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Top Business and Tech News for May 27, 2023
Meta Platforms reports first-quarter earnings
Twitter sues Elon Musk for breach of contract
Apple unveils new MacBook Air with M2 chip
Amazon raises Prime membership prices in the US
Netflix loses subscribers for the first time in over a decade
Meta Platforms Reports First-Quarter Earnings
Meta Platforms, the parent company of Facebook, reported first-quarter earnings on Wednesday. The company missed analyst expectations on both revenue and earnings per share. Meta's revenue was $27.91 billion, down 2% from the same quarter last year. Earnings per share were $2.72, down 21% from the same quarter last year. Meta blamed the decline in revenue on a number of factors, including the war in Ukraine, Apple's privacy changes, and increased competition from TikTok.
Twitter Sues Elon Musk for Breach of Contract
Twitter filed a lawsuit against Elon Musk on Tuesday, alleging that he breached the contract he signed to buy the company. Twitter is seeking to force Musk to complete the $44 billion acquisition. Musk has argued that he is not obligated to buy Twitter because the company has not provided him with enough information about its bot accounts.
Apple Unveils New MacBook Air with M2 Chip
Apple unveiled a new MacBook Air on Tuesday, powered by the company's new M2 chip. The new MacBook Air is thinner and lighter than the previous model, and it has a new design with a larger, brighter display. The M2 chip is said to offer up to 18% faster CPU performance and up to 35% faster GPU performance than the M1 chip. The new MacBook Air starts at $999.
Amazon Raises Prime Membership Prices in the US
Amazon is raising the price of its Prime membership in the US. The new price for an annual Prime membership is $139, up from $119. The new price for a monthly Prime membership is $14.99, up from $12.99. Amazon says the price increase is necessary to offset the costs of providing Prime members with free two-day shipping, streaming video, and other benefits.
Netflix Loses Subscribers for the First Time in Over a Decade
Netflix lost 200,000 subscribers in the first quarter of 2023, the first time the company has lost subscribers in over a decade. Netflix blamed the decline in subscribers on a number of factors, including the war in Ukraine, increased competition from other streaming services, and password sharing. Netflix is raising prices in a number of countries in an effort to offset the decline in subscribers.
In Other News
The Federal Reserve raised interest rates by 0.75%, the largest increase since 1994.
The US economy added 372,000 jobs in June, beating expectations.
The Consumer Price Index rose 8.6% in May, the highest increase in 40 years.