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California Is Now The World's Fourth-Largest Economy
Overtaking Japan & Soon Germany
George Babis
April 27, 2025
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Hello World! The new week is here, and we're diving into the biggest updates shaping the economy, tech, and business:
America’s Growth Rebounds: Census data shows most U.S. states returned to population growth in 2024, reversing pandemic-era declines.
Vegas' $2 Billion Sphere Faces a Reality Check: The dazzling entertainment venue is drawing crowds — but bleeding cash at an alarming rate.
Google’s Secret Q1 Weapon: SpaceX: An $8 billion gain from its early investment in SpaceX gave Alphabet's earnings a major boost.
Wrinkles Win as Botox Sales Dip: Economic worries and tariff threats have slowed demand for non-essential cosmetic treatments.
California Becomes the World’s 4th-Largest Economy: Powered by tech, tourism, and agriculture, California moves past Japan — but new tariffs could pose risks.
Census Data: Fewer Shrinking States, More Growth in 2024
Most U.S. states returned to population growth in 2024, according to new Census data, with only three states shrinking compared to eight the year before. 👥👥📈 Major states like California, New York, and Illinois — which had been losing residents since before the pandemic — saw growth again, thanks largely to softer domestic outmigration and increased immigration, including refugees from places like Venezuela and Ukraine. Meanwhile, West Virginia, Mississippi, and Vermont continued to lose residents. Rising living costs still drive Americans to move, but immigration patterns have played a growing role, with newcomers increasingly choosing Sun Belt states and smaller cities.
Is Las Vegas' $2 Billion Sphere Destined to Flop?
The Las Vegas Sphere 🔮 — a giant, eye-catching entertainment venue covered in LED screens — has been a huge tourist attraction but a financial disaster. Despite hosting big names like U2 and the Eagles, the Sphere has racked up $1.18 billion in losses since 2022. Parent company Sphere Entertainment faces massive operating costs, underwhelming suite licensing, and falling ticket prices, with shows like "Postcard from Earth" dropping prices to attract more guests. CEO James Dolan insists they’re learning and refining operations, but the Sphere continues to bleed cash every quarter. Future plans include building smaller "mini-Spheres" and expanding to Abu Dhabi, though it's unclear if these will fare any better. Meanwhile, other parts of Dolan's empire, like MSG Networks, are also struggling under heavy debt and cord-cutting trends.
Google’s Secret Weapon in Q1? An $8 Billion Boost From SpaceX
Alphabet reported strong Q1 earnings, boosted significantly by an $8 billion unrealized gain from its private investment in SpaceX. 🚀💰 This accounted for nearly 25% of its total net income for the quarter. Google first invested in SpaceX in 2015 alongside Fidelity, securing a combined ~10% stake. SpaceX's valuation soared to $350 billion after a recent round of share purchases, greatly benefiting early investors like Alphabet. While Google Cloud and YouTube ad revenues also impressed, the SpaceX gain quietly played a major role in Alphabet’s earnings beat.
Wrinkles Win: Botox and Juvederm Sales Slip Amid Economic Worries
AbbVie reported weaker-than-expected sales for Botox and Juvederm in the first quarter, with Botox hitting its lowest sales point since early 2021. 💉 📉 As consumer sentiment declines and recession fears rise, non-essential cosmetic treatments are taking a hit. AbbVie adjusted its full-year aesthetic sales forecast lower and warned tariffs on Irish-manufactured products like Botox could further impact sales by $30 million.
California Rises to #4 Economy Globally, Fueled by Tech and Tourism
California has officially surpassed Japan to become the world's fourth-largest economy, with a nominal GDP of $4.1 trillion in 2024, thanks to strong growth in tech, manufacturing, tourism, and agriculture.🧑💻 📈 The state's 6% growth outpaced the US, China, and Germany, while Japan’s economy stagnated. However, looming tariffs from President Trump’s administration pose a threat to California’s trade-heavy economy, prompting Governor Newsom to challenge the new tariffs in court.