Finance
Verizon Shares Take a Hit After Q1 Sales Warning
March 13, 2025
Expository dialogue—often considered cringeworthy—may be Netflix’s latest engagement hack. Reports suggest the streamer is instructing screenwriters to have characters explicitly state their actions, making it easier for distracted viewers scrolling TikTok or multitasking to keep up.
Meanwhile, markets took a hit yesterday amid the DeepSeek panic. The Nasdaq dropped 3%, with chip giants Nvidia and Broadcom plunging around 17%. Nvidia alone lost nearly $600 billion in market cap—the largest single-day wipeout in U.S. stock market history—all triggered by China’s new DeepSeek AI model (more on that shortly).
Deep disruption… Chinese AI startup DeepSeek sent shockwaves through the market yesterday, erasing over $1 trillion in value. Nvidia alone saw a record-breaking $600 billion wiped from its market cap—the largest one-day loss in U.S. history. The cause? DeepSeek’s newly launched free-to-use AI model, reportedly rivaling OpenAI’s most advanced GPT system. Adding insult to injury, DeepSeek trained its model for under $6 million—nearly 20 times less than OpenAI’s GPT-4. The app has already overtaken ChatGPT as the top free download on Apple’s App Store.
A reality check for AI dominance… Despite facing U.S. chip-export restrictions, DeepSeek developed a competitive model using just ~2,000 lower-grade Nvidia chips—a fraction of the tens of thousands used by its Western counterparts.
Skeptics weigh in… ScaleAI’s CEO suggested DeepSeek may secretly be using up to 50,000 high-powered Nvidia chips, which it can’t disclose due to export controls. Regardless, the company’s rapid rise is a stark reminder that China’s AI capabilities are advancing faster than anticipated.
User reactions… DeepSeek has earned praise for its transparency, as it shows its reasoning behind responses. However, critics point out its heavy censorship—it refuses to address topics like the Tiananmen Square protests—and concerns over U.S. user data being sent to China.
“Did we just burn billions?” DeepSeek’s ability to achieve top-tier AI performance on a budget has investors questioning the massive sums U.S. tech giants have poured into AI. Last quarter alone, Amazon, Alphabet, Microsoft, and Meta spent a combined $60 billion on AI-related infrastructure. Meta plans to invest $65 billion in AI data centers this year, while Microsoft has committed $80 billion, with OpenAI’s Stargate project potentially scaling from $100 billion to over $500 billion.
Innovation under pressure… U.S. restrictions on advanced AI chips were meant to slow China’s progress, but they may have done the opposite. DeepSeek’s success with fewer resources suggests that constraints can drive greater innovation—just as some experts predicted.
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Sunday showdown… President Trump briefly threatened Colombia with 25% tariffs on Sunday after the country refused to accept two U.S. military planes carrying deported migrants. By nightfall, the White House announced that Colombia had agreed to repatriate the passengers, but warned that tariffs remained an option if the deal fell through. In response, Colombia confirmed it would send an air force plane to collect its citizens who were denied entry on the Sunday deportation flight—an episode that left markets on edge.
Brewing trouble… Coffee futures hit record highs amid the turmoil, as Colombia supplies nearly a third of America’s caffeine fix. Meanwhile, China seized the moment to announce that it was ready to accept undocumented Chinese nationals deported by the U.S.
America-first trade policies… or just talk? On the campaign trail, Trump has floated hefty tariffs on key trading partners like Mexico, Canada, and China. However, he has yet to impose them. Instead, he ordered federal agencies to review trade policies—leading some to speculate that his tariff threats might be more bark than bite.
Still, tensions remain… Last week, Trump hinted that tariffs on Mexico, Canada, and China could take effect as early as next month. And at the World Economic Forum in Davos, he doubled down on trade threats, calling EU policies "unfair" and raising the prospect of tariffs on all U.S. imports.
The trade-off… Even without action, Trump’s tariff threats are pushing countries to align with his agenda. But leveraging trade dependence is a risky game—if he follows through, a wave of retaliatory tariffs could trigger a full-blown trade war.
Presented by Nasdaq
A recent study from the Nasdaq Index Research Team found that among global large cap companies, patent filers recorded the fastest sales growth over the trailing 15 years. Growth for patent filers ranged 60-70%, nearly 2x the average for the entire cohort (35%).1
Investors looking to access innovative, patent filing companies need look no further than the Nasdaq-100® (NDX®).2
The success of NDX can be attributed in part to the value of its constituents’ patents, which has grown ~10.5x since May 2007, vs. ~4x across all publicly listed, tracked companies globally. Growth for the S&P 500 overall was ~5.5x, but only ~4x when excluding the contribution of overlapping Nasdaq-100 firms.3
Learn more about the innovative index here: Nasdaq-100 Index.®
Advertiser's disclosures:
¹ Reservations do not require purchase of a Casita and there is no assurance of how many will result in actual purchases.
² The minimum investment is $1,000. This is a paid advertisement for the Boxabl Inc. Regulation A offering. Please read the offering circular and related risks at StartEngine’s Boxabl Website.
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.
¹ Source: Nasdaq Global Indexes, Nasdaq AI Team, IFI Claims, Factset as of 8/29/2024. Index data as of 12/31/2013 and 12/31/2023. Companies are ranked on prior full-year total patent filings.
² It is not possible to invest directly in an index.
³ See slide 26 for further details on the growth in the value of patents for NDX®, S&P 500, and Global ex-US since May 2007.
Nasdaq®, Nasdaq-100 Index®, Nasdaq-100®, and NDX® are trademarks of Nasdaq, Inc. The information contained above is provided for informational and educational purposes only, and nothing contained herein should be construed as investment advice, either on behalf of a particular security or an overall investment strategy. Neither Nasdaq, Inc. nor any of its affiliates makes any recommendation to buy or sell any security or any representation about the financial condition of any company. Statements regarding Nasdaq-listed companies or Nasdaq proprietary indexes are not guarantees of future performance. Actual results may differ materially from those expressed or implied. Past performance is not indicative of future results. Investors should undertake their own due diligence and carefully evaluate companies before investing. ADVICE FROM A SECURITIES PROFESSIONAL IS STRONGLY ADVISED.
