Big Tech Updates: Apple and Microsoft
- Bring It Back Home – Apple announced its plans to invest $500 billion in U.S. facilities as a 10% tariff on Chinese imports looms. Currently, Apple assembles a majority of its products in China, but parts are still produced in the U.S. Apple plans to build a new 250,000-square-foot facility in Houston by 2026 (source: Reuters).
- Betting Big – VICI Properties, a real estate investment trust company specializing in entertainment and casino properties, released its fourth quarter and full-year 2024 financial results, citing $3.3 billion in liquidity and $1.1 billion of capital raised during 2024 (source: VICI Properties).
- Shrinking Staff – On Thursday, February 20, 6,000 IRS employees were fired, which represents about 6% of the total workforce. This comes just weeks after the IRS e-file for the 2025 tax season kicked off on January 27, 2025 (source: Reuters).
- Raise the Stop Sign – The U.S. Bureau of Labor Statistics reported that there were 271,500 workers involved in *major work stoppages in 2024. Service-providing industries accounted for 85.6% of idle workers during 2024. One local government and nine state governments had major work stoppages during 2024, resulting in 366,700 cumulative days of idleness (source: U.S. Bureau of Labor Statistics).
- Bye Bye Bank – Pulaski Savings Bank, based in Chicago, Illinois, officially closed on January 17, 2025. This is the first bank closure since The First National Bank of Lindsay closed on October 18, 2024. Millennium Bank in Des Plaines, Illinois, will assume all deposit accounts and assets (source: FDIC).
- Apollo’s Acquisition – Apollo Global Management, an alternative asset manager, has entered a deal to buy Bridge Investment Group, a real estate firm, in a $1.5 billion all-stock deal. The deal is expected to close in Q3 2025 (source: Yahoo Finance).
- What’s Going On? – Microsoft has announced the cancellation of leases for U.S. data centers amid concerns about over-projected capacity needs. Microsoft confirmed that it still plans to spend $80 billion on infrastructure during the next fiscal year. This comes days after Microsoft announced Majorana 1, a new processor that could transform quantum computing (source: Yahoo Finance).
- Looming Layoffs – Starbucks announced plans to lay off 1,100 corporate employees to increase operational efficiency, accountability, and integration. These layoffs will not impact roasting, manufacturing, warehousing, or distribution (source: CNBC).
- Ranking Real Issues – A study conducted by the Pew Research Center found that 72% of surveyed individuals believe the role of money in politics is a major economic issue. The affordability of health care and inflation were close behind at 67% and 63%, respectively (source: Pew Research Center).
- Three-Peat – Mac McClung won the NBA’s dunk contest for the third time in a row, scoring all 50s in the contest. This is the first time anyone has won the dunk contest three times in a row (source: NBA).
*A major work stoppage is defined as 1,000 or more workers missing at least one shift during the work week (Monday through Friday, excluding holidays).
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