💥 Big Tech is booming
Big Tech announces quarterly earnings, new spyware causes global chaos and some more updates.
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Market Recap 📈
Indian equity markets closed higher as finance, tech and metal stocks surged, while the FMCG index was down 1%. In the US, stocks markets were mixed after the Feds signalled that it was in no hurry to its taper stimulus.
Sensex: 52,653.07 (+0.40%) ↑
Nifty 50: 15,778.45 (+0.44%) ↑
Dow Jones: 34,930.93 (-0.36%) ↓
Nasdaq 100: 15,018.10 (+0.41%) ↑
Bitcoin: $40,173.43
Top Stories 📰
1. Big brother is watching you 👁️
What seemed like a distant Orwellian nightmare has now become a reality. And it goes by the name of Pegasus. (hint: it's less fun than the mythical winged horse that you're imagining)
What is Pegasus? Basically, it's spyware developed by Israeli security firm NSO that finds vulnerabilities in your mobile phones' operating system (or other devices) and transmits personal data such as chats, files, contacts, etc., to the attacker.
The malware was first identified in 2016 when users would receive a call or text, and upon clicking, it would activate itself. However, recent reports show that Pegasus uses 'zero-click vulnerability' that allows it to install without any user action.
While the company says that it only distributes the software to governments to investigate crime and terrorism via licenses that can cost upto Rs. 70 lakh, governments can use it to conduct mass surveillance on their citizens.
This is where Project Pegasus comes in: it's a collaborative investigative project by 17 global organizations to uncover surveillance hacks. The group found a leaked list of 50,000 phone numbers from the NSO, including government executives, journalists, and even Jamal Khashoggi's family. In India, around 300 people are targeted by the software, including Rahul Gandhi.
Edward Snowden, who's known for blowing the whistle on the mass surveillance program by the NSA in 2013, also called for a worldwide moratorium on international spyware trade or warned off living in a world where no phone is safe.
Why it matters? Despite the government and NSO denying surveillance allegations, senior journalists have approached the Supreme Court to investigate the military-grade spyware. Other countries like France and the US have also pushed for an inquiry into the matter.
2. Big Tech earnings results are in (hint: it’s 🔥)
This week has been all about big tech as they published their quarterly earnings reports, smashing analyst expectations and setting new revenues highs.
Here's how they performed:
Apple: Apple posted the best second-quarter in its 45-year history as revenues jumped 36% year-on-year, with iPhone sales rising almost 50% on an annual basis. Mac, iPad, and other products and services also witnessed a more-than-10% growth.
Microsoft: Revenue's advanced 21% to $46.15 billion—its highest quarterly revenue total ever—while its net income expanded to $47 billion. Growth in cloud computing and productivity software was notable, although Windows OEM and Surface revenues declined.
Google: Google's parent Alphabet reported an outstanding 62% annual growth in revenue, which stood at $61.9 billion. The company's profits more than doubled to $18.5 billion during the same period, mainly supported by its core advertising business which advanced 69%. Nice.
Facebook: The social media giant reported its fastest growth since 2016, with 56% year-on-year growth in the second quarter. Revenues stood at $29.08 billion, exceeding analysts' expected $27.82 billion. However, Facebook also warned of a significant growth slowdown in the coming quarters, sending its shares to tumble 5% in extended trading hours.
Deal Street 🤑
Twitter acqui-hires summary app Brief
Twitter has added summary and news aggregator app Brief to its recently acquired list of companies like purchasing newsletter tool Revue and podcasting app Breaker as it aggressively strives to double down on the creator economy. Twitter isn't buying the business but is only acquiring the team to work on its support features like Explore and Spaces. The subscription-based app, founded last year by former Google employees, aims to address problems faced amid today's ever-growing news cycle.
Crypto infra startup Fireblocks fetches $310 million
Fireblocks, a platform that allows banks and financial institutions to store, move, and issue digital assets, has raised a $310 million Series D round at a $2 billion valuation. Investment firms like Stripes Group, Coatue Management, Sequoia Capital, and Spark Capital, among others, co-led the funding round. With over 500 institutions using its infrastructure, the company secures over $1 trillion in cryptocurrencies. The company's annual recurring revenue (ARR) has increased 350% since last year and is expected to be 500% by the end of 2021. It now plans to use the capital towards expansion in the Asia Pacific region as well as hiring, marketing, sales and other operations.
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