game in March. Photo by AP

An NBA Battle Could Fuel SF-Miami Feud

By Nick Wingfield · May 27, 2022 5:00pm PDT

It has been a rough week for national news, so please excuse us for a little diversionary counterprogramming on this Friday before the long Memorial Day weekend. Several of tech’s most important cities have a great showdown looming! On Thursday, San Francisco’s Golden State Warriors clinched their first NBA finals berth in three years after... It has been a rough week for national news, so please excuse us for a little diversionary...

Photo: Bloomberg

VMware Should Not Expect a White Knight; Wish Sidelined as Dollar Stores Rally

By Scott Thurm · May 26, 2022 6:08pm PDT · 4 comments

Broadcom made official its plan to acquire VMware in a cash-and-stock deal worth around $61 billion. The deal underscores the degree to which CEO Hock Tan has transformed Broadcom from a maker of networking chips into a formidable player in enterprise software. The agreement includes a “go-shop” provision allowing VMware to solicit bids... Broadcom made official its plan to acquire VMware in a cash-and-stock deal worth around $61...

Photo by Bloomberg

Startups in Sequoia’s ‘Crucible Moment’; Musk Pledges More Funding for Twitter

By Laura Mandaro · May 25, 2022 5:34pm PDT

As we reported last night, Sequoia Capital has once again taken on the role of Silicon Valley soothsayer, releasing a 52-slide presentation on advice to startups, which it says face a “crucible moment” as the economy slows and central banks retract the monetary stimulus that kicked off the boom two years ago. In particular, the partners at... As we reported last night, Sequoia Capital has once again taken on the role of Silicon Valley...

A stock exchange monitor with Snap's share price in March. Photo by Bloomberg.

Snap Learns Not to Guesstimate Revenue Growth

By Martin Peers · May 24, 2022 5:30pm PDT

A stock exchange monitor with Snap's share price in March. Photo by Bloomberg.

Snap Learns Not to Guesstimate Revenue Growth

By Martin Peers · May 24, 2022 5:30pm PDT

Evan Spiegel certainly can’t complain that the market doesn’t listen to what he says. The Snap CEO’s warning on Monday about a worse-than-expected deterioration in second-quarter conditions brought down tech stocks across the board today, led by a 43% drop in Snap’s price. Is it heretical to suggest the market might be overreacting just a bit?... Evan Spiegel certainly can’t complain that the market doesn’t listen to what he says. The Snap...

Snap CEO Evan Spiegel. Photo by Bloomberg.

Snap Sends Shiver Through Ad Stocks

By Martin Peers · May 23, 2022 5:00pm PDT

Uh oh. Snap’s warning this afternoon that its second-quarter revenue and profits will be below what it projected just a few weeks ago, thanks to a faster than expected deterioration in macroeconomic conditions, is an ominous signal for the ad market. Snap had outperformed many of its digital ad peers, most obviously Meta Platform, Twitter and... Uh oh. Snap’s warning this afternoon that its second-quarter revenue and profits will be below...

Jonathan Ive. Photo by Bloomberg.

Apple’s Headset, a Fashion Fiasco in the Making?

By Nick Wingfield · May 20, 2022 5:00pm PDT

It’s hard to judge a product that hasn’t even been publicly acknowledged by the company making it, much less released. But let’s go ahead and be a little judgy of Apple’s mixed-reality headset anyway. After all, we got a bonanza of details about the secretive project in Wayne Ma’s terrific two-part series this week (click here for parts one and... It’s hard to judge a product that hasn’t even been publicly acknowledged by the company making...

Utah senator Mike Lee, who led the introduction of the bill into the Senate. Photo by Bloomberg

Google Breakup Bill Shows Real Threat Facing Tech

By Martin Peers · May 19, 2022 5:00pm PDT

It’s never easy to differentiate, amid the hubbub of the day, a news item with far-reaching ramifications from something that will disappear into the ether. That’s particularly the case when we’re talking about bills introduced into Congress, which much of the time never seem to go anywhere. But the introduction today of legislation that would... It’s never easy to differentiate, amid the hubbub of the day, a news item with far-reaching...

Jeff Bezos. Photo by Bloomberg.

As Amazon Stock Tanks, Bezos Makes Jokes

By Martin Peers · May 18, 2022 5:00pm PDT

Jeff Bezos. Photo by Bloomberg.

As Amazon Stock Tanks, Bezos Makes Jokes

By Martin Peers · May 18, 2022 5:00pm PDT

What is happening to our world? Not only is the stock market in free fall (again), but Jeff Bezos appears to have been infected by a Musk-like bug that causes business executives to lose their inhibitions on social media. Today, for instance, as Amazon stock was dropping 7%, the Amazon founder was tweeting about how he’s been working hard on his... What is happening to our world? Not only is the stock market in free fall (again), but Jeff Bezos...

Jonah Hill. Photo by AP

Musk-Twitter Drama Jumps the Shark

By Martin Peers · May 17, 2022 5:00pm PDT

We’re now at that part of the Elon Musk–Twitter drama where—as happens for some long-running TV shows—the plotline has gone off the rails. Of course, this isn’t a TV show, although there likely will be one, and I nominate Jonah Hill to play Elon Musk. And what seems off the wall is just life in Musk’s world. It’s a little like the alternate... We’re now at that part of the Elon Musk–Twitter drama where—as happens for some long-running TV...

Elon Musk. Photo by Bloomberg.

Musk Throws Shade at Twitter CEO (and Securities Rules)

By Martin Peers · May 16, 2022 5:00pm PDT · 1 comment

It’s day 43 in the Elon Musk–Twitter saga—and things are getting even weirder. Today we witnessed the bizarre spectacle of Elon Musk tweeting a poop emoji at Parag Agrawal after the Twitter CEO tried to clarify the company’s procedures for keeping spam bots at bay. A short time later, Bloomberg reported that Musk had told a private conference in... It’s day 43 in the Elon Musk–Twitter saga—and things are getting even weirder. Today we witnessed...

Elon Musk. Photo by Bloomberg.

Musk’s Latest Twitter Move May Not Be as Crazy as It Seems

By Martin Peers · May 13, 2022 5:00pm PDT

What would business journalists do without Elon Musk? It’s a Friday, after all, when business news tends to be scarce. So we appreciate Musk’s decision to liven up our day with his early morning tweets, declaring the Twitter acquisition to be “on hold” and then proclaiming his continued commitment to it. What’s going on? The simplest explanation... What would business journalists do without Elon Musk? It’s a Friday, after all, when business...

Masayoshi Son. Photo by Bloomberg.

SoftBank’s Masa Son Sobers Up

By Martin Peers · May 12, 2022 5:00pm PDT

Masayoshi Son. Photo by Bloomberg.

SoftBank’s Masa Son Sobers Up

By Martin Peers · May 12, 2022 5:00pm PDT

Here’s a life tip: If someone called Masayoshi Son comes knocking on your door offering to manage your money anytime soon, don’t let him in. In fact, call the police and ask them to escort him from the premises. Here’s a guy who, as head of SoftBank and its two Vision Funds, decided to spend $135 billion in investment capital when asset prices... Here’s a life tip: If someone called Masayoshi Son comes knocking on your door offering to manage...

Traders on the floor of the New York Stock Exchange last month. Photo by Bloomberg.

A Dethroned Apple and More Wall Street Porn

By Martin Peers · May 11, 2022 5:00pm PDT

How much more air can be let out of the tech balloon? News that Apple has lost its crown as the world’s most valuable company to oil behemoth Saudi Aramco symbolizes just how many investment dollars have fled the tech sector in recent weeks. But Apple’s fall from the top perch doesn’t come close to capturing the full extent of the recent value... How much more air can be let out of the tech balloon? News that Apple has lost its crown as the...

A Peloton store earlier this year. Photo by Bloomberg.

Peloton’s Covid Hangover Lingers

By Martin Peers · May 10, 2022 5:00pm PDT

How long does the average hangover last—24, 48 hours? It depends on the intensity of the drinking binge, of course. However long, it pales with the post-pandemic hangover many of the companies whose businesses boomed during the early part of the outbreak are going through, as we saw from Peloton’s March-quarter results today. The fitness... How long does the average hangover last—24, 48 hours? It depends on the intensity of the drinking...

Uber CEO Dara Khosrowshahi. Photo by Bloomberg.

What Uber CEO’s Cost-Cutting Memo Reveals

By Martin Peers · May 9, 2022 5:00pm PDT

The relentless stock market drop is starting to spook tech CEOs. Over the weekend, Shopify’s CEO Tobi Lütke, perhaps irritated by his stock’s 75% drop so far this year, questioned whether Wall Street analysts were held accountable for their work. Even more telling was Uber CEO Dara Khosrowshahi’s staff memo—first reported by CNBC—revealing his... The relentless stock market drop is starting to spook tech CEOs. Over the weekend, Shopify’s CEO...

Box CEO Aaron Levie. Photo by Bloomberg.

The Rare Winner and Many Losers of This Year’s Tech Stock Market

By Martin Peers · May 6, 2022 5:00pm PDT

Box CEO Aaron Levie. Photo by Bloomberg.

The Rare Winner and Many Losers of This Year’s Tech Stock Market

By Martin Peers · May 6, 2022 5:00pm PDT

Quick quiz: What’s one of the only tech stocks to have risen in price so far this year? (Leave aside the companies, like Twitter, that are getting bought.) If you guessed Box, give yourself a pat on the back. You’ve been paying attention. Yes, the enterprise software stock that was out of favor—to put it mildly—during the boom times has come... Quick quiz: What’s one of the only tech stocks to have risen in price so far this year? (Leave...

Elon Musk. Photo by Bloomberg.

What Is Musk’s Band of Twitter Backers Expecting?

By Martin Peers · May 5, 2022 5:00pm PDT · 1 comment

Say this for Elon Musk: He gets stuff done. His disclosure today that he has lined up $7.1 billion in investor commitments to help fund his Twitter bid, including a commitment from Saudi Prince Alwaleed bin Talal to roll over his current 4.5% stake in the company as Musk takes it private, should put to rest questions about whether the deal will... Say this for Elon Musk: He gets stuff done. His disclosure today that he has lined up $7.1...

Meta CEO Mark Zuckerberg. Photo by Bloomberg.

Layoffs, Hiring Freeze Spread Through Tech

By Martin Peers · May 4, 2022 5:00pm PDT

Things really are turning brutal for tech workers. We scooped the news today that Cameo laid off a quarter of its workforce, just the latest example of the layoffs spreading through tech. Also today, Business Insider reported that Meta Platforms has instituted a hiring freeze through the end of this year (more on that from us here), while The... Things really are turning brutal for tech workers. We scooped the news today that Cameo laid off...

Photo by Bloomberg.

Airbnb Cleans Up in Q1 While Lyft Stalls

By Martin Peers · May 3, 2022 5:00pm PDT

Talk about a tale of two startups. Two original members of the gig economy generation, Lyft and Airbnb, reported their first-quarter updates today. Both were hit by Covid-19 but are now performing very differently. Airbnb is going from strength to strength. Its first-quarter revenue was 79% above what it was in the first quarter of 2020, while... Talk about a tale of two startups. Two original members of the gig economy generation, Lyft and...

A Wall Street trader during last week's sell off. Photo by Bloomberg.

Covid Winner Stocks Enjoy a Day in the Sun

By Martin Peers · May 2, 2022 5:00pm PDT

A Wall Street trader during last week's sell off. Photo by Bloomberg.

Covid Winner Stocks Enjoy a Day in the Sun

By Martin Peers · May 2, 2022 5:00pm PDT

Uh-oh, put that mask back on: The stock market is acting like Covid-19 is back. Amid a topsy-turvy day on the stock market, when a big sell-off gave way to a modest rally, one group of companies rallied strongly—the Covid winners. Zoom Video, Pinterest, Peloton, Spotify, Shopify, Roku and Netflix—all of which got pummeled mercilessly in recent... Uh-oh, put that mask back on: The stock market is acting like Covid-19 is back. Amid a...