No Break for Bitcoin

No Break for Bitcoin

The stock market was closed for the Thanksgiving break on Thursday and will shut early today. Meanwhile, bitcoin was climbing back up in the direction of the $100,000 mark, which many traders anticipate it will soon reach, Bloomberg reported. It dipped earlier in the week after hitting an all-time high of $99,728 last Friday. The cryptocurrency has surged 40% since the US presidential election and has more than doubled in value this year.

FTC Tightens Screws on MSFT, UBER

Microsoft [MSFT] is under a US Federal Trade Commission (FTC) antitrust investigation into its practices in cloud computing, software licensing, cyber security and artificial intelligence (AI), Bloomberg reported. In parallel, Uber [UBER] is being probed by the FTC over its Uber One subscription plan, focusing on enrolment and cancellation procedures. Uber One, with over 25 million global subscribers, offers discounts on rides and deliveries for paying members. Both investigations are exemplary of increased regulatory scrutiny of big tech.

Japan Chip Stocks Pop 

Japanese semiconductor equipment makers surged as the US was reported to be considering easing restrictions on sales of chip equipment and AI memory semiconductors to China. Tokyo Electron [TOELF] soared 10%, its biggest rise since August, while Kokusai Electric [6525:T] jumped 23%. Towa [TOWCF] climbed 7.5% and SCREEN Holdings [DINRF] gained 9.6%, reflecting optimism among chip equipment makers over potential market access to China.

Will China Curbs Weigh on Lam Research?

In early November, US chipmaker Lam Research [LRCX] began shifting its supply chains away from China as the sector prepares for Donald Trump’s second term as US president. Despite the concerns weighing on LRCX stock over the past few weeks, Lam Research could have room to grow, especially if it can keep reducing its revenue exposure to China. OPTO examines the firm’s fundamentals, plus how it stacks up against prominent competitors.

Wolfe Recommends: Communications Stocks to Short

Wolfe Research highlighted stocks with potential dividend cuts in its ‘short screen stock ideas’ report, Seeking Alpha reported. Criteria included yields above 3.5%, net debt/EBITDA over 3.5x, payout ratios above 80%, or dividends exceeding 80% of free cash flow to equity. Within communication services, stocks on the list included Sirius XM [SIRI], with 50% debt maturing in 3 years; Nexstar [NXST], with 27%; Cogent Communications [CCOI], with 100%; Shutterstock [SSTK], with 2%; and Sinclair [SBGI], with 100%.

Major Loan for Chinese Data Center Operator

Bain Capital-owned [BCSF] Chindata Group [CD] is in talks with lenders for a $2.8bn, five-year loan, its largest financing to date. Proceeds would refinance existing debt and support expansion in Malaysia. Discussions are ongoing, and details may change, according to Bloomberg. This follows a $500m refinancing for the Chindata Malaysian unit in July, highlighting the significant capital required to expand data centers, and reflecting the growing demand for AI-related services in the region.

Robotics Firm Plummets on Error

Symbotic [SYM], a warehouse automation software firm backed by SoftBank [SFTBY], saw shares plummet over 33% after slashing its revenue forecast and disclosing accounting errors. The company, which went public in 2022 via a SPAC, identified issues in revenue recognition for the first nine months of 2024, delaying its annual report filing. Symbotic was identified by OPTO earlier this year as one of five robotics stocks to keep an eye on.