💵 Apple Earmarks Half A Trillion

Good afternoon! Bybit just suffered the largest crypto heist in history, with hackers siphoning off $1.5 billion from an Ethereum wallet. The exchange, which serves over 60 million users, insists customer funds are safe and has already processed over 350,000 withdrawal requests. Despite the reassurance, the massive breach has reignited concerns over crypto security.

In response, Bybit replenished its reserves within 72 hours and claims to maintain a 1:1 backing of user assets. The company framed the recovery as a testament to its resilience, though the incident has already pushed 2025’s crypto theft total dangerously close to record levels.

MARKETS

• Stocks wobbled Monday as investors braced for Nvidia’s earnings wednesday and weighed Trump’s tariff rhetoric. The S&P 500 slipped 0.5%, while the Nasdaq tumbled 1.2%, dragged down by weakness in tech names. The Dow managed a slight 0.1% gain, thanks to a boost from Nike, Boeing, and Travelers.

• Markets started strong but lost steam after Trump reaffirmed plans to move forward with tariffs on Canada and Mexico. With Nvidia’s report looming and trade tensions resurfacing, traders weren’t in a rush to buy the dip.

STOCKS
Winners & Losers

What’s up 📈

• Freshpet climbed 7.3% following a Jefferies upgrade to buy, with analysts projecting a 50% upside for the stock. ($FRPT)

• Nike gained 4.94% after Jefferies upgraded the stock to buy, calling it a strong turnaround investment. ($NKE)

• Coty gained 4.9% after Piper Sandler lowered its price target from $9 to $8, making it appear more achievable to investors. ($COTY)

• Berkshire Hathaway jumped 4.11% after reporting a 71% surge in Q4 operating profit, led by a 302% jump in insurance underwriting. ($BRK.B)

• Sweetgreen rose 3.57% ahead of its upcoming earnings report this week. ($SG)

What’s down 📉

• Palantir Technologies fell 10.53%, extending its recent losses amid concerns about U.S. defense budget cuts impacting the company. ($PLTR)

• Alibaba tumbled 10.23% after announcing a massive $52 billion investment in AI and cloud infrastructure over the next three years. ($BABA)

• Rivian Automotive slid 7.79% after a Bank of America downgrade, with analysts citing concerns over EV demand and uncertain U.S. incentives. ($RIVN)

• Constellation Energy shed 5.88% as concerns over Microsoft’s canceled U.S. data center leases pressured power company stocks. ($CEG)

• Vistra declined 5.11%, while Talen Energy dipped 1.35% and GE Vernova pulled back 3.65% each, following a TD Cowen report on Microsoft’s reduced data center footprint. ($VST, $TLN, $GEV)

TECH
Apple Earmarks $500 Billion for U.S. Expansion

Apple is going all in on U.S. expansion, announcing a $500 billion investment over the next four years. The highlight? A 250,000-square-foot factory in Houston to manufacture servers for Apple Intelligence, the company’s AI system. It’s also hiring 20,000 workers and expanding its U.S. chip production, doubling down on domestic manufacturing while navigating mounting political pressure.

AI, Chips, and a Texas-Sized Investment

Apple’s Texas factory, set to open in 2026, will power its AI ambitions, but that’s just part of the plan. The company is pumping billions into U.S.-made silicon, expanding data centers in five states, and launching a manufacturing academy in Michigan to train the next wave of tech workers. While Apple still relies heavily on China, this move suggests it’s looking for ways to diversify its supply chain—and maybe dodge some tariffs along the way.

Victory Lap

Apple’s big reveal comes right after Tim Cook’s meeting with President Trump, who wasted no time taking credit for the investment. With Trump’s latest 10% tariffs on Chinese imports, Apple is under pressure to shift production stateside. Cook previously convinced Trump to spare iPhones from tariffs, and this expansion could be another strategic play to keep the White House happy.

The Big Picture: Apple’s move isn’t just about tariffs—it’s about future-proofing its AI ecosystem. The company needs massive server capacity to keep up with the AI arms race, and bringing production home could help stabilize supply chains. Whether this is a true shift toward American manufacturing or just savvy politics, one thing’s clear: Apple is making big bets on U.S. tech infrastructure.

NEWS
Market Movements

• 📉 Hims & Hers Stock Falls 18% as Margin Miss Sparks GLP-1 Concerns: Despite beating earnings and revenue estimates, Hims & Hers shares tumbled after reporting a lower-than-expected gross margin of 77%. The stock had already dropped 26% on Friday after the FDA declared the semaglutide shortage over, raising concerns about future demand for compounded alternatives. ($HIMS)

• ☕ Starbucks to Lay Off 1,100 Corporate Workers Amid Slowing Sales: Starbucks is cutting 1,100 corporate jobs as part of CEO Brian Niccol’s efforts to streamline operations. The layoffs come after four straight quarters of same-store sales declines, with customers turning to cheaper alternatives. ($SBUX)

• 🚗 Tesla Prepares to Launch Full Self-Driving in China: Tesla is rolling out a software update to introduce Full Self-Driving (FSD) capabilities in China. The update will allow Tesla vehicles to recognize traffic signals, make turns, and change lanes, though regulatory approval remains a hurdle. ($TSLA)

• ☁️ Salesforce and Google Ink $2.5B Cloud AI Deal: Salesforce signed a seven-year, $2.5 billion deal with Google to expand its AI and cloud offerings. The partnership will allow Salesforce customers to run AI tools like Agentforce on Google Cloud, countering Microsoft’s dominance in the space. ($CRM, $GOOGL, $MSFT)

• 🤖 Anthropic Unveils Its Most Advanced AI Model Yet: Anthropic launched Claude 3.7 Sonnet, its latest AI model, which blends real-time responses with deeper reasoning. The hybrid model is designed to compete with OpenAI’s ChatGPT and Google’s Gemini as AI competition intensifies. ($AMZN)

• 🤖 Alibaba to Invest $52.4B in AI and Cloud Computing: Alibaba announced a $52.4 billion investment in AI and cloud computing over the next three years, surpassing its spending in the sector over the past decade. The move strengthens its position in China’s AI race, with its stock up 68% year-to-date. ($BABA)

• 📺 Disney-Warner Streaming Bundle Retains 80% of Subscribers: The Disney+, Hulu, and Max bundle has maintained 80% of its subscribers after three months, outperforming Netflix and other standalone services. The $16.99/month ad-supported plan has attracted 2.2 million subscribers. ($DIS, $WBD, $NFLX)

• 📈 SEC Drops Investigation Into Robinhood’s Crypto Unit: The SEC has shelved its probe into Robinhood’s crypto business, providing relief to the trading platform. Robinhood shares have surged 38% year-to-date following the news. ($HOOD)

• 💊 Amgen to Invest $200M in India for AI-Driven Drug Development: Amgen announced a $200 million investment in a new technology center in India, focusing on AI and data science for drug development. The site is expected to employ 2,000 people by the end of the year. ($AMGN)

STOCK
Palantir Stock Selloff Intensifies

Palantir just hit a wall. The stock plunged 10.5% on Monday, capping off a brutal four-day sell-off that’s wiped out nearly 24% of its value. The trigger? U.S. defense budget cuts, an existential threat for a company that still leans heavily on government contracts.

The Pentagon’s Pullback

The biggest blow came from Defense Secretary Pete Hegseth, who plans to slash military spending by 8% over the next five years. That’s bad news for Palantir, which gets over 40% of its revenue from U.S. government contracts—with the U.S. Army alone accounting for 22% of that haul. While some optimists argue Palantir could benefit from a more cost-conscious Pentagon seeking efficiency, Wall Street isn’t buying it just yet.

Palantir’s Pricey Problem

Even after this dip, Palantir is still one of the most expensive tech stocks out there, trading at 170 times estimated earnings—a sky-high valuation that makes even AI darlings like Nvidia look reasonable. For context, the S&P 500’s tech sector trades at just 30x earnings, and Palantir is nearly twice as expensive as the next priciest name, CrowdStrike. That’s making it tough for investors to justify holding on, especially with CEO Alex Karp offloading shares and short sellers circling.

Where Does It Go From Here? Palantir remains one of the top-performing Nasdaq 100 stocks in 2025, up nearly 20% year-to-date, but that’s small comfort for those who bought near its all-time high earlier this month. Wedbush analysts believe the Pentagon won’t actually cut back on AI spending, arguing that Palantir’s unique software makes it indispensable.

Calendar
On The Horizon

Tomorrow

The week kicks off light on economic data, with the S&P Case-Shiller home price index dropping tomorrow. November’s report showed home prices climbing 3.8% annually, marking the 18th straight record high. With last week’s rough housing data still fresh, don’t expect economists to call a peak just yet.

Earnings could offer a silver lining, with reports rolling in from Home Depot ($HD), Intuit ($INTU), Cava ($CAVA), AMC ($AMC), Caesar’s Entertainment ($CZR), American Tower ($AMT), Workday ($WDAY), First Solar ($FSLR), and Viking Holdings ($VIK). Investors will be watching for any signals on consumer spending and corporate outlooks.

Before Market Open:

• Planet Fitness has muscled its way to a 59% gain over the past year, proving its resilience despite COVID disruptions and higher interest rates. A lean franchise model keeps costs in check, while the health-conscious crowd continues to fuel demand. But with weight-loss drugs shaking up the fitness industry, investors will be looking for management’s plan to keep gym memberships pumping. Consensus: $0.62 EPS, $323.77 million in revenue. ($PLNT)

• Krispy Kreme has been stuck in a sugar crash, with shares down 28% over the past year as sales have softened. The good news? A fresh partnership with McDonald’s ($MCD) to sell donuts nationwide could be a game-changer. Investors will also be eyeing how the sale of Insomnia Cookies impacts the bottom line when the company reports earnings. Consensus: $0.11 EPS, $421.27 million in revenue. ($DNUT)

NEWS
The Daily Rundown

• 📩 Federal Employees Asked to Show Their Work: Over the weekend, Elon Musk announced that all federal workers would receive an email requesting a report on their accomplishments from the previous week. The email, sent by the U.S. Office of Personnel Management, asked for five completed tasks by Monday night. While Musk implied that failing to respond would be treated as a resignation, the official email did not mention termination. Some agencies, including the FBI and the Department of Defense, have paused responses, while union leaders are advising workers not to comply. As the deadline approaches, legal challenges are expected.

• 🛫 Bomb Threat Forces American Airlines Flight to Divert to Rome: A New York-to-New Delhi flight was diverted to Rome after a bomb threat was received mid-air. Italian fighter jets escorted the plane to safety, but inspections found no explosives. This is the latest in a growing number of bomb threats affecting flights to and from India.

• 🇩🇪 Conservatives Prevail in Germany’s Election: Friedrich Merz’s center-right Christian Democratic Union (CDU) secured 28.6% of the vote, positioning him as Germany’s likely next chancellor. Merz aims to form a government within eight weeks, but coalition-building will be a challenge, as he has ruled out working with the far-right Alternative for Germany (AfD).

• 🇻🇦 Pope Francis in Critical Condition with Double Pneumonia: The Vatican confirmed that Pope Francis, 88, is in critical condition after experiencing a severe asthmatic crisis and early-stage kidney failure. Over the weekend, he received high-flow oxygen and platelet infusions but was reportedly “alert and well oriented.” Despite his condition, he attended Mass in his hospital suite alongside his medical team.

• 💰 Buffett on Record Tax Payment: ‘Spend It Wisely’: In his annual shareholder letter, Warren Buffett revealed that Berkshire Hathaway paid a record $26.8 billion in federal taxes last year—about 5% of all corporate tax payments in the U.S. The billionaire urged the government to “take care of the many who, for no fault of their own, get the short straws in life” and warned about rising fiscal deficits.

• 🔋 Zelensky Wants Better Terms for Rare Minerals Deal with U.S.: Ukrainian President Volodymyr Zelensky pushed back on a U.S. agreement granting access to Ukraine’s rare earth metals, titanium, and lithium, stating he doesn’t want future generations to bear the financial burden. He also reaffirmed that the $100 billion in U.S. aid was a grant, not a debt, and called for additional security guarantees.

• 🚨 IRS Warns Against ‘Ghost Tax Preparers’: The IRS estimates that $9.1 billion in tax fraud occurred last year, with some of it linked to “ghost preparers” who disappear after filing fraudulent returns. The agency is warning taxpayers to avoid preparers who lack a physical office or charge a percentage of refunds.

• 🏆 Academy Awards Wrap Up a Controversial Season on Sunday: The Oscars will air Sunday night, with first-time host Conan O’Brien taking the stage. This year’s awards season has been fraught with controversy, from campaign scandals to unexpected nominations. The show will start earlier than usual at 7 PM ET.

• 🔫 Hospital Hostage Situation in Pennsylvania Ends in Tragedy: A gunman stormed UPMC Memorial Hospital in York, Pennsylvania, taking medical staff hostage before being killed by law enforcement. Officer Andrew Duarte was fatally shot during the standoff, and five others were injured. Authorities believe the attacker was grieving the recent death of a loved one in the ICU.

• 📺 SAG Awards Recognize ‘Shōgun’ and ‘A Complete Unknown’: The Screen Actors Guild honored these two productions with multiple awards, highlighting the industry’s growing appreciation for diverse storytelling.

• 👶 OpenAI CEO Sam Altman Announces Birth of His Son: In personal news from the tech world, OpenAI CEO Sam Altman shared that he and his partner welcomed their first child over the weekend. The AI community responded with warm congratulations.

• 🥖 Panera Bread Visionary Ken Rosenthal Dies at 81: Ken Rosenthal, who founded the chain that later became Panera Bread, has passed away. His legacy includes revolutionizing the fast-casual dining industry with a focus on quality ingredients and a welcoming atmosphere.

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