GameStop Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GME#NYSE">GME</a>) reported fourth-quarter financial results after the market close on Tuesday. Here&#8217;s a rundown <a href="https://www.benzinga.com/pressreleases/25/03/g44481194/gamestop-reports-fourth-quarter-and-fiscal-year-2024-results">of the report</a>.



Q4 Earnings: GameStop reported fourth-quarter revenue of $1.283 billion, missing the <a href="https://www.benzinga.com/calendars/earnings" target="_blank" rel="noreferrer noopener">consensus estimate</a> of $1.48 billion. The video game retailer reported fourth-quarter adjusted earnings of 30 cents per share, beating analyst estimates of eight cents per share, according to <a href="http://pro.benzinga.com" target="_blank" rel="noreferrer noopener">Benzinga Pro</a>.



Total revenue was down about 28% on a year-over-year basis. Hardware and accessories revenue totaled $725.8 million in the quarter, Software revenue came in at $286.2 million and Collectibles revenue reached $270.6 million in the quarter.



GameStop reported fourth-quarter net income of $131.3 million, up from $63.1 million in the prior year&#8217;s quarter. The company ended the period with approximately $4.78 billion in cash, cash equivalents and marketable securities.



GameStop noted in the release that it will not be holding a conference call to discuss its quarterly results. 



Don&#8217;t Miss: <a href="https://www.benzinga.com/general/entertainment/25/03/44428025/netflix-to-launch-first-mmo-video-game-is-it-the-streaming-companys-biggest-gaming-bet-yet">Netflix To Launch First MMO Video Game: Is It The Streaming Company&#8217;s Biggest Gaming Bet Yet?</a>



In a separate <a href="https://www.benzinga.com/pressreleases/25/03/g44481289/gamestop-announces-update-to-its-investment-policy-to-add-bitcoin-as-a-treasury-reserve-asset">press release</a>, GameStop announced its board unanimously approved an update to investment policies to add Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) as a treasury reserve asset.



GameStop shares soared last month following reports the company was considering adding Bitcoin and other crypto assets to its balance sheet. Shares appear to be moving higher after-hours in response to the company&#8217;s strategic move towards crypto.



GameStop previously made a push into the crypto space with the launch of wallets that let users manage crypto and non-fungible tokens (NFTs) and also provided access to GameStop's NFT marketplace. The company closed down the offering in 2023 due to <a href="https://www.benzinga.com/markets/cryptocurrency/23/08/33511904/gamestop-cites-regulatory-uncertainty-drops-ios-chrome-extension-crypto-wallet-support" target="_blank" rel="noreferrer noopener">&#8220;regulatory uncertainty.&#8221;</a>



When GameStop reported third-quarter financial results in December, the company said it was <a href="https://www.benzinga.com/analyst-ratings/analyst-color/23/12/36142175/meme-king-ryan-cohen-now-able-to-trade-stocks-with-gamestop-funds" target="_blank" rel="noreferrer noopener">freeing up</a> CEO Ryan Cohen to bet on stocks in order to improve the company&#8217;s financial standing. GameStop did not provide an update on this initiative in its fourth-quarter release.



GME Price Action: <a href="http://benzinga.com/quote/gme" target="_blank" rel="noreferrer noopener">GameStop shares</a> were up 6.50% after-hours, trading at $27.05 at the time of publication Tuesday, according to <a href="http://pro.benzinga.com/" target="_blank" rel="noreferrer noopener">Benzinga Pro</a>.



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GameStop Q4 Earnings: Revenue Miss, EPS Beat, Shares Surge As Board Approves Bitcoin As Treasury Reserve Asset

According to the largest provider of private-label credit cards in the U.S., consumers — pressured by years of persistent inflation — are reducing spending as the <a href="https://www.benzinga.com/government/regulations/25/03/44475192/consumer-confidence-falls-to-lowest-since-2022-as-inflation-tariff-worries-grow">economic outlook worsens</a>.



What To Know: Synchrony Financial's (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SYF#NYSE">SYF</a>) chief credit officer Max Axler told Reuters that while most borrowers continue repaying loans, spending has dipped across income levels. 



&#8220;Purchase volumes have gone down across the industry as consumers across all income groups become more thoughtful about spending,&#8221; Axler said.



Read Next:<a href="https://www.benzinga.com/25/03/44475805/homebuilders-kb-home-lennar-cut-prices-as-homebuyer-demand-has-slowed-materially"> Homebuilders KB Home, Lennar Cut Prices As Buyer Demand Has &#8216;Slowed Materially&#8217;</a>



The latest data released by the Consumer Confidence Board on Tuesday showed that pessimism about the economic future is gripping American consumers. The Consumer Confidence Index fell 7.2 points in March to 92.9, its fourth consecutive monthly decline and the lowest reading since late 2022. 



According to recent Federal Reserve data, <a href="https://www.benzinga.com/news/econ-s/25/03/44439342/are-us-consumers-starting-to-crack-pessimism-loan-defaults-bargain-hunting-rise">delinquencies</a> on auto loans, credit cards, and home credit lines have increased, and economists warn that President Donald Trump's tariffs may exacerbate price pressures. 



Consumers may soon face additional financial strain as student loan servicers resume reporting delinquencies to credit bureaus. The process, which began in mid-February 2025, could worsen already stretched household finances.



&#8220;For the first time in five years, federal student loan delinquencies will start to reappear on credit files, and we expect a lot of consumers to be stretched due to this,&#8221; Rikard Bandebo, chief economist at VantageScore, told Reuters. 



&#8220;We expect delinquencies to go up as a result of it at a time when consumer debt is already high,&#8221; Bandebo added.



Concerns about consumer strength have also weighed on financial stocks. Shares of Discover Financial Services (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DFS#NYSE">DFS</a>) have shed nearly 10% over the past month, and Capital One Financial Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/COF#NYSE">COF</a>) are down 6% over the same period.



The SPDR Select Financial Sector Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLF#NYSE">XLF</a>), which holds 73 large-cap financial stocks, has dipped 1% over the past 30 days on broad consumer spending concerns.&nbsp;



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Image: Shutterstock&nbsp;

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Major Credit Card Provider Warns US Consumers Are Spending Less

A stark warning from Moody's is turning up the heat again in Washington, as elevated U.S. deficits, mounting interest payments and renewed Republican tax cut plans threaten to crack the last pillar holding <a href="https://www.benzinga.com/news/econ-s">America's triple-A credit rating.</a>



As reported by Reuters on Tuesday, Moody's Investors Service indicates U.S. fiscal strength is headed for a "multi-year decline," a deterioration that began before the rating agency downgraded the country's credit <a href="https://www.benzinga.com/analyst-ratings/analyst-color/23/11/35735142/moodys-casts-a-dark-cloud-us-outlook-downgraded-to-negative-over-escalating-deficit">outlook in November 2023</a>.



Moody&#8217;s, the only major ratings firm still maintaining a top rating for U.S. sovereign debt, said the current trajectory of ballooning deficits and rising interest costs risks undermining America's financial credibility on the global stage.



<h3 class="wp-block-heading">Debt Ratios Soaring, Interest Costs Surging</h3>



According to Moody's, the U.S. debt-to-gross domestic product ratio will climb from nearly 100% in 2025 to around 130% by 2035. 



More alarming is the rise in interest payments, which are projected to absorb 30% of government revenue by 2035 — more than triple the 9% seen in 2021.



"Even in a very positive and low probability economic and financial scenario, debt affordability remains materially weaker than for other Aaa-rated and highly rated sovereigns," Moody's said.



The report also emphasized the unique role of the U.S. dollar and Treasury market in preserving the top rating, but noted these strengths are no longer enough to offset worsening fiscal dynamics. 



"We see diminished prospects that these strengths will continue to offset widening fiscal deficits and declining debt affordability," the agency said.



While some cost-cutting initiatives have emerged, such as the Department of Government Efficiency led by Elon Musk, Moody's considers these efforts marginal. 



The agency said truly meaningful fiscal repair would require large-scale cuts, particularly in mandatory spending — a politically toxic arena requiring bipartisan consensus.



<h3 class="wp-block-heading">Dalio Urges Austerity Before It's Too Late</h3>



Bridgewater Associates founder and billionaire investor Ray Dalio appeared before House Republicans on Tuesday, urging them to cap budget deficits to 3% of the GDP before interest payments squeeze out critical spending.



As reported in this <a href="https://www.bloomberg.com/news/articles/2025-03-25/dalio-warns-house-gop-of-debt-peril-as-lawmakers-weigh-tax-cuts?embedded-checkout=true&amp;sref=TBDibEcD">Bloomberg</a> story, Dalio said the U.S. may be approaching a fiscal tipping point. 



"We are at a precarious time in what I call the Big Cycle, where there is a confluence of major forces playing out in a way that is similar to many times in history," he said.



The backdrop to these warnings is a renewed push by Republican lawmakers to make President Donald Trump's 2017 tax cuts permanent and to roll out an additional $4.5 trillion in tax reductions.



Yet, the proposed House plan only includes $2 trillion in offsetting spending cuts over the next decade — a shortfall that would swell the deficit by roughly $3 trillion.



The U.S. fiscal deficit was 6.6% of GDP last year, according to the Congressional Budget Office. 



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<li><a href="https://www.benzinga.com/government/regulations/25/03/44475192/consumer-confidence-falls-to-lowest-since-2022-as-inflation-tariff-worries-grow">Consumer Confidence Falls To Lowest Since 2022 As Inflation, Tariff Worries Grow</a></li>
</ul>



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Debt Alarm Bells Ring In Washington As Moody's, Ray Dalio Call For Urgent Fiscal Discipline

On Sunday, human genetics and biotechnology company&nbsp;23andMe Holding Co (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ME#NASDAQ">ME</a>) voluntarily filed for Chapter 11 bankruptcy to enable a sale process to <a target="_blank" href="https://www.benzinga.com/25/03/44456578/why-dna-test-provider-23andmes-stock-is-plunging-today" rel="noreferrer noopener">maximize its business value</a>.



The move follows the recent&nbsp;rejection of a non-binding acquisition&nbsp;offer from CEO&nbsp;Anne Wojcicki&nbsp;<a target="_blank" href="https://www.benzinga.com/pressreleases/25/03/g44451644/23andme-initiates-voluntary-chapter-11-process-to-maximize-stakeholder-value-through-court-supervi" rel="noreferrer noopener">and her affiliates</a>. In November,&nbsp;23andMe had announced a business restructuring to streamline&nbsp;<a target="_blank" href="https://www.benzinga.com/general/health-care/24/11/41914499/struggling-genetic-testing-company-23andme-to-lay-off-40-of-its-workforce-discontinues-all-therapeutic-programs" rel="noreferrer noopener">operations and reduce costs</a>.



Customers who have shared their DNA with the company now risk having their genetic data sold to the highest bidder due to its bankruptcy, raising concerns about privacy and legal protections.



The Bloomberg <a target="_blank" href="https://www.bloomberg.com/news/articles/2025-03-24/23andme-s-bankruptcy-puts-15-million-users-dna-info-on-auction-block?srnd=homepage-americas&amp;sref=TBDibEcD" rel="noreferrer noopener">report</a> says 23andMe has proposed a May 14 auction to sell its assets. Founded in 2006, 23andMe said in court papers that the data represents "one of the world's largest crowdsourced platforms for genetic research."



In a <a target="_blank" href="https://blog.23andme.com/articles/open-letter" rel="noreferrer noopener">note</a> to customers, 23andMe said that the "Chapter 11 filing does not change how we store, manage, or protect customer data." The company boasts a database of 15 million customers globally.



The company added that customers will have full access to their accounts, genetic reports, and any stored data during the process.



On Tuesday, New York Attorney General Letitia James <a target="_blank" href="https://ag.ny.gov/press-release/2025/attorney-general-james-urges-23andme-customers-contact-company-delete-data" rel="noreferrer noopener">issued</a> a consumer alert to customers of 23andMe, providing instructions on how to delete their personal data and destroy any samples of genetic material held by the company.



Bloomberg report, citing a court filing, outlined that bidders must state in writing that they comply with the company's privacy practices, "which do not restrict the transfer of personally identifiable information of the debtors' customers in connection with a bankruptcy, merger, acquisition, reorganization, or sale of assets."



"We are watching this bankruptcy filing closely and expect to be actively engaged to ensure sensitive records are protected and 23andMe is held accountable," Connecticut Attorney General William Tong <a target="_blank" href="https://portal.ct.gov/ag/press-releases/2025-press-releases/attorney-general-tong-issues-consumer-alert-regarding-23andme-bankruptcy" rel="noreferrer noopener">said</a> on Monday.



In 2023, 23andMe learned that a threat actor accessed several individual 23andMe.com accounts through credential stuffing. The data breach&nbsp;<a target="_blank" href="https://blog.23andme.com/articles/addressing-data-security-concerns?tblci=GiCUX7wvU_AgmIIiQduNYr6JQuJQLy6SZJGvpyeZuCzyqiCN1Vco2-XEnaS03LIXMO-ISg" rel="noreferrer noopener">occurred</a> in April 2023, and the company learned about the incident in October 2023.



The company&nbsp;<a target="_blank" href="https://fingfx.thomsonreuters.com/gfx/legaldocs/zdpxqyqkqvx/frankel-23andme--prelimsettlementmotion.pdf" rel="noreferrer noopener">settled</a> the lawsuits with $30 million related to the breach. A law firm representing around 5,000 customers of genetic testing company 23andMe has raised objections to a proposed $30 million class action settlement, arguing the settlement is intentionally designed to <a target="_blank" href="https://www.benzinga.com/news/24/10/41146410/legal-battle-brews-over-23andmes-customer-data-breach-settlement-and-arbitration-claimants" rel="noreferrer noopener">undermine claimants' rights</a>.



Price Action: ME stock is down 11.7% at $0.64 at the last check Tuesday.



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Photo via Shutterstock

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23andMe's Bankruptcy Sparks Privacy Concerns Over Genetic Database Of 15 Million Customers

A wave of pessimism is sweeping across American households, as new data shows consumer confidence has plunged to its lowest level in over a year, with fears of inflation, stock market volatility and tariff-driven price hikes eroding <a href="https://www.benzinga.com/news/econ-s">optimism about the future.</a>



The Consumer Confidence Index fell by 7.2 points to 92.9, its fourth consecutive monthly decline and the lowest reading since late 2022, according to data released Tuesday by The Conference Board. 



The Expectations Index—a measure of how consumers see business, income and labor market conditions six months ahead—dropped to 65.2, well below the 80 threshold that typically signals a recession ahead. 



The gauge represents the lowest reading since 2013. "Consumers' expectations were especially gloomy, with pessimism about future business conditions deepening and confidence about future employment prospects falling to a 12-year low," said Stephanie Guichard, senior economist at The Conference Board.



The Present Situation Index, which gauges views on current economic conditions, also declined, falling from 138.1 to 134.5. 



While views on the labor market were stable—with 33.6% saying jobs were "plentiful" and only 15.7% saying jobs were "hard to get"—fewer consumers saw business conditions as positive. Only 17.7% said conditions were "good," compared with 19.1% in February.



<h3 class="wp-block-heading">Older Americans And High-Income Households Diverge</h3>



The decline in sentiment was broad-based across age and income groups, but it was most pronounced among Americans over 55. Confidence also slipped for those aged 35 to 54. 



Interestingly, consumers under 35 reported a small boost in confidence, driven by improved views of the current economic situation.



On the income front, sentiment deteriorated across nearly all income levels except for households earning above $125,000 annually. 



<h3 class="wp-block-heading">Tariffs, Eggs, Inflation: Consumers Feel The Squeeze</h3>



One of the most striking shifts came in inflation expectations. 



&#8220;Average 12-month inflation expectations rose again—from 5.8% in February to 6.2% in March—as consumers remained concerned about high prices for key household staples like eggs and the impact of tariffs," the report stated.



Write-in survey responses cited inflation and trade policy among the top concerns. 



The economic commentary from participants highlighted a growing fear that protectionist policies could further raise prices on goods ranging from electronics to appliances, leading some to consider buying now before prices surge.



"Intentions to buy big-ticket items—including appliances and electronics—ticked up, which may reflect plans to buy before impending tariffs lead to price increases," said Guichard.



Guichard said optimism about future income "largely vanished," adding that "worries about the economy and labor market have started to spread into consumers' assessments of their personal situations."



<h3 class="wp-block-heading">Market Sentiment Turns Negative</h3>



Consumers' view of the stock market also deteriorated noticeably. Only 37.4% expected stock prices to rise over the next 12 months, down nearly 10 percentage points from February and 20 points from November 2024. 



Meanwhile, the share expecting a market decline surged to 44.5%, up 11 percentage points month-over-month.



This negative shift in market expectations coincided with continued volatility in equities during March, as investors grappled with sticky inflation data, mixed earnings, and rising geopolitical risk.



Earlier this month, the S&amp;P 500 index—as tracked by the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>)—entered correction territory after dropping more than 10% from its February peak.



<h3 class="wp-block-heading">Personal Finance Confidence Weakens</h3>



Consumers' outlook for their own income turned darker. Only 16.3% said they expected their incomes to rise over the next six months, down from 18.8% in February. Meanwhile, 15.5% expected their income to fall, a notable increase from 12.8%.



That pessimism was also reflected in the broader economic outlook. Just 17.1% expected business conditions to improve, while 27.3% expected them to worsen. Similarly, the percentage of people expecting more job opportunities dropped to 16.7%, while 28.5% anticipated a decrease in available jobs.



One potential explanation: Rising interest rate expectations. The share of consumers anticipating higher interest rates over the next year rose to 54.6%, up from 52.6% last month, while only 22.4% expect rates to decline.



<h3 class="wp-block-heading">Recession Fears Surge Among Consumers</h3>



The perceived probability of a U.S. recession in the next 12 months held steady at 67%, a level not seen since mid-2023. 



And while over 45% of consumers reported feeling confident in evaluating their own financial prospects, many struggled to assess broader economic trends. 



More than one-third said it was difficult to gauge employment and business conditions, and 38.8% had trouble predicting future inflation.



Consumer assessment over the risk of a recession is well above what speculators currently expect.



Kalshi, a CFTC-regulated betting platform, assigns 38% odds of a U.S. recession by the end of 2025.



<iframe loading="lazy" src="https://kalshi.com/external-widgets/events/RECSSNBER-25/markets/RECSSNBER-25?color_scheme=light&#038;widget_size=medium&#038;variant=a&#038;utm_campaign=benzinga_widget" width="488px" height="242px" style="border:0"></iframe>



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Consumer Confidence Falls To Lowest Since 2022 As Inflation, Tariff Worries Grow

Wall Street&#8217;s recovery from its recent technical correction paused for a breather on Tuesday, as investors awaited more clarity on tariff developments and digested a <a href="https://www.benzinga.com/government/regulations/25/03/44475192/consumer-confidence-falls-to-lowest-since-2022-as-inflation-tariff-worries-grow">downbeat consumer confidence report.</a>



The Conference Board's Consumer Confidence Index dropped to 92.9 in March, <a href="https://www.benzinga.com/government/regulations/25/03/44475192/consumer-confidence-falls-to-lowest-since-2022-as-inflation-tariff-worries-grow">its lowest reading since late 2022</a>. The Expectations Index plunged to 65.2 — a level not seen since 2013 — reflecting growing pessimism. The report cited rising prices, especially for eggs and tariff-affected goods, as key concerns. Inflation expectations also climbed, from 5.8% in February to 6.2% in March.



The S&amp;P 500 and Dow were flat on the day, while the Nasdaq 100 edged slightly higher, supported by gains in cybersecurity stocks.



Copper took center stage, jumping over 2% to hit new record highs. Demand is surging in both China and the U.S., fueled by<a href="https://www.benzinga.com/government/regulations/25/03/44476803/copper-breaks-records-on-china-stimulus-tariff-hype-these-stocks-are-riding-the-wave"> policy stimulus and tariff-related shifts.</a>



Shares of Freeport McMoRan Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FCX#NYSE">FCX</a>), the largest U.S. copper miner, rose 3.3%, extending gains in 10 of the last 11 sessions. The Global X Copper Miners ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/COPX#NYSE">COPX</a>) climbed 2% to a three-month high.



Elsewhere, market moves were subdued. Gold gained 0.5%, silver advanced 1.8% and oil dipped 0.4% after Monday's 1.2% jump driven by Venezuelan sanctions.



Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) posted a modest 0.4% gain.



<h1 class="wp-block-heading">Tuesday&#8217;s Performance In Major U.S. Indices, ETFs</h1>



<figure class="wp-block-table is-style-stripes"><table style="overflow:auto; height: 90px; display: block;"><tbody><tr><td>Major Indices</td><td>Price</td><td>1-day % chg</td></tr><tr><td>Nasdaq 100</td><td>20,256.36</td><td>0.4%</td></tr><tr><td>Dow Jones</td><td>42,619.75</td><td>0.1 %</td></tr><tr><td>S&amp;P 500</td><td>5,770.02</td><td>0.0%</td></tr><tr><td>Russell 2000</td><td>2,101.68</td><td>-0.3%</td></tr></tbody></table><figcaption class="wp-element-caption">Updated by 1:00 p.m. ET</figcaption></figure>



According to&nbsp;<a href="https://www.benzinga.com/pro/?utm_source=BZprocontent&amp;t=be2bearmibe3na1">Benzinga Pro</a>&nbsp;data:



<ul>
<li>The&nbsp;SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) inched 0.1% higher to $575.17.</li>



<li>The&nbsp;SPDR Dow Jones Industrial Average&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>) flattened at $425.79.</li>



<li>The tech-heavy&nbsp;Invesco QQQ Trust Series&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>)&nbsp;rose 0.4% to $492.89.</li>



<li>The&nbsp;iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) eased 0.2% to $208.51</li>



<li>The&nbsp;Communication Services&nbsp;Select Sector SPDR Fund&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLC#NYSE">XLC</a>) outperformed, up 1.2%; the Utilities Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLU#NYSE">XLU</a>)&nbsp;lagged, down 1.7%.</li>
</ul>



<h1 class="wp-block-heading">Tuesday&#8217;s Stock Movers</h1>



<ul>
<li>CrowdStrike Holdings (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CRWD#NASDAQ">CRWD</a>) climbed 4% after BTIG analyst Gray Powell upgraded the stock to Buy, setting a price target of $431. The analyst cited expectations of robust revenue growth heading into fiscal 2027. Cybersecurity peer Zscaler Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ZS#NASDAQ">ZS</a>) also rose 2.5%.</li>



<li>Cloudflare Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NET#NYSE">NET</a>) rose 2.2% after receiving a double upgrade to Buy from Bank of America Securities, with a price target raised to $160.</li>



<li>United Parcel Service Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UPS#NYSE">UPS</a>) tumbled 4.6%, hitting early-February lows despite a lack of headlines.</li>



<li>AT&amp;T Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/T#NYSE">T</a>) rose 2.1% after Goldman Sachs raised the stock price target from $29 to $31. </li>



<li>Gamestop Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GME#NYSE">GME</a>) is slated to<a href="https://www.benzinga.com/general/gaming/25/03/44466706/gamestop-q4-earnings-preview-will-video-game-retailer-unveil-bitcoin-purchase"> report earnings after the close</a>.</li>
</ul>



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</ul>



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Wall Street Pauses For A Breather, Miners Rally As Copper Notches All-Time Highs: What's Driving Markets Tuesday?

On Tuesday, Chinese AI startup DeepSeek released its upgraded DeepSeek-V3-0324 model, <a target="_blank" href="https://www.benzinga.com/content/43851567/deepseeks-r1-model-revolutionizes-ai-landscape-says-expert-franklin-burgess" rel="noreferrer noopener">enhancing reasoning and coding abilities</a>.



Available on Hugging Face, the <a target="_blank" href="https://huggingface.co/deepseek-ai/DeepSeek-V3-0324" rel="noreferrer noopener">model</a> shows improved performance in technical benchmarks, intensifying competition with U.S. leaders like OpenAI and Anthropic.



The updated model has shown improvements across multiple benchmarks, particularly scoring 59.4 on the American Invitational Mathematics Examination, up from 39.6 in its predecessor, according to a <a target="_blank" href="https://www.scmp.com/tech/big-tech/article/3303798/deepseeks-upgraded-foundational-model-excels-coding-and-maths?firstTimeRegister=true" rel="noreferrer noopener">report </a>by the South China Morning Post.



Also Read: <a target="_blank" href="https://www.benzinga.com/25/03/44469333/alibabas-tsai-sounds-alarm-on-signs-of-ai-bubble-people-are-building-data-centers-on-speculation" rel="noreferrer noopener">Alibaba&#8217;s Tsai Sounds Alarm On Signs Of AI Bubble In US: &#8216;People Are Building Data Centers On Speculation&#8217;</a>



It also gained 10 points on LiveCodeBench, reaching a score of 49.2. The new model, with 685 billion parameters, uses an MIT software license, unlike DeepSeek V3, which has 671 billion parameters and a commercial license.



Earlier this year, DeepSeek&#8217;s R1 model disrupted American tech supremacy, sparking debates about Big Tech&#8217;s significant investments in large <a target="_blank" href="https://www.benzinga.com/content/43851567/deepseeks-r1-model-revolutionizes-ai-landscape-says-expert-franklin-burgess" rel="noreferrer noopener">language models and data centers.</a>



R1 made waves with its performance and lower costs, but analysts reportedly believe DeepSeek&#8217;s biggest impact is encouraging the use of open-source AI models, CNBC <a target="_blank" href="https://www.cnbc.com/2025/03/24/china-open-source-deepseek-ai-spurs-innovation-and-adoption.html" rel="noreferrer noopener">reports</a>. This shift has been a key factor in the company&#8217;s influence on the industry.



Wei Sun, principal analyst at Counterpoint Research, told CNBC that DeepSeek&#8217;s success shows open-source strategies drive faster innovation and wider adoption, with many companies adopting the model. She also mentioned that R1 is influencing China&#8217;s AI scene, prompting major firms like Baidu to open-source their own LLMs in response.



Recently, Kai-Fu Lee, the former head of Alphabet Inc.&#8217;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>)&nbsp;Google China and founder of AI startup&nbsp;01.AI, said that the&nbsp;<a target="_blank" href="https://www.benzinga.com/news/24/02/37179799/elon-musk-taunts-sam-altman-and-openai-over-open-image" rel="noreferrer noopener">rise of open-source AI</a> models like&nbsp;DeepSeek&nbsp;has exposed an existential risk to OpenAI&#8217;s business—and he&#8217;s pivoting his company accordingly.



He questioned the long-term sustainability of OpenAI&#8217;s business model, especially when competing against open-source projects that offer similar quality at a fraction of the cost.



Tim Wang, managing partner at Monolith Management, shared in an <a target="_blank" href="https://www.cnbc.com/2025/03/24/china-open-source-deepseek-ai-spurs-innovation-and-adoption.html" rel="noreferrer noopener">interview</a> with CNBC that models from companies like DeepSeek have been powerful enablers in China, showing how progress can be made with fewer resources.



He noted that open-source models have reduced costs, allowing for product innovation—an area where Chinese companies excel.



Wang compared this development to the &#8220;Android moment,&#8221; when Google&#8217;s decision to make its operating system&#8217;s source code available sparked innovation in the app ecosystem.



He added that the perception of China being 12 to 24 months behind the U.S. in AI has now shifted to just 3 to 6 months.



This shift in China&#8217;s AI landscape, driven by open-source models like DeepSeek, is changing global competition and challenging traditional business models.



Read Next:



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<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/25/03/44465542/ai-investments-set-to-power-chip-revenue-boom-adoption-rises-among-large-companies-goldman-sachs" target="_blank" rel="noreferrer noopener">Goldman Sachs Predicts $305 Billion AI Windfall While Adoption Remains Slow</a></li>
</ul>



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TSLA

China's DeepSeek Ups The Heat In OpenAI Rivalry, Upgrades V3 Model Improving Coding And Reasoning Capability

While President Donald Trump's rhetoric on tariffs has taken a noticeably softer tone in recent days, Goldman Sachs remains unmoved and says investors should brace for potentially <a href="https://www.benzinga.com/topic/tariffs">unwelcome surprises on April 2.</a>



In a note shared Tuesday, Goldman Sachs economist Alec Phillips said markets may be caught off guard by Trump's approach, which appears designed to front-load tariff rates as a negotiation tactic. This echoes the administration's previous strategy on Mexico and Canada, where aggressive initial tariffs were later rolled back.



According to Phillips, the headline tariff rates could land far above investor expectations, potentially causing a shock for markets. 



Could The &#8216;Reciprocal Tariff&#8217; Be A Market Shock?



Despite recent media hints suggesting a narrower, more targeted approach, Goldman Sachs warns the risks lean toward a &#8220;negative surprise&#8221; for investors. According to a recent survey conducted by the bank, participants who expect a reciprocal tariff see an average rate of 9 percentage points. 



"We expect the initially proposed rate to be higher than the survey result, potentially closer to double what market participants expect," Phillips said in the report.



Goldman Sachs indicated Trump's team could propose a rate within the 15%–20% range—before moderating later.



This aggressive opening salvo could mirror past behavior. In 2018, the Trump administration initially imposed steep steel and aluminum tariffs before easing them for allies after a brief period. 



That tactic may return, especially given that the White House has openly stated that new tariffs are intended as a starting point for talks.



According to Phillips, the administration could propose higher rates at the outset, reinforcing the idea that the initial figures may not reflect the endgame—but could still jolt investors in the short term.



On Monday, Trump struck <a href="https://www.benzinga.com/government/regulations/25/03/44464382/trump-hints-at-tariff-breaks-cheers-hyundai-21b-bet-with-louisiana-steel-plant-deal">a more conciliatory tone on tariffs,</a> saying, "I may give a lot of countries breaks on tariffs," though he also hinted at the magnitude of the potential measures: "They've charged us so much that I'm embarrassed to charge them what they've charged us. But it'll be substantial."



The remarks revived investor risk appetite, prompting a shift away from safe havens like bonds and gold toward riskier assets. The SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) rose 1.8%, while the Invesco QQQ Trust, Series 1 (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) jumped 2% as tech stocks led the rally.



What Goes Into The Reciprocal Tariff Math?



According to the Office of the U.S. Trade Representative, 19 countries are currently under review for the reciprocal tariff framework. These nations account for 91% of U.S. imports, and 15 of them run trade surpluses with the U.S., representing 87% of imports.



Goldman Sachs indicates the new reciprocal tariff formula could be built on four components: import tariff differentials, non-tariff barriers, currency misalignments and foreign tax structures.



The investment bank estimates that tariff differentials between the U.S. and other countries stand at 1.3 percentage points, while non-tariff measures—such as regulatory hurdles or intellectual property restrictions—could add another 6 points on average, based on external studies.



On top of that, the administration might include controversial inputs such as value-added taxes and currency undervaluation. Trump has repeatedly cited VATs as unfair, despite them being standard fiscal tools across most economies. Currency misalignments, meanwhile, are tricky to quantify, but the administration could use thresholds to justify further rate hikes.



If all these components are included, Goldman Sachs expects the total increase in effective U.S. tariffs could reach 10 percentage points, up from just over 3 points. In a worst-case scenario, tariffs could rise by as much as 15 points.



Read now: 



<ul>
<li><a href="https://www.benzinga.com/government/regulations/25/03/44460897/oil-prices-rally-exxon-hits-16-week-highs-as-trump-vows-25-tariffs-on-any-country-buying-venezuelan-crude">Oil Prices Rally, Exxon Hits 16-Week Highs As Trump Vows 25% Tariffs On Any Country Buying Venezuelan Crude</a></li>
</ul>



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Trump's Tariff Rates Could Be 'Double What Market Participants Expect,' Goldman Sachs Warns

Elon Musk's Tesla Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) has something to cheer about in China, with weekly insured registrations hitting 17,300, marking the highest point this year.



What Happened: This increase aligns with the ramped-up production of the refreshed Model Y, as highlighted in a post on X by Future Fund LLC Managing Partner Gary Black on Tuesday.



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">In today's pre-mkt summary for Subscribers: <a href="https://twitter.com/search?q=%24TSLA&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$TSLA</a> China weekly insured registrations hit 17.3K, a YTD high as refreshed Model Y production ramps higher; TSLA Europe Feb sales decline of -47% not relevant given severely limited Model Y inventory as TSLA changes over to new Model…&mdash; Gary Black (@garyblack00) <a href="https://twitter.com/garyblack00/status/1904456879192903894?ref_src=twsrc%5Etfw">March 25, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



In contrast, <a href="https://benzinga.com/25/03/44468724/teslas-market-share-shrinks-in-europe-despite-the-regions-rising-ev-demand-registration-declines-when-undertaking-a-model-changeover-says-analyst">Tesla&#8217;s European sales</a> have seen a 47% decline in February, primarily due to the limited availability of the Model Y during its transition to the new Model Y Juniper version, according to Black.



Additionally, former President Donald Trump has proposed &#8220;secondary tariffs,&#8221; a strategy designed to penalize<a href="https://www.benzinga.com/news/global/25/03/44468587/trump-announces-auto-tariffs-are-imminent-but-some-countries-might-receive-exemptions"> nations purchasing oil and gas from Venezuela</a>.



Why It Matters: Tesla&#8217;s recent achievement in China comes at a time when the company is facing multiple challenges globally.



See Also:<a href="https://www.benzinga.com/25/03/44469620/elon-musks-spacex-is-preparing-new-starlink-dishes-offering-gigabit-speeds-report"> Elon Musk&#8217;s SpaceX Prepares To Launch New Starlink Dish Promising Gigabit Internet Speeds: Report</a>



In Europe, Tesla&#8217;s market share has been shrinking despite a growing demand for electric vehicles. According to the European Automobile Manufacturers Association, Tesla&#8217;s sales in Europe have dropped by 42.6% this year, with its market share falling to 1.8% from 2.8% last year.



The situation is compounded by a forecast from JPMorgan analysts predicting a potential<a href="https://benzinga.com/news/25/03/44466839/more-bad-news-for-elon-musk-as-top-analyst-forecasts-stock-price-falling-by-as-much-as-50"> 50% drop in Tesla&#8217;s stock price</a>. This comes after Tesla&#8217;s stock lost $127 billion in value in a single day of trading in early March.



Furthermore, Tesla owners could face<a href="https://in.benzinga.com/markets/equities/25/03/44432174/tesla-owners-might-have-to-pay-more-for-insurance-amid-a-surge-in-attacks-on-elon-musk-led-ev-giants-vehicles-expert"> increased insurance premiums</a> due to a surge in vandalism against their vehicles, as reported by experts. Despite claims by Elon Musk and Donald Trump of<a href="https://www.benzinga.com/markets/equities/25/03/44455245/tesla-vandalism-no-coordinated-efforts-detected-experts-dispute-elon-musk-and-trumps-allegations"> coordinated attacks</a>, law enforcement agencies have found no evidence supporting these allegations.



Adding to the challenges, Nova Scotia has joined other Canadian provinces in<a href="https://www.benzinga.com/news/global/25/03/44452731/nova-scotia-joins-other-canadian-provinces-in-excluding-elon-musks-tesla-from-ev-rebate-program"> excluding Tesla from their electric vehicle rebate programs</a>, further impacting the company&#8217;s market presence.



Tesla holds a momentum rating of 84.01% and a growth rating of 67.94%, according to<a href="https://www.benzinga.com/report/TSLA"> Benzinga's Proprietary Edge Rankings</a>. The Benzinga Growth metric evaluates a stock&#8217;s historical earnings and revenue expansion across multiple timeframes, prioritizing both long-term trends and recent performance. For an in-depth report on more stocks and insights into growth opportunities,<a href="https://www.benzinga.com/screener/top-momentum-stocks"> sign up for Benzinga Edge.</a>



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="837" height="145" src="https://editorial-assets.benzinga.com/wp-content/uploads/2025/03/25075934/Tesla-Edge-1-1.jpg" alt="" class="wp-image-840325" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2025/03/25075934/Tesla-Edge-1-1.jpg 837w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/03/25075934/Tesla-Edge-1-1-300x52.jpg 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/03/25075934/Tesla-Edge-1-1-768x133.jpg 768w" sizes="(max-width: 837px) 100vw, 837px" /></figure>



Check out more of Benzinga's Future Of Mobility coverage by<a href="https://www.benzinga.com/topic/mobility"> following this link.</a>



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<li><a href="https://www.benzinga.com/news/global/25/03/44468587/trump-announces-auto-tariffs-are-imminent-but-some-countries-might-receive-exemptions">Trump Announces Auto Tariffs Are Imminent But Some Countries Might Receive Exemptions</a></li>
</ul>



Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.



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Tesla's China Weekly Insured Numbers Hit New Year-To-Date High: Gary Black Says TSLA's Europe Sales Decline Not Relevant

On Tuesday, at Capital Markets Day 2025, Shell PLC (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SHEL#NYSE">SHEL</a>) <a target="_blank" href="https://www.benzinga.com/pressreleases/25/03/g44468818/shell-accelerates-strategy-to-deliver-more-value-with-less-emissions" rel="noreferrer noopener">disclosed several strategic updates and investments</a>.



The company plans to increase shareholder distributions from 30%-40% to 40%-50% of cash flow from operations (CFFO) throughout economic cycles.



In particular, the company expects to focus on share buybacks while maintaining a 4% annual progressive dividend policy.



Shell plans to prioritize high-margin growth in its Mobility and Lubricants businesses.



The company also seeks to capitalize on its competitive advantages by developing profitable and scalable ventures in low-carbon energy, with up to 10% of capital allocated to these initiatives by 2030.



Moreover, Shell plans to enhance its Chemicals division by pursuing U.S. partnerships, optimizing European operations, and reducing capital commitments while boosting returns by 2030.



Shell has raised its structural cost reduction target from $2-3 billion by the end of 2025 to a cumulative $5-7 billion by 2028, <a target="_blank" href="https://www.benzinga.com/calendars/guidance" rel="noreferrer noopener">based on 2022 levels</a>.



Shell plans to invest for growth while reducing annual capital expenditures to $20 billion-$22 billion for the period of 2025-2028.



The company also aims to increase free cash flow per share by over 10% annually through 2030.



Shell plans to strengthen its leadership in liquefied natural gas (LNG) by increasing sales by 4%-5% annually through 2030.



Also, the company intends to expand overall production across its Upstream and Integrated Gas sectors by 1% per year while maintaining daily liquid production at 1.4 million barrels, with a focus on lowering carbon intensity.



Last week, Shell&#8217;s subsidiary, Shell Brasil Petróleo Ltda., made the Final Investment Decision (FID)&nbsp;<a target="_blank" href="https://www.benzinga.com/news/large-cap/25/03/44435971/shell-announces-final-investment-decision-for-major-brazil-oil-field-set-for-120000-barrels-day" rel="noreferrer noopener">for the Gato do Mato project</a>.



The project is a deep-water initiative located in the pre-salt region of the Santos Basin offshore Brazil.



Investors can gain exposure to the stock via&nbsp;Precidian ETFs Trust Shell plc ADRhedged (BATS:<a class="ticker" href="https://www.benzinga.com/stock/SHEH#BATS">SHEH</a>) and&nbsp;Abacus FCF Real Assets Leaders ETF&nbsp;(BATS:<a class="ticker" href="https://www.benzinga.com/stock/ABLD#BATS">ABLD</a>).



Price Action: SHEL shares are up 1.68% at $72.48 premarket at the last check Tuesday.



Read Next:



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<li><a href="https://www.benzinga.com/news/global/25/02/43471546/shell-resumes-north-sea-production-with-first-new-fpso-in-over-20-years" target="_blank" rel="noreferrer noopener">Shell Resumes North Sea Production With First New FPSO In Over 20 Years</a></li>
</ul>



Photo courtesy: Shutterstock.

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Shell Unveils New Strategy: Higher Buybacks, Cost Cuts And 10% Annual Free Cash Flow Growth

Alibaba Group Holding&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BABA#NYSE">BABA</a>) Chairman Joe Tsai has expressed apprehension about a potential bubble in the AI data center construction sector. 



What Happened: At&nbsp;the HSBC Global Investment Summit&nbsp;in Hong Kong, Tsai cautioned that the rapid expansion of data centers could surpass the early demand for artificial intelligence (AI) services. He pointed out the reckless rush by tech firms, investment funds, and other entities to set up server bases from the U.S. to Asia, potentially leading to numerous projects being developed without a well-defined customer base, reported the <a href="https://www.scmp.com/business/banking-finance/article/3303769/some-ai-related-bets-are-speculative-and-creating-bubble-alibabas-tsai-says">South China Morning Post</a>.



&#8220;People are talking literally about $500 billion, several $100 billion [projects]. I don't think that is entirely necessary,&#8221; Tsai stated. The Alibaba Chair spoke specifically about the AI investments in the U.S.



"I start to get worried when people are building data centers on speculation,&#8221; Tsai added.



Major tech companies like&nbsp;Microsoft Corporation&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>) and&nbsp;SoftBank Group Corp.&nbsp;(OTC:<a class="ticker" href="https://www.benzinga.com/stock/SFTBY#OTC">SFTBY</a>) are investing billions in AI development. Alibaba itself has plans to invest over 380 billion yuan ($70 billion) in AI&nbsp;within the next three years.



Tsai voiced concerns about projects seeking funding without first securing uptake agreements. He specifically pointed out the heavy spending by US companies like&nbsp;Amazon.com, Inc.&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>),&nbsp;Alphabet Inc.&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>), and&nbsp;Meta Platforms Inc.&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>) on AI infrastructure.



SEE ALSO: <a href="https://www.benzinga.com/25/03/44468827/palantir-market-cap-surges-over-50-billion-in-2025-wont-be-a-seller-says-analyst-as-he-foresees-pltr-as-a-play-on-global-economy-and-ai">Palantir Market Cap Surges Over $50 Billion In 2025: Won&#8217;t Be A &#8216;Seller,&#8217; Says Analyst As He Foresees PLTR As An AI Play</a>



Why It Matters: Tsai&#8217;s concerns resonate with &nbsp;Edward Yardeni, the President of Yardeni Research who stated that the "AI bubble" <a href="https://www.benzinga.com/markets/equities/25/03/44371661/ai-bubble-bursting-magnificent-7s-profit-margins-face-pressure-as-capital-spending-can-tumble-in-2025">could be "bursting.&#8221;</a> He stated, "The fear now is that open-source large language models (LLMs) like DeepSeek and Manus, developed in China, require much less powerful semiconductors to operate."



"If so, then AI capital spending will tumble along with the profit margins on AI systems," warned Yardeni.



In February, TD Cowen analysts noted that Microsoft is canceling some U.S. data center leases, raising concerns about potential overinvestment in AI computing capacity.



However, Goldman Sachs analysts predict that AI-related investments in chips and hardware could add $305 billion in revenue by the end of 2025. The analysts also noted that while <a href="https://www.benzinga.com/analyst-ratings/analyst-color/25/03/44465542/ai-investments-set-to-power-chip-revenue-boom-adoption-rises-among-large-companies-goldman-sachs">tech giants</a> are investing heavily in AI infrastructure, leading to a significant semiconductor revenue boom, most companies are still in the early stages of adoption.



Given these factors, Tsai&#8217;s warning about a potential bubble in data center construction is significant and warrants attention from investors and tech companies alike.



Alibaba holds a momentum rating of 96.04% and a growth rating of 73.41%, according to&nbsp;<a href="https://www.benzinga.com/report/BABA" target="_blank" rel="noreferrer noopener">Benzinga&#8217;s Proprietary Edge Rankings</a>. The Benzinga Momentum metric measures a stock's relative strength based on its price movement patterns and volatility over multiple timeframes, ranked as a percentile against other stocks. For an in-depth report on more stocks and insights into growth opportunities,&nbsp;<a href="https://www.benzinga.com/screener/top-momentum-stocks" target="_blank" rel="noreferrer noopener">sign</a>&nbsp;<a href="https://www.benzinga.com/screener/top-momentum-stocks" target="_blank" rel="noreferrer noopener">up for Benzinga Edge.</a>



<ul>
<li>READ MORE: <a href="https://www.benzinga.com/25/03/44469082/hyundai-announces-21-billion-us-investment-amid-tariff-pressure-trump-calls-it-vindication-of-his-administrations-use-of-levies">Hyundai Announces $21 Billion US Investment Amid Tariff Pressure: Trump Calls It Vindication Of His Administration&#8217;s Use Of Levies</a></li>
</ul>



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Disclaimer:&nbsp;This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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Alibaba's Tsai Sounds Alarm On Signs Of AI Bubble In US: 'People Are Building Data Centers On Speculation'

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