Concerns about a potential bubble in the artificial intelligence sector emerged again on Thursday as major U.S. stock markets declined, just a day after chipmaker Nvidia’s impressive results had sparked a market rally.
Initially, Wall Street experienced a boost following Nvidia’s reassurance of robust demand for its advanced data center chips. However, this optimism faded as the tech stocks central to the AI boom began to face downward pressure.
In New York, the S&P 500 index ended the day down 1.6%, while the Dow Jones Industrial Average fell by 0.8%. The tech-focused Nasdaq Composite Index dropped by 2.2%.
Earlier in the session, the FTSE 100 rose by 0.2% in London, and the DAX closed 0.5% higher in Frankfurt. The Nikkei Stock Average increased by 2.65% in Tokyo.
Currently valued at approximately $4.4 trillion, Nvidia has seen an extraordinary surge in valuations among AI-related companies in recent months. The escalating concerns about a bubble have arisen as businesses invest heavily in chips and data centers to secure their position in the AI market.
Nvidia continues to experience strong demand, with highly anticipated earnings surpassing expectations on Wednesday. Yet, worries persist that companies utilizing these chips and investing in AI are making substantial expenditures to stimulate demand.
“The sale of semiconductors to support AI doesn’t mitigate fears that some hyperscalers might be overspending on AI infrastructure,” remarked Robert Pavlik, senior portfolio manager at Dakota Wealth. “While certain companies are turning a profit, many are still investing heavily.”
Mixed employment data released Thursday morning highlighted robust labor market growth in September, albeit with a slight uptick in the unemployment rate, reinforcing the expectation that Federal Reserve policymakers may choose to maintain interest rates at their upcoming December meeting.
Nvidia’s stock saw a decline of 3.2%, while the VIX index, which gauges market volatility, increased by 8%.
Global stock markets have seen a sharp decline as fears grow that the surge in valuations for artificial intelligence (AI) companies is losing steam.
U.S., Asian, and European markets all dropped following warnings from bank executives about a possible significant market correction, spurred by record highs that made several firms seem overvalued.
On Tuesday, the tech-centric Nasdaq and S&P 500 experienced their largest single-day drops in almost a month.
Tech stocks heavily influenced the Nasdaq’s decline, which closed down by 2%. The AI stocks of the “grand seven” companies—including Nvidia, Amazon, Apple, Microsoft, Tesla, Alphabet (the parent company of Google), and Meta (the owner of Facebook, Instagram, and WhatsApp)—all recorded losses.
The S&P 500 faced setbacks primarily from tech stocks, notably Palantir, which saw an almost 8% decrease despite raising its earnings expectations just a day prior, ultimately finishing the session down by more than 1%.
Palantir has also found itself in the crosshairs of prominent short sellers who wager on a decline in its stock value.
Michael Burry, the investor renowned for predicting the 2008 financial crisis and inspiring the film The Big Short, has taken positions on two major AI firms, Palantir and Nvidia, drawing backlash from Palantir’s management and contributing to a drop in its stock price.
In a CNBC interview, Alex Karp, the CEO of Palantir, criticized Burry and other short sellers for attempting to “cast doubt on the AI revolution.”
Asian markets mirrored the decline experienced in the United States, suffering their largest drop in seven months amid concerns regarding tech stock performance, with Japanese and South Korean indexes falling over 5% from record highs reached just a day before. European markets in the U.K., France, and Germany also saw slight declines on Wednesday morning.
The market downturn follows cautionary statements from the CEOs of Morgan Stanley and Goldman Sachs about a potential correction.
Their warnings echo concerns raised by Jamie Dimon, CEO of JPMorgan Chase, the largest U.S. bank, who predicted in October that the market might crash within the next six months to two years.
“The chorus is getting louder,” stated Jim Reid, an analyst at Deutsche Bank. “We’re having discussions about whether we are on the verge of a stock price correction.”
“The last 24 hours have revealed a clear risk-off trend, as apprehensions regarding high valuations of tech companies have negatively impacted investor confidence,” Reid remarked.
Other analysts have raised doubts about investing in AI companies, noting that while substantial funding has been directed to a handful of tech firms, like OpenAI and Nvidia, the returns on investment thus far remain minimal.
Bitcoin prices briefly dipped below $100,000 (£76,764) for the first time since June, as investors divested from high-risk assets like cryptocurrencies due to economic uncertainty.
While Bitcoin hit a peak of over $126,000 in early October, it fell 3.7% throughout the month, marking its worst monthly performance in a decade, according to CoinMarketCap statistics.
Nvidia has officially become the first company in the world to achieve a $5 trillion valuation, just three months after it made history by surpassing the $4 trillion market cap milestone.
In comparison, Nvidia’s valuation exceeds the GDPs of India, Japan, and the United Kingdom, as reported by the International Monetary Fund (IMF).
As the U.S. stock market opened on Wednesday, Nvidia’s stock surged to $207.86, boasting 24.3 billion outstanding shares and a market cap of $5.05 trillion. The company’s significant demand for chips, which are essential for advanced artificial intelligence products and software, has played a crucial role in its rapid stock price increase since early 2023.
This week, the overall U.S. stock market has reached several record highs, driven by increased investment in artificial intelligence.
On Tuesday, NVIDIA CEO Jensen Huang announced a massive $500 billion chip order. The company also disclosed a partnership with Uber focused on robotaxis and a $1 billion collaboration with Nokia to advance 6G technology. Furthermore, Nvidia is teaming up with the U.S. Department of Energy to develop seven new AI supercomputers.
Last month, Nvidia revealed plans to invest $100 billion in OpenAI, part of a partnership that will enhance the computing resources for users of the ChatGPT AI chatbot with at least 10 gigawatts of Nvidia AI data centers.
In August, Huang mentioned that Nvidia was discussing with the Trump administration the development of new computer chips tailored for China. Donald Trump stated on Air Force One that he would engage in discussions with Chinese President Xi Jinping regarding Nvidia chips on Thursday.
Reaching this new milestone highlights the impact of the artificial intelligence boom, deemed one of the most significant technological shifts since Apple co-founder Steve Jobs unveiled the first iPhone 18 years ago. Apple capitalized on the iPhone’s success and became the first publicly traded company to hit a $1 trillion valuation, then $2 trillion, and later $3 trillion.
However, there are growing worries over a potential AI bubble, with Bank of England officials cautioning earlier this month about the increasing risk that tech stocks, buoyed by the AI surge, could face a downturn. The head of the IMF has echoed similar concerns.
A prominent technology investor in the UK has labeled companies in the artificial intelligence sector as “confusing,” raising alarms about a potential AI stock market bubble.
James Anderson, known for his early investments in Tesla, Amazon, and China’s Tencent and Alibaba, which yielded significant returns for Bailey Gifford’s flagship fund, now serves at Ringott, an Italian investment firm. He noted that he had not observed any signs of an investment bubble until recently, particularly following large valuations announced by OpenAI, the creator of ChatGPT, and its competitor, Humanity.
“In the last few months, what surprised me was the lack of bubble indicators [in AI],” he told the Financial Times.
OpenAI is reportedly in talks for a stock sale that would value the company at $500 billion (£370 billion), a significant increase from its previous valuations of $300 million in April and $157 billion last October. Meanwhile, Humanity has recently seen its valuation nearly triple, reaching $170 billion last month, up from $60 billion in March.
“These rapid valuation increases should raise some questions. Something like Humanity was generating concerns among those looking to invest in OpenAI,” he remarked.
Anderson also expressed unease about Nvidia’s investment of up to $100 billion in OpenAI. Nvidia, a major player in AI infrastructure and the manufacturer of computer chips essential for training AI models, has seen its market valuation soar to $4.5 trillion. According to the agreement, OpenAI pays Nvidia in cash for services, while Nvidia invests in OpenAI with equity.
There has been ongoing commentary on this transaction that likens it to vendor financing, where companies offer financial support to purchasers of their products.
Anderson described himself as a “huge admirer” of Nvidia but indicated that the OpenAI agreement “has caused more concerns than before.”
Citing similar practices during the Dotcom bubble when telecom equipment manufacturers lent money to clients, he noted:
“There weren’t many telecom suppliers from 1999 to 2000, but there’s a familiar pattern. I don’t feel entirely at ease regarding this situation.”
Anderson is currently the managing partner of Lingott’s Innovation Strategy Fund, which is owned by the Agnelli family, known for their control over Ferrari and Juventus FC.
Nvidia and OpenAI were contacted for comments.
Many investors share concerns that stock market valuations may be on the verge of becoming bubbly due to the excitement surrounding AI.
Wolf von Rotberg, a stock strategist at J Safra Sarasin Sustainable Asset Management, cautioned on Tuesday that US stocks were becoming “increasingly absurd” after Donald Trump’s initiation of a trade war.
“Much of the rebound has been fueled by the highly favorable narrative surrounding AI and the surge in investment. While there’s no clear indication of a bubble, it might mirror the exuberance of previous periods.”
“Current valuations are not far from the peaks of the Dot-Com era in the early 2000s. Likewise, the credit market has traded at historically low-risk spreads over the past 25 years,” Von Rotberg stated.
City Consultant Capital Economics remarked that the market rally needs to deliver more. “With the S&P 500 reaching record highs, it’s no surprise that discussions of a stock market bubble in the US are resurfacing.”
“That said, as enthusiasm for AI continues to escalate, we wouldn’t be shocked if this year’s indices surpass the current forecast of 6,750.”
According to Deutsche Bank Research Institute, searches for “AI Bubble” on Google Trends have declined significantly over the past month.
“One AI bubble has already burst, and that is the notion that there is a bubble,” it concluded.
ByteDance, the parent company of the short video platform TikTok, is set to initiate a new employee stock buyback, valuing the Chinese tech powerhouse at over $330 billion, as its revenue continues to climb.
The firm plans to offer its employees $200.41 per share through a repurchase program. This valuation marks a 5.5% increase from $189.90, which was offered approximately six months ago.
The buyback initiative is expected to roll out in the fall.
The new buyback program, reflecting higher valuations, comes as ByteDance strengthens its position as the leading social media entity globally in terms of revenue, with second-quarter earnings rising 25% year-over-year, according to sources.
The surge indicated that the company’s second-quarter revenues reached nearly $48 billion, with a significant portion derived from the Chinese market despite ongoing political pressures regarding its US operations.
Details concerning the updated valuation and second quarter revenue growth had not been previously disclosed. The source requested anonymity as they were not authorized to speak to the media.
ByteDance did not immediately respond to the request for comment.
In the first quarter, ByteDance’s revenues exceeded $43 billion, establishing it as the number one social media company globally in terms of revenue, surpassing Meta’s $42.3 billion during the same period.
Both companies maintained sales growth of over 20% in the second quarter, driven by robust advertising demand.
ByteDance’s semi-annual buyback program allows employees of the private company to liquidate some of their holdings, showcasing a balance sheet strengthened by expanding both domestic and international operations.
It is becoming increasingly frequent for late-stage private firms to engage in regular buybacks to provide liquidity to employees without needing to go public prematurely.
Many organizations, including SpaceX and OpenAI, utilize external investors to fund these initiatives. However, ByteDance stands out as it consistently leverages its own balance sheet, reflecting financial flexibility and solid margins. The firm is also recognized as one of China’s AI leaders, investing billions in Nvidia chips, establishing AI infrastructure, and developing new models.
TikTok Sale
Despite surpassing Meta’s revenue this year, ByteDance’s valuation is less than one-fifth of Meta’s market capitalization, a discrepancy analysts largely attribute to political and regulatory risks faced in the US.
ByteDance is currently under significant scrutiny in Washington, where lawmakers are voicing national security concerns regarding its Chinese ownership.
Last year, Congress enacted legislation mandating that TikTok’s US assets be divested by January 19, 2025, or risk facing a nationwide ban affecting its 170 million US users. Donald Trump has made multiple remarks regarding TikTok and postponed the asset sale deadline until September 17, claiming that US buyers are lined up and that another extension could be possible.
Some lawmakers have criticized the delay, alleging that the administration is neglecting the law and disregarding national security worries related to China’s control over TikTok. While ByteDance is profitable, TikTok’s US operations have reportedly incurred losses, according to two sources. TikTok has not responded to Reuters’ request for comment.
If TikTok’s US assets are divested, they are expected to be owned by a joint venture involving an American consortium of investors and ByteDance.
The consortium currently leading the charge includes ByteDance’s existing shareholders, Susquehanna International Group, Atlantic General, KKR, and Andreessen Horowitz. Blackstone recently withdrew from the consortium, citing delays in the transaction timeline. A new ByteDance buyback could bolster morale among US-based employees, many of whom are concerned about TikTok’s uncertain future. The company is also reportedly working on a potential standalone app for US users, but it’s unclear if this contingency plan will be finalized amidst ongoing trade discussions between Trump and Beijing.
An increasing anxiety surrounds the possibility of a stock market collapse. The rise from minor dips to significant drops casts shadows as the initial excitement surrounding artificial intelligence begins to wane.
In recent weeks, U.S. tech stocks have faced a downward trend, suggesting that a stream of disappointing figures could become commonplace before the end of the month.
We may be looking at a scenario reminiscent of 2000, where the burst of the dot-com bubble could lead to a grim situation.
Federal Reserve Chairman Jerome Powell is among those policymakers responsible for guarding against impending crises. At the annual Jackson Hole meeting with central bank governors in Wyoming, he sought to reassure worried minds.
He expressed that the Fed is concerned about increasing inflation and is prepared to assist the economy in overcoming the uncertainties brought on by Donald Trump’s actions and the global economic slowdown.
With STAGFLATION looming, there’s a genuine threat as the U.S. economy decelerates and inflation rises. Powell has indicated to stock markets that interest rates may decrease, relieving pressure on companies dependent on debt.
The stock market draws Powell’s attention even more than usual, given the extent of U.S. personal pensions invested in publicly traded companies. Specifically, tech stocks are heavily investing in AI, despite not yet achieving a single dollar in profit.
A recent study from the Massachusetts Institute of Technology uncovered that 95% of companies investing in generative AI have not yet realized financial returns.
This news follows remarks from Sam Altman, CEO of OpenAI, who cautioned that some company valuations appeared “unusual.”
“We are happy to announce Ipek Ozkardeskaya, a senior analyst at the currency trading firm Swissquote,” remarked Ipek Ozkardeskaya. Altman’s comments served as a wake-up call for investors, likely triggering a sharp decline in various high-flying stocks.
Earlier this week, stock values for data mining and surveillance companies with substantial government contracts dropped almost 10%. AI chip manufacturer Nvidia declined by more than 3%, while other AI-related stocks such as ARM, Oracle, and AMD also suffered losses.
Most pension funds are heavily invested in these tech firms, along with established names like Amazon, Microsoft, Alphabet (Google), and Meta (Facebook).
Should fund managers consider withdrawing? That’s likely not a prudent choice.
The magnitude of investments in AI by companies like Google and Meta is vast, and while the technology’s potential is subject to much speculation, white-collar workers are already seeing expected benefits in their daily tasks.
Daily reports and suggestions for utilizing AI in presentation preparation are commonplace (though they come with the unspoken caveat that job openings remain unaddressed).
Microsoft Co-Pilot and numerous other “assistance” AI tools are available.
If this trend has already gained momentum across various economic sectors, a soft landing may await the tech industry, despite the elimination of some unstable, speculative enterprises.
In fact, a recession could facilitate large corporations in seizing opportunities from struggling competitors and leveraging new, affordable technological innovations.
The ratio of Palantir’s price to acquisition is over 500. Many investors are anxious even at a 50 ratio. Nvidia’s price to return ratio stands at 56.
As stock prices align with realistic revenue prospects, the Palantir/Nvidia ratio might decline; however, even in the harshest stock market turbulence, companies are unlikely to go bankrupt.
Trump remains a significant proponent, paving the way for AI to delve deeper into corporate operations. His advocacy for cryptocurrencies, along with his support for deregulated social media platforms, reflects his ideological leanings.
AI may pose potential dangers to humanity, given that politicians and regulators lag behind the notable figures and tech giants championing AI.
However, for investors, AI is not an entity that will simply vanish, crash, or evade downfall.
Intel’s shares increased by 7.4% following reports that the Trump administration is contemplating acquiring stock in a faltering US chip manufacturer.
According to Bloomberg, any potential government investment will be directed towards the development of Intel’s factory hubs in Ohio. This move aims to bolster the financial stability of chipmakers during a period when Intel is implementing job cuts as part of broader cost-reduction measures.
Discussions about this possible investment emerged from a meeting earlier this week between US President Donald Trump and Intel CEO Rip Bu Tang, which took place just days after Trump accused Tan of having connections with the Chinese Communist Party before resigning. Bloomberg indicated that Tan is likely to lead the chipmaker going forward.
In response to the Bloomberg article, White House spokesperson Kush Desai stated, “The dialogue regarding virtual transactions should be viewed as speculation unless formally announced by the administration.”
Despite this, the news triggered excitement among investors, with shares climbing by 7.4% on Thursday to $23.86 (£17.60), elevating the company’s market capitalization to $104 billion.
This move regarding Intel reflects the Trump administration’s ongoing efforts to intervene in significant private sectors. The President has consistently threatened to impose tariffs of up to 100% on imported semiconductors and chips.
Earlier this week, the US government also unveiled a deal involving advanced microdevices with chip manufacturer Nvidia, which commits to paying 15% of revenues derived from AI chip sales to China to the US government. Last month, the Department of Defense revealed that rare earth producer MP Materials would need $400 million in preferred stock.
However, investing in Intel represents a notable shift from Trump’s recent critical comments on the company’s leadership.
Trump expressed his thoughts on the True Social Media Platform last Thursday, stating, “The Intel CEO is exceedingly contradictory and must resign immediately. There’s no alternative to this problem. Thank you for your attention to this matter!”
His remarks came shortly after U.S. Republican Senator Tom Cotton sent a letter to Intel Chairman Frank Yearly regarding Tan’s investment and its connections to semiconductor companies linked with the CCP and its military faction, the People’s Liberation Army.
In April, Reuters disclosed that Tan had invested in numerous Chinese high-tech firms, with at least eight connections to the People’s Liberation Army.
Cotton questioned Intel’s board regarding whether Tan divested these investments, raising concerns over Tan’s previous role at Cadence Design Systems, which was found to have sold products to China’s National University of Defense Technology, in breach of US export controls.
At that time, Intel remarked that both the board and CEO are “deeply dedicated to advancing US domestic and economic security priorities, making significant investments in line with the President’s agenda to prioritize America.” Intel has been manufacturing within the US for 56 years and expressed eagerness to maintain collaboration with the administration.
In March, following a significant decline in Tesla’s stock price, Elon Musk informed employees that he was “committed to inventory.”
Robin Denholm, the chair of Tesla’s board, appears to have disregarded this advice. According to an analysis by Securities Filing’s New York Times, she has profited $180 million from selling Tesla shares she obtained through her board role within the last six months.
With this, her total earnings from Tesla stock sales exceed $530 million since she became chair in late 2018.
These stock transactions have raised questions regarding Denholm’s confidence in Tesla’s future. Her recent sales, executed under a pre-established trading plan created last summer, coincided with Musk’s demanding involvement in the Trump administration. Consequently, Tesla’s car sales have experienced a decline as Musk’s political endeavors alienated some customers. The company’s profits for the first quarter of 2025 plummeted to their lowest level in four years.
Denholm has the right to purchase stocks through stock options granted by Tesla from 2014 to 2020, which have dramatically increased in value. For instance, last week, she acquired over 112,000 shares at $24.73 each and sold them the same day for upwards of $270.
“To discard her inventory does not send a message that this is a board chair invested in the company’s future,” stated New York City Director Bradlander, overseeing the city’s five public pension funds, which held more than 3 million Tesla shares valued at around $817 million as of March.
A spokesperson for Denholm asserted that Tesla compensates its executives in a manner “fully aligned with shareholder interests.”
“The appreciation of Tesla’s director’s choices reflects the company’s superiority over its industry peers, yielding distinctive returns for shareholders who own the company,” he added.
Stock options, which have historically constituted the bulk of Tesla’s compensation, are valuable only if the company’s stock price appreciates. Those exercising options to acquire shares may choose to sell or retain their new shares.
Denholm has sold over 1.4 million Tesla shares while retaining 85,000 shares and approximately 49,000 stock options. Comparative Methods, a consulting firm, has scrutinized the compensation strategy. Her most recent stock transactions occurred under a plan initiated in July shortly after Musk endorsed Donald J. Trump for president.
Regulatory frameworks allow executives and insiders to engage in such transactions without disclosing numerous plan specifics, including their motivations or the terms for stock disposal. They also possess considerable latitude to rescind plans.
Denholm, an experienced technology executive from Australia, typically maintains a low profile and avoids public commentary on Tesla or Musk. She joined the Tesla Commission in 2014 and became chair after Musk stepped down in 2018 as part of an SEC settlement.
Criticism from investors, activists, and Delaware judges has arisen regarding her and other board members for not serving as a check on Musk’s influence, with assertions that the Tesla director has failed to keep him focused on the company.
“Musk operates as if there were no board oversight,” wrote Delaware Chancery Court Prime Minister Catalyne St. J. McCormick last year, noting the case was valued at approximately $56 billion when ruling in favor of shareholders contesting Musk’s 2018 compensation package. Judge McCormick characterized Denholm’s oversight of Musk as “Rakkadichal.”
Tesla’s appeal against the decision led to the annulment of Musk’s pay package, with Denholm actively disputing Judge McCormick’s allegations.
In the trial concerning Musk’s compensation, Denholm characterized her earnings from the Tesla board as “life-changing.” Compensation at Tesla was also scrutinized in another lawsuit in which Denholm and fellow board members reached a settlement in 2023.
Musk, who has been a part-time CEO of Tesla for years, has assumed even more responsibilities over time, regularly engaging with Washington and orchestrating President Trump’s strategies to reduce governmental spending and oppose federal employees.
Recently, Musk stated he would reduce his Washington presence by one or two days each week. Nevertheless, his focus will remain divided as he manages several other enterprises, including SpaceX and X, the social media platform he owns.
The first transaction based on Denholm’s recent trading plan occurred in November, shortly after the presidential election, as Tesla’s stock began to rise. In December, the stock reached a new high, and she continued to sell until early May, even as prices declined amid consumer backlash against Musk’s political activities.
Following recent losses, the stock has decreased by approximately 34% from its peak.
Musk acknowledged Tesla’s challenges during a March meeting with employees. “If you read the news, it feels like you understand.”
He reiterated his advice to employees not to sell their shares, asserting that Tesla will evolve into the world’s most valuable company through the realization of self-driving taxis and advanced robotic technologies. “The future is exceptionally promising,” he stated.
Denholm’s sales have significantly outpaced those of other Tesla board members.
In 2023, she and other current and former board members agreed to a settlement for shareholder lawsuits concerning their compensation, collectively agreeing to return $735 million. They denied any wrongdoing. Additionally, on May 1, a stock option valued at over $130 million was canceled to fulfill Denholm’s obligations, according to securities filings.
Following the lawsuit in June 2021, the board resolved to relinquish the new stock grants.
During the same period, Denholm also made more from selling company shares than other corporate committee leaders. The Times assessed stock sales made by chairs of the most valuable companies in the U.S., distinct from the executives of those companies, like Denholm.
The next non-executive chair who benefited significantly from selling shares in his oversight capacity is Stephen Hemsley of UnitedHealth Group. Since November 2018, Hemsley has profited over $100 million from UnitedHealth shares, all accrued during his tenure as CEO of the healthcare firm.
UnitedHealth reviewed the findings but refrained from commenting. On Tuesday, the company announced its decision to appoint Hemsley as its new Chief Executive while also retaining the chair position.
Sales carried out by executives and directors often predict subpar performance from the companies they lead, according to various academic studies.
Leaders like Denholm possess access to confidential information and a profound understanding of how broader economic factors can impact corporate performance. Nejat Seyhun, a finance professor at the University of Michigan, observes that this can render their transactions particularly lucrative.
Insiders “establish plans when they hold such information,” remarked Professor Seyhun. “If circumstances shift, they can easily rescind those plans.”
While Amazon aimed to highlight President Trump’s trade war, it was an unavoidable challenge for the leading online retailer in the U.S.
Initially, the e-commerce giant found itself amid a brief controversy on Tuesday, intertwined with misleading reports suggesting that Amazon revealed customs costs to shoppers.
Just two days later, economic realities hit when Amazon announced its slowest growth in North American retail history.
The company’s largest region contributed to first-quarter financial results, reflecting sluggish sales growth since the peak of the pandemic. Sales from January to March climbed to $155.7 billion, representing a 9% increase from the same period last year. Profits surged 64% to reach $17.1 billion.
For the quarter ending in June, Amazon has advised investors to anticipate revenues between $159 billion and $164 billion, with operating profits expected to decline to $13 billion. The company has included “tariffs and trade policies” as factors contributing to uncertainty in their forecasts.
The results were mixed in comparison to Wall Street expectations, leading to a more than 3% decline in Amazon’s stock during after-hours trading following the earnings release.
“None of us can predict precisely where the tariffs will land or when they will take effect,” stated Amazon CEO Andy Jassy during an investor call. He emphasized the company’s strong focus on reducing prices by procuring additional stock before tariffs are implemented, aiding sellers on Amazon’s platform to do the same.
Investors are analyzing how unforeseen tariffs, not addressed by President Trump, will impact Amazon’s customers. Some speculate that consumer purchases might have accelerated in March and April to avoid impending tariffs, leading to increased spending in otherwise unstable conditions.
Jassy noted that Amazon customers had made “advanced purchases” of certain product types but did not specify which ones.
Various elements contribute to Amazon’s retail revenue. Online product sales directly to consumers increased by 5% to $57.4 billion, while services provided to sellers on the platform grew by 6% to $36.5 billion.
Advertising, viewed by investors as a burgeoning and lucrative sector, rose 18% to $13.9 billion.
Investors have consistently focused on Amazon’s cloud computing division, which generates the majority of the company’s profits. Jassy, who previously led the cloud business before becoming CEO, is expanding the company’s artificial intelligence capabilities. The cloud sector grew by 17% in the first quarter, totaling $29.3 billion.
Jassy remarked that if Amazon had more capacity in its data centers, it could have offered even more cloud services. He mentioned the construction of a new facility equipped with advanced internet and AI-powered technology to alleviate constraints in the coming months. The company is striving to enhance its infrastructure, having reported more than $24 billion in spending during the first three months of the year, which is about $2 billion less than the previous quarter. In February, Amazon announced plans to invest around $100 billion in capital expenditures by 2025.
During the All Hands meeting at the Company on Thursday, Elon Musk reassured Tesla employees about the automaker’s “bright and exciting” future, encouraging them not to sell their stocks despite the company’s declining valuation.
“There may be challenging times,” the billionaire CEO informed his employees. “But what I want to emphasize is that the future looks incredibly bright and promising, and I am committed to achieving great things that nobody thought possible.”
During the meeting aired on X, Musk urged employees to hold onto their stocks despite a 50% decrease in stock prices. Tesla has faced criticism due to tech executives’ roles in the Trump administration. Following Trump’s reference to Musk as the head of the “Governmental Efficiency Department” (DOGE), the world’s richest person has dismantled the entire federal agency, leading to issues related to diversity, equity, and inclusion.
As a response, Tesla owners are considering selling their vehicles, leading to a plummet in the company’s stock price and incidents of destruction of Teslas across the country.
Musk expressed his concerns, stating, “When I read the news, it feels like Armageddon. If you choose not to purchase our products, I understand, but resorting to burning them is unreasonable.”
The day before, Tesla issued a recall for the CyberTruck model due to issues with a part called a can rail, prompting the replacement of the assembly of affected vehicles for free.
Even long-standing financial supporters of the company lament the challenging political environment facing Tesla and the subsequent decline in its performance.
Dan Ives, managing director of Wedbush, described the current situation as a “brand tornado crisis” for Tesla due to the recent events surrounding the company.
Musk’s plea to employees regarding stocks is part of his efforts to stabilize stock prices and boost vehicle sales amid the ongoing challenges. Earlier this month, Musk stood alongside Trump in front of the White House to promote Tesla’s technological capabilities, with Trump expressing interest in purchasing the vehicles.
In conclusion, Musk reiterated his long-standing claims during the meeting, reassuring employees that Tesla vehicles would eventually be able to drive autonomously.
“I urge you to hold onto your stock,” Musk emphasized.
Global tech stocks took a hit on Monday as investors reacted to the emergence of a Chinese chatbot competitor, Deepseek, on Openai’s ChatGpt. This raised concerns about the long-term sustainability of the artificial intelligence boom in the US.
The NASDAQ index in New York, heavily weighted towards tech, dropped as investors processed the news about Deepseek’s latest AI model development.
Companies like Nvidia, valued at over $400 billion, saw significant losses in their market capitalization as shares plummeted. Other tech giants like Alphabet and Meta also experienced declines.
Deepseek’s AI assistant topped the charts on the Apple App Store in the US and UK, surpassing Openai’s ChatGpt.
Stocks of other US-based AI companies like Tesla, Meta, and Amazon also saw declines in early trading.
Deepseek’s claims about developing advanced AI models using fewer chips than competitors have raised doubts around the massive AI investments made by US companies in recent years.
The company utilized lower-powered chips from Nvidia to create its model, highlighting the potential limitations of US technology export bans on China.
Venture capitalist Marc Andreessen likened Deepseek’s achievement to a “Sputnik moment” in the AI industry, signaling a notable disruption.
Deepseek’s R1 model outperforms other leading models in various benchmarks, challenging the dominance of tech giants like Google and Meta.
Founded by entrepreneur Liang Wenfeng, Deepseek focuses on research rather than commercial products, aiming to make AI accessible and affordable to all.
Deepseek’s disruptive approach to AI has led to questions about the necessity of heavy investments in AI infrastructure and the supremacy of US tech companies in the field.
The pan-European Stoxx 600 and Asian tech stocks also took a hit, reflecting the global impact of Deepseek’s advancements.
Experts in the field acknowledge the significance of Deepseek’s breakthrough, highlighting the potential for innovation without the need for massive resources.
U.S. financial regulators have charged Elon Musk with allegedly threatening other shareholders by not disclosing his ownership of Twitter shares and then acquiring the company’s shares at artificially low prices.
The Securities and Exchange Commission (SEC) filed a lawsuit against Musk in federal court in Washington, D.C., accusing him of securities violations. The complaint states that Musk failed to disclose his 5% stake in the company in a timely manner and profited from the stock purchased after the filing deadline for ownership statements. The company ended up paying less than $1,000,000.
Musk purchased Twitter for $44 billion in 2022 and later rebranded the company as X. He acquired a 5% stake in the company before the purchase, which normally would require a public offering. The SEC claims that Musk disclosed his ownership on Twitter 11 days after the reporting deadline.
Musk’s lawyer, Alex Spiro, stated in an email that the SEC’s lawsuit is baseless, claiming that Musk did nothing wrong. This is not the first time Musk has been investigated by the SEC for his involvement with Twitter.
The SEC alleges that Musk delayed disclosing his ownership to the public and spent over $500 million on additional shares, potentially allowing the company to purchase stock at an artificially low price.
Despite Musk disclosing his ownership to the SEC 11 days later, he stated that he had acquired more than 9% of Twitter’s stock. The SEC noted that Twitter’s stock price rose by over 27% on that day.
During his time as owner of Facebook, Instagram, and WhatsApp, Nick Clegg reportedly made around $19 million from the sale of Meta shares. Filings show that before stepping down as president of Global Affairs and Communications, Clegg had sold shares worth $18.4 million.
Although his total salary at Meta has not been disclosed, he still owns approximately 39,000 shares of the company, valued at around $21 million at current prices. Joel Kaplan will succeed him as deputy, known for his conservative views and previous role in the George W. Bush administration.
Speculation surrounds Clegg’s next move after leaving Meta, with potential for a return to politics. He is considering opportunities in artificial intelligence, having criticized Rishi Sunak’s approach to AI regulation and aligning more with Tony Blair’s optimistic views on the technology’s potential.
Open to work opportunities in both public and private sectors, Clegg aims to return to London and remain in Europe in 2022. His wife, Miriam, has her own political ambitions and recently established a think tank in Spain.
Knighted in 2018 for his public service, Clegg faced criticism for joining Facebook later that year. Despite his previous advocacy against Brexit, Clegg’s tenure at Meta saw success amidst challenges of fake news and data protection.
In his Facebook post, Clegg reflects on his time at Meta, expressing pride in his work and the innovative approach he brought to the role. Despite his past political achievements and setbacks, Clegg remains optimistic about the future.
Looking ahead, Clegg’s next steps are uncertain, with possibilities in various sectors on the horizon. His departure from Meta marks a new chapter in his career, leaving a legacy of experience and impact in the digital landscape.
I
In the summer of 2020, amidst the disruption caused by the coronavirus pandemic on economies worldwide, an overlooked American software company made a bold decision to diversify. MicroStrategy, located near a shopping mall and subway station in Tysons Corner, Virginia, felt that its traditional “software-as-a-service” business was not daring enough.
Instead, the company announced its plans to broaden its horizons by investing up to $250 million in alternative assets, including stocks, bonds, commodities like gold, digital assets such as Bitcoin, and other types of assets.
Fast forward less than five years later, and the sideline in Bitcoin has propelled MicroStrategy to new heights. The company’s stock price has skyrocketed by 20 times, pushing its market capitalization to nearly $75 billion, with its stock entering the Nasdaq 100 index of leading technology companies.
Co-founder and chairman Michael Saylor took a risk to embrace digital currencies after Donald Trump’s election victory, despite concerns about potential threats from volatile crypto prices. MicroStrategy has now become a preferred choice among UK investors as the token’s value has surged.
Saylor’s strategic vision transformed the company into the world’s first “Bitcoin treasury company.” MicroStrategy’s relentless pursuit involves a cycle where issuing bonds to purchase Bitcoin drives up MSTR stock prices, leading to more bond offerings to acquire additional Bitcoin.
Interestingly, Saylor likened Bitcoin to Manhattan real estate in 1650 and emphasized the company’s commitment to quarterly Bitcoin acquisitions.
Critics argue that Manhattan real estate provides stable rental income and potential property value appreciation. However, Saylor focuses on BTC yield, a key metric tracked by MicroStrategy to monitor the ratio of Bitcoin holdings to the company’s stock.
While some may feel they missed the boat with Bitcoin reaching $100,000 in December, Saylor confidently stated that he would buy $1 billion worth of Bitcoin daily even at that price.
Portfolio manager Michael Lebowitz criticized MicroStrategy for essentially “ripping off investors,” citing increased optimism about Bitcoin and heightened stock price volatility.
MicroStrategy’s financial results showed a decline in total revenue and a significant increase in net losses in the third quarter of 2024. Despite this, the company became the top stock choice for UK investors through Interactive Investor.
By the end of December, MicroStrategy had invested $27.9 billion to acquire a total of 446,400 Bitcoins. This represented around 2% of the total Bitcoin supply and was valued at approximately $42 billion at that time.
This strategic approach significantly boosted MicroStrategy’s stock price by almost 400% in 2024, with Bitcoin’s value doubling within that year.
MicroStrategy’s inclusion in the Nasdaq 100 index was expected to accelerate the flywheel effect, as index-tracking ETFs would automatically purchase the company’s stock. This move was likened to Bitcoin entering the Nasdaq by industry analysts.
However, investors who bought in November might have witnessed a drop in value, as MicroStrategy’s stock price surged by 58% in November but declined over 20% in December.
In October, MicroStrategy unveiled plans to issue $21 billion in stock and bonds over the next three years to fund further Bitcoin acquisitions.
Shortly before Christmas, the company sought approval from shareholders to issue billions of additional shares, significantly increasing the number of Class A common stock.
MicroStrategy has become an attractive option for investors seeking exposure to Bitcoin without directly owning the cryptocurrency. Shares can be held through various accounts like Roth IRAs or ISAs.
Industry experts view MicroStrategy as a “Bitcoin agency,” catering to risk-tolerant investors seeking exposure to the cryptocurrency. The significant surge in Bitcoin prices, especially during specific periods, has further fueled interest in the company.
An essential component of MicroStrategy’s strategy involves issuing convertible debt with minimal or no interest payments. These instruments provide investors exposure to Bitcoin by converting into stock if the company’s value surges.
In December, MicroStrategy sold $3 billion in convertible notes without interest, convertible into stock at a premium above the stock price on the sale date.
Lebowitz cautioned that convertible note holders would profit only if the company’s stock price exceeds the conversion price upon maturity, potentially missing out on interest payments elsewhere.
MicroStrategy’s heavy reliance on Bitcoin holdings has led to the company being dubbed a leveraged Bitcoin holder, carrying significant risks in case of a market downturn.
Before embracing Bitcoin, Saylor faced a significant financial setback in 2000, losing billions of personal wealth in a day. MicroStrategy had to revise its earnings, leading to a steep decline in its stock price.
MicroStrategy is not alone in aspiring to benefit from the Bitcoin boom. Other players like Riot Platforms and Tesla have joined the trend, while Microsoft shareholders recently voted against adding Bitcoin to the company’s balance sheet.
Analysts have raised concerns about MicroStrategy’s vulnerability to Bitcoin price fluctuations, emphasizing the importance of Bitcoin’s sustained growth for the company’s success.
While Bitcoin enthusiasts believe in its resilience, the future of MicroStrategy’s strategy remains uncertain, particularly in the face of market volatility.
Shares in AI chip designer Nvidia have been falling overnight following reports that US authorities are stepping up an investigation into whether the company has violated competition laws.
The company’s shares fell 2.4% in after-hours trading, supplementing a fall of nearly 10% in regular trading, sending its market capitalisation down by $279bn (£212bn) to $2.6trn, the biggest one-day fall ever for a US company.
Bloomberg reported that overnight, the Department of Justice sent subpoenas to Nvidia and other tech companies, taking steps to legally compel recipients to hand over information.
Nvidia executives are said to be concerned that the company is making it difficult for customers to switch to other semiconductor suppliers and penalizing buyers that refuse to give them exclusive use of Nvidia’s AI chips.
The moves mark an intensification of the U.S. antitrust investigation and bring the government one step closer to filing formal charges against Nvidia.
Tuesday’s sell-off came amid a market-wide sell-off sparked by weak U.S. manufacturing data that raised broader concerns among investors about the outlook for the U.S. economy. Manufacturing contracted at a moderate pace in August, with new orders, production and employment levels declining, according to the Institute for Supply Management’s monthly survey of factories.
That sent the S&P 500 down more than 2%, while the tech-heavy Nasdaq Composite Index fell nearly 3.3%. Uncertainty spread to Asia, where Japan’s Nikkei fell 4.2% on Wednesday and Australia’s S&P/ASX 200 index fell 1.9%.
This has exacerbated recent volatile trading for Nvidia and other AI-related stocks, including Google, Apple and Amazon, as investors worry that the real impact — and tangible benefits — of the much-touted AI revolution may still be a long way off.
Founded in 1993, Nvidia primarily designed chips for video games, but during the cryptocurrency boom it realized its processing technology could be used to mine digital coins. Since then, the company has shifted its focus to artificial intelligence, riding a new wave of excitement about the potential of large-scale language models.
The company last week reported a 122% increase in second-quarter revenue, but signs of slowing growth, especially around its next-generation AI chip, code-named “Blackwell,” have spooked investors.
An Nvidia spokesman said: “We win on merit, as reflected in our benchmark results and value to customers, so they can choose the solution that’s best for them.”
In its latest quarterly earnings report, Microsoft exceeded analysts’ expectations by reporting a 15% increase in revenue year over year on Tuesday. However, growth in Azure, the company’s flagship cloud-computing service, fell short, leading to a 7% drop in Microsoft shares during after-hours trading.
Expectations for solid growth in the fourth-quarter earnings report were high, especially driven by cloud services with predicted revenue growth of 29%, which was expected to be between 30% and 31%. This led to a decline in stock prices for major technology companies due to recent market challenges.
During the Microsoft Earnings Report, CEO Satya Nadella aimed to instill confidence in the company’s performance.
Nadella stated in the earnings call, “This year’s strong performance demonstrates our innovation and the ongoing trust our customers have in Microsoft. As a platform company, we prioritize meeting our customers’ mission-critical needs at scale while leading in the AI era.”
Microsoft’s significant investments in artificial intelligence in recent years reflect a strategic move to dominate the tech industry with AI-enabled services. Backing ChatGPT developer OpenAI solidifies Microsoft’s position as a key player in commercializing generative AI.
Despite the growing questions surrounding the revenue potential of big tech companies’ pivot to AI, other factors like speculation about a Federal Reserve rate cut have helped calm investors as enthusiasm for big tech fades after a period of rising stock prices driven by AI optimism.
Microsoft faced challenges this month amid a global technology outage caused by a flawed software update from cybersecurity firm CrowdStrike affecting Windows systems. An unrelated outage on Microsoft’s Azure cloud service on Tuesday also caused network connectivity issues in multiple countries.
After the earnings release, Tesla stock plummeted by 10% in after-hours trading on Tuesday. This was despite missing Q1 2024 sales, having sharply lower profits, and recalling the recently launched $100,000 Cybertruck, which had seen a recent rise.
The electric vehicle maker’s revenue stood at $21.3 billion, slightly below expectations of $21.48 billion and down by 9% from a year ago, marking the largest decline since 2012. Profits were reported at $1.1 billion, a 55% drop from the first quarter of 2023, the company announced.
Despite the disappointing figures, the report also included upbeat news for investors. This included a preview of a ride-hailing app set to be integrated into Tesla products. The company revealed plans to bring new vehicle models to the market sooner than anticipated, citing the development of its robotaxi network.
Over the past three months, Tesla has doubled its AI computing capacity (smart software complexity) and invested $1 billion in AI infrastructure during the same period.
Thomas Monteiro, senior analyst at the company, mentioned that Tuesday’s report and Tesla’s plans to accelerate the development of more affordable vehicles helped alleviate some concerns among investors. “This announcement suggests that Elon [Musk] may refocus on the EV giant, which is positive news for shareholders,” he stated.
The earnings report was Tesla’s second since the launch of the Cybertruck, its long-awaited electric pickup truck. It was also the first report after the vehicle’s recent recall. The company faced challenges with the futuristic steel car, including a voluntary recall due to reports of a loose accelerator pedal potentially causing vehicles to become stuck when driving at full speed. Despite this, the company did not directly address the recall in its earnings release.
Even without the Cybertruck issues, Tesla has a tough year ahead as it announced a 10% reduction in its global workforce, affecting approximately 14,000 jobs. The company also slashed prices globally over the weekend. The entry of Chinese electric car manufacturers into the market has added to Tesla’s struggles in recent quarters.
Tesla reported a decrease in car deliveries for the first time in four years in the last quarter. The company warned that the growth rate in car sales could be considerably lower compared to 2023.
Addressing concerns about his workload, Elon Musk stated during the earnings conference, “Tesla consumes the majority of my work time. I work every day. I will ensure that Tesla prospers.”
Former President Donald Trump’s social media company saw a 12% drop in shares on Monday due to a regulatory filing stating the potential sale of millions of additional shares. This resulted in a further decline in stock prices.
The filing revealed that 146.1 million shares of Trump Media & Technology Group could be sold, including 114.8 million owned by Trump himself. Additionally, 21.5 million shares could be sold through warrants issued during the company’s merger with Digital World Acquisition Corp.
Since its market debut on March 26, parent company Truth Social has seen a 60% decrease in stock price. Trump is currently unable to sell any of his shares due to a lock-up agreement until September, tying his wealth to the company’s value. If the price remains stable, he stands to make significant profits from the stock.
On the same day, Trump, the presumed 2024 Republican nominee, began a criminal trial in Manhattan facing 34 felony charges related to falsifying business records in connection to payments to Stormy Daniels. This marks the first criminal trial of a US president and is expected to continue for about six weeks.
Trump is currently under financial strain due to various legal battles over the past year, owing approximately $500 million from civil cases. Trump media has received support from some of his major political donors, providing a lifeline for him to pay off his debts.
Recently, Democratic advocacy groups urged Congress to investigate Trump Media due to suspicious activities. In early April, two Florida brothers pleaded guilty to insider trading linked to the social media company. Additionally, reports suggest that the company is relying on loans from a Russian-American businessman facing federal investigations for money laundering and insider trading.
Reddit is on the cusp of its highly-anticipated stock market debut, which is expected to be the largest IPO by a major social network in four years. The company’s financial performance was revealed in a filing with the Securities and Exchange Commission on Thursday, which also disclosed that OpenAI founder and CEO Sam Altman holds an 8.7% stake in the social media group, making him the largest shareholder.
Trading under the ticker symbol “RDDT” on the New York Stock Exchange, Reddit’s long-awaited listing (scheduled for March) is set to be the largest social media IPO since Pinterest went public in 2019.
The company has not yet determined the number of shares to be offered or the price range for the proposed offering, as stated in a statement by Reddit.
The IPO filing also revealed that Reddit experienced a loss of $90.8 million in 2023, despite a roughly 21% increase in revenue. The platform boasts 267.5 million weekly active users, over 100,000 active communities, and 1 billion total posts.
Advance Magazine Publishers holds the largest stake in the company at 30.1%, while Chinese multinational Tencent owns 11%.
The planned IPO comes nearly 20 years after Reddit’s launch and will be a significant event for the platform, which still lags behind other social media giants such as Facebook and Twitter. The filing also outlined Reddit’s unique plan to allow its most active users to buy stock at the IPO. Additionally, Reddit plans to reward certain users with shares through a tiered system based on their contributions to the platform.
Reddit was valued at $10 billion in a 2021 funding round, and it is anticipated that the company will aim for a similar valuation with its upcoming stock sale. It’s expected to ask to sell nearly 10% of its stock, as reported by Reuters.
Reddit also cited data licensing agreements as a source of revenue in its filing, disclosing a recent deal with Google worth $203 million. This deal, announced on Wednesday, will allow Reddit’s content to be used to train Google’s artificial intelligence (AI) models, generating approximately $60 million annually, as reported by Reuters.
The filing outlined Reddit’s belief that its growing platform data will become a key element in training large-scale language models and will also serve as an additional monetization channel for the company.
Reddit initially filed for an IPO in 2021 but postponed its public offering due to challenging economic conditions and poor performance among listed technology stocks. Morgan Stanley and Goldman Sachs have been named lead underwriters for the IPO, along with more than a dozen other banks.
Lyft performed well in the fourth quarter, exceeding profit expectations due to increased rides to stadiums and airports and significant cost savings.
However, the company’s stock price initially rose over 60% in after-hours trading, but most of those gains were erased after Lyft’s chief financial officer corrected a major error in its earnings report. The company had initially predicted growth of 500 basis points (5%) in 2024, but later announced that the actual growth rate was lower at 50 basis points (0.5%). In 2023, the stock price had risen by about 36%.
Lyft CEO David Risher acknowledged the mistake, saying in an interview the following day: bloomberg“Bad. This was a terrible error, but there was one zero.”
Lyft reported that stadium attendance increased over 35% from 2022, driven primarily by popular tours and sporting events. The company also highlighted improvements to airport transportation as contributing to its growth.
Under new leadership, Lyft implemented an aggressive restructuring plan last year, including staff cuts and the removal of management to pursue profitability. The company laid off 1,200 employees in April and reduced overall costs by 12%.
“We’re going to put more money into the bottom line because we can scale even further and keep costs flat,” Risher said.
Lyft also announced a new policy to pay drivers the difference if their income, after outside fees, is less than 70% of what a passenger pays. In addition, Lyft and Uber agreed to pay $328 million to a New York rideshare driver accused of withholding pay and benefits.
There are growing concerns about safety, job security, and the general fear of artificial intelligence with regard to self-driving cars. Lyft is addressing this by partnering with Motional to provide more than 100,000 self-driving rides across the United States.
Revenue for the quarter ended Dec. 31 was $1.22 billion, in line with analyst expectations. The company expects earnings before interest, taxes, depreciation, and amortization to be between $50 million and $55 million for the quarter, exceeding expectations of $46.3 million. Lyft’s fourth-quarter adjusted core profit was $66.6 million, also beating expectations of $56.2 million.
Sophie Alcorn is the founder of alcorn immigration law Silicon Valley and “California Law Firm of the Year for Entrepreneurial Immigration Services” at the 2019 Global Law Experts Awards. She connects people with opportunities to expand their businesses and lives.
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Sophie Alcorn, AttorneyAuthor and Founder of alcorn immigration law The Silicon Valley, California, resident attorney is an award-winning Immigration and Nationality Law certified attorney in the State Bar Board’s specialty area. Sophie is passionate about crossing borders, expanding opportunity and connecting the world through compassionate, forward-looking and professional immigration law. Connect with Sophie upon linkedin and twitter.
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Dear Sophie
I am currently working for my employer on an H-1B in the United States. I wanted to start my own company, but transferring an H-1B to a startup has many downsides for startup founders, including giving up control and capital. How has that changed now?
— Future Founder
Hey, future!
The future is now! Thank you for your entrepreneurial spirit and great questions. In October, the Department of Homeland Security (DHS) released a new report. proposed rule with the drawbacks removed H-1B The professional visa for startup founders you mentioned.
“If more entrepreneurs can obtain H-1B status to develop their businesses, the United States could benefit from the creation of jobs, new industries, and new opportunities,” the proposed rule states. It is being
After reading this column, I encourage you and others to speak up about this rule. DHS is accepting public comments on this rule until December 22, 2023. After the comment period ends, DHS will consider the comments, potentially modify the rule based on the comments, and issue a final rule and effective date. I hope to be in time for his next H-1B lottery in March.Comments can be submitted at the top proposed rule Select the “Submit a formal comment” link.
Comments must be in English. However, business owners and non-citizens are also eligible to comment. You can also post comments anonymously.
Maintain control and fairness
As you know, as with all work visas, the employer sponsor must submit the H-1B application on behalf of the employee. There is no self-sponsorship for work visas, and the H-1B is tied to the sponsoring employer and the job and location specified on the petition.
DHS’ proposed rule clarifications already provide founders with more freedom to grow their startups without any restrictions on capacity (and without the need for future regulations) by eliminating the need to reduce majority stakes in startups. It gives you flexibility. this point).
We knew it would happen, but stock trading platforms robin hood has finally opened in the UK, its first international market since debuting in the US more than a decade ago. Robinhood is giving early access to the app to those who join its waiting list from today, with plans to gradually roll it out to everyone across the UK in early 2024. The Menlo Park, California-based company began preparing to launch in the UK about five years ago, began recruiting locally and eventually launched a waiting list of users in late 2019. Then, it suddenly withdrew in mid-2020. The company didn’t actually provide a full explanation for the decision, only saying that “a lot has changed in recent months” and that it wants to focus on its U.S. business. In fact, the company is accused of misleading customers; Use cynical gamification strategies To lure inexperienced users into risky transactions. There is also I got hit a few times multi-million dollar fine that’s all System stopped and other misdemeanors. And tragically, 20-year-old student Alex Kearns died by suicide after first glance Misunderstanding negative balance of $730,000 to his Robinhood account and ultimately to the company. Settlement of a personal lawsuit brought by his family. Despite this, Robinhood became a publicly traded company in mid-2021. The company currently claims to have 23 million users in the country, but much of this growth was driven by boredom in the early days of lockdown as people were stuck at home, with monthly users at 11.7 million in December 2020. Six months later, the number had increased to more than 21 million. Remember meme stocks? Yes, Robinhood was the main protagonist of that whole affair. So what does this mean now that Robinhood is trying again to expand internationally? “We certainly learned from our last launch attempt and have grown and matured as a business to the level of 23 million customers, $87 billion in assets, and a publicly traded company.” Robin Sinclair Robinhood UK CEO explained to TechCrunch. “We have also built technology that allows us to scale up internationally.”
But much has changed elsewhere since Robinhood’s last launch attempt. A number of local companies are starting out and gaining traction, most notably the Richard Branson-backed Lightyear, which started by allowing British consumers to trade US stocks, before going on to support European users and stocks. expanded to. And then there’s Freetrade, where Sinclair was managing director for Europe before joining Robinhood this summer. Freetrade supports UK-based traders investing in US and European stocks and is preparing to expand Coming soon to Europe. It’s these young startups, rather than the old, dusty traditional financial services companies, that Robinhood will most likely go after first. hargreaves lansdowne. “Robinhood’s appeal in the U.S. has been to a younger, tech-savvy demographic seeking access to the stock market.” david blairCEO of a fintech consulting company 11FS And the co-sponsors are Fintech Insider Podcasthe told TechCrunch. “It is likely to appeal to a similar audience in the UK who have previously felt that stock market prices and access barriers are too high. We can see it targeting more investment savvy users, such as Hargreaves Lansdown users with large investment wallets.” Robinhood, for its part, has been buzzing about expanding into the UK for much of this year. The company announced its third quarter results this month. Confirmed The company plans to launch brokerage operations in the UK soon, followed by cryptocurrency trading in the European Union (EU) market. The first of these promises has now come true, allowing UK consumers to trade thousands of US stocks, including big names such as Apple, Amazon, Microsoft and Meta. Users can place trades during standard market hours. This is 9:30 AM to 4 PM Eastern Time (ET), or 2:30 PM to 9 PM UK Time.Outside of those hours, Robinhood 24 hour market Users call limit order It runs 24 hours a day, 5 days a week, from 1am Monday (UK time) to 1am Saturday, covering 150 different stocks. In addition, the company has American Depositary Receipts (ADR), customers can invest in foreign companies such as: please do not Traded on US stock exchanges. lessons learned Despite the small neo-broker boom since Robinhood’s aborted launch three years ago, Sinclair says his company is in a strong position to take advantage of a market that is still relatively nascent, and that the past 10 I believe we can rely on the experience we have accumulated over the years in the United States. “I think the UK is a great opportunity. In fact, the market hasn’t really disrupted yet,” Mr Sinclair said. “The look and feel is the same as before, traditional brokers dominate with high commissions, and that hasn’t changed. So the opportunity still exists. We have benefited from a mature platform, added many products and features, and learned from our 23 million customers.” While the company has faced intense scrutiny in the US for how it targets inexperienced traders, Robinhood is applying its lessons to the UK, offering in-app guides, tips, tutorials, data and market news. and provides tools for budding traders. Invest wisely without context-switching between multiple information sources. At least you won’t use up all your savings. “This is all about facilitating all the research and all the information for customers before they make a trade and bringing it together in one place so they can guide their investment strategy going forward,” Sinclair said. Ta. Robin Hood Education: image credits: Robin Hood What’s clear from all of this is that Robinhood is trying to get back on track after failing in its domestic market. For example, the company initially introduced 24/7 chat, email and phone support in the UK. But Blair said that despite recent efforts to improve its image at home, the company may still struggle to recover from recent controversies. “Robinhood experienced tremendous growth in the U.S. during the peak of COVID-19, when everyone was spending more time indoors and online,” Blair said. “They benefited from a wave of hype about their product and brand, but then they suffered a huge blow with the suicide of a 20-year-old customer and have never fully recovered since. Educating customers about the product Much has been written about Robinhood’s commitment to keeping customers’ funds safe in the stock market, and despite investing more in customer education through products and content, its reputation is perhaps not entirely clear. I haven’t recovered since.” But two years after going public, the most obvious way for Robinhood to grow is to enter new markets, and as one of the world’s major financial centers, it’s highly unlikely that the UK would make the first move. It stands to reason. “The UK is a very attractive market for fintech for a number of reasons: a strong and supportive regulator, a significant high net worth population that is passionate about fintech, a large pool of talent and potential partners and suppliers. “The whole picture of other fintechs and banks available as well,” Blair said. show me the money Robinhood promises commission-free trading and foreign exchange (FOREX) fees, and there are no account minimums (meaning users don’t have to deposit x amount to use the service). This all sounds great, but it begs one simple question. That’s how Robinhood makes money. In the United States, the Securities and Exchange Commission (SEC) criticized robinhood For misleading customers about the method of revenue. In fact, Robinhood is commission-free, but essentially accepts customer trades and sells them to large trading companies who execute the trades on the customer’s behalf. This is a process known as “Payment for Order Flow” (PFOF). Critics argue that Robinhood customers therefore receive inferior prices for their trades, that the “free trade” claim is nothing more than a marketing fantasy, and that investors themselves essentially become a commodity. But all this is not a problem for Robinhood’s entry into the UK.In fact, PFOF has been effectively banned in the UK since 2012, while the European Union (EU) Also introduces a ban on this practice This is expected to be in place by 2026. Elsewhere, Canada is similar. Forbidden PFOFas there is singaporeAustralia is moving in that direction. The SEC previously shown It is said that they may consider banning PFOF. retired from that position At this point. However, it is clear that the global regulatory environment…
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