Social Media Takes the Stand

Social Media Takes the Stand

A landmark social media addiction trial has kicked off in California, with top tech executives expected to testify. The plaintiff, a 19-year-old woman, claims that the design of platforms’ algorithms made her addicted to social media and harmed her mental health. Defendants include Meta [META], ByteDance and Alphabet’s [GOOGL] Google; Snapchat [SNAP] recently settled. The case is the first in a wave of lawsuits challenging Section 230 protections.

Red Faces over TikTok Outage

TikTok’s new US owner has apologized for a weekend outage that affected thousands of users. According to Downdetector, more than 600,000 reports came in, with problems including videos looping on “For You” feeds and content not displaying. TikTok USDS Joint Venture LLC said the disruption followed a power outage at a US data center, and it is working with Oracle [ORCL] — its US cloud partner — to restore services.

Green Light for New Microsoft Data Centers

Local authorities have approved Microsoft’s [MSFT] plans to build 15 additional data centers in Mount Pleasant, Wisconsin, adjacent to its existing facility. The project covers two lots, totaling nearly 9 million square feet and including three substations, CNBC reported, with land acquisitions completed in 2023 and 2024. Valued at over $13bn for tax purposes, the expansion will support revenue from OpenAI and other clients.

Crypto Industry Outlook after President Trump’s First Year

President Trump’s position on cryptocurrency has transformed significantly during his second term, signing the GENIUS Act to regulate stablecoins and supporting digital currency innovation. However, crypto stocks have struggled in recent months, largely due to regulatory uncertainty and the October liquidation event. OPTO unpacks how newfound regulatory clarity could attract institutional investment and end the “mini crypto winter”.

US Steps up Korea Tariffs; EU/India Trade Deal

US President Donald Trump announced he is raising tariffs on South Korean imports to 25%, up from 15. The levies will affect automobiles, lumber, pharmaceuticals and other reciprocal tariffs, as President Trump accused South Korean lawmakers of delaying approvals. Elsewhere, the EU and India have struck a landmark trade deal, reducing tariffs and expanding market access across 2 billion people and nearly 25% of global GDP.

Massive Boost to US Rare Earth Supply Chain

The Trump administration will invest $1.6bn in US critical minerals company USA Rare Earth [USAR], acquiring a government stake as part of efforts to curb China’s dominance in rare earths. The funding will support mining, processing, metal-making and magnet production from the firm’s heavy rare earth deposits, vital for defense and tech applications. US Secretary of Commerce Howard Lutnick said the move strengthens supply chain resilience and reduces reliance on foreign sources.

Celestica’s AI-Powered Boom

With a client base including hyperscalers and diversified operations, Toronto-based electronic manufacturing services (EMS) firm Celestica [CLS] could be one of the clear winners of the next stage of artificial intelligence spending. However, the caprices of hyperscalers can change a stock’s prospects overnight. In the run-up to Celestica’s Q4 earnings after market close on Wednesday, OPTO examines the headwinds and tailwinds facing CLS.