AI Race Heats Up, Beauty Stocks Tumble & Super Bowl Ads Hit $8M+🏈

Money Masters' Market Movers Week 7

February 12, 2025

👆 Help us fund rewards on our MoneyMasters App by clicking on our partners' ads. 🙏

Dear Money Master,

This week, we cover Europe’s massive AI push, beauty stocks struggling, and Coca-Cola beating expectations. The AI race is now a three-way battle, as the EU commits an additional €50 billion, bringing its total AI investment to €200 billion. The goal? Compete with China and the U.S. in AI development. Meanwhile, Affirm delivered a surprise profit, and Super Bowl ad prices hit new records.

In today’s deep dive, we explore how Europe’s AI ambitions compare to the U.S. and China. Will Europe’s strategy pay off, or is it too late? Let’s find out. 🤖💡

📰 Your Daily Financial Digest - February 12th, 2025

🌍 Economics & Finance:

  1. Inflation Rises More Than Expected, Markets React 📈

    January CPI increased 0.5% month-over-month, pushing annual inflation to 3%, above forecasts. Egg prices soared 53% YoY, while markets tumbled over fears of prolonged high rates. Read More

  2. Chinese Companies Set for Record Dividend Payouts 💰
    Chinese firms paid a record $328B in dividends last year, with payouts expected to reach $3.5T yuan in 2025. State-owned enterprises lead the surge, driven by government incentives. Read More

  3. Super Bowl Ads Sell for $8M Each as Brands Bet Big 🏈 
    Fox sold out its Super Bowl ad slots months in advance, with top brands like Nike and Dunkin’ spending millions. Live sports remain a massive draw for advertisers. Read More

  4. Beauty Stocks Crumble as E.l.f. and Estee Lauder Disappoint 💄
    E.l.f. shares plummeted 29% and Estee Lauder dropped 22% after weak earnings and guidance cuts. The beauty sector faces slowing demand and rising costs. Read More

  5. Mortgage Refinance Demand Hits Highest Level Since October 🏡

    With mortgage rates dipping slightly, refinance applications surged 10% in a week and 33% year-over-year. However, home purchase applications fell by 2% due to high prices. Read More

  6. India’s Inflation Slows for Third Consecutive Month 🇮🇳

    January inflation eased to 4.31%, the lowest since August 2024, driven by cooling food prices. This strengthens expectations for further rate cuts by India’s central bank. Read More

💻 Technology:

  1. Affirm Expands BNPL to Debit Cards with FIS Partnership 🏦 
    Affirm is bringing its "buy now, pay later" service to banks, enabling millions of debit card users to split payments into installments without using credit. Read More

  2. BYD Unveils AI-Powered Driver Assistance for Budget EVs 🚗 
    BYD’s new driver-assistance tech, powered by DeepSeek AI, will be standard on its vehicles, including models under $10,000—redefining affordability in smart driving. Read More

  3. Elon Musk Leads $97.4B Bid to Take Over OpenAI 🤖
    Musk and investors seek to buy OpenAI, aiming to revert it to an open-source model. Altman declined, sarcastically offering to buy Twitter instead.  Read More

💹Earnings:

  1. Affirm Posts Strong Revenue and Surprise Profit 📈 
    Affirm posted a surprise profit of $0.23 per share, crushing expectations for a $0.15 loss. Revenue hit $866M, up 47%, driven by holiday sales and consumer electronics demand. Read More

  2. Gucci Sales Plunge 24% as Kering Struggles in Luxury Market 👛 
    Kering reported a 12% revenue drop, despite slightly beating forecasts. Gucci, nearly half of Kering’s revenue, saw a 24% sales decline, signaling ongoing struggles in the luxury sector. Read More

  3. Coca-Cola Beats Estimates as Global Demand Rises 🥤 
    Coke’s revenue jumped 6% to $11.54B, beating expectations. Organic revenue surged 14%, fueled by higher prices and rising demand in China, Brazil, and the U.S. Read More

  4. SoftBank Posts Surprise $2.4B Quarterly Loss 📉

    SoftBank reported a net loss of 369.17 billion yen as its Vision Fund investments fell into the red. Revenue also missed estimates, dropping to 1.83 trillion yen. Read More

🔍 Deep Dive: The AI Race Intensifies – EU Pledges $200 Billion to Compete 🤖

The Battle for AI Dominance

The race to dominate AI has largely been a two-player game between the U.S. and China. However, the European Union just entered the competition with a historic $200 billion AI investment to boost European tech leadership.

At the AI Action Summit in Paris, European Commission President Ursula von der Leyen announced that the EU will top up its existing €150B AI investment with an additional €50B, focusing on large-scale AI models and AI “gigafactories.”

Europe’s Strategy: Competing with the U.S. & China

  • Funding Breakdown:

    • €150B from private investors like Airbus, Orange, Spotify, and Siemens

    • €50B in public funds for four AI-focused “gigafactories”

  • Key Goal: Develop larger, more powerful AI models to rival OpenAI, DeepMind, and Chinese AI firms.

  • France leads the charge, contributing €109B in private investment.

How Does Europe Compare?

🔹 U.S. – The AI Leader: The U.S. remains dominant with projects like Stargate ($500B investment) and leading AI companies (OpenAI, Google DeepMind, Anthropic).
🔹 China – The AI Challenger: China has made massive progress with low-cost AI models, including DeepSeek AI—a serious competitor to American AI dominance.
🔹 Europe – The New Player: While late to the race, Europe is betting on trustworthy AI and industrial applications rather than consumer AI chatbots.

Challenges & Outlook

Europe’s strong manufacturing & industrial data could give it an edge in AI adoption for business applications. However, critics warn that regulatory hurdles and a fragmented tech sector may slow progress.

Here’s Why Over 4 Million Professionals Read Morning Brew

  • Business news explained in plain English

  • Straight facts, zero fluff, & plenty of puns

  • 100% free

To your financial empowerment, The Money Masters Team

P.S. Stay connected! Don't forget to follow us on social media! 📱🌐

Disclaimer: This information is for educational purposes only and should not be construed as financial advice. Always conduct your own research or consult with a financial advisor before making investment decisions.