New Home for Chrome?

New Home for Chrome?

The US Justice Department plans to ask a judge to order Alphabet [GOOGL] to sell its Chrome browser, following a ruling that Google illegally monopolized the search market. The proposed measures include artificial intelligence-related (AI) oversight and Android operating system adjustments. Federal judge Amit Mehta may also impose data licensing rules, Bloomberg reported, potentially reshaping the search and AI industries. Initiated during Trump’s first administration and continued under Biden, the case is the most significant antitrust challenge since efforts to split Microsoft [MSFT] two decades ago.

Chinese Firms’ New AI Tactics

China’s largest tech companies, including Alibaba [BABA], ByteDance and Meituan [MPNGF], are expanding AI teams in Silicon Valley, according to the Financial Times, circumventing US export restrictions on Nvidia [NVDA] chips. The firms are targeting US talent to advance in generative AI and leveraging US-based data centers for AI chip access, which remains unrestricted to Chinese companies. This comes as Huawei’s ambitions to domestically produce AI chips have been stymied by export controls, Bloomberg detailed. 

DJT Targets Crypto Expansion

Donald Trump’s Trump Media and Technology Group (TMTG) [DJT], which operates Truth Social, is reportedly in advanced talks to acquire Bakkt [BKKT], a cryptocurrency trading platform owned by Intercontinental Exchange [ICE]. The deal is said to be structured as an all-share purchase, the Financial Times reported, leveraging TMTG’s $6bn equity valuation, despite modest revenues of $2.6m this year. Bakkt’s current market capitalization stands at $150m. This acquisition aligns with TMTG’s ambitions to diversify beyond social media into broader technological and financial ventures.

MARA Making Moves

Marathon Digital [MARA] has priced its $850m offering of 0.00% convertible senior notes due 2030, with underwriters having an option to purchase an additional $150m within 13 days. The offering, set to close on November 20, 2024, will fund the repurchase of some $212m in convertible notes due 2026, using $199m of the proceeds. This strategic financial move is aimed at optimizing the company’s debt structure. Adam Swick, Chief Growth Officer at Marathon, recently joined OPTO Sessions to discuss the company’s imperative to innovate.

Chinese ETFs: Record Outflows 

ETFs holding Chinese stocks continue to see record outflows as concerns about China’s growth outlook and potential new US tariffs under a Trump administration weigh on sentiment. The iShares China Large-Cap ETF [FXI] saw a record $984m in outflows last week, while the KraneShares CSI China Internet ETF [KWEB] lost $710m in the same period. In general, deflationary pressures and geopolitical tensions have turned markets increasingly cautious on Chinese stocks, amid uncertainty about future earnings prospects.

Wegovy Goes on Sale in China

Novo Nordisk [NVO] has introduced its weight-loss drug Wegovy in China after gaining approval in June, stealing a march on rival Eli Lilly [LLY] in the obesity treatment market. With over 180 million people living with obesity in China, Wegovy’s launch marks a key expansion. Priced at RMB1,400 for four injections, according to the BBC, it is significantly cheaper than in the US, though patients must cover the full cost as it is not included in China’s national healthcare insurance. Eli Lilly’s treatment has been approved but not yet launched. 

NIO Stock and XPEV Stock: New Markets Amid Tariff Fears

The share prices of Nio [NIO] and XPeng [XPEV] have tumbled in the wake of Donald Trump’s election win, even as both firms continue to post promising vehicle delivery figures. Expanding into new markets will likely be a key driver of growth for China’s electric vehicle makers if they are to accelerate their sales and minimize damage from proposed tariffs in both the US and the EU. To examine their long-term prospects, OPTO compares the fundamentals and performance of NIO and XPEV stock prior to their earnings releases this week.