US Morning News Call | Big Tech Considers Up to $60B Investment in OpenAI at $730B Valuation
Key Takeaways:
• Federal Reserve Holds Rates Steady as Powell Signals Pause in Rate Cuts
• Big Tech Considers Up to $60B Investment in OpenAI at $730B Valuation
• Tesla Reports Q4 Earnings Beat and Plans $2 Billion Investment in xAI
• Microsoft Reports Q2 Earnings Beat with Revenue Growth Despite Margin Concerns
• Key Earnings: AAPL, SNDK, etc.
🔔Before the Bell
US stocks extended their gains as major technology companies ramped up spending to expand the infrastructure behind AI, while $XAU/USD (XAUUSD.CFD)$ and $XAG/USD (XAGUSD.FX)$ climbed to new record highs.
$E-mini NASDAQ 100 Futures (MAR6) (NQmain.US)$ went up by 0.19%;
$E-mini S&P 500 Futures (MAR6) (ESmain.US)$ went up by 0.19%;
$E-mini Dow Futures (MAR6) (YMmain.US)$ went up by 0.06%.
Federal Reserve Holds Rates Steady as Powell Signals Pause in Rate Cuts
The Federal Reserve kept benchmark rates at 3.5%-3.75% following its January meeting. Chair Jerome Powell stated monetary policy is near neutral with balanced risks, suggesting little urgency for further rate cuts as the economy remains on firm footing.
Big Tech Considers Up to $60B Investment in OpenAI at $730B Valuation
$NVIDIA (NVDA.US)$ , $Microsoft (MSFT.US)$ and $Amazon (AMZN.US)$ are reportedly in talks to invest up to $60 billion in OpenAI, with Nvidia weighing up to $30 billion and Amazon potentially more than $10 billion. The prospective funding round, alongside separate talks with SoftBank, could value OpenAI at about $730 billion before new financing and may include expanded cloud and commercial partnerships, particularly with Amazon.
Tesla Reports Q4 Earnings Beat and Plans $2 Billion Investment in xAI
$Tesla (TSLA.US)$ reported Q4 adjusted EPS of $0.50, down 17% year-over-year but beating expectations. Revenue declined 3.14% to $24.9 billion. Non-automotive business now accounts for 28% of total revenue, up from 13% in Q4 2022. Tesla announced a $2 billion investment in Elon Musk's AI company xAI.
Microsoft Reports Q2 Earnings Beat with Revenue Growth Despite Margin Concerns
$Microsoft (MSFT.US)$ reported Q2 revenue of $81.3 billion, up 17% year-over-year, beating consensus estimates of $80.3 billion and company guidance. Gross margin declined to 68%, down 0.7 percentage points year-over-year but above market expectations.
Alibaba Secures Xpeng and State Grid as AI Chip Clients, Partners on Autonomous Vehicle Business
$Alibaba (BABA.US)$ secured $XPeng (XPEV.US)$ and State Grid Corp. of China as clients for its AI chips. Additionally, Alibaba's Cainiao logistics unit is merging its autonomous-driving division with robovan company Zelos Technology, creating a business valued around $2 billion.
🪙Crypto News
Whale Liquidates $4.5 Million BTC Short Position with $84,900 Profit
A whale liquidated a $4.5 million BTC short position, generating $84,900 profit. The high-frequency trader operates with 10x leverage and currently holds $147,000 unrealized losses.
📆Market Events
Key Results
🔔Before Market
The market anticipates $Lockheed Martin (LMT.US)$ revenue of $19.86 billion, up 6.64% YOY, with EPS at $5.75, a 158.84% YOY increase.
The market anticipates $Visa (V.US)$ revenue of $10.69 billion, up 12.41% YOY, with EPS at $3.12, a 21.02% YOY increase.
🔔After Market
The market anticipates $Apple (AAPL.US)$ revenue of $138.52 billion, up 11.44% YOY, with EPS at $2.67, a 11.28% YOY increase.
The market anticipates $Western Digital (WDC.US)$ revenue of $2.94 billion, down 31.5% YOY, with EPS at $1.75, a 7.48% YOY increase.
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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BetterCallSaul : Tesla has seriously gone off the deep end. Not that its cult will notice.