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📈 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

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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

  • Novo Nordisk's US-listed shares surged 8.5%.

  • Texas Instruments shares slid 7.5%, the worst performer on the S&P 500 and the Nasdaq.

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
Fear & Greed

 

Headlines

  • Bitcoin Steady Near $104K After Bank of Japan Delivers Hawkish Rate Hike (link)

  • TRUMP Token Frenzy Drives Solana Stablecoin Supply to $10B, Record DEX Volumes (link)

  • Nasdaq Files for In-Kind Redemptions for BlackRock Spot Bitcoin ETF (link)

DAILY SHARE
On the Socials

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