U.S. stock markets fluctuated sharply on Thursday following President Trump's remarks on Iran, while Amazon's potential acquisition of satellite firm Globalstar highlights its push into space-based internet services, and Microsoft faces criticism over AI spending cuts.
Geopolitical News Drives Market Swings
- Stocks initially dropped after President Donald Trump's hawkish speech on Iran, raising escalation concerns and oil price surges.
- Recovery occurred after Iranian state media announced cooperation with Oman on the Strait of Hormuz protocol, easing oil pressures.
- The S&P 500 briefly turned positive for the day.
- Analysts from CNBC's Investing Club advised caution, suggesting the market needs to become more oversold for opportunistic buys.
Amazon's Satellite Internet Ambitions
- The Financial Times reports Amazon is in negotiations to acquire Globalstar, a satellite company.
- This move aims to advance Amazon's Leo internet-from-space service, competing with SpaceX's Starlink, which has over 10,000 satellites and 10 million users.
- Apple previously took a 20% stake in Globalstar to support iPhone satellite services.
- Amazon CEO Andy Jassy described the satellite network as "mission critical," indicating strategic importance for enhancing rural internet access and Prime membership appeal.
Microsoft's AI Spending Scrutiny
- A Bloomberg profile highlighted decisions by Microsoft CFO Amy Hood that may have caused the company to lag in the AI race.
- Critics argue that tightening AI spending at a crucial time was a misstep, as competitors increased investments.
- Microsoft's stock has fallen 23% year-to-date, though analysts maintain a hold rating with a $600 price target, expressing confidence in management's ability to adapt.
Stocks in Focus
- Gainers on Thursday included Corning, Linde, and Costco, bucking the down market trend.
- Other stocks discussed in the CNBC Investing Club's segment were Brinker, Texas Roadhouse, and Constellation Brands.