Skip to content 
In today’s edition,
- TitkTok’s US gamble
- AppLovin’s AI bet
- Tariffs and auto trade
- Strong Q4 by Coinbase
Market Snapshot
U.S. stocks climbed last week, with the Nasdaq up 1.82% to 20,026.77, the S&P 500 gaining 1.13% to 6,114.63, and the Dow rising 0.34% to 44,546.08. Growth stocks outperformed, while small-caps underperformed, trailing the S&P 500 by 146 basis points. The market’s best day came Thursday after Trump delayed new global tariffs, opting for further study before potential reciprocal tariffs by April 1.
Inflation data, however, raised concerns. January CPI rose 0.5% month-over-month and 3.0% year-over-year, while Core CPI doubled to 0.4%. The Producer Price Index (PPI) also rose 0.4%, exceeding expectations. Despite some cooling in key sectors, Fed Chair Powell signaled rates would stay restrictive, with rate cut expectations shifting from September to December.
Markets remain strong despite inflation pressures, with investors watching whether economic resilience can sustain the rally amid shifting Fed policy.
Stock market closing data for the week of Feb 10th to Feb 14th, 2025
News Summaries
Apple and Google restored TikTok to their app stores after U.S. Attorney General Pam Bondi assured them of no legal risks. This reversed an earlier ban linked to a law that required ByteDance to divest or shut down the app in the U.S. TikTok, with 170 million American users, remains key in tech regulation and geopolitics. President Trump, who paused enforcement through an executive order, is exploring deals with potential buyers like Oracle and Microsoft. However, the situation is still changing. Legal risks remain, and opposition in Congress may create challenges. For Apple and Google, reinstating TikTok is a balancing act between following regulations and business needs, especially as they face AI regulations and federal antitrust scrutiny. With Trump’s shifting position, tech companies must stay flexible. Any deal—or lack of one—could change digital competition in the U.S. The next steps will depend on whether a sale can happen in time or if delays keep the uncertainty going.
AppLovin has surged ninefold in a year. Shares are up nearly 38% in 2024. This growth is driven by a 44% jump in Q4 revenue to $1.37 billion and a 73% rise in ad revenue. The company’s AI-driven ad model is changing mobile gaming ads. It’s expanding beyond the industry and may unlock big e-commerce deals with Amazon and Walmart. With 1 billion daily mobile gamers, AppLovin uses user engagement data to improve ad targeting. This area has not been explored by TikTok or Meta. The company is focusing on advertising. It sold its game-development arm for $900 million to boost its AI-powered ad network. Analysts predict e-commerce advertising will make up 10% of revenue by 2025. This gives AppLovin a first-mover edge over competitors like Google and Unity.
President Trump’s plan to impose tariffs on imported vehicles threatens a $240 billion trade flow. German and South Korean automakers are among the most at risk. Last year, imports made up half of the U.S. auto market. Volkswagen (80%), Hyundai-Kia (65%), and Mercedes-Benz (63%) depend heavily on foreign production. In 2023, the U.S. imported 8 million new vehicles, mainly from Mexico and South Korea. This raises doubts about whether trade agreements with Canada and Mexico will shield them from new duties. A blanket tariff could disrupt North America’s tightly woven supply chains. Ford CEO Jim Farley warns of serious industry-wide consequences. If these tariffs go into effect, prices may rise. Automakers might shift production, and trade tensions could escalate. The key question remains: Will the benefits of protectionism outweigh the costs to consumers and the industry?
From the World of Crypto
Coinbase reported a strong Q4, with revenue surging to $2.27 billion—well above analyst estimates of $1.87 billion—while net income reached $1.29 billion ($4.68 per share).
A major driver was the resurgence of retail investors, as consumer transaction revenue hit $1.3 billion, up 179% sequentially. Nearly half of trading customers were either new to the platform or returning after a period of inactivity.
The company attributes part of this momentum to a more favorable regulatory outlook following Trump’s pro-crypto stance, suggesting the industry is entering “a new era.” Coinbase’s legal battle with the SEC is also shifting in its favor, with discovery in the case paused pending an appeal process.
Meanwhile, revenue from its partnership with Circle’s USDC stablecoin rose $172 million year-over-year, and despite the introduction of crypto ETFs, Coinbase has seen no signs of reduced trading activity.
Looking ahead, Coinbase expects Q1 subscription and services revenue to land between $685 million and $765 million, with sales and marketing expenses set to rise. The company has aggressively expanded spending—total operating expenses reached $1.2 billion, up 19%—but so far, higher costs have translated into growth.
With a $74 billion market cap and a 600% surge in shares over two years, Coinbase has capitalized on the crypto rebound after the industry’s 2022 turmoil.
But the key question remains: Can it sustain this momentum if market conditions shift again, or is this rally just another cycle in crypto’s boom-and-bust history? Only time will tell.
Community Speaks: Insights from Vested Investors
The Vested Community is actively discussing semiconductor stocks, ETFs, and AI-driven growth opportunities. Here’s what investors are watching:
📌 ASML’s Role in AI & Chipmaking
Investor Ousef_Zenith_633 is betting big on ASML, highlighting its EUV machines as a critical enabler of next-gen chip production for TSMC and Samsung. With AI demand surging, they believe ASML will dominate chip manufacturing, regardless of competition.
📌 SOXX ETF—Worth the Cost?
Investor Jaga_NR sees SOXX as a strong semiconductor ETF option but notes its higher expense ratio compared to other funds. While it offers broad exposure to the sector, cost-conscious investors may want to weigh alternatives.
Semiconductors are at the heart of AI, computing, and automation. Should investors pick individual winners like ASML or opt for diversified exposure through ETFs like SOXX? Join the discussion here: Vested Community 🚀
