The Comunicano for Thursday December 26th 2024
Tis The Day After
Ah, December 26th—Boxing Day, the day we collectively grapple with gift returns, fridge leftovers, and the dazzling reflections of sports scores and tech tidbits from the festive blur. Yesterday marked the crescendo of Christmas cheer and a first night of Hanukkah candles, a rare celestial alignment of holidays where the gift-wrap industry was the true MVP. But today, as we shake off the eggnog haze, the headlines feel like the ultimate holiday mashup: sports streaming wars, market triumphs, and AI-powered smartphones stealing Santa's thunder.
Speaking of battles, the NBA and NFL are delivering the kind of rivalry that would make even Dickens drop his quill. In a Lakers-Warriors nail-biter last night, LeBron James tipped his Santa hat to the streaming wars during his post-game thoughts, muttering something about wishing the NFL would stay in its lane. Amazon, Apple, and now Netflix are queuing up to grab NFL streaming rights like it’s the hottest toy of the season. The NBA, meanwhile, is trying to ensure its broadcast elves don’t get lost in the shuffle.
On the tech front, Hims & Hers provided a rare Wall Street glow in a year that otherwise saw digital health stocks tumbling faster than post-holiday sales prices. While Teladoc and Amwell nursed their wounds, Hims became the darling of the market, proving that a direct-to-consumer charm offensive can still defy gravity in this market.
AI, of course, never takes a holiday. Data centers are expanding so fast they might outpace Santa’s workshop, but an electrician shortage is sparking concerns. Meanwhile, regulatory debates are flaring up faster than your uncle’s opinions at dinner. Europe’s AI Act insists on locking down algorithms tighter than a kid’s grip on their favorite gift, while the U.S. leans into its classic laissez-faire innovation mantra.
And as for Elon Musk, his dreams now include a tunnel linking New York to London. Some say it’s absurd; others call it ambitious. Either way, it’s peak Boxing Day energy—a bold, “Why not?” vision that dares to take its seat at the table of impossible ideas, alongside leftover turkey and reheated yams.
In a world of streaming, stocks, and speculative tunnels, the spirit of innovation and competition is alive and well—even if some of us are still digesting yesterday’s feast. Here’s to the day after, when the sparkle of possibility mingles with the hum of dishwasher cycles, all thee in the background while you read, THE COMUNICANO!!!
Andy Abramson
Money Watch
Digital Health Stocks Struggle, Hims Shines (CNBC)
Digital health companies endured a bruising year in 2024, with Wall Street showing dwindling enthusiasm for the sector. Major players like Teladoc and Amwell faced double-digit losses as their valuations plummeted, reflecting broader challenges such as shrinking margins and slowing consumer adoption. However, Hims & Hers emerged as a rare success story, defying the trend with a stunning 150% stock surge. Analysts attribute its growth to a direct-to-consumer model that prioritized profitability and consumer engagement. This divergence underscores a key lesson for the industry: financial discipline and customer-focused strategies are essential for thriving in a volatile market.
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GV’s Limitations in Venture Capital (TechCrunch)
GV, the venture capital arm of Google, operates with remarkable independence, investing in diverse sectors from biotech to software. Yet it’s bound by one critical constraint: the inability to fund startups that compete directly with Google’s core businesses. This limitation poses unique challenges, particularly in saturated markets like AI and cloud computing, where Google is a dominant player. Despite these restrictions, GV manages a portfolio of over 400 startups and has built a reputation for identifying innovative, high-potential companies. Its balancing act between nurturing innovation and respecting corporate boundaries highlights the nuanced role of corporate venture arms in today’s tech ecosystem.
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AI Watch
Tech Revolution: AI, EVs, and Self-Driving Cars Set to Transform 2025 (Wall Street Journal)
2025 promises a tech leap: AI agents will streamline daily tasks, smarter home devices will integrate seamlessly, and advanced weather models like Google’s GenCast will enhance forecasting accuracy. Self-driving taxis, with players like Waymo and Tesla, will debut across cities. EVs face hurdles with subsidy rollbacks and tariffs, while clean-energy initiatives for data centers gain momentum. TikTok battles regulatory hurdles, crypto markets expand, and apps focusing on health and longevity flourish. As technology redefines boundaries, 2025 shapes up as a year of innovation mixed with challenges.
AI Data Centers Face Electrician Shortage Amid Rapid Expansion (The New York Times)
The surge in artificial intelligence (AI) has led to a rapid expansion of data centers, intensifying the demand for skilled electricians. This shortage poses challenges to the timely construction and maintenance of these facilities, potentially hindering AI development. Industry leaders are exploring solutions, including training programs and partnerships, to address the workforce gap and ensure the infrastructure keeps pace with technological advancements.
Navigating AI Regulation: Balancing Innovation and Oversight (Foreign Policy)
The rapid advancement of artificial intelligence (AI) has prompted global discussions on effective regulatory frameworks. The European Union is implementing the AI Act, emphasizing stringent oversight to ensure ethical AI deployment. In contrast, the United States favors a more flexible, innovation-driven approach, focusing on voluntary guidelines and industry collaboration. This divergence raises concerns about regulatory fragmentation, potentially complicating compliance for multinational companies and affecting global AI governance. The challenge lies in harmonizing these approaches to foster innovation while safeguarding against AI's risks.
AI Phones Could Sustain Chip Sector Amid Potential Data Center Slowdown (Financial Times)
Advantest, a leading supplier of chip testing machines to companies like Nvidia, notes that the rising demand for AI-enabled smartphones could offset potential slowdowns in data center investments. CEO Doug Lefever highlights that while tech giants such as Meta, Google, and Microsoft have heavily invested in data centers, any reduction could impact supply chains. However, a surge in AI smartphone demand, driven by compelling applications, could invigorate the semiconductor industry. Advantest's market dominance and focus on high-performance testing have led to significant revenue growth, reflecting the increasing complexity and testing requirements of advanced chips.
Google Taps Anthropic’s Claude for AI Enhancement (TechCrunch)
In a significant move to boost its AI capabilities, Google has partnered with Anthropic, incorporating the latter’s Claude AI into its Gemini AI systems. This collaboration seeks to combine the strengths of Claude’s conversational capabilities with Google’s proprietary models. The partnership is a strategic alignment aimed at overcoming challenges in developing advanced AI technologies. By integrating external innovations into its ecosystem, Google signals a pragmatic approach to staying ahead in the rapidly evolving AI industry. This initiative also emphasizes the collaborative nature of AI development, where even tech giants recognize the need to leverage external expertise.
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VoIP Watch
Brendan Carr's Appointment as FCC Chairman (The Wall Street Journal)
President-elect Donald Trump has appointed Brendan Carr, a seasoned telecommunications lawyer and regulator, as the new chairman of the Federal Communications Commission (FCC). Carr, known for his conservative stance and media presence, has pledged to align the FCC's agenda with Trump's policies. His priorities include addressing perceived censorship of conservative viewpoints by major tech platforms and advocating for deregulation to foster innovation. Carr's previous experience under Republican Chairman Ajit Pai, notably in the repeal of net neutrality rules, has shaped his approach to telecom policy. His appointment signals a shift towards a more activist FCC leadership, aiming to challenge the influence of large tech companies and promote fair media practices.
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Chinese Cyberattack on U.S. Telecom Infrastructure (CyberScoop)
The U.S. telecommunications infrastructure has been compromised by cyber actors linked to China, in an operation known as "Salt Typhoon." This breach has targeted high-profile individuals, including President-elect Donald Trump and Vice President-elect JD Vance, marking one of the most severe cybersecurity incidents against U.S. telecom networks. Despite ongoing efforts, the threat persists, with federal officials indicating that no networks have fully eradicated the infiltrators. In response, agencies like the Federal Communications Commission (FCC) have proposed new regulatory requirements for carriers to enhance cybersecurity measures. However, experts caution against hasty implementation of new regulations, advocating instead for a thorough understanding of the breach and harmonization of existing security standards to effectively address the threat without overburdening security teams.
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NIMBY Alert (Palo Alto Online)
Palo Alto is weighing the reinstatement of older, stricter regulations for the installation of new antennas, citing the need for greater oversight and community input. The proposed changes aim to address public concerns related to aesthetic impacts and potential health risks of wireless infrastructure, particularly in residential neighborhoods. Telecom companies, however, argue that these measures could significantly slow the deployment of 5G and other critical infrastructure upgrades. The situation reflects a broader conflict across the country between municipal governments seeking to preserve local control and telecommunications companies striving for faster expansion to meet connectivity demands. As the city deliberates, the balance between technological progress and community priorities takes center stage, setting a precedent for other municipalities grappling with similar issues.
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Canadian Telecoms Face Investor Skepticism Amidst Competitive Pressures (Yahoo Finance Canada)
Canadian telecom companies are navigating a challenging landscape as analysts lower price targets and express concerns about competitive pressures and limited growth prospects for 2025. Despite these market challenges, a recent national survey revealed a surprisingly high level of customer satisfaction with Canadian telecom service providers. Many consumers praised their providers for reliable service and consistent coverage, though concerns remain about pricing and customer service responsiveness. This divergence between consumer sentiment and investor outlook underscores the complexities of the industry. As companies work to balance profitability with meeting customer expectations, the evolving competitive landscape and regulatory pressures will remain key factors shaping their future.
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Streaming Watch
Netflix Eyes NFL Streaming’s Big Stage (NY Times)
Netflix is reportedly in talks to secure NFL streaming rights, marking a bold step into live sports broadcasting. This holiday season, the streaming giant tested the waters with exclusive sports-themed programming, raising speculation about its future in live sports. With rivals like Amazon and Apple already securing NFL partnerships, Netflix’s move reflects its efforts to diversify content and expand its subscriber base. Live sports could provide the next frontier for subscriber growth, especially in a market saturated with on-demand content. A successful NFL deal would cement Netflix’s place as a versatile entertainment powerhouse.
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Apple Watch
Apple vs. Nvidia: Decades of Discord Persist (AppleInsider)
The decades-long feud between Apple and Nvidia shows no signs of cooling. Despite significant changes in the tech landscape, the companies remain at odds, with Apple choosing to sidestep Nvidia’s GPUs in favor of AMD and its in-house silicon. The rivalry has roots in old licensing disputes and has only intensified with the rise of AI and machine learning. As both companies compete in overlapping areas like GPUs and AI, the divide underscores the complexities of tech rivalries. Apple’s strategy of self-reliance and Nvidia’s dominance in AI computing keep the tensions alive, shaping their respective innovation trajectories.
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EV Watch
California’s $2,000 E-Bike Voucher Sparks Debate (Electrek)
California’s bold initiative to offer $2,000 e-bike vouchers has sparked heated debate. Advocates praise the program for promoting sustainable transportation and reducing car dependency. Critics, however, argue that the funds could be better spent on broader environmental initiatives, such as improving public transit or renewable energy projects. The voucher program represents a microcosm of the state’s larger climate goals, balancing individual incentives with systemic change. As e-bikes gain popularity, the controversy highlights the complexities of tailoring climate solutions to diverse economic and social needs.
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1% of EV Drivers Would Return to Gas Cars (CleanTechnica)
A new survey reveals an overwhelming majority of EV drivers have no interest in returning to gas-powered vehicles, with only 1% considering the switch. Key factors like performance, cost savings, and environmental impact are driving satisfaction among EV users. Despite infrastructure challenges, such as the availability of charging stations, the survey underscores the growing consumer confidence in electric mobility. As the EV market matures, addressing lingering concerns about charging and range will be critical to maintaining this trend and achieving widespread adoption.
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Lilium Electric Air Taxi May Survive (TechCrunch)
Lilium, the German startup developing electric air taxis, may be on the brink of a comeback. Despite facing severe financial difficulties, new investors are reportedly interested in reviving the company. Lilium’s eVTOL (electric vertical take-off and landing) technology holds promise for sustainable urban air mobility, but scaling such innovations has proven challenging. The potential rescue reflects growing investor confidence in the future of green aviation, even as the industry grapples with regulatory and market hurdles. Lilium’s story could serve as a bellwether for the viability of the emerging air taxi sector.
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Tesla Rolls Out Free FSD Trials (Teslarati)
Tesla is rolling out free trials of its Full Self-Driving (FSD) software to boost adoption and address skepticism about its capabilities. Targeting both new buyers and existing owners, the trials aim to showcase improvements in autonomous driving. While Tesla has faced criticism over safety concerns and regulatory scrutiny, the company remains committed to making FSD a flagship feature. By removing barriers to entry, Tesla hopes to demonstrate the system’s value, converting trial users into long-term subscribers. The initiative reflects Tesla’s broader strategy to dominate the future of autonomous mobility.
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Lime Leads Emissions-Free Logistics (The Cool Down)
Micro-mobility leader Lime is advancing sustainability in its logistics operations by switching to vegetable oil-powered delivery trucks. This move reduces carbon emissions while maintaining operational efficiency, aligning with Lime’s broader commitment to environmentally friendly practices. By adopting green solutions across its supply chain, Lime sets an example for businesses looking to reduce their environmental impact. The initiative highlights the role of innovative logistics in achieving corporate sustainability goals, even for smaller-scale operations.
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Musk Watch
Elon Musk’s London-New York Tunnel Vision (Business Today)
Elon Musk’s vision to build a $20 billion tunnel connecting London and New York faces monumental engineering challenges. The project would require drilling through 5,500 meters of Atlantic seabed, navigating extreme conditions. Proponents believe it could revolutionize transatlantic travel, reducing travel times dramatically. Critics, however, question its technical feasibility and economic viability, given the scale of the endeavor. If successful, the project could redefine global infrastructure, but the risks and costs make it one of the most ambitious—and controversial—proposals of our time.
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Elon Musk’s Billion-Dollar Business Advice (Barchart)
Elon Musk, the visionary behind Tesla and SpaceX, offers one simple but powerful piece of advice for entrepreneurs: focus on innovation, not competitors. He warns against the distraction of trying to outdo rivals, comparing it to running while looking backward. Instead, Musk champions relentless innovation, execution, and a clear focus on customer needs as the recipe for success. Drawing from his experience building industry-leading companies, Musk’s philosophy highlights the value of long-term thinking and bold risks over reactive strategies. His insights resonate with aspiring business leaders seeking to navigate competitive and fast-changing markets.
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