- Investinq
- Posts
- šØš³ Alibaba Is Leading In AI?
šØš³ Alibaba Is Leading In AI?
+ Earnings From Broadcom, Hewlett Packard, Costco & Kroger

Good afternoon! Discord might be ready to level upāthis time on Wall Street. The online chat platform is reportedly in early talks with bankers about a potential IPO, setting the stage for one of the most anticipated public listings in tech. With a user base packed with gamers and retail traders, an offering could generate plenty of buzz, not to mention a much-needed boost for the sluggish IPO market.
If it does go public, Discord could take notes from Reddit, another online community hub that successfully navigated the IPO process. The company was last valued at $15 billion in 2021, and while Redditās stock has had a strong run since its debut, the real test will be whether Discord can turn its cult-like following into sustainable profits.
MARKETS

Stocks took another dive Thursday as tariff turmoil kept markets on edge. The S&P 500 slid 1.8%, the Dow shed 427 points, and the Nasdaq plunged 2.6%, officially entering correction territory.
A brief pop followed news that Canada and Mexico got a one-month tariff exemption, but the relief didnāt last. Investors shrugged off the concession, and by the closing bell, the sell-off was back in full swing.
STOCKS
Winners & Losers

Whatās up š
BJās Wholesale Club surged 12.23% after beating earnings expectations and outlining expansion plans. ( $BJ )
Burlington Stores climbed 8.74% as same-store sales exceeded forecasts and management offered a cautiously optimistic economic outlook. ($BURL )
Veeva Systems jumped 7.37% following a strong beat-and-raise earnings report. ( $VEEV )
Zscaler gained 2.9% after surpassing analyst estimates and issuing upbeat guidance for the coming quarter. ( $ZS )
Rigetti Computing rose 4.03% despite missing Wall Street expectations, as investor enthusiasm for quantum computing remained high. ( $RGTI )
Teladoc increased 4% on news that it signed a deal with Eli Lilly to offer weight-loss drug Zepbound to self-paying patients. ( $TDOC )
Whatās down š
Venture Global plummeted 36.1% after reporting a decline in revenue, disappointing early investors. ( $VG )
MongoDB tanked 26.94% despite an earnings beat, as weak forecasts for next quarter spooked investors. ( $MDB )
Grindr tumbled 16% following a wider-than-expected net loss for the full year. ( $GRND )
Hims & Hers Health dropped 15.9% after a Texas court ruled that there may no longer be a shortage of Zepboundās key ingredient. ( $HIMS )
Marvell Technology fell 19.8%, dragging down the semiconductor sector despite a modest earnings beat. ( $MRVL )
Nvidia lost 5.74%, ON Semiconductor fell 5.6%, and TSMC dropped 4.6% in sympathy with Marvellās weak outlook. ( $NVDA ) ( $ON ) ( $TSM )
Tesla declined 5.6% as momentum stocks continued to struggle. ( $TSLA )
Applovin sank 18.4%, while Palantir fell 10.73%, as investors pulled back from high-risk trades. ( $APP ) ( $PLTR )
AI
Alibaba Shares Soar After Chinese Tech Giant Unveils New DeepSeek Rival

China just went all-in on AI, and Wall Street is taking notes.
Alibaba sent shockwaves through the stock market after unveiling its latest AI reasoning model, QwQ-32B, a high-efficiency rival to OpenAI and DeepSeek. The news ignited a frenzyāAlibabaās Hong Kong shares spiked 8.4%, dragging Chinaās tech index up 5.4%, with Tencent and Kuaishou notching double-digit gains. Investors, it seems, arenāt just buying into Alibabaātheyāre buying into Chinaās AI dominance.
The AI Arms Race Is Heating Up
Chinaās tech giants are rolling out AI models at breakneck speed. Tencent just introduced its open-source video model Hunyuan, Kuaishou launched its own AI-driven platform, and Manus AI debuted a āgeneral AI agentā that claims to outperform OpenAIās DeepResearch. Meanwhile, Alibaba is pouring $53 billion into AI infrastructure over the next three years, betting big that its latest model will cement its place at the top.
Chinaās AI Push Is Government-BackedāAnd It Shows
Beijing isnāt just watching from the sidelinesāitās fueling the AI boom. At this weekās National Peopleās Congress, China doubled down on AI support, vowing to accelerate development in everything from intelligent manufacturing to large-scale AI models. The message? China isnāt playing catch-upāitās leading the charge. That backing is why Alibaba has added $153 billion in market value since January, as investors race to get ahead of whatās shaping up to be a government-fueled AI gold rush.
While China is firing on all cylinders, U.S. tech firms are struggling to keep pace. Meta and Amazon are pushing AI agent development, but Marvell Technologyās dismal earnings report highlighted growing concerns about Americaās ability to maintain its AI edge. Factor in tariffs that are pressuring U.S. tech firms, and the balance of power in AI suddenly looks a lot more competitive than Silicon Valley would like to admit.
Chinaās Not Just Catching UpāItās Taking the Lead: For years, Chinese tech companies were seen as playing second fiddle to their U.S. counterparts. But with Alibabaās AI breakthrough, government backing, and an aggressive investment spree, that narrative is shifting fast. It was thought that export control on chips sent to China would allow the US to maintain a 3-6 month lead in AI but this just shows itās anyoneās game.
NEWS
Market Movements

š Trump signs executive order establishing U.S. Bitcoin Reserve: President Trump signed an executive order creating a Strategic Bitcoin Reserve, funded exclusively with bitcoin seized in criminal and civil forfeiture cases. The order prohibits the sale of bitcoin from the reserve and mandates a full audit of federal digital asset holdings. The Treasury Department will also manage a separate U.S. Digital Asset Stockpile for other confiscated cryptocurrencies ($BTC).
ā ļø Stagflation fears rise as recession risks grow: The tariff-driven economic shock has investors bracing for a slowdown and 1980s-style stagflation. Oil prices fell for the third straight day, JPMorgan raised its recession risk forecast to 31%, and Goldman Sachs increased it to 23%. Markets now expect the Fed to cut rates in June, but tariffs complicate inflation control by acting as a supply shock.
š¬ Disney cuts jobs and shuts down FiveThirtyEight: As part of restructuring efforts, Disney is laying off 6% of its workforce across ABC News and Disney Entertainment Networks. The cuts include shutting down FiveThirtyEight, the data journalism site known for election analysis. Many employees learned about the layoffs through media reports before receiving official notice, fueling frustration.
š„ Walgreens to go private in $10B Sycamore deal: Walgreens Boots Alliance finalized and agreed on a $10 billion deal with Sycamore Partners to go private after nearly 100 years as a public company. The deal includes all Walgreens businesses, including its specialty pharmacy unit and pharmacy benefit manager. Walgreens shares climbed over 5% in after-hours trading following the announcement ($WBA).
š® Yum! Brands invests $1B in AI-powered restaurant tech: Yum! Brands is rolling out AI-enabled drive-throughs at 500 Taco Bell locations as part of a broader $1 billion AI investment. The company is also introducing an AI-powered restaurant coach to optimize operations across its chains, including KFC and Pizza Hut ($YUM).
š§ Meta to launch Llama 4 AI and standalone app: Meta will release Llama 4 AI, designed to enhance AI agents with improved reasoning capabilities. The company plans to launch a standalone Meta AI app in Q2 and will host its first LlamaCon AI conference on April 29. The move signals Metaās ambitions in enterprise AI and automation ($META).
šļø Macyās forecasts lower 2025 revenue amid store closures: Macyās saw a 1.1% drop in comparable store sales for Q4, though overall sales increased by 0.2%. The retailer projected 2025 revenue between $21 billion and $21.4 billion, down from $22.3 billion, citing store closures and soft consumer demand. Investors remain cautious about its long-term growth outlook ($M).
š Google tests AI Mode for real-time search results: Google is rolling out AI Overviews in Search and testing a new "AI Mode," which provides chatbot-driven responses using real-time web data. The experimental feature is available to Google One AI Premium subscribers and marks Google's latest push into AI-powered search ($GOOGL).
š® Amazon launches GameLift Streams for cloud gaming: Amazon Web Services unveiled GameLift Streams, a cloud-based game streaming service for publishers, supporting WebRTC-enabled devices like smart TVs and smartphones. Jackbox Games is among the early adopters, planning to launch an ad-supported game streaming platform this year. The service aims to rival Microsoftās Xbox Cloud Gaming and Nvidiaās GeForce Now ($AMZN, $NVDA, $MSFT).
AI
Echelon Earnings From Broadcom, Hewlett Packard, Costco & Kroger

Broadcom skyrocketed 12.82% after proving that AI is still the golden ticket. Revenue from its AI business surged 77% year-over-year, and the company upped its outlook thanks to strong demand for custom AI chips. CEO Hock Tan made it clear Broadcom doesnāt waste time on small-time customersāonly hyperscalers need apply. ($AVGO)
Hewlett Packard Enterprise took a 20.21% nosedive after weak guidance and a cost-cutting plan that includes axing 2,500 employees. The company blamed aggressive discounting in the traditional server market and a stockpile of AI inventory that didnāt move fast enough. Investors werenāt buying the āweāll do better next timeā pitch, sending shares to their worst day in years. ($HPE)
Costco slipped 1.23% after falling short on earnings, with higher supply chain costs and inflation taking a bite out of profits. Shoppers are still spending, but theyāre getting pickierāsplurging on fancy steak while hunting for deals elsewhere. With tariffs on the horizon, Costco is bracing for potential price hikes, though management says itās doing everything possible to keep bulk-buyers happy. ($COST)
Kroger jumped 2% after delivering a strong sales forecast, but all eyes were on the sudden departure of CEO Rodney McMullen. The board gave few details beyond saying it wasnāt ābusiness-related,ā leaving investors to speculate. Meanwhile, Kroger is keeping a close eye on tariffs and rising food prices, but insists it's not expecting major sticker shock for shoppersāyet. ($KR)
Calendar
On The Horizon

Tomorrow
No blockbuster earnings on deck tomorrow, but thereās still plenty to watch across markets, policy, and tech.
Kicking things off, South by Southwest returns to Austin, bringing its usual mix of tech, media, and business heavyweights. The conference is known for spotlighting emerging trends, so expect a few headline-grabbing moments from startup founders, AI execs, and music industry disruptors.
Meanwhile, President Trumpās crypto summit begins, with investors hoping for clarity on his administrationās blockchain strategyāthough concerns are mounting after reports surfaced of a $21.5 million crypto buy by his World Liberty Financial project.
Then thereās the main event: the monthly jobs report. With the Fedās next policy meeting around the corner, this data drop could shape expectations on rate moves and recession fears. Economists predict 170,000 jobs added in February, but after weak ADP numbers and fresh layoff announcements, traders are bracing for surprises.
NEWS
The Daily Rundown

š U.S. cuts off intelligence sharing with Ukraine: The Biden-era intelligence-sharing pact with Ukraine has been suspended, cutting off critical data on Russian troop movements. The move follows Trumpās push for a peace deal that excluded Ukraine and a tense Oval Office meeting with President Zelensky. U.S. officials hinted the agreement could resume if Ukraine aligns with Washingtonās diplomatic efforts.
š° Digg plans an AI-powered comeback under new leadership: Digg, once a dominant news aggregator, is relaunching under founder Kevin Rose and Reddit co-founder Alexis Ohanian. The new platform will use AI for content curation, restore user voting, and combat misinformation. Invitations for the revamped site will roll out soon as Digg aims to reclaim its place in social media.
š Concert ticket prices surge as Gen Z takes on debt to see shows: The average price of a Top 100 tour ticket has jumped from $52 (adjusted for inflation) in 1996 to $136 in 2023, forcing some young fans into debt. Higher production costs, post-COVID demand, and dynamic pricing have driven up concert prices. Despite the expense, Gen Z and millennials continue to prioritize live events more than past generations.
š Sanctuary city mayors defend policies amid federal crackdown: The mayors of Boston, Chicago, Denver, and New York testified before Congress, pushing back against pressure to increase cooperation with immigration enforcement. They argued that limiting federal cooperation improves public safety by encouraging undocumented immigrants to report crimes. Republican lawmakers criticized the policies, while the mayors cited studies showing immigrants commit fewer crimes than native-born citizens.
š Trump grants auto industry a one-month tariff delay: One day after imposing 25% tariffs on Canada and Mexico, Trump announced a temporary exemption for automakers. Ford, General Motors, and Stellantis had warned that rising costs would cripple supply chains and push car prices up. While the pause gives them time to shift production, Canadaās Prime Minister Trudeau refuses to lift retaliatory tariffs without full U.S. removal.
š Trump administration plans deep job cuts at VA and IRS: The administration is eliminating 80,000 jobs at the Department of Veterans Affairs and slashing the IRS workforce by half as part of budget cuts. The New York Times reported the IRS layoffs remain unscheduled, though tax season is in full swing. Meanwhile, the CDC has invited back 180 recently laid-off employees due to ongoing public health concerns.
š¢ Government quietly reverses course on federal building sales: The General Services Administration (GSA) listed 443 properties for sale, including the FBI headquarters, but later removed 100 from the list. The revised list still includes Social Security Administration and Medicare buildings, part of Elon Muskās Department of Government Efficiency (DOGE) cost-cutting plans. While the GSA expects $430 million in savings, experts warn it could destabilize commercial real estate.
š Private equity firms see first asset decline in two decades: Assets under management at private equity firms fell 2% in 2024 to $4.7 trillion, marking the first drop since Bain & Co. began tracking the industry in 2005. PE firms are stuck with a $3 trillion backlog of aging deals they canāt sell, causing investors to pull back. Bain found that while PE funds have doubled assets since 2019, their ability to offload investments has stalled.
šŗšø U.S. enters direct negotiations with Hamas for the first time: The U.S. has begun direct talks with Hamas as ceasefire efforts with Israel face setbacks. Washington has historically avoided engaging with Hamas, which it designates as a terrorist organization. Trump issued an ultimatum demanding the release of hostages, while Hamas accused the U.S. of emboldening Israel to abandon the ceasefire.
š©šŖ Germanyās incoming chancellor unveils ā¬500B defense and infrastructure plan: Friedrich Merz, Germanyās next chancellor, has proposed a massive investment package to modernize the countryās military, energy, and transportation. The plan marks a shift from Germanyās traditionally conservative fiscal policy and aims to stimulate domestic demand. If implemented, it could reshape European economic strategies and strengthen regional security.
RESOURCES
The Federal Reserve Resource

Join our small yet growing subreddit š: https://www.reddit.com/r/investinq/
Wall Street Reads š (Best Books):
Stock Market Booksš
https://drive.google.com/file/d/1NQ-vdLE1afXFcc5PwDRp1d5VSHzDly88/view?usp=sharingOptions Trading Booksš https://drive.google.com/file/d/1xeYL3IpjT623CJpO_Ole1Z-GuzHQQJzg/view?usp=sharing
Business Books šhttps://drive.google.com/file/d/1VfuTqhPVB2YjDOd0N56UhF6kmZU-kLci/view?usp=sharing
Check out our latest issues šÆ: https://investinq.beehiiv.com