Top stories today:

1. Microsoft’s revenue +17% to $61.9B in quarter
2. Alphabet’s revenue +15% to $80.5B, op. margin + 7 p.p. to 32%
3. ByteDance denies reports it will sell TikTok U.S.
4. xAI now raising $6B at $18B pre-money valuation, from $3B at $15B
5. GDP slows to 1.6% in Q1, as core price index accelerates to 3.7%

0. Data and calendar

1. Microsoft’s revenue +17% to $61.9B in quarter, as operating margin +2 p.p. to 45%

• Stock +4% in the pre-market.

Azure and cloud led revenue growth, with the Xbox division outperforming due to the Acvitision acquisition

2. Alphabet’s revenue +15% to $80.5B, as operating margin +7 p.p. to 32%

Growth was seen across the board in Search, YouTube, and Cloud

The Google parent announced a $70B stock buyback and a $0.20 cash dividend, leading the stock +12%

• Disclaimer: we’re shareholders.

4. ByteDance denies reports it will sell TikTok U.S.

• “ByteDance doesn't have any plans to sell TikTok.”

• Fighting the law in U.S. courts will be the company’s initial strategy.

• TikTok U.S. represents ~10% of global revenue.

• ByteDance was reportedly exploring a sale of TikTok U.S. without the algorithm, according to The Information.

5. xAI now raising $6B at $18B pre-money valuation, from $3B at $15B previously

It would become the #2 most valuable generative AI startup:

• Very strong investor demand.

• Likely investors include: Sequoia, Future Ventures, Valor, and Gigafund.

6. GDP slows to 1.6% in Q1, as core price index accelerates to 3.7%

Slower growth with higher inflation is the worst of both worlds:

• It makes the job for the Fed harder, as it’s tougher to cut rates to stimulate short-term demand when inflation is sticky hovering at 3-4%, above the 2% target.

7. Elon overtakes Zuckerberg as #1 richest after Meta’s stock fall

• Meta stock -11% on Thu.

8. Retirement is expected at 65 but happens at 62-64

Considering the median response of this recent survey:

9. Interesting videos, posts, and memes

10. Other headlines

AI

• Sam Altman, other tech leaders to serve on U.S.’s AI Safety Board.

• Beijing funding Huawei-led group to develop new AI chips.

Tech earnings

• Intel’s revenue +9% YoY to $12.7B in Q1.

• Snap’s revenue +21% to $1.19B led by improvements in ad platform.

• Roku’s revenue +19% to $882M, as it reaches 82M subscribers.

• Rubrik stock +16% to $37 in 1st day of trading post-IPO.

Tech

• Huawei’s latest Pura 70 phones use 7nm made-in-China processor.

• ASML shareholders approve new CEO, Christophe Fouquet.

Tech & law

• Net neutrality rules restored by FCC vote.

• Elon subpoenas OpenAI ex-board member Helen Toner.

Biotech

• Rubedo partners with Beiersdorf on skin care products for cellular aging.

• Repair Bio’s Reason: interview (disclaimer: we’re shareholders).

• Longevity science and how to understand it.

Business

• Anglo American rejects $39B takeover bid from BHP.

• Yen drops 1% to 34-year low of 156.66 as BOJ keeps rates unchanged.

• Harvey Weinstein’s 2020 conviction overturned on appeal, new trial ordered.

• The Onion sold by G/O Media.

Crypto

• Stripe will start supporting global stablecoins in summer.

• FTX estate sells more locked SOL to Pantera Capital.

• Pantera Capital seeks $1B for new broad exposure crypto fund.

• Movement Labs raises $38M for another Ethereum layer 2.

• Consensys sues SEC over ETH being a security.

• UK police now can seize crypto without arrests.

U.S. politics

• Partial immunity to presidents likely to be granted by Supreme Court.

• Fed independence reduction being studied by Trump advisers.

• Trump +1 vs. Biden in newly launched 538 polling averages.

World

• Blinken meets Xi in Beijing, “no substitute [for] face-to-face.”

• Ukraine $6B arms commitment to be announced today by U.S.’s Austin.

• Gaza militants launch mortar rounds at Israeli forces building new port.

• Hamas pressed to release hostages by U.S., 16 allies.

• Saudi Arabia to host Gaza talks on Mon.

• Venice tests €5/day fee for tourists on some days.

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