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Market Moves Yesterday
S&P 500 @ 6,025.99 ( ⬇️ 0.95%)
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Hey Scoopers,
Happy Monday! Are you ready for an exciting newsletter today?
👉 The AI extravaganza
👉 SoftBank invests in OpenAI
👉 Amazon disappoints in Q4
So, let’s go 🚀
Market Wrap
Hey, Scoopers!
It looks like Wall Street had a case of the Fridays - and not the fun kind! 📉
The market crashed faster than a dropped ice cream cone, with the Dow saying goodbye to 444 points (ouch!), while the S&P 500 and Nasdaq also joined the slip-n-slide party.
What spooked the traders, you ask? Well, it was a perfect storm of "uh-oh" moments!
First, President Trump dropped the T-bomb (that's "tariffs" for those playing at home), hinting at some tit-for-tat trade action coming next week.
Because nothing says "happy trading" like a global game of "anything you can tax, I can tax better!" 🎵
But wait, there's more! Consumer sentiment decided to play limbo, coming in at 67.8 when everyone was hoping for 71.3.
And inflation expectations? They're partying like it's 2023, jumping to 4.3%! The jobs report tried to be the life of the party, with unemployment dipping to 4%.
However, those higher-than-expected wages had everyone worried about—you guessed it—more inflation!
The cherry on top? The 10-year Treasury yield did its best rocket impression, shooting above 4.5%.
Talk about a week that felt longer than a Monday morning meeting! 🎢
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Trending Stocks 🔥
Expedia - Shares of the online travel company soared 17% after it posted adjusted earnings per share of $2.39 with revenue of $3.18 billion vs. estimates of $2.04 and $3.07 billion, respectively.
Doximity - The health-tech stock rallied over 35% after it forecast fiscal Q4 sales at $133 million, above estimates of $123.8 million.
Frontier Airlines - The stock gained 15% after its upbeat outlook and swing to a profit for the last three months of 2024.
Big Tech Bets Big on AI
Hold onto your wallets, folks, because Big Tech is going on an AI shopping spree that would make a lottery winner blush!
In 2025, the tech giants will spend a mind-boggling $320 billion—that's like buying 320 million iPhone 15 Pros, or roughly one for every person in the USA!
Here's who's bringing what to this expensive party:
Amazon's the big spender, throwing $100B into the pot (up from a mere $83B - pocket change, right?)
Microsoft's not far behind with $80B for their AI data center piggy bank
Google parent Alphabet is planning to drop $75B
Meta's joining the fun with a cool $60-65B
But there is a plot twist! DeepSeek, a Chinese company building impressive AI tools for pennies on the dollar, makes everyone wonder if these tech giants are overspending.
Meanwhile, Apple is playing it coy, renting cloud space instead of building its own AI castles, while Tesla is keeping its AI budget steady at $5B (apparently, teaching robots to dance isn't getting more expensive).
The funny part is that these companies still have supply issues despite all this spending.
However, Amazon's Jassy is optimistic, predicting that things will improve by late 2025.
Let's hope he's right, or that's a lot of money for expensive paperweights! Talk about making it rain in Silicon Valley! ☔️
SoftBank to Invest $40B in OpenAI
Well, it looks like OpenAI is about to join the "Three Comma Club" in style! 🎉
SoftBank is getting ready to make it rain with a whopping $40 billion investment, valuing OpenAI at $300 billion!
The plot thickens. SoftBank is saying, "Hold my beer," to Microsoft, swooping in to become OpenAI's sugar daddy.
And speaking of plot twists, they're not just throwing money at AI—they're teaming up with Oracle for something called Stargate (no, not the sci-fi show, sadly ).
In true tech drama fashion, there's a new kid on the block: DeepSeek from China, building AI models faster than you can say "disruption."
But here's the kicker - while everyone's freaking out about DeepSeek's budget-friendly approach, Sam Altman's over there tweeting like a zen master: "Cool models, bro, but wait till you see what we've got cooking!" (I may have paraphrased a bit 😉).
The real question is: with a $300 billion valuation, will ChatGPT finally stop telling us it's a humble AI assistant? Because that's some serious swagger money right there! 💰
Amazon Disappoints Wall Street in Q4
Grab your popcorn because Amazon dropped its Q4 numbers, and it's quite the show! 🎭
Picture this: Amazon crushed earnings expectations ($1.86 vs. $1.49 per share—not too shabby!).
However, their future guidance had Wall Street saying, "Uh-oh!" as shares pulled back by 4%
Amazon's cloud business, AWS, is still its golden goose, bringing in a whopping $28.8 billion!
But here's the tea: While AWS is the big kahuna in cloud computing, it's growing at 19%, while Microsoft Azure and Google Cloud are sprinting ahead at 30% + growth.
Speaking of spending money, Amazon's going ALL IN on AI like it's Black Friday! The e-commerce giant is dropping serious cash on fancy Nvidia chips and data centers, planning to spend $100 billion in 2025.
And get this - its advertising business is quietly becoming a powerhouse, raking $17.3 billion in Q4.
Amazon is now the third-biggest digital ad player in the U.S., right behind Google and Meta. Not bad for a company that started selling books out of a garage, right?
The bottom line? Amazon's still making it rain ($20 billion in profit!), but Wall Street's getting antsy about all that AI spending. Stay tuned for the next episode! 📺
Headlines You Can't Miss!
China’s consumer inflation surges over 5%
Federal judge blocks DOGE from accessing sensitive payment info
Bill Ackman builds $2 billion stake in Uber
Investors wary about tariff war
Coinbase ends Q4 with $420B in assets under management
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DISCLAIMER: None of this is financial advice. The newsletter is strictly educational and is not investment advice or a solicitation to buy or sell assets or make financial decisions. Please be careful and do your own research.