Major U.S. Averages Mostly Unchanged Near Noon
The major averages were mostly unchanged near noon on the penultimate trading day of the year as markets contend with light year-end volumes and a pullback in heavyweight tech and AI names that stalled last week's strong rally. Investors are also awaiting the release of the Federal Reserve's December meeting minutes and digesting recent economic signals that have fueled debate over the pace of future rate cuts.Looking to commodities, gold edged higher following yesterday's sharp losses, while oil is fractionally higher ahead of the API crude numbers set for release this afternoon.Get caught up quickly on the top news and calls moving stocks with this Midday Fly By.1. STOCK NEWS:Meta PlatformsAI startup Manus, with the Wall Street Journal reporting that Meta is paying over $2B for the businessApplied Digitalits cloud computing business with Ekso BionicsOn24by Cvent for $8.10 per share in cashCiti'sboard approved a plan to2. WALL STREET CALLS:ArgusBHP Groupto Buy on "firming" commodity pricesMereo BioPharmato Hold at JefferiesBenchmarkLindblad Expeditionswith a Buy on high growth visibilityStephensof Rubrik, Commvault, and AvePointwith Overweight ratings and Varonisat Equal Weight3. AROUND THE WEB:SMICintends to acquire the remaining 49% stake in unit SMNC for Y40.6B, or $5.79B, giving the company full control of the subsidiary,The U.S. government has granted Samsung Electronicsand SK Hynixan annual license to bring chip manufacturing equipment to their Chinese facilities for 2026,Power-hungry AI projects are benefiting Caterpillaras a range of customers looks to purchase the company's engines and generators,Softbankhas completed its $40B investment in OpenAI,Warner Bros. Discoveryis expected to reject the latest offer made by Paramount Skydance,4. MOVERS:Hycroft Miningincreases after filing aBoeinggains after being awarded afor the F-15 Israel Program and a ceiling $4.2B modification to a previously awarded Air Force contract for E-4B contractor logistic serviceEnergy Fuelsfalls after Roth Capital said shares of the companyTruth Medialower after Yorkville America launchedon the New York Stock Exchange5. EARNINGS/GUIDANCE:Ree Automotive, with EPS higher year-over-yearEtoiles CapitalCemtrexreported, with revenue higher year-over-yearAMTD IDEA Groupreported, with CFO Xavier Zee commenting, "We are proud to deliver another half year of strong performance"INDEXES:Near midday, the Dow was down 0.20%, or 98.77, to 48,363.16, the Nasdaq was down 0.04%, or 9.76, to 23,464.59, and the S&P 500 was down 0.06%, or 3.88, to 6,901.86.
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Investment Opportunity Amid Meta Platforms' Stock Pullback
- Advertising Revenue Growth: Meta's revenue in Q4 2025 rose 24% year-over-year to $59.9 billion, driven by an 18% increase in ad impressions, indicating strong user engagement; despite a slowdown in ad price growth, the sheer volume of ads suggests sustained competitiveness in the advertising market.
- Expanding User Base: The company reported 3.58 billion daily active users in December, a 7% increase year-over-year, providing robust support for future revenue growth, with management guiding for Q1 2026 revenue between $53.5 billion and $56.5 billion, implying approximately 30% year-over-year growth.
- Strong Financial Position: Despite heavy investments in AI infrastructure, Meta generated $43.6 billion in free cash flow in 2025, ending the year with $81.6 billion in cash and equivalents, significantly exceeding $58.7 billion in long-term debt, thus providing ample financial flexibility for ambitious projects.
- Surging Capital Expenditures: Meta's capital expenditures reached $72.2 billion in 2025, with expectations to rise dramatically to $115 billion to $135 billion in 2026, reflecting a 73% year-over-year increase; while this presents growth opportunities, it may also pressure free cash flow and profit margins, necessitating careful risk assessment by investors.
Meta Acquires AI Networking Platform Moltbook
- Acquisition Deal: Meta has acquired the social networking platform Moltbook for an undisclosed amount, with the deal expected to close in mid-March, which will further enhance Meta's positioning in the AI sector.
- Founders Joining: Moltbook's founders, Matt Schlicht and Ben Parr, will join Meta's Superintelligence Labs, likely bringing new perspectives and innovations to Meta's AI initiatives.
- Platform Background: Launched in late January 2023, Moltbook aims to provide an experimental 'third space' for AI agents, developed significantly with the help of Schlicht's personal AI assistant, Clawd Clawderberg.
- Customer Service Continuity: Meta has stated that existing Moltbook customers can temporarily continue using the platform, ensuring user experience remains unaffected while preparing for future integration.
Meta Acquires Moltbook and Welcomes Two Founders to the MSL Team
Meta's Acquisition: Meta has acquired Moltbook, a social network specifically designed for AI agents, which has been highly anticipated in the tech community.
Founders Joining Meta: The founders of Moltbook, Matt Schlicht and Ben Parr, will be joining Meta's Superintelligence Labs (MSL) as part of the acquisition.
Leadership: The acquisition and integration of Moltbook into Meta's operations will be led by former Scale AI CEO, Alexandr Wang.
Focus on AI Development: This move reflects Meta's ongoing commitment to advancing AI technologies and enhancing its capabilities in the field.
META PURCHASES MOLTBOOK - AXIOS
Meta's Acquisition: Meta has acquired the company Moltbook, enhancing its capabilities in the digital space.
Strategic Move: This acquisition is part of Meta's strategy to expand its offerings and strengthen its position in the market.
Billionaires Bet on AI's Future Wealth Potential
- Investor Moves: Billionaire Stanley Druckenmiller's investment strategy in the AI sector is noteworthy, having gained over 1,300% and 500% from investments in Nvidia and Palantir Technologies over the past five years, reflecting strong confidence in the AI industry.
- Portfolio Adjustments: In the recent quarter, Druckenmiller closed his position in Meta Platforms, which accounted for only 1.3% of his portfolio, while increasing his stakes in Alphabet and Amazon to 2.6% and 3.7%, respectively, indicating recognition of their AI growth potential.
- Revenue Growth: Alphabet's Google Cloud saw a 48% revenue increase to over $17 billion in the latest quarter, highlighting strong demand for AI infrastructure, while Amazon's AWS achieved a $142 billion annual revenue run rate, showcasing robust performance in the AI business.
- Strategic Choices: Druckenmiller's investment choices suggest that Alphabet and Amazon are core players in the AI space for investors seeking immediate returns, while Meta may attract those looking for long-term AI innovation opportunities.
Stanley Druckenmiller Doubles Down on AI Investments
- Significant Returns: Stanley Druckenmiller's past investments in Nvidia and Palantir have surged 1,300% and over 500% respectively in the last five years, highlighting the immense wealth-building potential in the AI sector that has drawn the attention of many billionaires.
- Recent Investment Moves: In the latest quarter, Druckenmiller closed his position in a company known for aggressive AI spending while increasing stakes in two other AI firms generating billion-dollar revenues, indicating his confidence and strategic positioning in the AI future.
- Industry Leaders' Performance: Alphabet's Google Cloud saw a 48% revenue increase to over $17 billion amid soaring demand for AI infrastructure, while AWS reported a $142 billion annual revenue run rate, showcasing the robust market potential of cloud computing combined with AI.
- Investment Strategy Recommendations: For investors looking to profit in AI, Alphabet and Amazon are currently excellent choices, while Meta represents future innovation; investors should select companies based on their individual investment strategies.
Investment Opportunity Amid Meta Platforms' Stock Pullback
- Advertising Revenue Growth: Meta's revenue in Q4 2025 rose 24% year-over-year to $59.9 billion, driven by an 18% increase in ad impressions, indicating strong user engagement; despite a slowdown in ad price growth, the sheer volume of ads suggests sustained competitiveness in the advertising market.
- Expanding User Base: The company reported 3.58 billion daily active users in December, a 7% increase year-over-year, providing robust support for future revenue growth, with management guiding for Q1 2026 revenue between $53.5 billion and $56.5 billion, implying approximately 30% year-over-year growth.
- Strong Financial Position: Despite heavy investments in AI infrastructure, Meta generated $43.6 billion in free cash flow in 2025, ending the year with $81.6 billion in cash and equivalents, significantly exceeding $58.7 billion in long-term debt, thus providing ample financial flexibility for ambitious projects.
- Surging Capital Expenditures: Meta's capital expenditures reached $72.2 billion in 2025, with expectations to rise dramatically to $115 billion to $135 billion in 2026, reflecting a 73% year-over-year increase; while this presents growth opportunities, it may also pressure free cash flow and profit margins, necessitating careful risk assessment by investors.
Meta Acquires AI Networking Platform Moltbook
- Acquisition Deal: Meta has acquired the social networking platform Moltbook for an undisclosed amount, with the deal expected to close in mid-March, which will further enhance Meta's positioning in the AI sector.
- Founders Joining: Moltbook's founders, Matt Schlicht and Ben Parr, will join Meta's Superintelligence Labs, likely bringing new perspectives and innovations to Meta's AI initiatives.
- Platform Background: Launched in late January 2023, Moltbook aims to provide an experimental 'third space' for AI agents, developed significantly with the help of Schlicht's personal AI assistant, Clawd Clawderberg.
- Customer Service Continuity: Meta has stated that existing Moltbook customers can temporarily continue using the platform, ensuring user experience remains unaffected while preparing for future integration.
Meta Acquires Moltbook and Welcomes Two Founders to the MSL Team
Meta's Acquisition: Meta has acquired Moltbook, a social network specifically designed for AI agents, which has been highly anticipated in the tech community.
Founders Joining Meta: The founders of Moltbook, Matt Schlicht and Ben Parr, will be joining Meta's Superintelligence Labs (MSL) as part of the acquisition.
Leadership: The acquisition and integration of Moltbook into Meta's operations will be led by former Scale AI CEO, Alexandr Wang.
Focus on AI Development: This move reflects Meta's ongoing commitment to advancing AI technologies and enhancing its capabilities in the field.
META PURCHASES MOLTBOOK - AXIOS
Meta's Acquisition: Meta has acquired the company Moltbook, enhancing its capabilities in the digital space.
Strategic Move: This acquisition is part of Meta's strategy to expand its offerings and strengthen its position in the market.
Billionaires Bet on AI's Future Wealth Potential
- Investor Moves: Billionaire Stanley Druckenmiller's investment strategy in the AI sector is noteworthy, having gained over 1,300% and 500% from investments in Nvidia and Palantir Technologies over the past five years, reflecting strong confidence in the AI industry.
- Portfolio Adjustments: In the recent quarter, Druckenmiller closed his position in Meta Platforms, which accounted for only 1.3% of his portfolio, while increasing his stakes in Alphabet and Amazon to 2.6% and 3.7%, respectively, indicating recognition of their AI growth potential.
- Revenue Growth: Alphabet's Google Cloud saw a 48% revenue increase to over $17 billion in the latest quarter, highlighting strong demand for AI infrastructure, while Amazon's AWS achieved a $142 billion annual revenue run rate, showcasing robust performance in the AI business.
- Strategic Choices: Druckenmiller's investment choices suggest that Alphabet and Amazon are core players in the AI space for investors seeking immediate returns, while Meta may attract those looking for long-term AI innovation opportunities.
Stanley Druckenmiller Doubles Down on AI Investments
- Significant Returns: Stanley Druckenmiller's past investments in Nvidia and Palantir have surged 1,300% and over 500% respectively in the last five years, highlighting the immense wealth-building potential in the AI sector that has drawn the attention of many billionaires.
- Recent Investment Moves: In the latest quarter, Druckenmiller closed his position in a company known for aggressive AI spending while increasing stakes in two other AI firms generating billion-dollar revenues, indicating his confidence and strategic positioning in the AI future.
- Industry Leaders' Performance: Alphabet's Google Cloud saw a 48% revenue increase to over $17 billion amid soaring demand for AI infrastructure, while AWS reported a $142 billion annual revenue run rate, showcasing the robust market potential of cloud computing combined with AI.
- Investment Strategy Recommendations: For investors looking to profit in AI, Alphabet and Amazon are currently excellent choices, while Meta represents future innovation; investors should select companies based on their individual investment strategies.
