Together AI, a San Francisco-based AI startup backed by Nvidia $NVDA, is making waves in the tech scene with its latest funding achievement. The company recently announced it raised $305 million in its latest funding round, more than doubling its valuation compared to last year.
New Financial Milestones
The funding round was led by venture capital firm General Catalyst, valuing Together AI at an impressive $3.3 billion. This marks a significant leap from its $1.25 billion valuation in 2022, underlining the growing importance of Together AI in the rapidly expanding artificial intelligence market.
In the dynamic and fast-paced world of investments, asset management firms constantly strive to adapt to evolving client needs and market trends. Fidelity Investments $FIS has now taken a significant step forward by unveiling two new ETF-only model portfolios. Designed to simplify the client portfolio construction process for asset managers, these portfolios aim to offer a cutting-edge solution to navigating the ever-growing universe of exchange-traded funds (ETFs).
What Are Fidelity’s Model Portfolios?
Fidelity Investments has introduced two distinct ETF model portfolio lines tailored to meet diverse investment goals:
1. Fidelity Target Allocation ETF Model
The news of a potential sale of Family Dollar, the discount retail chain operated by Dollar Tree $DLTR, has sparked significant interest in the market. Private equity giants Apollo Global Management $APO and Sycamore Partners have emerged as leading contenders in the potential acquisition, with Brigade Capital Management also expressing interest. Let’s delve deeper into the situation and explore what this could mean for the retail sector.
The Players Behind the Potential Deal
1. Apollo Global Management:
- Assets under management: approximately $70 billion in private equity strategies.
On Thursday, US stock markets faced a significant downturn due to ongoing uncertainties surrounding tariffs and disappointing forecasts from Walmart $WMT. This combination of factors dampened investors’ appetite for risk, leading to broad sell-offs. All three major US stock indexes ended the day in negative territory, with the Dow Jones Industrial Average suffering the steepest decline. Meanwhile, gold prices soared to record highs, underscoring a shift toward safe-haven assets amid growing instability.
Market Under Pressure
1. Declining Index Performance:
Guzman y Gomez $GYG.AX surprised the market on Friday with an announcement that sent waves through the financial community. The Mexican fast-food chain, known for its public listing on the Australian Stock Exchange, revealed that its semi-annual core earnings fell short of analysts' expectations. This shortfall also negatively impacted U.S. sales, resulting in a drop in the company's stock price.
Financial Metrics Under Pressure
Independent analysts' forecasts set a high bar that Guzman y Gomez could not meet. The company reported core earnings before interest, taxes, depreciation, and amortization (EBITDA) of AUD 31.6 million. This figure is below the Visible Alpha consensus estimate of AUD 32.5 million and significantly less than UBS’s optimistic forecast of AUD 35.9 million.
On Wednesday, Microsoft $MSFT unveiled its groundbreaking Majorana 1 chip, asserting that the advent of quantum computing is a matter of years rather than decades. This innovative step aligns with predictions from industry giants Google $GOOGL and IBM $IBM, suggesting that fundamental shifts in computing technology are closer than previously thought. The announcement has captured the attention of both experts and the broader audience, given the potential of quantum breakthroughs to revolutionize fields such as medicine, chemistry, and cybersecurity.
Major Innovations of Majorana 1
Microsoft’s new architecture shows a significant reduction in error rates compared to traditional qubits. The key aspects include:
Shares of MercadoLibre Inc. $MELI, a leading player in e-commerce and fintech in Latin America, surged during post-market trading following a stellar earnings report that exceeded analysts' expectations. According to the latest figures, the company reported a net income of $639 million for the fourth quarter, significantly surpassing the average analyst estimate of $406 million. Revenue for the same period also impressed, totaling $6.1 billion, indicating robust business growth.
Market Reaction
Following the release of these financial results, MercadoLibre's stock jumped nearly 14% in after-hours trading. This resurgence comes after a disappointing third quarter, during which the company failed to meet investors’ expectations. This shortfall was attributed to high investments in logistics and lending, which led to sell-offs.
Walmart $WMT has recently shared its sales and profit forecasts for the current fiscal year, falling short of Wall Street's expectations. The company attributes this cautious outlook to the ongoing geopolitical challenges. The announcement triggered an immediate market reaction, notably impacting the stock performance of major retail players.
Stock Decline Among Retail Giants
Following Walmart’s forecast, its shares dropped by 6%, a notable retreat considering their 72% rise in 2024 and record all-time high just last week. This ripple effect extended to peers: Target $TGT shares fell by 1.2%, while Amazon $AMZN saw a 1.6% decline.
Nu Holdings Ltd. $NU, one of the largest digital banks in the world, recently published its fourth-quarter earnings, which did not meet analysts' expectations. This article will explore how economic factors are influencing the company’s performance and its future in this critical market.
Financial Performance
In the earnings report released by the company, it was disclosed that revenue for the quarter ending December 31 amounted to $2.99 billion. This figure fell short of the average analyst estimate of $3.21 billion. Net income was reported at $552.6 million, also missing the projected $566.4 million. However, the return on equity stood at 29%, aligning with expectations from financial analysts.
Celsius Holdings Inc. $CELH has announced plans to acquire its competitor in the energy drink market, Alani Nu, for an impressive valuation of $1.8 billion, which will be settled in cash and stock. The deal also includes $150 million in tax assets. The transaction is expected to be finalized in the second quarter of 2025, already resulting in a significant 21% increase in Celsius stock amid positive market sentiment.
Reasons Behind the Acquisition
According to the announcement, this merger is a strategic move in response to the slowing revenue growth of Celsius, which has been notably declining over the past few quarters. Specifically, the company has experienced a year-over-year decrease in sales, raising concerns among investors. A part of this decline can be attributed to the emergence of new competitors, particularly Alani Nu from Congo Brands, which successfully positions itself as a healthier alternative to traditional high-sugar energy drinks.
Stellantis NV $STLA has announced the suspension of work on the next-generation Jeep Compass sports SUV, as well as all operations at its Brampton, Ontario assembly plant. This decision stems from the need to reassess the production strategy amid the rapidly changing automotive market.
Reasons for Suspension
Company spokesperson Jodi Tinson emphasized that Stellantis continues to adapt to current market conditions. The halt in operations will not affect the previously announced investment plans for the Canadian plant. A significant aspect to note is that an equipment modernization program is currently underway at the Brampton facility, aimed at producing electric vehicles and gas-powered cars for the Jeep brands.
Coca-Cola Co. $KO recently issued a warning about potential risks to its business stemming from a possible reduction in workforce diversity. This statement was included in the company’s annual report as a response to President Donald Trump’s call to discontinue programs aimed at promoting diversity, equity, and inclusion (DEI) within organizations.
The Importance of Diversity for Coca-Cola
Coca-Cola emphasizes that a diverse team of employees plays a crucial role in the company’s success. In its statement, the company noted, "Our diverse and high-performing workforce around the globe helps foster a culture of engagement, innovation, and growth." Having specialists with varied experiences and perspectives allows the company to better understand and serve a wide range of customers and markets.
