Tesla Earnings, Apple in China, TikTok's Bill | Bloomberg Technology

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Apple

Apple reported a 19% decline in sales in China during the first quarter, its worst start since the COVID-19 pandemic.
Apple's iPhone sales in China are reportedly down by 15% according to Counterpoint Research, while domestic handset makers are gaining market share.
Apple is preparing to launch a significant revamp of the iPad, including new versions of the iPad Air, with a video event scheduled for May 7th.
Apple's global shipments are down about 10%, which is already reflected in the current stock price.
Analysts expect a 5% decrease in overall revenues for the current quarter but a 2% growth in the next quarter.

The technology sector, particularly the "Magnificent Seven" companies including Tesla and Apple, is facing challenges such as China weakness, competition from China, and concerns about product updates.
Valuations for these companies may be higher than what investors are willing to pay given their lower growth prospects.
If the mega-cap companies fail to meet expectations, there could be a sell-off in the market, similar to what was seen after the recent inflation report.
Investors are looking for both valuation and future growth potential in these companies, with a focus on traditional fundamentals such as earnings growth and free cash flow.

Artificial intelligence (AI) continues to be a tailwind, but investors want to see tangible results and revenue growth from AI investments.
Adobe is introducing more generative AI tools to Photoshop, enabling users to create content more efficiently and quickly.
Adobe plans to integrate text-to-video generation capabilities into its creative applications, similar to platforms like SORA, and expects to launch its model later this year.
Perplexity AI has raised $62.3 million in funding, valuing the company at over $1 billion. Their AI chatbot summarizes search results, cites sources, and refines queries for better responses.

Spotify reported strong earnings growth and subscriber growth in the first quarter, driven by cost management and increased prices.
Investors are optimistic about Spotify's ability to generate revenue and earnings growth while managing costs.
Spotify is focusing on audio content, including audiobooks, and has seen positive adoption of its audiobook offering.

SAP reported record growth in its backlog as it migrates customers from legacy software to the cloud and offers AI services.

Elon Musk's social network, X, has been ordered by an Australian court to remove footage of a recent terrorist attack until a second hearing to determine the validity of a removal notice.
Elon Musk's social platform, X, is launching a TV app that will be available on most smart TVs soon.
Tesla's earnings call is highly anticipated, and a "Tesla Earnings Bingo" game is being played to guess the keywords that Elon Musk might mention during the call.
Elon Musk is leaning into Robotaxi as a potential game-changer to separate Tesla from other electric cars.

The US government is considering a $95 billion aid package that could lead to a nationwide ban on TikTok.
TikTok faces a potential ban in the US if its Chinese owner, ByteDance, does not divest its stake within a year, according to a bill being considered by the US Senate.
TikTok is under regulatory focus in the EU, with the E.U. issuing a 24-hour deadline for a risk assessment of their new app.
TikTok faces potential fines of up to 1% of its total annual income for violating the new content law.