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- 📈 The Great Apple Freakout
📈 The Great Apple Freakout
Meta backed Databricks raises $15B, Bain matches $1.92B offer for Insignia, Google commits another $1B to Anthropic, American Airlines shares tumble, Apple stock selloff continues
Good morning.
⚡ The Fast Five → Meta backed Databricks raises $15B, Bain matches $1.92B offer for Insignia, Google commits another $1B to Anthropic, American Airlines shares tumble, Apple stock selloff continues
🔎 Market Trends → S&P 500 hits record high with boost from Netflix results, AI investment plan; US Futures Flat Following Strong Session
And now…
⏱️ Your 5-minute briefing for Thursday, January 23, 2025:
MARKET BRIEF
Before the Open

As of market close 01/22/2025.
Pre-Market
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Fear & Greed

Markets in Review
Netflix Powers Nasdaq Past 20K as Tech Shines
The Nasdaq jumped 1.3% to close at 20,009.3, boosted by Netflix's post-earnings rally. The S&P 500 added 0.6% to 6,086.4, while the Dow climbed 0.3% to 44,156.7. Tech and communication services led the charge, while utilities lagged.
The Big Picture:
Netflix delivered a blockbuster quarter, with its record subscriber growth propelling tech stocks higher. The company’s latest price hikes and an expanding ad-tier strategy are expected to sustain top-line growth into the coming years.
Meanwhile, Nvidia and Microsoft also surged on the heels of AI collaboration news, underscoring the sector’s innovation-driven momentum. Investors remain optimistic that tech companies are well-positioned to ride the wave of artificial intelligence investments.
West Texas Intermediate crude oil slipped 0.6% to $75.39/barrel, while gold edged up 0.2% to $2,765.60/oz. Silver dropped 0.4%.
Market Movers:
Netflix (NFLX): Surged +9.7%, topping the S&P 500, after beating Wall Street expectations on record subscriber additions. Price increases and ad-tier strategies are expected to bolster growth.
Nvidia (NVDA): Rose +4.4%, the Dow's top performer, amid excitement over its role in Stargate, a $500 billion AI infrastructure venture.
Home Depot (HD): Fell -2%, the Dow’s worst performer, despite new partnerships with Uber and DoorDash for expanded one-hour delivery services.
Oracle (ORCL): Gained +6.8% after being named a key technology partner in the Stargate AI initiative.
What They’re Saying:
"Netflix’s execution continues to impress, particularly in growing its ad-tier strategy, which is set to become a substantial revenue driver," Wedbush Securities noted.
WHAT WE’RE WATCHING
Events
Today: Department of Labor - Unemployment Claims - 8:30am
Why You Should Care: Although it's generally viewed as a lagging indicator, the number of unemployed people is an important signal of overall economic health because consumer spending is highly correlated with labor-market conditions. Unemployment is also a major consideration for those steering the country's monetary policy.
Today: White House - President Trump Speaks - 11:00am
Why You Should Care: US President Jan 2017 - Jan 2021 and Jan 2025 - Jan 2029. He speaks frequently on a broad range of subjects - only speeches that might have direct market impact are listed on the calendar.
Earnings Reports
Today: Texas Instruments, Elevance Health, McCormick & Company, American Airlines, Alaska Airlines, Intuitive Surgical, GE Aerospace, Union Pacific Railroad, Freeport-McMoRan
Tomorrow: American Express, Verizon, HCA Healthcare, NextEra Energy, Ericsson, Oppenheimer & Co.
MARKET BRIEF
Leading News
Apple's iPhone Panic Attack: Why Wall Street's China Fears Miss the Bigger AI Picture
Why it matters:
While Apple's stock swoon has sparked concerns about its China exposure, the broader story isn't about smartphones — it's about the company's ambitious push into artificial intelligence that could reshape how 1.5 billion people interact with technology.
Zoom Out:
The market's myopic focus on iPhone sales in China has created what behavioral economists call a "recency bias" — extrapolating short-term headwinds into a permanent decline. But Apple's $125 billion cash hoard and loyal ecosystem of 2 billion active devices tell a different story.
Nvidia (NVDA) may have briefly claimed the market cap crown, but Apple's steady 45% gross margins and upcoming AI initiatives suggest the coronation may be premature. History shows Apple tends to emerge stronger from these periodic crises of confidence.
Key Insights:
The China Factor: While Chinese market share has slipped, Apple's Services revenue grew 21% last quarter. Translation: The company is successfully morphing from a pure hardware play into a high-margin digital services powerhouse.
AI Awakening: Wedbush's prediction that 20% of humanity will access AI through Apple devices isn't just bullish — it's transformative. The iPhone 16's neural engine could make ChatGPT look like a calculator.
Follow the Money: With $1 trillion in expected share buybacks over the next 4 years, Apple is essentially putting a floor under its stock price while funding massive R&D investments.
Market Pulse:
"The last time Apple traded at these valuations was during the 2022 tech selloff — right before it rallied 50%," notes veteran tech analyst Dan Ives.
Bull’s Take:
Smart money is using this panic to accumulate shares at a 17x forward P/E — a bargain for what's essentially becoming the world's largest AI platform disguised as a phone company. The upcoming earnings report could mark the bottom.
Headlines
Meta backs data analytics firm Databricks as AI boom attracts investors (link)
Bain Matches CC Capital's Offer for Australia's Insignia Financial at $1.92 Billion (link)
Google agrees to new $1 billion investment in Anthropic (link)
Nvidia, tech stocks rally after Trump announces $500 billion Stargate AI project (link)
Oracle surges, chip stocks rise as Trump unveils $500 bln AI plan (link)
American Airlines shares tumble as outlook falls short (link)
CRYPTO
Fear & Greed

Headlines
DAILY SHARE
On the Socials

*Hat-tip to LibertyCappy
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