Read this Thursday’s edition of the FolhaMercado newsletter (20) – 07/20/2023 – Market

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One year later, Netflix makes a comeback

Netflix won 5.9 million of subscribers in the second quarter of this year, a period in which the company started to charge for sharing user accounts in the US, Brazil and in more than 100 countries.

• The growth in the user base has more than doubled beyond market expectations, and now the company adds 238.4 million of subscribers.

The shares of the streaming leader, however, retreated 8% in post-market negotiations, after it posted revenue slightly below expectations and projected a lower result than analysts had calculated for the current quarter.

Remember: The current growth in Netflix’s subscriber base comes exactly one year after the company registered a drop in users in two consecutive quarters, something unprecedented.

The negative mark knocked the market value of the streaming leader and motivated it to create two strategies in response:

In numbers: Netflix posted a 3% rise in April-June revenue to $8.2 billion, while profit grew 6% over the period to $1.5 billion.

The company also expects to spend less on content this year in light of the writers’ and actors’ strike in Hollywood.

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Electric sales grow, and Tesla loses margin

In yet another step forward in the energy transition, the sale of electric cars surpassed that of diesel-powered cars in the EU (European Union) in June.

• The block aims to end the sale of new vehicles with combustion engines (diesel and gasoline) in 12 years.

• Alongside China, the EU leads the electric market in the world.

In numbers: electric cars increased from 10.7% to 15.1% in European market share in one year. Gasoline-powered cars led the way with 36.3% of sales in June, followed by hybrids, with 24.3%.

The advance of electric cars in the European bloc was mainly driven by Tesla, which was responsible for the sale of 1 in 5 cars without a combustion engine in June.

Speaking of the automakerit released its results for the second quarter of this year and showed an increase in vehicle sales and a drop in operating margin, as analysts had expected.

• The result was that sales rose 83% from April to June, while revenue and profit grew less –47% and 20%, respectively.

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How big techs want to profit from AI

After the phase of understanding the potential of generative AI, a tool that became a rage at the end of last year, now the big techs envision how to make money with it.

• Microsoft saw its shares reach historic highs on Tuesday after announcing that it will charge US$ 30 a month for corporate customers in the Copilot tool (copilot), which integrates generative AI into the Office suite (Outlook, Word, Power Point…).

• Meta also took the opportunity to release a commercial version of its open source Llama AI model, to be an enterprise alternative to ChatGPT (OpenAI) and Bard (Google). Distribution will be through Microsoft.

Which explains: In their own way, each company wants to be a part of the hot topics in the technology world.

While Microsoft (as an OpenAI investor) and Google (which worked internally with the tool) took the lead, now the other giants are evaluating how they can add technology to their services and, of course, expand their sources of revenue.

More about AI

The LuzIA WhatsApp platform arrived in Brazil this Wednesday. In addition to transcribing audios, the tool responds to requests via text through the ChatGPT engine, GPT-3.5, and creates images.

“AI does not threaten humanity”: see why more than 1,300 experts believe that technology will be beneficial.

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Why Co-Pilots Don’t Want a Promotion

A promotion to a position with more status, considered one of the peaks of the career, and with an increase of about 40% in salary. It is this combo that many American pilots are running away from.

Understand: about 7,500 co-pilots for American Airlines and United Airlines did not apply for promotion to commander in vacancies opened earlier this year.

• The explanation lies in the fact that the position is that of a junior commander, who has less benefits for requests for leave and for choosing destinations to be flown, for example.

• Another reason cited is aircraft progression. Those who are pilots of a certain model take longer to acquire experience in different planes than co-pilots.

Why it matters: the scarcity of commanders could generate a personnel crisis in the American airline industry, which already suffers from a lack of pilots. In the country, these professionals have compulsory retirement at age 65.