Finance
Verizon Shares Take a Hit After Q1 Sales Warning
March 13, 2025
T-Mobile's stock saw a notable rise early Monday, following the carrier's announcement of a major new development in satellite connectivity. The telecom giant has launched a beta trial for its new Starlink-powered satellite texting feature, allowing users in previously unreachable "dead zones" to send and receive text messages. This coverage spans an impressive 500,000 square miles of the U.S. that were once outside the range of traditional cell towers. While the texting service is up and running, T-Mobile plans to expand this capability with voice and data services in the near future.In a bid to breathe new life into its devices division, Amazon (AMZN) has announced a significant update to its Alexa digital assistant, introducing a new service called “Alexa+.” The subscription-based offering, which will launch next month, leverages generative AI to enhance the assistant’s capabilities. Alexa+ aims to go beyond simple voice commands by offering advanced features like booking reservations, purchasing concert tickets, providing personalized recipe suggestions, and remembering dietary restrictions. The service is designed to learn users' routines and proactively assist with daily tasks, making Alexa a more intuitive and helpful companion.
Amazon plans to charge $19.99 per month for Alexa+, though Prime members will have access to the service at no additional cost. Initially, the new Alexa features will be available on most Alexa devices, starting with the Echo Show. This update marks a bold step in Amazon’s strategy to revitalize its Alexa platform, which has faced challenges in turning a profit despite the sale of over 500 million devices. With Alexa+, Amazon hopes the subscription model will offset the high costs associated with AI development and help the company move toward profitability in its devices division.
Alexa’s Struggles and the Push for Profitability
Despite its widespread adoption, Alexa has not lived up to expectations in terms of profitability. Amazon has invested billions of dollars in its devices division, which includes not only the Echo smart speakers but also the Kindle and other devices. The introduction of Alexa+ is part of Amazon’s broader effort to turn this segment around by tapping into the growing demand for AI-powered services. By offering a subscription model, Amazon aims to generate more consistent revenue streams, which will help cover the costs of ongoing AI research and development.
Amazon isn’t the only tech company integrating AI into its smart assistant products. Last year, Apple (AAPL) introduced its Apple Intelligence platform to enhance Siri, focusing on making it more conversational and better able to compete with AI-driven tools like ChatGPT. However, Apple’s plans have encountered some delays, with features initially expected to launch in April now likely pushed back to later this year. As the competition heats up, Amazon’s move with Alexa+ is part of a broader trend where tech giants are using AI to reshape the future of voice assistants and create more personalized, efficient user experiences.
The announcement was made even more impactful by the dramatic showcase in a 60-second Super Bowl commercial, which highlighted the groundbreaking service. In a move to encourage early adoption, T-Mobile is offering the satellite texting service for free until July. Afterward, the service will shift to a subscription model, with T-Mobile customers paying $15 per month, while users from other networks like Verizon and AT&T will see a slightly higher fee of $20 per month.
As T-Mobile and Starlink embark on wide-scale testing, the service promises to bridge significant gaps in mobile connectivity, particularly in rural and remote areas where traditional cell towers can't reach. This partnership marks a major step forward in how satellite technology can enhance the telecommunications industry, and the potential to revolutionize communication for millions in underserved regions.
Presented by Mode Mobile
Marc Cuban turned down the chance to invest in Uber at basement prices before the company’s IPO.
And by the time the rest of us hear about industry-changing disruptions like these, it's usually too late... but right now there’s a tech-startup making waves behind the scenes. Like Uber turned vehicles into income-generating assets, they’re turning smartphones into an easy passive income source — already making over $325M for their customers!
And this time, you have a chance to invest5 in their pre-IPO offering at just $0.26/share.4,5,6
After a tumultuous week, the stock market ended on a high note with significant gains on Friday. The S&P 500 and Nasdaq 100 both saw an increase of 1.6%, closing near their daily highs. The Russell 2000, which represents smaller-cap stocks, saw a more modest 1.1% rise. Despite the positive end to the week, all major indices finished lower for the week as a whole.
In an encouraging sign for the broader market, all S&P 500 sector ETFs posted gains on Friday, with financials leading the pack. Most sectors saw advances of more than 1%, with the exception of materials and real estate. The number of advancing S&P 500 stocks outpaced decliners by a significant margin, with 379 stocks advancing—a sign of strong market breadth and the highest such reading for the year.
Despite a brief dip following a tense exchange between U.S. President Donald Trump and Ukrainian President Volodymyr Zelenskyy in the Oval Office, stocks were able to quickly recover. This marked the first positive Friday for the market under President Trump’s second term. Overall, momentum stocks that had faced significant pressure earlier in the week experienced a strong bounce on Friday.
A Resurgence for the "Magnificent 7"
The so-called "Magnificent 7" stocks, which had been hammered earlier in the week, saw notable gains. Nvidia (NVDA) led the charge with a 2.02% gain, bouncing back above its 200-day moving average. Tesla (TSLA) also saw a rebound, ending its worst streak of losses since March 2020. However, Nvidia was not able to reclaim its 200-day moving average, which suggests the stock's recovery is still in progress. Other stocks on the list, like Carvana (CVNA), Strategy (MSTR), and Vertiv Holdings (VRT), saw relief from the intense selling pressure they had endured earlier in the week.
Stock Moves to Watch: Big Gains and Big Losses
On the flip side, some companies experienced mixed results. Monster Beverage (MNST) posted a solid 0.91% gain, showcasing continued strength in the competitive energy drink market. However, Dell (DELL) suffered a 2.95% drop after reporting weaker-than-expected fourth-quarter sales. This disappointment also weighed on Super Micro Computer (SMCI), which saw a 5.53% decline.
FuboTV (FUBO) faced a sharp drop of more than 10%, as the company reported lower-than-expected sales and offered a revenue forecast that fell short of Wall Street's expectations. Conversely, SoundHound AI (SOUN) was one of the day's big winners, surging nearly 20% after exceeding sales expectations and narrowing its losses. The company also raised its outlook for 2025, adding to investor optimism.
Despite the overall downturn for the week, Friday's rally provided a much-needed boost for many stocks, leaving investors hopeful for better performance in the weeks ahead.
In a shift that may change the in-flight experience for many travelers, American Airlines (AAL) is preparing to test free Wi-Fi on select routes starting next week. Known for being one of the last major airlines to hold out on providing complimentary Wi-Fi, American's move comes as the airline faces increasing pressure to stay competitive in a rapidly changing industry. Currently, American is one of the priciest carriers when it comes to in-flight Wi-Fi, charging passengers up to $35 for a connection on cross-country flights.
The decision to introduce free Wi-Fi aligns with American’s strategy to catch up with rivals who have already made strides in offering better connectivity options. Delta (DAL), for example, provides free Wi-Fi to its loyalty members and T-Mobile users on most of its flights, while United (UAL) has plans to roll out free Wi-Fi via a partnership with Starlink later this spring. Smaller carriers have also been offering free messaging for years, a feature that American initially promised to implement back in 2017 but never followed through on.
The Cost of Free Wi-Fi and American’s Financial Strategy
While American’s new free Wi-Fi initiative is likely a response to competition, it could come at a significant cost. The airline currently generates substantial revenue from in-flight services like Wi-Fi, baggage fees, and meals. In 2023, American Airlines earned $8.4 billion in ancillary revenue, according to a report by the airline consulting firm IdeaWorksCompany. Free Wi-Fi could potentially eat into this revenue, especially on longer flights where passengers are more likely to pay for an internet connection.
However, American might be in a position to absorb these losses thanks to a sharp increase in revenue from its co-branded credit card partnerships. In 2023, American Airlines saw a 17% rise in payments from credit card companies, bringing in $6.1 billion. This figure is expected to grow by 10% annually, providing a cushion that may offset any declines in ancillary revenue from free Wi-Fi. Delta, for comparison, raked in $7.4 billion in credit card revenue last year, highlighting the growing importance of these partnerships in supporting airline profitability.
A Changing Landscape for Airline Connectivity
American Airlines' move to offer free Wi-Fi marks a significant shift in the competitive landscape of in-flight connectivity. As more airlines focus on enhancing the customer experience with free services, American's decision to test this new offering could signal a broader industry trend. Whether the carrier can maintain its profitability while providing free Wi-Fi remains to be seen, but with its growing revenue from credit card partnerships, American appears to be positioning itself for the future of air travel.
Presented by Turn Therapeutics
When faced with a deadly infection boasting a 70% fatality rate and no existing cure, Bradley Burnam did what most wouldn’t dare—he created the solution himself. Enter Hexagen: a groundbreaking formula that Burnam personally shepherded through the FDA clearance process for just $24,000. But he didn’t stop there. Building on this success, Burnam expanded the technology, secured two additional FDA clearances, and founded a company that’s rewriting the rules on self-made medical innovation: Turn Therapeutics.
Hexagen isn’t just breaking barriers; it’s healing them. Cleared for acute wound care and atopic dermatitis, this powerhouse formula is now on the brink of a bigger leap. Turn, the company behind Hexagen, is paving the way to expand its applications, proving there’s much more to its potential than meets the eye.
Turn just locked in a game-changing commitment—up to $75M in investment from GEM Global Yield Fund. This private equity boost is tied to the company’s plans to go public, setting the stage for Turn to make bold moves in the market spotlight..3
Turn is rolling out institutional, accredited, and unaccredited investors to participate in their current crowdfunding campaign — but only until January 2025.3
Advertiser's disclosures:
¹ The Company's Formula (Gx-03/Hexagen/Atopx) Has Received 510k Marketing Approval As A Medical Device Indicated For The Management Of Symptoms Related To Atopic Dermatitis/Eczema. The Formula Has Not Received Approval As A Drug For The Treatment Of Eczema Or Onychomycosis.
² A plan to IPO is no guarantee that an actual IPO will occur.
³ Please read the offering circular and related risks at StartEngine’s Turn Therapeutics webpage. This is a paid advertisement for Turn Therapeutics Regulation CF Offering. This Reg CF offering is made available through StartEngine Primary, LLC, member FINRA/SIPC.
4 Mode Mobile recently received their ticker reservation with Nasdaq ($MODE), indicating an intent to IPO in the next 24 months. An intent to IPO is no guarantee that an actual IPO will occur.
5 December 23, 2025 will be the last day to invest and be considered a shareholder in 2025. Any investments made after this date will only be considered shareholders starting in 2025.
6 Please read the offering circular and related risk at invest.modemobile.com. This is a paid advertisement for Mode Mobile’s Regulation A+ Offering.
Investing in private company securities is not suitable for all investors because it is highly speculative and involves a high degree of risk. It should only be considered a long-term investment. You must be prepared to withstand a total loss of your investment. Private company securities are also highly illiquid, and there is no guarantee that a market will develop for such securities.
