Latest news with #MorganStanleyTechnology
Yahoo
26-05-2025
- Business
- Yahoo
Google's 'AI Mode' could be bad for Reddit
Google launched a new AI search mode in the US, and it could impact Reddit's growth. Reddit's stock fell as analysts predicted a decline in traffic thanks to Google's AI. Reddit said its most loyal users were key to its business and is refining its own AI search engine. Google announced last week that it is rolling out a new search tool powered by AI that it's calling, simply, AI Mode. That could be bad for Reddit. Reddit has grown significantly over the past year, thanks in large part to Google prioritizing Reddit links in its search results and because searchers are often looking for human input on an internet increasingly dominated by AI and automated bots. At Google I/O last week, Google CEO Sundar Pichai described AI Mode as a "total overhaul" of the company's search tool. AI Mode will offer users a more conversational experience, rather than the traditional list of links. That means Google can give a user information found on Reddit, without that user ever having to visit the site. This will mostly affect Reddit's logged-out users, who are more casual visitors without their own accounts. Logged-in users are Reddit's everyday fans. Much of Reddit's growth is with logged-out users coming through Google Search. On Monday, Reddit's stock dropped about 5% after Wells Fargo said it expected Reddit traffic to decrease as "Google more aggressively implements AI features in search." It wasn't the first time that changes to Google's search feature caused Reddit's stock to fall. Shares of the company fell by over 15% in February after Huffman said in an earnings call that the site saw traffic "volatility" in the fourth quarter after Google tweaked its search algorithm. While algorithms are often shifting (just ask a digital news organization), Wells Fargo said recent user disruptions on Reddit are "likely more permanent" as search behavior changes in response to Google's AI advancements. Reddit, however, says that its logged-in users, who come to Reddit directly, are the primary driver of its business. "A lot of our product work allows us to develop and consistently grow those logged-in users, which are the bedrock of our impressions and inventory because of their very long engagement on Reddit," Reddit Chief Operating Officer Jen Wong said at the Morgan Stanley Technology, Media, & Telecom Conference in March. "It's not existential for us … I think the business is extremely healthy because, again, it's powered by the logged-in users." Reddit also has its own internal AI search tool, Reddit Answers, which replies to searches with a list of relevant information found in posts on the site. Ultimately, Huffman says he is confident that Reddit will hold its place on the internet because of the human interactions it provides. "There's no doubt LLMs will evolve search on the internet. We can all see that. It's awesome," he said in an earnings call with investors earlier this month. "Sometimes people will want the summarized, annotated, sterile answers from AI, and we're even building this ourselves in Reddit Answers. But other times, they want the subjective, authentic, messy, multiple viewpoints that Reddit provides." "So in the same way that Reddit for the last decade has been an alternative to social media — social media being performative and manicured, and Reddit being the opposite — Reddit communities and conversations will be an alternative to AI search answers," he added. Read the original article on Business Insider
Business Insider
25-05-2025
- Business
- Business Insider
Google's 'AI Mode' could be bad for Reddit
Google announced last week that it is rolling out a new search tool powered by AI that it's calling, simply, AI Mode. That could be bad for Reddit. Reddit has grown significantly over the past year, thanks in large part to Google prioritizing Reddit links in its search results and because searchers are often looking for human input on an internet increasingly dominated by AI and automated bots. At Google I/O last week, Google CEO Sundar Pichai described AI Mode as a "total overhaul" of the company's search tool. AI Mode will offer users a more conversational experience, rather than the traditional list of links. That means Google can give a user information found on Reddit, without that user ever having to visit the site. This will mostly affect Reddit's logged-out users, who are more casual visitors without their own accounts. Logged-in users are Reddit's everyday fans. Much of Reddit's growth is with logged-out users coming through Google Search. On Monday, Reddit's stock dropped about 5% after Wells Fargo said it expected Reddit traffic to decrease as "Google more aggressively implements AI features in search." It wasn't the first time that changes to Google's search feature caused Reddit's stock to fall. Shares of the company fell by over 15% in February after Huffman said in an earnings call that the site saw traffic "volatility" in the fourth quarter after Google tweaked its search algorithm. While algorithms are often shifting (just ask a digital news organization), Wells Fargo said recent user disruptions on Reddit are "likely more permanent" as search behavior changes in response to Google's AI advancements. Reddit, however, says that its logged-in users, who come to Reddit directly, are the primary driver of its business. "A lot of our product work allows us to develop and consistently grow those logged-in users, which are the bedrock of our impressions and inventory because of their very long engagement on Reddit," Reddit Chief Operating Officer Jen Wong said at the Morgan Stanley Technology, Media, & Telecom Conference in March. "It's not existential for us … I think the business is extremely healthy because, again, it's powered by the logged-in users." Reddit also has its own internal AI search tool, Reddit Answers, which replies to searches with a list of relevant information found in posts on the site. Ultimately, Huffman says he is confident that Reddit will hold its place on the internet because of the human interactions it provides. "There's no doubt LLMs will evolve search on the internet. We can all see that. It's awesome," he said in an earnings call with investors earlier this month. "Sometimes people will want the summarized, annotated, sterile answers from AI, and we're even building this ourselves in Reddit Answers. But other times, they want the subjective, authentic, messy, multiple viewpoints that Reddit provides." "So in the same way that Reddit for the last decade has been an alternative to social media — social media being performative and manicured, and Reddit being the opposite — Reddit communities and conversations will be an alternative to AI search answers," he added.
Business Wire
06-05-2025
- Business
- Business Wire
Toast Announces Participation at the J.P. Morgan Annual Global Technology, Media and Communications Conference
BOSTON--(BUSINESS WIRE)--Toast (NYSE: TOST), the all-in-one digital technology platform built for restaurants, today announced its management team will present at the Morgan Stanley Technology, Media & Telecom Conference in Boston, MA on Tuesday, May 13, 2025 at 11:30 AM EDT. A webcast of the company presentation will be available on Toast's Investor Relations website at About Toast Toast [NYSE: TOST] is a cloud-based, all-in-one digital technology platform purpose-built for the entire restaurant community. Toast provides a comprehensive platform of software as a service (SaaS) products and financial technology solutions that give restaurants everything they need to run their business across point of sale, payments, operations, digital ordering and delivery, marketing and loyalty, and team management. We serve as the restaurant operating system, connecting front of house and back of house operations across service models including dine-in, takeout, delivery, catering, and retail. Toast helps restaurants streamline operations, increase revenue, and deliver amazing guest experiences. For more information, visit TOST-FIN
Yahoo
01-04-2025
- Business
- Yahoo
Reddit's success may be inextricably tied to Google Search
Reddit has grown since going public last year, but some analysts fear it may be too closely tied to Google. Redburn Atlantic analysts warned Reddit's reliance on Google traffic and logged-out users may limit its long-term value. Reddit's stock has been volatile, affected by Google's algorithm changes and rumors of a Google deal. Reddit is growing quickly, but — like many media companies — it's struggling to separate itself from Google. Wall Street analysts from Redburn Atlantic rated Reddit "sell" on March 17 after saying in a note that the company's "potential, breadth of appeal and thus value as a company are being overstated," according to Bloomberg. James Cordwell and Joseph Barker, analysts for the firm, said that much of Reddit's growth over the past few years has been "misconstrued" because it came from logged-out users as the main driver, with many of those users coming from Google's algorithm, according to the outlet. Reddit CEO Steve Huffman has repeatedly said that people are going to Google more with the intention of ending up on Reddit. But the Redburn analysts say this trend could lead to more logged-out user growth than logged-in user growth. Reddit's daily active users who are logged in to their accounts were up 27% last year, but the same metric was up by 70% for people who were logged out, BI previously reported. "Accelerated user growth has been driven predominantly by logged-out users who arrive on the platform largely via Google Search," the Redburn analysts wrote. "These users are much less valuable to Reddit as they are typically just looking for an answer to a query and thus spend little time on the platform." Cordwell and Barker added that there is "clear evidence" that the boost to traffic from Reddit's recent changes is "hitting a ceiling, with a risk that what Google giveth, it will taketh away," according to Bloomberg. Redburn did not return requests for comment from Business Insider. A spokesperson for Reddit noted that the majority of analysts have maintained their "buy" rating for the company and that the experience for logged-in user has been driven by improvements to the platform. Jen Wong, Reddit's COO, recently described the relationship with Google as "symbiotic." "People are using Google to get to Reddit," she said at the Morgan Stanley Technology, Media, and Telecom Conference in March. "When I view it like this, I don't view it as existential; we have these two sources of traffic. It's not existential for us, but it is some chop that we managed through." Reddit has seen tremendous growth over the past year since going public in March 2024, but its stock has seen some volatility in recent months. On February 12, Reddit's stock dropped more than 15% after Huffman said in an earnings call that a tweak to Google's algorithm caused "volatility" in site traffic. He added that "traffic from search has recovered so far in Q1, and we've regained momentum. What happened wasn't unusual." On March 17, Reddit's stock jumped again after Reuters published an article that it later retracted, which said Google and Reddit had entered a new partnership. Reuters said in an update that the post was based on outdated information. Reddit users reacted to the post in r/stock, a community where users discuss stocks, market news, and finances. "Wild. There was just like a 10% pump and it instantly dropped back down. Is Wall Street Bets on this stock or something?" one user wrote in a comment about the article. Another user said in the comments they see many Google search results that use Reddit information. The user wrote that it is "insane how Google has basically sold out its Search function to operate as the Reddit search bar." "Most of the time when you Google something now you're either shown a list of Reddit pages or given an AI overview that uses Reddit to write the answer," the user wrote. Read the original article on Business Insider
The Hill
20-03-2025
- Business
- The Hill
Disney in search of perhaps its greatest sequel — a successor to Bob Iger
Behind the red carpet movie premieres and new thrill-inducing rides for fans of its amusement parks, there is a quiet search underway to find the successor to Bob Iger, the face of Disney for most of the past two decades. Disney went through the CEO search recently, and it was nearly a disaster. Only two years after stepping down as CEO, Iger returned to Disney in 2022 after a period of clashes, missteps and a weakening financial performance under his hand-picked successor, Bob Chapek. But how do you replace a chief executive who is considered by many to be the gold standard? Iger strengthened the Disney brand through his acquisitions of Pixar, Marvel and Lucasfilm, oversaw the expansion of the company in China and India and had a laser-like focus on technology that both made the Disney product better, and more accessible. Iger, at the same time, is approachable, media savvy and has deftly managed a company that is like no other. Under Disney's umbrella are theme parks, movies studios and streaming technology, all with priorities seemingly at odds with each other, or at least vying for the attention of the company's chief executive. Disney did not provide succession updates at its annual shareholders meeting on Thursday. Still, the question of who can follow Iger remains on investors' minds. Disney created a succession planning committee in 2023, but the search began in earnest last year when the company enlisted Morgan Stanley Executive Chairman James Gorman to lead the effort. Gorman said in a January letter to shareholders that the committee had made 'strong progress' over the past year. 'The full board is engaged in and committed to finding the right leader for the company and we are planning for a smooth leadership transition that will enable Disney's continued success,' he wrote. Disney does has the benefit of time. After signing a two-year contract mostly to right Disney's trajectory after a rocky two years under his hand-picked successor, Iger agreed to a contract extension that keeps him at Disney through the end of 2026. Disney declined to comment on its succession planning efforts. It is a broad search. Disney is looking inside and outside of the company. Internal candidates are being mentored by Iger, interacting with the company's 15 board members (including Iger) and receiving external coaching. The internal candidates are widely believed to include the chairman of Disney-owned ESPN, Jimmy Pitaro, Chairperson of Walt Disney Parks and Resorts Josh D'Amaro, Disney Entertainment Co-Chairman Alan Bergman and Disney Entertainment Co-Chairman Dana Walden. Individuals on that short list are notably more visible at a time in which Iger has taken a bit of a step back from pubic appearances. Walden appeared at the Morgan Stanley Technology, Media & Telecom Conference this month to speak about varying components of the business. 'Disney is a great technology company and a great storytelling company,' she said. 'We have moved forward significantly throughout time, embracing technology as a vital tool to deliver these stories.' Bergman and D'Amaro showed up at the South by Southwest festival this month to discuss collaborative efforts taking place at Disney. Given the complex and unique nature of Disney, many expect the next leader of the company to come from within. 'Internal candidates make sense when a company doesn't need a major shake-up and when the bench of potential candidates is deep,' Jason Schloetzer, associate professor at Georgetown McDonough School of Business, said. Henning Piezunka, associate professor of management at Wharton Business School of the University of Pennsylvania, agrees. 'The challenge for Disney – but also the beauty of it, is that it is a somewhat unique company,' he said. 'While it is very feasible for Ford to recruit from GM, and for Volkswagen to recruit from BMW, it is less evident what is an equivalent for Disney. So, it is harder for an external CEO to hit the ground running.' Yet is there anyone on Disney's roster that can oversee parks, films and streaming as adeptly as Iger has? Schloetzer said that Walden's experience in television and streaming positions her well for the CEO post, although she lacks experience with the company's theme parks. With D'Amaro, Disney has someone who has been with the company for almost 30 years and who has deep experience with the theme park division, he said. 'Ultimately, the choice will probably come down to which candidate the board feels most comfortable working with and who can motivate the next level of executives to push the company forward,' Schloetzer said. Disney has been energized of late. The company was buoyed in its first quarter by the strong box office performance of 'Moana 2' and subscriber growth at Disney+ and Hulu. And the entertainment giant is continuing to double down on some of its most successful titles. Iger on Thursday announced that a sequel of Pixar's 'Coco' is officially in the works, for example. While that film is in its initial stages, he also pointed to popular TV series set to return with new seasons in the coming year, such as FX's 'The Bear' and Hulu's 'Only Murders in the Building.' Thursday's meeting also spotlighted other growth efforts — including updates on an ESPN 'direct to consumer' offering set to debut this fall and expansions across various Disney-owned parks and cruises. 'Right now, we have more projects underway around the world than at any time in our history,' Iger said in prepared remarks. And beyond updates from Iger, Disney shareholders voted on several proposals Thursday. Of note, shareholders overwhelmingly rejected a proposal requesting that the company end its participation in the Human Rights Campaign's Corporate Equality Index — a measure of workplace inclusion for LGBTQ+ employees that several other big names, including Ford and Lowe's, have recently cut ties with amid wider attacks on diversity, equity and inclusion initiatives. Disney's board previously recommended that shareholders vote against this measure. It received approval of just 1% in a preliminary count Thursday.
