Exchanges

<h2>Asia-Pacific stocks fell even after manufacturing data out of China bounced back to expansion territory.</h2><figure class="image"><img src="https://infofx-prod.s3.ap-southeast-1.amazonaws.com/Anh_chup_man_hinh_2023_10_02_155519_8ba9c262f0.png" alt="Ảnh chụp màn hình 2023-10-02 155519.png"></figure>China’s factory activity in September expanded for the first time since April, according to official data over the weekend. China’s PMI climbed to 50.2 in September from 49.7, beating Reuters’ expectations of 50.0.China’s markets are closed for the weeklong Golden Week holiday. South Korean and Hong Kong’s markets are also closed for holidays.<figure class="image"><img src="https://infofx-prod.s3.ap-southeast-1.amazonaws.com/asia_pacific_stocks_mixed_as_chinas_manufacturing_activity_in_august_beats_forecasts_scaled_1_5b0a81dca0.jpg" alt="asia-pacific-stocks-mixed-as-chinas-manufacturing-activity-in-august-beats-forecasts-scaled-1.jpg"></figure>Japan’s <a href="https://www.cnbc.com/quotes/.N225/">Nikkei 225</a> traded 0.31% lower to close at 31,759.88, while the Topix slipped 0.39% to end at 2,314.Sentiment of Japan’s big manufacturers&nbsp;improved to a score of 9 in the third quarter, up from 5 in the previous three months, the closely-watched central bank tankan survey showed.Australia’s<a href="https://www.cnbc.com/quotes/.AXJO/"> S&amp;P/ASX 200</a> was down 0.22% to end at 7,033.2.On Friday in the U.S., the three major indexes were mixed. The&nbsp;<a href="https://www.cnbc.com/quotes/.DJI/">Dow</a>&nbsp;and&nbsp;<a href="https://www.cnbc.com/quotes/.SPX/">S&amp;P 500</a>&nbsp;finished the session lower by 0.5% and 0.3%, respectively, capping off a negative week for the two indexes. The&nbsp;Nasdaq Composite finished up 0.1%.Over the weekend, U.S. legislators were able to reach a temporary agreement that averted a government shutdown.(CNBC’s Alex Harring contributed to this report.)&nbsp;

China’s factory activity in September expanded for the first time since April, according to official data over the weekend. China’s PMI climbed to 50.2 in September from 49.7, beating Reuters’ expectations of 50.0.

China's factory activity expands in September, first time since April. PMI rises to 50.2 from 49.7, surpassing expectations. Official data shows positive economic indicators for Chinese manufacturing sector

APAC Stocks Dip Despite China's First Factory Growth 6 Months

Asia-Pacific stocks fall even as China’s factory activity expands for the first time in six months

The US Department of Justice (DOJ) filed an antitrust lawsuit against Visa, alleging that the payment giant has stifled competition through various anti-competitive practices. The development on Tuesday sent Visa's stock price plummeting, with shares closing down approximately 5.5 per cent for the day, Reuters reported. &nbsp;<figure class="image image_resized" style="width:100%;"><img src="https://infofinance-prod.s3.ap-southeast-1.amazonaws.com/AA_1r9_Nt_U_cd213a71d7.jfif" alt="AA1r9NtU.jfif"></figure>The DOJ's lawsuit claims that Visa, which processes over 60 per cent of debit transactions in the United States, has maintained its market dominance through questionable agreements with card issuers, merchants, and potential competitors. These practices, according to prosecutors, have allowed Visa to collect around $7 billion annually in fees from debit transactions routed through its network, the report added.In response to the allegations, Julie Rottenberg, Visa's general counsel, defended the company's practices, stating, "When businesses and consumers choose Visa, it is because of our secure and reliable network, world-class fraud protection, and the value we provide." She added that the claims are without merit and that Visa intends to contest them vigorously, Reuters reported.The lawsuit is part of a broader initiative by the Biden administration to address rising consumer prices, a key issue in the upcoming presidential election. Attorney General Merrick Garland emphasized the far-reaching impact of Visa's alleged conduct, saying, “Visa's unlawful conduct affects not just the price of one thing, but the price of nearly everything,” per the Reuters report.According to the DOJ, Visa's anti-competitive behaviour began around 2012, following reforms that required card issuers to accommodate unaffiliated networks. The lawsuit alleges that Visa entered into agreements with potential fintech competitors like Apple, PayPal, and Square (now Block Inc.) to prevent them from releasing products that could threaten Visa's market position, the report added.The legal action seeks to prohibit Visa from imposing pricing structures that discourage competition and paying rivals not to compete. The DOJ aims to restore competition in the debit payment processing market for online and in-store transactions.This lawsuit is the latest in a series of legal challenges faced by Visa and its rival Mastercard over their dominance in the payment card market. Both companies have been involved in litigation for nearly two decades and have already set aside substantial funds for potential settlements related to interchange fees.As the legal battle unfolds, the outcome of this antitrust lawsuit could have significant implications for the payment processing industry and potentially lead to changes in how debit transactions are handled in the United States.

The US Department of Justice (DOJ) filed an antitrust lawsuit against Visa, alleging that the payment giant has stifled competition through various anti-competitive practices. The development on Tuesday sent Visa's stock price plummeting, with shares closing down approximately 5.5 per cent for the day, Reuters reported.

Visa stock plunges as US Department of Justice files antitrust lawsuit alleging market dominance

<ul><li>Stock market highs are expected to continue into 2025, according to Oppenheimer's Ari Wald.</li><li>In a note, Wald highlighted strong market breadth and healthy signs across various sectors.</li><li>Key sectors like industrials, financials, and technology look resilient, Wald said.</li></ul><figure class="image"><img src="https://infofinance-prod.s3.ap-southeast-1.amazonaws.com/BB_1kbc_UL_25bd0eea6a.jfif" alt="BB1kbcUL.jfif"></figure>Record highs in the stock market are set to continue, as few signals suggest a top in equity prices is near.That's according to Oppenheimer managing director and technical analyst Ari Wald, who said in a note over the weekend that there are bullish "inflection points" in the underlying market."We continue to balance seasonal headwinds against our view that evidence of a major top is not compelling," Wald said.Wald said he is encouraged by the fact that the number of stocks on the New York Stock Exchange above their 200-day moving average is above 60%, which is a healthy sign for a market advance, as it shows that it's not just a handful of mega-cap tech companies driving the gains."We stress that market breadth remains constructive, and defensive leadership may represent a 'catch-up' into previous underperformers," Wald said.Wald said that based on the chart, traders can buy last week's breakout to new cycle highs in the S&amp;P 500, with a stop-loss set at the 5,650 level on a closing basis.A stop-loss is a risk management tool used by traders to automatically sell a security when a certain price is hit.For the S&amp;P 500, the 5,650 level represents potential downside of just 1%, while Wald's upside price target of 6,000 in the first half of 2025 represents potential upside of 5%.Wald's 6,000 price target for the S&amp;P 500 is based on the median bull market cycle."The S&amp;P 500 is up 64% over the 23 months between October 2022 and September 2024. Since 1932, the median bull cycle has gained 73% over a 32-month period," Wald said.<figure class="image"><img src="https://infofinance-prod.s3.ap-southeast-1.amazonaws.com/BB_1m_H2ar_62ad2b62ac.jfif" alt="BB1mH2ar.jfif"></figure>Meanwhile, the average bull market cycle gain is 102% over a 34-month period.And if the current bull market follows the path of the average bull market, stocks could continue to rise through the end of 2025 with the S&amp;P 500 rising to around the 7,000 level.That 7,000 target aligns with a bullish prediction from Evercore ISI, which said in June that the AI craze could push stocks higher in 2025.Beneath the surface of the broad market, Wald said he is encouraged by the "right" leadership making new highs, including the Industrials sector."We view the cycle high for Industrials as confirmation of an intact bull market," Wall said.Record highs in the financials sector is another positive sign for the broader stock market, while the technology sector could be gearing up for its next big move higher, according to Wald.<figure class="image"><img src="https://infofinance-prod.s3.ap-southeast-1.amazonaws.com/AA_1r3fur_0b47a01199.jfif" alt="AA1r3fur.jfif"></figure>"Technology is coming off an all-time high on both an absolute and relative basis in July. While the sector's relative trend has moderated, we still believe Technology represents one of the strongest long-term structures in the market," Wald said.Finally, Wald highlighted the healthcare sector as another area of the market that is showing resilience, even as it lags other sectors.While the healthcare sector is breaking out to new all-time highs, on a relative basis it is falling to new multi-year lows compared to the S&amp;P 500."We think the divergence between Health Care's absolute and relative trend speaks to the broadness of market breadth — even lagging sectors are rallying," Wald said.Similar scenarios are playing out in the communication services and materials sectors, according to the note.

Stock market highs are expected to continue into 2025, according to Oppenheimer's Ari Wald.

Why stocks have a lot more room to rally before hitting a peak, according to a technical analyst

Shares of Trump Media plunged to a new low Thursday — the day that former President Donald Trump and other major investors were finally allowed to sell their shares in the parent company of social media platform Truth Social.<figure class="image image_resized" style="width:100%;"><img src="https://infofinance-prod.s3.ap-southeast-1.amazonaws.com/AA_1q_R_Oc_I_a9436ab45e.jfif" alt="AA1qROcI.jfif"></figure>The company closed down nearly 6%, at $14.70, as the six-month lockup period preventing insiders from selling the stock expired after Trump Media merged with blank-check company Digital World Acquisition Corp to take it public.Trump, the majority owner with a 57% stake now valued at around $1.7 billion, said last week that he has no intention of selling his position — a move that would effectively devalue the stock.The Republican presidential nominee and other large investors, who collectively own more than 20 million shares, were free to sell the stock after the closing bell. Trump Media debuted on the Nasdaq to great fanfare in March, with the share price soaring to more than $60.But It has suffered volatile swings during his run for the White House as incumbent Joe Biden dropped out and Kamala Harris got the Democratic nomination.The latest polls show Trump and the Vice President are virtually tied in the major swing states.Trump launched Truth Social in February 2022 after he was banned from major sites such as Facebook and the platform formerly known as Twitter following the Jan. 6 attack on the US Capitol.He’s since been reinstated to both — and endorsed by X owner Elon Musk — but he still mostly posts on his own platform.While Truth Social sought to capitalize on the outrage over Trump’s bans, it has struggled gaining traction.The platform had less than 1 million daily active users as of April, according to data from Similarweb.

Shares of Trump Media plunged to a new low Thursday — the day that former President Donald Trump and other major investors were finally allowed to sell their shares in the parent company of social media platform Truth Social.

Trump Media stock sinks as former president can finally sell his shares

Will Tesla Stock Split in 2024? No, Tesla CEO Elon Musk and his Board of Directors have not announced any plans for a Tesla stock split in 2024.But the maverick CEO of SpaceX and Starlink could send a tweet anytime, keeping Tesla stock split rumors alive, so it is worth keeping abreast of the situation.<figure class="image"><img src="https://infofinance-prod.s3.ap-southeast-1.amazonaws.com/Tesla_Stock_Split_1_jpg_8b2ce62173.webp" alt="Tesla-Stock-Split-1.jpg.webp"></figure>Why Doesn’t Tesla Split Its Stock? TSLA Stock Price Tesla (TSLA) stock is well down from all-time highs; thus, the impetus to make shares more affordable is not quite there.If Tesla’s current stock price isn’t viewed as prohibitively high, there might not be a strong need for a split. In other words, Tesla may believe the price is already within reach for most investors.That’s not to say a Tesla stock split date could never be announced at these prices. Historically, management has tried to bump shares out of a slump by conducting stock splits.Management at Tesla may feel that its current stock price accurately reflects its market value, and therefore doesn’t see the necessity of a split.A higher stock price can convey stability to investors, and Tesla may want to preserve that perception.Earnings Tesla’s 2023 annual earnings paint a mixed picture.While revenues increased by 24% year-over-year from 2022 to 2023, reaching $81.5 billion in 2023, its net profit declined. In 2022, Tesla had a net profit of around $12.6 billion, but in 2023, that figure dropped to approximately $10.5 billion, reflecting a 17% year-over-year decrease in profits. This drop in profitability comes from price cuts on its vehicles to stay competitive, squeezing margins. With profits down and costs rising, Tesla’s current financial position might not justify another stock split, which usually signals strong confidence in future growth.Elon Musk’s Distractions It seems fair to assume that a Tesla stock split couldn’t happen without CEO Elon Musk’s approval. However, Musk appears to be preoccupied with his other ventures, from Starlink to X Corp (formerly Twitter) to SpaceX and Neuralink.To his credit, he appears to be juggling all his ventures with sufficient verve – but a Tesla stock split is probably far down the pecking order of Elon Musk’s priorities.More broadly, if Tesla’s top team doesn’t see any major strategic benefits from a split at this time, it might choose not to proceed with one. Without a clear advantage, they could prefer to maintain the current structure rather than change it unnecessarily.EV Market Outlook While the trend towards electrifying vehicles still looks to be intact, the industry is not without uncertainties. For one, the value of used Teslas has been falling, pointing to potentially falling demand as well as government discount schemes to buy new EVs, which distorts the incentives behind market pricing.Tesla’s previous stranglehold over the EV market has also been waning as the major car manufacturers catch up. There is high demand for hybrids, and new low-cost EV competitors, mostly from China, are bringing down the average price.What Does This Mean for Investors? Long-term Tesla shareholders will have preserved the memory of TSLA shares north of $400 and would likely want to see a return to those levels, something a stock split closer to $200 would delay.Tesla could theoretically do a 2-for-1 stock split at ~$200, bringing the shares back to $100 – a nice round number and affordable to most potential investors. That would mean that the adjusted Tesla record high would not be $409.97 but rather $204.99.The possible downside of such a move would be psychological. Long-term shareholders, while understanding that the all-time high price has adjusted post-split, might still want to see the shares rise over $400—and over the pre-split record high.

But the maverick CEO of SpaceX and Starlink could send a tweet anytime, keeping Tesla stock split rumors alive, so it is worth keeping abreast of the situation.

Will Tesla Stock Split in 2024 After TSLA Bounces Back?

Trump Media &amp; Technology Group&nbsp;(DJT&nbsp;-6.60%)&nbsp;has been one of the most polarizing stocks to own this year. When the optimism surrounding Donald Trump's chances of winning the presidential election was high, the stock was doing well. But when the outlook changed, the stock quickly went into negative territory.What's sometimes forgotten is that there's a real company behind the stock, not just the former president. Trump Media may not be much of a business right now, but its fundamentals are still the ultimate reason why investors should consider investing in the stock or not.However, the company's future is uncertain, and a lot seems to be hinging on whether the former president gets elected this year. Is this stock too risky to own? Could it ultimately be headed to $0?<figure class="image image_resized" style="width:100%;"><img src="https://infofinance-prod.s3.ap-southeast-1.amazonaws.com/a573cfd2ea868773a9dc3f626cf1480f_a3213d9723.png" alt="a573cfd2ea868773a9dc3f626cf1480f.png"></figure><h2 style="margin-left:0px;">It has the classic signs of a meme stock</h2>Trump Media generates minimal revenue, and the social media platform Trump Social isn't exactly taking off and giving other social media stocks cause for concern. As is the case with other&nbsp;meme stocks, factors outside of the company's core operations impact its share price, not its fundamentals.When President Joe Biden announced he was dropping out of the election in July, shares of Trump Media stock proceeded to fall, as speculators likely saw worsening prospects for Trump winning against Democratic candidate Kamala Harris than they did against Biden. Since that announcement on July 21, Trump Media has lost half its value.Another feature of a risky meme stock is that there are often plenty of&nbsp;short-sellers&nbsp;betting against it. The stock has averaged a fairly high short interest of more than 7% this year, and that percentage has been rising in recent weeks.&nbsp;This opens the door to a possible&nbsp;short squeeze&nbsp;if speculators become more bullish on Trump's chances, which would add to the overall risk and volatility that may come from owning the stock.<h2 style="margin-left:0px;">The fundamentals are what matter, and they aren't great</h2>Trump Media doesn't report user metrics -- likely because they aren't all that impressive. After all, they could help give investors a reason to buy the stock if they were good. At least they could provide investors with the hope that there's potential for the platform to draw interest from advertisers down the road, even though the business isn't profitable today and revenue isn't strong,I always look at the information a company leads with when it reports earnings, as that can help indicate what it thinks is most important for investors to focus on. For an unprofitable company, it might be user growth or some other metric to suggest it's doing well, such as shrinking losses.In Trump Media's August press release announcing earnings, the top bullet point was that it had $344 million in cash and no debt on its books. That's not exactly exciting for&nbsp;growth investors. Simply having a lot of cash doesn't make a business worth investing in, especially if it's not generating much revenue and burning through money -- as is the case with Trump Media.An average investor who's looking for a quality stock would likely pass on Trump Media stock because there isn't much substance behind it. At this point, it's largely a speculative play.<h2 style="margin-left:0px;">Is the stock heading to $0?</h2>Trump Media stock could rally if speculators believe Trump's prospects for winning the upcoming election look good and become more bullish on his chances. That would still be a short-term reason to bet on the stock -- not to&nbsp;invest in it for the long term.A short-term move fueled by election hopes wouldn't change the fundamentals, which are what matter most for investors. If the business isn't demonstrating meaningful growth in its operations, isn't profitable, and isn't generating positive cash flow, there's little reason to expect the stock to go anywhere but down.These are the reasons I think Trump Media stock ultimately will get to $0. It just may be a matter of how long until it gets there and what path it takes.

Trump Media & Technology Group (DJT -6.60%) has been one of the most polarizing stocks to own this year. When the optimism surrounding Donald Trump's chances of winning the presidential election was high, the stock was doing well. But when the outlook changed, the stock quickly went into negative territory.

Is Trump Media & Technology Stock Heading for $0?

Stock splits are essential to a functional stock market even though they don't affect the value of a company. Think of a company's market cap (value) as a pie or a pizza, if you prefer. All the split does is create more slices; it doesn't make the whole any larger. However, they are still essential, especially for those who aren't billion-dollar hedge funds. Microsoft (MSFT 0.17%) has split its shares nine times, most recently in 2003. A single share would cost $123,800 today without stock splits. That price is out of reach for many, if not most investors to buy a single share. And, as you can see below, the price is towering again.<figure class="image image_resized" style="width:100%;"><img src="https://infofinance-prod.s3.ap-southeast-1.amazonaws.com/3cdfca261af7d8e570b42af33c63039b_873c77163a.png" alt="3cdfca261af7d8e570b42af33c63039b.png"></figure>Splits also indicate that a company is booming, since the share price must have grown significantly. Unlike Microsoft, ServiceNow (NOW 1.54%) has never split; however, with share prices of $879, this could change soon.Here is why these companies are having tremendous success.Microsoft The release of the generative AI chatbot ChatGPT pushed the AI race to the center of society's and investors' consciousness. When Microsoft made a multibillion-dollar investment in its creator, OpenAI, it was full throttle for tech companies to catch up. ChatGPT integrates with Microsoft Bing, which could allow Bing to steal some market share from Alphabet's Google Search, which generated $95 billion in revenue in the first half of 2024. Even small inroads for Bing will generate billions in revenue.Another major AI product is Microsoft Copilot. Copilot integrates into several products, answers questions, summarizes or generates text, creates images, codes, and analyzes data. According to Microsoft, 60% of the Fortune 500 use Copilots, a staggering figure given the technology's newness. These innovations drove sales growth of 16% in fiscal 2024 to $245 billion. Operating income grew 24% to $109 billion, a terrific 45% margin.Microsoft stock trades at 36 times earnings, which is higher than its three-year and five-year averages of 33; however, the price-to-earnings (P/E) ratio drops to 33 on a forward basis. Due to the lofty valuation, investors shouldn't expect the price to skyrocket overnight. Still, Wall Street can justify the current price based on Microsoft's AI opportunities.ServiceNow ServiceNow and Microsoft have partnered for years on many technology initiatives. The latest integrates ServiceNow's AI product, Now Assist, with Microsoft Copilot. Without boring you with too many technical details, the Now Assist product increases productivity in areas like human resources, IT support, customer service, and others. For example, Now Assist saves customer service agents time by summarizing a customer's recent interaction so the agent doesn't have to go through the transcript, allows agents to search vast databases quickly to find answers faster, etc. The increased productivity is invaluable for companies in a highly competitive world.<figure class="image"><img src="https://infofinance-prod.s3.ap-southeast-1.amazonaws.com/download_317e644b63.avif" alt="download.avif"></figure>Around 85% of the Fortune 500 use ServiceNow. The chart below shows just how much ServiceNow's customer base has grown. Each year that a customer adopts ServiceNow is represented by a different color, and the expansion shows the increased revenue from these customers over time.ServiceNow is in a higher growth phase than Microsoft ($2.6 billion in sales on 22% growth last quarter), so sales rather than bottom-line earnings better represent its valuation. Its current price-to-sales ratio is 18, which aligns with its 5-year average. Looking forward, the company expects 2024 subscription sales of $10.5 billion, and $15 billion in 2026. This means the stock price could conceivably return nearly 50% through 2026 by maintaining the same valuation.Microsoft and ServiceNow are making huge moves in AI, and with soaring stock prices, splits may be on the horizon.

Stock splits are essential to a functional stock market even though they don't affect the value of a company. Think of a company's market cap (value) as a pie or a pizza, if you prefer. 

Stock-Split Watch: 2 Artificial Intelligence (AI) Companies That Look Ready to Split

Super Micro Computer stock (NASDAQ: SMCI) has seen a big sell-off in recent months, falling from highs of nearly $1,200 per share in March to about $445 presently. There have been a couple of trends driving the sell-off including concerns about gross margins, some supply chain issues, and the company’s delay in filing its Form 10-K with the SEC, after short-seller, Hindenburg Research accused the company of irregularities with its accounting. Despite these setbacks, the stock remains up by about 7x from 2022, driven by surging demand for server systems fueled by the generative artificial intelligence wave. However, with these challenges, the stock could decline further, possibly touching around $200 per share.<figure class="image image_resized" style="width:100%;"><img src="https://infofinance-prod.s3.ap-southeast-1.amazonaws.com/960x0_8_eed079d9cd.webp" alt="960x0 (8).webp"></figure>Super Micro stock trades at just about 18x trailing earnings and 12x forward earnings at the current price level. Although this isn’t a very high multiple, there’s a very real possibility that Super Micro’s earnings could decline after a couple of years of stellar growth. Moreover, the uncertainty relating to compliance-related matters could weigh on the stock. This analysis outlines how the stock could decline by about 50% in the next few years by looking at the company’s potential revenue growth, net margins, and price-to-earnings multiple. While this article spotlights the downside case for the stock, the upside case can be seen here: Can Super Micro stock fare better than AI bellwether Nvidia?SMCI Rallied Big But Witnessed Considerable VolatilitySMCI stock has generated better returns than the broader market in each of the last 3 years. Returns for the stock were 39% in 2021, 87% in 2022, and 246% in 2023. However, the stock has also declined by roughly 60% since March 2024 making it a relatively volatile bet. In contrast, the Trefis High Quality Portfolio, with a collection of 30 stocks, is considerably less volatile. And it has outperformed the S&amp;P 500 each year over the same period. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride as evident in HQ Portfolio performance metrics. Given the current uncertain macroeconomic environment around rate cuts and multiple wars, could SMCI see a strong jump?Revenues Could Fall As Server Investment Cycle TurnsSuper Micro Computer is a data center solutions provider, which sells server systems, server boards, storage, networking solutions, management software, and installation and maintenance services. SMCI is projected to grow its revenue by close to 90% in FY’25 (the current fiscal year) to levels of about $28 billion, per consensus estimates, as data center-related spending remains strong, with tech companies continuing to invest in AI and accelerated computing capacity. However, the current euphoria might be masking the fact that the server market can, in fact, be cyclical and things could take a turn for the worse.The underlying economics of the end market for the broader AI ecosystem remain weak, and most of AI customers remain loss-making. Large language models are also very expensive to build and train. We could very well be in a phase where companies are seeing so-called FOMO, compelling them to invest in AI just because their rivals are doing so, without a thought about the return on investments. As shareholders seek better returns, we could see capital spending cool off, impacting the likes of Super Micro. Moreover, most AI companies are going through the compute-intensive training phase at the moment, and there’s a real possibility that demand for computing power and servers could cool off once these companies move to the less compute-intensive deployment phase. The server market is also very commoditized. While Super Micro does have some competitive advantages, given that its products are seen as being more customizable, the company’s lead in these areas is hardly insurmountable and competition could mount considerably. Considering a potential cooling of demand and higher competition, if SMCI’s revenues decline by about 15% each year over FY’26 and FY’27 revenues could stand at $20 billion by FY’27. Looking for more companies that can benefit from increased digitization and AI deployment?Combine this weaker-than-expected revenue growth with the possibility that Super Micro’s adjusted net margins (net income, or profits after all expenses and taxes, calculated as a percent of revenues) can decline a bit. Although margins expanded from 6% in FY’22 to about 9% in FY’24, driven by higher economies of scale, they could decline meaningfully if sales drop and competition mounts reducing the company’s volumes and pricing power. Moreover, SMCI has seen its gross margins face some pressure in recent quarters as it sells a higher mix of liquid-cooling systems, which are proving expensive to produce and this trend could also continue. Considering this, it may be reasonable to assume that Super Micro’s adjusted net margins could decline from an estimated 9% this year to about 6.5% by FY’27, or about 0.72x current levels.Valuation Multiple Could ContractIf revenues decline by about 0.7x between FY’25 and FY’27, with margins contracting by about 0.72x over the same period, this would imply that earnings could fall by about 0.5x. Now if earnings fall by 50%, the P/E multiple is bound to take a hit as investors re-assess SMCI’s overall long-term earnings growth prospects. If SMCI’s P/E multiple gradually shrinks from a multiple of about 12x based on FY’25 earnings presently to about 10x, this could translate into a decline in SMCI stock to levels of under $200 per share by 2027. What about the time horizon for this negative-return scenario? In practice, it won’t make much difference whether it takes 2 years or 5 - if the competitive threat plays out and SMCI sees the demand cycle turn, we could see a correction. And a sizable one at that.&nbsp;

Super Micro Computer stock (NASDAQ: SMCI) has seen a big sell-off in recent months, falling from highs of nearly $1,200 per share in March to about $445 presently. 

A Scenario Where Super Micro Stock Could Fall 50%

Market

Bitcoin just dropped 24% from its all-time high — what happens next? Analysts say BTC is “very close to its local bottom,” but could a Black Swan event send it crashing even lower?Macro turmoil shakes BitcoinBitcoin’s price has been on a bumpy stretch. After hitting an all-time high of $109,114 in January when President Donald Trump took office and established a more pro-crypto administration, the market has taken a sharp turn.As of Mar. 13, Bitcoin is sitting around $82,600, down 24% from its January peak, after plunging to a four-month low of $76,600 on Mar. 11.<img class="image_resized" style="width:75%;" src="https://infofinance-prod.s3.ap-southeast-1.amazonaws.com/20250314_Nhung_gi_chung_ta_dang_thay_hien_tai_trong_giong_het_tha_8254891d20.jpg" alt="20250314 Những gì chúng ta đang thấy hiện tại trông giống hệt thá.jpg">The market is facing headwinds from multiple directions. Wall Street is leaning into risk aversion, U.S. recession fears are growing, and Trump’s new tariff policies have added uncertainty to the mix.Many investors were also disappointed by the lack of fresh BTC purchases under the Trump administration’s strategic reserve plan, which some had hoped would provide a steady buying force for Bitcoin.On the macroeconomic side, inflation data released on Mar. 12 offered a brief moment of optimism. The consumer price index rose by just 0.2% in February, slowing to an annual inflation rate of 2.8% — down from 0.5% in January. The core CPI, which strips out food and energy prices, also landed at 3.1%, its lowest level since April 2021.The market initially reacted positively to the softer CPI data. Bitcoin pushed above $84,000, and altcoins saw double-digit gains. The S&amp;P 500 and Nasdaq 100 also recorded slight upticks.But the optimism didn’t last. As the day progressed, BTC and equities erased most of their gains, weighed down by Trump’s tariff war escalating against major trading partners.In a dramatic move, Trump slapped a 25% tariff on steel and aluminium imports from Canada, prompting Canada to retaliate with 25% tariffs on $21 billion worth of U.S. goods.Just hours later, the EU fired back with its own $28 billion in retaliatory tariffs on U.S. products, further intensifying trade tensions.These actions have put investors on edge, shifting market sentiment toward a risk-off approach, where cash and safer assets like gold and bonds become more attractive than volatile plays like Bitcoin.With all these forces at play, Bitcoin finds itself at a crossroads. Will it stabilize and gear up for another run, or are further corrections on the horizon? Let’s dig deeper.Institutional money retreatsSince Feb. 13, spot Bitcoin ETFs have been under pressure, with money flowing out at an aggressive pace. While there were a few days of net positive inflows, they were small in volume compared to the heavy outflows on most days.The worst hit came on Feb. 25, when ETFs saw their largest single-day outflow ever — over $1 billion, marking a clear risk-off sentiment among institutional investors.Despite the outflows, as of Mar. 12, BlackRock’s IBIT remains the dominant ETF in the market, holding nearly 568,000 BTC. Fidelity’s FBTC and Grayscale’s GBTC follow, managing 197,500 BTC and 196,000 BTC, respectively.Adding a political layer to the Bitcoin narrative, at least six members of President Trump’s cabinet hold Bitcoin, either directly or indirectly through ETFs.Among them, Health and Human Services Secretary Robert F. Kennedy Jr. has the largest disclosed stake, with a Bitcoin Fidelity crypto account valued between $1 million and $5 million.Treasury Secretary Scott Bessent holds between $250,001 and $500,000 worth of BlackRock’s iShares Bitcoin Trust ETF. While Bessent has pledged to divest his holdings within 90 days, his position highlights the growing connection between Bitcoin and top-level U.S. policymakers.Meanwhile, Bitcoin’s open interest, a crucial metric showing the total value of outstanding BTC derivative contracts, has been in a downward spiral.After peaking at $70 billion on Jan. 22, following Bitcoin’s new all-time high, open interest has been on a steady decline. As BTC tumbled, OI followed, dropping to a low of $45.7 billion on Mar. 11, the same day BTC hit its four-month low.However, in the last two days, open interest has started climbing back, adding over $1 billion as of Mar. 13, in sync with BTC’s price recovery.The heavy ETF outflows and dropping open interest paint a picture of institutional hesitation and reduced speculative activity over the past few weeks.Bitcoin’s rally in January was fueled by strong ETF inflows and high-leveraged positions, but as soon as macro uncertainty and Trump’s trade war escalated, the market turned defensive.The latest open interest rebound is a potential signal that traders are cautiously re-entering long positions, but the recovery is slow. A sustained increase in both OI and ETF inflows will be critical for Bitcoin to regain momentum.History hints at a reboundBitcoin’s recent pullback from its all-time high has been sharp, but historical trends and technical indicators suggest that this could either be a temporary bottom or the beginning of a deeper correction.Technical analyst CryptoCon points out that Bitcoin has now reached historically low RSI Bollinger Band % levels, a point where BTC rarely stays for long.To break this down — Relative Strength Index measures momentum, while Bollinger Bands show volatility. When the RSI Bollinger % reaches extreme lows, it suggests that Bitcoin is at an oversold level, meaning the downside pressure is likely exhausting itself.In previous cycles, when BTC hit similar RSI Bollinger % lows, it marked a strong local bottom before the next leg up.According to CryptoCon, Bitcoin has just completed Phase 4, a part of the market cycle where price breaks past the previous all-time high—something we saw in January 2013, December 2016, and November 2020.In all three of these cycles, BTC had a correction after the breakout before rallying to a new high within the next 9 to 12 months.He believes that this market cycle is behaving exactly like March 2017, when BTC faced a deep correction but then recovered to rally further. If that’s the case, this means we are still months away from a cycle top.However, this optimistic outlook is far from universally accepted. Doctor Profit, another respected analyst, lays out two possible scenarios for BTC’s next move.In a normal market environment, BTC’s local bottom should form between $68,000 and $74,000, as confirmed by the Market Value to Realized Value indicator.The MVRV indicator measures whether Bitcoin is overvalued or undervalued by comparing the current market price to the average purchase price of all BTC in circulation.Right now, the MVRV suggests that BTC is approaching a strong bottom zone, meaning downside risk is limited unless something drastic happens.That’s where the Black Swan risk comes in. While Doctor Profit initially believed a Black Swan event was highly unlikely, recent economic shifts — such as Trump’s aggressive tariff moves, global trade war concerns, and broader recession fears — make him less certain.A severe global economic downturn, a financial crisis, or a major crypto industry collapse could push Bitcoin much lower, possibly toward $50,000. While he still leans toward the first scenario, he no longer rules out a full-blown market wipeout.The signs are mixed. Bitcoin’s historical cycles suggest this is a healthy pullback before another rally, but global conditions have rarely been this unstable.For now, investors should stay cautious, watch key support levels, and be prepared for heightened volatility.While historical data favors a recovery, markets don’t move in a vacuum, and external shocks can override even the strongest technical indicators. Never invest more than you can afford to lose.

Bitcoin just dropped 24% from its all-time high — what happens next? Analysts say BTC is “very close to its local bottom,” but could a Black Swan event send it crashing even lower?

“What we’re seeing now is looking just like March 2017”. Analysts explain why Bitcoin could soon recover — or crash harder

Asia-Pacific markets mostly rose on Friday despite the plunge in all three benchmarks in the U.S. over U.S. President Donald Trump’s tariff plans.In another sign of a trade war escalation, Trump threatened to enact 200% tariffs on all alcoholic products coming from the European Union in retaliation for the bloc’s 50% tariff on whiskey. Trump said he would not be changing his mind on a broader group of tariffs set to be implemented on April 2.Australia’s S&amp;P/ASX 200&nbsp;gained 0.35%, reversing course from losses in the previous session.Over in Japan, the benchmark Nikkei 225 rose 0.18% while the broader Topix index gained 0.29%.South Korea’s Kospi index lost 0.21% in choppy trade while the small-cap Kosdaq advanced by 1.72%.Hong Kong’s Hang Seng Index began the day 1.1% higher while Mainland China’s CSI 300 reversed course from losses in its previous session to rise 0.97%.The S&amp;P 500 dropped 1.39% to settle at 5,521.52. The index ended the day in correction, 10.1% off its record close. The Dow Jones Industrial Average fell 537.36 points, or 1.3%, marking its fourth day of declines and closing at 40,813.57. The Nasdaq Composite shed 1.96% with shares of Tesla and Apple lower.The disorderly rollout of Trump’s U.S. trade policy has rattled markets this month. The S&amp;P 500 and Nasdaq are respectively on track for losses of 4.3% and 4.9% week to date. The Dow is off about 4.7% in the period, tracking for its worst week since June 2022.

Asia-Pacific markets mostly rose on Friday despite the plunge in all three benchmarks in the U.S. over U.S. President Donald Trump’s tariff plans.

Asia-Pacific markets rise despite fall in Wall Street following escalation in Trump’s tariff threats

S&amp;P 500 futures ticked lower early Thursday after the index posted a winning session in what has been a rocky week.Futures tied to the broad market index dropped 0.66%, while futures linked to the Dow Jones Industrial Average lost 187 points, or 0.45%. Nasdaq 100 futures declined 0.95%.<img src="https://infofinance-prod.s3.ap-southeast-1.amazonaws.com/20250313_Chi_so_S_and_P_500_giam_nhe_sau_phien_phuc_hoi_giua_tuan_bien_dong_306c0a6d97.jpg" alt="20250313 Chỉ số S&amp;P 500 giảm nhẹ sau phiên phục hồi giữa tuần biến động.jpg">In extended trading, Intel popped about 10% after the company said it had appointed Lip-Bu Tan as its new CEO. Adobe slipped roughly 4% after forecasting weaker-than-expected earnings in the fiscal second quarter.In Wednesday’s regular trading, beleaguered tech stocks caught a bid as investors snapped up shares, lifting the Nasdaq Composite to a 1.2% gain and carrying the S&amp;P 500 to a 0.5% advance. The tech sector was the top performer in the session, up nearly 1.6% as Nvidia and Palantir Technologies surged. The 30-stock Dow was an outlier, however, notching a third straight losing day and falling 0.2%.February’s reading of the consumer price index, a wide-ranging measure of costs across the U.S. economy, came in softer than expected. Headline inflation rose 0.2% from the prior month and 2.8% on an annual basis.The results may have eased traders’ concerns about the direction of the economy and the impact tariffs could have on inflation. Indeed, President Donald Trump’s steel and aluminum tariffs went into effect on Wednesday, and Canada slapped a 25% retaliatory levy on more than $20 billion of U.S. goods.Though market strategists have been watching for a technical bounce after the recent sell-off, some say the latest inflation print likely isn’t enough to lead to a sizable rebound. Concerns over Trump’s trade policies remain a key hangover on investor sentiment, and they throw into question how the Federal Reserve may proceed on interest rates.“We still believe the next Fed rate move is lower, but it is hard to have high confidence with the impact of tariffs still uncertain,” said Scott Helfstein, Global X’s head of investment strategy. “The key question is whether tariffs will have a greater impact on growth or prices. In recent weeks, the rates market has signaled that weaker growth is the bigger concern with three cuts now being priced for this year.”Week to date, all three major averages are on pace for steep declines. The S&amp;P 500 and Nasdaq are on track for losses of about 3%. The Dow is off 3.4% in the period, heading for its worst week since March 2023. The broad market index briefly dipped into correction territory on Tuesday, down 10% from a record set in February.A couple of key economic reports are due on Thursday, with weekly jobless claims and the February producer price index on deck.On the earnings front, Dollar General and Ulta Beauty are slated to report Thursday.

S&P 500 futures ticked lower early Thursday after the index posted a winning session in what has been a rocky week. Futures tied to the broad market index dropped 0.66%, while futures linked to the Dow Jones Industrial Average lost 187 points, or 0.45%. Nasdaq 100 futures declined 0.95%.

S&P 500 futures fall even after index posts first winning session in three: Live updates

The cost of goods and services in the U.S. rose at a&nbsp;slower-than-expected pace in February, as consumers and businesses remained wary of the inflationary impact of tariffs.According to a report from the&nbsp;U.S. Bureau of Labor Statistics, the&nbsp;Consumer Price Index (CPI) increased by 0.2% month-over-month and 2.8% year-over-year, both&nbsp;0.1 percentage points below forecasts.Excluding food and energy, the&nbsp;core CPI also rose&nbsp;0.2% on the month, falling short of economists' expectations of&nbsp;0.3%. On a year-over-year basis,&nbsp;core CPI climbed 3.1%, slightly below the&nbsp;3.2% forecast.<img src="https://infofinance-prod.s3.ap-southeast-1.amazonaws.com/20250313_Tin_vui_cua_Fed_CPI_My_tang_yeu_hon_du_bao_1_e61fed880a.jpg" alt="20250313 Tin vui của Fed CPI Mỹ tăng yếu hơn dự báo 1.jpg"><img src="https://infofinance-prod.s3.ap-southeast-1.amazonaws.com/20250313_Tin_vui_cua_Fed_CPI_My_tang_yeu_hon_du_bao_2_a69b0eeffa.jpg" alt="20250313 Tin vui của Fed CPI Mỹ tăng yếu hơn dự báo 2.jpg">Markets React PositivelyU.S. equity markets responded positively to the news, with&nbsp;futures gaining across the board.In February,&nbsp;housing costs rose by 0.3%, a softer increase compared to January, though still accounting for nearly half of the CPI’s monthly gain.&nbsp;Housing costs make up over one-third of the CPI basket.Food and energy indices both&nbsp;rose 0.2%. Notably,&nbsp;used car prices surged 0.9%, while apparel prices climbed 0.6%.In the food category,&nbsp;egg prices soared 10.4% from the previous month, marking a staggering 58.8% increase year-over-year. This surge pushed the broader food index, including&nbsp;meat, poultry, and fish, up&nbsp;7.7% from a year ago.&nbsp;Beef prices also rose 2.4% in February.Economic Crossroads Amid Trade TensionsThis report comes at a&nbsp;critical juncture for the U.S. economy and financial markets. Recently,&nbsp;equity markets have suffered sharp declines as President&nbsp;Donald Trump escalated trade tensions, fueling&nbsp;recession fears among investors.On March 12, Trump’s&nbsp;25% tariff on steel and aluminum took effect, prompting&nbsp;retaliatory measures from the European Union.Fed officials are&nbsp;closely monitoring these developments. Policymakers generally view&nbsp;tariffs as having a modest, one-off impact on inflation, with&nbsp;limited long-term effects on key economic indicators.However, an&nbsp;expanded trade war could alter that outlook if&nbsp;price increases become more entrenched in the economy. Markets currently&nbsp;anticipate the Fed to cut rates in May, with a total of&nbsp;75 basis points in reductions expected for 2025."The February CPI report provides further evidence of progress in core inflation, with price pressures easing following January’s strong data," said Kay Haigh, Co-Global Head of Fixed Income and Liquidity Solutions at Goldman Sachs Asset Management. "While the Fed is likely to hold rates steady at this month’s meeting, the combination of cooling inflation and growth slowdown risks suggests the central bank may need to continue its easing cycle."Fed’s Next Moves &amp; Growth OutlookThe Fed is set to meet next week and is widely expected to&nbsp;maintain its benchmark rate at 4.25%-4.5%.Meanwhile, according to the&nbsp;Atlanta Fed’s GDPNow model, the&nbsp;U.S. economy could contract by 2.4% in Q1 2025, marking the&nbsp;first quarterly decline in three years.By: Vu HaoTrans: Info Finance

The cost of goods and services in the U.S. rose at a slower-than-expected pace in February, as consumers and businesses remained wary of the inflationary impact of tariffs.

Fed’s Positive News: U.S. CPI Rises Less Than Expected

Emirati state-owned investment firm MGX announced a $2 billion investment into Binance, in what marks the cryptocurrency exchange’s first institutional investment and the “single largest investment” ever paird in crypto.In a joint press release, the firms said the minority stake would be paid for in stablecoins, making it the “largest investment ever” paid in cryptocurrency. Stablecoins are a type of digital asset designed to hold a constant value, typically with a peg to a fiat currency.&nbsp;Abu Dhabi launched the MGX investment firm last year with a focus on AI technology. In September, MGX partnered with the likes of BlackRock&nbsp;and Microsoft&nbsp;to launch a more than $30 billion AI fund, but it had yet to invest in the cryptocurrency industry and blockchain sectors.&nbsp;“MGX’s investment in Binance reflects our commitment to advancing blockchain’s transformative potential for digital finance,” Ahmed Yahia, managing director and CEO at MGX, said in a statement.The press release added that “by partnering with the leading industry player, MGX aims to enable innovation at the intersection of AI, blockchain technology and finance.”Binance and MGX did not immediately comment on the size of the stake or what stablecoin would be used for the payment. Binance has not responded to an inquiry on whether the deal had been completed.As part of the UAE’s broader ambitions to become a global technology leader, it has been growing into a regional crypto hub.&nbsp;Binance, the largest cryptocurrency exchange in the world, has grown its Middle East footprint as it faced regulatory hurdles and enforcement measures in other jurisdictions in recent years,&nbsp;According to the press release, Binance employs approximately 1,000 of its roughly 5,000 global workforce in the UAE. It adds that it now boasts over 260 million registered users and has surpassed $100 trillion in cumulative trading volume.&nbsp;Binance CEO Richard Teng is scheduled to take part in a panel session at CNBC’s CONVERGE LIVE in Singapore at 2:40 p.m. local time (2:40 a.m. ET) on Thursday.Cre: CNBC

Emirati state-owned investment firm MGX announced a $2 billion investment into Binance, in what marks the cryptocurrency exchange’s first institutional investment and the “single largest investment” ever paird in crypto.

Binance secures ‘largest investment ever’ in crypto as Abu Dhabi’s MGX pledges $2 billion

The&nbsp;S&amp;P 500 slid in a head-spinning session for traders as they grappled with new tariffs proposed by&nbsp;President Donald Trump that were in flux throughout most of Tuesday. The trade policy uncertainty has brought the benchmark to the brink of a&nbsp;correction, which is defined as a decline of&nbsp;10% from its high.The&nbsp;S&amp;P 500 ended the session&nbsp;0.76% lower, falling to&nbsp;5,572.07. At its low of Tuesday’s session, the index was&nbsp;10% below its record close. The&nbsp;Dow Jones Industrial Average lost&nbsp;478.23 points, or&nbsp;1.14%, to close at&nbsp;41,433.48. The&nbsp;Nasdaq Composite slipped&nbsp;0.18%, closing at&nbsp;17,436.10.Market Turmoil Over Tariff UncertaintyThe&nbsp;S&amp;P 500 was in the green at one point during the trading session before&nbsp;Trump declared on Truth Social that Canadian steel and aluminum duties would double to&nbsp;50% from 25%, effective Wednesday. The president made the move in response to&nbsp;Ontario Premier Doug Ford’s surcharge on electricity exported to the U.S.<img class="image_resized" style="width:50%;" src="https://infofinance-prod.s3.ap-southeast-1.amazonaws.com/20250312_Pho_Wall_Chao_Dao_Dow_Jones_Mat_Hon_450_Diem_S_and_P_500_Ghi_Nhan_Hai_Phien_Giam_Lien_Tiep_Vi_Bat_On_Thue_Quan_Duoi_Thoi_Trump_2_efc99f967e.jpg" alt="20250312 Phố Wall Chao Đảo Dow Jones Mất Hơn 450 Điểm, S&amp;P 500 Ghi Nhận Hai Phiên Giảm Liên Tiếp Vì Bất Ổn Thuế Quan Dưới Thời Trump 2.jpg">Later in the day,&nbsp;Ford announced he was temporarily suspending the&nbsp;25% surcharge after discussions with&nbsp;Commerce Secretary Howard Lutnick.Finally, top&nbsp;Trump trade advisor Peter Navarro stated on&nbsp;CNBC Tuesday afternoon that Trump would&nbsp;not hike the tariffs on Canadian steel and aluminum to&nbsp;50%. However, the&nbsp;25% duty that was originally planned would still take effect.This is the&nbsp;latest in a series of disorderly trade policy moves that have rattled&nbsp;corporate and consumer confidence, weighing on markets over the past&nbsp;three weeks.Market Sell-Off and Investor SentimentOn Monday, the&nbsp;Nasdaq experienced its worst day since September 2022, dropping&nbsp;4%. The&nbsp;30-stock Dow fell nearly 900 points.Citigroup this week&nbsp;lowered its rating on&nbsp;U.S. stocks from&nbsp;overweight to&nbsp;neutral, citing a&nbsp;“pause in U.S. exceptionalism” as the primary reason.“There’s clearly a tolerance for pain on the part of the administration in pursuit of trade goals that are not necessarily entirely economic in nature,” said&nbsp;Ross Mayfield, Baird investment strategist.&nbsp;“At this point, I’m still in the camp that we’re not on the doorstep of a recession, but maybe a slowdown or growth scare. Non-recession sell-offs tend to be shorter and milder than the recessionary ones.”Recession Fears MountingDelta Air Lines added to recession concerns Tuesday as the airline&nbsp;slashed its earnings outlook due to&nbsp;weaker U.S. demand, causing its stock to drop&nbsp;7.3%. Other&nbsp;travel-related stocks followed suit, with&nbsp;Disney and&nbsp;Airbnb both falling&nbsp;5%.Trump Dismisses Market ConcernsAlong with haphazard tariff moves, comments from the administration in recent days have&nbsp;stoked investors’ fears about the economy. On Tuesday,&nbsp;Trump appeared unconcerned by the recent market sell-off.“Markets are going to go up and they’re going to go down but, you know what, we have to rebuild our country,” Trump said when asked about the stock market, according to the&nbsp;White House pool report.Investors Await CPI DataInvestors are&nbsp;eagerly anticipating the release of&nbsp;February’s Consumer Price Index (CPI) due Wednesday.“It’ll be really important that we don’t see an upside surprise on CPI because at this point, the Fed does have plenty of dry powder to step in to cut rates and try to boost demand if the economy were to meaningfully slow,” Mayfield added.&nbsp;“But they can only really do that if they feel that inflation expectations and inflation are well anchored.”With market volatility remaining high, all eyes will be on&nbsp;key economic indicators and further trade developments in the coming days.Cre: CNBC

The S&P 500 slid in a head-spinning session for traders as they grappled with new tariffs proposed by President Donald Trump that were in flux throughout most of Tuesday. The trade policy uncertainty has brought the benchmark to the brink of a correction, which is defined as a decline of 10% from its high.

Dow Drops More Than 450 Points, S&P 500 Posts Back-to-Back Loss Over Trump Tariff Uncertainty

Warning

As the forex market continues to grow, many new investors join with hopes of making a profit from trading. However, this also provides an opportunity for fraudulent brokers (scam brokers) to operate with increasingly sophisticated schemes to swindle investors. One of the most common forms of fraud today is demanding additional payments under the guise of "income tax" or "financial proof" before allowing withdrawals.The Scam of Tax Payments and Financial Proof RequestsMany investors, after trading for some time and seeing profits in their accounts, often face difficulties withdrawing funds due to scam brokers. A widely used tactic is requiring traders to pay an upfront fee labeled as "income tax" or "financial proof" to "ensure transaction security." These brokers often present fake documents or official-looking notices, falsely claiming they are mandated by tax authorities to pressure investors into paying.In reality, no legitimate financial authority or licensed forex broker requires traders to pay personal income tax directly to the broker. Any tax obligations (if applicable) are the responsibility of the investor in their country of residence and must be settled according to local tax regulations. If a broker insists on tax payments before allowing withdrawals, it is a strong indication of a scam.Fake Accounts – A Psychological Trap to Encourage More DepositsAnother deceptive tactic used by scam forex brokers is creating fake investor accounts within trading communities or chat groups. Investors often see others in the group claiming they have paid the required “tax” or “financial proof fee” and then successfully withdrawn their profits. This creates a false sense of security, leading real investors to believe the process is legitimate and convincing them to follow suit.In reality, these so-called investors are fake accounts operated by the scam broker’s employees to manipulate trust. They use multiple social media accounts to post fabricated success stories, reinforcing the illusion that withdrawals are being processed. Once multiple investors are convinced and deposit additional funds, the scammers disappear, leaving traders unable to access their money.Legitimate Forex Brokers Will Never Charge Additional Fees from InvestorsIt is crucial for investors to understand that reputable and regulated forex brokers never request additional payments beyond standard trading fees. Fees, taxes, or so-called “financial proof” requirements do not exist in the withdrawal process of legitimate brokers.If a broker asks you to deposit extra funds before processing withdrawals for any reason, be extremely cautious and verify its legitimacy. Investors should only trade with brokers licensed by reputable financial authorities such as the&nbsp;FCA (UK), ASIC (Australia), or CySEC (Cyprus) and check reviews from the trading community before committing funds.Key Advice for InvestorsDo not deposit additional money upon request – If a broker asks for extra payments to release withdrawals, stop trading immediately and investigate the broker's credibility.Verify the broker’s license – Check if the broker is regulated by a well-known financial authority.Do not trust social media groups blindly – People claiming successful withdrawals in community groups may be scam brokers’ employees.Consult trusted forex trading forums – Read reviews on reputable forex forums to assess the broker’s reputation.Report suspicious activities – If you suspect you have been scammed, report the broker to financial authorities for assistance.Forex scams are becoming increasingly sophisticated, and investors must equip themselves with the knowledge to safeguard their funds. Always stay alert to enticing promises and only trade with licensed brokers to ensure financial security.

As the forex market continues to grow, many new investors join with hopes of making a profit from trading. However, this also provides an opportunity for fraudulent brokers (scam brokers) to operate with increasingly sophisticated schemes to swindle investors. One of the most common forms of fraud today is demanding additional payments under the guise of "income tax" or "financial proof" before allowing withdrawals.

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