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Home Blog Page 6173

Jeff, Son of Bezos, in the Year of Ecommerce

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Men – who build nations, Forbes reports.

The world’s richest person, Jeff Bezos, is wealthier than he’s ever been. Early Wednesday he crossed a milestone previously unseen in the nearly four decades Forbes has been tracking net worths: With Amazon stock edging up 2% as of Wednesday afternoon, Bezos’ net worth is up by $4.9 billion, making the 56-year-old the world’s first-ever person to amass a $200 billion fortune.

Fueled by the change in consumer habits as a result of the coronavirus pandemic, Amazon stock is up nearly 80% since the beginning of the year, and Bezos’ net worth, which was roughly $115 billion on January 1, has skyrocketed in tandem. Bezos’ roughly 11% stake in Amazon makes up more than 90% of his fortune. He also owns the Washington Post, aerospace company Blue Origin and other private investments.

Then, Bloomberg reports  that the top 500 richest people have gained $809 billion in 2020. That is a solid 14% increase in a season when millions are unemployed with paralyses everywhere. “We cannot continue to allow billionaires like Jeff Bezos and Elon Musk to become obscenely rich while millions of Americans face eviction, hunger and economic desperation,” Sen. Bernie Sanders said Wednesday in a statement reported by Bloomberg.

The vices of technology – massive dislocation through the efficiency in the utilization of factors of production. With labour now plug and play (hello remote work, unbounded by geography), all power to the gods of money!

Kevin Mayer’ Abrupt Resignation Suggests TikTok Has Possibly Reached Acquisition Deal

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TikTok’s CEO Kevin Mayer has called it quits following the intense pressure on the video app from Washington. The US president Donald Trump has in recent weeks, taken steps to force TikTok to sever every tie with Beijing, including disassociating itself from its Chinese-based owner, ByteDance.

Mayer said he made his decision after reflecting on what the recent development will mean for his role as a global leader of TikTok.

“In recent weeks, as the political environment has sharply changed, I have done significant reflection on what the corporate structural changes will require, and what it means for the global role I signed up for.

“Against this backdrop, and as we expect to reach a resolution very soon, it is with a heavy heart that I wanted to let you all know that I have decided to leave the company,” he said in a note shared with employees.

Mayer was hired in May to lead the global operations of ByteDance, TikTok’s parent company. It was part of TikTok’s plan to curtail the pressure from the White House. Hiring Mayer was supposed to quell the belief that the short video app is beholden to China, as he is an American based in the United States.

But shortly after he joined ByteDance, Washington officials zeroed in on TikTok. The app’s biggest threat came earlier this month when Trump signed executive order to block the company’s operations in the US if ByteDance doesn’t sell to an American company in 45 days.

In its push to stay alive in the US, TikTok has welcomed offers from Microsoft, Oracle and Twitter, in a deal put around $30 billion to $50 billion. The company has also filed a suit challenging the Trump’s administration, alleging it didn’t follow due process in its executive order.

ByteDance had contemplated moving its headquarters from China to ease US’ nervousness over the possibility of Beijing harvesting private data of American users of TikTok. Though the app has no data center in China, the American government is wary that having data centers outside the US while ByteDance remains TikTok’s parent company, makes its national security vulnerable.

The recent turn of events has affected a lot of things for TikTok, including Mayer’s decision to resign. Zhang Yiming, the founder and chief executive of ByteDance, said in a note on Wednesday to employees that Mayer joined the company in arguably its most challenging time. He said he understood how Mayer’s global role could be affected given that he was based in the United States.

India was the first country to ban TikTok among other Chinese apps, following a border conflict with China in June. Zhang said ByteDance is working to resolve the crisis surrounding the video app, in and outside the US.

“I cannot get into details at this point, but I can assure you that we are developing solutions that will be in the interest of users, creators, partners and employees,” he said.

Mayer’s resignation apparently alters TikTok’s global operation plans, but the company said it understands his decision to call it quits, given the present circumstances.

“We appreciate that the political dynamics of the last few months have significantly changed what the scope of Kevin’s role would be going forward, and fully respect his decision,” the company said in a statement.

Vanessa Pappas, the head of TikTok’s North American operations, will take Mayer’s place as the interim global head of the company.

However, Mayer’s short-lived role in TikTok signals another development. The app’s defense line against the allegation that it is beholden to China has included the hiring of Mayer for a global lead role; his abrupt resignation suggests that ByteDance may have reached a deal for the sale of TikTok.

Sources said that TikTok is getting close to announcing a deal in the coming days. People familiar with the matter said Mayer planned to announce his resignation along with the sale agreement next week. But the information got leaked to Financial Times who reported his resignation first, forcing him to fast-forward the timing in order to address the news.

TiKTok has grown significantly around the world, recording more than 1.9 billion downloads and having millions of users in the United States. Mayer believes that its current ordeal will not affect its growth.

“Like all companies in our space, we face challenges, but I have tremendous confidence that we have a world-class security team in place working to make people on our platform safe, and an amazing global team that makes this such a unique, creative and inclusive platform,” he said.

Facebook Leads Employee Efficiency on Profit Per Employee

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Facebook leads employee efficiency:

Financial tech firm Tipalti crunched numbers from the Fortune 500 list to figure out how much profit tech companies are making per employee. The results put Facebook, Apple, Alphabet and Microsoft at the top. Facebook’s profit per employee is $411,308 and Apple’s $403,328. Uber, meanwhile, is losing a whopping $316,208 per employee.

The Amazon Halo – AI-powered Health Device

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Amazon has introduced Amazon Halo, a new service dedicated to helping customers improve their individual health and wellness. Amazon Halo combines a suite of AI-powered health features that provide actionable insights into overall wellness via the new Amazon Halo app with the Amazon Halo Band, which uses multiple advanced sensors to provide the highly accurate information necessary to power Halo insights.

“Despite the rise in digital health services and devices over the last decade, we have not seen a corresponding improvement in population health in the U.S. We are using Amazon’s deep expertise in artificial intelligence and machine learning to offer customers a new way to discover, adopt, and maintain personalized wellness habits,” said Dr. Maulik Majmudar, Principal Medical Officer, Amazon Halo. “Health is much more than just the number of steps you take in a day or how many hours you sleep. Amazon Halo combines the latest medical science, highly accurate data via the Halo Band sensors, and cutting-edge artificial intelligence to offer a more comprehensive approach to improving your health and wellness.”

Halo goes for $65, and the device also includes six months of a free A.I.-driven health advisory service that tracks body composition, tone of voice analysis, sleep and activity tracking. It’s $4 a month after the first six free.

Nigeria’s Refineries of the Deep Future

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Dangote Group is building a refinery. But I do think it is off by at least ten years to extract the maximum value on that investment. Though Nigeria continues to import petroleum products, distorting our balance of payments, and crushing the Naira, my model is that the refinery business will do well, marginally. Yes, the refinery will fix market friction but it would be distorted in years. As I drive across America, a popular scene now is closed gas stations, picking up where malls stopped.

Looking at all trajectories Aliko Dangote is getting poorer despite doing more! It is a paradox because technically Dangote has improved his asset quality over the last seven years, as Dangote Group evolves to become an industrialized conglomerate.

He was worth $25 billion in 2014, becoming the world’s 23rd richest person. In 2019, he became the world’s 100th at $10.8 billion. Today, Dangote is worth $7.7 billion as the 162nd richest person on earth. Understand that what is happening to Dangote is “technical value erosion”: he is still accumulating more Naira but currency deterioration and devaluation have decimated his global standing.

I expect naira to hit N502 per dollar, from N381 today, by May 2023, and if Dangote does not follow through, he could be off the billionaire club. Of course, he has a plan when he said on Bloomberg: “In Africa, you know we have issues of devaluation, so we want to really ‘preserve’ some of the family’s wealth.” Dangote plans to ship some wealth to New York to diversify out of Africa!

Simply, once Ford, GM, Toyota etc stop making fossil-powered cars, Nigerians cannot get special treatments. Because we do not make cars, we have to adjust! The refineries of the future are charging stations and not crude oil refining. In the U.S., most refineries are going bankrupt because in the next few years, the cost of buying an electric car would be at parity with fossil-fueled cars. 

Do not put so much power in refinery business as a business for decades. The useful life of that sector is in years, not decades. We expect Tesla to produce EV cars that would be as affordable as Toyota, Honda, etc in the coming years. But Ford, GM and Toyota may get there before it.

So, my thesis is this: the best refinery business of the future in Nigeria, starting 2030 is charging stations because the world will not walk back on the march to EV because Nigeria likes their hydrocarbonated cars.