Market Overview - The U.S. stock market experienced a significant decline on November 13, with the Dow Jones Industrial Average falling by 1.65%, the S&P 500 down by 1.66%, and the Nasdaq Composite dropping by 2.29% [2] - The Nasdaq China Golden Dragon Index opened strong but later fell, closing down by 1.59% [2] Technology Sector Performance - Major technology stocks saw widespread declines, with Tesla dropping by 6.64%. Tesla's retail sales in China for October were reported at 26,006 units, a 63% month-over-month decrease, marking a three-year low [4] - Tesla also announced a recall of approximately 10,500 Powerwall 2 battery systems in the U.S. due to overheating risks [4] - Other notable declines included Microsoft down by 1.54%, Nvidia down by 3.58%, Oracle down by 4.15%, and Palantir down by 6.53% [4] - Michael Burry, a prominent investor, criticized several large tech companies for allegedly inflating profits through aggressive accounting practices, highlighting risks for Nvidia, Palantir, Microsoft, Alphabet, Oracle, and Meta [4] Semiconductor Sector Insights - The semiconductor sector faced significant declines, with AMD dropping over 4%, Intel and ARM down over 5%, and Micron Technology down over 3% [5] - Morgan Stanley analysts noted that the high valuations in the semiconductor sector could lead to profit-taking among investors [5] - Despite the overall downturn, Micron Technology was identified as a preferred stock due to anticipated supply shortages in the storage chip market, with its target price raised from $220 to a maximum of $325 [5] Federal Reserve Commentary - Federal Reserve officials expressed differing views on future policy directions, with Cleveland Fed President Loretta Mester advocating for stable interest rates to combat persistent inflation [7] - San Francisco Fed President Mary Daly stated it is too early to determine if a rate cut is appropriate for the December meeting, while St. Louis Fed President James Bullard urged caution regarding further rate cuts [7] - A recent Reuters survey indicated that 80% of economists expect the Federal Reserve to cut rates by 25 basis points in December, a slight increase from the previous month [7] Employment Report Context - The U.S. government plans to release the October employment report, but it will not include unemployment rate data due to a federal government shutdown [9] - The shutdown is projected to reduce the GDP growth rate by 1.5 percentage points for the quarter, resulting in an estimated permanent economic loss of about $11 billion [9]

Market Overview - On November 13, U.S. stock indices experienced a significant decline, with the Dow Jones Industrial Average falling by 1.65%, the S&P 500 down by 1.66%, and the Nasdaq Composite dropping by 2.29% [1] - The Nasdaq China Golden Dragon Index opened strong but ended down by 1.59% [1] Technology Sector Performance - Major tech stocks saw widespread declines, with Tesla dropping by 6.64%. Tesla's retail sales in China for October were reported at 26,006 units, a 63% month-over-month decrease, marking a three-year low [2] - Tesla announced a recall of approximately 10,500 Powerwall 2 battery systems in the U.S. due to overheating risks [2] - Other notable declines included Microsoft down by 1.54%, Nvidia down by 3.58%, Oracle down by 4.15%, and Palantir down by 6.53% [2] - Michael Burry criticized several large tech companies for allegedly inflating profits through aggressive accounting practices, highlighting risks for Nvidia, Palantir, Microsoft, Alphabet, Oracle, and Meta [2] - Alphabet's Google A shares fell by 2.84% amid an EU investigation into potential abuse of news search functions [2] Semiconductor Sector Insights - The semiconductor sector faced significant declines, with AMD down over 4%, Intel and ARM down over 5%, and Micron Technology down over 3% [3] - Morgan Stanley analysts noted that the high valuations in the semiconductor sector could lead to profit-taking among investors [3] - Despite the overall downturn, Micron Technology was identified as a preferred stock, with its target price raised from $220 to a maximum of $325, maintaining an "overweight" rating [3] - BlackRock's latest 13F filing revealed that its top increased position was Microsoft, with approximately 10.28 million shares bought, while Apple saw a reduction of 2.5 million shares [3] Federal Reserve Commentary - Federal Reserve officials expressed diverging views on future policy directions, with Cleveland Fed President Loretta Mester advocating for stable interest rates to combat persistent inflation [4] - San Francisco Fed President Mary Daly stated it is too early to determine if a rate cut is appropriate for the December meeting, while St. Louis Fed President James Bullard urged caution regarding further rate cuts [4] - Minneapolis Fed President Neel Kashkari remained non-committal about the upcoming meeting, indicating that decisions would depend on forthcoming data [4] Employment Report Context - The U.S. government is set to release the October employment report, but it will not include unemployment data due to a recent federal government shutdown [6] - The shutdown is expected to have a negative impact on GDP growth, with a projected decrease of 1.5 percentage points and an estimated permanent economic loss of about $11 billion [6]

Market Overview - The Federal Reserve officials adopted a hawkish stance, leading to the largest drop in major U.S. stock indices in a month, with the Nasdaq falling over 2% and the S&P 500 and Dow Jones down over 1% [1] - Disney's quarterly earnings disappointed, causing its stock to drop nearly 8%, leading the Dow components [1] - Tesla's shares fell 6.6%, leading declines among tech giants [1] - Chip stocks and AI-related stocks experienced significant declines, with the chip index down nearly 4% [1] - The offshore RMB rose over 200 points, breaking the 7.10 mark, reaching a two-week high [1] - Bitcoin fell below $100,000, dropping nearly 6% to below $98,000, while Ethereum saw a drop of over 10% [1] Key News - Tencent reported a 19% year-on-year increase in net profit for Q3, driven by double-digit growth in enterprise services revenue due to AI cloud services [2][11] - JD.com achieved a 15% year-on-year revenue growth in Q3, but adjusted EBITDA fell by 83% [2][11] - SMIC's Q3 revenue grew by 9.9% year-on-year, with net profit surging by 43.1% [2][12] - Bilibili's Q3 revenue increased by 5% to 7.69 billion, with adjusted net profit rising by 233% [2][12] Company Developments - Alibaba's "Tongyi Qianwen" is shifting focus to the consumer market, rebranding as "Qwen" to compete with ChatGPT [3][32] - Baidu unveiled its Kunlun chip super node, showcasing a 95% performance improvement and advancements in autonomous driving technology [4][14] - Microsoft launched its first "AI super factory," integrating data centers to create a planetary-scale computing network [15] - Tesla's AI executive indicated that 2026 will be a challenging year for employees, with significant goals set for the AI team [16] Financial Performance - Tencent's Q3 R&D expenditure reached a record high of 22.82 billion yuan, with a 22% increase in sales and marketing expenses [18] - JD.com's adjusted EBITDA for Q3 was 2.5 billion yuan, significantly below market expectations [18] - Bilibili's user engagement improved, with daily active users reaching 117 million and average usage time increasing to 112 minutes [12] Strategic Moves - Tencent and Apple reached an agreement on a payment sharing model, with Apple taking a 15% commission from WeChat mini-games and applications [19][30] - JD.com plans to invest in AI over the next three years to build a trillion-level smart ecosystem [18] - Alibaba's shift to consumer-focused AI applications aims to create a standalone app that integrates various services [32]

Core Insights - The stock market experienced a significant sell-off, with the Dow Jones Industrial Average dropping nearly 800 points, and both the S&P 500 and Nasdaq composite also closing sharply lower, primarily driven by losses in high-beta growth stocks such as Nvidia, Palantir Technologies, and Tesla [2][5]. Group 1: Market Performance - The Dow Jones Industrial Average fell by nearly 800 points, indicating a broad market decline [2]. - The S&P 500 index and Nasdaq composite also closed sharply lower, reflecting a widespread sell-off in the market [2]. - Heavy losses were particularly noted in artificial intelligence stocks, which contributed significantly to the overall market downturn [2][5]. Group 2: Company-Specific Developments - Nvidia, Palantir, and Tesla were highlighted as major losers during the market sell-off, indicating their vulnerability to valuation assessments by investors [2][5]. - Nvidia's upcoming earnings report is seen as crucial for reviving interest in AI stocks, suggesting that its performance could influence market sentiment [5]. - Tesla's stock has been under pressure, particularly as its largest supporter has reduced their stake for four consecutive sessions, indicating potential concerns about the company's future performance [5].

Core Insights - Michael Burry has closed his hedge fund, Scion Asset Management, and appointed Phil Clifton as his successor [1] - Burry has taken bearish positions against Nvidia and Palantir, indicating concerns over the tech sector's valuation growth [2] - Following Burry's disclosures, tech stocks experienced significant declines, with Nvidia dropping 7.1% and Palantir falling 11.2% [4] Company Developments - Burry's decision to terminate his registration with the SEC and close his hedge fund has generated considerable media attention [1] - The bearish positions taken by Burry have coincided with a downturn in the Nasdaq Index, marking its worst week since April [4] - A letter to investors indicated Burry's plans for a new venture launching on November 25, though details remain unclear [5] Industry Reactions - The exchange between Burry and Palantir's CEO, Alex Karp, highlights the contentious atmosphere surrounding Burry's market predictions [3] - Burry's actions and statements reflect a broader skepticism towards the sustainability of current tech valuations [2]

Core Insights - The stock market faced a decline despite the end of the longest government shutdown in U.S. history, which was expected to positively impact equities [2][3] - President Trump signed legislation to reopen the federal government, alleviating economic pressure on over 1 million federal workers and allowing federal agencies to resume releasing important economic data [2] - The tech-heavy Nasdaq index led the decline, falling more than 2%, possibly indicating a "buy the rumor, sell the news" scenario [3] Market Trends - Historically, the end of government shutdowns has been beneficial for stock performance, with the S&P 500 showing gains in the one- and three-month periods following budget resolutions [5] - November has been the best month for the S&P 500 on average since 2000, and December often sees a "Santa Claus rally," yet current investor sentiment appears cautious due to concerns over an AI bubble and uncertain economic data [6] Sector-Specific Concerns - Tech stocks have been particularly affected by fears of an AI bubble, with significant declines in shares of companies like Nvidia and Palantir, despite the latter's strong earnings report [8][9] - The majority of the S&P 500's worst-performing stocks included high-profile AI beneficiaries, indicating a broader concern about the sustainability of the AI boom fueled by heavy investments in data centers [9]

The Wall Street Journal claims there is an AI cold war between the US and China. Palanteer Technologies defense head Mike Gallagher joins me now. Mike, are we winning the AI cold war.I have to tell you that my colleague Kevin Olirri is sitting next to me. He says we are losing the war with China. What say are you.>> Well, Kevin's much smarter than I am. I see no reason to disagree with him, but I do think we have a narrow lead in key important areas. For example, when it comes to the hardware underlying AI ...

Core Insights - The focus is on identifying high-potential investment opportunities before they experience significant growth, emphasizing asymmetric risk-reward profiles with an upside potential of 3-5 times the downside risk [1] Investment Strategy - The investment approach leverages market inefficiencies and contrarian insights to maximize long-term compounding while safeguarding against capital impairment [1] - A strong margin of safety is prioritized to protect against potential capital losses, ensuring a disciplined investment strategy [1] - The investment horizon is set at 2-3 years, allowing the company to endure market volatility and achieve substantial returns through patience and intelligent capital allocation [1]

I have been saying that Palantir Technologies Inc. ( PLTR ) is overvalued since my very first coverage of this stock. My perception about overvaluation was based both on DCF models and multiplesWith a decade at a Big 4 audit firm specializing in the banking, mining, and energy sectors, I bring a strong foundation in finance and strategy. Currently, I serve as the Head of Finance for a leading owner and operator of retail real estate, where I oversee complex financial operations and strategy. I’ve been an ac ...

Core Viewpoint - Palantir Technologies Inc. (PLTR) is perceived as overvalued based on DCF models and multiples [1] Group 1: Company Background - The analyst has a decade of experience at a Big 4 audit firm, specializing in banking, mining, and energy sectors [1] - Currently serves as the Head of Finance for a leading retail real estate owner and operator, overseeing complex financial operations and strategy [1] - Has been an active investor in the U.S. stock market for 13 years, focusing on a balanced approach with an emphasis on value stocks while maintaining exposure to growth opportunities [1] Group 2: Investment Philosophy - The investment philosophy is rooted in thorough research and a long-term perspective, aiding in navigating various market cycles successfully [1] - Aims to uncover promising under-the-radar stocks that may not yet be recognized by the broader market [1] - The combination of auditing and finance background with hands-on investing experience provides unique insights and actionable ideas for investors [1]