#analysis

Published 11/17/2025, 06:56 PM

https://www.investing.com/news/swot-analysis/five9s-swot-analysis-cloud-contact-center-stock-navigates-ai-transition-93CH-4363981

Medtronic (MDT) stock jumped early Tuesday after the medical products maker reported adjusted earnings of $1.36 per share on $8.96 billion in third-quarter sales.

On average, analysts called for $1.31 earnings per share and $8.87 billion in sales.

Is anyone else finding this damage control session to be hilarious? Yeah, let's blame the stock price on everyone else but TR

PS
Stock analysts now recommend buying TR. Duh, after 30% discount

Welcome to the world of the "forever layoff." Companies are increasingly making cuts year-round in small batches rather than big sweeping firings.

The smaller batches of layoffs let businesses make changes and shift strategies without attracting scrutiny — and they normalize layoffs as a typical part of work. But they still put people out of jobs and make workers super anxious.

https://www.axios.com/2025/11/16/rolling-layoffs-small-firings

The departments and roles most at risk in Verizon’s current layoff wave are those in non-hub locations, remote-only roles, legacy functions, and middle management, with a particular emphasis on areas not directly tied to core business transformation or strategic platforms.[reuters +3]
High-Risk Departments and Roles
• Remote/Non-Hub Employees: Workers based outside core and business hub locations or those exclusively remote are the primary targets.[remio +2]
• Middle Management: Over 20% of management roles, especially those with duplicative functions or not clearly aligned with growth priorities, are flagged for reduction.[finalroundai +1]
• Legacy and Support Functions: Departments relying on old technologies, process-heavy support teams, and administrative roles—especially those made redundant by automation or digital platforms—face higher risk.[remio]
• IT Support and Operations: Routine IT, helpdesk, and non-strategic operations, particularly those not driving cost savings or transformation, are being streamlined.[remio]
• Finance, HR, and Shared Services: These centralized functions face consolidation, with job loss risk greatest for those outside highly specialized, strategic, or compliance-driven roles.[fortune +1]
• Sales in Declining Markets: Sales teams in underperforming or shrinking segments are seeing targeted reductions, especially if their territory overlaps with others or shows declining ROI.[deccanchronicle]
Safer (But Not Immune) Roles
• Employees in critical, revenue-driving, or transformation-aligned teams—especially in core hubs—are less likely to be cut, but all business areas are under some level of scrutiny this cycle.[reuters +1]
In summary, remote workers, non-hub office staff, duplicative middle managers, and those in legacy support areas face the highest layoff risk at Verizon during this restructuring.

Fiserv stock is now under 60. With the terrible customer service and outdated technology offerings they offer that’s still too high. The fall of Fiserv should studied.

Occidental Petroleum (OXY) is preparing for its Q3 earnings report, expected to show a 52% decline in earnings year-over-year. Recent developments, including a 10% drop in stock value and mixed analyst opinions, are reshaping the company's investment outlook.

The happy-talk non-GAAP will be left out of the formal earnings filing, and we'll see how bad it really is. It's due 40 days after quarter end, which is Sunday. They will wait until after market close to do so.

One of the questions asked was: is there risk of bankruptcy, assuming this spouted from someone who heard one of the many 3rd party analyst saying there is a high risk of such an event.

The answer from SB was: Absolutely not, as long as we execute.

A great follow up would have been; Is there risk of not executing going forward? Looking back we’ve had 12 quarters of not executing, what changed?

SteveB,

You just reported Q3’25 results.

Let’s strip out the “reinvention” slogans and talk GAAP facts.

Because GAAP is the real score: it shows what a company truly earns and spends, with no special adjustments or “creative” add-backs.

Here are the questions employees and investors deserve answers to:

⸻

Q3 GAAP gross margin was 22.7%, not the ~29% “adjusted” number repeated on calls.

When will Xerox return to even 25% GAAP gross margin?

If not in 2026, what is the plan?

⸻

GAAP operating results remain NEGATIVE before interest expense in pro-forma terms.

How do you claim “positive operating momentum” when GAAP still shows operating LOSSES?

⸻

Xerox already took a ~$1B goodwill impairment in Q3’24.

Analysts expect another ~$1B in Q4’25.

After ~$2B in goodwill impairment in two years, how can you claim the strategy has created value?

⸻

Quarterly interest expense: ~$70M

Annual interest burden: ~$280M

How does Xerox service this debt load when GAAP operating income is NEGATIVE?

⸻

2025 Free Cash Flow (FCF) guidance cut to $150M, while cash generation relies heavily on receivables liquidation (~$400M).

Once receivables are gone, what funds operations?

When does Xerox produce true operating cash, not working-capital pull-forward?

⸻

Cash at Q3’25: ~$535M

Expected Q4 hit from impairment, restructuring, interest: > $1B

How many quarters of runway remain before EXTERNAL CAPITAL becomes MANDATORY?

⸻

Headline revenue +28% was entirely acquisition-driven.

Pro-forma organic revenue: -8%.

When does Xerox deliver organic growth — without buying it?

⸻

Legacy print equipment installs declined 24%; core print post-sale revenue -5%.

At what point do you acknowledge the print decline is STRUCTURAL, not “delayed demand”?

⸻

Synergies raised to >$300M, but integration costs are front-loaded and recurring.

What percent of announced synergies have actually hit GAAP results?

Not adjusted — GAAP. Give the number.

⸻

Moving SMB accounts to partners, closing direct touchpoints, offshoring operations.

Is this a transformation — or a cost-collapse to survive declining print economics?

⸻

Xerox booked a valuation allowance against deferred tax assets.

If the future is so bright, why does your own accounting tell us future taxable profits are uncertain?

⸻

1200+ roles eliminated.

Yet no GAAP earnings improvement.

How many more jobs must be cut before the financials turn? Or is cost-cutting the strategy?

⸻

Final Question:

When will Xerox return to GAAP profitability and positive GAAP operating cash flow without working-capital burn?

Provide a quarter and a number.

No slogans. No AI buzzwords. No “Reinvention” language.

Just GAAP math, dates, and accountability.

Employees, customers, and investors deserve nothing less.

https://investors.xerox.com/news-releases/news-release-details/xerox-releases-third-quarter-results-1

It's a question, not a statement.

We know they skipped the Goodwill testing and put it off until Q4. We also know they are required to do it once a year, and they absolutely have to in Q4.

If I'm reading this thing right, the Goodwill far exceeds the Total Equity. I know a lot of the one time losses will be gone on the Q4 call, but still, the EV could go to 0 or negative.

In a research note, MoffettNathanson analyst Craig Moffett said Schulman "described a shift towards being a customer-centric company, with the 'best value proposition' in the market. There is a clear focus on subscriber metrics. He called it a 'full reboot.' The obvious question is… how? Verizon is no longer perceived to have the best network. And it is perceived to have the highest prices. His promise to reverse subscriber losses without relying on promotions and price strikes us as more of a wish than a strategy."

Finance already runs super lean and has many lower level analyst spots open. Will it be spread even thinner in the lower positions? Will Sr Managers be mostly affected? I would assume that it isn’t the first to be cut..

With SAP and almost every other company flushing billions down the toilet chasing a phony dream, what happens after the crash?

https://www.commondreams.org/news/artificial-intelligence-bubble

MarketWatch reported on Friday that the MacroStrategy Partnership, an independent research firm, has published a new note claiming that the bubble generated by AI is now 17 times larger than the dot-com bubble in the late 1990s, and four times bigger than the global real-estate bubble that crashed the economy in 2008.

Perkins told Axios that he’s particularly wary because the big tech companies are claiming “they don’t care whether the investment has any return, because they’re in a race.”
“Surely that in itself is a red flag,” he added.

“I think that there will be a lot of capital that’s deployed that will turn out to not deliver returns, and when that happens, people won’t feel good,” he said.

To effectively control and reduce operational expenses (OPEX), companies can implement the following strategies:

Conduct Comprehensive Spend Assessments: Analyze spending patterns and cost centers to identify areas for cost reduction.

Utilize Data-Driven Insights: Implement advanced analytics tools to gain actionable insights and benchmarks for cost-saving strategies.

Negotiate Better Terms: Regularly evaluate vendor contracts and negotiate better terms with suppliers to secure volume discounts.

Strengthen Supplier Relationships: Build and maintain strong relationships with key suppliers to enhance collaboration and mutual cost-saving goals.

Develop Category-Specific Strategies: Create tailored strategies for high-impact categories, focusing on cost drivers and market conditions.

Optimize Across Categories: Identify synergies across different categories to leverage buying power and reduce costs on a holistic level.

Implement Procurement Technology: Adopt e-procurement platforms and spend analysis tools to streamline processes and enhance cost control.

By applying these strategies, companies can not only control their OPEX but also drive value and ensure long-term sustainability.

https://www.golimelight.com/blog/opex-planning

Facts, short interview excerpts, and a forward-looking analysis of how he may lead (some AI, some custom):

Dan Schulman

• Current role: Chief Executive Officer, Verizon Communications, effective Oct 6, 2025. He succeeds Hans Vestberg, who becomes a special adviser through Oct 4, 2026. Mark Bertolini becomes Board Chair.
• Age: 67. Recent context: Verizon is pushing to reignite growth and integrate a pending Frontier Communications acquisition targeted to close in early 2026.
• Education: B.A., Middlebury College 1980. M.B.A., NYU Stern.

Career highlights

• AT&T: 18 years, rising to president of the consumer long distance business and the youngest member of the company’s top executive team.
• priceline.com: President and COO, then CEO.
• Virgin Mobile USA: Founding CEO, took it public, later sold to Sprint Nextel. Post-deal he led Sprint’s prepaid group.
• American Express: Group President, Enterprise Growth, focused on new digital payments and partnerships.
• PayPal: CEO from 2014 through 2023, leading its spinout from eBay in 2015 and subsequent platform expansion.
• Selected moves: push for crypto features and a super app strategy, and the roughly 4 billion dollar acquisition of Honey to deepen consumer engagement.
• Verizon governance: Director since 2018, elected Lead Independent Director in Dec 2024, now CEO.

Key Accomplishments:

• Customer 1st
  At PayPal he implemented Customer Choice so users could pick how they pay. He noted that the day it was announced, the stock fell 9 percent, yet two years later PayPal reported 70 million incremental customers and lower service calls.

• Profit Driven
  He is associated with a measurable approach to employee financial health. PayPal introduced the Net Disposable Income metric and moved hourly and entry-level U.S. employees from roughly 4 to 6 percent NDI in 2019 toward mid-teens by 2021, with a goal of at least 20 percent.

• Crisis Response
  During the 2018-19 U.S. government shutdown, he initiated up to 500 dollar, interest-free advances to furloughed federal workers, committing up to 25 million dollars.

• Telecom Expertise
  Schulman has prior P&L leadership in wireless at Virgin Mobile and Sprint’s prepaid unit, which gives him domain context for Verizon’s mobility and broadband markets.

Some interview excerpts:

• On motion and risk: “There’s a philosophy in martial arts which is, ‘Never stand still’.”
• On choosing the customer over margin: “If we really are going to be a customer champion, what we need to do is give customers choice.”
• On short-term pain: “The day we announced it, our stock dropped 9 percent.”
• On purpose: “Profit and purpose are fully linked together.”
• On values: “Values can’t be propaganda. They have to be something that you not just say, but you do.”
• On day-one priorities at Verizon: “Verizon is at a critical juncture. We have a clear opportunity to redefine our trajectory.” Also, “reduce our cost to serve, and optimize our capital allocation.”

Let's predict how he will lead at Verizon (guessing, but still):

• Customer-first offers, simpler choices
  Expect emphasis on plan clarity, fewer gotchas, and tools that increase perceived value without price-only competition. This mirrors his “customer champion” approach that traded short-term margin for long-term engagement at PayPal.

• Cost to serve and digital self-service
  His own language points to lowering cost to serve. Look for pushes in app experience, proactive care, and churn-reduction through analytics so service costs fall while NPS rises.

• Growth (bundling + ecosystem expansion)
  At PayPal he broadened the platform with new features and Honey’s path-to-purchase data. At Verizon, comparable logic could show up as smarter bundles across mobility, home internet, and perks that deepen engagement rather than discounting alone.

• Capital Mgmt
  Telecom is capital intensive. Expect tighter capital allocation guardrails that tie spend to measurable growth in market share and cash generation, consistent with his opening memo themes and the company’s reiterated 2025 guidance.

• Workforce
  His record suggests a belief that better employee economics and inclusion improve outcomes. While Verizon’s footprint and labor mix differ from PayPal’s, watch for selective moves that support frontline productivity and retention.

• Telecom operator basics + fiber execution
  Schulman inherits a network built during Vestberg’s 5G push and a pending 20 billion dollar Frontier acquisition aimed at fiber expansion. Expect a pragmatic focus on fiber passings, broadband adds, and unit economics while integrating the deal if it closes as planned.

• Purpose/Pragmatism
  He is outspoken about acting on values. In a regulated, politically scrutinized sector, expect careful calibration so purpose initiatives remain tied to customer trust and operating results.

What to watch in the first 12 months

• Postpaid phone net adds, phone churn, and ARPU trends vs AT&T and T-Mobile. Context: Verizon seeks to regain momentum in a highly competitive market.
• Broadband and fixed wireless net adds, fiber build milestones tied to the Frontier integration timeline.
• Cost-to-serve metrics and digital adoption rates following any app or care redesigns.
• Signals on capital allocation and any portfolio or pricing simplifications in mobility and home.

You can use Google to find this:

• Verizon announcement and Schulman’s day-one remarks.
• Breaking coverage of his appointment and competitive context.
• Customer Choice case and measured outcomes at PayPal.
• Employee financial wellness program design and results.
• 2019 shutdown advances for federal workers.
• Honey acquisition rationale.
• Earlier telecom roles and Sprint-Virgin Mobile deal context.
• Background on education and early career.
• Latest coverage on Schulman and Verizon.

I guess most if not all of this article seemed to be available from the link I've pasted below.

But it didn't really convey any news other than "I'm not dead yet". Maybe someone with better reading comprehension / oiji board skills than myself can tell me the big news contained herein.

https://www.bizjournals.com/triangle/news/2025/10/01/cary-sas-ipo-artificial-intelligence-jim-goodnight.html?csrc=6398&link_source=ta_first_comment&taid=68dd33f5f5bfd20001db1ca5&utm_campaign=trueAnthemTrendingContent&utm_medium=social&utm_source=facebook&fbclid=IwY2xjawNKGhNleHRuA2FlbQIxMABicmlkETF2TjlLWTBPNkVMemtjSTVqAR4ptyAs0Oqrk0jB8Avtwg6Yn4gzNVt2NUmMQ7DHkhkNkRMMz-rESj4DEqAnXw_aem_x82wTJAKJiP9R3P3_STGfQ

I asked chat GPT why employees hate the CEO of Wells Fargo and this is what it told me.

Toxic Sales Culture / Incentive Pressure

Wells Fargo has long been criticized for setting extremely aggressive sales quotas and cross-selling goals. Employees felt pressured to meet unrealistic targets, sometimes leading to unethical behavior.

The infamous “fake accounts” scandal — where millions of unauthorized accounts were opened by staff to meet goals — still looms large in employees’ memories and influences trust in leadership.

Perception of Leadership Hypocrisy or Detached Promises

Employees often feel that top leadership makes reforms on paper or in public statements but that daily enforcement and genuine change are lagging. For instance, promises around improving culture, compliance, or ethics are sometimes seen as superficial.

Some policies intended to address issues (e.g. diversity goals or “diverse slates” for hiring) have themselves drawn criticism for being implemented in ways that seem performative or even misleading.

Comments & Missteps Around Diversity, Equity, and Inclusion (DEI)

One major flashpoint was when Scharf said the bank had trouble meeting diversity goals because of a “very limited pool of Black talent,” something many employees and external observers saw as tone-deaf or dismissive.

Related to this, there have been internal complaints about “fake” interviews (i.e. interviews with diverse candidates even though the job was already slated for someone else) as a way of demonstrating diversity metrics rather than sincerely seeking equitable hiring.

Morale, Burnout, & Pay / Recognition Issues

Employee reviews (e.g. on Glassdoor) frequently mention burnout, low morale, feeling undervalued, and feeling that compensation and recognition are not commensurate with the effort and risk.

There’s frustration over leadership decisions that seem to benefit the top (executives, shareholders) more than frontline employees. Raises, opportunities, and working conditions are seen as lagging.

Lack of Trust / Follow through

Because of past scandals, many employees feel leadership has repeatedly broken trust (e.g. promises that sales quotas would be reformed, changes to compliance, ethics policies). When things go poorly again, skepticism is high.

Some employees see discrepancies between public messaging and internal realities. Policies around return-to-office, diversity, performance metrics, etc., are cited as examples.

https://www.youtube.com/watch?v=8QNXItFgjTg

https://www.fool.com/investing/2025/09/28/prediction-ibm-will-thrive-in-the-ai-bo-m/

In the first plot select 'Insurance' and 'USAA':

https://www.economist.com/interactive/business/2025/06/16/corporate-culture?fsrc=core-app-economist&mc_cid=fa28ffc4ba

The second chart shows culture dimensions like Transparency, Candor, Strategy vs leadership, pre and post COVID.

https://www.reuters.com/business/energy/conocophillips-deep-layoffs-highlight-need-capital-discipline-analysts-say-2025-09-08/

Microsoft is in a strange moment in 2025, showing record profits and massive AI investment while also cutting more than 15,000 jobs, about 7 percent of its workforce. The latest and biggest wave of layoffs came in July, with 9,000 employees let go, following earlier cuts in May and June. CEO Satya Nadella addressed this paradox in a memo, calling it the “enigma of success”—a reminder that in tech, growth is never permanent or evenly spread.

Nadella said Microsoft is pouring $80 billion into AI and cloud infrastructure this year while shifting its mission from building static software to becoming an “intelligence engine.” He described a future where everyone can instantly access AI-powered research, analysis, or coding help. To make that happen, teams are being reorganized and capital is being redeployed, even at the cost of jobs.

The layoffs reflect a broader trend across the tech industry, where more than 80,000 jobs have been cut this year as companies adapt to AI-driven automation. Nadella thanked departing staff for their contributions but made clear there are no promises of stability ahead. Instead, he urged employees to keep a growth mindset and embrace the “messiness” of transformation, comparing today’s AI shift to the rise of PCs in the 1990s.

Source:

https://www.aol.com/finance/satya-nadella-enigma-success-age-195444502.html

WF culture summed up by Deep Research analysis of thelayoff.com

Summary

Based on a qualitative analysis of employee discussions on a public forum, the internal health of Wells Fargo appears to be in a state of significant distress. The corporate environment is marked by pervasive anxiety, a deep erosion of psychological safety, and a cultural disconnect. The key drivers of this sentiment are recurrent and often uncommunicated layoffs, a return-to-office (RTO) mandate, and a perceived culture that prioritizes corporate allegiance over individual performance. For a prospective employee, the landscape is one of extreme caution, where job insecurity and arbitrary change are constant threats.

Section 1: The Context of Corporate Transition

Employee discussions reveal that corporate directives, such as layoffs and RTO policies, are major sources of discontent and uncertainty.

1.1 The Layoff as a Continuous Process

Layoffs at Wells Fargo are not viewed as isolated events but as a recurring, systemic process. The forum frequently references "Termination Tuesday" , a term that has become part of the professional lexicon for some employees. This suggests a predictable schedule for job cuts, creating a state of perpetual anxiety and anticipation. The discussions also mention rumors of "another large round of layoffs in mid-September, especially in Tech". The routinization of layoffs signals that job security is not part of the social contract, creating a "waiting for the other shoe to drop" mentality that hinders productivity and innovation.

1.2 The Return-to-Office Mandate

The Return-to-Office (RTO) mandate, which requires employees to come in "3 days per week" , is a frequent and contentious topic. It is widely perceived as an arbitrary policy and a symbol of management's distrust. The passive resistance, such as questioning whether it is acceptable to "work only four hours in the office" , indicates that employees feel they are complying with the letter of the law but not the spirit. This dynamic erodes the trust between management and the workforce, shifting the relationship from a partnership to a command-and-control dynamic.

Section 2: The State of Employee Morale

The emotional landscape of the Wells Fargo workforce is one of stress, burnout, and profound disillusionment.

2.1 Disillusionment and the Sense of Liberation

The most powerful indicator of low morale is the surprising sense of liberation expressed by employees who have been laid off. Comments that being laid off was the "best week in the last decade" and the expression of being "free" are a profound indictment of the company's work culture. This suggests that the work environment has become a source of immense psychological burden and professional suffering, where job loss is seen as a release from stress and a form of mental and emotional imprisonment.

2.2 Burnout and Compensation Resentment

Discussions on the "infinite workday" and widespread burnout point to a culture of overwork where employees feel compelled to be constantly available to prove their value in a climate of job insecurity. At the same time, discussions about "salary compression" where "lower roles are reclassified to higher roles without a pay increase" are a source of significant resentment. Employees see this as a sign of disrespect, a clear message that the company is willing to extract more value without offering a commensurate reward.

Section 3: The Erosion of Psychological Safety

Psychological safety, the belief that one will not be punished for speaking up, has been critically compromised.

The constant discussion of layoffs and the ominous presence of "Termination Tuesday" create a climate where employees cannot feel secure. The anecdote of an individual being "laid off after 14 years" shows that even long-term loyalty offers no protection. This lack of security forces employees into a defensive, self-protective posture that hinders collaboration and productive risk-taking.

A particularly damning piece of evidence is the anecdote that a laid-off employee's "exact job was being offered to temps at a lower wage". This demonstrates that the company views its human capital as a fungible commodity. The cynical rejection of corporate justifications, such as the belief that "AI is (still) mostly a scapegoat" for layoffs , further reveals a deep distrust of management's motives.

Section 4: The Cultural Disconnect

The discussions reveal a profound cultural critique of the organization. The description of Wells Fargo as a "cult" where "performance is less valued than being a 'True Believer'" is a critical insight. This suggests a culture where success is based on ideological loyalty and conformity rather than objective performance or competence. This system stifles critical thinking and innovation, as political savvy is rewarded over genuine results.

The use of "buzzwords" and the perception of managers "doing NOTHING" indicate a lack of authentic leadership and a significant disconnect between corporate communication and the reality of day-to-day work.

Section 5: Insights for a New Employee

For a prospective employee, the report provides a candid assessment. The official corporate narrative is likely at odds with the lived reality of the workforce. A new employee will be entering a culture defined by anxiety and mistrust, where job insecurity is a constant threat and loyalty is not rewarded.

The advice is to be pragmatic and self-reliant. A new employee should not rely on the company for job security or psychological safety. The evidence suggests that job tenure offers no protection and that management is viewed as indifferent to the personal toll of its policies. It is recommended that a new employee approach the role with the understanding that the company's primary focus is on cost-cutting and control, and that their well-being is a secondary concern.