Good morning, Quartz readers!
Here’s what you need to know
Russia sentenced a Meta executive in absentia to six years in prison. But company spokesperson Andy Stone won’t be locked up unless he decides to visit Russia after the conviction for “justification of terrorism.”
Elon Musk didn’t think Tesla’s recent layoffs were enough. The EV maker’s CEO would have preferred that 20% of staff (not 10%) were eliminated to match Tesla’s sales decline, according to Bloomberg. Meanwhile, investors are highly anticipating Tesla’s earnings today — here’s what to watch.
Boeing rival Airbus hired JetBlue’s former CEO to run its North American business. Robin Hayes will join the airplane maker as it looks to extend its dominance over Boeing.
One of Europe’s biggest banks is selling off Tesla, Apple, and Microsoft stock. DNB Asset Management, the investment arm of Norway’s largest bank, did double its holdings in another company, though: software firm Palantir. But DNB’s tech firesale is part of a larger trend (see below).
Big Tech’s profit momentum could “collapse,” UBS says
Apple, Amazon, Google parent Alphabet, Meta, Microsoft, and Nvidia got some words from UBS Global Research it probably didn’t want to hear yesterday.
UBS downgraded the six stocks from overweight to neutral not because of “doubts about AI,” but rather to acknowledge “the difficult comps and cyclical forces weighing on these stocks,” Jonathan Golub, chief U.S. equity strategist for UBS Investment Bank, wrote in a note. He added that the “surging earnings momentum” that sent the stock of these tech giants up over the last year is “collapsing.”
But none of this should really come as a surprise. Rather, it puts Big Tech’s recent gains in the context of what was just its latest profit cycle: the COVID-19 pandemic.
Meanwhile, Big Bank’s going all-in on AI
Banks have joined the AI race, and they’re making rapid progress to turn the burgeoning technology into a mainstay in their business practices.
Now financial institutions are introducing generative AI chatbots, hiring AI-focused executives, and adopting hundreds upon hundreds of new use cases with still more in development — all at a breakneck speed.
But one bank is far outpacing the rest. Quartz’s Rocio Fabbro reveals which one.
More from Quartz
🛫 Delta Air Lines is giving out raises and boosting starting pay
📉 Gold prices are dropping as tensions between Israel and Iran calm
📈 MicroStrategy, Coinbase, and other crypto stocks jump after the Bitcoin ‘halving’
👟 Nike is getting back to the basics after its exclusive sneaker bid fell short
🥶 Bitcoin is chilling at $66,000 after the ‘halving’
🛞 Bill Ackman says he’s ‘learned a lot’ from Elon Musk’s free-wheeling X
Surprising discoveries
A very rare Rolex watch was auctioned off for $3.5 million. That’s a record price for the split-second chronograph, of which only 12 were made.
John Deere is hiring a chief tractor officer. The farm equipment maker already has 90,000 followers on TikTok, but needs someone to post its first video.
North America’s historical marker signs aren’t always correct. In many instances they leave out key facts that shape the narrative of a place.
Smuckers’ Uncrustables sandwiches are nearly a $1 billion business. Who knew cutting off the crust was so lucrative?
JPMorgan no longer has a bank on Wall Street. Its latest branch closure ended more than 150 years of the bank being physically present at the birthplace of American finance.
Did you know we have two premium weekend emails, too? One gives you analysis on the week’s news, and one provides the best reads from Quartz and elsewhere to get your week started right. Become a member or give membership as a gift!
Our best wishes for a productive day. Send any news, comments, tractor TikToks, and PB&Js with the crust to talk@qz.com. Today’s Daily Brief was brought to you by Morgan Haefner.