Microsoft’s earnings were down: the news about PCs was encouraging, while Azure unsurprisingly felt the pain later than AWS. Anyone competing with Office 365, though, is in worse shape.
Intel’s earnings are brutal, but it is a brutal result years in the making. That mismatch between decisions and consequences probably explain why Intel continues to pay a dividend despite its need for cash.
Tech’s layoffs are popularly thought to be because of over-hiring during the pandemic, but in fact there isn’t much evidence that tech over-hired based on past rates. Then, Microsoft still has a metaverse strategy, it just doesn’t involve hardware.
An interview with The Air Current’s Jon Ostrower about Southwest’s meltdown, being an independent publisher, why there isn’t supersonic passenger flights, and building a hardware product.
Introducing the Greatest Of All Talk, a new addition to the Stratechery Plus bundle. Then, more on Twitter and Microsoft/OpenAI, plus the Financial Times covers Apple and China.
No one should believe anything that SBF says: the one thing we know for sure is that FTX committed fraud. Then, Sharp China covers China’s protests and the rocky path to re-opening.
Two Apple updates about ATT and China, then, more on Twitter’s cash flow situation, and Elon Musk discovers that freedom is often structural
Apple and Amazon’s earnings, particularly the color around their advertising, suggests that there is no real replacement for Facebook ads
Google search continues to be a source of strength, while YouTube’s weakness is likely because of ATT. Meanwhile, Shopify is suffering from mistaken forecasts, even as ATT’s impact becomes clearer.
Zero-COVID is possible, but few of us in the West are willing to pay the costs; the exact same reasoning applies to free speech; in both cases China-lite is the worst possible strategy.