1. Trump Demands Underperforming Federal Employees Resign
2. Amazon’s Hardware Lags Behind AWS Growth
3. U.S. Bans DeepSeek on Government Devices
4. Electric Truck Maker Nikola Considers Bankruptcy
5. Pinterest Shares Surge 18%
6. China’s Tech Index Enters Bull Market
7. Ford Warns of Sharp Profit Decline
1. Trump Demands Underperforming Federal Employees Resign
Sources revealed that U.S. President Donald Trump has demanded that underperforming federal government employees voluntarily resign as part of an effort to streamline and consolidate the government workforce. More than 50,000 employees have already complied with his directive.
The U.S. Office of Personnel Management (OPM) has instructed all government agencies to provide a list of employees whose performance ratings have been less than perfect at least once in the past three years.
Trump has pledged to implement stricter performance evaluation standards to remove underperforming employees from government positions.
If the federal workforce is reduced by 10%, it will return to 2015 levels.
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2. Amazon’s Hardware Lags Behind AWS Growth
Amazon CEO Andy Jassy has warned that despite the company’s plan to invest $100 billion this year in AI and data center infrastructure, power supply and hardware shortages could still hinder cloud computing expansion.
Jassy noted that both third-party and in-house chip supplies are constrained, limiting the speed at which AWS can launch new data centers.
Last week, Microsoft also stated that the number of data centers is struggling to keep up with demand for AI products, thereby restricting cloud revenue growth.
In the last quarter of 2023, Amazon’s AI-related capital expenditures reached $26.3 billion.
Source: Bloomberg – Amazon, Echoing Microsoft, Says It Can’t Keep Up With AI Demand
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3. U.S. Bans DeepSeek on Government Devices
Two lawmakers from the U.S. House Intelligence Committee have proposed banning the installation of China-based DeepSeek applications on government-issued devices.
The bipartisan lawmakers argue that U.S. users of DeepSeek could inadvertently expose sensitive contracts, documents, and financial data.
According to Bloomberg, several employees at the U.S. Department of Defense used DeepSeek on their work computers for at least two days before access was subsequently restricted.
The lawmakers cited research indicating that DeepSeek collects and stores data from U.S. users.
Source: Bloomberg – Lawmakers Seek to Ban DeepSeek App on US Government Devices
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4. Electric Truck Maker Nikola Considers Bankruptcy
Sources revealed that electric truck manufacturer Nikola is considering filing for bankruptcy, marking a dramatic fall from its pandemic-era status as a stock market darling to a scandal-plagued company.
In 2023, Nikola recalled its electric trucks due to fire hazards, leading to significant delays in sales.
The company is currently working with legal and financial advisors to prepare Chapter 11 bankruptcy filings.
A spokesperson for Nikola stated that the company is also exploring alternative options, including raising funds or restructuring debt.
Following the news, Nikola’s stock plummeted by as much as 28% to $0.54 per share.
Source: Bloomberg – Nikola Considers Bankruptcy, Capping EV Maker’s Wild Ride
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5. Pinterest Shares Surge 18%
On Thursday, Pinterest reported an impressive fourth-quarter earnings report, with revenue growing 18% year-over-year to $1.15 billion, slightly exceeding analysts’ expectations. This marks the company’s first-ever quarter surpassing $1 billion in revenue.
Despite intense competition in the social media sector, Pinterest’s advertising business remains strong.
Net earnings per share came in at $0.56, below the expected $0.65, while monthly active users increased to 553 million, surpassing the estimated 547 million.
Pinterest forecasts first-quarter revenue between $837 million and $852 million, with projected profits of $170 million—far exceeding Wall Street’s expectation of $141 million.
Following the earnings release, Pinterest’s stock surged 18% in after-hours trading.
Source: Bloomberg – Pinterest’s Revenue, Outlook Exceed Estimates; Shares Soar
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6. China’s Tech Index Enters Bull Market
Today, the Hang Seng Tech Index in Hong Kong rose by as much as 0.5%, marking a 20% gain from its lowest point in January and officially entering a technical bull market. Xiaomi, Li Auto, and Kingdee contributed the most to the index’s rise.
However, volatility remains high, as the tech index also entered a technical bear market within the past month.
Despite concerns over the U.S.’s newly imposed 10% tariff on Chinese goods, positive developments surrounding DeepSeek’s AI model have helped boost market sentiment.
Nevertheless, the index remains down more than 50% from its early 2021 peak.
Source: Bloomberg – Bitcoin Slides Below $90,000 as Crypto Selloff Gathers Steam
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7. Ford Warns of Sharp Profit Decline
Ford, the second-largest U.S. automaker, warned that its 2024 earnings before interest and taxes (EBIT) could range from $7 billion to $8.5 billion—significantly below last year’s $10.2 billion.
Incoming CFO Sherry House noted that overall vehicle prices may drop by 2% this year. Additionally, Ford’s first-quarter profits could be strained due to the launch of the new Lincoln Navigator and Ford Expedition.
Evercore ISI analyst Chris McNally wrote that wholesale vehicle volumes in 2025 could be significantly lower than last year’s.
Following the warning, Ford’s stock plunged 6.1%, reaching its lowest level in over four years.
Source: Bloomberg – Ford Falls After Warning of Steep Profit Decline This Year
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This report is based on financial news from Financial Times, Bloomberg, he Real Deal, and other media outlets.