Is the Smartphone Market on the Mend?

Is the Smartphone Market on the Mend?

Qualcomm [QCOM] and Arm [ARM], both key players in the smartphone chip market, reported earnings Wednesday that suggested the industry is recovering, reports Bloomberg. Both companies benefited from renewed consumer interest in premium handsets, especially in China, pushing their revenue and profits above analyst expectations. Diversification efforts, including Qualcomm’s automotive chip success and both companies’ advancements in artificial intelligence-driven (AI) computing, further supported the quarterly results.

Bitcoin Frenzy

President-elect Donald Trump’s pledge to place the US at the center of the digital asset industry is driving seismic changes in the crypto market. Bitcoin surged to an all-time high of $76,475, creating the widest performance gap to gold since 2022. BlackRock’s [BLK] iShares Bitcoin Trust ETF [IBIT], valued at $33bn, posted a record $4.1bn in trading volume, while the collective group of 12 US Bitcoin ETFs saw daily net inflows of $622m — the highest levels since their launch earlier this year.

Trump and Tech

After Donald Trump’s election win, leaders of Amazon [AMZN], Apple [AAPL], Alphabet [GOOGL], Meta [META] and Microsoft [MSFT] moved quickly to offer congratulations, in efforts to mend ties with the president-elect — as well as prominent supporter Elon Musk — according to the Financial Times. This shift marks a departure from their reserved stances in previous elections as tech firms anticipate a more favorable environment for business and regulatory relations under Trump’s administration, after Biden’s was marked by intensified scrutiny and antitrust actions.

AppLovin Surges on Earnings

The gaming stock [APP] reported robust Q3 2024 growth after close on Wednesday, with its AI-powered ad tech platform AXON driving a 66% year-over-year increase in its software platform segment. Following the earnings release, AppLovin shares surged 25% in post-market trading, bringing year-to-date gains to over 325%. The company posted adjusted EPS of $1.25, surpassing the $1.23 consensus, and revenue of $1.2bn, marking a 39% year-over-year rise, well above the estimated $1.13bn. Don’t miss OPTO’s deep dive into APP stock on the Foresight Substack channel.

How Trump’s China Tariffs Could Impact Asia

Donald Trump’s proposed tariffs on China could shift money flows in Asia’s equity markets, Bloomberg reported, with India and Japan emerging as favored alternatives. Morgan Stanley [MS] has reinforced its preference for Indian and Japanese stocks over China, noting India’s appeal as a manufacturing hub with lower exposure to global risks. Japanese equities are seen benefiting from a strong dollar, fueled by Trump’s pro-growth policies, which could weaken the yen and boost Japan’s export sector.

Progress on Ford Nickel Plant in Indonesia

Zhejiang Huayou Cobalt Co [603799:SS], one of the world’s largest nickel producers, is seeking around $2.7bn in financing for a Ford-backed [F] battery-nickel project in Indonesia, with HSBC Holdings [HSBC] and Standard Chartered [SCBFF] arranging the loan and inviting other banks to participate. The facility, developed alongside Ford and PT Vale Indonesia [PTNDF], aims to produce battery-grade nickel for electric vehicles (EVs). Indonesia, which dominates over half of global nickel production, has actively pursued foreign investment into its EV supply chain.

This Fintech is Up Almost 50% in 12 Months

SoFi [SOFI] began as a social alternative to student loan issuance, but has since broadened out into mortgages, personal loans, employee benefits, investing services and financial services, including a loan platform that connects pre-qualified borrowers to third party lenders. As a major disruptor in the field of fintech, it is no surprise that SoFi is a long-time favorite of Cathie Wood, Founder and Chief Investment Officer of ARK Invest. However, Wood has recently trimmed her position. OPTO asks why.