- 3 Big Scoops
- Posts
- 🗞 Microsoft Looks Beyond OpenAI
🗞 Microsoft Looks Beyond OpenAI
PLUS: Costco fails to impress
Bulls, Bitcoin, & Beyond

Market Moves Yesterday
S&P 500 @ 5,770.20 ( ⬆️ 0.55%)
Nasdaq Composite @ 18,196.22 ( ⬆️ 0.70%)
Bitcoin @ $86,151.92 ( ⬇️ 2.02%)
Hey Scoopers,
Happy Monday! Here’s what we’re covering today:
👉 Microsoft explores AI alternatives
👉 Costco faces macro headwinds
👉 AppLovin vs. short sellers
So, let’s go 🚀
Market Wrap
The S&P 500 recovered some ground Friday, rising 0.55% to 5,770.20, but still recorded its worst weekly performance since September as investors grappled with President Donald Trump's new tariff policies.

Despite Friday's gains, the major indexes closed the week significantly lower. The S&P 500 fell 3.1%, the Dow dropped 2.4%, and the tech-heavy Nasdaq tumbled 3.5%. The latter briefly entered correction territory after falling more than 10% from its recent high.
Markets experienced volatility throughout Friday's session, with the Dow dropping over 400 points before making a comeback in the afternoon.
Investors largely disregarded February's weaker-than-expected jobs report, which indicated that nonfarm payrolls increased by only 151,000 jobs compared to the 170,000 forecast, while unemployment rose slightly to 4.1%.
Treasury Secretary Scott Bessent told CNBC that while the economy may be starting to "roll a bit," any implemented tariffs would represent a "one-time price adjustment" rather than triggering sustained inflation.
Trending Stocks 🔥
Super Micro Computer - The server maker is moving higher in pre-market after submitting its audited financials for fiscal 2024 and statements for the last two quarters.
Jack in the Box - The fast-food chain is up 10% in pre-market after reporting adjusted earnings of $1.92 per share, above estimates of $1.69 per share.
Workday - Shares of the human resource software company are up 7% after it reported revenue of $2.21 billion and adjusted earnings per share of $1.92, compared with estimates of $2.18 billion and $1.78 per share, respectively.
Microsoft Is Not Impressed With OpenAI
Microsoft is reportedly developing in-house reasoning models and testing AI solutions from competitors, including xAI, Meta, and DeepSeek, as potential replacements for OpenAI in its Copilot product.

This strategic shift comes despite Microsoft's multibillion-dollar investment in OpenAI.
Recent tensions have emerged, with Microsoft AI chief Mustafa Suleyman reportedly frustrated over OpenAI's reluctance to share documentation about its o1 reasoning model.
Microsoft's new proprietary model, MAI, could be offered to external developers, directly competing with OpenAI's services.
This development follows OpenAI's recent $500 billion infrastructure partnership with Oracle and SoftBank, signaling its move away from exclusive reliance on Microsoft's Azure.
The situation represents a significant pivot in Microsoft's AI strategy, as CEO Satya Nadella previously questioned the need for Microsoft to develop its foundational models when it could leverage OpenAI's technology.
Costco Misses Earnings Estimates
Costco reported mixed second-quarter results Thursday. It missed earnings estimates but exceeded revenue expectations as comparable sales rose 6.8% year over year.

The wholesale giant posted earnings of $4.02 per share versus the expected $4.11, while revenue climbed 9% to $63.72 billion, surpassing the $63.13 billion forecast.
CEO Ron Vachris addressed potential tariff impacts, noting that while a third of U.S. sales come from imports, less than half originate from China, Mexico, and Canada.
"In uncertain times, our members have historically placed even greater importance on value," Vachris said, pledging to leverage Costco's global buying power to minimize price increases.
Membership fees rose to $1.19 billion, with a 90.5% worldwide renewal rate. E-commerce sales surged 20.9%, while in-store traffic increased 5.7%.
Despite economic pressures, the top-performing categories included gold, jewelry, furniture, and hardware, all of which grew by double digits compared to last year.
Fuzzy Panda Escalates AppLovin Campaign
Short-seller Fuzzy Panda Research has intensified its attack on AppLovin, urging the S&P Index Committee to exclude the ad-tech company from the benchmark index in a letter dated March 4.
The letter follows Fuzzy Panda's earlier report claiming AppLovin's AXON software is "the nexus of a house of cards" and alleging violations of Google and Apple's app store policies.

Despite AppLovin's 700% stock surge in 2024, pushing its market cap past $110 billion, the short-seller argues the company doesn't meet the S&P 500's "gold standard."
AppLovin CEO Adam Foroughi defended his company, stating the short reports were "littered with inaccuracies" and timed after earnings to prevent the company from responding with financial performance.
Several Wall Street analysts backed AppLovin, with BTIG noting the highlighted issues have "almost no merit."
AppLovin shares have dropped nearly 50% since reaching $500 following strong February earnings. The next S&P 500 rebalancing is expected later this month.
Fuzzy Panda has previously targeted about 20 companies, including Fisker, Lucid, and Globe Life, whose shares plummeted 50% after fraud allegations.
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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.