Investing.com – Here’s your weekly Pro roundup with the biggest headlines from a big tech earnings week: Reactions to Apple’s Vision Pro Launch; SEC lawsuit against Coinbase; GM’s collaboration with Tesla; Amazon Prime’s Next Ad-Supported Tier; and Netflix’s win in the fight against password sharing.
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Blurry response to Apple Vision Pro
Wall Street reacted cautiously to Apple’s (NASDAQ: ) highly anticipated launch of its Vision Pro mixed-reality headset, which has a higher-than-expected price tag of $3,499.
For example, said CFRA
While we’re impressed with the best-in-class hardware/immersive capabilities, we think AAPL has failed to establish why this is a must-have device for consumers, at least so far. Still, the company’s entry into the space and increased developer engagement will help support adoption and new use cases over time.
Goldman Sachs said it was buoyed by long-term growth prospects, “but short-term financial contributions are expected to be limited,” especially given high retail prices and media reports that it could be sold for cash.
BofA also said it expects “adoption to take time.”
Apple shares initially fell on news of the launch, but recovered somewhat to end the week down just 0.9%. Shares have gained about 45% year to date.
Coinbase sued the SEC
Cryptocurrency exchange Coinbase (NASDAQ: ) took a dive earlier in the week after being sued by the Securities and Exchange Commission (SEC) for alleged violations of US securities regulations.
“We allege that Coinbase, despite being subject to securities laws, has confused and unlawfully offered exchange, broker-dealer and clearinghouse functions,” SEC Chairman Gary Gensler said in a press release.
The exchange is accused of making billions of dollars by “illegally facilitating the purchase and sale of crypto-currency securities.”
BofA reiterated its Underperform rating on the stock and said:[W]I believe these recent developments illustrate ongoing regulatory headwinds that not only threaten the share [Coinbase]business model, but is also a major management distraction.
Meanwhile, Cathie Wood’s Ark Invest increased its stake in the company after shares hit near five-month lows. Wood has repeatedly expressed confidence in Coinbase and the broader crypto industry, pointing to $1 million. USD long-term target price, believing it to be an effective hedge against inflation.
Coinbase shares fell nearly 16% for the week and also lost ground on Monday after the SEC sued Binance. It’s still up almost 60% year over year.
General Motors will participate in Tesla’s charging network
General Motors (NYSE: ) CEO Mary Barra confirmed this week that the company is preparing to integrate the North American Charging Standard (NACS) connector developed by Tesla (NASDAQ: ) into its electric vehicles starting in 2025.
The announcement, made during a live meeting on Twitter Space with Tesla CEO Elon Musk, mirrors a similar revolution that occurred late last month, when neighboring rival Ford Motor (NYSE: ) also announced a partnership with Musk’s Tesla.
These partnerships allow Ford and GM customers to access Tesla’s extensive network of chargers.
The next day, White House officials handed Tesla another win when they announced that the company’s Superchargers would be eligible for a share of billions in federal funds if the chargers also include CCS connections.
Following the GM news, Wedbush raised its price target on Tesla to $300 from $215, reiterated its “Outperform” rating and added the stock to Wedbush’s “Best Ideas List.”
GM rose more than 5% for the week to $36.23. Tesla rose 4% to $244.40, adding to its year-to-date gain of more than 117%.
Amazon to start promoting Prime Video tier: report
Amazon (NASDAQ: ) plans to launch a tier of ad-supported Prime Video streaming services to fuel growth in entertainment, the Wall Street Journal reported Wednesday, citing unnamed sources.
The plans to launch an ad-supported tier of Prime Video’s streaming service follow similar moves by rivals including Netflix (NASDAQ: ) and Disney (NYSE: ) as streaming platforms look for ways to support spending on content in a battle for dominance.
Meanwhile, Warner Bros Discovery (NASDAQ: ) and Paramount (NASDAQ: ) are reportedly in talks with Amazon to include ad-supported streaming services through Amazon’s Prime Video channels.
Analysts at Bank of America believe an ad-supported tier makes sense for Prime Video.
“Amazon’s user data, existing relationships with retail advertisers, and large ad sales teams provide a competitive advantage for monetizing ad traffic.” In addition, tiering could allow Amazon to increase fees for the basic ad-free tiers, which would have been the result of recent increases in various fees. Prime and 3P services,” the customer note reads.
Analysts also expect Amazon to continue to push for video content rather than retreat to boost usage.
Warner Discovery and Paramount closed the week down 18% and 5%, respectively, following the news. Amazon ended the week almost in the black.
Netflix is getting new subscribers by not sharing passwords
Netflix soared after The Wall Street Journal reported that a crackdown on password-sharing in the U.S. was driving new subscribers in its first few days.
Based on data from Antenna, the WSJ said that as of May 25. until May 28 the streaming giant received more new US subscriptions shortly after it notified users in the US and other countries of the restrictions than in any other four-day period since Antenna began compiling. data in 2019
The jump in subscribers shows that Netflix’s decision to end password sharing is paying off.
The move to end password sharing means that users who use the account outside of the same household must pay an additional $7.99 per month for viewing. Additionally, the number of additional members customers can add to their account is limited depending on the tier they pay for.
The stock is up just under 5% for the week and is up more than 40% for the year overall.
Senad Karaahmetovic, Sam Boughedda, Ambar Warrick and Michael Elkins contributed to this report.
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