Business and Finance News - 12.18.24

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Databricks secured $10 billion in financing, raising its valuation to $62 billion, up from $43 billion in 2023. The company plans to use the funds for employee liquidity, acquisitions, and global expansion, while expecting positive free cash flow with a $3 billion revenue run rate by January 2025. (CNBC)

Key Insight → Databricks' $62 billion valuation, fueled by $10 billion in financing, highlights growing investor confidence in AI-driven data platforms, reflecting a robust market for tools that clean, analyze, and operationalize data. This surge in value signals increased liquidity for employees, expansion opportunities abroad, and the potential for further acquisitions, intensifying competition in the enterprise data and AI space against rivals like Snowflake. For the larger market, Databricks' positive free cash flow and rapid revenue growth suggest that tech IPOs, particularly for companies innovating in AI and cloud services, may regain momentum after a prolonged lull.

The FTC has approved a rule requiring businesses to disclose the total price of hotel stays, vacation rentals, and live event tickets, including all fees, before checkout. Effective April 2025, the rule aims to eliminate hidden “junk fees,” ensuring pricing transparency and reducing unexpected costs for consumers. (The Verge)

Key Insight → The FTC’s ban on hidden junk fees is a significant win for consumers, ensuring transparency in hotel stays and live event ticket pricing by requiring upfront disclosure of total costs. This rule will save Americans both time and money, reducing frustration from unexpected charges at checkout. For the broader market, it pressures businesses to adopt clearer pricing practices, fostering fairer competition and building consumer trust.

Prometheum raised $20 million to expand its tokenized securities offerings, bringing its total funding to $64.3 million. The firm plans to launch an alternative trading system in Q1 2025 and expand its custodian services, aiming to drive institutional adoption of on-chain securities for improved capital efficiency. (Axios)

Key Insight → Prometheum’s $20 million raise highlights growing momentum for tokenized securities, which promise faster settlement times and improved capital efficiency for financial markets. This is significant as it paves the way for institutional adoption of blockchain technology while bridging traditional finance and decentralized finance. For the broader market, it signals increasing confidence in regulatory clarity and innovation opportunities in 2025.

TikTok has petitioned the U.S. Supreme Court to block a law requiring its Chinese parent, ByteDance, to divest the app by January 19 or face a ban, citing free speech concerns. The case highlights national security tensions and could impact 170 million U.S. users and broader foreign-owned tech platforms. (Reuters)

Key Insight → TikTok’s Supreme Court appeal to block a U.S. ban underscores the tension between national security concerns and free speech rights, impacting 170 million American users and the digital economy. The case highlights growing scrutiny of foreign-owned apps and could set a precedent for regulating platforms with ties to rival nations. For the broader market, a TikTok ban would disrupt advertisers, creators, and tech companies while signaling increased government control over global digital platforms.

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Here’s how the major indexes did yesterday:

• Dow Jones Industrial Average: 43,449.90 -267.58 (-0.61%)

• S&P 500: 6,050.61 -23.47 (-0.39%)

• Nasdaq Composite: 20,109.06 -64.83 (-0.32%)

• Russell 2000: 2,334.08 -27.91 (-1.18%)

Here’s how The Magnificent Seven did yesterday:

• Apple (AAPL) [3.832T]: 253.48 +2.44 (+0.97%)

• Microsoft (MSFT) [3.379T]: 454.46 +2.87 (+0.64%)

• Nvidia (NVDA) [3.193T]: 130.39 -1.61 (-1.22%)

• Amazon (AMZN) [2.431T]: 231.15 -1.78 (-0.76%)

• Alphabet (GOOGL) [2.392T]: 195.42 -1.24 (-0.63%)

• Meta Platforms (META) [1.564T]: 619.44 -4.80 (-0.77%)

• Tesla (TSLA) [1.54T]: 479.86 +16.84 (+3.64%)

Here’s how Bitcoin and Ethereum did yesterday:

• Bitcoin (BTC): $104,781.86 (8:00PM PST on 12/17/24)

• Ethereum (ETH): $3,851.80 (8:00PM PST on 12/17/24)