Back to News
Finance
February 11, 2025

TikTok’s Last-Ditch Play

Hi Enthusiast,

The Return of Smell-O-Vision
SonySONY $20.43 (-0.76%) has unveiled a new immersive gaming concept that brings scents into the mix. The idea? Gamers could experience PlayStation worlds, like “The Last of Us,” in a massive sensory cube. Think sights, sounds, and even the aroma of a zombie apocalypse. Eau de undead, anyone?

A Tough End to the Week
Wall Street had anything but a cheerful Friday. The S&P 500 wiped out its early-year gains after a jaw-dropping December jobs report. Major U.S. indexes tumbled roughly 1.5% as stronger-than-expected job growth dashed hopes for an imminent Fed rate cut.

SCOTUS May Pave the Way for a US TikTok Ban This Month

Get ready to decide TikTok’s fate. On Friday, the Supreme Court reviewed a law that could force TikTok’s 170M U.S. users to say goodbye to their For You Pages. A ruling, expected soon, will determine whether the app can be banned nationwide starting January 19 unless its Chinese parent company, ByteDance, gives up its controlling stake. ByteDance has made it clear it won’t sell, which means the app could be blocked entirely. If the ban proceeds, platforms like Apple’sAAPL $228.40 (-4.05%) App Store and Google’sGOOGL $192.87 (-1.37%) Play Store would face hefty fines for offering TikTok or providing updates.

The debate: TikTok lawyers and creators argue the ban infringes on free-speech rights, while U.S. Solicitor General Elizabeth Prelogar insists the app poses a national security risk due to its Chinese ownership — a risk, she says, only a ban or divestment can address.

SCOTUS signals: While Justices Gorsuch and Kagan expressed concerns about potential First Amendment violations, most justices seemed to favor the law, framing it as a national-security measure rather than a speech restriction.

Trump’s move: In a surprising twist, POTUS-elect Trump, who previously tried to ban TikTok in 2020, has asked SCOTUS to delay the ban’s deadline until after he assumes office on January 20, claiming he’ll work to “save” the app.

Plan B: Lemon8. ByteDance has ramped up promotion of its Instagram-like sister app, Lemon8. As a potential TikTok ban looms, TikTok creators—some sponsored by ByteDance—have urged followers to migrate to Lemon8. U.S. page views for the app surged to 5M last month. However, Lemon8 may also face risks since the ban-or-divest law could extend to all ByteDance-owned platforms.

The Tik-conomy on the move: TikTok’s vast ecosystem of creators, brands, and businesses may have to migrate to competitors like Meta’sMETA $611.30 (-0.93%) Instagram Reels, YouTube Shorts, Snap’sSNAP $11.23 (-5.15%) Spotlight, or Lemon8. If the ban happens, an entire digital economy may need to find a new home.

Presented by Nasdaq

Woman looking at laptop

Innovation is Key to Sustained Growth

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.®

Coming Up This Week
  • Big banks kick off Q4 earnings season: Major players like JPMorgan Chase (JPM $254.26, +0.76%), Citigroup (C $78.39, +0.31%), Wells Fargo (WFC $75.87, +0.03%), Bank of America (BAC $46.53, -0.96%), Morgan Stanley (MS $135.55, +4.03%), and Goldman Sachs (GS $611.00, +1.13%) are set to report earnings. In October, they all exceeded estimates despite increasing reserves for loan default risks. Optimism surrounding rate cuts boosted investment banking, with Morgan Stanley and Goldman benefiting from a surge in dealmaking activity. However, declining interest rates could put pressure on net-interest income, a critical profit driver for banks.
  • “Severance” returns to Apple TV+: The hit sci-fi show, known for its dystopian take on work-life balance, is back with a reported $20M+ per episode production cost, surpassing “Game of Thrones” spending. Despite its success, Apple TV+ still lags behind streaming rivals like Paramount+ and NBCUniversal’s (CMCSA $36.30, -0.62%) Peacock. While Apple TV+ contributed to a record $25B in services revenue last quarter, Apple is reportedly scaling back content spending after investing $20B with limited subscriber growth impact.
  • Insurance challenges amidst California wildfires: Devastating wildfires in Los Angeles last week claimed at least 16 lives and destroyed thousands of structures. Experts estimate insured losses could exceed $20B, potentially making it the most expensive wildfire in U.S. history. Even before these fires, insurers like State Farm began pulling out of high-risk areas in California due to growing catastrophe risks. The state’s insurer of last resort is now under pressure, with reserves far below expected damages as the climate crisis worsens.
  • US labor market wraps up 2024 strong: December saw a robust 256K jobs added (100K more than expected), with 2.2M jobs created throughout the year—matching pre-pandemic levels. Unemployment dipped to 4.1%, and wages increased 3.9% compared to 2023. However, these strong figures dampened market hopes for additional rate cuts at the Federal Reserve’s upcoming meeting. Bank of America has adjusted its forecast, now predicting no rate cuts for 2025.
Quick Signals
  • Sports streaming shakeup: Disney (DIS $106.38, -1.58%), Warner Bros. Discovery (WBD $9.47, -3.22%), and Fox (FOX $45.94, -0.52%) have abandoned plans to launch a joint sports-streaming platform, just days after Disney announced its acquisition of sports streamer FuboTV (FUBO $3.91, +1.40%).
  • Dry January challenges booze sales: As sobriety trends grow, alcohol sellers may feel the pinch this month. Meanwhile, brands like Athletic Brewing are thriving as demand for non-alcoholic alternatives surges.
  • Crypto tax landscape in flux: Evolving regulations, ongoing court battles, and the arrival of a crypto-friendly administration could significantly reshape tax policies for digital currencies.
  • Presented by Mode Mobile

    Mode Mobile cell phone in pink convertible

    Could this company become the Uber of smartphones?

    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 offering2 at just $0.26/share.3

    Advertiser's disclosures:

    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.

    ⁴ The Deloitte rankings are based on submitted applications and public company database research, with winners selected based on their fiscal-year revenue growth percentage over a three-year period.

    ⁵ 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.

    Minimum investment is $999.96. Please read the offering circular and related risks at invest.modemobile.com. This is a paid advertisement for Mode Mobile’s Regulation A+ Offering.

    Past performance is no guarantee of future results. 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.

    DealMaker Securities LLC, a registered broker-dealer, and member of FINRA | SIPC, located at 105 Maxess Road, Suite 124, Melville, NY 11747, is the Intermediary for this offering and is not an affiliate of or connected with the Issuer. Please check our background on FINRA's BrokerCheck.

    Thank you! Your submission has been received!
    Oops! Something went wrong while submitting the form.
    Finance
    Verizon Shares Take a Hit After Q1 Sales Warning
    March 13, 2025
    Finance
    Kohl's Shares Plunge After Dividend Cut and Weak Sales Outlook
    March 14, 2025
    Finance
    Private Credit-Fueled Companies Take a Hit While Public Credit Markets Remain Calm
    March 14, 2025
    Finance
    Delta Takes a Major Hit After Slashing Q1 Outlook
    March 14, 2025
    Politics
    SoFi Faces Major Setback, Marking Worst Drop in a Year
    March 13, 2025
    Politics
    Palantir and Trump Trades Face a Rough Downturn
    March 13, 2025
    Technology
    Eutelsat: The French Satellite Company Getting the "GameStop" Treatment Amid Starlink Concerns
    March 13, 2025
    Health
    Novo Nordisk Faces Setback with CagriSema Trial Results
    March 11, 2025
    Politics
    The Shift from "TINA" to "Anything But the USA" in Global Markets
    March 11, 2025
    Finance
    Retail Sector Faces Uncertainty Amid Strong Holiday Results
    March 11, 2025
    Finance
    Bank of America Raises Broadcom Price Target Amid Growing Hyperscaler Customer Base
    March 11, 2025
    Politics
    Nasdaq Hits Correction Territory: A Look Back at History and What's Ahead
    March 8, 2025