Market Beats | New York Could Save $500 Million on Migrant Budget; Citadel Founder Considers Selling Stake; MicroStrategy Faces Short Selling Pressure; U.S. DOJ Calls for Google to Sell Chrome

1. Citadel Founder Considers Selling Minority Stake

2. New York Could Save $500 Million on Migrant Budget

3. MicroStrategy Faces Short-Selling Pressure

4. Snowflake Stock Soars 30%

5. U.S. DOJ Calls for Google to Sell Chrome

6. Nvidia Reports Strong Earnings, Revenue Beats Estimates

7. U.S. SEC Chairman to Resign

1. Citadel Founder Considers Selling Minority Stake

Citadel founder Ken Griffin stated that he is open to selling a minority stake in his firm. Established in 1990, Citadel now manages $65 billion in assets.

Two years ago, Sequoia Capital purchased an $1.15 billion minority stake in Citadel Securities, valuing the company at $22 billion.

Griffin revealed that Citadel recently received an investment proposal from a private equity firm offering $5 billion in capital. However, he also hinted at the possibility of keeping the firm private for a longer period.

Earlier this month, Citadel’s rival, Millennium, also received a minority stake purchase offer from BlackRock.

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2. New York Could Save $500 Million on Migrant Budget

Budget documents from the New York City government indicate that the number of migrants entering the city has declined significantly since summer, potentially saving a total of $500 million in care costs over the current and next fiscal years.

New York City could save $436 million in the current fiscal year ending in June 2025 and another $59 million in the following year.

Since early 2022, over 223,000 migrants have arrived in New York, largely due to Texas Governor Greg Abbott’s decision to bus large numbers of migrants from border cities to the state.

These budget savings, coupled with higher tax revenues, will allow the city to hire 1,600 new police officers and allocate $600 million in housing and living assistance for low-income families.

Previously, the city was seeing over 3,000 migrants arriving each week, significantly straining its budget.

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3. MicroStrategy Faces Short-Selling Pressure

Citron Research, led by Andrew Left, announced on X (formerly Twitter) today that it has taken a short position on MicroStrategy, citing concerns that the company’s aggressive Bitcoin purchases have detached it from Bitcoin’s actual fundamentals.

However, Citron clarified that it remains bullish on Bitcoin itself and sees shorting MicroStrategy as a hedge against a long position in Bitcoin.

Following the announcement, MicroStrategy’s stock price dropped from a 15% gain earlier in the day to a 10% decline.

Meanwhile, Bitcoin surged past $98,000, and MicroStrategy’s Bitcoin holdings surpassed $100 billion.

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4. Snowflake Stock Soars 30%

Cloud software company Snowflake announced today that its largest revenue segment—software sales—is expected to rise from $906 million to $911 million in the quarter ending January, exceeding analyst expectations.

Additionally, adjusted operating margins are projected to reach 4%, well above the 1.7% expected by analysts.

Snowflake has developed AI-powered software that helps users process a wider range of data, making it significantly more user-friendly than competitors’ products.

Snowflake’s stock surged 30% today, reaching an all-time high.

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5. U.S. DOJ Calls for Google to Sell Chrome

The U.S. Department of Justice (DOJ) has ruled that Google’s parent company, Alphabet, violated antitrust laws and has proposed forcing the company to sell off its Chrome browser business.

Additionally, antitrust regulators have suggested divesting Google’s Android operating system division, though they acknowledge that this would be more difficult to achieve. As an alternative, they are considering imposing restrictions on the unit.

Google has pushed back against the proposal, arguing that it would severely harm consumer privacy and security while negatively impacting Google’s AI research and investments.

Following the news, Alphabet’s stock fell more than 6% today.

A five-member technology oversight committee will monitor Google’s compliance with the court ruling.

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6. Nvidia Reports Strong Earnings, Revenue Beats Estimates

Nvidia’s Q3 earnings report, released after Wednesday’s market close, showed a 94% revenue increase to $35.1 billion, while earnings per share hit $0.81—both surpassing expectations.

The company’s largest segment, its data center business, saw revenue double to $30.8 billion, beating forecasts.

Nvidia expects Q4 revenue to reach $37.5 billion, though the growth rate fell slightly short of the market’s elevated expectations.

Analysts believe Nvidia has little to worry about in the short term, as demand remains strong and the company is executing its strategy flawlessly.

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7. U.S. SEC Chairman to Resign

U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler announced that he will step down on January 20. His potential replacements include Republican commissioners Mark Uyeda or Hester Peirce.

During his tenure, Gensler implemented strict regulations, drawing heavy criticism from Wall Street and the cryptocurrency industry. He also pushed for mandatory ESG disclosures for corporations.

Trump’s appointment of a new SEC chairman could lead to the reversal of several of Gensler’s policies and a more relaxed regulatory approach toward cryptocurrencies.

One of Gensler’s key achievements was shortening the settlement time for stock trades.

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This content is sourced from Financial Times, Bloomberg, and The Real Deal, among other financial news outlets.