Business and Finance News - 2.6.25

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Skool Projekt Staff
February 06, 2025

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Good Morning, Students!

 

The Jurassic Park franchise proves that IP never dies with the release of the latest trailer for its seventh installment, Jurassic World Rebirth. Featuring new stars Scarlett Johansson, Mahershala Ali, and Jonathan Bailey, the film introduces a fresh story set five years after Jurassic World Dominion. As humanity grapples with the last remaining dinosaurs, a high-stakes mission takes an unexpected turn, leading to new dangers and long-hidden secrets. The adventure roars into theaters on July 2, 2025…

 

Now here’s a quick rundown of today’s stories:

(Insights in our Top Stories) 

 

  • Alphabet's $75 Billion AI Bet – Alphabet shares fell over 8% after a revenue miss and plans for massive AI-related capital expenditures raised investor concerns about profitability.

  • AMD's Data Center Struggles – Despite strong earnings, AMD shares dropped over 10% as data center sales fell short of expectations, reinforcing its uphill battle against Nvidia.

  • Disney’s Box Office Win, Streaming Loss – Moana 2 fueled Disney’s earnings beat, but subscriber losses at Disney+ and weaker domestic park revenue signaled challenges ahead. 

  • U.S.-China Trade Tensions & E-Commerce – The U.S. Postal Service resumed accepting packages from China, easing concerns for retailers like Amazon and Temu, but new tariffs may increase costs.

 

-Mr. Projekts

 

 

TOP STORIES

 

Key Insight → Alphabet’s sharp stock decline highlights investor concerns about the company’s rising capital expenditures and slowing growth in key advertising segments, even as overall revenue continues to expand. The massive $75 billion AI investment signals Alphabet’s aggressive push to stay competitive against rivals in the AI-driven market, but it also raises questions about short-term profitability and return on investment. This development underscores the broader shift in the tech industry, where companies are prioritizing AI infrastructure and cloud computing at the expense of immediate financial performance, reflecting the high stakes of the AI race.

 

Key Insight → AMD’s stock decline reflects investor disappointment with its data center sales, despite strong overall growth, signaling how critical AI-driven chip demand has become for market expectations. The shortfall suggests that while AMD is expanding in the AI sector, it is still playing catch-up to Nvidia, which dominates the market for high-performance AI chips. This development underscores the increasing pressure on semiconductor companies to not only grow but also exceed expectations in the rapidly evolving AI and cloud computing landscape, where even strong revenue gains can lead to stock declines if they fall short of market hopes.

 

Key Insight → Disney’s earnings beat underscores the company’s ability to leverage its blockbuster franchises like Moana 2 to drive strong revenue growth, even as other segments face challenges. However, the decline in Disney+ subscribers and the underperformance of domestic theme parks signal shifting consumer behaviors, with price-sensitive streaming customers and unpredictable external factors impacting traditional revenue streams. For the larger market, Disney’s performance highlights the ongoing battle in streaming, where profitability is becoming more important than pure subscriber growth, and reinforces the importance of strong intellectual property in a rapidly evolving entertainment landscape.

 

Key Insight → The U.S. Postal Service’s decision to resume accepting packages from China is significant because it temporarily alleviates disruptions for major e-commerce platforms like Amazon and Temu, which depend on low-cost imports. However, the broader implications of new tariffs and restrictions suggest increased costs for Chinese sellers and potential price hikes for U.S. consumers, reshaping the competitive landscape for online retail. This development highlights the growing tension in U.S.-China trade relations and signals that regulatory shifts in cross-border e-commerce could have lasting impacts on supply chains, pricing strategies, and market dynamics.

 

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THE MARKETS

Here’s how the major indexes did yesterday:

Here’s how The Magnificent Seven did yesterday:

Here’s how Bitcoin and Ethereum did yesterday:

Disclaimer: This content is not intended as financial guidance. The purpose of this newsletter is purely educational, and it should not be interpreted as an encouragement to engage in buying, selling, or making any financial decisions regarding assets. Exercise caution and conduct your own research before making any investment choices. 

 

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