by Andile April | Jul 4, 2022 | Articles
Semiconductor stocks took a beating Friday after a grim profit warning from Micron Technology Inc. sparked fresh worries about Corporate America’s earnings power with the US potentially heading for a recession.
Despite the broader stock market rally, the Philadelphia Stock Exchange Semiconductor Index dropped 3.8% after Micron, the largest maker of memory semiconductors in the US, flagged that demand was cooling for chips used in computers and smartphones.
The index — which is home to chip giants Advanced Micro Devices Inc. and Nvidia Corp., as well as Micron — is down 38% in 2022.
Historically, semiconductor stocks have been a key barometer for the broader stock market and economy.
Chips are used in a broad range of industries that are important for growth: appliances, data centers, gaming and artificial intelligence.
If conditions are weak for chips, it raises questions about demand in other corners of the economy, which is a troubling harbinger for the stock market, according to Matt Maley, senior strategist at Miller Tabak + Co.
“We had nowhere near enough chips, and now the demand is falling,” Maley said. “What signal does it send? It highlights a growing concern that the slowdown we’re going through will turn into a recession.”
The global semiconductor shortage, driven by factors on the demand and supply sides of the economy, has eased somewhat, but there is still limited production for certain chips used in cars and home appliances.
Troubling reports from semiconductor companies ahead of their second-quarter earnings are spurring fears that demand will exceed supply for even longer.
“What this weakness indicates is that the economy is slowing, and there’s potential for a recession,” said Tim Ghriskey, senior portfolio strategist at Ingalls & Snyder.
“Semis are a red flag because they’re really in everything. They’re so integral to everything that’s sold today. They’re the most rudimentary equipment, so this is a major negative for the economy.”
Worst Over?
Even so, signs are emerging that companies may be able to combat ongoing supply-chain woes.
On Friday, General Motors Co. said it expects second-quarter sales and profit to take a hit due to chip-supply snags, but the company reinforced that it can make up for delayed production later this year and reaffirmed its full-year earnings guidance.
With shares of the automaker jumping as much as 3.5% on Friday, it may signal that the worst is over for semiconductor producers.
In fact, stock market valuations for chip stocks like Micron appear “incredibly cheap,” according to Siddharth Singhai, chief investment officer of IronHold Capital, a value-based hedge fund.
“Things are getting sold irrationally due to passive investing and the fact that rates are high and inflation is high,” Singhai said.
“It’s all driven by fear rather than a real understanding of fundamentals.”
That said, betting against chipmakers was a winning bet last quarter as the market weakened and stocks tanked.
And bears are raising their bets that the rout has further to go.
Short interest in the $6.2 billion iShares Semiconductor exchange-traded fund, ticker SOXX, jumped to 10% of the free float in late June, the highest level since December 2020, data compiled by S3 Partners show. The ETF is down around 4% on Friday and has lost 38% this year.
So looking ahead, the risk for chipmakers and the rest of Corporate America remains a recession in the US.
“Supply will start to come back at some point,” Ghriskey said. “But if the economy is weak, there will be a follow-on demand issue, so investors and companies could get hit twice.”
Editor@tech-talk.co.za
by Andile April | Jul 4, 2022 | Articles
Just a few years ago, it would have been inconceivable that so many people would be using online channels for so many services. But as people become more comfortable with digital platforms, and with Covid providing a push, the era of the empowered South African digital consumer is now in full swing.
CM.com has published research into online habits in South Africa, uncovering insights into local consumers’ online activity and what it means for businesses.
“The rise in activity related to the online banking and shopping sectors has been well documented, but there’s a gap in knowledge when it comes to what’s happening in other industries,” says James Bayhack, CM.com’s sub-Saharan Africa director.
“Our research covers these areas, and also investigates significant gaps in the local online market that will hopefully help businesses improve customer service, drive growth, and increase reach. Consumers are embracing online for everything, so more industries need to think about how they can meet this demand.”
The report outlines how South Africans are using online channels to purchase tangible and intangible products and services. But it’s about more than e-commerce – online channels are helping businesses streamline operations by allowing customers to do what they used to do in-branch, or via the phone or email.
Consumers have not only come to expect that most goods and services should be available online, they also demand a certain level of service. CM.com’s data reveals that most local businesses selling their products or offering services online are not adequately keeping up with the pace of change in consumer habits and the surge in interest.
The study covers the financial, retail and e-commerce, healthcare, travel and leisure, and e-services sectors, investigating how consumers are responding to businesses’ online efforts. The findings show that some sectors have been enjoying more success than others, and it also outlines key areas where businesses need to improve.
Highlights from the report include:
* 96% of the study’s sample are going online for a variety of activities, including banking (87%), general shopping (62%), grocery shopping (48%), and booking accommodation (43%).
* 41% of the respondents indicated that they prefer Facebook, Instagram, or WhatsApp as shopping channels, with 24% preferring websites.
* Online channels underdelivering is a barrier to growth – 46% of respondents said that online channels fall short of their service expectations.
* Customers’ key frustrations are linked to a lack of convenience. 52% of respondents said that their biggest frustration when trying to resolve a problem online was getting a delayed response to a query, with 51% indicating that they have to repeat themselves multiple times when they are passed to different agents.
The study also shows that experiencing frustrations online makes customers more likely to switch to a different business. And businesses that can solve these frustrations better than competitors are likely to come out on top.
Editor@tech-talk.co.za
by Andile April | Jul 4, 2022 | Articles
More than half of cybersecurity professionals agree that people don’t need a university degree to have a successful career in cybersecurity, despite 85% of those professionals holding degrees related to IT, computer science technology.
Forty-five percent of respondent to a cybersecurity industry talent shortage conducted on behalf of Trellix reported working in careers and professions other than cybersecurity in the past, although more than half had roles in more general information technology environments.
The research into the which offers an extended detection and response (XDR) approach to protecting private and public entities from cybercriminals.
“The cybersecurity world changes so quickly that it’s difficult to study the theory in a university and then apply that knowledge in the working world,” says Carlo Bolzonello, country lead for Trellix in South Africa. “Success in cybersecurity needs an inquisitive and analytic personality, along with the ability to remain composed and calm under pressure.”
This makes a career in cybersecurity a potential opportunity for those among South Africa’s high unemployment statistics, who may otherwise not have considered the field because they believed it requires formal education that they may not be able to afford.
“As someone who started my career in cybersecurity by working in a computer retailer – and who does not have a university degree but has a number of industry-specific qualifications, I encourage South Africans to consider a career in cybersecurity,” Bolzonello says.
“South Africans are world-renowned for their strong work ethic, and their willingness to take on any task, even if it falls beyond their job description. We’re also naturally curious and determined to find a work-around to just about any situation – all attributes that make a strong cybersecurity professional,” he adds.
Respondents to the survey describe a career in cybersecurity as ‘purposeful and motivating’, with more than half choosing the sector because it is progressive and constantly evolving, and they enjoy exploring challenging new trends. Four in ten emphasized the relevance of cybersecurity as business, industry and government become increasingly digitally platformed, with one in five saying that they had chosen the field because the value doing something that helps society for the greater good.
Despite these motivations, a little more than one third of the professionals surveyed felt that there’s a lack of recognition among society for the importance of the work they do.
More than 90% of cybersecurity professionals emphasize that there is a skills gap in their profession, despite a growing demand to fill security-related roles, while more than one third note that there is limited support when it comes to the qualifications and certifications required to enter the industry.
“It’s inspiring to see that 92% of cybersecurity professionals believe that greater mentorship, internships, and apprenticeships would encourage more diversity in cybersecurity roles,” Bolzonello continues.
“They also believe that the three most important steps towards encouraging new candidates in the industry are raising awareness of cybersecurity careers, encouraging students to pursue STEM-related careers throughout their education journey, and more funding to support learning. It’s clear that there’s no single quick fix to the cybersecurity skills challenge, but there are multiple ways to address the various challenges,” he says.
Those surveyed recognised that their own organisations could be doing more to encourage more people into the industry, including broader recruitment drives, community mentoring in schools, and being more open to considering job applicants from non-traditional cybersecurity backgrounds.
Bolzonello, as a self-taught cybersecurity specialist, adds that many local companies are cautious to invest in cybersecurity skills development because, with demand for expertise being so high, they fear that newly skilled workers will leave for greener (better paid) pastures as soon as they’re qualified.
“Companies need to constantly review salaries against market rates to retain skills, but they also need to remember that the fast-changing nature of this sector means that some of the best experts in the game are self-taught, without any formal certifications. Insisting on remunerating people based on their qualifications is counter-intuitive in this field – people should be remunerated based on their skills and experience too.”
Editor@tech-talk.co.za
by Andile April | Jul 4, 2022 | Articles
Software development is one of the jobs in-demand. According to the jobs portal, OfferZen, developer salaries have, on average, increased by 7.4% since 2019.
In 2022, software developers earn the most in Cape Town, followed by those in Johannesburg and Pretoria.
“Over the past two years, software has proven to be a formidable force. Even when entire industries had to fold, the African software engineering industry experienced unprecedented growth in 2021,” says OfferZen.
Jessica Hawkey, Managing Director of redAcademy, says in a digital world where purpose is more important than ever before, a young person needs certain skills to master a career in this field.
According to Hawkey, these are the skills you need for a career in software development:
Job-specific skills
“As you start learning to become a developer, you will learn different coding languages, you’ll learn about data and databases, testing procedures and policies, debugging, support, and much more,” says Hawkey.
OfferZen’s list of the best paying programming languages in South Africa include Go, Kotlin, and Ruby.
Relevant skills
Hawkey says one of the biggest disconnects between education and the workplace is a lag between what skills are taught and what skills are needed.
“Graduates who have chosen software development emerge from universities and find that coding languages and best practises have evolved.
“This partly contributes to the gap between jobs needing to be filled, and people able to fill them – a lack of experience and no time to teach new skills.”
In the rapidly evolving workplace and world, there is no place for being stagnant.
Hawkey says a successful software developer in the fourth industrial revolution is hungry to learn and push boundaries.
“Start today by cultivating a positive mindset and a hunger to learn from those with more experience. Never stop learning and become comfortable being uncomfortable, as that’s how we grow as people and professionals,” she adds.
OfferZen says 92% of developers in South Africa now have the option to work from home, with fewer number of these professionals looking to move abroad this year than in 2021.
Editor@tech-talk.co.za
by Andile April | Jul 4, 2022 | Articles
It provides a platform for viewers to connect with the organisations involved to make a difference in the stories they watch.
WaterBear hosts content “dedicated to the future of our planet”. This includes dives into specific natural wonders, looks at the policy and actions that have led to current climate issues, stories of human determination, and insights into global food production.
Their content ranges from short, ten-minute bites to feature-length length films. Some of its stories will be familiar and relatively tired for those who have watched enough mini-docs about surfers saving the ocean.
But the array of different production companies and scales of storytelling make many opportunities to find something new.
WaterBear really shines as a platform to host content from small publishers or ambitious individuals. While the user-generated revolution spearheaded by YouTube and its like has done wonders for democratising the reach of filmmakers, it can be difficult to rummage through the endless internet to find gems.
There are plenty of breath-taking shots of wildlife and nature, as is to be expected from these genres. But more refreshing is small-scale and lower-budget pieces centred on people’s lives, many of which have polished, intimate cinematography.
The lenses take their time to zoom in on stories of teens losing their homes to rising tides, child musicians emerging from slums and determined high school robotics teams.
But as any savvy person should be wondering, how then is the service made free to use? WaterBear is funded by the companies and NGOs behind some of their content, giving them a platform to tell their story and connect them with people around the world for volunteering, donations, and eco-tourism.
There are fantastic films on the platform, all dedicated to the worthwhile goal of a sustainable human-nature ecosystem, many of which come from small filmmakers. However, one must always be aware of the financial incentives behind these kinds of endeavours.
Be mindful of the narratives being spun for you by beautiful slow-motion animals and uplifting campaigns when it’s unclear how much is good-faith activism and how much is NGO advertising or corporate green-washing.
Editor@tech-talk.co.za
