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Google CEO Sundar Pichai is expected to take the stand on Wednesday morning at a trial in Washington where antitrust enforcers seek an order forcing the company to sell its Chrome web browser and take other measures to boost competition among online search providers. Pichai will testify in the Alphabet unit’s defense against proposals by the U.S. Department of Justice that the company has said would cause unintended harm to browser developers, smartphone makers and internet users. The outcome of the case could fundamentally reshape the internet by potentially unseating Google as the go-to portal for information online. The DOJ and a broad coalition of state attorneys general are pressing for remedies to restore competition even as search evolves to overlap with generative AI products such as ChatGPT. Prosecutors are concerned that Google’s dominance in search could extend to AI. U.S. District Judge Amit Mehta ruled last year that Google, the site and app where most U.S. internet users search for information, “has no true competitor.” Google maintained its monopoly in part by paying billions of dollars to companies including Apple, Samsung, AT&T and Verizon to be the default search engine on new mobile devices, the judge said. The DOJ wants the judge to end those payments and require Google to share search data with competitors. Google has said the proposals would give away its hard work, and jeopardize its users’ privacy and endanger smaller companies like Mozilla, the developer of the Firefox browser, that rely on Google for revenue. The company recently loosened its agreements to allow device makers and carriers to pre-install other search and AI apps, according to evidence shown at trial. Google has said it plans to appeal once the judge makes a final ruling. Jody Godoy, Reuters
Category:
E-Commerce
Shares in coffee giant Starbucks Corporation (Nasdaq: SBUX) are down significantly in premarket trading this morning after the chain announced its Q2 2025 earnings results yesterday after the bell. Those results were described as disappointing by Starbucks’s own CEO, Brian Niccol, and demonstrate that the companys turnaround efforts still have a long way to go. Here’s the latest on Starbucks and what has investors nervous: Starbucks Q2 2025 results below expectations In January of this year, Starbucks announced its Q1 2025 earnings, in which it beat Wall Street expectationsa small win for the company and for Niccol, who joined as CEO from Chipotle Mexican Grill in the summer of 2024. But its not a win that was repeated in the companys second quarter. Yesterday, Starbucks reported earnings for its Q2 of fiscal 2025. That quarter had 13 weeks in it and ended on March 30. Unlike the previous quarter, Starbucks did not beat Wall Street expectations. Wall Street analysts had expected revenue of $8.83 billion and an adjusted earnings per share (EPS) of 49 cents, according to Yahoo Finance. Instead, Starbucks posted the following: Revenue: $8.76 billion Adjusted EPS: 41 cents But the revenue and EPS miss isnt what seems to be rattling investors most. That would be Starbuckss disappointing comparable sales results. Comparable sales are a metric that looks at the sales of the same stores that have been open for at least a year. If comparable sales are increasing, thats a good sign as it means the same stores are bringing in more customers, larger orders, or both. But if comparable sales are down, it suggests lower foot traffic or that customers are reducing the amount of money they spend at the store. Unfortunately for Starbucks, comparable sales in U.S. stores that have been open for at least a year fell during Q2and it was the fifth straight quarterly fall of U.S. comparable sales. Starbucks says that U.S. comparable store sales declined 2% during the quarter, and U.S. comparable transactions were down 4%. It was a little better in China, however, which is the companys second-largest market after the United States. In China, comparable sales were at least flat quarter-over-quarter. But you would be right to wonder if flat comparable sales in China could get worse, as consumer sentiment across the globe is increasingly becoming anti-American due to President Trumps trade wars, which are leading to economic strife with America’s largest trading partners. Niccol seemed keen to paint a rosy picture of Starbucks’s operations and future in the country. As noted by Yahoo Finance, the Starbucks CEO said on the companys earnings call yesterday, I want to be clear that we remain committed to China for the long term. We see great potential for our business there in the years ahead, and remain open to how we achieve that growth.” Back to Starbucks”. . . or not Late last summer, Niccol was brought on board at Starbucks as its new CEO in order to turn the struggling chain around. As part of that turnaround, Niccol unveiled the Back to Starbucks plan in which he implemented a number of changes, including a simplified menu and a controversial no-loitering policy. However, Starbuckss latest Q2 results and the companys continued decline in comparable U.S. sales will leave many industry watchers wondering just how well that Back to Starbucks plan is working. Niccol himself acknowledged that Starbuckss Q2 results are disappointing, but quickly noted that “behind the scenes we made a lot of progress and have real momentum with our ‘Back to Starbucks’ plan, according to Yahoo Finance. Niccol also addressed the plan directly in the companys official earnings release, saying, My optimism has turned into confidence that our ‘Back to Starbucks’ plan is the right strategy to turn the business around and to unlock opportunities ahead. He added: “Improving transaction comp in a tough consumer environment at our scale is a testament to the power of our brand and partners getting ‘Back to Starbucks.’ We are on track and if anything, I see more opportunity than I imagined. SBUX stock sinks However, while Niccol might see more opportunity, investorsfor today at leastseem to have a hard time imagining the same. As of the time of this writing, Starbucks stock is now down over 8% in premarket trading to $78 per share. SBUX shares had closed yesterday up about 1.1% to $84.85 before the company announced its Q2 results. Year to date, Starbucks shares were already down over 7% as of yesterdays closebefore todays further 8% premarket drop. As of yesterdays close, shares were also down nearly 4% over the past 12 months.
Category:
E-Commerce
The NFT market crash has a long tail. In the late 2010s, crypto enthusiasts and web3 advocates celebrated the arrival of digital art. Non-Fungible Tokens, they argued, could offer the permanence and investment value of a traditional painting. Not anymore: even amid President Trumps memecoin surge, NFT valuations continue to hit new lows. The market has been in free fall for nearly two years, with no bottom in sight. While NFTs may be dead, NFT lawsuits are alive and well. Corporate suppliers are beginning to regret their blockchain experiments. The NFT lawsuit boom Most recently, buyers of Nikes NFTs sued the retailer for $5 million. Nike had acquired the virtual sneaker shop RTFKT in 2021, generating nearly $200 million in NFT sales. But in 2024, Nike began winding the operation down. The lawsuit alleges that the shutdown destroyed demand for RTFKTs NFTs, effectively causing “the rug to be pulled out from under” buyers, according to Reuters. Some RTFKT NFTs even briefly displayed error messages during the turmoil. The online sportsbook DraftKings also ventured into the NFT space, only to shut down its Reignmakers NFT marketplace in July 2024. Meanwhile, a 2023 lawsuit alleged that DraftKings sold NFTs as unlicensed securities, reaping the full benefit of initial sales and a 5% commission on secondary sales. That case has since been settled, with DraftKings agreeing to pay out $10 million in February to those who purchased NFTs between 2021 and the shutdown. NFT buyers have also gone after the celebrities who hawked their fast-declining digital assets. Shaquille ONeals 2023 lawsuit recently concluded, with the former NBA player agreeing to pay out $11 million (plus $2.9 million in attorneys fees) to buyers of his Astrals Project NFTs. Meanwhile, the MAGA-friendly Nelk Boys are still battling their own lawsuit, which claims the YouTubers promised additional perks with their NFT sales that were never fulfilled. For corporations and celebrities, NFTs were a side business. But for companies dedicated solely to producing digital assets, these lawsuits are far more threatening. Dapper Labswhich partners with companies like Disney and the NFL to build branded NFTsrecently settled for $4 million over claims that its NBA Top Shot moments were unregistered securities. Yuga Labs, meanwhile, has been stuck in court for years fighting copyright battles over its Bored Ape Yacht Club. Recently, it even petitioned for access to a copying artists crypto wallet. How NFTs became a bad corporate bet Just a few years ago, major companies from Nike to Coca-Cola were racing to launch web3 ventures. Some are still ongoing; many have flamed out. And with the barrage of lawsuits now hitting NFT suppliers, these blockchain bets are looking increasingly risky. They may also fail to deliver value. NFTs were meant to serve as brand extensionsespecially for luxury companies, which sold highly expensive goods in digital form. But according to a recent study in the Journal of the Association for Consumer Research, NFT availability may actually have a negative effect on consumer sentiment. The researchers found that for goods with web3 iterations, the physical counterparts were perceived as less luxuriousand thus less worth spending on. NFTs have lost their value to major companies. Theyre not effective brand extensions, theyre not sustainable investments, and theyre barely even good cash grabs anymore. All theyre left with is a mess of lawsuits.
Category:
E-Commerce
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