Good morning readers. The Department of Transportation has officially laid down the law for airlines: refund your customers or face the consequences. No more wriggling out of compensating passengers for canceled or delayed flights. It’s cash back or original payment, no questions asked. You’ve got options too; if they mess up your itinerary, or your bags take an extended holiday, you’re entitled to your money back. Plus, airlines can’t sneak in extra fees anymore. Secretary Buttigieg isn’t playing around. It’s time for airlines to fly straight or face some turbulence.

Happy travelling friends.

Let’s jump into today’s storylines.

In today’s digest:

• Meta stock plunges despite Zuck’s optimism for the future

• Headline Hustle: Biden signs bill to ban TikTok into law, business groups race to block FTC ban on noncompete agreements, Russian court orders seizure of JPMorgan funds

• You can text and stream movies from the moon soon

• Pulse Points: What’s Trending

TECH

Meta stock takes a 19% dive, despite AI and Metaverse hype

Mark Zuckerberg might as well have opened Meta’s earnings call with a time machine, as he zoomed straight into the future, talking up everything from artificial intelligence to augmented reality headsets. But instead of wowing Wall Street, his forward-looking focus prompted a 19% nosedive in Meta’s stock in extended trading—erasing a staggering $200 billion from its market cap.

Zuckerberg’s AI Vision

Zuck spent much of his opening remarks talking about Meta’s foray into artificial intelligence, including Meta Llama 3, the company's latest large language model, and Meta AI, its answer to OpenAI's ChatGPT. These projects, however, seem to be more cash-hungry than profit-generating. Reality Labs, the division steering these futuristic projects, reported a staggering $3.85 billion in losses this quarter alone, contributing to a total loss topping $45 billion since the end of 2020.

Despite the current financial drain, Zuckerberg is playing the long game.

• He highlighted past innovations like Reels and Stories, which also faced initial skepticism but later became significant revenue streams.

• His focus remains steadfast on transforming Meta’s current investments into future ad revenue generators and expanding into new realms such as work or fitness through mixed reality headsets.

Efficiency amid expansion

Acknowledging the sharp stock decline, Zuckerberg reassured investors that efficiency remains a priority even as the company ramps up its investment in AI, projecting capital expenditures up to $40 billion for 2024. This move is part of what he describes as a “multiyear investment cycle” aimed at scaling Meta’s AI products into profitable services.

A rocky ride for investors ahead. Meta’s vision is clear, but the path is tumultuous. The tech giant’s light revenue forecast for the upcoming quarter did little to soothe investor nerves, prompting a sell-off even before the earnings call. Yet, Zuckerberg remains optimistic, inviting shareholders to stay the course, promising that those who do could see substantial rewards in the long term.

IN THE KNOW

Headline Hustle

🖋️ Biden signs bill to ban TikTok into law. President Biden signed into law a bill providing aid to Israel, Ukraine, and Taiwan, alongside measures targeting TikTok's parent company. The legislation, following bipartisan Senate approval, allocates approximately $60 billion to Ukraine, $26 billion to Israel, and $8 billion to security in Taiwan and the Indo-Pacific. It compels ByteDance to sell TikTok within nine months, facing a national ban otherwise. TikTok vows to contest the law, calling it unconstitutional, while Biden's reelection campaign plans to continue using the platform.

📜 Top business groups race to block FTC ban on noncompete agreements. Top business groups and a tax-services firm are challenging the FTC's noncompete ban in federal court, arguing it's an overreach. The rule prohibits noncompetes for all but senior executives, affecting one in five Americans. The Chamber of Commerce and Ryan LLC filed lawsuits, fearing intellectual property loss. The FTC defends the move, saying noncompetes stifle labor competition. Legal battles will test the FTC's regulatory authority amid broader antitrust enforcement.

🏦 Russian court orders seizure of JPMorgan funds amid Ukraine conflict. A Russian court ruled in favor of VTB Bank's bid to recoup $439.5 million frozen by JPMorgan Chase after the Ukraine invasion. The court ordered the seizure of funds in JPMorgan's Russian accounts and assets, escalating tensions between American banks and Russian interests. JPMorgan faces a significant loss as it complies with U.S. sanctions. The legal battle highlights the challenges banks face amid geopolitical conflicts and regulatory pressures.

SPACE

Moonwalking with a signal: NASA and Nokia’s plan to network the moon

Think of making a trip to the moon? At least you’ll still be able to text and stream your favourite movies, thanks to a collaboration between NASA and Nokia. This unlikely duo is gearing up to deploy a 4G network on the Moon, setting the stage for long-term human presence on other planets.

A tough gig on the moon

Setting up a cellular network on the Moon isn't your typical weekend DIY project. Experts from NASA's Space Technology Mission Directorate explained that the equipment must meet stringent size, weight, and power requirements. Plus, it needs to survive the Moon's extreme temperatures and radiation without human intervention.

Nokia's Bell Labs is building the 4G network, which will be installed by a US company, Intuitive Machines. Once deployed, it will connect the lander via radio equipment to two roaming vehicles on a mission to find lunar ice. These robots will explore the Moon's Shackleton Connecting Ridge and even plunge into a crater, sending images back to Earth in near-real-time via the cellular network.

Why it matters. Lunar ice isn't just a cool discovery—it could provide breathable oxygen and fuel for future missions to Mars. Engelund said communication on the Moon is as vital as water or air for the success of Artemis missions, especially as they become more complex. The cellular network could eventually support high-resolution video and data, allowing astronauts to communicate as easily as if they were on Earth. So, the next time you complain about poor signal, just remember—there’s a network on the Moon.

SNIPPETS

Pulse Points

• National political leaders increased pressure on Columbia University President Minouche Shafik to resign amid ongoing pro-Palestinian protests at the New York campus and other colleges nationwide.

• Trump Media & Technology Group has requested Congress to investigate its suspicions of illegal activity contributing to the decline in its share price.

• The U.S. Senate has initiated an investigation into the high prices of Novo Nordisk's popular weight loss and diabetes drugs, Ozempic and Wegovy, in the United States.

• Following a yearlong criminal investigation in Arizona, Rudy Giuliani, Mark Meadows, and several others were indicted for allegedly attempting to overturn Donald Trump’s 2020 election defeat in the state.

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