Tech

Amidst AI hype, infrastructure and industrial stocks are gaining attention due to policy shifts and reshoring trends. Experts like Mike Atkins see a bullish setup, while Global X’s Ryan O’Connor highlights infrastructure’s role in supporting the AI boom, referencing the Global X U.S. Infrastructure Development ETF (PAVE). PAVE is up 16% YTD. The U.S. Electrification ETF (ZAP) is also thriving, indicating the sector’s growth is sustainable as AI and electrification demands increase.

ThredUp’s massive facility highlights the explosive growth of the secondhand apparel market, projected to reach $367 billion globally by 2029. Fueled by Gen Z and now a broader demographic seeking value and sustainability, recommerce benefits from tariffs impacting imported clothing. ThredUp leverages automation and AI to efficiently process 40,000 items daily, achieving strong financial performance with a domestic infrastructure, capitalizing on shifting consumer behavior and trade policy impacts. The company’s success signals a significant, lasting shift towards sustainable and accessible fashion.

AI market optimism is wavering amid concerns of a bubble and unsustainable valuations fueled by debt-financed expansions. Replit CEO Amjad Masad notes a cooling hype, citing initial disillusionment with early AI coding tools and a slowdown in revenue growth for some companies. Contrarily, Credo AI CEO Navrina Singh remains bullish, seeing AI as a fundamental growth driver necessitating investments in governance, infrastructure and responsible implementation for long term success. The market is maturing beyond hype to focus on strategic integration and risk mitigation.

Alphabet’s YouTube TV and Disney resolved their carriage dispute, restoring Disney-owned channels like ABC and ESPN after a two-week blackout. The agreement, reached after tough negotiations over carriage fees, ensures the return of live sports content crucial for viewers. YouTube TV offered subscribers a $20 credit during the disruption. Disney also committed to providing YouTube TV base plan subscribers with access to a selection of live and on-demand content from ESPN Unlimited, including ESPN+ content and new digital service offerings slated for later this year, at no additional cost by the end of 2026. The resolution reflects the ongoing tension between content providers and distributors in the evolving streaming landscape.

Rising electricity prices across the US are fueling discontent, coinciding with the rapid growth of energy-intensive AI data centers and the upcoming midterm elections. Data from the EIA shows residential utility bills increased by 6% nationally in August, with states like Virginia, Illinois, and Ohio, where data centers are concentrated, experiencing significantly steeper rises exceeding 12%. The scale of data center energy consumption strains local grids, impacting prices. Politicians are responding, scrutinizing tech companies and their energy usage, leading to headwinds for data center expansion. PJM, the largest grid operator, faces imbalance, contributing to increased consumer costs.

Bitcoin fell below $95,000 amid a wider market pullback driven by AI spending concerns, mirroring a decline in tech stocks and highlighting growing interconnectivity. The sell-off, impacting crypto-linked stocks as well, reflects broader economic anxieties and deleveraging. Animoca Brands’ Yat Siu suggests institutional investors, unlike previous Bitcoin enthusiasts, may see this correction as a buying opportunity, potentially altering historical price cycle patterns and providing a buffer against downturns. They are less likely to expect a drop to $60,000.

StubHub’s stock plummeted 24% after it withheld current quarter financial guidance, citing a “long-term” focus, unsettling investors despite reporting solid Q3 revenue and GMS growth. Revenue rose 8% to $468.1 million and GMS increased 11% to $2.43 billion, exceeding expectations. A net loss of $1.33 billion was attributed to IPO-related stock compensation. Concerns persist around near-term visibility, competition and achieving sustainable profitability. Wedbush maintains an outperform rating despite expressing surprise at the lack of guidance.

Govini, a defense software startup, terminated founder Eric Gillespie’s board position after his arrest on charges related to soliciting sexual contact with a minor. The company emphasized its commitment to security and clarified that Gillespie, 57, hasn’t had access to classified data since stepping down as CEO years ago. The Pentagon is investigating potential security risks. The news comes after Govini surpassed $100 million in ARR and secured a $150 million investment. They also hold a $900 million government contract for supply chain risk analysis.

JPMorgan Chase has finalized agreements with fintech intermediaries, including Plaid and Yodlee, representing over 95% of data pulls from its systems, to guarantee compensation for customer data access. This resolves a long-standing dispute over data sharing. The agreements, while touted as a free market solution by JPMorgan, are viewed by some as anti-competitive and a barrier to entry for smaller fintech companies. The move could influence other banks to charge for data access, reshaping the open banking landscape, sparking concerns about its impact on innovation and consumer costs.

Wall Street experienced a volatile Friday, with the S&P 500 recovering from early losses amid tech sector concerns. Jim Cramer advised focusing on profitable companies like Nvidia, Microsoft, and Alphabet. The CNBC Investing Club is considering exiting Disney due to linear TV challenges and is reducing its BMY position after trial pause and management concerns. This week, the Club is monitoring earnings from Home Depot, TJX, Nvidia, and Palo Alto Networks, focusing on specific growth drivers and management strategies.