Big Tech Eyes Crypto Again

CRYPTO
Big Tech Eyes Crypto Again

In 2019, Meta unveiled its ambitious crypto project, Libra—aimed at launching a stablecoin for Facebook and WhatsApp users. But regulatory pressure, particularly from U.S. lawmakers, forced the company to abandon it by 2022. Now, Meta is quietly re-entering the crypto space. Sources say it’s in talks with crypto firms to explore stablecoins as a method for cross-border payouts. Ginger Baker, a fintech veteran and new VP of product at Meta, is leading the initiative.

The company has contacted infrastructure providers and is reportedly considering integrating stablecoin payments for creators on Instagram. With Stripe’s $1.1 billion acquisition of Bridge and new stablecoin ventures by Visa and Fidelity, stablecoins are gaining momentum—especially after Donald Trump’s election and a regulatory shift. Meta’s return signals Big Tech’s renewed interest. Though still in early stages, the project could revive Meta’s crypto ambitions as Congress debates stablecoin regulation and the market matures for low-fee, borderless payments.

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FINANCE
Markets Stall Ahead of Trade Talks

Stock markets ended flat on Friday as investors looked ahead to high-stakes U.S.-China trade talks this weekend. The S&P 500 dipped 0.07%, the Nasdaq held steady, and the Dow fell 0.3%. After early-week losses, indexes recovered but closed largely unchanged. Treasury Secretary Scott Bessent is set to meet Chinese officials in Geneva, aiming to “rebalance the international economic system.” Meanwhile, President Trump suggested an 80% tariff on Chinese imports—a decrease from April’s 145% rate but still steep.

China has responded with tariffs up to 125% on U.S. goods, escalating the ongoing trade war. Chinese exports to the U.S. plunged 21% in April, and U.S. port activity is sharply down. Despite tensions, Trump announced a trade deal with the U.K. allowing 100,000 cars annually at reduced tariffs. The deal drew criticism from U.S. automakers. Trump insists more trade agreements are coming. Markets, though, remained cautious, ending the week without strong momentum.

TECH
Ad Growth Meets Trade Headwinds

The digital ad market saw a strong Q1 performance, with Meta, Alphabet, Amazon, and smaller platforms like Snap and Pinterest all beating expectations. Amazon’s ad sales jumped 19%, outpacing Meta and Google. Ad-tech firms AppLovin and The Trade Desk also surged, with shares rising up to 18% after solid earnings. However, the optimism is fading. Meta’s CFO warned that Asia-based e-commerce advertisers like Temu and Shein are pulling back due to trade policy changes.

Alphabet, Pinterest, and Snap echoed concerns about macroeconomic uncertainty, with Snap withdrawing guidance entirely. Experts warn the ad market could suffer as major advertisers in retail and consumer goods cut budgets. Analysts say smaller platforms will be hit hardest, though even giants like Meta may feel pressure. The culprit? Rising tariffs under Trump’s trade agenda. As companies suspend 2025 forecasts, Wells Fargo’s Sameer Samana summed it up: “We better enjoy these numbers—this might be as good as it gets.”

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.