Twitter CEO Elon Musk announced changes to the platform’s direct messages feature including the introduction of encryption.
STR | Nurphoto | Getty Images
Twitter could launch encrypted direct messages on Wednesday, Elon Musk said, as the CEO outlined plans to boost communication features on the social media service.
Musk said in a tweet late Tuesday that the latest version of the Twitter app contains changes to direct messages or DMs — non-public messages users send to one another.
The CEO said that users can now reply to any message in a DM thread, not just the most recent, as well as use any emoji to react to a message. Previously, users would only be able to reply to the latest message in a DM thread and only react with specific emojis.
Musk also announced that encrypted DMs “should” be released on Wednesday.
Encryption in messages means that only the sender and receiver are able to see a message. In theory, Twitter and Musk would not be able to see or intercept direct messages between people.
“The acid test is that I could not see your DMs even if there was a gun to my head,” Musk tweeted.
Facebook parent Meta said in January that it was expanding testing for default end-to-end encryption for its Messenger service. WhatsApp, the other messaging app owned by Meta, has had end-to-end encryption for several years.
Encrypted messaging services have grown in popularity in the past few years as users focus more on privacy.
Musk also said that voice and video calls will be added soon to Twitter so users can “talk to people anywhere in the world” without giving them a phone number.
Since Twitter’s inception, the development of the direct messages feature hasn’t got much attention from previous CEOs. But Musk has signaled numerous times his intention to make Twitter into an “everything app” from messaging to financial services.
New Twitter features Musk promises are not always introduced on time. In February, he said Twitter would introduce a feature to share advertising revenue with creators on the platform. That hasn’t happened yet.
Qualcomm CEO Cristiano Amon speaks at the Computex forum in Taipei, Taiwan, June 3, 2024.
Ann Wang | Reuters
Qualcomm said on Tuesday that it expects its push into new markets to generate an additional $22 billion per year by 2029.
Of that amount, roughly $4 billion will come from PC chips, Qualcomm said at its investor day on Tuesday. The chipmaker just introduced PC processors earlier this year, when it released Snapdragon X for Windows devices.
The latest forecast marks an important milestone for Qualcomm CEO Cristiano Amon, who took over the company in 2021 with a promise to get past a reliance on smartphones. In fiscal 2024, Qualcomm’s handset business reported $24.86 billion in sales, about 75% of its entire chip business.
Qualcomm also said on Tuesday that automotive revenues would rise about 175% by 2029 to $8 billion, of which 80% is tied to contracts that have already been secured.
“We have been on this trajectory realizing that the technologies we have developed over the many years can be very relevant to a number of different industries beyond mobile,” Amon said at the investor event.
Another $4 billion in revenue will come from industrial chips and $2 billion will come from chips for headsets, a category Qualcomm calls XR. About $4 billion of the forecast is a catch-all for other chip sales, like those for wireless headphones and tablets.
Qualcomm shares are up 16% this year, trailing the Nasdaq, which has gained 26%.
Qualcomm grew rapidly over the past decade as its modems and processors became essential parts for high-end smartphones, especially those running Google Android. Qualcomm also sells modems and related parts to Apple for its iPhones.
But the company has warned investors that Apple could choose to stop buying Qualcomm parts as soon as 2027. Qualcomm said on Tuesday that its growing businesses will more than offset any losses from Apple.
A Li Auto L9 electric vehicle (EV) is seen displayed at the Qualcomm booth during the first China International Supply Chain Expo (CISCE) in Beijing, China November 28, 2023.
Florence Lo | Reuters
Qualcomm’s strategy under Amon has been to use the technology its developed for its handset chips, like modems, processors, and AI accelerators, in new markets, including cars, PCs, and virtual reality. The investor event was the first time in years that the company has given a forecast for those new markets. Qualcomm said its total addressable market is as large as $900 billion.
“We put a strategy in ’21, and we’re not changing our strategy,” Amon said.
Laptop and desktop chips are currently dominated by Intel, which has over 70% percent of the market, according to Mercury Research. Intel reported $29 billion in PC chip sales in its 2023.
“The competitive landscape changed between the Windows and Macs,” Amon said, referring to Apple’s move in 2020 to switch from Intel to its own processors. “We saw that as an opportunity, especially as the ecosystem did not have confidence in the existing players to actually deliver a solution.”
The forecast for XR headsets also hints at the growth potential of the VR market over the next five years. Qualcomm supplies chips to many of the top headset makers, including Meta for its Quest and Ray-Bans products.
When it comes to artificial intelligence, Qualcomm calls itself an “edge AI” company, in contrast to cloud-based AI that’s typically powered by Nvidia processors. Company officials didn’t rule out introducing data center products in an interview with CNBC.
Qualcomm suggested that its mobile chips will be able to run the kind of advanced AI that’s restricted to large server farms today, an indication that that company may benefit from the AI boom down the road as the technology becomes more efficient.
“What you can run on the cloud last year, you can run on the device this year,” Durga Malladi, Qualcomm’s senior vice president in charge of planning, said at the event.
Options on BlackRock’s popular iShares Bitcoin Trust ETF (IBIT) began trading on the Nasdaq Tuesday, ushering in a new way to trade and speculate on the price of bitcoin.
IBIT traded 73,000 options contracts in the first 60 mins of trading Tuesday, Nasdaq told CNBC, placing the fund in the top 20 of the most active nonindex options.
Options trading allows investors to play bitcoin’s notorious volatility by letting them buy or sell an asset at a predetermined price based on whether they anticipate the price will rise or fall in a given period.
“Bitcoin has a lively derivatives market, but in the U.S. it is still tiny compared to other asset classes, and is largely limited to institutional players,” said Noelle Acheson, economist and author of the “Crypto is Macro Now” newsletter. “A deeper onshore derivatives market will enhance the growing market sophistication. This will reinforce investor confidence in the asset, bringing in new cohorts while enabling a greater variety of investment and trading strategies … [That] should, all else being equal, dampen both volatility and downside.”
The market for options contracts on major ETFs can be extremely active, and are widely used by more sophisticated traders. For example, over the past five business days, Interactive Brokers clients have more options orders on the Invesco QQQ Trust (QQQ) and the SDPR S&P 500 ETF Trust (SPY) than for the funds themselves, according to data from the brokerage.
The launch of the bitcoin ETF options will likely also lead to new funds that incorporate those options, said Todd Sohn, ETF strategist at Strategas.
“Grayscale already did a filing for a covered call [fund], and I’m sure BlackRock will come out with it too. And then we’re going to get buffers, and then we’re going to get whatever other trend-following-type strategy that folks think of. I think the ecosystem’s really going to start to fly here,” Sohn said.
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The stock prices for H&R Block and Intuit fell after a report Tuesday said Trump’s government efficiency team is considering creating a free tax-filing app.
Intuit, which makes the TurboTax tax-filing software, was down 5%, putting it on pace for its worst day since Aug. 23, when the company’s stock price fell nearly 7%. H&R Block was down 8% and on pace for its worst day since 2020.
President-elect Donald Trump’s “Department of Government Efficiency” has held “highly preliminary” discussions about creating the free tax-filing app, The Washington Post reported. The so-called DOGE will not be an official government department but an outside advisory commission. It will be led by billionaire Elon Musk and former Republican presidential candidate Vivek Ramaswamy and aims to slash government spending.
A DOGE tax-filing app would be a competitor of both H&R Block and TurboTax.
Intuit spokeswoman Tania Mercado didn’t directly address the prospect of a government tax-filing app, but told CNBC in a statement that, “For decades, Intuit has publicly called for simplifying the U.S. tax code so individuals, families, and small businesses can better understand their finances.”
George Agurkis, H&R Block’s director of government relations, said in an email that the company looks forward “to engaging with the new Administration and the Department of Government Efficiency on their ideas related to sound and efficient tax administration.”
It’s unclear where a new DOGE tax app would bridge with newer policies the Biden administration already implemented. Under the Biden administration, the IRS in March rolled out a pilot Direct File program in 12 states, allowing qualified taxpayers to file directly through a government portal. The IRS also offers free filing services through its Free File program for taxpayers who make an adjusted gross income of $79,000 or less.
While both Intuit and H&R Block have free filing options, neither have had stellar records when it comes to transparently offering those services.
The Federal Trade Commission in February filed an administrative complaint against H&R Block for deceptively marketing free filing products and wrongfully deleting users’ in-progress tax data. Intuit, meanwhile, agreed to pay $141 million in restitution “for deceiving millions of low-income Americans into paying for tax services that should have been free,” according to the office of New York Attorney General Letitia James.