$500 Bil Stargate AI Project | LinkedIn Sued Over Customer Data | Stock Markets Mostly Higher Tracking Trump

Market Update

• Netflix shares up 14.9% premarket after price hikes and record subscriber gains.

• United Airlines shares climb 4% after earnings, outlook beat estimates.

• Apple stock falls 4%, gets two downgrades, China iPhone sales fall.

• Johnson & Johnson stock down nearly 3.5% despite beat on full-year, Q4 2024 earnings.

• Puma launches cost-cutting drive after 2024 net profit disappoints.

• Analyst downgrades Reddit stock to Neutral on balanced risk-reward profile.

• Italy's sparkling wine exports to US jumped in November ahead of possible tariffs.

• UK power prices spike as wind output hits lowest in years.

Nvidia, tech stocks rally after Trump announces $500 billion Stargate AI project

Massive AI Investment: President Donald Trump announced a $500 billion initiative named Project Stargate, which aims to build AI infrastructure and data centers in the US.

Tech Stocks Surge: Nvidia's shares rose more than 3% following the announcement, extending gains from previous days. Other tech stocks, including those of Microsoft, Oracle, and SoftBank, also saw significant upticks.

Key Players: The project involves prominent tech companies like OpenAI, Oracle, SoftBank, Microsoft, and NVIDIA as core technology partners. Nvidia and Arm will play crucial roles in designing the computing systems.

Strategic Significance: The investment is seen as a move by the US to maintain its leadership in AI technology. The project is expected to create thousands of jobs and establish significant AI infrastructure in the country. [Learn more]

Microsoft's LinkedIn sued for disclosing customer information to train AI models

Lawsuit Allegations: LinkedIn Premium customers have filed a class action lawsuit, claiming their private messages were shared with third parties without their consent for training generative AI models.

Privacy Setting Changes: In August 2024, LinkedIn introduced a privacy setting allowing users to disable or enable data sharing, but updated its privacy policy in September 2024 to include the data use for AI training discreetly.

Legal Action: The lawsuit, representing millions of LinkedIn Premium customers, seeks damages for breach of contract, violations of California's unfair competition law, and $1,000 per person for violating the federal Stored Communications Act.

Company Response: Microsoft and LinkedIn have not provided any comments on the lawsuit so far. [Learn more]

Stock markets mostly higher as they track Trump plans, earnings

Market Optimism: Optimism in global markets has reached Asia, with several countries experiencing positive gains in response to major tech investments.

Tech Sector Growth: The tech sector continues to see robust growth, particularly in nations like Japan and Taiwan, where companies are capitalizing on the boom in AI development.

Mixed Reactions: While markets in Sydney, Singapore, Wellington, and Manila saw gains, Hong Kong and Shanghai experienced declines due to concerns over potential new tariffs on China.

Trade Uncertainties: Investors remain cautious about potential tariffs on China and the impacts of Donald Trump's policies on global trade. [Learn more]

Trivia of the Day!

The national animal of Scotland is an unicorn.

Generative AI Photo of the Day!