Although there is no official count of the closures, migrant advocacy groups say hundreds of shops have stopped operating in KwaZulu-Natal, Gauteng and the Western Cape.

The impact is already visible in many communities, where the price of everyday essentials has surged.

Bread, which sold for about R16 in some townships, now costs as much as R30, according to the Africa Diaspora Forum (ADF). The group says the increase is hitting low-income households the hardest.

“We don’t have a complete audit, but the number is in the hundreds,” ADF chairperson Amir Sheikh said. “Most of our members operate in the fast-moving consumer goods sector, selling everyday essentials like bread, sugar and other basic groceries. Those are the products where we have seen the sharpest increases.”

The spaza shop closures followed anti-immigrant protests and attacks that targeted businesses owned by Nigerians, Somalis, Ethiopians, Zimbabweans, Pakistanis and Bangladeshis in South Africa.

Some shop owners temporarily shut their businesses for safety, while others have not reopened.

While several people support greater local ownership of township businesses, many residents say higher prices have become an immediate concern as household budgets are unable to keep up.

Local shop owners admit they are finding it difficult to replace the business model many foreign traders built over the years. Many immigrant-owned businesses bought goods in bulk, shared supplier networks and secured better wholesale prices, allowing them to sell products more cheaply.

Without those buying networks, many South African-owned shops now purchase smaller quantities at higher prices, pushing up costs for consumers.

The issue has also drawn attention to the fate of South Africa’s estimated R900 billion township economy. Instead of focusing only on ownership, government officials and financial technology companies argue that technology will be indispensable in helping local retailers compete.

The Department of Small Business Development has already introduced a R500 million Spaza Shop Support Fund to modernise township retail.

The programme goes beyond financial support by providing point-of-sale (POS) systems, inventory management tools, digital payment solutions and business support services.

The government also plans to introduce an Integrated Payment Gateway and a National MSME Service Portal to make it easier for small businesses to access funding, government services and digital tools.

“Technology is expected to play a transformative role in the future of South Africa’s spaza economy by improving competitiveness, operational efficiency, financial inclusion and long-term sustainability,” Minister Stella Ndabeni-Abrahams said.

Modern POS systems now allow retailers to track stock in real time, monitor sales, automate ordering and build digital transaction records. Those records can also help small businesses qualify for loans because lenders can assess trading history instead of relying mainly on collateral.

Some retailers are already seeing the benefits.

Terry Gatsheni, who owns two convenience stores and a tavern in Thokoza, said technology has changed the way he manages his businesses.

“Before, you had to count everything by hand, and sometimes you’d only realise stock was missing when it was too late,” Gatsheni said. “Now the system shows us what’s coming in, what’s going out, and what we need to reorder. It makes running the shop much easier.”

Fintech company Lesaka Technologies believes digital tools, rather than nationality, will determine which retailers succeed in the coming years.

“I have spent my career serving the underserved, and what our data across more than 100,000 merchants shows and what I lived myself growing up in (rural) KwaZakhele, is that the most successful spaza is the one closest to its customer, priced for what the household can spend that day, open when people need it, and run by someone who knows their name,” Lesaka CEO Lincoln Mali said.

He argued that access to capital, reliable supplier networks and business data gave many foreign-owned retailers an advantage, not their nationality.

“Bulk-buying power isn’t magic,” Mali said. “It’s access to capital, supply and data, and that’s exactly the gap fintech should close for any operator, regardless of nationality or background.”

Residents say the effects are becoming harder to ignore.

“The prices in some of these spaza shops have been steadily rising since the unrest,” said Cosmo City resident Lelo Mathe. “I hope things stabilise because we’re not going to get any salary increases to match these prices.”

Others say some spaza stores in South Africa are carrying fewer products because owners fear further unrest and looting.

The post South Africa Looks to Fintech After Anti-Immigrant Protests Shut Spaza Shops, Drive Up Basic Food Prices appeared first on Tech | Business | Economy.

The feature is now available to Premium subscribers using Spotify on iOS in the United States, Canada, the United Kingdom, Ireland, Australia, New Zealand and Sweden.

Users can access Running Mode through the app’s Fitness Hub, where they can choose from 25 running presets before adjusting them to suit their workout. Options include interval runs, steady runs and pyramid sessions.

They can also set the workout duration, choose a preferred beats-per-minute range and select the kind of music they want to hear.

Once the run starts, Spotify automatically arranges songs to match the selected tempo while moving through different stages of the workout. The aim is to reduce the time users spend searching for playlists before exercising.

The feature also includes optional audio guidance in English. These spoken cues play at different points during a workout to help users keep track of their progress without interrupting the music.

Running Mode builds on Spotify’s recent initiative to make music recommendations more personal. The company said it noticed that many users were already creating workout playlists with its Prompted Playlists feature, leading to the development of a dedicated experience for runners.

“Since we first introduced Prompted Playlists, fitness-based prompts have been some of the feature’s most popular uses, reflecting a growing demand for more personalised workout experiences,” Spotify said.

“Running Mode is the next step, creating a running experience powered by your goals and the music you love, so every run feels more energising and uniquely yours,” the company added:

Spotify has also been expanding its fitness offerings beyond music. Earlier this year, it added fitness content through its partnership with Peloton, giving users access to workout classes alongside their music library.

The launch also follows a recent change by fitness tracking app Strava, which removed Spotify integration from its Record feature a few months ago.

With Running Mode now built directly into Spotify, subscribers no longer need a separate app to combine music with guided running sessions.

The post Spotify Launches Running Mode to Create Personalised Music for Workouts appeared first on Tech | Business | Economy.

The partnership will allow Onafriq to build and manage digital asset services for its partners and, over time, institutional clients in markets where regulations permit.

The first stage of the collaboration will focus on cross-chain stablecoin transfers, treasury operations and settlement processes, laying the groundwork for cross-border payment and liquidity services.

Cross-border payments within Africa still rely on multiple intermediaries, making transactions slower and tying up capital for longer than necessary.

Onafriq believes stablecoins can help reduce those delays by allowing businesses to settle transactions more efficiently.

In using Privy’s infrastructure, the company plans to introduce digital payment services that banks, fintechs and mobile money operators can integrate into their existing platforms.

It also intends to support secure multi-modal digital wallets as part of its effort to modernise payment infrastructure across the continent.

Luke Kyohere, group chief product and innovation officer at Onafriq, said the company sees digital asset technology as another step towards improving payment services.

“At Onafriq, we keep investing in technology that makes payments faster and more accessible. Privy gives us a building block for faster settlement and better liquidity management. As demand for digital asset services grows, our goal is to ensure Africa’s payment ecosystem benefits securely and in line with regulatory frameworks.”

Onafriq said it selected Privy because its enterprise-grade infrastructure can support digital asset wallet capabilities while keeping the underlying blockchain technology largely invisible to users. Any rollout will remain subject to regulatory approval in the countries where the services are introduced.

Henri Stern, co-founder and CEO of Privy, said reliable infrastructure will be essential as businesses increasingly adopt stablecoins for payments.

“Stablecoins will play an increasingly important role in the future of global payments, but real-world adoption depends on infrastructure that is secure, scalable and simple to implement. Working with Onafriq allows us to help build that foundation across Africa and beyond.”

The companies also plan to support additional institutional services in future, including stablecoin-based settlement, treasury management and liquidity solutions.

The agreement aligns with the current focus among African payment providers towards stablecoin infrastructure as they look for faster ways to move money across borders.

Rather than positioning stablecoins as investment products, companies are using the technology to improve payment processing, settlement speed and liquidity management for businesses.

Onafriq already operates one of Africa’s largest payment networks, connecting nearly one billion mobile wallets and more than 500 million bank accounts across 43 African markets.

The latest partnership expands its focus beyond traditional payment switching into digital asset infrastructure designed for banks, fintechs and other financial institutions.

The post How Onafriq, Privy Plan to Use Stablecoins to Improve Cross-Border Payments in Africa appeared first on Tech | Business | Economy.

However, the company also posted its first quarterly loss in its mobile business as high memory prices increased the cost of making smartphones.

The South Korean technology company said semiconductor operating profit reached ₩89.2 trillion ($61.7 billion) during the second quarter, more than 250 times higher than the same period last year.

Overall operating profit rose to ₩89.5 trillion, in line with its earlier guidance, while revenue more than doubled to ₩171.5 trillion, up 130% year-on-year.

The results show how demand for memory chips lifts Samsung’s earnings even as other parts of the business face challenges.

Higher chip prices boosted the semiconductor division, but they also raised costs of production for Samsung’s mobile business, which recorded a ₩700 billion operating loss, its first quarterly loss.

Despite reporting record earnings, Samsung’s shares closed 0.7% lower on Thursday after rising as much as 8.4% during trading.

The decline shows investors are worried about the current surge in demand for artificial intelligence infrastructure and whether it can be sustained over the long term.

Samsung said it has already signed multi-year memory chip supply agreements with the world’s five largest data centre operators and is close to securing similar deals with five more major customers.

The company expects those long-term contracts to cover about two-thirds of its memory chip production, giving it greater stability against the industry’s traditional boom-and-bust cycle.

“Almost all customers are requesting multi-year supply contracts,” Jaejune Kim, executive vice president of Samsung’s memory business, told analysts on an earnings call.

He added that the agreements will run for at least five years and typically include upfront payments and minimum pricing to reduce investment risk.

Samsung also expects revenue from its latest high-bandwidth memory (HBM4) chips to more than triple in the third quarter. The company believes this will help narrow the gap with rival SK Hynix in supplying memory used in AI processors.

The company counts Nvidia and Advanced Micro Devices (AMD) among its HBM customers and expects demand for advanced memory chips to remain strong.

Beyond memory chips, Samsung said its contract chip manufacturing business is also improving. It expects the foundry unit to return to profit soon as factory utilisation and chip prices continue to rise.

Samsung confirmed that its semiconductor plant in Taylor, Texas, remains on schedule to begin operations this year. It also plans to start construction of a second facility that could begin mass production in 2030.

The strong quarter also strengthened Samsung’s balance sheet. Net cash increased to ₩167 trillion by the end of June, prompting expectations that the company could increase shareholder returns.

Chief Financial Officer Park Soon-cheol said Samsung is “in active discussion” over special dividends and other aspects of its shareholder return program for this year.

“We remain fully committed to delivering on the program as promised and will provide for the update very soon,” he said.

However, technology stocks have been unstable in recent months as companies spend heavily on AI infrastructure. Competition from Chinese manufacturers has also added pressure on the sector.

Even so, Samsung’s latest results underline how its semiconductor business has become the group’s biggest earnings driver. Record chip profits more than offset weakness in smartphones, although the company will be hoping demand for premium mobile devices improves as component costs stabilise.

The post Samsung Chip Business Delivers Record Profit as Mobile Unit Slips into Loss appeared first on Tech | Business | Economy.

The announcement was made by Toyosi Etim-Effiong, the founder and chief executive officer of That Good Media and Founder of TGM Academy, during the inaugural Talent Management Leadership Roundtable, which convened leaders from the creative, diplomatic, cultural and corporate sectors to explore the future of talent management as a driver of sustainable industry growth.

Held at Eko Hotel and Suites, Victoria Island, Lagos, the gathering marked the official public introduction of TGM Academy, Nigeria’s first institution dedicated exclusively to the professional development of talent managers, while setting the foundation for stronger collaboration between government, industry, academia and international stakeholders.

Organized under the theme “Talent Management as Critical Infrastructure for Cultural Exchange and the Creative Economy,” the roundtable created a platform for meaningful conversations around the systems required to build sustainable careers for African creatives, strengthen global partnerships and position talent management as a recognized profession capable of driving long term economic growth.

Opening the roundtable as the Convener, Toyosi Etim Effiong, challenged industry stakeholders to rethink talent management beyond administrative support and recognize it as the invisible infrastructure powering successful creative careers.

She noted that while Africa continues to produce globally recognized musicians, filmmakers, actors, and creators, the systems responsible for managing and protecting creative talent have not evolved at the same pace.

“The future of African entertainment will not be determined by the quality of our talent. The world already knows that we have extraordinary talent. It will be determined by the quality of the systems we build around that talent, and by how effectively those systems connect African creativity with the rest of the world,” she said.

Presenting the vision behind TGM Academy, she announced the institution’s ambition to train and certify 10,000 professional talent managers across Africa by 2030, supported by a ₦2.5 billion funding initiative designed to strengthen the continent’s creative workforce and create sustainable career pathways for future generations.

She emphasised that investing in talent managers is ultimately an investment in the long-term success of Africa’s creative economy.

The event welcomed key international partners like the Vice-Consul (Political) at the South African Consulate General, Lefentse Matlhaga, the Trade Advisor Head of Education and Creatives, United Kingdom Department for Business and Trade, Nankling Danfulani, The Policy Support and Cultural Officer at Netherlands Embassy, Praise Oluwarinu, and the Head of Arts and Culture, British Council Nigeria, Harry Kesiena. They all explored the growing importance of international cultural exchange, cross border collaboration and institutional partnerships in expanding opportunities for African creatives within the global creative economy.

Delivering the goodwill message on behalf of the Honourable Commissioner for Lagos State Ministry of Tourism, Arts and Culture, Mrs. Toke Benson Awoyinka, Mrs. Olajumoke James, Deputy Director at the Ministry, reaffirmed Lagos State’s commitment to initiatives that strengthen the creative economy and develop the human capital required to sustain its continued growth.

Speaking on “Raising Leaders for the Creative Economy,” Executive Secretary of the Lateef Jakande Leadership Academy, Aishat Agbaje Okubadejo, highlighted the importance of investing in people with the same urgency traditionally reserved for physical infrastructure.

She emphasized that the future of Africa’s creative economy depends on institutional thinking, ethical leadership, and systems that endure.

“We need to stop seeing human capital development as secondary to physical infrastructure. Leadership is not about titles. It is about leaving institutions better than when we met them. The creative economy will only thrive when we intentionally build systems that outlive us and prepare people with the skills, ethics and curiosity required to lead the future,” she said.

One of the day’s highlights was a conversation with award winning producer and global media executive Sidra Smith, who spoke on “Building Creative Ecosystems Through Talent, Storytelling and Global Partnerships.”

Reflecting on her decades long career across film, television and international media, Smith described talent management as one of the most important investments Africa can make in its creative future.

She encouraged stakeholders to move beyond seeing creatives as individual personalities and instead build structured businesses around talent capable of generating sustainable economic value, international partnerships and long-term careers.

She further called for stronger support systems that enable creatives to focus on their craft while experienced managers negotiate opportunities, partnerships and commercial growth.

The conversation continued with a fireside chat between renowned leadership strategist Olakunle Soriyan and Toyosi Etim Effiong, where both speakers examined the future of Africa’s creative economy, emphasizing visionary leadership, institutional thinking and the deliberate development of ecosystems capable of competing globally.

Industry perspectives were further explored during the panel session “Connecting African Talent to Global Commerce,” featuring Ibukun “Aibee” Abidoye, Vice President at Chocolate City Group, Taiwo Adeyemi, Founder of BoxxCulture and Creative Industry Advisor, Harry Kesiena, the Head of Arts and Culture, British Council Nigeria and Michael Akinkunmi, CEO of 3 Days Agency.

The panel examined the evolving relationship between brands, creatives and talent managers, highlighting the competencies required for international representation, ethical management, sustainable partnerships and stronger commercial structures capable of supporting Africa’s next generation of global creative leaders.

A defining moment of the event was the official presentation of TGM Academy’s long-term vision and partnership strategy.

Toyosi Etim Effiong introduced Megowa, That Good Media’s newly launched digital platform designed to connect verified African talent, managers, brands, cultural institutions, production companies and international organizations through a trusted professional ecosystem.

She called on governments, diplomatic missions, corporate organizations, development agencies, foundations and industry stakeholders to become strategic partners in building the institutional infrastructure required to support Africa’s creative economy for generations to come.

Beyond introducing TGM Academy, the roundtable also marked the launch of the TGM Academy Scholarship Fund, inviting public and private sector partners to sponsor at least 50 students’ tuition at TGM Academy. This is to ensure that financial barriers do not prevent talented aspiring managers from accessing world class professional education.

“This is not a donation to a programme. It is an investment in the workforce that makes every other creative investment on this continent safer, more structured, and more profitable.” Toyosi said.”

The discussions throughout the day produced a broad consensus that talent management must become recognized as a strategic profession central to the continued growth of Africa’s creative industries. Participants agreed that stronger institutional partnerships, structured education, ethical leadership, international collaboration, and long-term investment in human capital will be critical to unlocking the continent’s creative potential.

Insights generated during the roundtable will directly inform the curriculum, partnerships and programme design of TGM Academy ahead of its official launch, ensuring that the institution reflects both global best practices and the practical realities of Africa’s creative industries.

As That Good Media prepares for the Academy’s official launch, the organization reaffirmed its commitment to building the systems, partnerships and professional standards required to position African talent managers among the most respected globally while strengthening the continent’s cultural influence and creative economy.

The post TGM Academy to Train and Certify 10,000 Talent Managers across Africa by 2030 appeared first on Tech | Business | Economy.

The National Information Technology Development Agency (NITDA) says the National Software Quality Assurance (SQA) Framework is designed to reduce software failures, strengthen cybersecurity and improve the quality of digital services used by citizens.

Although the framework will take full effect in the second quarter of 2027, government agencies and technology companies now have a transition period to prepare for the new requirements.

One of the biggest changes is that software developed for Federal Government projects will no longer receive IT Project Clearance without passing independent third-party testing and obtaining official certification.

The framework, signed by NITDA’s Director-General and Chief Executive Officer, Kashifu Inuwa Abdullahi, under the powers granted by the NITDA Act 2007, sets national standards for how software should be developed, tested and deployed across government institutions, regulated industries and the wider technology sector.

Rather than relying on a single set of rules, the framework combines three regulatory guidelines.

The National Software Development Guideline requires developers to follow structured software development processes, adopt OWASP secure coding practices, maintain standard documentation and ensure citizen-facing digital services comply with WCAG 2.1 AA accessibility standards.

The National Software Testing Guideline introduces compulsory testing standards covering system stability, cybersecurity, performance under heavy demand and interoperability before deployment.

In addition, the Software Testing Organisations Licensing (STOL) Guideline establishes a licensing system for independent software testing organisations that will assess and certify software before it is released.

NITDA has also introduced a risk-based classification system to match testing requirements with the importance of each platform.

High-risk systems classified as Class A, including core banking switches, national identity management platforms and power grid control systems, will undergo the highest level of security testing, penetration assessments and regulatory oversight.

Class B will cover medium-risk enterprise platforms, while Class C applies to lower-risk internal software used within organisations.

The agency believes the framework will improve the reliability of government digital services by reducing software defects, preventing avoidable system failures and protecting public investment in technology.

It also expects the new licensing regime to create opportunities for Nigerian software testing firms, encourage more engineers to earn international certifications and support the growth of a specialised software quality assurance industry.

NITDA further says stronger quality standards could improve international confidence in software developed in Nigeria and help local technology companies compete for business beyond the country’s borders.

Abdullahi said: “Quality is the foundation of digital trust. With this Framework, every software solution serving Nigerians whether built for government or the private sector will meet clear national standards for security, reliability, and interoperability.

“This is how we modernise government technology and position Nigerian software to compete on the global stage.”

Before the framework becomes fully enforceable in 2027, NITDA plans to hold stakeholder engagement sessions, organise capacity-building programmes and begin accrediting software testing organisations.

The agency also said it will soon invite Expressions of Interest from firms seeking licences to provide independent software testing services.

The post How NITDA’s Software Quality Framework Will Change Government IT Projects Before 2027 appeared first on Tech | Business | Economy.

The Facebook and Instagram parent reported revenue of $60.8 billion for the quarter ended June 30, up 28% from a year earlier.

Daily active people across its family of apps also grew 3% year-on-year to 3.6 billion, showing that user engagement remained strong.

Despite that growth, investors focused on the high cost of Meta’s AI expansion. The company’s free cash flow fell 91% to $784 million, compared with $8.55 billion in the same quarter last year.

The result was Meta’s weakest free cash flow performance since late 2022 and sent its shares down about 10% in extended trading.

The company also raised the lower end of its 2026 capital spending forecast and now expects capital expenditure to reach between $130 billion and $145 billion, up from its previous guidance of $125 billion to $145 billion. Earlier this year, Meta had projected spending of $115 billion to $135 billion.

Speaking during the earnings call, Chief Executive Officer Mark Zuckerberg defended the spending, saying the company is building for long-term growth.

“We expect that a significant portion of our compute is going to go towards training our models, growing our core business and delivering personal agents and new products, but we also expect to grow a large business serving large customers as well.”

Zuckerberg told analysts that Meta believes personal AI agents will become a major consumer business. He added that the company is in a strong position to turn that technology into new products and services, even though the investment is weighing on its finances today.

The scale of Meta’s investment is growing, as the company expects to spend as much as $145 billion on AI infrastructure this year, nearly double last year’s level.

It also plans to double its computing capacity to 7 gigawatts this year before increasing it again to 14 gigawatts next year. Meta currently has 32 data centres either operating or under construction.

The spending comes as Meta works to reduce its dependence on advertising by developing new AI-powered products and services. Even so, advertising is the company’s biggest source of income.

The quarter also fell short of analysts’ expectations on profit. Meta reported earnings per share of $6.18, below the $7.22 forecast compiled by LSEG.

Mike Proulx, a senior executive at research firm Forrester, said investors are beginning to see the financial impact of Meta’s investment strategy.

“Meta’s AI spend was easier to celebrate when margins were expanding. It’s harder to celebrate now that the costs are showing up in the numbers. Meta isn’t spending billions on AI infrastructure just to make Facebook and Instagram better. The company believes AI can create entirely new businesses.”

Luke Stillman, managing director at Madison and Wall, said the company’s advertising business continues to provide a solid foundation.

“Meta’s underlying ad business that’s financing everything though is still performing well and is our main focus.”

Meta is not the only technology company facing challenges from higher AI spending. Microsoft also reported a decline in free cash flow during the June quarter, although strong growth in its cloud business helped reassure investors and lifted its shares after the results.

Beyond the financial impact of AI investment, Meta is still dealing with legal and regulatory challenges.

Earlier this month, the company disclosed in a court filing that four U.S. states are seeking $1.4 trillion in penalties over claims that Facebook and Instagram were designed to addict young users and that the company misled the public about the platforms’ safety.

Meta had already warned in April that regulatory orders in both the United States and the European Union over youth social media issues could affect its business and financial performance. The company repeated that warning in its latest earnings report.

The company is also restructuring its business to support its AI strategy. In May, Meta laid off about 8,000 employees, roughly 10% of its workforce, as part of that effort.

Chief Financial Officer Susan Li said those restructuring costs, together with legal charges, weighed on the company’s operating performance.

“We continue to see scrutiny on youth-related issues in several markets and have a number of youth-related trials scheduled for this year in the U.S., which may ultimately result in a material loss.”

Li also said operating income would have increased 9% from a year earlier without legal charges and severance costs. Instead, operating income declined 8% during the quarter.

The post Meta Shares Fall as AI Spending Slashes Free Cash Flow Despite 28% Revenue Growth appeared first on Tech | Business | Economy.

Investors instead focused on the company’s forecast for the third quarter, which came in slightly below Wall Street expectations.

Equinix expects third-quarter revenue to range between $2.53 billion and $2.58 billion. The midpoint of that guidance falls just below analysts’ estimate of $2.58 billion, dampening investor expectations despite an otherwise strong quarter.

For the second quarter, the company reported revenue of $2.63 billion, a 16% increase from a year earlier and above analysts’ expectations. Net income rose 30% to $479 million, while earnings per share climbed 29% to $4.83.

Adjusted EBITDA reached $1.40 billion, giving Equinix a record EBITDA margin of 53%. Adjusted funds from operations (AFFO) per share also increased 19% year-on-year to $11.78.

The company also recorded strong customer activity during the quarter. It added a record 9,700 net interconnections, while annualised gross bookings grew 23%, making it the second-highest quarterly booking performance in its history.

Following the results, Equinix raised its full-year 2026 revenue forecast to between $10.21 billion and $10.29 billion, up from its earlier guidance of $10.14 billion to $10.24 billion.

It also increased its forecast for adjusted funds from operations to $42.69 to $43.29 per share, compared with its previous outlook of $42.31 to $43.11 per share.

Looking further, the company now expects annual revenue growth of 10% to 13% through 2029, higher than its previous forecast of 7% to 10%. It also lifted its long-term AFFO per share growth outlook to 9% to 12% annually from 5% to 9%.

Equinix plans to invest between $5 billion and $7 billion in capital expenditure each year, concentrating on its top 25 metropolitan markets. The company currently has 52 major projects under construction across 33 markets and expects to double cabinet deliveries during the second half of 2026.

The company said demand continuously comes from businesses upgrading their digital infrastructure and deploying new AI workloads. It added that customer demand is broad-based and growing, leaving it well placed to support enterprise networking, cloud and AI infrastructure requirements worldwide.

Equinix operates 281 data centres globally and provides businesses with secure, power-efficient facilities to host IT equipment alongside connectivity services. Its customer base includes Nvidia, Netflix, Adobe, Cisco and Palantir.

Although investors reacted cautiously to the near-term revenue outlook, Equinix guidance believes that demand for data centre capacity and digital infrastructure will continue to grow over the next several years, with shares having a positive projection.

The post Equinix Shares Drop 3% Despite Strong Quarterly Results, Higher Full-Year Outlook appeared first on Tech | Business | Economy.

Analysts expect the company to report revenue of $108.65 billion for the April to June period, Apple’s fiscal third quarter. That would represent a 15.5% increase from the same period last year, according to data compiled by LSEG.

The expected performance comes after Apple chose to keep iPhone prices unchanged, even as it increased prices for some MacBook and iPad models last month.

The company made those changes to offset higher costs of memory and storage chips linked to high demand from AI data centre projects.

Unlike several smartphone makers that passed expenses on to buyers, Apple left iPhone prices untouched. That decision appears to have worked in its favour.

Research firm Counterpoint estimates that global iPhone shipments increased 3% during the quarter, lifting Apple’s smartphone market share to nearly 20%.

The profit came as worldwide smartphone shipments fell to their lowest April-to-June level in 13 years after high cost of components pushed up prices across the industry.

Samsung and Xiaomi were among manufacturers that raised smartphone prices during the period, contributing to weaker consumer demand. Apple’s decision to avoid similar increases helped it attract more buyers.

While other technology companies have committed hundreds of billions of dollars to AI infrastructure, Apple has largely stayed out of that spending race.

That strategy has improved investor confidence in the company at a time when questions are growing over whether massive AI investments will deliver enough returns.

Apple shares have increased nearly 25% this year and briefly pushed the company’s market value above $5 trillion on Tuesday. The rally has helped Apple regain its position as the world’s most valuable listed company, overtaking Nvidia after two years.

“Apple was initially scorned by many investors for not joining the AI investment cycle. Now, it is actually being rewarded as investors question the relationship between (Big Tech’s) spending and return on investment,” said Dan Morgan, portfolio manager at Synovus Trust, which owns Apple shares.

The focus on AI spending has grown after Alphabet last week reported negative free cash flow for the first time in its history.

Despite the expected rise in revenue, analysts believe Apple’s profit growth will slow slightly. Net profit is forecast to increase 18.1% to about $19.7 billion, while gross margin is expected to fall to 47.9%, down from 49.3% in the previous quarter.

The company is still expected to record strong growth across most of its hardware business.

Analysts forecast iPhone revenue to rise 20.8%, marking its strongest fiscal third-quarter growth since 2021. Mac revenue is expected to grow 8.7%, up from 5.7% in the previous quarter despite higher prices. iPad revenue growth, however, is expected to ease to 5.2% from 8%.

Many investors are now looking beyond this quarter to Apple’s next iPhone launch, which is traditionally held in September.

Analysts widely expect the company to increase iPhone prices with the new lineup after already raising subscription prices for Apple Music and the Apple One bundle earlier this month.

Dan Morgan believes higher iPhone prices could eventually weaken demand and increase pressure on Apple, especially because its current valuation leaves “a lot of room for error.”

Even so, some analysts believe Apple customers are likely to absorb moderate price increases because of the company’s strong ecosystem and customer loyalty.

Morgan Stanley analysts said: “Apple’s core product demand has been somewhat inelastic, with iPhone being the most inelastic product within Apple’s product ecosystem, followed by Mac and then iPad.”

“This generally means that recent price increases are unlikely to materially disrupt demand, especially considering supply challenges at peers.”

The post Apple Earnings Preview: iPhone Sales to Drive Strongest June-Quarter Revenue Growth in Five Years appeared first on Tech | Business | Economy.

Options traders expect Microsoft’s share price to move about 6.6% in either direction after the company releases its fourth-quarter results on Wednesday. Based on the company’s market value, that represents a swing of roughly $190 billion.

The expected move is much larger than usual. According to Option Research & Technology Services (ORATS), Microsoft’s options have implied an average earnings move of 4.8% over the past 12 quarters, while the stock has actually moved about 4.4% during that period.

This time, investors are paying more for protection and bigger bets because Microsoft’s results are widely seen as one of the biggest tests of whether years of AI investment are beginning to provide noteworthy financial returns.

Wall Street expects Microsoft to report revenue of about $87.7 billion, up roughly 15% from a year earlier, while earnings per share are forecast at around $4.22.

One of the biggest numbers investors will watch is Azure. The cloud business expanded by 40% in constant currency during the previous quarter. Analysts now expect growth to remain above 35%, a level many believe would support Microsoft’s continued investment in AI infrastructure.

The focus has also moved to how businesses are using Microsoft’s AI products. Investors want evidence that enterprise customers are adopting services such as Copilot, AI-powered security tools and Dynamics AI rather than choosing competing platforms.

Seth Hickle, chief investment officer at Mindset Wealth Management, said: “The market is looking for results. This earnings season is about AI execution, not AI enthusiasm.”

Microsoft has spent heavily to build out its AI infrastructure. Capital expenditure reached $31.9 billion in its fiscal third quarter, a 49% increase from a year earlier, although it was lower than the previous quarter’s $37.5 billion.

The company is expected to spend about $190 billion on capital expenditure during fiscal 2026, with projections rising to around $220 billion in fiscal 2027.

Those figures have left investors concerned, especially after reports revealed that the world’s largest cloud providers could spend more on capital projects than they generate in free cash flow by 2027.

Peter Andersen, founder and chief executive of Andersen Capital Management, said: “Investors have seen the AI spending. Now they want to see the receipts.”

He added: “FOMO ‘Fear of Missing Out’ is now ‘Fear of Massive Overbuilding’.”

Microsoft’s shares have fallen between 18% and 20% this year, trailing the market. Over the same period, the S&P 500 has gained about 8.5%.

Despite those concerns, many investors are still backing the company.

Chris Murphy, co-head of derivatives strategy at Susquehanna, said a trader spent about $10.4 million buying 20,000 Microsoft call options earlier this week. The position reflects a bet that the stock will climb above $450 by August.

Murphy said: “Investors were willing to pay high option premiums for upside exposure.”

Trust has also spread across the software sector, with investors bringing 100,000 call options tied to the iShares Expanded Tech-Software Sector ETF ahead of Microsoft’s earnings and the US Federal Reserve’s policy decision.

This means the sector could benefit if Microsoft’s results exceed expectations.

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