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China is intensifying its investigation into Meta Platforms' $2 billion acquisition of AI startup Manus, focusing on potential violations of tech export and national security regulations. Concerns include the risk of sensitive Chinese technology and user data being compromised. The review also examines cross-border currency flows and tax compliance. Despite the preliminary nature of the investigation, it highlights the scrutiny of US acquisitions of Asian tech firms. Manus, which relocated to Singapore, has raised alarms in China due to its rapid growth and ties to advanced AI technology. Meta aims to integrate Manus's technology into its products while continuing operations.
Peter Thiel's Thiel Macro fund sold 76% of its Tesla shares and invested in Apple. This move comes as Tesla's valuation appears high, with a P/S ratio of 16 and a P/E ratio of 283, amid increasing competition and market share loss. Thiel's strategy reflects a shift from a volatile stock to a more stable investment in Apple, which may offer protection against market corrections. Despite Tesla being the largest position in his fund, this decision showcases Thiel's adept portfolio management, balancing potential high returns with risk mitigation.
Apple has fallen for eight consecutive weeks, setting the longest losing streak since May 2022. Since July of last year, the outflow of funds from Apple has been particularly noticeable compared to the other components of the seven tech giants. The demand for AI hardware has driven up memory chip prices by 40%-50%, threatening Apple's profit margins. However, Goldman Sachs expects Apple's revenue for the first fiscal quarter, to be announced on January 29, to grow by 11%, optimistic about the implementation of AI features and the replacement cycle, with a target price of $320
AMD stock rose nearly 3% on Friday, marking its ninth consecutive session of gains, driven by Intel's struggles. Intel's CEO indicated a lengthy turnaround, leading to a decline in its shares and boosting sentiment for AMD. Analysts suggest AMD may gain more CPU market share, particularly in servers, due to Intel's supply issues. The consensus rating for AMD is Strong Buy, with an average price target of $284.93, indicating an 8.61% potential upside.
Four major companies, Tesla, Microsoft, Meta, and Apple, are at the forefront of a surge in earnings following a period of volatile market activity influenced by President Trump. The stock market experienced a back-and-forth movement before these companies took the lead in reporting their financial results. Dow Jones Futures indicate a positive outlook as investors await the earnings reports from these tech giants. The market is closely watching the financial performance of these companies amid the current economic landscape.
