Walmart Reaches $1 Trillion Market Value as Tech and Media Sectors See Major Shifts
Walmart became the first traditional retailer to achieve a $1 trillion market valuation, while other major business developments unfolded in the tech and media sectors, including scrutiny of the proposed Netflix-Warner Bros. Discovery merger, a merger between Elon Musk's SpaceX and xAI, and layoffs at Pinterest.
Walmart's milestone reflects the company's success in e-commerce and attracting price-conscious shoppers, according to the BBC. Wall Street has also responded positively to Walmart's investments in artificial intelligence (AI). The company's share price rose by more than 3% on Tuesday. Walmart joins a small group of companies with valuations over $1 trillion, including Nvidia and Alphabet.
Meanwhile, Netflix and Warner Bros. Discovery faced skepticism from U.S. senators regarding their proposed $82 billion merger. During a Senate antitrust subcommittee hearing on Tuesday, lawmakers from both parties raised concerns about reduced competition, potential price increases, and the future of cinemas if the deal proceeds, according to the BBC. The Department of Justice (DoJ) is currently reviewing the deal.
In the tech world, Elon Musk's SpaceX is acquiring his artificial intelligence start-up, xAI, in a move to consolidate his business interests. SpaceX confirmed the deal, posting a memo from Musk on its website, according to the BBC. While the terms were not disclosed, a source familiar with the matter said the deal valued xAI at $125 billion and SpaceX at $1 trillion, potentially making it the most valuable private company ever. Musk stated in his memo that the combination would form an "innovation engine" bringing AI, rockets, space-based internet, and media under one roof.
Pinterest recently laid off approximately 15% of its workforce, or about 700 roles, as part of a shift towards an "AI-forward approach," according to an email from chief executive Bill Ready cited by an employee on LinkedIn and reported by the BBC. The company then sacked two engineers for creating a tool to track which workers lost their jobs in the layoffs. The engineers reportedly "wrote custom scripts improperly accessing confidential company information to identify the locations and names of all dismissed employees," according to the BBC.
In other business news, Chinese planemaker Comac is seeking to challenge Boeing and Airbus in the aviation market. Comac showcased its C919 passenger jet at the Singapore Airshow, marking its first trip outside of Chinese territory two years ago, according to the BBC. The plane is designed to compete with the Airbus A320neo and Boeing 737 MAX, and Comac is "setting sights on the Southeast Asian aviation market."
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