Apple’s $500B AI Bet, Berkshire’s Big Quarter, and Nikola’s Collapse

Dear Money Master,

This week, we’re diving into Apple’s massive $500 billion U.S. investment, Berkshire Hathaway’s blockbuster earnings, and the SEC’s latest move on crypto regulation. Meanwhile, Bybit suffered the biggest crypto hack in history, and Block shares tumbled after a disappointing earnings report.

In our Deep Dive, we unravel Nikola’s dramatic downfall—from a $30 billion valuation to bankruptcy. What went wrong, and what lessons can investors learn? Let’s break it down. 🚚💥

📰 Your Daily Financial Digest - February 24th, 2025

🌍 Economics & Finance:

1. Singapore’s Inflation Cools to Lowest Rate Since 2021 📉
   Inflation in Singapore rose just 1.2% in January, far below expectations. This follows the government’s budget announcement and the central bank’s recent monetary policy shift. Read More

2. SEC Drops Investigation Into Robinhood’s Crypto Unit ⚖️
   The SEC has closed its probe into Robinhood Crypto with no enforcement action, signaling a shift toward looser regulations under the Trump administration. Read More

3. Prosus to Acquire Just Eat Takeaway for $4.3 Billion 🍽️
   Dutch tech investor Prosus is set to buy Just Eat Takeaway in an all-cash deal, expanding its dominance in Europe’s food delivery market. Read More

4. Starbucks to Lay Off 1,100 Corporate Workers Amid Cost-Cutting Efforts ☕📉
   The coffee giant is restructuring to streamline operations, but store employees remain unaffected as it struggles to regain market share. Read More

💻 Technology:

1. Bybit Suffers Record-Breaking $1.5 Billion Crypto Hack 🚨
   Hackers drained Bybit’s cold wallet in what’s now the largest crypto heist ever. Investigators linked the attack to North Korea’s Lazarus Group. Read More

2. Apple to Build AI Server Factory in Texas as Part of $500B U.S. Expansion 🏗️
   Apple announced a massive investment plan, including a 250,000-square-foot AI server factory in Houston and 20,000 new hires focused on R&D, AI, and silicon engineering. Read More

3. Alibaba to Invest $52 Billion in AI and Cloud Over Next Three Years 🤖💰
   The tech giant’s AI spending will surpass its last decade’s total, reinforcing its lead in China’s AI race amid rising competition. Read More

💹Earnings:

1. Berkshire Hathaway Reports Strong Q4 Earnings 💰
   Operating profit surged 71% to $14.5 billion, driven by a 302% jump in insurance underwriting. Cash reserves swelled to a record $334.2 billion as Buffett trimmed stock investments. Read More

2. Block Plunges After Earnings Miss and Weak Guidance 📉
   Block missed earnings expectations, reporting $6.03 billion in revenue vs. the $6.29 billion forecast. Weak Cash App user growth and competition hurt investor confidence. Read More

3. Rivian Posts First-Ever Gross Profit but Warns of Lower 2025 Sales 🚗📉
   The EV maker reported a $170M gross profit in Q4, surpassing expectations, but forecasted fewer deliveries in 2025 due to policy uncertainty. Read More

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🔍 Deep Dive: Boom to Bust: The Rise and Fall of Nikola 🚚💥

Nikola Corporation, founded in 2014 by Trevor Milton in Salt Lake City, Utah, aimed to transform trucking with zero-emission vehicles 🚚. Initially focused on natural gas-fueled trucks, it shifted to battery and fuel-cell electric models, capturing attention with a $30 billion valuation after its June 2020 IPO—eclipsing Ford. A multibillion-dollar General Motors deal in September 2020 fueled its rise, positioning Nikola as an EV leader.

However, cracks emerged when Milton resigned in September 2020 amid SEC and DOJ probes into securities fraud 🚨. Accused of inflating stock prices with lies—like claiming a prototype truck was functional when it was rolled down a hill—he faced trial. In October 2022, Milton was convicted of fraud, sentenced to four years in prison in 2023, and ordered to pay Nikola $167.7 million in 2024, deepening the company’s woes.

Post-Milton, Nikola grappled with cash burn, weak EV demand, and funding hurdles, mirroring struggles of peers like Fisker. By February 2025, despite CEO Steve Girsky’s efforts to raise capital, Nikola filed for Chapter 11 bankruptcy on February 19 in Delaware. With $47 million in cash, assets of $500 million to $1 billion, and liabilities of $1 billion to $10 billion, it plans to sell assets by late March, winding down operations.

Chapter 11 lets firms restructure debts under court protection, aiming to maximize creditor value 🏦. For Nikola, it’s a controlled exit—selling assets to pay creditors, leaving shareholders facing significant losses. With equity last in line during bankruptcy, their investments are likely worthless, a harsh lesson in the risks of speculative ventures.

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.