Weekly check of the market

Magnificent 7, Nasdaq and S&P500

This week, financial markets were shaped by macroeconomic events, notably the December jobs report, which surpassed expectations. Employers added 256,000 jobs, well above analysts’ forecast of 160,000, while the unemployment rate dropped to 4.1% from 4.2% in November, according to the Labor Department. The strong labor market data suggests fears of a weakening job market were premature, easing the urgency for the Federal Reserve to implement rate cuts. Amid this backdrop, the Nasdaq declined 2.34%, and the S&P 500 fell 1.94%, reflecting the broader market’s cautious sentiment.

Meanwhile, the U.S. Treasury yield curve steepened notably, with 10-year yields climbing 17 basis points to 4.77% and 30-year yields rising 14 basis points to 4.96%, briefly crossing the 5% threshold for the first time in over a year. This selloff in long-term bonds was driven by stronger-than-expected economic data and fiscal uncertainty linked to the incoming Trump administration. Proposals such as border taxes and large-scale deportations could exacerbate inflationary pressures by raising costs or wages. Bank of America highlighted the potential for an additional Fed rate hike, while traders are increasingly pricing in the possibility of 10-year yields reaching 5%, underscoring heightened caution in fixed-income markets.

Crude prices close at highest level since October after U.S. imposes Russia oil sanctions. Oil prices jumped on Friday after the U.S. Treasury Department announced sweeping sanctions against Russia’s oil industry.

Beyond the macroeconomic events dominating the markets, the tech sector saw significant developments, including NVIDIA CEO Jensen Huang's highly anticipated 90-minute keynote at CES 2025. Huang unveiled groundbreaking innovations across gaming, autonomous vehicles, robotics, and agentic AI, reinforcing NVIDIA's leadership in cutting-edge technology. However, despite an impressive 3.43% surge on Monday as CES kicked off, NVIDIA's stock faced a sharp reversal, closing the week down 5.93%. This made it the weakest performer among the Magnificent 7, reflecting heightened investor caution despite the company's continued innovation.

The standout performer of the week was Meta, which closed up 1.86% on a weekly basis, compared to Google's modest gain of 0.13%, making them the only two members of the Magnificent 7 to post positive weekly returns. Meta's outperformance was primarily driven by Friday's Supreme Court hearing on TikTok. Reports indicated that the Court appeared likely to uphold a law that could ban TikTok in the U.S. starting Jan. 19 unless its China-based parent company, ByteDance, sells the app. While sentiment around this scenario remains mixed, the potential market shift away from TikTok has created optimism around Meta's platforms.

In addition, Meta made headlines with several other notable developments. UFC President Dana White joined Meta's Board, bringing a unique perspective to the company's leadership. Meanwhile, eBay began trialing listings on Facebook Marketplace, following EU antitrust pressures on Meta's business practices. Perhaps most significantly, Meta announced it would end fact-checking and lift restrictions on speech across Facebook and Instagram, a move that could reshape content moderation strategies and further define the platform’s direction.

Tesla was the second-largest laggard of the week, posting a 3.83% decline, reflecting the broader pressure on high-valuation stocks as markets adjust to rising yields and economic uncertainty. High-multiple companies like Tesla appear particularly vulnerable to downturns under current conditions.

Meanwhile, Apple experienced a 2.68% decline on a weekly basis, despite upbeat news from Foxconn, a key supplier and assembler for both Apple and Nvidia. Foxconn reported an impressive 15% year-over-year increase in quarterly revenue, reaching $64.75 billion, highlighting strong demand across its client base. However, Apple’s stock struggled, potentially due to broader market pressures or, as some might speculate, investor reactions to Tim Cook’s recently announced pay increase. 😉

Microsoft also faced headwinds, slipping 1.04% on the week. The company announced plans to invest $3 billion over the next two years to expand its cloud and artificial intelligence infrastructure in India, underscoring its long-term commitment to AI and emerging markets. However, the announcement was not enough to offset broader market pressures weighing on the tech sector

Amazon announced ambitious plans to invest at least $11 billion in expanding its cloud and AI infrastructure in Georgia, underscoring its strategic push into artificial intelligence. Additionally, positive news emerged regarding Anthropic, an Amazon-backed OpenAI rival. After being valued at $18 billion last year, reports now suggest Anthropic is in advanced talks to raise $2 billion, potentially pushing its valuation to an impressive $60 billion. However, despite these developments highlighting Amazon's growing AI footprint, the company's stock declined 2.34% on a weekly basis, reflecting broader market pressures on tech stocks.

Bitcoin mirrored broader market conditions, experiencing a price decline from $98.000 the previous week to around $94.000 by Sunday’s close. Notably, Bitcoin briefly surpassed the $100.000 mark on Monday, but macroeconomic news and market pressures weighed heavily, driving the cryptocurrency back down. This highlights the ongoing sensitivity of Bitcoin to broader economic trends and investor sentiment.

Fear & Greed Index

The Fear & Greed Index experienced another decline, driven by Friday's stronger-than-expected jobs report. This robust employment data has reignited concerns about potential inflationary pressures, as it suggests the economy may remain resilient enough to warrant tighter monetary policy in the near future.

CBOE Volatility Index (VIX)

Similar to the Fear & Greed Index, the VIX experienced two notable spikes last week, both triggered by macroeconomic events, including a stronger-than-expected jobs report and remarks from Federal Reserve officials discussing the potential for higher inflation. On a weekly basis, the VIX rose by an impressive 21.14%, signaling increased market volatility and heightened investor caution.

Macro news of the week

Musk Says DOGE’s Goal to Cut $2 Trillion in Spending Is ‘Best-Case Outcome’

December jobs report: Big 256,000 gain fans inflation fears and Fed rate-cut doubts

Fewer rate cuts and higher loan costs - how US jobs surprise affects you

Stock-market investors are getting nervous about this bond-market move that’s only happened twice in over 40 years

Most Fed officials were worried about higher inflation, but not enough to put rate hikes on the table, minutes of December meeting show

‘Inflation levels seem to be increasing’: Businesses are worried about tariffs and rising prices.

Trump reportedly considering important alteration to tariff plans

Fed officials are worried about the inflation impacts from Trump’s policies, minutes show

Trump could declare national economic emergency to justify universal tariffs, CNN reports

Private sector companies added 122,000 jobs in December, less than expected, ADP says

US intensifies sanctions on Russian oil: Equities tumble, crude prices rally

Tech news of the week

Foxconn Posts Record Fourth-Quarter Revenue on AI Demand

CES 2025: AI Advancing at ‘Incredible Pace,’ NVIDIA CEO Says

Meta Adds UFC’s Dana White to Board

Nvidia, chip stocks pop after Foxconn reports record revenue

Tencent shares fall 8% in Hong Kong after U.S. designates it a Chinese military company

Microsoft Plans to Invest $3 Billion on AI, Cloud Infrastructure in India

AI Startup Anthropic Raising Funds Valuing It at $60 Billion

Samsung Expects Further Profit Growth Slowdown, Missing Estimates

Amazon Plans to Invest at Least $11 Billion in Cloud and AI Infrastructure in Georgia

Nvidia, Google, OpenAI Turn To 'Synthetic Data' Factories To Train AI Models

Elon Musk calls on California and Delaware to force auction of OpenAI stake

Google is building its own ‘world modeling’ AI team for games and robot training

LG Unveils a Day in a Life with "Affectionate Intelligence" partnering with Microsoft at LG World Premiere

Google, Microsoft each donating $1M to Trump’s inaugural fund

Meta Trials eBay Listings on Facebook Marketplace Following EU Antitrust Pressure

Nvidia’s Jensen Huang is ‘dead wrong’ about quantum computers, D-Wave CEO says

Disney says about 157 million global users are streaming content with ads

Apple’s inaccurate AI news alerts shows the tech has a growing misinformation problem

The best actually real stuff at CES 2025

There’s a new contender for budget smartwatch king

TSMC Sales Beat Estimates in Boost for AI’s Outlook in 2025

Meta Ends Fact-Checking on Facebook, Instagram in Free-Speech Pitch

Elon Musk’s xAI Launches Stand-Alone Grok App

Tesla launches refreshed Model Y in China to fend off domestic rivals

Blackstone to Make $300 Million Investment in AI Data Company

Apple CEO Tim Cook’s 2024 Pay Rises 18% to $74.6 Million

TikTok’s Founder Has a Formula for Everything. Can It Crack the Supreme Court?

TikTok warns of broad consequences if Supreme Court allows ban

Supreme Court seems likely to uphold a law that could ban TikTok in the U.S. on Jan. 19

Samsung claims its Ballie AI robot will actually be released this year

Microsoft is using Bing to trick people into thinking they’re on Google

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Weekly check of the market

Magnificent 7, Nasdaq and S&P500

This week marked the transition between the final days of 2024 and the start of 2025. After five consecutive sessions of negative performance, both the Nasdaq and S&P 500 posted gains on the second day of 2025, though not strong enough to offset weekly losses. The Nasdaq slipped by 0.51%, and the S&P 500 edged lower by 0.48%, with the bulk of the selling pressure centered on large-cap equities. Conversely, mid and small-cap stocks recorded slight gains. Investor optimism, however, remains high, as reflected in Bank of America’s Sell Side Indicator, which rose to 57.0% in December, nearing thresholds typically linked to market “euphoria.”

The notable underperformer this week was Tesla, which ended with a weekly decline of 4.92%. At one point, the stock was down as much as 10% for the week, but a rebound on Friday helped mitigate the loss. The decline was largely driven by Tesla's first-ever report of a drop in annual deliveries and an incident involving a Cybertruck explosion in Las Vegas.

The second notable outlier was Apple, which fell 4.79% for the week. The decline was driven by reports of a $95 million settlement with users whose conversations were inadvertently recorded by Siri and potentially overheard by human reviewers. Additionally, Apple faced headwinds from a 47% plunge in phone sales in China, as competition from Huawei intensified.

Microsoft also ended the week down 1.67%, following reports of plans to invest $80 billion in data center expansion during this fiscal year. This underscores the significant capital demands of artificial intelligence. Over half of this projected spending, which runs through June 2025, will occur in the United States.

The final member of the "Magnificent 7" to finish the week in the red was Google. The stock faced pressure, largely due to a downgrade by JMP Securities, which cited ongoing antitrust concerns. Aside from the announced partnership with Synaptics to advance AI technology in IoT, there was little additional major news impacting the stock this week.

Meta recorded its second consecutive week of gains, rising 0.8%, driven by positive news that WhatsApp secured approval to expand its P2P payments service to its full user base in India. However, heightened volatility is expected to continue as markets closely watch developments around TikTok regulations.

Amazon ended the week largely flat, posting a modest gain of 0.2%, bolstered by updates on Project Kuiper. On Sunday, Ofcom confirmed it is “still considering Amazon’s application for an Earth Station Network licence,” a key step for enabling Kuiper to operate broadband terminals in the UK.

Nvidia emerged as the standout performer this week, gaining 5.44% on a weekly basis. Market enthusiasm is building ahead of CEO Jensen Huang's keynote address at CES 2025 tomorrow, where the industry anticipates significant announcements, particularly around advancements in AI and GPU technology that could shape Nvidia's future trajectory. Additionally, Nvidia entered a partnership with Cerence AI to enhance AI-driven voice recognition systems for the automotive sector, further solidifying its position as a leader in AI innovation.

While major U.S. indexes posted weekly declines, Bitcoin once again surprised the market with a strong recovery after the New Year. Rebounding from lows of $92,000, Bitcoin ended the week above $98,000, representing a weekly gain of approximately 5-6%. This resilience highlights its continued momentum despite broader market challenges.

Fear & Greed Index

The Fear & Greed Index dipped slightly from 34 to 32 during the first week of 2025, indicating a marginal decline in sentiment. Despite this, the reading reflects a continued sense of calm and stability among investors.

CBOE Volatility Index (VIX)

The final two days of 2024 saw heightened volatility, contributing to an initial spike in the VIX. However, market calmness returned later in the week, with the VIX ending the week up by a modest 1.13%. At 16, the VIX reflects a moderate level of expected market volatility, indicating stable investor sentiment.

News of the week

Tesla’s sales fell year-over-year for the first time

United Airlines now says first flights with Starlink Wi-Fi will take off spring 2025

WeChat, TikTok First to Secure Licenses Under Malaysia’s New Social-Media Rules

SoundHound Rival Cerence AI Scores Nvidia Automotive Pact. Shares Surge

Amazon’s satellite project pushes ahead with UK broadband plans

Databricks, Snowflake Discussed Buying Same AI Search Startup

Banning TikTok Would Violate America’s Free Speech Tradition

Beijing Pushes to Use China-Made Chips in Its EVs

TikTok Promises Ban Refunds to Keep Advertisers Spending

Top TikTok North American Ad Sales Exec to Depart

Why Marvell Will Overtake Broadcom As Nvidia’s AI Challenger

ByteDance Planned to Spend $7 Billion on Nvidia Chips Next Year

Amazon Strikes Warrant Deal With Electronics Manufacturer Jabil

Microsoft to Spend $80 Billion on AI Data Centers This Year

TikTok and Justice Department File Dueling Briefs to Supreme Court

IPhone Maker Hon Hai Clinches Sales Beat on Strong AI Demand

Equity sentiment inches higher, one step closer to euphoria: BofA

Synaptics Stock Surges on Google AI Tech Partnership

What to expect at CES 2025

How Donald Trump’s Tech Picks Orbit Elon Musk

Intel’s Problems Are Even Worse Than You’ve Heard

Meta Taps Republican as New Head of Global Policy

WhatsApp Pay made available to all Indian users

India’s next digital payments boom

Meta’s Big Bet on Bots

It’s the Most Indispensable Machine in the World—and It Depends on This Woman

Climate group that called for Gaza ceasefire risks losing federal funding

A TikTok Ban Looms. Creators Say They’ll Believe It When They See It.

Tim Cook is donating $1 million to Trump’s inauguration, too

Answering your questions about AI, smart glasses, TikTok, and more

Anthropic reaches deal with music publishers over lyric dispute

Hyundai and Kia now qualify for the federal EV tax credit

The US government announced a ‘historic’ nuclear energy deal

Apple will pay $95 million to people who were spied on by Siri

Foreign phone sales plunge 47% in China, spelling trouble for Apple

Apple offers holiday discount in China as Huawei competition heats up

China to Subsidize Smartphone Purchases in Bid to Lift Spending

TikTok’s Live Video Feature ‘Groomed’ Minors, Utah AG Claims

One dead, seven injured as Cybertruck explodes outside Trump’s hotel in Las Vegas

OpenAI’s Next Departure, Amazon’s New Product—and 16 Other Things We Think Will Happen in 2025

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Weekly check of the market

Magnificent 7, Nasdaq and S&P500

In Week 52, the Nasdaq and S&P 500 posted gains of 0.76% and 0.67%, respectively, during the light-volume, holiday-shortened week, signaling the arrival of the long-anticipated "Santa Claus Rally." Even Friday's sudden selloff, coinciding with South Korea's impeachment of its acting president, appears to have had little impact on the broader market narrative.The drop was likely due to investors cashing in profits and adjusting their portfolios for the year-end, moving money from stocks to bonds. Experts note that the excitement in the market has cooled, with a more cautious outlook now in place. However, things like political instability or changes in Fed policies could still cause sudden market swings.

In contrast to the previous week, where Tesla and Meta were among the biggest laggards, both emerged as top performers this week. Tesla gained 2.52%, while Meta rose 2.49% on a weekly basis. Uncertainty surrounding a potential TikTok ban continues to generate short-term momentum for Meta’s stock. Meanwhile, Tesla is striving to break its previous delivery record. Analysts anticipate a new quarterly high for vehicle deliveries; however, it remains uncertain whether this will be sufficient to achieve year-over-year unit delivery growth.

Apple made significant strides this week, nearing the unprecedented milestone of a $4 trillion market capitalization, fueled by the broader Santa rally. The stock closed the week 0.43% higher, buoyed by key announcements, including its decision not to pursue the development of its own search engine. Instead, Apple reaffirmed its strategic partnership with Google, defending the tech giant in ongoing antitrust trials over revenue-sharing agreements that designate Google as the default search engine on Safari. This stance underscores Apple’s focus on prioritizing cost-efficiency and avoiding conflicts with its privacy-centric ecosystem.

Meanwhile, Google also ended the week on a positive note, gaining 0.71%. The company continues to face scrutiny over its dominance in online search but maintains investor confidence through its robust AI advancements and partnerships like the one with Apple.

Amazon declined for the second consecutive week, falling 0.52%, amid reports highlighting serious injuries among its UK workforce, including bone fractures and instances of unconsciousness. Unions have attributed these incidents to the intense pace at Amazon’s facilities, especially those using robotics. In response, Amazon asserts that its injury rates remain well below industry averages and underscores its ongoing investments in safety enhancements.

Like Amazon, Microsoft also saw its stock decline for the second consecutive week, this time leading losses among the "Magnificent 7" companies. It was one of only two to end the week in negative territory, down 1.39%, despite the Nasdaq and S&P 500 posting gains. Microsoft recently integrated its AI assistant, Copilot, into its Microsoft 365 consumer subscription service in Australia and Southeast Asia. However, the move has faced criticism, as it includes a mandatory price increase for all users, with no option to opt out for those who do not wish to use the AI assistant.

Euphoria around Bitcoin appears to be fading, with the cryptocurrency trading below the $100K mark throughout the week. Despite attempts to breach $100K amid the broader Santa rally in equities, Friday’s market selloff pushed Bitcoin further away from the milestone. It is now consolidating within the $93,000-$94,000 range, reflecting a 1.2% decline on a weekly basis.

Fear & Greed Index

Although the Fear & Greed Index rose from 28 to 34, market sentiment remains cautious as we close the year. Investors are adopting a cautious stance, with 2025 expected to be shaped by transformative AI advancements and significant political shifts, which could drive both sector-specific and macro trends.

CBOE Volatility Index (VIX)

The VIX dropped 13.13% in Week 52, driven by a modest Santa rally, as expected. However, Friday brought a spike in volatility, likely influenced by political tensions, such as South Korea's impeachment of its acting president, and year-end profit-taking and portfolio rebalancing by large institutional investors.

News of the week

The US proposes rules to make healthcare data more secure

AI Needs So Much Power, It’s Making Yours Worse

Amazon Wants Merchants to Sell Everywhere—Except Temu

OpenAI Has Discussed Making a Humanoid Robot

Microsoft and OpenAI Wrangle Over Terms of Their Blockbuster Partnership

Quantum Computing Is Finally Here. But What Is It?

The Stakes in Amazon’s Union Battle With Delivery Drivers

Masayoshi Son’s Quest to Become the Next Nvidia

Meta is reportedly adding displays to its Ray-Ban smart glasses

Microsoft Is Forcing Its AI Assistant on People—and Making Them Pay

Trump asks Supreme Court to pause TikTok ban

OpenAI Wows the Crowd as New Scaling Law Passes Its First Test

Nvidia, OpenAI and Their Rivals Expand AI Turf Wars

OpenAI announces plan to transform into a for-profit company

Don’t Look Now, but China’s AI Is Catching Up Fast

Tesla Record Deliveries Expected. This Is Why It Probably Doesn't Matter For TSLA.

Nvidia bets on robotics to drive future growth

OpenAI Has Edge Over Google in Winning Publishers’ Business

How Apple Developed an Nvidia Allergy

Meta Expects AI Characters to Generate and Share Social Media Content

Microsoft and OpenAI’s Secret AGI Definition

Microsoft and OpenAI Set $100 Billion Target For Achieving ‘AGI'

Chinese Data Center Operator Yovole Is Said to Consider US IPO

Lithium Suppliers Seek to Rein in Price Discounts in 2025 Talks

Google CEO says AI model Gemini will be the company’s ‘biggest focus’ in 2025

US Investors Pay Biggest Premium for TSMC Shares in Two Months

OpenAI Announces Plan to Become Delaware Public Benefit Corporation

ChatGPT access has recovered after an outage Thursday afternoon

Even Apple wasn’t able to make VR headsets mainstream in 2024

Google CEO Pichai tells employees to gear up for big 2025: ‘The stakes are high’

Google to court: we’ll change our Apple deal, but please let us keep Chrome

X raises Premium Plus subscription pricing by almost 40 percent

Nvidia GeForce RTX 5060 And 5060 Ti: Leaks, Rumours, And Our Thoughts

Eddy Cue explains why Apple won’t make a search engine

Blue Origin Conducts Key Rocket Test Ahead of Launch

Musk Gains Another Ally in Effort to Block OpenAI For-Profit Conversion

Apple seeks to defend Google's billion-dollar payments in search case

Uber Disappointed as Taiwan Rejects Deal for Delivery Hero Unit

Alibaba, E-Mart to Create $4 Billion E-Commerce JV in Korea

Nio’s Mass Market Push Draws Scorn as EV Maker Promises a Profit

2024 was a big year for Windows on Arm

MAGA vs. Musk: Immigration Fight Cracks Populist-Tech Bro Alliance

Meta’s ‘software update issue’ has been breaking Quest headsets for weeks

South Korean lawmakers impeach acting president Han Duck-soo

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Weekly check of the market

Magnificent 7, Nasdaq and S&P500

Nasdaq and S&P 500 posted their steepest weekly decline since mid-November, dropping around 2%. The selloff was driven by a surprisingly hawkish stance from Federal Reserve officials, who scaled back expectations for the number of rate cuts in 2025. The traditional "Santa Claus Rally," which typically sees a 1.3% gain during the final five trading days of the year and the first two in January, may not materialize this year. November’s strong performance may have absorbed some of the seasonal momentum, leaving little room for a year-end boost. Rising bond yields and elevated valuations add further headwinds. While some strategists view this pullback as a healthy reset for potential rebounds, others caution that deeper losses could undermine the market's bullish outlook. Meanwhile, expectations for a January Fed rate cut dropped sharply to 8.6% from 18.5% last week, with 2025 easing projections lowered by 11 basis points to 52 basis points.

Last week, we reported Tesla's momentum showed no signs of slowing. However, this week highlighted how quickly things can shift. After a 10% stock surge on Monday and Tuesday, Tesla dropped over 8% following the Fed meeting Wednesday. Friday’s recall of nearly 700,000 vehicles due to a TPMS issue led to an additional 3.46% decline.

Meta experienced the largest value decline among the Magnificent 7 companies this week, driven by uncertainty over a potential TikTok ban and a privacy and interoperability dispute with Apple. These challenges impacted investor sentiment, resulting in a 5.66% drop in Meta's stock over the week.

Google was among the few companies to end the week in the green, rising 0.84% from last week. Key announcements included plans to add an ‘AI Mode’ option to its search engine, a 10% reduction in managerial roles for efficiency, and a partnership between Google DeepMind and humanoid robotics maker Apptronik.

The big winner this week was Apple, closing Friday up 2.56% for the week. Despite a market slump on Wednesday that saw most Magnificent 7 stocks drop over 3%, Apple showed resilience, declining just 2%. Positive news about a new doorbell camera with Face ID and its strong stance in its dispute with Meta contributed to its outperformance.

Microsoft remained nearly flat this week, with a slight decrease of 0.10%, as it continued to solidify its AI leadership. The company made headlines for ordering 485,000 Nvidia AI chips in 2024, more than double the purchases of its nearest U.S. rivals, showcasing its aggressive investment in AI infrastructure.

Amazon declined by 1.12% this week, facing significant labor unrest as workers at its Staten Island JFK8 Fulfillment Center joined a nationwide strike. The protests, organized by the Teamsters Union, demanded higher wages, better benefits, and improved working conditions, adding pressure during the peak holiday season. There are also reports of

Bitcoin hit another all-time high this week, surpassing $108,000 on Tuesday. However, this peak was short-lived as it dropped nearly 10% the next day, with the price now hovering around $95,000. This marks an 8% weekly decline at the time of writing, highlighting volatility in the short term.

Fear & Greed Index

This week's Fed announcement also impacted the Fear & Greed Index, which tumbled to 28 from around 50, nearing the 'extreme fear' zone. It underscores how swiftly market sentiment can shift when valuations are elevated, and a correction has been absent for an extended period.

CBOE Volatility Index (VIX)

The VIX surged 32.95% in Week 51, driven by a massive 74.04% spike on Wednesday as U.S. stocks pulled back following the Fed's announcement on future rate cut plans.

Earnings of the week

Micron

Micron shares plunged 13% after issuing weak Q2 guidance, citing softness in consumer markets like PCs and automotive despite strong performance in its data center segment, which now drives over half of total sales. Q1 revenue rose 84% to $8.71B, in line with estimates, and adjusted EPS of $1.79 exceeded expectations. For Q2, Micron forecasts revenue of $7.7B–$8.1B and EPS of $1.33–$1.53, both missing analyst expectations of $8.94B revenue and $1.91 EPS. CEO Sanjay Mehrotra highlighted AI-driven opportunities and server growth while noting consumer market recovery is expected in the fiscal year’s second half.

Nike

Nike CEO Elliott Hill revealed a turnaround strategy after Q2 revenue fell 8% YoY to $12.35B, beating estimates of $12.13B, while EPS dropped to $0.78 from $1.03 YoY. Declines were driven by over-reliance on promotions and inventory challenges. Hill plans to shift Nike back to full-price sales, refocus on sport and performance, rebuild wholesale partnerships, and cut supply of oversaturated lifestyle models like Air Force 1s. Digital and store sales dropped 13%, wholesale revenue fell 3%, and China sales were down 8%. Data showed global inventory at $8B, higher than desired.

News of the week

Google cut manager and VP roles by 10% in its efficiency push, CEO Sundar Pichai said in an internal meeting

Google CEO Sundar Pichai revealed a 10% cut in top management roles as part of a multi-year efficiency drive. Facing AI competition from OpenAI, Google aims to streamline operations, boost generative AI features, and modernize its culture to stay competitive.

Powell Says Future Cuts Would Require Fresh Inflation Progress

The Federal Reserve reduced its benchmark interest rate by 0.25%, bringing it to 4.25%-4.5%, marking the third consecutive cut this year. Chair Jerome Powell highlighted a cautious approach moving forward, tying future cuts to further progress in reducing inflation, which remains above the 2% target. Fed projections suggest only two additional rate cuts in 2025, with the rate expected to reach 3.75%-4% by year-end. Recent data shows resilient labor markets, modestly rising economic growth, and inflation slowing less than anticipated. Uncertainty looms over potential policies from the Trump administration, which could influence inflation and labor markets. The Fed also adjusted its reverse repo facility to manage money market rates and support balance sheet reductions. Markets reacted with the S&P 500 declining and Treasury yields rising.

OpenAI Unveils More Advanced Reasoning Model in Race With Google

OpenAI unveiled its next-generation reasoning models, o3 and o3-mini, for safety testing, skipping o2 due to potential trademark conflicts. These models excel in breaking tasks into smaller steps and showcasing their reasoning process. Early benchmarks are impressive, with o3 outperforming previous models by 22.8% in coding tests, nearly acing AIME 2024, and solving 25.2% of challenging math problems—far surpassing competitors. OpenAI also introduced deliberative alignment, a step-by-step safety decision process, enhancing adherence to policies compared to earlier models like GPT-4. Public release details are pending, with research community testing underway.

TikTok's Trip to Supreme Court Could Play Out in Three Main Ways

The Supreme Court will hear TikTok’s appeal against a U.S. law potentially banning the app, with oral arguments set for Jan. 10, ahead of the Jan. 19 ban deadline. Legal experts see three possible outcomes: a quick decision likely against TikTok, a temporary injunction freezing the law to allow negotiations with the incoming Trump administration, or no injunction, allowing the ban to take effect. TikTok’s general counsel remains optimistic, but uncertainty persists for creators, businesses, and the app’s future until the court rules.

Databricks secures monumental $10bn Series J, catapulting valuation to $62bn

Databricks has secured a monumental $10 billion in Series J funding, raising $8.6 billion so far and reaching a $62 billion valuation. Led by Thrive Capital with support from Andreessen Horowitz and others, the funds will fuel AI product development, international expansion, and employee liquidity. Databricks, growing 60% year-over-year, plans to leverage its Data Intelligence Platform to democratize AI and data access, driving innovation and efficiency for businesses. CEO Ali Ghodsi emphasized Databricks’ long-term vision as it approaches positive free cash flow this quarter.

Microsoft Outpaces Rivals with 485,000 Nvidia AI Chip Orders, Solidifying AI Leadership

Microsoft solidified its AI leadership in 2024 by purchasing 485,000 Nvidia Hopper AI chips, more than double the orders of its nearest U.S. rivals, Amazon (196,000) and Google (169,000). Meta followed with 224,000 chips, while Chinese firms ByteDance and Tencent ordered 230,000 each. These acquisitions underscore Microsoft's aggressive push to expand AI infrastructure and support innovations in artificial intelligence and cloud services. The move also highlights its commitment to staying ahead in AI research, reinforced by its significant investment in OpenAI. With MSFT stock up 19% YTD, Microsoft remains a top pick in the AI sector.

Google Plans to Add ‘AI Mode’ Option to Search

Google plans to add "AI Mode" to its search engine, offering conversational answers similar to its Gemini chatbot, aiming to counter rivals like ChatGPT. The feature, accessible via a new tab, integrates AI-driven responses with website links and follow-up prompts. This move expands Gemini's reach but invites Justice Department scrutiny amid antitrust concerns, as regulators may argue it leverages Google’s search dominance. ChatGPT remains far ahead, with 14 times Gemini's visitors in November 2024. Google faces pressure to innovate while ensuring AI Mode doesn’t disrupt its search ad revenue or escalate regulatory risks.

TikTok finally scores a win: the Supreme Court will hear its case

TikTok scored a win as the Supreme Court agreed to hear arguments on January 10th regarding the constitutionality of a law that could ban the app or force its sale. The Protecting Americans from Foreign Adversary Controlled Applications Act targets apps owned by companies in adversary countries, citing national security concerns over potential Chinese influence via ByteDance. While the decision to take the case is promising for TikTok, the court deferred halting the law until after arguments. The ban deadline, one day before Trump’s inauguration, leaves uncertainty about TikTok's future. ByteDance’s ability to sell the app remains a key question.

Google DeepMind Partners with Humanoid Robotics Maker Apptronik

Google DeepMind announced a partnership with Apptronik to combine its AI with Apptronik’s humanoid robots. Apptronik’s Apollo, a 5’8”, 160-pound robot designed for warehouse and automation tasks, will leverage DeepMind’s AI to enhance planning and adaptability. Apptronik, spun out of the University of Texas in 2016, is already collaborating with GXO and Mercedes-Benz on Apollo's development. Apollo was also showcased in Google’s announcement of the Gemini 2.0 AI model.

U.S. Prompts Nvidia, Supermicro Probe Into How Chips Ended Up in China

Nvidia and the U.S. Commerce Department are investigating how advanced AI chips, restricted under export controls, are being smuggled into China. Nvidia has tasked distributors like Supermicro and Dell to conduct spot checks in Southeast Asia, where smuggling is prevalent. Some smugglers have evaded detection by forging server serial numbers and disguising shipments. This illicit trade undermines U.S. export laws designed to limit Chinese access to advanced technologies with potential military applications. Supermicro has tightened client reviews and blocked uncooperative customers, while the Commerce Department continues to pressure companies to secure supply chains and enforce compliance. The smuggling highlights challenges in curbing China's tech access amid globalization.

Nvidia Says It Could Build a Cloud Business Rivaling AWS. Is That Possible?

Nvidia is positioning itself to rival Amazon Web Services (AWS) in cloud services by renting servers powered by its AI chips and offering AI software through DGX Cloud and Nvidia AI Enterprise. The company aims to generate $150 billion in long-term revenue from cloud and software, surpassing its current chip revenue. Nvidia’s advantage lies in its expertise in GPUs, enabling more efficient AI software. Early adopters include Amdocs and ServiceNow, which use Nvidia's tools for automating tasks like call center operations and coding. However, Nvidia faces challenges, such as limited business relationships, lower brand recognition in cloud software, and slower enterprise AI adoption. While it partners with cloud providers like AWS for now, Nvidia may eventually build its own data centers, signaling an intent to directly compete in the lucrative cloud market.

Meta rolls out live AI, translations, and Shazam to its smart glasses

Meta has rolled out new features to its Ray-Ban smart glasses, including live AI, live translations, and Shazam. The live AI feature allows users to interact naturally with Meta's assistant while it analyzes surroundings, such as suggesting recipes in a grocery store. Live translation supports real-time speech translation between English and Spanish, French, or Italian, with language pairs downloaded in advance. Shazam integration, available to all U.S. and Canadian users, identifies songs upon request. While Shazam is widely available, live AI and translation are limited to Early Access Program members. These updates come as tech giants like Meta and Google position AI assistants as a key driver for smart glasses, emphasizing their potential as "AI-native devices."

How Will Anthropic Navigate a Trump Presidency?

Anthropic’s strong AI performance has drawn users from OpenAI, but the Trump administration could challenge its growth. Anthropic’s ties to the effective altruism movement, emphasizing AI risks over innovation, may clash with Trump’s deregulatory AI agenda. CEO Dario Amodei’s past criticisms of Trump could add tension. Both Anthropic and OpenAI are bolstering Republican policy connections, but Anthropic’s focus is on emerging talent for policy roles. Recent moves, like partnerships with Palantir and allowing U.S. military use of its models, show Anthropic’s efforts to align with the incoming administration. Meanwhile, Anthropic avoids Elon Musk’s scrutiny, which continues to impact OpenAI, giving it a potential edge in navigating the political landscape.

Apple hits out at Meta's numerous interoperability requests

Apple and Meta are clashing over the EU's Digital Markets Act (DMA), which mandates interoperability between platforms. Apple criticized Meta’s 15 interoperability requests, claiming they risk user privacy and security, such as enabling Meta to access sensitive device data. Meta countered, accusing Apple of using privacy as a pretext for anti-competitive behavior. The EU Commission outlined measures for Apple's compliance, including timelines and a mechanism to resolve disputes. A compliance decision is expected by March 2025.

Google Contracts Employees From Magic Leap

Google has contracted over 100 Magic Leap employees to support its Android XR operating system development, intensifying its rivalry with Meta in mixed reality. This arrangement includes engineers, designers, and developers working under Magic Leap while collaborating with Google. Magic Leap, once a major player in AR/VR, has faced strategic struggles, layoffs, and dwindling consumer interest, pivoting to enterprise markets under CEO Ross Rosenberg.

Google’s counteroffer to the government trying to break it up is unbundling Android apps

Google proposed countermeasures to address the Department of Justice's antitrust concerns over its search monopoly, aiming to avoid breaking up key divisions like Chrome, Android, or Google Play. Its proposal focuses on changes to its search distribution contracts, including blocking deals that bundle Chrome, Search, and Google Play with preinstalled apps like Google Assistant or Gemini AI for three years. It also allows for multiple default search placement deals across platforms, revisited annually. While Google plans to appeal the ruling declaring it a monopoly, it will submit a revised proposal in March 2025 before a trial in April.

Amazon v. SpaceX in Taiwan

Amazon’s Project Kuiper is in talks with Taiwan to provide satellite internet, as the nation seeks alternatives to SpaceX due to Elon Musk’s ties to China and comments on Taiwan’s sovereignty. While Amazon’s lack of direct Chinese ties compared to Musk is appealing, it also has significant business interests in China, raising questions about its suitability as a partner. Taiwan, which struggles with bandwidth from its current deal with Eutelsat Oneweb, plans to eventually develop its own satellite internet system.

Instagram to make up more than half of Meta's US ad revenue in 2025, report shows

Instagram is projected to generate over half of Meta's U.S. ad revenue in 2025, driven by its growing focus on short-form videos like Reels. Users now spend two-thirds of their time on Instagram watching videos, attracting advertisers. A potential TikTok ban could further boost Instagram, potentially capturing over 20% of reallocated ad dollars. In 2024, Instagram's revenue came primarily from Feed (53.7%) and Stories (24.6%), with Reels and Explore expected to contribute 9.6% by 2025.

Tesla's 2024 deliveries growth might hinge on Musk's unorthodox Cybertruck

Tesla's 2024 delivery growth hinges on the Cybertruck's success, but challenges loom. The truck’s polarizing design and high prices—ranging from $75K to $120K—have deterred traditional truck buyers. Registrations fell from 5,428 in August to 4,039 in October, signaling weakening demand. Tesla is offering incentives like leasing discounts and immediate availability, indicating softening interest. Used Cybertrucks now take 75 days to sell, up from 27 in May, as supply outpaces demand. Analysts expect Tesla’s 2024 deliveries to remain flat at 1.81M vehicles, mirroring 2023 levels.

Tesla in talks with city of Austin over self-driving technology, Bloomberg News reports

Tesla is in early talks with Austin authorities to establish safety standards for its autonomous vehicle technology. The company showcased its "Cybercab," a driverless, pedal-less vehicle, in October, with plans to introduce "unsupervised" driver-assistance tech in California and Texas next year. Tesla’s Full Self-Driving (FSD) system, which still requires driver oversight, has faced regulatory challenges, but Texas’ minimal restrictions may ease the rollout.

Tesla recalling almost 700,000 vehicles due to tire pressure monitoring system issue

Tesla is recalling nearly 700,000 vehicles, including the 2024 Cybertruck, 2017-2025 Model 3, and 2020-2025 Model Y, due to a tire pressure monitoring system issue. The warning light may fail to remain illuminated, risking improperly inflated tires and potential crashes. Tesla will fix the issue via a free software update, with owner notifications starting February 15, 2025. This marks the Cybertruck's seventh recall this year, adding to Tesla's ongoing recall challenges, including over 4 million vehicles recalled for various issues in 2024 alone.

OpenAI o3 Breakthrough High Score on ARC-AGI-Pub

Waymo is sending autonomous vehicles to Japan for first international tests

Microsoft is testing live translation on Intel and AMD Copilot Plus PCs

Nvidia’s Deal to Buy Israel’s Run:ai Wins Unconditional EU Nod

Apple Deals With European Regulation by Blasting Meta

Google Offers to Tweak Apple Search Contract Following Loss in Monopoly Trial

Jury Sides With Qualcomm in Dispute With Arm Holdings

Meet the Startup Making GPUs More Secure for AI

AI ‘Roadkill’ Fears Haunt Traders Two Years After ChatGPT Debut

Elon Musk Unexpectedly Joined Donald Trump-Jeff Bezos Dinner

Apple’s $1 Billion Investment May Be Fleeting Win for Indonesia

Apple is working on a doorbell camera with Face ID

What the Last Triple-Witching of 2024 Could Mean For Your Stocks

Amazon workers on Staten Island join nationwide strike against retailer amid busy holiday season

Google reveals AI ‘reasoning’ model that ‘explicitly shows its thoughts’

Waymo still doing better than humans at preventing injuries and property damage

Instagram teases AI editing tools that will completely reimagine your videos

Alphabet’s Wing will deliver DoorDash by drone in Dallas-Fort Worth

Intel finally notches a GPU win, confirms Arc B580 is selling out after stellar reviews

Mark Zuckerberg says Threads has more than 100 million daily active users

TikTok CEO meets with Trump as the platform tries to avoid a ban

Snapchat is overhauling how influencers earn money on the platform

Arm CEO Rene Haas on the AI chip race, Intel, and what Trump means for tech

As robotaxi companies stumble in the US, China’s fleet is growing

Economists Boost 2025 US Inflation Forecast on Tariff Concerns

Stock funds witnessed biggest inflows ever in a week to Wednesday: BofA

US Growth Revised to 3.1% on Stronger Consumer Spending, Exports

Mortgage Rates Climb for First Time in a Month, Landing at 6.72%

US Services Activity Expands by Most in More Than Three Years

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Weekly check of the market

Magnificent 7, Nasdaq and S&P500

The AI era seems to have taken everyone by surprise, with so much happening that it’s almost impossible to keep up with all the information circulating. We’re constantly seeing records in the markets, making it crucial to consolidate and understand these developments on a weekly basis. Without this approach, we risk being overwhelmed by processing details daily, with no opportunity to take a longer-term perspective.

Tesla shows no signs of slowing down, with Elon Musk leading the charge as the company outshines the "Magnificent 7" and claims the spotlight this week. The stock soared an impressive 12.08%, fueled by strong weekly insurance registrations in China, boosting investor confidence. Additionally, analysts raised their price targets, further driving the stock's surge.

Google surged 8.77% this week, fueled by major advancements, including the unveiling of its quantum computing chip, Willow, and upgrades to key initiatives like Project Astra and Project Mariner.

Microsoft posted a modest 0.83% gain, driven by AI developments and an intriguing interview where Satya Nadella revealed they are not supply-constrained for chips. This wasn’t great news for Nvidia, which saw its stock drop 5.75% this week.

Amazon remained mostly flat, with a slight increase of 0.19%, as the company shared new details about its collaboration with Hyundai.

Apple announced its latest iOS upgrades and plans for thinner, foldable iPhones aimed at reviving growth. The news was well-received by the market, pushing the stock up by 2.18%.

Meta faced technical issues on Wednesday, leaving users unable to access its services. Despite the disruption, the stock saw no significant movement, ending the week down 0.55%.

The S&P 500 declined by 0.64% after hitting an all-time high last Friday, suggesting a brief stabilization phase. Increased volatility may emerge next week with expectations of a Fed rate cut. The NASDAQ gained 0.34%, reflecting similar trends but outperforming the S&P 500 on Wednesday.

After pushing above its all-time high last week, Bitcoin experienced a drop on Monday and Tuesday. However, similar to broader financial markets, it rebounded on Wednesday, closing above $100K. Bitcoin is surging again by week’s end, crossing $103K as I write this.

Fear & Greed Index

We observe a continuation from the previous week with stabilization in market volatility. Record market levels contribute to this steadiness, and President Trump's visit to traders this week has reinforced confidence that efforts will be made to maintain market calm moving forward.

CBOE Volatility Index (VIX)

The VIX rose 8.14% in Week 50, driven by an 11.12% spike Monday as U.S. stocks retreated after record highs Friday. The November jobs report boosted expectations for a December Fed rate cut. After the volatility on Monday, new records were set in both the S&P 500 and Nasdaq later in the week.

Earnings of the week

C3.ai

C3.ai shares fluctuated after strong Q2 results, with 29% YoY revenue growth to $94.4M, surpassing forecasts. Key highlights include a new Microsoft partnership extending to 2030, offsetting uncertainty about its Baker Hughes deal. Despite improving margins, C3.ai remains unprofitable, with stock-based compensation diluting shares. While the Microsoft deal is promising, weak SaaS margins and valuation concerns make the stock less appealing.

Oracle

Oracle shares fell nearly 7%, their steepest drop in 2024, after Q2 earnings missed estimates. Revenue rose 9% YoY to $14.06B, below expectations, while adjusted EPS of $1.47 missed by a penny. Cloud services revenue grew 12% to $10.81B, with cloud infrastructure surging 52%, driven by AI demand. Oracle partnered with Meta for AI projects, boosting optimism. Analysts remain bullish, citing strong cloud momentum and raising price targets.

MongoDB

MongoDB reported strong Q3 results, with revenue up 22% YoY to $529.4M, surpassing estimates of $497.65M, and EPS of $1.16 beating expectations of $0.67. Growth was driven by large multi-year on-premise deals and 26% growth in Atlas revenue. The company raised fiscal 2025 guidance for EPS to $3.01-$3.03 and revenue to $1.973B-$1.977B. COO and CFO Michael Gordon will step down in January, with a search for his replacement underway. Shares fell 3% post-earnings call.

Adobe

Adobe shares dropped 14%, their steepest decline since 2022, after issuing disappointing Q1 revenue guidance of $5.63-$5.68B, below analyst expectations of $5.73B. Despite the guidance, Q4 results exceeded forecasts, with EPS of $4.81 and revenue up 11% to $5.61B. Analysts praised Adobe's AI monetization efforts, like Firefly, but some lowered ratings and targets, citing concerns about 2024 performance.

Broadcom

Broadcom shares rose 13% after reporting Q4 earnings that beat expectations, with EPS of $1.42 vs. $1.38 estimated, though revenue slightly missed at $14.05B vs. $14.09B expected. AI revenue soared 220% YoY to $12.2B, driven by demand for generative AI infrastructure and custom AI chips. CEO Hock Tan forecasted a $60B-$90B AI market by 2027. Broadcom also announced an 11% dividend increase for fiscal 2025.

Costco

Costco beat Q1 estimates with EPS of $4.04 vs. $3.79 expected and revenue of $62.15B. Net income rose to $1.8B, driven by strong sales in jewelry, luggage, and furniture, alongside a 13% jump in e-commerce. Comparable sales grew 5.2%, with fresh and meat categories performing well. Membership revenue rose 8% YoY, despite a slight renewal rate dip. Costco plans 29 new clubs this year and continues to gain market share online. Shares are up nearly 50% YTD.

News of the week

Trump rings bell at NYSE to cheers of ‘USA’ as Wall Street CEOs, business leaders look on

President-elect Donald Trump rang the NYSE bell, promising an economic boom under his administration. Flanked by key allies and business leaders, he vowed tax cuts, incentives for U.S. manufacturing, and policies to lower inflation. Trump highlighted strong market gains and collaborations with influential CEOs like Elon Musk and Mark Zuckerberg.

Annual inflation rate accelerates to 2.7% in November, as expected

November CPI rose 2.7% YoY and 0.3% MoM, with Core CPI at 3.3% YoY. Shelter costs, up 0.3%, drove 40% of the rise. Food rose 0.4% MoM; energy 0.2% MoM but down YoY. Used car prices rebounded 2%. While inflation is well off the 40-year high it saw in mid-2022, it remains above the Fed’s 2% annual target.

Google reveals quantum computing chip with ‘breakthrough’ achievements

Google unveiled its new quantum computing chip, Willow, which completed a task in under five minutes that would take a supercomputer 10 septillion years. The 105-qubit chip achieved a breakthrough in error correction, reducing errors while scaling qubits, a major hurdle in quantum computing. Google aims to use this technology for AI, medicine, energy innovation, and more, positioning quantum as a transformative tool for real-world applications.

Facebook, Instagram and other Meta apps go down due to ‘technical issue’

Meta’s family of apps, including Facebook, Instagram, WhatsApp, Threads, and Messenger, experienced a widespread outage on Wednesday, starting at 9:57 a.m. PST and peaking with over 100,000 user reports by 10:11 a.m. Meta acknowledged the issue, citing a technical problem, and worked throughout the day to restore services. Instagram and other apps were fully operational after several hours. A similar outage occurred in March 2024.

Ad giant Omnicom takes aim at Big Tech, AI era with $13 billion Interpublic deal

Omnicom Group has announced a $13.25 billion all-stock deal to acquire Interpublic Group, forming the world's largest ad agency to better compete with Big Tech. Interpublic shareholders will receive a 21.6% premium. The deal, expected to close in 2025, faces potential regulatory scrutiny.

Meta asks the government to block OpenAI’s switch to a for-profit

Meta has joined Elon Musk in urging California's attorney general to block OpenAI's transition to a for-profit model, arguing it sets a dangerous precedent for nonprofit startups benefiting from tax advantages. OpenAI defends its restructuring, emphasizing a nonprofit arm will retain its mission and ownership stake. Musk, an OpenAI co-founder turned critic, has accused the company of abandoning its original nonprofit ideals for profit. The debate underscores tensions in Silicon Valley’s AI sector.

Amazon’s online car ‘dealership’ with Hyundai is now live

Amazon has launched Amazon Auto, its online car shopping platform, in partnership with Hyundai. Customers in 48 US cities can browse, finance, and purchase Hyundai vehicles through Amazon, with delivery and trade-ins managed by dealers. While Hyundai is the exclusive launch partner, Amazon plans to expand its offerings. Buyers will also receive a $2,300 gift card for purchases made before January 10, 2025.

Google’s AI enters its ‘agentic era’

Google announced updates to its AI projects, Project Astra and Project Mariner, marking the start of its "agentic era." Astra, a virtual assistant that processes text, images, and audio, is expanding to more testers and integrating into products like Search and Maps. Mariner, a Chrome extension, automates browser tasks but is still slow. Google aims to refine these tools for practical, supervised use.

Apple Plans Thinner, Foldable iPhones to Revive Growth

Apple plans significant updates to its iPhone lineup, including a thinner model and two foldable devices: a foldable iPhone and a larger foldable screen akin to a laptop. The foldables, expected by 2026-27, face technical hurdles like hinge and display improvements. Apple is also exploring updates to its Vision Pro headset, possibly integrating iPhone processing to reduce cost and weight. With iPhone revenue growth under 1% in fiscal 2024, these innovations aim to revive demand and drive sales growth.

iOS 18.2 Review: The AI Apple Promised Us

Apple's iOS 18.2 introduces its first major AI features, exclusive to iPhone 15 Pro and 16 models. Highlights include Genmoji, a fun emoji creator; Visual Intelligence, which uses AI for camera-based queries; and Siri’s integration with ChatGPT for advanced tasks. The update is playful yet practical, but its hardware restrictions may leave most users waiting for broader accessibility.

ServiceTitan prices IPO at $71, above expected range, after slow stretch for tech offerings

ServiceTitan, a cloud software provider for contractors, priced its IPO at $71 per share, above the expected range, raising nearly $625M and valuing the company at $6.3B. Trading under “TTAN” on Nasdaq, the company saw 24% YoY revenue growth in Q3 to $198.5M but reported a net loss of $47M. Founded by sons of contractors, its software modernizes marketing, sales, and customer service for trades businesses. Key backers include Bessemer and TPG.

Amazon is bringing Intuit QuickBooks software to its millions of third-party sellers

Amazon will integrate Intuit QuickBooks into Seller Central by mid-2025, offering real-time financial insights and loans via QuickBooks Capital. This supports Amazon's seller-focused strategy, with seller services revenue rising 10% in Q3. Intuit enhances tools with AI for growth.

Tech companies most threatened by Trump are donating to his inauguration fund

Tech leaders and companies, including Meta, Amazon, and OpenAI, pledged $1M each to Trump’s inauguration fund, signaling efforts to curry favor as Trump re-enters the White House. Despite past tensions, figures like Zuckerberg, Bezos, and Altman aim to shape AI regulation, competing with Musk's growing influence under Trump’s administration.

Apple and Google instructed by House committee to prepare to dump TikTok next month

House lawmakers have warned Apple and Google to prepare for a potential TikTok ban in the U.S. if ByteDance fails to divest by Jan. 19, as mandated by a recent court ruling. The law prohibits app store operators from supporting TikTok if the divestment doesn't occur. TikTok plans to appeal to the Supreme Court, citing First Amendment concerns.

Broadcom’s long and winding path to the trillion-dollar club, and how Trump played a role

Broadcom shares soared 24%, hitting a $1T market cap for the first time, driven by strong Q4 earnings and booming AI revenue, up 150% YoY to $3.7B. The company has shifted from a semiconductor focus to a balanced portfolio, with infrastructure software now 41% of revenue, boosted by its $61B VMware acquisition. Custom AI chips for major tech firms like Meta and Alphabet position Broadcom as a key player in the AI hardware space, rivaling Nvidia's growth in the sector.

TSMC says first advanced U.S. chip plant ‘dang near back’ on schedule.

TSMC's first advanced U.S. chip fab in Arizona, originally delayed, is now "dang near back" on schedule. The $20B facility will produce 4nm chips by 2025, with plans for two more fabs by 2030, totaling a $65B investment. The site addresses supply chain risks and U.S. chip self-reliance, hiring 6,000 workers and using renewable energy credits to offset its massive power demands. TSMC aims to broaden its global footprint with additional fabs in Japan and Germany.

TikTok failed to save itself with the First Amendment

The court upheld a TikTok divest-or-ban law, citing bipartisan national security concerns about Chinese influence. Judges rejected TikTok's First and Fifth Amendment challenges, emphasizing that divestiture, not mitigation plans like Project Texas, was necessary. Critics argue the decision risks enabling government overreach, but the ruling stressed reliance on Congress and executive assessments. TikTok plans to appeal to the Supreme Court.

Waymo’s robotaxis pass the first responder test

Waymo's robotaxis passed an independent review by Tüv Süd, confirming they meet industry standards for emergency protocols, including detecting emergency vehicles and responding to hand signals. Waymo has trained 15,000 first responders and released detailed guides for handling its vehicles. Despite some incidents, the company emphasizes safety as it expands, aiming to prevent setbacks like those faced by Cruise and Uber.

Intel executives hint at potential manufacturing spinoff

Intel is navigating a critical transition following the ousting of CEO Pat Gelsinger, with interim co-CEOs hinting at a potential manufacturing spinoff. Intel has already begun separating its manufacturing operations into a standalone subsidiary but hasn’t confirmed a full split. The decision, influenced by $8 billion in CHIPS Act funding oversight, could reshape Intel into a chip design-focused company like its rivals. Upcoming challenges include its 18A process, critical to competing with TSMC and AMD.

Epic’s dream is starting to come true — its store will be preinstalled on ‘millions’ of Android phones

Epic Games is partnering with Telefónica to preinstall the Epic Games Store on millions of Android phones, including Samsung devices, across the UK, Germany, Spain, and Latin America. This marks the first time the store will be preinstalled on consumer phones, challenging Google Play's dominance. The move follows a recent court ruling limiting Google’s ability to block alternative app stores.

The end of Cruise is the beginning of a risky new phase for autonomous vehicles

GM has ended its $10 billion robotaxi experiment, citing high costs and regulatory challenges. Instead, the company will focus on privately owned autonomous vehicles, leveraging its Cruise technology to enhance driver-assistance systems. CEO Mary Barra believes personal autonomy aligns better with customer desires and GM’s strengths. However, safety risks with Level 3 automation remain significant, and GM could revisit robotaxis in the future as the technology matures.

It sure sounds like Google is planning to actually launch some smart glasses

Google's Project Astra, its ambitious AI virtual assistant, is being tested on prototype smart glasses as part of Google's Trusted Tester program. These glasses aim to provide an intuitive, always-on experience for tasks like navigation, weather updates, and more. While Astra's capabilities align well with wearable tech, details on a public launch remain unclear. Google's commitment to smart glasses suggests a strong push toward integrating AI into everyday life.

Nvidia’s China Risk

Elon Musk is mad at the SEC again

Breaking Up Google Could Make Rival Browsers’ Life Worse

Google Challenger Perplexity Promises Booming Growth, Rosy Margins

Google Asks FTC to Kill Microsoft’s Exclusive Cloud Deal with OpenAI

Sundar Pichai and Jeff Bezos head to Mar-a-Lago to schmooze with Trump

Tesla China Demand Hot; Key Analyst Raises Price Target But It's Not On Deliveries

Tim Cook is the latest tech CEO to meet with Trump at Mar-a-Lago

Microsoft’s AI boss and Sam Altman disagree on what it takes to get to AGI

Google says its breakthrough quantum chip can’t break modern cryptography

Google launched Gemini 2.0, its new AI model for practically everything

Solos challenges Meta’s Ray-Bans with $299 ChatGPT smart glasses

Meta’s new Quest update has faster hand tracking and at-a-glance PC connections

OpenAI has finally released Sora

How Anthropic Got Inside OpenAI’s Head

Biden administration raises tariffs on solar materials from China

Amazon and the endangered future of the middle manager

Michael Dell Spent 40 Years Preparing for an AI Boom No One Expected

Google announces Android XR, a new OS for headsets and smart glasses

Google’s future data centers will be built next to solar and wind farms

Over $6 billion in CHIPS Act funding finalized for Micron plants in the US

Instagram will let creators test experimental reels on random people

Rebels assert control after Assad regime collapse

South Korean president Yoon Suk Yeol impeached by parliament 2 weeks after short-lived martial law decree

OpenAI’s New Toy Could Be a Problem

Next week

Fed Meeting

The Federal Reserve's final meeting of 2024 is set for December 17-18, with markets widely anticipating a quarter-point rate cut. If implemented, this would mark a total of 100 basis points in cuts over the past three meetings. However, with solid economic growth and persistent inflation, investors expect the Fed to hold rates steady through next spring.

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Weekly check of the market

Magnificent 7, Nasdaq and S&P500

Apple posted strong gains of 3.25%, likely fueled by optimism about its product ecosystem, as highlighted by Wedbush analysts, who noted the strength of its vast iOS device base and services growth. Additionally, Black Friday expectations for record-breaking shopping activity, particularly for products like AirPods, iPads, and Apple Watches, contributed to the positive investor sentiment.

Microsoft gained 1.55%, reflecting steady growth in the cloud and AI.

Amazon surged by 5.46% a, emerging as the "winner of the week" due to its announcement of a new generative AI model and strong Q4 holiday season predictions, alongside optimism regarding AWS's growth and AI services.

Google gained 2.54%, as investors showed resilience despite uncertainties surrounding ongoing DOJ antitrust lawsuits. Different analysts' sum-of-parts valuations have highlighted that even if Google were split into separate entities due to antitrust pressures, the combined value of its divisions—Search, GCP, YouTube, Android, Chrome, and others could exceed its current market valuation, further boosting investor confidence.

Meta rose 2.71%, driven by advancements in its ambitious cable project aimed at enhancing global internet infrastructure, including plans to build a $10 billion, globe-spanning undersea internet cable to improve connectivity and reduce reliance on telecom companies. Investor confidence was further bolstered by Meta's continued focus on AI and metaverse initiatives, as well as strategic engagement by CEO Mark Zuckerberg, who recently met with President-elect Donald Trump at Mar-a-Lago to discuss the incoming administration and its economic reforms. Zuckerberg expressed gratitude for the opportunity, signaling Meta's proactive approach to navigating regulatory and political landscapes.

Nvidia dropped by 2.61% this week, as fears of a potential trade war and the announcement of new tariffs weighed heavily on investor sentiment.

Tesla declined by 2.10%, potentially reflecting cautious investor sentiment despite significant advancements in its robotics and neural interface ventures. The unveiling of an upgraded hand for the Optimus humanoid robot, which demonstrated enhanced dexterity by catching a tennis ball, showcased Tesla's progress in developing humanoids with near-human capabilities. Additionally, Neuralink, another venture led by Elon Musk, received FDA approval for its CONVOY Study, aiming to connect its brain-computer interface (BCI) N1 Implant to assistive robotic arms.

The S&P 500 gained 1.06%, reaching an all-time high, underscoring strength in the broader market driven by easing inflation concerns, robust corporate earnings, and optimism in tech. The NASDAQ rose 1.13%, mirroring tech-heavy gains as innovation-driven growth sectors continued to thrive.

After coming within 1% of the $100K mark last week, Bitcoin appears to have entered a consolidation phase, with this week's trading range fluctuating between $90K and $99K. It is currently trading at $96,924.

Fear & Greed Index

It appears that market sentiment is leaning further into greed, as indicated by the Fear and Greed Index climbing to 66 from last week's 60. With the holiday season approaching, optimism and bullish sentiment seem to be driving this upward shift.

CBOE Volatility Index (VIX)

The VIX rose 10.70% in Week 48, reflecting heightened market uncertainty. Daily spikes, like a 4.95% rise on 27.11.2024, suggest investor fear. This volatility may stem from tariffs announced by Trump, sparking hedging activity and risk aversion.

Outliers

Next week, I’ll focus on the top 15 performers and laggards with a market cap above $10B, as these are my primary investment targets. Interestingly, many names appear in the table for the second time, highlighting the current appeal of growth-oriented companies.

Earnings of the week

Zoom

Zoom delivered strong Q3 results, beating expectations with EPS of $1.38 (vs. $1.31) and revenue of $1.18B (vs. $1.16B), up 4% YoY. Net income rose to $207M, while enterprise customers grew to 192,400. FY 2025 guidance increased to $4.66B revenue and $5.43 EPS. The company introduced new offerings like single-use webinars for up to 1M attendees and a premium AI Companion launching in 2025. Shares fell 4% post-earnings due to modest Q4 guidance but remain up 24% YTD. Zoom also rebranded to "Zoom Communications Inc." to reflect its AI-driven evolution.

Dell

Dell beat Q3 EPS expectations with $2.15 (vs. $2.06) but missed on revenue at $24.4B (vs. $24.67B). Net income rose 12% to $1.12B. Infrastructure Solutions Group revenue surged 34% to $11.4B, driven by AI server sales, while PC sales dipped 1% to $12.1B. Q4 guidance fell below estimates, sending shares down 10%.

CrowdStrike

CrowdStrike reported Q3 revenue of $1.01B, up 29% YoY, exceeding estimates. However, rising costs led to a net loss of $16.82M, or $0.07/share, compared to a $26.67M profit last year. Costs stemmed from a July software outage, which sparked lawsuits like Delta's $500M claim. Despite challenges, CrowdStrike raised FY revenue guidance to $3.92B-$3.93B, above expectations. Shares fell 2% post-earnings but remain up 42% YTD and many analysts still bullish.

HP

HP reported Q4 revenue of $14.1B, up 1.7% YoY, beating estimates of $13.99B. Adjusted EPS of $0.93 met expectations. However, Q1 2025 EPS guidance of $0.70-$0.76 fell below analyst expectations of $0.85, reflecting continued weak PC demand. FY 2025 EPS guidance of $3.45-$3.75 aligns with forecasts.

Workday

Workday reported Q3 EPS of $1.89 (vs. $1.76 expected) and revenue of $2.16B (vs. $2.13B expected), up 16% YoY. Subscription revenue grew to $1.96B. However, Q4 guidance missed expectations with a 25% margin and $2.03B subscription revenue forecast, sending shares down 11%. FY 2026 subscription revenue is projected at $8.8B (+14%).

News of the week

President-Elect Trump Announces Intent To Impose Tariffs on Goods Imported From Canada, Mexico and China

President-elect Trump announced plans for 25% tariffs on imports from Canada and Mexico and an additional 10% tariff on Chinese goods, impacting over one-third of U.S. imports. Justified under IEEPA, the measures target drug trafficking but may prompt retaliatory tariffs. Businesses should act quickly to mitigate risks by accelerating shipments, sourcing alternatives, or using customs valuation strategies like the "first sale rule."

Tesla's Optimus Bot Gets New Hands As Neuralink's FDA-Approved BCI Trials Begin

Tesla unveiled upgraded hands for its Optimus robot, capable of catching objects, aligning with Neuralink's FDA-approved BCI trials to test robotic arm control.

Meta plans to build $10B globe-spanning undersea internet cable

Meta plans to invest over $10 billion to lay 25,000 miles of private undersea fiber optic cables, spanning the US, India, South Africa, and Australia. The cables, aimed at supporting Meta's significant internet usage (22% of global mobile traffic), will face logistical hurdles before implementation.

Databricks closes in on multibillion funding round at $55 billion valuation to help employees cash out

Databricks is raising $5-$8 billion at a $55 billion valuation, enabling employees to cash out while delaying an IPO until at least mid-2025. Backed by major firms like Nvidia and Fidelity, the AI-driven data analytics company projects $2.4 billion in 2024 revenue and continues to expand amid strong AI momentum.

Brazil's income tax exemption plan sends currency to fresh lows

Brazil's government announced over 70 billion reais ($11.8 billion) in spending cuts to support its fiscal framework, alongside tax reforms increasing income tax exemptions for the middle class, surprising markets. Investors reacted negatively, citing optimistic fiscal projections, causing the real to weaken to 5.99 per dollar, interest rate futures to rise, and the Bovespa index to drop 2%. Measures include higher taxes on the wealthy and ending exemptions for retirees with high incomes, but concerns remain over credibility, with analysts expecting further interest rate hikes.

Brazil's finance minister, Congress leaders seek to calm markets on tax change concerns

Brazil's currency rebounded from record lows after congressional leaders delayed income tax reform, focusing instead on immediate spending cuts to save 70 billion reais ($11.8 billion) over two years. Finance Minister Haddad reaffirmed commitment to reducing the deficit and achieving 327 billion reais in savings by 2030. Market skepticism remains over fiscal credibility, despite alignment between the Lula administration and Congress on budget discipline. The real ended Friday at a record low of 6 per dollar, with central bank officials emphasizing a floating exchange rate policy.

Amazon Develops Video AI Model, Hedging Its Reliance on Anthropic

Amazon is set to launch Olympus, a multimodal AI model capable of analyzing video, images, and text, potentially debuting at AWS re:Invent. Targeting industries like sports analytics and oil and gas, Olympus aims to enhance video search and inspection efficiency. While less advanced in text generation than rivals like OpenAI, its video-processing capabilities could attract customers. Amazon’s investment in in-house AI reflects its strategy to reduce reliance on Anthropic and rivals.

Breaking down the DOJ’s plan to end Google’s search monopoly

The DOJ has proposed significant remedies to break up Google’s search monopoly, including selling Chrome and its Chromium project, banning exclusionary deals with Apple, and syndicating search data to competitors. These moves could disrupt Google’s ad revenue and search dominance, but Google’s core assets like Android and YouTube remain intact.

US 'Black Friday' online spending put at record $10.8 bn

American consumers spent a record $10.8B online during Black Friday, up 10.2% YoY, driven by toys, electronics, and apparel. AI-powered shopping tools boosted site traffic by 1,800%. Adobe predicts $40.6B in total online sales for the 5-day period, with Cyber Monday expected to hit $13.2B, up 6.1% YoY.

Mark Zuckerberg dines with Trump at Mar-a-Lago after pushing for meeting to discuss new administration: ‘Grateful for the invitation’

Meta CEO Mark Zuckerberg met with President-elect Donald Trump at Mar-a-Lago, reportedly to discuss the incoming administration. A Meta spokesperson called it an important time for innovation, while Trump advisor Stephen Miller praised Zuckerberg's interest in supporting national renewal under Trump’s leadership. Despite past tensions, the meeting was described as cordial.

ByteDance’s Global AI Ambition Runs Into Obstacles

ByteDance is developing AI models for global markets, aiming to reduce reliance on OpenAI while navigating geopolitical and regulatory challenges, particularly in the U.S. Its Doubao chatbot leads in China with 51.3M users, while Cici AI has launched in Southeast Asia, Latin America, and Japan. Technical hurdles and legal compliance remain obstacles for its global LLM rollout.

Ramp Seeks Valuation Bump to $11 Billion in Share Sale

Nvidia Slips Again On Post-Earnings Blues, New China Trade War

Nvidia shares fell 1.2% to $135.34, dropping below the 50-day average amid post-earnings "digestion" and fears of a potential trade war under President-elect Trump. While analysts see minimal direct impact from tariffs on semiconductors, broader trade tensions could pose risks. Nvidia maintains a dominant 18-24 month lead in AI GPUs, with no major challengers yet.

Tesla has a $1 trillion opportunity in AI and self-driving and the Musk/Trump relationship should fast-track it

Tesla shares rose 1.8% Friday after Wedbush analyst Dan Ives projected Tesla’s AI and autonomous driving opportunity could reach $1 trillion. Ives highlighted Elon Musk’s influence with President-elect Trump and anticipated eased regulations for self-driving cars. Tesla remains Wedbush's top AI play with a $400 price target.

Apple bears have missed out on more than $1 trillion of stock gains, says this bull

Apple skeptics have missed a $1 trillion stock surge as Wedbush's Dan Ives predicts strong growth ahead. With a $2T services business and AI integration set to reach 20% of the global population, Apple targets 240M iPhone sales in FY25. Wedbush maintains a $300 price target, 28% above current levels.

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Weekly check of the market

Magnificent 7, Nasdaq and S&P500

Tesla was the big winner this week, soaring almost 10%. Investors got excited about new regulations that could speed up its self-driving tech, combined with Elon Musk’s government role, which gave people hope for smoother sailing in the future. Apple also had a good week, gaining over 2%

On the other hand, Google faced significant challenges this week, with its stock dropping over 4% due to mounting regulatory and competitive pressures. The U.S. Department of Justice proposed that Google sell its Chrome browser to address antitrust concerns, threatening its dominance in advertising and search. Simultaneously, AI competitors like Perplexity AI and OpenAI gained traction with innovative search tools, including OpenAI's discussions with Samsung to power AI features, which could undermine Google's key Android partnership. These developments, combined with increasing advertising competition and regulatory risks, shook investor confidence and dragged down Alphabet’s stock.

Amazon didn’t do much better, down nearly 3% this week, as growing competition from companies like Walmart, Temu, and Shein put pressure on the company. Walmart’s raised guidance for Q4, signaling strong expectations for the holiday season after a better-than-expected earnings report. Additionally, despite Amazon announcing a further $4 billion investment in AI startup Anthropic, the news failed to reverse the downward trend. The investment strengthens Amazon’s position in the AI space, making Anthropic's models reliant on AWS and Amazon's AI chips. While the partnership boosts Amazon’s AI ambitions, it didn’t alleviate concerns about its core retail and e-commerce business, especially with increasing competition and macroeconomic uncertainties.

Nvidia was flat for the week, which was a surprise since they reported their earnings showing spectacular growth. Sales surged by 94% in the fiscal third quarter to $35.1 billion, with profits more than doubling to $19.3 billion, both figures exceeding Wall Street forecasts. The company also projected revenue of $37.5 billion for the current quarter, surpassing expectations, fueled by strong demand for its next-generation AI chips(Blackwell). These chips, which are set to ship this quarter, are already in high demand from major customers like Microsoft, Google, Meta, and Elon Musk’s xAI. Nvidia expects Blackwell to remain in short supply well into its next fiscal year, highlighting its dominant position in the AI chip market.

Meta inched up about 1% this week despite news of a proposed Australian law prohibiting children under 16 from accessing social media platforms like Instagram. The legislation, if enacted, would require platforms to implement strict age-verification measures, with non-compliance leading to fines of up to A$50 million. While this bill raises concerns about potential user base reductions and compliance costs for companies like Meta, investors appeared focused on the company's ongoing advancements in AI and continued efforts to streamline operations, which have been bolstering profitability.

Microsoft made a small gain of 0.5%

Overall, the S&P 500 and Nasdaq had a decent week, both up around 1.7%. The broader market stayed steady despite some ups and downs among the big tech names.

Bitcoin came within 1% of reaching $100K on November 22, 2024, but has since cooled down. It is currently trading at $96,346, still up 5.80% for the week.

Fear & Greed Index

Source: CNN Business

With closely approaching extreme greed, I always recommend being cautious and smart about your moves in the market.

CBOE Volatility Index (VIX)

I believe the above data clearly shows how much the market depends on the Nvidia numbers. Thank you, “Jensen,” for keeping us on the upward trend.

Outliers

Make sure to understand I could absolutely put hundreds of outliers more, but these are the ones I am also following, so they are under my radar. They reflect a broader theme of investor optimism, particularly in clean energy, AI, and high-growth technology sectors. Both nuclear and tech growth stories are captivating markets with potential for continued outperformance.

Earnings of the week

Nvidia

Snowflake

Snowflake’s stock soared over 30% Thursday, marking its largest percentage gain ever, after posting better-than-expected Q3 results and announcing a major generative AI partnership. Revenue reached $942.1 million, up 28% year-over-year, with product revenue at $900.3 million, surpassing forecasts. The company also provided a strong Q4 outlook, easing competition concerns and reinforcing confidence in cloud infrastructure demand. Snowflake’s new partnership with Anthropic will integrate Claude AI models into its platform, enabling businesses to build AI applications securely and efficiently. While these AI initiatives won’t boost near-term revenue, analysts expect them to drive growth by fiscal 2026.

Walmart

Walmart’s latest earnings show strong U.S. sales growth, with comparable sales rising 5.3%, surpassing analyst expectations of 3.9%. Holiday shopping is off to a solid start, driven by demand for toys, groceries, and home goods. The retailer raised its annual sales and profit outlook, forecasting comparable sales growth of up to 5.1%. E-commerce sales grew 27% year-over-year, now making up 18% of global revenue. Walmart reported higher profits thanks to fewer discounts, reduced delivery costs, and strong advertising revenue. While non-food spending remains slower, Walmart continues to attract high-income shoppers with premium products. Executives remain optimistic despite potential new tariffs under the incoming Trump administration, which the company is monitoring closely.

Target

Target shares plummeted 21% after the company missed quarterly earnings expectations and slashed its annual profit and sales outlook. Despite price cuts boosting foot traffic, consumers spent less on nonessential items like apparel and home goods, leading to flat sales growth of 0.3%, below the 1.5% analysts expected. Profits also fell, partly due to higher import costs from early inventory ahead of a brief port strike. In contrast, competitors like Walmart and Costco reported stronger results, benefiting from higher grocery sales and demand for discretionary goods. Target now expects annual earnings of $8.30 to $8.90 per share, down from its earlier forecast, as it navigates cautious consumer spending and potential tariffs under the incoming Trump administration.

NIO

NIO Inc. reported its Q3 2024 financial results, showcasing record vehicle deliveries of 61,855 units, up 11.6% YoY, with revenues of RMB 18.67 billion (US$2.66 billion), a 7% QoQ increase. Despite growth in deliveries and gross margins (10.7%, up from 9.7% QoQ), the company posted a net loss of RMB 5.06 billion (US$721 million). Challenges included a lower average selling price and rising operational costs. Overall, experts believe NIO’s robust vehicle delivery growth and strategic investments are encouraging, but profitability challenges and competitive pressures in the EV market remain key hurdles.

Baidu

Baidu's Q3 2024 earnings report showcased resilience amidst challenges, beating market expectations despite a 3% annual revenue decline, reaching $4.78 billion. Net income surged 14% to $1.09 billion, driven by robust growth in its AI cloud segment, which saw non-online marketing revenue climb 12%. The company's flagship Ernie AI model and chatbot demonstrated strong adoption, with usage more than doubling since August, signaling broader recognition of Baidu's AI capabilities. Generative AI accounted for 11% of AI cloud revenue, up from 9% last quarter. Baidu's AI-focused strategy also underpinned growth in autonomous ride-hailing via Apollo Go, with rides increasing 20% year-over-year. However, weak online ad spending from small businesses and China's slower economic stimulus effects weighed on the traditional revenue streams.

News of the week

Amazon Invests an Additional $4 Billion in AI Firm Anthropic

Amazon has invested an additional $4 billion in Anthropic, an AI firm behind the Claude chatbot, deepening ties with one of OpenAI's main rivals. The deal strengthens Anthropic's use of AWS services and AI chips, boosting Amazon's presence in the AI market.

OpenAI Considers Taking on Google With Browser

OpenAI is gearing up to challenge Google by exploring a web browser combined with its ChatGPT AI, aiming to revolutionize how users interact with the web. Dubbed NLWeb (Natural Language Web), the project seeks to integrate conversational AI into websites, enabling users to ask natural-language questions for personalized results, such as finding coats for specific trips or pairing recipes with dishes. OpenAI has also struck deals with developers like Condé Nast and Redfin, positioning its tools as a transformative alternative to traditional search. With ChatGPT boasting 300 million weekly active users, OpenAI has become a significant player in AI search, rivaling Google’s dominance. It has hired former Chrome developers and is pursuing partnerships with device makers like Samsung. This aggressive move mirrors Google’s early strategy of building Chrome to protect its ecosystem.

Google Should Be Forced to Sell Chrome Browser, Justice Department Says

The U.S. Department of Justice has proposed that Google sell its Chrome browser to address its monopolization of the search market. This drastic move, following an antitrust victory, aims to restore competition by separating Google’s search engine from its other products, like Chrome and Android.

Perplexity’s AI search engine can now buy products for you

Perplexity has introduced a new feature allowing Pro subscribers to purchase products directly through its AI search engine using a "Buy with Pro" button. This tool simplifies shopping by offering free shipping and leveraging saved payment details. Perplexity also launched features like AI-generated product cards and "Snap to Shop," enhancing its shopping experience and competing with tools like Google Lens. This move highlights Perplexity’s push to innovate in AI-driven e-commerce.

TikTok CEO Seeks Musk’s Counsel on Incoming Trump Administration

TikTok CEO Shou Chew has reportedly reached out to Elon Musk for insights on navigating the incoming Trump administration. With Musk’s close ties to President-elect Trump and influence in shaping tech policy, ByteDance sees him as a valuable connection. TikTok faces a potential U.S. ban by mid-January unless ByteDance divests the platform, a demand the company is fighting through a federal lawsuit. Musk’s proximity to Trump and his role in policy discussions has led to cautious optimism for a potential resolution for TikTok’s U.S. operations.

Super Micro Computer Submits Nasdaq Compliance Plan

Super Micro Computer (SMCI) has submitted a plan to the Nasdaq to regain compliance after missing deadlines for financial reports. The company hired BDO USA as its independent auditor to address accounting issues following Ernst & Young's resignation. Despite earlier guidance cuts and governance concerns, SMCI’s stock surged, gaining 26% in after-hours trading as investors showed confidence in its recovery efforts.

Amazon Web Services Launches Quantum-Computing Advisory Program

Amazon Web Services (AWS) has launched Quantum Embark, an advisory program designed to help organizations explore quantum computing applications tailored to their business needs. Building on AWS's Braket platform, the program offers modules like Use Case Discovery, Technical Enablement, and Deep Dive to guide users in identifying and leveraging quantum solutions. Shares of quantum-computing firms surged following the announcement, with Quantum Computing Inc. up 28%, D-Wave Quantum up 48%, and Arqit Quantum rising 26%. The move underscores AWS's commitment to leading innovation in quantum technology.

Tesla gains on report Trump's team planning federal self-driving vehicle regulations

Tesla shares climbed following reports that President-elect Donald Trump's team plans to implement federal regulations for autonomous vehicles. Elon Musk’s role in Trump’s administration has sparked optimism about streamlining approval for Tesla's Full Self-Driving (FSD) technology. While regulatory hurdles and safety investigations remain, investors view Musk’s ties to the White House as a potential advantage, boosting Tesla’s market value past $1 trillion. This development underscores growing confidence in Tesla’s leadership in autonomous driving innovation.

Australia wants to ban kids from social media. Will it work?

Australia is proposing a groundbreaking ban on social media for children under 16, aimed at protecting kids from online harm. While many parents welcome it as a step to let children experience life offline, experts warn it’s a blunt instrument with potential drawbacks, such as pushing kids toward unsafe online spaces. Questions remain about how the ban will be enforced, with challenges in age verification and maintaining user privacy.

Trump Picks Scott Bessent as Treasury Secretary

Donald Trump has nominated hedge-fund manager Scott Bessent as Treasury Secretary. A key economic adviser, Bessent supports Trump’s "America First" agenda, advocating growth through deregulation and energy production while addressing trade policies like tariffs. If confirmed, he will oversee tax policies, debt management, and economic diplomacy. Bessent’s experience in finance and recent public support for Trump’s economic vision have bolstered his position, though challenges include navigating Washington politics and balancing fiscal priorities.

U.N. Reaches $300 Billion Climate Financing Deal as Trump Looms

Wealthy nations, including the U.S. and EU, agreed at a U.N. summit in Baku to triple annual climate financing to $300 billion by 2035 to aid developing countries. However, with Donald Trump’s incoming administration likely to pull back U.S. support, doubts loom over the deal's implementation. Critics argue the amount is insufficient, as developing nations demand more funding to combat escalating climate costs linked to record-breaking global temperatures. The agreement reflects geopolitical tensions, with China and other high-income developing countries facing calls to contribute more.

Salesforce Plans Layoffs at Acquisition Own in Strategy Shift

Salesforce is cutting jobs at Own, the data management startup it recently acquired for $1.9 billion, in a move signaling its shift toward tighter acquisition strategies. The layoffs, effective January 31, follow Salesforce’s broader cost-cutting measures after criticism of its rapid expansion through major deals like Slack and Tableau. While some roles will support the integration short-term, the move reflects Salesforce’s efforts to streamline operations and focus on core products like its Data Cloud offering. Despite the cuts, Salesforce is also hiring over 1,000 workers to support its generative AI initiatives.

That Viral Banana Duct-Taped to a Wall? It Just Sold for $6.2 Million

Maurizio Cattelan’s viral artwork Comedian—a banana duct-taped to a wall—sold for $6.2 million at a Sotheby’s auction, far exceeding its $1.5 million estimate. Crypto entrepreneur Justin Sun won the piece after a five-minute bidding war, calling it a "cultural phenomenon" that bridges art, memes, and cryptocurrency. The sale includes a certificate of authenticity and instructions for replacing the banana once it rots. While controversial, Cattelan described the piece as a reflection on what society values, sparking debates about art, money, and cultural significance.