The Daily REITBeat | Monday, January 27th, 2025

"Deepseek?!?"

Good Morning!

Futures deep in the red at the time of this writing as talking heads focus on China’s “DeepSeek” and the fact that a cheaper AI model will impact some of the USA’s biggest players including Nvidia.

From Bloomberg

"Stocks slumped, with Nasdaq futures briefly losing more than 5%, on concern that a cheaper artificial intelligence model from China threatens the dominance of US technology.
Nvidia Corp. plunged 12% in US premarket trading, setting it up for the biggest drop on record in terms of market capitalization if the move holds. The volume of Nasdaq 100 futures contracts changing hands was about four times the 30-day average, according to data compiled by Bloomberg. S&P 500 futures sank as much as 3% and Bitcoin slid below $100,000.
The buzz over DeepSeek emerged over the weekend, with tech analysts saying the company’s AI model provides comparable performance to the world’s best chatbots at a fraction of the price. For investors, it put a question mark over an AI-driven rally that’s added $15 trillion to the Nasdaq 100 since 2022 and been at the heart of US equity gains.
“It does put a lot of scrutiny at the level of valuations,” said Benedicte Lowe, equity derivatives strategist at BNP Paribas Markets 360. “We are quite positive on US tech stock sector. But it puts pressure on the outlook and is a turning point for the companies at this stage in the cycle.”"

In REIT News

JMP initiates AMT ($225), CCI ($115), EQIX ($1200) and SBAC ($250) with Market Outperform ratings
JMP reinstates DLR with a Market Outperform rating ($220 price target)
BofA upgrades APLE to Buy from Neutral (raise price target by $1 to $17)
On Friday, Morningstar downgraded PLD to Hold from Buy (maintain $125 price target)
On Friday, MAC announced the appointment of Devin Murphy to its Board of Directors effective February 1, 2025 and with the addition of Mr. Murphy, the Board will now have nine directors of whom eight are independent

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David Auerbach
dauerbach@irrealized.com
214.492.3777

David Auerbach boasts over two decades of experience in the securities industry, specializing as an institutional trader with a focus on Real Estate Investment Trusts (REITs), Equity and Preferred stocks, MLPs, ETFs, and Closed End Funds.

Based in Dallas, TX throughout his entire career, David currently serves as the Chief Investment Officer for Hoya Capital, managing the Hoya Housing 100 ETF (Ticker: HOMZ) and The High Yield Dividend ETF (Ticker: RIET).

Previously, David held the position of Managing Director at Armada ETF Advisors, the sub-advisor for the Residential REIT ETF (Ticker: HAUS) and The Private Real Estate Strategy via Liquid REITs ETF (Ticker: PRVT). Additionally, he acts as a consultant with IRRealized, LLC, focusing on corporate access in the REIT industry.

David's industry journey includes roles at World Equity Group, Esposito Securities, and Green Street Advisors where he got his start in the REIT industry. At Esposito Securities, he played a crucial role in building the REIT/Real Estate platform and worked extensively with institutional investors, Equity REITs, and ETF issuers.

Throughout his career, David has been quoted by reputable publications such as Bloomberg, WSJ, Financial Times, REIT.com, and GlobeSt.com. He has also made notable appearances as a featured guest on networks like Yahoo Finance, TD Ameritrade, and Bloomberg.

David holds a BBA in Finance from the University of Texas at Austin (May 1999) and an MBA in Finance from Southern Methodist University (May 2005). He maintains FINRA Series 7, 24, 55, and 63 registrations.

In his leisure time, David is an avid traveler, often found crisscrossing the country in pursuit of attending as many Phish concerts as possible.

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