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Market Trends in U.S. Stocks (June 23): Peak at Listing? SpaceX Loses Over $800 Billion in Three Days, Tech Stocks Experience Severe Internal Divergence

Stock Market Trends (June 23): Did SpaceX Peak at IPO? The company loses over $800 billion in market value in three days as a sharp divergence unfolds within the tech sector. SpaceX's post-IPO decline of over 20%, falling below its first-day close, reflects a swift market repricing. The catalyst is a clear shift in narrative from "AI platform potential" to concerns over rising capital costs, as its $8.57 billion IPO and subsequent $20 billion debt offering are earmarked for acquisitions and refinancing existing bridge loans rather than de-leveraging. While high-valuation tech stocks like Google, Meta, Amazon, and Microsoft faced pressure, Micron surged nearly 7% to a record high following a strategic supply deal with Anthropic for HBM and memory, highlighting robust, tangible demand in AI infrastructure. The broader market saw funds rotate into more defensive industrial and financial names. Macro factors included a dip in oil prices to a three-month low on news of a US-Iran framework deal, though logistical hurdles for resuming full Strait of Hormuz shipments remain. Key events ahead include Nvidia's shareholder meeting, Micron's earnings, and the May PCE inflation data. The latter will be crucial in determining whether the sell-off in high-valuation growth stocks, which appears to have just begun, will persist.

marsbitHace 7 hora(s)

Market Trends in U.S. Stocks (June 23): Peak at Listing? SpaceX Loses Over $800 Billion in Three Days, Tech Stocks Experience Severe Internal Divergence

marsbitHace 7 hora(s)

MARA Reports Q1 Revenue Below Expectations, Net Loss of $1.3 Billion, Stock Plunges After Hours

Bitcoin mining firm MARA Holdings reported disappointing Q1 2024 results, causing its stock to erase all daily gains and fall 3.44% in after-hours trading. Revenue dropped 18% year-over-year to $174.6 million, missing Wall Street estimates of $192.7 million. The company posted a net loss of $1.3 billion, a significant increase from a $533.4 million loss a year ago, primarily driven by unrealized losses on its holdings of 38,689 Bitcoin, which depreciated in value during the quarter. MARA also sold over 15,100 BTC in late March to repurchase debt at a discount. The broader mining environment remains challenging due to a 35% decline in Bitcoin's price from its all-time high and a nearly 30% increase in mining difficulty over the past year. MARA's market cap ranking among U.S. miners has slipped to seventh. Critically, the company announced a strategic pivot away from Bitcoin mining expansion. It stated it has no plans to purchase new mining equipment and is fully transitioning toward AI data centers. Its strategy involves retrofitting existing mining sites for AI and high-performance computing (HPC) and leveraging its recent $1.5 billion acquisition of Long Ridge Energy & Power, a gas-fired power plant and data center. This infrastructure could eventually support 600 MW of AI compute capacity, allowing MARA to redeploy up to 90% of its non-custodial mining power for AI and IT workloads.

marsbit05/12 08:35

MARA Reports Q1 Revenue Below Expectations, Net Loss of $1.3 Billion, Stock Plunges After Hours

marsbit05/12 08:35

Oracle Plunges 40%, Will Overbuilding of AI Infrastructure Drag Down Giants?

Oracle's stock has plummeted 40% from its September peak, despite securing over $500 billion in AI infrastructure orders, signaling that massive future contracts no longer guarantee investor confidence. Similar concerns are emerging across the AI supply chain: Broadcom, with a $73 billion AI order backlog, saw its stock drop post-earnings, while GPU cloud provider CoreWeave fell 17% amid rising debt levels. The core issue is a market-wide skepticism about whether AI infrastructure builders—and their clients—can deliver. Orders are highly concentrated among a few tech giants (Meta, Alphabet, Microsoft, Amazon, Apple, Nvidia) and AI startups (OpenAI, Anthropic). Startups rely on external funding, creating obvious risk, but even cash-rich giants are showing strain. They are funding immense AI capex—often exceeding energy sector spending—with debt, while AI’s revenue contribution remains minor compared to core businesses. Oracle’s negative cash flow and record debt issuance highlight the financing challenge. Its novel “customer-owned chips” model shifts risk to clients like OpenAI and Meta, who must pay for and supply their own hardware. If AI demand doesn’t materialize as expected, underutilized data centers could become costly failures. While proponents argue AI growth is exponential and will eventually pay off, the timing is uncertain. The race between AI infrastructure expansion and actual market demand will determine whether giants are strengthened or broken by their bets.

深潮12/13 05:35

Oracle Plunges 40%, Will Overbuilding of AI Infrastructure Drag Down Giants?

深潮12/13 05:35

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