New President of USA, Tesla, Bitcoin, Lenskart, Apple, MPL, Business News, Stock Market

Summary

In this video, Sahil Khanna provides a detailed overview of current economic trends, including the impact of Donald Trump's presidency on markets like Tesla, Bitcoin, and gold. He discusses the struggles of Indian startups, such as MPL and Lenskart, that continue to face losses despite increased investments. Sahil explains the cycle of startup growth, where heavy investment leads to inflated valuations but not profitability. He also touches on Apple's market dynamics, e-commerce growth, and government actions in India, including measures to streamline the banking sector and facilitate UPI payments for NRIs.

Takeaways

• 😀 Donald Trump’s presidency has caused fluctuations in the stock market, with shares of Tesla rising by 12% and Trump's own company gaining 17%.
• 😀 Iranian currency is at an all-time low due to fears of potential sanctions by Trump, while Bitcoin is at a record high of $74,500.
• 😀 Indian startups are facing mixed results: Adtech platform saw decreased profits, JAR reported losses but increased revenue, and MPL faces mounting losses despite revenue growth.
• 😀 Lenskart showed improvement in revenue and loss control, but still faces challenges in reaching profitability.
• 😀 Startups are often in losses in their early stages, investing heavily in growth to attract more funding, which increases their valuations despite not making a profit.
• 😀 A startup's valuation can increase significantly due to fast growth in users or views, even if it's not yet profitable, attracting more investors in the process.
• 😀 SpaceX raised $10 million in Series A funding, while Apple revealed that their new products (AR and VR devices) are not as profitable as the iPhone.
• 😀 Ola Electric refunded Rs. 1.63 lakh to customers due to issues with their scooters, demonstrating accountability in customer service.
• 😀 E-commerce sales surged to Rs. 1 lakh crores during the festive season, reflecting a shift toward digital shopping.
• 😀 NPCI is enabling NRIs to make UPI payments internationally, simplifying remittances and cross-border payments.
• 😀 The Indian government is working to reduce the number of regional banks from 43 to 28, which could lead to a more streamlined banking system.

Q & A

How has Donald Trump's political position affected the stock market?

Donald Trump's return as U.S. President has caused fluctuations in the stock market. Notably, Tesla's stock increased by 12%, mainly due to Elon Musk's investment in Trump's political campaign. Meanwhile, his own company's stock rose by 17% in anticipation of his win.

What impact have Trump's policies had on Iranian currency?

The Iranian currency has dropped to an all-time low as investors anticipate sanctions being imposed by Donald Trump. This reflects the negative outlook on Iran's economy under his potential presidency.

Why are investors flocking to Bitcoin?

Bitcoin's value has surged to an all-time high of $74,500, driven by investor confidence amid global economic uncertainties, including political changes and currency devaluations like that of the Iranian rial.

What is the current financial situation of Indian startups like MPL, Lenskart, and JAR?

Indian startups like MPL, Lenskart, and JAR are facing challenges. MPL has reported losses despite increasing revenue, Lenskart is struggling with profit despite growing revenues, and JAR is showing a significant loss but with a slight improvement in expenses and revenue.

How do startup companies typically function in terms of losses and investor attraction?

Startups often focus on burning capital to grow rapidly, even at the cost of losses. This strategy attracts investors who expect growth in valuation or views, which ultimately increases the company’s worth, despite the lack of immediate profits.

What has been the effect of Swiggy’s exit on investor perception?

Swiggy’s exit was profitable, with a return of 3X. This shows that despite startups running at a loss, they can still deliver significant returns to early investors, creating confidence in the startup ecosystem.

How has Apple's product strategy changed over the years?

Apple has shifted its focus towards new product categories like AR and VR devices, acknowledging that the iPhone and other products, while popular, cannot generate the same margins due to their long lifespan and the cult following that diminishes repeat purchases.

Why is the Indian government focusing on reducing the number of regional banks?

The Indian government plans to reduce the number of regional banks to streamline the banking system, aiming for greater efficiency and stability in the market. This move is seen as beneficial for the overall economy.

What is the current state of e-commerce in India?

E-commerce in India is growing rapidly, with festive season sales reaching Rs. 1 lakh crores, up from Rs. 81,000 crores. This growth highlights the increasing digital shift and consumer confidence in online shopping.

How is the UPI payment system expanding internationally?

The Indian government is expanding UPI to allow NRIs (Non-Resident Indians) to use the platform for international transactions, making cross-border remittances easier and more convenient for Indian diaspora living abroad.