?? Apple to invest $500B in US, Tesla's value drops below $1T amid Europe sales slump and more.
Hello, dear readers! ??We hope you had a great week.? Here's your weekly update on the latest news from finance and markets.
Florida sued Target on Thursday, alleging that the retailer concealed risks associated with its diversity and social programs—risks that sparked customer backlash and a significant drop in its market value. Apple announced it will invest $500 billion in the U.S. over the next four years. The plan includes building a large AI server factory in Texas and creating around 20,000 R&D jobs nationwide. Tesla’s stock dropped 8% on Tuesday, lowering its market value to under $1 trillion for the first time since November. General Motors announced it will boost its quarterly dividend by 25%—from 12 to 15 cents per share, effective April 2025—and initiate a new $6 billion share buyback. Amazon has introduced Alexa+, its first major update in over a decade, now powered by generative AI.
Stay tuned for more updates in the dynamic world of finance and markets! ??
Florida sues Target over alleged DEI shareholder fraud
Florida sued Target on Thursday, alleging that the retailer concealed risks associated with its diversity and social programs—risks that sparked customer backlash and a significant drop in its market value. The lawsuit, filed by Florida’s State Board of Administration in Fort Myers federal court, claims that Target misled investors about its DEI and ESG efforts and that CEO Brian Cornell downplayed the fallout from a controversial May 2023 Pride Month campaign. Following the backlash, Target removed some themed merchandise and announced on January 24 that it would end its DEI initiatives this year. Similar lawsuits have also been filed in Fort Myers.
Apple to invest $500B in US, create 20K research jobs in four years
Apple announced it will invest $500 billion in the U.S. over the next four years. The plan includes building a large AI server factory in Texas and creating around 20,000 R&D jobs nationwide. This spending covers everything from buying U.S.-made parts to filming Apple TV+ content. Although details about existing U.S. spending weren't provided, analysts see the move as a political nod to the Trump administration amid possible tariffs on products assembled in China. Apple already spends over $150 billion a year in the U.S., meaning it could meet this pledge in 3–4 years. The company made a similar, smaller commitment in 2018, and its shares rose 1.2% following the announcement.
Tesla's value drops below $1T amid Europe sales slump
Tesla’s stock dropped 8% on Tuesday, lowering its market value to under $1 trillion for the first time since November. Data from the European Automobile Manufacturers Association showed that Tesla’s sales in Europe fell 45% in January, even as overall EV sales in the region rose 37%. This decline highlights ongoing global delivery challenges and adds pressure on CEO Elon Musk to introduce lower-priced and autonomous models. Shares fell to $305, giving Tesla a market cap of $981 billion—more than double the combined value of several major automakers. Investors are also worried that Musk’s multiple roles, including overseeing government downsizing and running other companies, might distract him from Tesla. Additionally, concerns about high valuation ratios and potential over-investment in artificial intelligence are weighing on the stock. Despite Tuesday’s drop, Tesla’s shares are still up 51% over the past year, though they are down 24% year-to-date.
GM raises dividend 25% and announces $6B share buyback
General Motors announced it will boost its quarterly dividend by 25%—from 12 to 15 cents per share, effective April 2025—and initiate a new $6 billion share buyback, with $2 billion repurchased by mid-year. This move, which lifted its shares by about 6% in early trading, reflects GM’s confidence in its future despite economic and tariff uncertainties. The automaker continues to balance returning capital to shareholders with investing in its growing electric vehicle lineup and maintaining a strong balance sheet, targeting further share count reduction and robust financial performance in 2025.
Amazon unveils AI-powered Alexa voice assistant
Amazon has introduced Alexa+, its first major update in over a decade, now powered by generative AI. The new service—free for Prime members and $19.99 per month for others—will start rolling out in March. Alexa+ can handle multiple prompts in sequence and take actions on users' behalf, using technology from Amazon's Bedrock platform and AI startup Anthropic. This update aims to revitalize Alexa amid growing competition from Siri and Google Assistant.
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