3. FTC and States Sue to Halt Kroger-Albertsons Grocery Merger, Citing Price Concerns
The Federal Trade Commission (FTC) and nine state attorneys general move to block Kroger’s $24.6 billion acquisition of Albertsons, citing antitrust concerns. The merger, proposed in October 2022, aims to bolster competition against retail giants like Walmart and Amazon. However, regulators fear it would diminish competition and hike prices for consumers. The FTC files a lawsuit and administrative complaint, while both companies vow to contest the action in court. (AP)
4. Zoom Surges 13% After Beating Q4 Expectations; Growth Remains Single-Digit
Zoom’s shares spike 13% in after-hours trading as the company exceeds analyst forecasts for its fiscal fourth-quarter results. Despite posting adjusted earnings per share of $1.22 (compared to an expected $1.15) and revenue of $1.15 billion (above the expected $1.13 billion), Zoom faces challenges as growth slows to single digits. Hindered by a sales reorganization, the company aims for modest growth in the fiscal first quarter and projects a 1.6% revenue increase for the 2025 fiscal year. (CNBC)
5. Google to Revamp Gemini AI Picture Generator Amid Accuracy Criticisms
Google plans to relaunch its AI image generator, part of the Gemini suite, following critiques over historical inaccuracies. The tool, initially introduced this month, faced backlash for producing questionable results, prompting Google to temporarily remove it. CEO Demis Hassabis assures fixes in the coming weeks, acknowledging the product’s failure to meet expectations. The move comes amid market reaction, with Alphabet shares dropping 4.4%. The incident reignites debates on AI ethics and Google’s AI strategy, prompting reflection on future developments in AI assistants. (CNBC)