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Your Mistakes Have Been Priced In [Read It And Eat 24-04-2025]


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What do you do when the market has already priced your failures? You make like yeast and rise! This was Tesla’s mantra coming into this earnings call, making any new news to cause its share price to rise. ChatGPT may purchase Google Chrome if it comes to it. Meta faces another fine from the EU, and is Nestle an untapped market index? All this and more in today’s Read It And Eat.


Major Headlines

  • OpenAI Open to Buying Chrome if Court Forces Google Breakup, ChatGPT Chief Says

  • OpenAI would be interested in acquiring Google’s Chrome browser if a federal court forces its divestiture, ChatGPT chief Nick Turley said during a hearing on Tuesday. Turley, called as a witness by the Justice Department, confirmed that OpenAI would consider a bid, joining what he described as a likely long list of potential buyers. His comments came during a trial aimed at determining what changes Google must make after being found guilty of monopolizing the search market.

    Turley explained that while ChatGPT is already available through a Chrome extension, deeper integration with the browser could unlock a “really incredible experience” for users—one centered around AI from the ground up. He pointed to Chrome’s reach as a major advantage in distributing AI tools, something OpenAI currently struggles with. While the company has a partnership with Apple, attempts to work with Android manufacturers have been less successful, due in part to Google’s dominance in the space. “We never got to a point where we could discuss concrete terms,” Turley said, referring to negotiations with Samsung. He added that Google’s financial leverage made it difficult for OpenAI to compete. Turley expressed concern that major tech firms could ultimately shut out smaller players like OpenAI from key platforms such as browsers and app stores. “Real choice drives competition,” he emphasized. “Users should be able to pick.”

    The Justice Department is asking the court to consider breaking up Google by requiring it to sell Chrome, license search data to competitors, and end exclusive deals on devices. Google argues that such remedies would harm consumers and U.S. tech leadership. If approved, a forced sale of Chrome would mark the first major breakup of a U.S. tech company since AT&T in the 1980s. CBNC


  • Tesla Reports Weak Q1, But Stock Rises Anyway

  • Tesla’s first-quarter results came in well below expectations, with automotive gross margins dropping to 12.5%—the lowest in over a decade—and adjusted earnings falling nearly 40% short of analyst forecasts. The company managed positive free cash flow, but only by pulling financial levers and slashing capital spending. Despite the weak numbers, Tesla shares rose nearly 5% in after-hours trading. Some bad news was already priced in, particularly as sales were impacted by planned factory upgrades. Still, with the stock trading at 85x forward earnings, the reaction surprised many.

    CEO Elon Musk opened the earnings call with political commentary, then noted he’d slightly scale back his involvement in his "Department of Government Efficiency" initiative. His increasingly vocal political stance—especially support for Trump—may be weighing on Tesla’s brand, particularly in Europe and key U.S. markets.

    But the real issue goes beyond politics. Tesla’s slowing growth, especially in states like California, had already started well before recent elections. The pressure is mounting, and investors will be watching closely to see if Q2 brings a meaningful rebound. Bloomberg


  • EU Fines Meta and Apple €700M for Breaking Antitrust Laws

  • The European Union has handed down a combined €700 million ($877 million) fine to tech giants Apple and Meta, marking the first major enforcement under the EU’s new Digital Markets Act (DMA). The penalties reflect the bloc’s broader push to rein in Big Tech’s dominance and enforce fairer competition across digital markets. Apple pushed back strongly, calling the decision “unfair” and harmful to user privacy and product security. In a statement, the company said the ruling forces it to “give away our technology for free” and argued it compromises the integrity of Apple’s products. Meta, meanwhile, accused the European Commission of singling out successful American firms, claiming the decision imposes what amounts to a “multi-billion-dollar tariff” and would result in users receiving an “inferior service.”

    The decision sparked swift reactions across the industry. Epic Games CEO Tim Sweeney praised the move, calling it a “win for developers worldwide,” and urged the U.S. to follow suit with its own market reforms. German lawmaker Andreas Audretsch, however, felt the penalties didn’t go far enough, arguing that higher fines and stricter enforcement are needed to stand up to growing pressure from U.S. tech firms.

    Others voiced concerns over the direction of EU regulation. Daniel Friedlaender of the Computer & Communications Industry Association criticized the DMA’s rollout as unpredictable and overly politicized, warning it could hinder user experience and business growth in the EU. Meanwhile, privacy experts noted that the fines come at a delicate time in transatlantic tech relations, with the U.S. closely monitoring how European laws are applied to American companies. Wall Street Journal


  • Nestlé Tops Q1 Sales Forecasts, Flags Uncertainty Around Tariff Fallout

  • Nestlé kicked off the year with stronger-than-expected organic sales growth, thanks in part to price hikes on popular products like Kit-Kat and Nescafé. But while the Swiss food giant is off to a solid start, it’s still unsure how recent U.S. tariffs might affect business in the months ahead.

    The company reported a 2.8% rise in organic sales for the first quarter, edging past analyst expectations of 2.5%. CEO Laurent Freixe said Nestlé remains confident in its 2025 outlook, sticking with projections for improved organic growth and an underlying operating profit margin of at least 16%. However, he noted that while the direct impact of tariffs seems manageable for now, the ripple effects on consumers, currencies, and commodities are harder to predict.

    Nestlé CFO Anna Manz pointed out that some key areas — such as bottled water imports, espresso capsules, and select ingredients — could see tariff-related pressure. Still, she reassured investors that over 95% of the company’s U.S. sales are produced locally, which should help cushion any major blows. Overall, Nestlé’s pricing strategy helped lift sales, with a 2.1% price increase beating forecasts. While volume growth came in slightly below expectations at 0.7%, total reported sales reached 22.6 billion Swiss francs, just ahead of the 22.5 billion franc forecast. As global markets remain uncertain, Nestlé appears focused on staying flexible hand ready for whatever comes next. Financial Times


Minor Headlines


Gen Z Word of the Day

Rent-Free

If something or someone is living "rent-free" in your head, that means you can't stop thinking about it/them.


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