Coinbase Gets A Warm Welcome Into The S&P 500

14th May 2025

Coinbase gains a 24% increase as it gets added to the S&P 500, which caused a concurrent rise in the price of both Bitcoin and Strategy ($MICRO). Samsung bets big on AI through acquisition. United Health CEO abruptly steps down which causes an already beaten stock to decline even further. All this and more in today's Read It And Eat

Major Headlines

Coinbase Soars 24% After S&P 500 Invite — A Big Win for Crypto

Coinbase shares soared nearly 24% on Tuesday after news broke that the company will officially join the S&P 500 later this month — a significant milestone both for the crypto exchange and the broader digital asset industry. The move is being hailed as a symbol of how far crypto has come, especially after years of regulatory scrutiny.

"Coinbase has gone from facing intense litigation with the SEC to becoming the latest member of the S&P 500," noted Bernstein's Gautam Chhugani. He called it a "dramatic turnaround" that reflects crypto’s growing role in financial innovation.

Coinbase CFO Alesia Haas echoed that sentiment, saying the inclusion is a big deal not just for the company but for the entire sector. “Joining this prestigious index shows how much progress Coinbase and crypto have made — and where things are headed,” she said.

The announcement follows several tailwinds for the industry, including Bitcoin's recent rally past $100,000 and a friendlier regulatory environment under the Trump administration. Coinbase stock, which had already seen strong gains post-election, has climbed over 3% year-to-date. Bernstein maintains a "Buy" rating with a $310 price target, highlighting the platform’s $320 billion in assets and 10 million active users — solid footing as crypto moves further into the financial mainstream. Yahoo Finance

Samsung Bets on AI Infrastructure With Acquisition of Germany’s FläktGroup

Samsung Electronics has announced plans to acquire German cooling and ventilation company FläktGroup for €1.5 billion (around $1.68 billion), as part of its push to meet rising demand for data center infrastructure, particularly those powering artificial intelligence projects. This marks Samsung’s biggest acquisition in nearly a decade and signals its renewed interest in strategic expansion.

The South Korean tech giant is buying FläktGroup from private equity firm Triton and expects the deal to close later this year. In a statement, Samsung noted that the data center market requires specialized expertise, global supply networks, and tailored system designs—all areas where FläktGroup brings value. The move aligns with Samsung’s ongoing efforts to support its broader portfolio, including electronics, semiconductors, and now, infrastructure for AI applications.

Samsung’s leadership had already hinted at pursuing meaningful acquisitions this year, especially after falling behind in the AI chip race dominated by players like Nvidia. While some investors may have hoped for a blockbuster chip-related acquisition, analysts see this deal more as a strategic reinforcement of Samsung’s existing consumer electronics and HVAC (heating, ventilation, and air conditioning) business. “It’s not the game-changer the market was expecting,” said Greg Roh, head of research at Hyundai Motor Securities. “It feels like Samsung is being cautious rather than taking bold risks.”

Still, the acquisition fits into Samsung’s broader growth strategy. In recent years, the company has quietly built momentum in adjacent sectors. It hasn’t made a major purchase since acquiring Harman for $8 billion in 2017, but it has recently expanded into consumer audio, medical tech, and robotics. Earlier this year, Samsung also boosted its stake in South Korea’s Rainbow Robotics and formed a joint venture with Lennox in the HVAC space. With FläktGroup now in the mix, Samsung is clearly laying the groundwork for longer-term diversification. Bloomberg

U.S. Drops Controversial AI Chip Rule in Overhaul of Biden-Era Restrictions

The U.S. government has rolled back a key Biden-era policy on artificial intelligence chip exports, removing the so-called “AI Diffusion Rule” in a move aimed at supporting American tech innovation and easing tensions with key global partners. The Department of Commerce announced the change on Tuesday, saying the rule would have imposed excessive red tape on U.S. companies while doing little to limit China’s access to advanced technology.

The now-rescinded rule had placed limits on how many AI chips could be sold to countries like India and Switzerland—restrictions that tech giants including Microsoft and Oracle had criticized for harming U.S. business opportunities abroad. Critics argued that the rule hurt America’s allies more than its adversaries. Commerce officials echoed that concern, noting that the regulation threatened diplomatic relationships and could have slowed innovation at home.

In its announcement, the Trump administration emphasized a shift toward a more targeted strategy—one that blocks access to advanced chips for adversarial nations like China, while building stronger tech alliances with trusted countries. “We’re committed to keeping cutting-edge American AI technology in the right hands,” said Jeffrey Kessler, Under Secretary of Commerce for Industry and Security. The statement also reinforced the government's stance on Huawei, warning that using Huawei’s Ascend chips could violate U.S. export laws.

Countries previously restricted under the diffusion rule—such as Saudi Arabia, the UAE, Singapore, and Israel—are expected to benefit significantly. U.S. chipmakers like Nvidia, AMD, and Intel also stand to gain from expanded global access. However, analysts note the Biden-era restrictions on Chinese firms remain largely intact, meaning the impact on China’s AI development will be limited. As the Trump administration considers a revised framework for chip exports, a more customized, country-by-country approach may be on the horizon. Wall Street Journal

UnitedHealth Stock Plunges as CEO Steps Down and Guidance Gets Pulled

It was a rough day for UnitedHealth Group. The company’s stock tumbled nearly 18% on Tuesday after CEO Andrew Witty unexpectedly stepped down, citing personal reasons. In a surprise move, former CEO Stephen Hemsley is returning to lead the company at age 72. Alongside the leadership shakeup, UnitedHealth also suspended its 2025 financial guidance — a signal that it's bracing for more uncertainty ahead.

The company has had a challenging year, with the stock already down over 38% in 2025. It's been under pressure from rising healthcare costs, mounting political scrutiny, and multiple federal investigations — not to mention a damaging cyberattack on its Change Healthcare unit. Questions around its AI-driven claims processing and its dominant role as a pharmacy benefits manager have also added fuel to the fire.

Adding to the turbulence, the tragic killing of a former executive last year triggered public backlash and investor lawsuits. Hemsley, now back at the helm, acknowledged the gravity of the situation, telling investors, “Many of these challenges are within our control, and we’re committed to turning things around.”

Despite all this, UnitedHealth says it’s aiming for a rebound by 2026, with long-term growth projections in the 13% to 16% range. With $400 billion in revenue last year and a leading share in the Medicare Advantage space, the company still has the scale — but now it needs to regain the trust of investors, regulators, and patients alike. Yahoo Finance

Minor Headlines

• UAE plans to launch AI education for children starting at age four. Financial Times

• Saudi Arabia unveils AI startup ‘Humain’ in lead-up to Trump’s visit. Bloomberg

• The Trump administration cancels an additional $450 million in funding to Harvard. Financial Times   

• The US imposes sanctions on firms accused of transporting Iranian oil to China. Reuters

• China slams UK-US trade agreement, according to Financial Times. BBC

• US sets sights on UK meat and seafood sectors in trade push. Bloomberg

• April US inflation dips to 2.3% amid looming tariff concerns. Financial Times

• Perplexity approaches second funding round in half a year, valuing company at $14B. Financial Times   

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