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AI, Amazon, Walmart, Warner Bros. Discovery: Stocks to watch

The Yahoo Finance Live team discusses the risks of AI and misinformation, Amazon One launching an age verification method for alcohol sales using one's hand, Walmart+ members access to pet telehealth, and Warner Bros. Discovery CEO David Zaslav being booed at Boston University's graduation ceremony.

Video transcript

AKIKO FUJITA: Let's take a look at some of the trending stories of the day. Up first, a fake image of an explosion near the Pentagon set off a brief panic today, momentarily causing the markets to dip during the morning session. The image in question was first posted on Twitter showing black smoke billowing near the Pentagon with the text reports of an explosion.

That image was promptly shared by a handful of accounts, including Russia's state-controlled media RT and an account claiming to belong to Bloomberg. That prompted the Arlington Fire Department to put out this tweet saying that there is no explosion or incident taking place at or near the Pentagon. And there is no immediate danger or hazards to the public.

Guys, you know, we, kind of, followed this in real time. And it really does point to two key things that we talk a lot about on the show. Number one, what this paid to verify environment looks like on Twitter today because the account that shared this did have a blue check mark. Because remember, today, it's not about verification. It's about paying to get verified.

The other bit though is, I would argue, a little more concerning, which is all indications are that this was an AI-generated image. This was not checked when it was shared on Twitter. And that raises a lot of questions about how quickly misinformation can move. And to be clear, we're not sharing the image because we don't want to add to that. But it certainly demonstrated that the fears that people have about how AI could be misused.

SEANA SMITH: It does. And it also strengthens the arguments that we've heard from Elon Musk, from Steve Wozniak, and the like saying that maybe we should pause the development of AI given the fact that there are so many concerns about misinformation and how quickly that can spread online. But, Akiko, you bring up a great point.

And it's also what I wanted to make. When it comes to the future of Twitter and whether or not people are going to rely on Twitter as much as they had been previously, given the fact that there's lots of questions out there about the actual source of the account, whether or not a blue check-- and, obviously, it doesn't. But it's not well known at least just yet that people can't necessarily trust someone with a blue check mark account because you can, obviously, just pay to get that blue check mark.

So I think this is also going to, kind of, recalibrate a little bit of how people go and get their news, how much they're trusting Twitter. And also just brings up a lot of questions about the future of AI, what that exactly looks like, and why maybe this strengthens the argument for regulation. And the quicker-- the fastest that we could get regulation, why that's so necessary, given all the risks that are on the table right now.

ALEXANDRA CANAL: And on that point about Twitter, what if the Arlington Fire Department, what if that was a fake account that was created and said--

SEANA SMITH: Yeah.

ALEXANDRA CANAL: --this is real. And that could even have more dire consequences. We saw the S&P 500 dip on the heels of this news. So this has serious, serious consequences if left unchecked. I think verification for both accounts and also these deepfakes, any manipulated photos or videos, that needs to be paramount.

I don't know if there's more technology-- obviously, there is-- that needs to be developed and be embedded in the Twitter platform. But like Seana has said, and, Akiko, like you said, I do think this raises serious questions about the future of Twitter and even for our business in media in journalism. We need to make sure that these things are verified before we say anything and potentially spread this misinformation.

ALLIE GARFINKLE: I have to say, guys, for me, this felt kind of like a visceral gut punch. I actually had a-- an emotional experience seeing the story. And partially, that's simply because in the end, AI is really difficult to discern. It makes it difficult to discern what is true and what is not.

And one of the most concerning things to me actually was not the Twitter stuff. It was the fact that it was also circulating on Google. And it-- it's just a sharp reminder of the fact that our definition for misinformation, we imagine text, but we have to define that as to images. You can't always trust what you see, which is really scary.

AKIKO FUJITA: And, Allie, you know, worth noting that those who are very in the weeds on forensic. You know, forensics of these digital images do point out that there's ways to decipher whether, in fact, something is an AI-generated image or not, specifically Bellingcat. Of course, we know them as this investigative outlet.

They say-- one of the reporters that you could tell by the way the fence melt into the crowd barriers-- that's the number one-- that shows you that's not a real image. But also, look to see what other images are being shared. In this case, it was the exact same image that was shared. And that's usually a red flag, that it's not a real event that's happening. Or the image is not real.

ALLIE GARFINKLE: And we will, I think, get better at time by-- in terms of distinguishing what's real, what's not. But the tech will also-- the tech will also get better. On the subject of tech getting better, my play here is Amazon. Amaz always-- Amazon's always got something new. And today, it's paying for alcohol by swiping your hand.

This announcement is an expansion of the company's Amazon One service, which is a palm reading frictionless payment option that they've rolled out in several retail locations like, for instance, Amazon Fresh stores. I've got to say, though, even though Amazone One was launched in 2020, this seems to be a statement of confidence to me about the technology itself.

Alcohol, of course, is highly regulated. And there's far less margin for error with alcohol than, say, a box of Special K. However, we could see some pushback here for digital privacy advocates. Amazon One has absolutely been a target.

ALEXANDRA CANAL: Look, I love anything that makes it easy for me. Personally, when I go to the subway and I can whip out my phone and just tap and get right on the train, that's a win in my book. I am a little concerned with all of the intense advancements when we think about biometric tracking. Now, Amazon does argue that the palm is more private than perhaps your eyes or a fingerprint.

But that gets me a little worried in terms of privacy. But ultimately, if my privacy can be contained and I just have to go like this to get a bottle of wine or Ketel One, I mean, I do think it makes it much more efficient. And I think we're going to see more of this technology moving forward, in my opinion.

SEANA SMITH: Yeah, I think Amazon's, obviously, making the case that you should trust their handling of your data, why you should not be concerned about what, in fact, could potentially get out there. But I am. As a consumer, it does make me think twice.

I am going to be one of those ones, if I were to ever travel, to [INAUDIBLE] where this is going to be available first. If I'm given the option, you have to sign up for it. There's a number of things that you have to submit and several pieces of information in order to qualify for this.

But I am going to think twice. I'm going to let some other people experiment with it first and make sure that their data is not leaked, nothing bad happens to them. And then I will jump on board. I'm not doubting that this is the future. I think, obviously, Amazon is the leader when it comes to this space.

But it is a little worrisome in terms of your own data getting out there but also, just how much data, Akiko, Amazon has on you there. Already, I feel like have so many aspects of my life covered. This is just one more data point that they will not have, which is a little unnerving.

AKIKO FUJITA: To which I respond, Seana, by saying how much data do you have on this, right?

SEANA SMITH: So much. I--

AKIKO FUJITA: I mean--

SEANA SMITH: --exactly, make a big one.

AKIKO FUJITA: --they have my face. They have my thumbprint. They have everything. And I'm with you, Allie. Whatever makes it easier, I have a tendency to move in that direction. There is initial hesitation. But I will say from Amazon's perspective, what does it mean?

Well, it means that they can target their products. Their ads can be targeted even more because they've got more data on you. From a business standpoint, it's what they're looking for.

SEANA SMITH: Yeah, it gives them a huge advantage that-- potentially. That's for sure. All right, well, my play today is the Walmart. The retail giant going after pet owners with a new perk. So get this, Walmart+ members will now have access to pet telehealth. This is through a partnership with provider Pop.

Now, it's the company's latest move to better compete with Amazon, which has a very similar offering, and also deepen its customer loyalty. And it could potentially pay off here. We've talked about this a lot in the past, the pet industry long being viewed as recession resistant. And we know Americans have been spending big bucks when it comes to their pets. It's a very fast-growing sector-- right now, right around $123 billion.

Well, that market is expected to grow all the way to $200 billion by 2030. My question, though, I get telehealth when it comes to humans. For pets, I think it's going to be very complicated for veterinarian to try and figure out what is wrong with your pet without bringing them into the office and being able to do some tests.

ALEXANDRA CANAL: Seana, I got very personal here. I wanted to know if my-- my little brother, he has a dog, Theo. I'm going to show a video. This video was not created by my brother but my father. So this is the grand--

ALLIE GARFINKLE: Oh.

ALEXANDRA CANAL: --doggie. And I just wanted to show this to show how intense pet owners are. This is little Theo. I said to my family-- I said, would you sign up for Walmart+ if they had the free telehealth visits incorporated? My mom immediately goes, wow, that's great. I'm going to sign up for Walmart+ right now.

My brother, who is 27, younger, he questioned it. He said, I don't know if that alone would make me sign up for this service. He was more enticed by the free streaming services, the discounts on gas, the delivery. Because he said, if I had a real issue with my dog, I would go in person to the vet. Or I would email them pictures. He didn't quite see the value of telehealth.

But I think, again, to my mom's point, that older generation, they hear that. And people love their dogs so much. Your initial reaction is to say, heck, yes, I'm signing up for this.

AKIKO FUJITA: I just want to know how effective it is. Seana, my-- the question you--

SEANA SMITH: Yeah.

AKIKO FUJITA: --asked is the number one question I had. How do you know on telehealth how your dog is doing? That's what I want to know. How does that service work?

SEANA SMITH: I have no idea. But I'm also-- I don't own a pet. But just as a bystander here, if someone's pet was hurt, I would want them to take it into the veterinary just so they could get a better scope, a better idea of what the heck was going on rather than just relying on video when the dog can't talk. Cat can't talk, obviously.

ALLIE GARFINKLE: Well, the other thing about this too is-- I actually took the same tack as Allie. And I asked my mom. I said, OK, mom, would you use this? And she was sitting at canasta with a group of dog moms in Miami. And lo and behold, they all said, absolutely, I would love that. So, Allie-- I mean, older generation--

ALEXANDRA CANAL: Your mom.

ALLIE GARFINKLE: --seems to be on it.

ALEXANDRA CANAL: They seem to be on it. And, you know, when we're talking about pets, David Zaslav, CEO of Warner Brothers Discovery, he's not a teacher's pet, at least not at BU. Here's why. Take a look at this.

- I have the honor to present David Zaslav for Boston University's honorary degree.

[BOOING]

[APPLAUSE]

- David Zaslav, you are a lawyer, executive, and media visionary. But above all, you are a storyteller.

ALEXANDRA CANAL: Oh, guys, it's so cringey. That is David Zaslav being booed by crowds while speaking at Boston University. And, guys, that's largely how to deal with the ongoing writer's strike. Warner Brothers Discovery along with some of the other major studios like Netflix and Disney currently in those talks.

And BU was criticized by their students by announcing that Zaslav would be the guest speaker one day after the strike began. There were people on the picket lines. They had signs. There was chants saying, get off the stage. I mean, this was really intense. And really, it gave me the-- it concerned BU.

SEANA SMITH: Yes.

ALEXANDRA CANAL: It scared me a little.

SEANA SMITH: It was very intense. You mentioned those picketers outside of the commencement ceremony. It was estimated over 300. About 350 people reportedly had been marching earlier that day. You've got to give it to David Zaslav, I think, in this scenario.

I could barely watch it. I was so awkward just watching this after this happened. He didn't look too shaken. He looked confident. He continued on with the message, with the speech. He might have altered it just a bit given the fact that his audience was being so aggressive with their boos.

I thought he, though, did a very good job at handling this.

AKIKO FUJITA: And it wasn't just boos, guys. It was a chance of pay your writers.

SEANA SMITH: Yeah. Yeah.

ALEXANDRA CANAL: So this was a very personal one. But you know what? I mean, to that point, Seana, I think the executives are used to this. But this points to just how intense this discussion has gone because BU is far, far away from Hollywood. But it is about executives, you know, organization, and paying-- or at least meeting their employees where people think they should be met in terms of pays and benefits.

ALLIE GARFINKLE: This is the thing for me here. I had one headline thought. And it was, this is an exercise in public humiliation. Was this really necessary? Who let him do this?

And I live in LA. I've, sort of, seen how the writers strike has started to affect a lot of people in Los Angeles. And it's the sort of thing where I keep going. Yes, this is super cringey. Yes, has there ever been a good commencement speaker ever? But also, did this have to happen at all?

SEANA SMITH: You know, certainly just speaks, like Akiko said, to this issue. And so many people, obviously, very passionate about what happens here.