5 Top Stories

Tesla Pops; US v. Google Underway; Meta’s New AI

Every day, we handpick the 5 Top Stories stock market investors need to know. In 5 minutes, you’ll learn the stocks, CEOs, and money managers moving markets.

Tesla Pops on Dojo Prospects

Morgan Stanley analysts said they believe Tesla’s [TSLA] Dojo supercomputer could add up to $500bn to the electric vehicle (EV) maker’s value, sending the company’s shares up 7% on Monday. Meanwhile, rivals are ramping up their tech in order to challenge Tesla’s supremacy. Mercedes-Benz [MBG.DE] unveiled a new operating system last week, while Lucid [LCID] previewed a massage feature in the seats of its EVs. On Monday, BMW [BMW.DE] announced it is to invest £600m in its UK factories to make the Mini brand all-electric by 2030.

Arm to Raise IPO Price Range?

Arm’s turbo-hyped IPO is set to take place on Wednesday; the stock will begin trading the following day. The sale is about six times over-subscribed, according to Bloomberg sources, and the company is reportedly weighing whether to raise the price range, having initially filed for $47–51 a share, which would give it a value of up to $54.5bn. Meanwhile, Instacart is targeting a valuation of up to $9.3bn. This is, however, less than a quarter of the company’s valuation in 2021.

US v. Google Gets Underway

Google [GOOGL] and the US Department of Justice (DoJ) go to court on Tuesday in what will prove to be a landmark antitrust case. The trial will focus on whether the tech titan abused its monopoly on internet search. A key question will be whether the DoJ can demonstrate that Google’s contracts limited the possibilities available to its competitors. California will be paying close attention to Washington this week: this trial is only the beginning of a broader governmental attempt to rein in big tech.  

Meta’s New AI

Meta [META] is working to develop an artificial intelligence (AI) system to rival OpenAI’s GPT-4, which underpins its ChatGPT bot. Having launched its most recent large language model, Llama 2, only two months ago, the Facebook parent hopes to start training its new model next year, the Wall Street Journal reported. It is thought it will be open source, as Meta’s previous AI models have been, in line with the philosophy of founder Mark Zuckerberg.

Alibaba Cloud Concerns

Ex-group CEO Daniel Zhang unexpectedly resigned as head of Alibaba’s [9988.HK] Cloud Intelligence Group on Monday, after just two months at the helm. The unit is expected to go public next year, but has seen poor sales growth in recent times; this latest news could intensify investor concerns around its viability. The cloud division is one of five slated spin-off IPOs. The Alibaba share price fell as much as 4.4% on Monday.

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