- 3 Big Scoops
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- đź—ž Tech Stocks Continue to Fall
đź—ž Tech Stocks Continue to Fall
PLUS: Wall Street braces for auto tariffs
Aditya Raghunath
March 27, 2025
In partnership with
Bulls, Bitcoin, & Beyond
Market Moves Yesterday
S&P 500 @ 5,712.20 ( ⬇️ 1.12%)
Nasdaq Composite @ 17,899.02 ( ⬇️ 2.04%)
Bitcoin @ $87,354.62 ( ⬆️ 1.23%)
Hey Scoopers,
Happy Thursday! Here’s what we’re covering today:
👉 Tesla’s downslide continues
👉 OpenAI expects to triple sales in 2025
👉 Alibaba’s new AI model
So, let’s go 🚀
Market Wrap
Stocks hit the skids Wednesday, with Big Tech leading the sell-off as tariff jitters rattled investor nerves.
The tech-heavy Nasdaq took the biggest hit, tumbling 2.04% as Silicon Valley giants stumbled.
Market darling Nvidia plunged nearly 6%, while Meta, Amazon, and Alphabet dropped more than 2%. Tesla fell over 5% in the tech sector wipeout.
Investors hit the panic button after the White House announced President Trump would unveil a new auto import tariff, sending automakers like GM and Stellantis into a 3% tailspin.
"Whenever the President tosses out a trade tidbit, the markets either rejoice or retreat," noted CFRA's Sam Stovall, pointing to defensive sectors like utilities gaining ground amid the uncertainty.
Despite the day's drama, some Wall Street strategists remain bullish. Deutsche Bank forecasts the S&P 500 could still reach 7,000 by year-end, suggesting this tariff-induced turbulence might just be a speed bump on the road to new highs.
Today’s Fastest Growing Company Might Surprise You
🚨 No, it's not the publicly traded tech giant you might expect… Meet $MODE, the disruptor turning phones into potential income generators.
Mode saw 32,481% revenue growth, ranking them the #1 software company on Deloitte’s 2023 fastest-growing companies list.
📲 They’re pioneering "Privatized Universal Basic Income" powered by technology — not government, and their EarnPhone, has already helped consumers earn over $325M!
Their pre-IPO offering is live at just $0.26/share – don’t miss it.
*Mode Mobile recently received their ticker reservation with Nasdaq ($MODE), indicating an intent to IPO in the next 24 months. An intent to IPO is no guarantee that an actual IPO will occur.
*The Deloitte rankings are based on submitted applications and public company database research, with winners selected based on their fiscal-year revenue growth percentage over a three-year period.
*Please read the offering circular and related risks at invest.modemobile.com.
Trending Stocks 🔥
GameStop - The meme stock rallied over 11.5% after the company announced plans to buy Bitcoin with a portion of its corporate cash, following a similar move by MicroStrategy.
Dollar Tree - The discount retail chain popped over 3% after it disclosed plans to offload its Family Dollar business to a group of private equity investors for $1 billion.
Playtika - The mobile gaming stock gained over 20% after Bank of America upgraded it from “underperform” to “buy”. The bank said the company has high profitability in a “mature” industry that is “still growing.”
Tesla vs. BYD: The EV Showdown Heats Up
Tesla shares plunged nearly 6% on Wednesday, following concerning European sales data and President Trump's looming tariff announcements.
The European Automobile Manufacturers' Association reported that Tesla registrations dropped 40% year-over-year in February, while overall electric vehicle sales rose 26%.
This development comes amidst what has already been a challenging year for the EV maker, with Tesla's stock down 36% since Trump's inauguration.
RBC analysts cautioned that February's European numbers might not reflect true demand, suggesting buyers could be waiting for the refreshed Model Y or a more affordable model expected later this year.
Meanwhile, William Blair analysts highlighted several headwinds facing Tesla:
Brand damage from Musk's political activities
Supply disruptions from Model Y production changes
Intensifying Chinese competition, particularly from BYD
Chinese rival BYD recently reported an annual revenue of $107 billion, surpassing Tesla's $97.7 billion.
BYD's success has been bolstered by strong hybrid vehicle sales and technological innovations, including a new battery platform claimed to provide a range of 249 miles with just five minutes of charging.
OpenAI Revenue Expected to Triple
OpenAI expects its revenue to triple to $12.7 billion in 2025. The AI powerhouse is making significant organizational changes as it scales rapidly.
CEO Sam Altman will step back from day-to-day operations to concentrate on research and product development, while COO Brad Lightcap's role will expand to overseeing business operations.
These shifts come as OpenAI faces mounting competition in the generative AI space from:
Rival startups like Anthropic and Perplexity
Tech giants, including Google and Microsoft
Microsoft, OpenAI's largest investor, reported $13 billion in annual recurring revenue in Q4, up 175% year-over-year, highlighting the growing demand for AI products.
SoftBank was reportedly preparing to invest $40 billion in OpenAI at a $260 billion valuation as of last month.
Part of this funding is expected to support OpenAI's commitment to Stargate, the joint venture with SoftBank and Oracle announced by President Trump.
Alibaba Cloud Launches New AI Model
On Thursday, Alibaba Cloud unveiled its latest AI model, "Qwen2.5-Omni-7B," intensifying the large language model competition in China following what analysts call the "DeepSeek moment."
The new multimodal model can process text, images, audio, and video while generating real-time text and natural speech responses.
According to Alibaba, the model is optimized for mobile deployment, offering high efficiency without performance compromises.
"This unique combination makes it the perfect foundation for developing agile, cost-effective AI agents that deliver tangible value, especially intelligent voice applications," Alibaba said in its announcement.
Key developments in China's accelerating AI race include:
Alibaba open-sourcing the model on Hugging Face and Github
Baidu recently releasing its first reasoning-focused model
Alibaba planning a $53 billion investment in cloud computing and AI infrastructure over the next three years
These investments are already yielding strategic partnerships for Alibaba, including:
A confirmed collaboration with Apple to integrate AI features into iPhones sold in China
An expanded strategic partnership with BMW to integrate its AI into next-generation intelligent vehicles
According to Morningstar analyst Kai Wang, large Chinese tech companies like Alibaba that build both data centers and language models are well-positioned to benefit from China's post-DeepSeek AI boom.
Headlines You Can't Miss!
Trump may reduce China tariffs to close the TikTok deal
Asian auto stocks tumble as tariff war escalates
U.S. blacklists over 50 Chinese companies to curb AI capabilities
China’s consumer spending is picking up
X reports first annual ad revenue growth after Elon Musk’s takeover
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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.