1. Nvidia Launches Slower Gaming Chip in China to Comply with U.S. Export Rules
Nvidia (NVDA) is preparing to launch a new gaming processor with slower performance in China to comply with U.S. export restrictions. Nvidia announced that it worked closely with the U.S. government during the development of the new Nvidia RTX 4090D processor, which has 11% fewer processing cores compared to non-Chinese models. Nvidia’s stock fell after the company announced its third-quarter financial results, raising concerns among analysts about the impact of export restrictions. Shares rose by 0.20% in pre-market trading with the chip adjustment news.
2. JD.Com Wins Lawsuit Against Rival Alibaba
American depositary receipts (ADRs) of Chinese e-commerce company JD.com (JD) rose by 0.90% in pre-market trading after the company announced it had won a lawsuit against rival Alibaba. It was alleged that Alibaba, along with two other companies, abused their market position and engaged in predatory practices that negatively affected JD.com, according to a ruling by a Chinese court. As a result of the ruling, Alibaba will pay a fine of 1 billion yuan (140.7 million dollars).
3. Google Settles $5 Billion Lawsuit Over Consumer Privacy
Alphabet (GOOGL) will settle a class-action lawsuit that accused Google’s search engine of secretly tracking the search history of millions of users. Federal judge Yvonne Gonzalez Rogers in Oakland, California, paused the trial scheduled for February 5 after the company’s attorneys stated they had reached a preliminary settlement. The terms of the agreement were not disclosed; however, Google’s shares were slightly down in pre-market trading.
4. Tesla Faces New Competition in China from Smartphone Maker Xiaomi
Tesla (TSLA) will face another competitor in China after electronics company Xiaomi launched its first electric car. The company, known for its affordable smartphones, announced the release of its SU7 sports model, which claims to have faster acceleration and a longer driving range compared to Tesla’s Model S and Porsche Taycan Turbo. The vehicle was designed by former engineers from Mercedes and BMW and will be available in 2024, potentially adding additional pressure on Tesla’s sales after a year marked by BYD’s consolidation of dominance in China.
5. Cathie Wood’s ARK Buys Bitcoin ETF and Sells Coinbase Shares
Cathie Wood’s Ark (ARKK) purchased 4.3 million shares of the ProShares Bitcoin Strategy ETF on Thursday, worth approximately $92 million. Also known as BITO, the ETF tracks the price of futures linked to the cryptocurrency. Ark has joined a group of firms, including asset management giant BlackRock, in applying for a Bitcoin ETF this year. The company also sold shares in cryptocurrency exchange Coinbase (COIN) worth $27.6 million.
Source: https://www.investopedia.com/5-things-to-know-before-the-stock-market-opens-december-29-2023-8420782
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