Market News 5/25

Market News

Yesterday, stocks experienced further declines as negotiations on the debt ceiling persisted without a resolution in sight, raising concerns of a potential government default on June 1. Investors are becoming increasingly anxious, prompting JPMorgan strategists to advise clients to move their investments into cash rather than stocks. Additionally, bonds issued by stable companies are currently performing better than Treasury bonds.

Politics

DeSantis Disaster

The highly anticipated launch of Florida Governor Ron DeSantis' 2024 presidential campaign turned out to be a less than triumphant moment for both him and Twitter CEO Elon Musk. Instead of a televised appearance, the event took place on Twitter Spaces, featuring Musk. Unfortunately, the audio-only event was plagued by numerous technical issues due to Twitter's servers being unable to handle the large audience of over 500,000 attendees. The original webcast had to be ended and a new one started with fewer listeners, but technical problems persisted, causing Elon Musk, the world's second-richest person, to appear less competent. Although half a million listeners may seem significant, it pales in comparison to the millions of viewers that Fox News attracts daily with its video content. Considering the flawed nature of the announcement, it may have worked out for the better that only 250,000 people ultimately tuned in to the restarted event.

Crypto

Crypto Companies Test the Public Markets

The recent market recovery in 2023 has opened up new possibilities for crypto companies that were previously deemed unlikely. Some of these companies are now considering the option of going public, which was not feasible just six months ago.

Bitdeer Technologies, a Bitcoin-mining company, successfully listed on the Nasdaq last month. This achievement was made possible through a merger with a special-purpose acquisition company (SPAC), commonly known as a blank-check company. SPACs provide businesses with a streamlined route to access public markets, offering greater flexibility and fewer regulatory hurdles.

Another crypto company, Chia Network, has also taken steps towards going public, signaling their intention to enter the public market. Additionally, both BitFuFu, a cloud-mining company, and Bitcoin Depot, a crypto cash-machine company, are currently working on plans to pursue public listings through SPAC mergers.

Artificial Intelligence

Elon Musk Wants to Challenge Google and Microsoft in AI

During The Wall Street Journal's CEO Council Summit in London, Elon Musk expressed his belief in the necessity of an artificial intelligence (AI) business that can compete with tech giants like Google and Microsoft. He hinted at the potential involvement of different entities within his corporate empire, including Twitter. Musk went on to predict that Twitter could soon put an end to its financial losses, possibly as early as next month.

As part of his appearance at the event, Musk also teased an upcoming Twitter event ( yesterday) featuring Ron DeSantis, the presumed presidential candidate. It is reported that the Florida governor will announce his 2024 presidential bid during a Twitter chat with Musk, scheduled for Wednesday evening.

Musk, who made a virtual appearance at the Journal's London event, stated that his efforts to revitalize Twitter, which he acquired for approximately $44 billion last year, were yielding positive results. Although Twitter is not yet profitable, Musk expressed optimism that the company could achieve positive cash flow as soon as next month. Since going private under Musk's ownership, Twitter no longer publicly reports its financial results, but it has not recorded a profit since 2019.

Interesting Chronicles

NVIDIA To The Moon

Following its earnings announcement, Nvidia experienced a significant surge in after-hours trading as it exceeded revenue expectations. The company's remarkable performance was primarily driven by the surging demand for its chips, particularly in the field of artificial intelligence (AI). Notably, Nvidia's market capitalization has increased by over $220 billion this year alone, a figure that surpasses the entire market value of McDonald's Corp., a well-known fast-food giant.