Author

admin

Browsing

Alibaba stock price remains in a three-year consolidation. It has remained between the support and resistance levels at $56.50 and $121.37 since 2022 even as its biggest competitors in China like JD.com and Tencent have surged. Still, analysts are optimistic that the BABA stock price will go vertical soon. 

Peter Brandt is highly bullish on Alibaba stock price

Wall Street analysts are optmistic that the BABA stock price has more room to go. The average forecast is that the stock will jump to $120, up from the current $103. Some of the most overweight analysts on Alibaba are from companies like Barclays, Baird, and JPMorgan. 

Bank of America, Benchmark, and Jefferies have a buy rating. Most of these analysts believe that Alibaba share price is a big bargain and that it will bounce back in the coming years. They cite its strong market share across multiple sectors in China and the ongoing share repurchases that have led to a big jump in its earnings per share. 

Peter Brandt, a veteran trader and author, has maintained a highly bullish view of the BABA stock price, noting that it may double from here. In an X post, he said that the stock was one of the promising charts he had seen in a long time, and that it may surge to $200 next. He pointed to an ascending triangle pattern that has been forming in the past few months.

BABA stock technical analysis

The weekly chart shows that the Alibaba stock price bottomed at $56.50 in 2022 as Beijing tightened its screws on the company. Since then, it has remained above the ascending trendline that links the lowest levels since 2022. 

The stock has moved above the 50-week Exponential Moving Average (EMA), and is now attempting to flip the 200-week average. It is now nearing the crucial resistance level at $121.37, the upper side of the range.

There are signs that the Alibaba share price has moved into the accumulation phase of the wyckoff Theory, which is characterized by consolidation and sluggish volume. This phase is followed by the markup, where an asset has more demand and supply. 

Therefore, if this theory works out well, there are signs that it will bounce back and hit the 50% retracement point at $183, which is about 76% above the current level. A break above that price will bring the 61.8% retracement point into view. This retracement point at $212 is about 105% above the current level. A drop below the support level at $80 will invalidate the bullish BABA stock outlook. 

Read more: Buy Alibaba stock for a 50% return over the next twelve months: Loop Capital

Alibaba earnings ahead

The next important catalyst for Alibaba share price will be its earnings on February 20th. These numbers are expected to show that its revenue growth continued, with the quarterly figure coming in at 278b billion yuan, a 7% increase from the same period a year earlier.

Alibaba has a long record of beating analysts estimates, meaning that its revenue and earnings will likely be better than expectation.

A potential catalyst is its cloud and AI business, especially with rumors that it may invest in DeepSeek AI, a company that has disrupted the industry. Such a move would signal more growth ahead.

The company has also become a big player in the AI space, especially with the recent release of Qwen 2.5, which it believes is more advanced than DeepSeek. Therefore, with its American AI rivals surging, there is a likelihood that it too will soar in the coming months.

The post Alibaba stock price to double from here, veteran trader says appeared first on Invezz

On Holding stock has done well after bottoming at $15.6 in 2022. It has soared to $56, giving it a market cap of over $18 billion and making it one of the fastest-growing brands in the footwear and apparel industries. ON has done better than other popular brands like Nike, Adidas, and Under Armour. So, is ON a good investment?

On is a big disruptor in footwear and apparel

On Holding is one of the fastest-growing companies in the apparel and footwear industries as its revenue soared from $276 million in 2019 to over $2.55 billion in the trailing twelve months. 

It has done well as its brand has continued growing as its peers like Nike and Under Armor struggled. For example, it took advantage of Nike’s decision to scale back its presence in top retailers to gain market share. 

The most recent numbers showed that On Holding’s revenue rose by 32.3% in the third quarter to CHF 635.8 million. This growth was mainly due to its direct-to-consumer channel, which now accounts for about 38% of its total sales.

On has also achieved more, as its gross margins have continued growing and now sit at near 61%, a big number considering that Nike’s margin is 44%. Adidas has a gross margin of 49%, while Under Armour has 47%.

On Holding’s higher margin is due to the ongoing focus on the DTC and lack of discounts, as other companies have done.

The company’s growth happened because of the ongoing demand, especially after the Paris Olympics and its partnerships, including with Zendaya. This explains why the company boosted its guidance, as it expects its net sales growth to be about 32%, an impressive figure for a company that has been in business since 2010. 

Valuation and earnings ahead

The next key catalyst for the On Holding stock will be its financial results, which comes out in March. 

Analysts expect the data to show that the fourth-quarter revenue rose to $593 million, up by 33% from a year earlier. 

The annual revenue estimate is expected to be $2.3 billion, followed by $2.95 billion this year. That implies an annualized growth rate of 28.5% and 27.9%, respectively. 

On Holding has also become profitable as its EPS is expected to move to $0.8 from $0.35 in 2023. 

Many investors are concerned that On Holding, with a market cap of over $18 billion, is highly overvalued. In contrast, Under Armour, another large brand in the industry, is valued at over $3 billion.

Nike has a forward price-to-earnings ratio of 33.3, while On Holding has a multiple of 83.3. This valuation can be justified because of On’s strong revenue and profitability growth. 

Read more: On Holding stock is doing well; but does ONON have more upside?

On Holding stock price analysis

ON stock by TradingView

The daily chart shows that the ON stock price has been in a strong uptrend in the past few months. It has formed an ascending channel that connects the highest and lowest swings since December 23. 

The On Holding stock has retested the lower side of the rising channel and is above the 50-day moving average. Therefore, the stock will likely bounce back, with the next point to watch being the all-time high of $64. A drop below the lower side of the channel at $54.55 will invalidate the bullish view.

The post On Holding stock price has dropped: buy the dip? appeared first on Invezz

Shiba Inu coin price has moved sideways in the past few weeks and created a death cross pattern pointing to further downside ahead. The SHIB token dropped to $0.000016, down by over 50% from its highest level in December. So, what next for Shiba Inu as the burn rate falls and Shibariun network slows?

Shiba inu price forms death cross

The SHIB token risks more downside after forming a death cross pattern on the daily chart. This pattern forms when the 200-day and 50-day moving averages cross each other, and is often a sign that bears are in control. In this case, this cross has happened on the weighted MA, which is a popular average because it focuses on the recent data.

Shiba Inu has also formed a head and shoulders pattern. This is another popular reversal sign that has a head, two shoulders, and a neckline. An H&S pattern often leads to a strong bearish breakdown over time. 

SHIB price has moved to the weak, stop & reverse point of the Murrey Math Lines tool. It has also dropped below the Ichimoku cloud indicator.

Therefore, there is a risk that the coin will have a strong bearish breakdown in the coming weeks. If this happens, the next point to watch will be at $0.0000115, the ultimate support of the MML. A move below that level risks the price dropping to the oversold level at $0.000010. 

The bearish view will become invalid if the Shiba Inu price rises above the psychological level at $0.000020, the 200-day WMA point.

Shiba Inu price chart by TradingView

Shiba Inu has weak fundamentals

Third-party data shows that Shiba Inu has some weak fundamentals that may push its price lower in the coming weeks. Coinglass data reveals that the futures open interest has dropped to $200 million from last year’s high of over $540 million. That is a sign that the coin has weak demand in the futures market.

Shiba Inu open interest | Source: CoinGlass

Shiba Inu is also seeing weak volume in the spot market. CoinGecko data shows that its 24-hour volume was over $198 million, much lower than Dogecoin’s $1.24 billion. Pepe and Official Trump had a volume of over $778 million and $935 million, respectively. That is a sign that the token is having weak demand from investors. 

Further data shows that the SHIB burn rate has crashed by over 80% in the past 24 hours. Only 3.3 million SHIB tokens were incinerated during that time. 

A token burn is often compared with a share repurchase in that it reduces the number of coins in circulation, boosting their value. In Shiba Inu’s case, the network has burned over 410 trillion tokens over time, leaving those in circulation at 589 trillion.

Meanwhile, there are signs that the Shibarium layer-2 network is not doing well. The total value locked (TVL) in the ecosystem has crashed below $3 million, making it a smaller chain than other popular layer-2 networks like Base and Arbitrum. ShibaSwap, a key part in its ecosystem is also highly tiny.

While Shibarium has handled over 921 million transactions, the total addresses has stagnated at 2.1 million. Also, the amount of fees collected by the network has plunged, meaning that its impact on Shiba Inu’s burn rate. 

Therefore, there is a risk that the SHIB price may continue falling in the coming weeks because of its relatively weak fundamentals and technicals.

The post Shiba Inu price prediction: death cross, burn rate points to a crash appeared first on Invezz

The USD/CHF exchange rate has bounced back in the past few months as the divergence between the Federal Reserve and the Swiss National Bank (SNB) continues. The pair rose to a high of 0.9100 on Tuesday as traders waited for the upcoming Jerome Powell statement and US inflation data.

Swiss National Bank rate cuts

The USD/CHF pair has rebounded as the Swiss National Bank has maintained a highly dovish sentiment recently. It has delivered several interest rate cuts, and the chairman has warned that rates may go negative this year. It slashed rates by 0.50% in December, bringing the official cash rate to 0.50%.

The bank is cutting rates to stimulate inflation and the economy while devaluing the Swiss franc. As an export-dependent economy, the SNB prefers a weaker currency that makes its products cheaper abroad. 

Low interest rates are usually seen as being negative for the local currency since they discourage savings. They also lead to a carry trade opportunity where investors borrow from a low-interest-rate currency and invest in a high rate one. 

There are chances that the Swiss National Bank will avoid negative rates, though, since the country’s economy remains stronger than in the European Union. The unemployment rate remains low, while the manufacturing sector is doing well.

Federal Reserve hawkish tone

The USD/CHF exchange rate has jumped as the US dollar index has rebounded, moving from $100 in September to over $108. The greenback has jumped against most developed and emerging market currencies. 

Its performance will react to the upcoming Jerome Powell statement, in which he will talk about the state of the economy and the potential actions. The Fed has hinted that it will maintain interest rates higher for a while. 

The statement will come a day before the US releases the latest consumer inflation data. Economists expect the data to show that the headline CPI to remain at 2.9%, and the core CPI, which excludes the volatile food and energy prices, to remain at 3.3%.

These numbers will come a few days after the US released strong jobs data. The economy created over 140k jobs in January, while the unemployment rate stabilized at 4.0%. 

The USD/CHF pair is also reacting to the ongoing trade war between the US and its trade partners. Trump has implemented tariffs on steel and aluminum, which may lead to more economic challenges. The US and Swiss franc are widely seen as safe havens. 

USD/CHF technical analysis

USDCHF chart by TradingView

The daily chart shows that the USD/CHF pair has been in a strong uptrend as the US dollar index rose. It has formed an ascending channel shown in green. The pair has remained above the 50-day and 100-day moving averages, a bullish sign. 

It has moved slightly above the lower side of the ascending channel. Therefore, the pair will likely keep rising as bulls target the important resistance level at 110. A drop below the support at 108 will invalidate the bullish view.

The post USD/CHF forecast: What next for the crashing Swiss franc? appeared first on Invezz

India is among the ten countries most affected by former US President Donald Trump’s recent decision to impose a 25% tariff on all steel and aluminium imports.

The move, which aims to protect American manufacturers, is expected to reshape global trade flows, disrupt supply chains, and push countries towards alternative strategies.

While Canada, China, and Mexico top the list of affected nations, India’s $4 billion steel and aluminium exports to the US mean that its industries will face significant challenges.

As global trade partners brace for the impact, this protectionist measure could trigger retaliatory actions, trade diversifications, and price shifts in key industries.

Steel and aluminium trade realignments

The US is one of the largest importers of steel and aluminium, with these materials essential for industries ranging from construction to automotive manufacturing.

The new tariff policy alters the competitive landscape, particularly for countries heavily reliant on US demand.

Canada, the largest exporter to the US, will likely seek exemptions, while China, which exported $13.86 billion worth of steel and aluminium in 2023, may accelerate its push towards self-sufficiency and alternative markets.

India, which ranks eighth among the affected nations, exports a significant portion of its steel and aluminium output to the US, with industries such as automotive and infrastructure depending on these trade flows.

With higher tariffs making Indian steel less competitive in the US market, manufacturers may look to Europe, Southeast Asia, and domestic projects to offset losses.

India could also benefit if US buyers look for alternative suppliers outside of China and Canada, given ongoing geopolitical tensions.

Potential retaliatory measures and market shifts

History suggests that sweeping tariffs often trigger countermeasures.

The European Union, which is directly affected through Germany and Italy’s exports, could impose reciprocal tariffs on US goods, heightening trade tensions.

Similarly, Mexico, which has a trade surplus with the US, may seek compensation through policy adjustments.

India, which has previously responded to US tariff actions with its own import duties, may take a measured approach, assessing the impact before deciding on retaliatory steps.

Emerging markets could also stand to gain from shifting trade flows.

Countries in Southeast Asia, particularly Vietnam and Indonesia, have been increasing their steel and aluminium production capacity.

If US importers seek alternatives, these nations may absorb some of the demand previously met by India, China, and Brazil.

The broader impact on global industries

The steel and aluminium tariffs are expected to send ripple effects across global industries.

Automobile manufacturers, which rely heavily on imported metals, may see production costs rise.

Higher input costs could push companies like Ford and General Motors to reassess supply chains, while Asian automakers such as Hyundai and Toyota might seek cost-effective sourcing solutions outside the US.

The infrastructure and energy sectors, which depend on steel and aluminium for construction and renewable energy projects, could experience cost fluctuations.

As raw materials become more expensive, global investments in green energy and large-scale infrastructure developments may require strategic adjustments to manage increased expenses.

With Trump’s tariff policy shifting the balance of global trade, affected nations must navigate economic pressures, supply chain disruptions, and potential retaliatory measures.

India, while facing short-term challenges, may turn the crisis into an opportunity by strengthening domestic manufacturing and diversifying trade partnerships.

The long-term effects will depend on how global markets react and whether further trade restrictions follow in the future.

The post India among top 10 nations hit hardest by Trump’s 25% steel and aluminum tariffs appeared first on Invezz

The UK government has ramped up its crackdown on illegal workers, with a significant focus on Indian restaurants and takeaways.

This intensified enforcement effort, described by the Home Office as a “blitz,” has led to a sharp increase in workplace raids, arrests, and penalties imposed on businesses found to be employing undocumented workers.

While the initiative is part of a broader campaign against illegal immigration across various industries, Indian eateries have emerged as a primary target, raising concerns about the disproportionate impact on the sector.

This push comes as the Labour government, under Prime Minister Keir Starmer, seeks to implement stricter border security measures and enhance immigration enforcement.

The policy shift is driven by a surge in illegal migration and growing political pressure to curb unlawful employment practices.

Critics argue that the crackdown risks exacerbating labour shortages in the hospitality sector, which heavily relies on migrant workers.

Indian restaurants among most raided businesses

Data from the Home Office reveals that 828 businesses were raided in January alone—a 48% increase compared to the same period last year.

These raids resulted in 609 arrests, marking a 73% rise in enforcement actions against illegal workers.

Indian restaurants, along with nail bars, convenience stores, and car washes, were among the hardest hit, with multiple establishments facing significant penalties and workforce disruptions.

One of the most notable incidents took place in Humberside, northern England, where seven individuals were detained at a single Indian restaurant.

The Home Office justified the sector-wide targeting by citing longstanding concerns over illegal employment practices and exploitation in the food industry.

Between July 5 last year and January 31 this year, the number of civil penalties issued for illegal working increased by approximately 38% compared to the same period in 2023.

Employers found in violation now face fines of up to £60,000 per undocumented worker—a sharp increase from the previous penalties.

Political motivations

The renewed focus on immigration enforcement aligns with Labour’s broader strategy to tighten border controls and crack down on undocumented workers.

The government is preparing to introduce the Border Security, Asylum, and Immigration Bill, which will grant law enforcement agencies greater authority to seize mobile phones from individuals entering the UK illegally and dismantle organised criminal networks facilitating unlawful migration.

The bill is expected to receive its second reading this week, with Home Secretary Yvette Cooper underscoring the need for stronger enforcement measures.

She stated that the UK’s immigration rules must be respected and that employers hiring undocumented workers contribute to a system that fuels illegal migration, abuses vulnerable workers, and damages the economy.

The Labour government has increased the use of deportation flights, with over 800 individuals—including those convicted of serious crimes such as drug offenses, theft, rape, and murder—removed from the country in recent months.

These flights represent some of the largest migrant return operations in UK history, reinforcing the government’s stance on illegal immigration.

Industry concerns

Despite government assurances, the crackdown has sparked concerns among business owners, particularly in the hospitality sector, where Indian restaurants play a crucial role.

The sector has long relied on migrant workers, including those on skilled work visas, to fill labour gaps.

The aggressive enforcement campaign risks worsening staff shortages, driving up costs, and forcing many small businesses to shut down.

The Opposition Conservative Party has criticised Labour’s immigration bill, arguing that it lacks the necessary provisions to deter illegal crossings.

Some Tory lawmakers have pushed for additional restrictions on migrant access to permanent residency, claiming that the proposed measures do not go far enough.

As the UK government doubles down on its immigration policies, Indian restaurants remain at the centre of a contentious debate over enforcement priorities, economic consequences, and the future of the country’s migrant workforce.

The post Why the UK is cracking down on Indian restaurants over illegal workers appeared first on Invezz

The US has once again placed tariffs on imported steel and aluminium, targeting a sector long dominated by China.

While China does not export large volumes of raw steel or aluminium directly to the US, its influence on global supply chains remains significant.

The 25% tariffs on steel and 10% on aluminium imports are expected to disrupt trade flows, particularly affecting American allies such as Canada, Mexico, and South Korea.

The real question is whether these measures will curb China’s indirect exports or merely shift global trade patterns.

This move reflects a broader strategy by the US to contain China’s economic influence, particularly in key industrial sectors. Beijing’s longstanding dominance in steel production has led to global oversupply, forcing competitors to lower prices.

While the Biden administration has largely continued Trump’s trade policies on metals, the latest tariffs signal a renewed effort to protect US manufacturers from what officials call unfair competition.

The effectiveness of these tariffs remains uncertain, as China’s supply chains have proven highly adaptable.

China’s role in global steel overcapacity

China produces over 50% of the world’s steel, with annual output exceeding 1 billion metric tonnes. However, a slowdown in its domestic economy has forced Chinese manufacturers to seek foreign markets for their surplus production.

While direct exports to the US are limited due to existing trade barriers, Chinese steel still enters the US through intermediary countries.

Nations such as Vietnam, Mexico, and Canada have been reprocessing Chinese steel before shipping it to the US, effectively bypassing restrictions.

The US steel industry argues that this indirect trade has eroded domestic prices and undermined American jobs. In 2023, the US imported 28.6 million metric tonnes of steel, with Canada, Mexico, and Brazil accounting for a large share.

By imposing tariffs on these nations, Washington hopes to close the loopholes that allow Chinese steel to penetrate the US market. However, these restrictions could also strain diplomatic ties with key trade partners.

Retaliation and global trade tensions

China has responded to the US tariffs with its own economic measures, imposing duties on US liquefied natural gas, coal, and agricultural machinery.

While Beijing has refrained from directly targeting US steel, it has increased domestic subsidies to offset the impact of Western trade restrictions.

Meanwhile, other major steel-producing nations, including Brazil, Turkey, and Indonesia, have also introduced countermeasures against China’s excess steel exports, suggesting a broader global backlash.

The European Union has similarly tightened its steel import policies, implementing carbon border adjustment measures that could further restrict Chinese exports.

These international actions reflect growing concern that China’s oversupply is distorting global markets, potentially leading to prolonged trade disputes.

Will tariffs strengthen US steel or escalate a trade war?

Historically, US steel tariffs have had mixed results. Trump’s 2018 tariffs led to short-term price increases, benefiting domestic producers but raising costs for industries reliant on imported steel, such as automotive and construction firms.

While US steel production has increased by 20% since 2018, capacity utilisation remains below the 80% level that industry leaders consider sustainable.

The current tariffs could help revive underutilised American steel mills, particularly in swing states such as Pennsylvania and Ohio, where the sector plays a crucial role in employment.

If global trade tensions escalate, US manufacturers may face retaliatory barriers in other key markets.

With global steel demand fluctuating and supply chains evolving, the long-term impact of these tariffs remains uncertain. While the US aims to reduce its dependence on foreign metals, the broader challenge of China’s dominance in global steel production is unlikely to be resolved through tariffs alone.

Instead, the ongoing trade conflict may further fragment global markets, reshaping supply chains rather than curbing China’s influence outright.

The post Will Trump’s steel and aluminum tariffs weaken China’s global grip? appeared first on Invezz

Google Maps has updated its naming conventions for US-based users, now displaying the body of water previously known as the Gulf of Mexico as the “Gulf of America.”

The change follows an executive order signed by former US President Donald Trump, who sought to “honor American greatness” by renaming geographic features linked to American history.

“People using Maps in the US will see ‘Gulf of America,’ and people in Mexico will see ‘Gulf of Mexico.’ Everyone else will see both names,” Google said in a statement Monday.

According to Google, the platform follows a longstanding policy of aligning its geographic names with official government sources.

The executive order, titled “Restoring Names That Honour American Greatness” (Executive Order 14172), instructs the US Secretary of the Interior to implement the name change within 30 days.

The White House statement accompanying the order defines the newly named Gulf as the “US Continental Shelf area bounded to the northeast, north, and northwest by Texas, Louisiana, Mississippi, Alabama, and Florida, extending to the maritime boundary with Mexico and Cuba.”

Mount McKinley name change not taken effect yet

The renaming of the Gulf was part of Trump’s broader effort to restore names that “reflect America’s historical legacy.”

The order also includes a provision to revert the name of Mount Denali, North America’s highest peak, back to Mount McKinley.

In 2015, former President Barack Obama changed the name of the mountain from Mount McKinley to Denali, the Indigenous name used for centuries by the Koyukon Athabascan people.

Trump’s order criticized this move as “an affront to President McKinley’s life, his achievements, and his sacrifice.”

It further drew parallels between McKinley and Trump, noting that McKinley “championed tariffs” and was assassinated “in an attack on our Nation’s values and our success.”

While the Gulf of America name change has been implemented on Google Maps, the Mount McKinley change has not yet taken effect.

The US Department of the Interior confirmed that it had updated government maps, with Secretary Doug Burgum sharing a screenshot on X that read, “It’s official!”

Mixed reactions and international response

Trump’s decision to rename the Gulf has sparked strong reactions both domestically and internationally.

Mexican President Claudia Sheinbaum sarcastically suggested renaming North America as “Mexican America” in response to the move.

In the US, the change has been welcomed by some of Trump’s supporters as a symbolic act of reclaiming American identity.

However, critics argue that the move is unnecessary and politically motivated.

The renaming of Mount Denali has also drawn backlash from Indigenous groups in Alaska, who see the attempt to revert the name as dismissive of their cultural heritage.

During a flight over the Gulf on Air Force One en route to the Super Bowl in New Orleans, Trump reinforced his stance, calling the renaming a “historic moment” in reinstating “American pride in our nation’s history and achievements.”

The post Why Google is calling the Gulf of Mexico the Gulf of America for US users appeared first on Invezz

The escalating feud between Elon Musk and OpenAI CEO Sam Altman took a dramatic turn on Monday as Altman responded to Musk’s $97.4 billion bid to acquire OpenAI with a counter-offer of his own: a tongue-in-cheek proposal to purchase Twitter, now X, for $9.74 billion.

The exchange follows a report by the Wall Street Journal that a consortium led by the Tesla CEO had offered $97.4 billion for the non-profit that controls OpenAI, marking the latest attempt by Musk to steer the artificial intelligence startup away from its for-profit trajectory.

Musk bought Twitter in 2022 and renamed it X.

‘No, thank you’: Altman’s snarky rebuffal on Musk’s platform

He said in a post on Musk-owned X, “no thank you but we will buy twitter for $9.74 billion if you want”.

Altman conveyed to OpenAI staff that the company’s board of directors intends to unequivocally reject Musk’s “supposed bid,” according to a report by The Information on Monday.

Musk’s motives: a return to OpenAI’s non-profit roots

Musk cofounded OpenAI with Altman in 2015 as a nonprofit, but left before the company took off.

He founded the competing AI startup xAI in 2023.

Musk attorney Marc Toberoff said he submitted the bid to OpenAI’s board of directors, according to the report.

Musk, his own AI startup, xAI, and a consortium of investment firms want to take control of the ChatGPT maker and revert it to its original charitable mission as a nonprofit research lab, according to Musk’s attorney Marc Toberoff.

The rivalry between Musk and Altman, who initially collaborated to establish OpenAI, stems from fundamental disagreements over the company’s direction and its transition to a for-profit entity.

Musk resigned from OpenAI’s board in 2018, marking a significant turning point in their relationship.

Musk recently criticized a $500 billion OpenAI-led project announced by President Trump at the White House.

Musk, the CEO of Tesla and owner of tech and social media company X, is a close ally of President Donald Trump.

He spent more than a quarter of a billion dollars to help elect Trump, and leads the Department of Government Efficiency, a new arm of the White House tasked with radically shrinking the federal bureaucracy.

Legal challenges and accusations of betrayal

Musk, an early OpenAI investor and board member, sued the company last year, first in a California state court and later in federal court, alleging it had betrayed its founding aims as a nonprofit research lab that would benefit the public good by safely building better-than-human AI.

ChatGPT’s rise and internal strife

The explosive success of ChatGPT two years ago catapulted OpenAI into the global spotlight and generated a substantial revenue stream.

However, it also intensified internal conflicts regarding the organization’s future and the development of advanced AI technologies.

In late 2023, OpenAI’s non-profit board briefly fired Altman, before reinstating him days later with a newly constituted board.

The post ‘We’ll buy Twitter for $9.74B’: OpenAI CEO shuts down Musk’s acquisition bid appeared first on Invezz

Porsche stock price has imploded, and moved to a record low as the company goes through one of its worst crises in decades. It slumped to an all-time low of €55.56, down by over 55% from its all-time high, bringing its market cap to over €25 billion. Let’s explore why the Porsche share price has imploded and whether it is safe to buy the dip. 

Donald Trump and his tariffs

The main catalyst for the recent Porsche share price crash is Donald Trump, who has threatened to implement tariffs on European goods. 

These would be big tariffs considering the volume that the two regions do each year. The trade volume is estimated to be $851 billion, with the EU selling products worth $503 billion. Germany is one of the biggest US trading partners.

Porsche is highly exposed to the United States. The last trading update shows that it delivered 310,718 vehicles in 2024, a drop from the 320,220 it delivered a year earlier. 28% of these vehicles went to North America, making it the biggest market in the market. The other biggest region was Europe, China, and Germany. 

While Volkswagen Group has manufacturing plants in the United States, Porsche exports all its vehicles to the country. This means that any tariff, especially a big one like 25% would make its vehicles to be highly expensive.

Analysts believe that such tariffs would pressure the company to set up a manufacturing plant in the US, a highly expensive endeavor. 

China, its other big market is going through major changes as local companies like XPeng, Li Auto, and Nio have gained maket share.

Read more: Very bad news for the vulnerable Porsche stock price

Porsche Taycan sales have tanked

The other main reason why the Porsche stock price has crashed is that its entry into the EV industry has not been all that successful. It did that by launching the Taycan brand, which because highly successful initially.

Recently, however, Porsche Taycan’s sales have crashed. It delivered just 20,800 vehicles in 2024, down from over 40,630 a year earlier. It attributed the drop to the slower than planned electric ramp up and product changeover.

The reality, however, is that EV demand has dropped, and customers are afraid of buying a highly depreciative vehicle. It has a 42% depreciation in three years, with some new models going for less than $50,000. 

Weak financial results

Porsche has published weak financial results in the past few quarters. The most recent numbers showed that the third-quarter revenue dropped by 5.2% to €28.6 billion, while its operating profit plunged by 26.7%. 

This slowdown happened even as the Porsche Cayenne sals jumped by 21% during the quarter. This growth was offset by a big drop in other brands like Macan, Taycan, and Panamera.

Analysts anticipate thar Porsche’s earnings will remain under pressure in the coming quarters, especially as the tariff threat and economic growth in key countries plunge. 

Porsche stock price analysis

Porsche stock by TradingView

The daily chart shows that the Porsche share price has been in a strong downward trend in the past few years. It recently plunged below the key support level at €60 and the 50-day moving average. 

Porsche stock price has moved below the descending channel shown in black, a bearish view. Therefore, the downward trend will continue as bears wait for the new Donald Trump tariffs that will hit it hard. Such tariffs may push it to the next support at €50, followed by €45. 

On the positive side, the stock has formed a falling wedge pattern pointing to more gains later this year. 

The post Here’s why the Porsche stock price has imploded appeared first on Invezz