Breakfast | Massive long positions in US stock futures imply downside risks for US stocks, ChatGPT's traffic declines for the first time.
Meta application Threads is scheduled to launch in the United States and the United Kingdom, but the app store in some European countries has not yet displayed it. Apple faces a $7 billion compensation for 4G patent infringement. TENCENT responded that it may cooperate with Meta VR headset, but declined to comment further. TENCENT will release a self-developed vector database for large-scale model training. Moderna plans to invest $1 billion in projects in China. Alibaba denies rumors about Youku and Tudou. The CEO of Yahoo plans to relist the company.
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Market Overview
US stock index futures opened slightly lower, with Nasdaq futures and Dow futures down about 0.1%
Top Stocks
ChatGPT's website traffic declines for the first time, experts warn of bubble risks
According to Similarweb, a web analytics company, ChatGPT's global website traffic declined by 9.7% MoM in June, marking the first decline since its launch.
Apple faces $7 billion compensation in 4G patent lawsuit
The long-lasting patent battle between Apple and Optis continues, as Apple failed to convince the UK Court of Appeal, which means it will have to pay up to $7 billion in compensation. Optis sued Apple in the UK in 2019, claiming that Apple's products infringed on its two 4G patents.
Meta Platforms' new app Threads unable to launch in the EU
According to The Independent, Meta Platforms' social application Threads, which is similar to Twitter, is temporarily unable to launch in the EU due to privacy laws.
TENCENT responds to potential collaboration with Meta Platforms on VR headsets: no comment
It is reported that Meta Platforms is in talks with Chinese companies and plans to introduce VR headsets to the Chinese market. Discussions have been held with several Chinese tech companies, and a collaboration with TENCENT is currently possible.
Moderna makes large-scale investment in China projectsThe American vaccine manufacturer Moderna is expected to officially announce its investment project in China on July 5th, with an investment scale of up to $1 billion.
Toyota has announced a major breakthrough in battery technology, which could halve the weight, size, and cost of batteries, providing a significant boost to the advancement of electric vehicles. The company plans to start producing solid-state batteries for electric vehicles in 2027.
Meta Platforms Platforms Platforms Platforms unveils algorithmic precision: targeting you accurately
Meta Platforms Platforms Platforms Platforms has recently introduced 22 different explanatory cards, explaining how AI affects the content users see on Facebook and Instagram.
Morgan Stanley: Tesla's deliveries expected to reach 1.9 million this year
Tesla's inventory continues to grow, and with ongoing price reductions, Tesla is poised to become the ultimate winner in the electrification of the American automotive market, while other traditional car manufacturers will suffer a heavy blow.
BYD's success in Thailand attracts Chery, Changan, SAIC Motor, and Hezhong
Chery plans to enter the Thai market in early 2024, considering it as a strategic investment location for establishing a production base. Chery plans to introduce the Omoda 5 electric SUV to the Thai market. Since the beginning of this year, several Chinese automakers, including BYD, SAIC Motor, and Hezhong, have expanded their investments or established new factories in Thailand to localize their automobile production.
BYD Executive Vice President Li Ke: BYD is negotiating the introduction of direct lithium extraction technology in ChileBYD is negotiating with the Chilean government and companies including SQM on new lithium extraction technology to replace the current evaporation pond-based technology. After obtaining preferential prices for lithium raw materials from SQM, BYD is building an electrode factory in northern Chile.
TENCENT to Release Self-developed Large-scale Model Training Vector Database
TENCENT Cloud's self-developed vector database is designed for large-scale model training, reducing the time required for enterprises to access large models from one month to three days. It is reported that this database has been applied in TENCENT Video, QQ Browser's AI retrieval and query scenarios.
Alibaba Denies Rumors about Youku and Tudou
There is news about Alibaba's Digital Media and Entertainment Group planning a new strategic plan for its video streaming platforms Youku and Tudou. The plan includes two points: the injection of the two platforms' assets into Alibaba Pictures, and the possibility of the video platforms going public separately. Alibaba's Digital Media and Entertainment Group's PR department responded that the information is not true.
IPO Opportunities
UK Media: Yahoo CEO Plans to Relist the Company
Yahoo CEO, Ross Levinsohn, stated that the company plans to relist and is financially prepared. The company has a strong balance sheet and profitability.
Shein Reportedly in Talks with Investment Banks about US IPO
It is reported that e-commerce platform Shein is in contact with at least three investment banks, including Goldman Sachs, Morgan Stanley, and JPMorgan, regarding its potential US IPO. The company has been communicating with the New York Stock Exchange and NASDAQ.
Macro and Strategy
US Stocks' Second Half Rally Uncertain? Citi: Derivative Positions Indicate Pullback Risk
Investors heavily bought US stock futures at the end of June, making the positions look "very large" and increasing the risk of a pullback. Last week, S&P 500 futures added approximately $7.1 billion in long positions. Considering how far the market has already gone, investors may still liquidate their positions to protect the gains in the coming week.UBS Warning: The rally in US stocks won't last, higher interest rates and economic downturn will stifle the rebound
Don't expect the strong performance of US stocks in the first half of the year to last much longer. Higher interest rates and a slowdown in economic growth will dampen the stock market rebound. Investors should prepare for a more subdued performance in the remaining time of the year.
Top Japanese equity fund Alma Eikoh reduces holdings in chip stocks
Alma Eikoh, a large Japanese equity fund that has performed well this year, has reduced its position in Renesas Electronics Corp. by nearly one-third in the past month. The stock has already more than doubled this year. Renesas Electronics needs to cool down first. Currently, the stock price is 12 times the expected earnings, twice as high as a year ago.
