Situational Awareness, a hedge fund founded by Leopold Aschenbrenner, reportedly invested $400 million in a privately held company shortly after dodging collapse from margin calls following an AI-stock sell-off.
IBM's market value plunged after CEO Arvind Krishna reported delayed Q2 software deals and a mainframe sales drop. Krishna asserts these are deferrals, not losses, with a third already closed. IBM also launched Lightwell, a $5B AI security initiative targeting enterprise vulnerabilities.
IBM reported earnings significantly below Wall Street's expectations, with its stock tanking 25% after a preliminary warning from CEO Arvind Krishna. The 115-year-old company's mainframe business saw a 42% decline, as customers diverted budgets to other hardware due to rising component costs driven by the AI boom.
South Korea's Korea Exchange activated a circuit breaker for the KOSPI benchmark index, halting trading for 20 minutes, after the index plummeted over 8% due to a slump in tech heavyweights. This marks the fifth such activation this year.
Avis Budget Group (ticker CAR) stock experienced extreme volatility, soaring from under $100 last month to a record $850 early Wednesday before closing down 38%. The stock was down another 6% in premarket trading Thursday, now around $417. Options volume surged with implied volatility at 235% versus 20% for the S&P 500. Brokers including Charles Schwab tightened margin requirements, requiring 100% margin for concentrated positions. The saga recalls GameStop's 2021 short squeeze, with only 36 million shares outstanding, largely controlled by Pentwater Capital Management and SRS Investment Management.
