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- 📈 Perplexity AI's Novel TikTok Merger
📈 Perplexity AI's Novel TikTok Merger
Fed may drop bombshell on rates this week, DeepSeek challenging big U.S. Tech, Musk explores blockchain use for DOGE, Big Tech earnings in focus, Public-Private merger could sway ByteDance to "sell" U.S. TikTok
Good morning.
⚡ The Fast Five → Fed may drop bombshell on rates this week, DeepSeek challenging big U.S. Tech, Musk explores blockchain use for DOGE, Big Tech earnings in focus, Public-Private merger could sway ByteDance to "sell" U.S. TikTok
🔎 Market Trends → Wall St slips with mixed data and earnings ahead of Fed week; Futures subdued as investors pause; focus on data, Trump's policies
And now…
⏱️ Your 5-minute briefing for Monday, January 27, 2025:
MARKET BRIEF
Before the Open

As of market close 01/24/2025.
Pre-Market
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Fear & Greed

Markets in Review
Equity Markets Retreat Amid Inflation and Sentiment Jitters
The Nasdaq fell 0.5% to 19,954.3, while the Dow and the S&P 500 each dropped 0.3% to 44,424.3 and 6,101.2, respectively. Despite Friday's dip, all major indexes posted strong weekly gains.
The Big Picture:
Investors weighed a mixed bag of economic data, including declining consumer sentiment and rising inflation expectations, against optimism for 2025 policy tailwinds under President Trump.
The University of Michigan's survey revealed a shift in inflation expectations, dividing along party lines as uncertainty over tariffs looms. Meanwhile, private-sector output growth moderated, but existing home sales surged, reflecting resilience in consumer demand.
West Texas Intermediate crude oil was nearly flat, slipping 0.1% to $74.56/barrel. Gold climbed 0.4% to $2,777.30/oz, while silver added 0.7%.
Market Movers:
Texas Instruments (TXN) plunged 7.5% after issuing a cautious Q1 outlook, reflecting softening chip demand.
Microchip Technology (MCHP) slid 5.3%, as analysts trimmed price targets amid similar concerns.
NextEra Energy (NEE) jumped 5.2% after reaffirming its upbeat 2025 earnings outlook, signaling strength in renewable energy demand.
Novo Nordisk (NOVO_B) soared 8.5% after reporting promising early-stage trial results for its weight-loss drug, amycretin.
What They’re Saying:
"A combination of robust economic growth, a tight labor market, and elevated inflation expectations could keep the Fed on a more hawkish trajectory," said Chris Williamson, Chief Business Economist at S&P Global.
WHAT WE’RE WATCHING
Events
There are no events scheduled for today.
Earnings Reports
Today: AT&T, Nucor, PotlatchDeltic, Graco Inc., Alexandria Real Estate Equities, SoFi
Tomorrow: Starbucks, Boeing, General Motors, Kimberly-Clark, Logitech ,Royal Caribbean Cruises
MARKET BRIEF
Leading News
U.S. TikTok's Wild Card: AI Startup Floats Novel Public-Private Merger
Why it matters:
A David-vs-Goliath tech story just got spicier, as Perplexity AI proposes a groundbreaking structure that could reshape how America handles Chinese tech assets.
Zoom Out:
The AI search upstart that saw its valuation surge 18x to $9B in 2024 is making waves with an audacious plan to merge with TikTok's U.S. operations. But here's the twist: Uncle Sam could end up owning half the company.
Think of it as financial origami – folding together private innovation, social media might, and government oversight into something entirely new. The deal structure cleverly sidesteps ByteDance's resistance to an outright sale.
Key Insights:
Follow the money: The proposed "NewCo" would be valued at "well north of $50B" – a relative bargain considering TikTok's massive user base and Perplexity's AI capabilities. ($MSFT and $ORCL are watching closely)
The AI angle: This isn't just about short-form video – it's a chess move in the AI search wars. Perplexity is positioning itself to challenge both Google's search dominance and OpenAI's ChatGPT
Government innovation: The proposed 50% government stake post-IPO represents a novel approach to national security concerns – think NASA meets Silicon Valley
Market Pulse:
"This could create a new template for handling sensitive foreign tech assets," says a source familiar with the deal. "It's like getting a prenup with national security built in."
Bull’s Take:
Smart investors should watch this space carefully. If approved, this deal could create a unique investment vehicle combining social media monetization, AI capabilities, and government backing – a potentially powerful trilogy for long-term growth. While traditional M&A wisdom might raise eyebrows at this structure, sometimes the most lucrative opportunities come wrapped in unconventional packages. This could be Web3's coming-of-age moment in traditional markets.
Headlines
All About DeepSeek - The Chinese AI Startup Challenging The US Big Tech (link)
Musk exploring blockchain use in US government efficiency effort (link)
Big Tech earnings, a key Fed meeting, and Trump's first full week in office (link)
Fed officials may drop a bombshell on interest rates this week (link)
Meta to test ads on Threads in US and Japan (link)
Universal Music Group and Spotify strike new agreement (link)
CRYPTO
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