💻 Dell Shares Pop

Good afternoon! A YouTube true crime channel racked up millions of views with gruesome murder stories—until viewers realized none of them were real. The videos, created by a user going by "Paul," were entirely AI-generated, using ChatGPT to script the crimes and AI tools to create images. One viral case about a secret affair-turned-murder in Colorado even led local journalists to investigate, only to find it never happened.

Paul claims his goal was to make people question their obsession with lurid crime stories, but YouTube wasn’t buying it. The platform removed his channel for violating its community guidelines, including policies on child safety.

MARKETS

• Stocks took a breather Friday, with the S&P 500 barely budging after a week packed with inflation drama and tariff headlines. The Dow dipped as investors locked in gains, while the Nasdaq managed to edge higher, closing out its best week of 2025.

• Despite the mixed finish, all three indexes notched weekly gains—1.5% for the S&P, 2.6% for the Nasdaq, and 0.5% for the Dow. With earnings season winding down, markets now turn to next week’s economic data to see if the rally still has room to run.

STOCKS
Winners & Losers

What’s up 📈

• WeRide skyrocketed 83.46% after Nvidia disclosed a $25 million stake in the Chinese self-driving tech company. ($WRD)

• DraftKings jumped 15.16% after raising the lower end of its full-year revenue forecast, offsetting a larger-than-expected Q4 loss. ($DKNG)

• Airbnb surged 14.45% after reporting better-than-expected Q4 earnings of $0.73 per share, beating estimates of $0.58. ($ABNB)

• Roku climbed 14.14% following a Q4 earnings beat, reporting a loss of $0.24 per share vs. the expected $0.40 loss. ($ROKU)

• Wynn Resorts gained 10.38% after posting strong Q4 earnings of $2.42 per share on revenue of $1.84B, beating forecasts. ($WYNN)

• Warner Music Group rose 3.39% after Citi upgraded the stock to buy, citing a valuation “far below” peers. ($WMG)

What’s down 📉

• Informatica plummeted 21.53% after missing Q4 revenue expectations and issuing weak forward guidance. ($INFA)

• GoDaddy tumbled 14.28% after providing softer-than-expected Q1 revenue guidance, forecasting $1.175B–$1.195B vs. $1.19B expected. ($GDDY)

• Twilio dropped 15.01% after issuing weaker-than-anticipated Q1 earnings guidance of $0.88–$0.93 per share, below the $0.99 expected. ($TWLO)

• DaVita fell 11.09% after missing earnings expectations and revealing that Berkshire Hathaway reduced its stake in the company. ($DVA)

• Applied Materials declined 8.18% despite a Q4 earnings beat, as weak revenue guidance overshadowed the results. ($AMAT)

• Coinbase slipped 7.98% despite beating Q4 earnings expectations with $4.68 per share, as investors worried about future revenue sustainability. ($COIN)

AI
Dell Shares Pop On Report Of $5 Billion Deal For AI Servers For Elon Musk’s xAI

Dell is riding the AI wave straight into Elon Musk’s playbook. The tech giant is finalizing a $5 billion deal to supply Musk’s xAI with high-powered AI servers, marking one of the biggest AI infrastructure deals yet. The servers, equipped with Nvidia’s latest GB200 GPUs, will be delivered this year to fuel xAI’s ambitious supercomputer project in Memphis. The deal cements Dell’s growing status as a top supplier in the AI arms race.

AI Servers: The New Gold Rush

Demand for AI hardware has exploded, with Dell, Super Micro, and HPE scrambling to supply the processing power behind AI models. Musk’s companies, including Tesla and xAI, are emerging as major customers, competing with tech giants like Microsoft and Meta for AI chips. Dell previously said it had deployed tens of thousands of GPUs for xAI, and this deal signals it’s looking to lock in an even bigger share of Musk’s AI build-out.

Wall Street Loves It

Investors wasted no time bidding up Dell’s stock, which jumped 6% on the news before ending the day up 3.74%. The company is already on track to ship over $10 billion in AI servers this fiscal year, with projections soaring to $14 billion next year. AI infrastructure has become a core growth driver for Dell, which reports earnings on Feb. 27, where AI server sales will be in the spotlight.

Musk’s AI Bet Keeps Growing

Musk isn’t just buying GPUs—he’s going all-in. xAI recently raised $6 billion, with reports suggesting it’s eyeing a $10 billion raise at a $75 billion valuation. Grok, xAI’s chatbot, is Musk’s answer to OpenAI’s ChatGPT, and with billions in AI hardware pouring into Memphis, he’s signaling that xAI isn’t just a side project—it’s central to his long-term vision.

NEWS
Market Movements

• 📱 Zuckerberg Shifts Meta’s Politics While Targeting Apple: Mark Zuckerberg’s pro-Trump pivot has unsettled Meta employees, with internal criticism reportedly being censored. At the same time, Zuckerberg is using his closer ties to Trump to push back against Apple, blaming its App Store rules for limiting Meta’s profits. In a recent interview, he claimed that Meta’s earnings could double if Apple stopped applying “random rules” ($META, $AAPL).

• 📱 TikTok Returns to App Stores After Trump Delays Ban: TikTok is back on Apple and Google app stores in the U.S. after President Trump extended the deadline for ByteDance to sell its U.S. assets. The delay provides TikTok with more time to negotiate potential buyers and regulatory compliance ($AAPL, $GOOGL).

• 🤖 Baidu and OpenAI Announce Free AI Chatbots: Baidu will make its AI chatbot Ernie free starting April 1, boosting its stock by 12%. OpenAI followed up with an announcement that GPT-5 will also be completely free, intensifying competition in the AI market ($BIDU).

• 🍏 Apple Teases New Product Launch on February 19: Apple CEO Tim Cook announced that the "newest member of the family" will be unveiled next week, fueling speculation about an updated iPhone SE or a new device. The announcement lifted Apple shares by 2% ($AAPL).

• 📺 YouTube TV May Lose Paramount Channels Over Contract Dispute: Paramount Global channels, including CBS and Comedy Central, could go dark on YouTube TV as contract negotiations stall. YouTube TV is offering affected users an $8 credit while talks continue ($GOOGL, $PARA).

• ✈️ Boeing Overhauls Factories to Boost 737 MAX Production: Boeing will shut down "shadow factories" used for rework and redirect skilled workers to speed up new aircraft assembly. The company aims to ramp up 737 MAX output to 38 jets per month and clear its backlog by midyear ($BA).

• 🥞 Denny’s to Close Up to 90 More Locations in 2025: Denny’s announced plans to shut down up to 90 more restaurants this year, bringing total closures to nearly 180 amid rising costs and declining sales. Shares plunged 25% on the news and are down 50% year over year ($DENN).

• ☕ Missouri Sues Starbucks Over DEI Initiatives: Missouri filed a lawsuit against Starbucks, alleging that its diversity hiring goals and mentorship programs violate anti-discrimination laws. The lawsuit claims these initiatives have led to slower service and increased costs ($SBUX).

• 🔋 BYD Acquires Lithium Mining Rights in Brazil: Chinese EV giant BYD has secured mineral rights in a lithium-rich region of Brazil, expanding into mining to secure critical battery materials. The sites are located near Atlas Lithium’s properties and BYD’s new EV plant.

MARKETS
Buffett Trims BofA, Holds Tight to Apple

Warren Buffett is still reshuffling his portfolio, but Apple remains his crown jewel. Berkshire Hathaway disclosed that it cut its Bank of America stake to 8.9% in Q4, offloading 117.5 million shares. Meanwhile, after slashing its Apple holdings earlier in 2024, Buffett left the iPhone maker untouched, keeping the $75 billion stake as Berkshire’s largest holding.

Banking Cuts, New Bets

BofA wasn’t the only financial stock on the chopping block—Berkshire slashed its Citigroup stake by 73% and trimmed its position in Capital One. However, Buffett didn’t sit on the sidelines entirely. Berkshire bought shares of SiriusXM and Occidental Petroleum while initiating a $1.2 billion position in Constellation Brands, the company behind Modelo and Corona.

Why the BofA Exit?

With BofA’s stake dropping below 10%, Berkshire is no longer required to disclose every trade in the stock, giving Buffett more flexibility. He first invested in BofA in 2011 with a sweet preferred stock deal, but rising interest rates and regulatory scrutiny may have made the banking sector less attractive. If Buffett is backing away from big banks, it’s worth asking—is he seeing something the rest of the market isn’t?

What’s Next?Buffett’s annual letter to shareholders drops later this month, and if history is any guide, he’ll have plenty to say about the economy, the market, and his next big bets. With Berkshire sitting on a mountain of $157 billion in cash, the Oracle of Omaha is clearly waiting for the right moment to pounce. The only question is whether he’s eyeing another blockbuster investment—or just patiently watching the market come to him, as he always does.

Calendar
On The Horizon

Next Week

It’s been a relentless start to the year, but at least markets get a breather with a long weekend for Presidents’ Day. Enjoy it—because next week is packed with economic data that could shake things up.

Tuesday kicks off with the Homebuilder’s Confidence Index, followed by housing starts and building permits on Wednesday. Thursday brings jobless claims and a fresh look at leading economic indicators, while Friday closes things out with existing home sales and flash PMI reports on manufacturing and services.

Earnings:

• Tuesday: Baidu ($BIDU), Medtronic ($MDT), Occidental Petroleum ($OXY), Arista Networks ($ANET), Devon Energy ($DVN).

• Wednesday: Carvana ($CVNA), Analog Devices ($ADI), Fiverr International ($FVRR), Wingstop ($WING), Imax ($IMAX), NerdWallet ($NRDS), Manchester United ($MANU), The Cheesecake Factory ($CAKE).

• Thursday: Walmart ($WMT), Alibaba ($BABA), Rivian Automotive ($RIVN), Dropbox ($DBX), Mercado Libre ($MELI), Wayfair ($W), Unity Software ($U), Bilibili ($BILI), Cheniere Energy ($LNG), TripAdvisor ($TRIP), Hasbro ($HAS), Texas Roadhouse ($TXRH), Birkenstock ($BIRK).

NEWS
The Daily Rundown

• 🌹 Miami Airport Handles Record Valentine’s Flower Imports: With Americans projected to spend $2.9 billion on Valentine’s Day flowers, Miami International Airport has processed over 1 billion imported stems this season. The hub handles 90% of fresh-cut flowers entering the U.S., mostly from Colombia and Ecuador. Inspectors are working around the clock to prevent pests and plant diseases from crossing the border.

• 📉 Amazon’s Return-to-Office Mandate Faces Desk Shortage: Amazon workers are back in offices, but not all of them have desks. A Wall Street Journal report revealed that some locations, including San Francisco, are short by at least 800 desks. In Austin, 2,000 employees are competing for 900 parking spots. The company has postponed in-office requirements at some locations as it scrambles to accommodate workers.

• 🚀 Blue Origin Cuts 10% of Workforce Amid Industry Challenges: Jeff Bezos’ space venture, Blue Origin, announced layoffs affecting 10% of its employees as the company realigns its strategy. The cuts reflect broader cost-cutting trends in the space industry as firms like SpaceX dominate government contracts and commercial launches.

• 📉 Trump Announces Reciprocal Tariffs, Set to Take Effect in April: President Trump has ordered federal agencies to study and update tariff policies, aiming to match the trade duties imposed on the U.S. by other countries. The move, set to roll out in April, targets nations like South Korea, India, and the EU, which Trump claims have unfair trade advantages. Economists warn that the tariffs could increase consumer costs and trigger retaliation from global trade partners.

• 🚗 Honda-Nissan Merger Talks Collapse Over Leadership Disputes: Merger negotiations between Honda and Nissan have fallen apart due to disagreements over management structure. Honda sought to make Nissan a subsidiary, a move Nissan resisted. The failed $60 billion deal leaves both automakers searching for strategies to compete in an increasingly tough market.

• 🌭 Nathan’s Famous Exploring Potential Sale: The iconic hot dog brand is reportedly considering a sale as it evaluates strategic options in the fast-food industry. Financial advisors are reviewing potential deals as the company looks to strengthen its market position. The move could bring major changes to a brand known for its Coney Island roots and famous eating contests.

• 🏛 RFK Jr. Confirmed as Health Secretary Despite Opposition: Robert F. Kennedy Jr. was confirmed as the Secretary of Health and Human Services in a 52–48 Senate vote, with Mitch McConnell as the only Republican to vote against him. Kennedy, a vocal critic of pharmaceutical companies and ultra-processed foods, has pledged to “Make America Healthy Again.” His confirmation is being closely watched by health agencies, vaccine manufacturers, and major food corporations.

• 📞 Zelensky Rejects Peace Deal Without Ukraine’s Involvement: Ukrainian President Volodymyr Zelensky pushed back against Trump’s suggestion that he would negotiate an end to the war with Putin, stating that Ukraine would not accept a settlement made without its participation. Trump has floated proposals that include redrawing Ukraine’s borders and blocking its NATO membership.

• ⚖️ U.S. Attorney Resigns After Refusing to Drop NYC Corruption Case: Acting U.S. Attorney Danielle Sassoon resigned after reportedly rejecting a directive from the Trump administration to dismiss corruption charges against NYC Mayor Eric Adams. The case’s dismissal was allegedly tied to securing Adams’ cooperation on immigration enforcement. The resignation has sparked debate over political interference in the justice system.

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