In Other News: McDonald's Bet On China, Spy Dolphins, And AI Layoffs Vs. Stocks

TL;DR

AI layoffs haven't boosted stock prices for most companies, while McDonald's expands in China and the US Navy's dolphin program resurfaces amid Iran claims.

Key Points

• 1.AI layoffs have hurt more stocks than they've helped. Over half of ~24 publicly listed firms announcing AI-driven layoffs traded in the red afterward, averaging a 28% decline — far worse than the 27% of S&P 500 companies in the red since ChatGPT launched in November 2022.
• 2.AI productivity gains may be zero-sum across industries. Experts warn that if all competitors adopt AI simultaneously, the competitive baseline simply shifts, and no single company becomes more profitable — raising questions about whether layoffs are genuine efficiency plays or cover for broader cost-cutting.
• 3.Twilio and Datadog show a winning AI software playbook. Twilio stock rose ~45% in one month after unveiling AI agent communication tools; Datadog surpassed $1 billion in quarterly revenue for the first time, up ~60% in a month, by embracing AI-native solutions rather than competing with OpenAI.
• 4.The US Navy has trained dolphins for military use since 1959, and Iran claims it could too. Bottlenose dolphins use biosonar more accurate than electronic sonar for mine detection; RAND expert Scott Savitz says Iran may have animals but likely lacks the human training needed to work effectively with them.
• 5.McDonald's is betting heavily on China, where growth is outpacing all other markets. China is second only to the US in store count, half of McDonald's new stores last year opened there, and the brand thrives on nostalgia, value positioning, and locally tailored menu items like Dragon Fruit McFlurries and a $2 'poor man's meal.'