Costco's shares fell about 2% after the retailer chose not to announce a special dividend, disappointing investors expecting a year-end payout, despite strong quarterly results and positive guidance. The company maintains a solid financial position with significant cash reserves and continues regular dividends, but the absence of a special payout has impacted investor sentiment, especially given the high valuation multiple.
Microsoft's recent earnings reveal that OpenAI suffered an $11.5 billion net loss in the quarter, which Microsoft accounts for as a 27% stake owner through equity accounting, highlighting the massive scale of OpenAI's financial challenges despite its significant revenue and Microsoft's overall strong earnings.
Financial institutions like JPMorgan Chase, Goldman Sachs, Wells Fargo, BlackRock, and Citigroup reported earnings that exceeded expectations, highlighting a focus on financials and bullish stock charts during earnings season.
Liz Young of SoFi predicts that a Federal Reserve rate cut will further boost small-cap stocks, financials, and real estate, as borrowing costs decrease and market sentiment remains positive, potentially leading to continued market rallies in these sectors.
Microsoft's CFO Amy Hood emphasized the need for 'intensity' in the upcoming fiscal year following a $27 billion quarterly profit, highlighting continued growth in Azure and reaffirming priorities like security, quality, and AI transformation, amid ongoing workforce reductions.
The upcoming week features key earnings reports from major financial institutions and megacap companies, alongside important economic indicators like the consumer price index and retail sales, as investors assess the sustainability of the recent rally amid mixed economic signals.
Figma is nearing an IPO, with potential to raise up to $1.5 billion, driven by impressive revenue growth and profitability, despite competitive risks from AI-driven design tools. The company disclosed strong financial health in its S-1 filing, with major backers and significant insider share control, positioning it as a promising tech stock.
The Vanguard Financials Index Fund ETF has emerged as the best-performing Vanguard ETF in 2024, with a 33.6% increase year-to-date, outperforming tech-focused indices. This success is attributed to favorable economic conditions, including high interest rates and stable growth, which benefit financial stocks. The ETF's major holdings include top banks and Berkshire Hathaway. Despite its strong performance, financial stocks remain relatively cheap compared to the broader market, suggesting potential for continued growth in 2025, contingent on economic health and policy developments.
Disney's latest earnings report indicates a positive outlook for the company's future, highlighting strong financial performance and growth prospects in the entertainment industry.
Markets surged on Monday, driven by a "Trump-related rally" that saw small caps, financials, and cryptocurrencies, including Bitcoin surpassing $85,000, leading gains. The Russell 2000 Index outperformed, and financial stocks, particularly regional banks, saw strong gains. Major crypto stocks like Coinbase rallied significantly. Tesla continued its upward trend, while the broader tech sector lagged due to new AI export restrictions to China. The U.S. dollar strengthened, Treasury yields remained steady, and commodities mostly fell, except for a rise in natural gas prices.
Tesla has slashed the price of its Full Self Driving (Supervised) subscription to $99 per month, down from $199, in an effort to make its electric vehicles more appealing following a challenging financial quarter. The company's EV shipments fell year-over-year and dropped significantly compared to the previous quarter. Tesla also raised the prices of all Model Y vehicles by $1,000 and is now requiring salespeople in North America to demonstrate the Full Self Driving (Supervised) feature to potential buyers.
Intel stock dropped after the chipmaker revealed disappointing financials for its foundry business, with the unit reporting a $7 billion operating loss for 2023 and a 31% revenue decline. Despite plans to become a major contract chipmaker, analysts expressed skepticism over the unit's prospects, with doubts about Intel's financial targets and the timing of its goals. While Intel is separating its two main businesses internally, it is unlikely to split into two companies in the near future. The company is also receiving significant government funding to bolster semiconductor manufacturing in the U.S.
Donald Trump's niece, Mary Trump, predicts that Truth Social is "destined for failure" due to its financial losses, technical glitches, and lack of user growth. The social media platform generated just over $4.1 million in revenue but incurred $58.2 million in costs, resulting in significant operating losses. Experts and financial market analysts echo her concerns, pointing out the company's lack of transparency regarding user engagement numbers and its questionable value.
Trump Media & Technology Group, the parent company of Truth Social, saw its stock plummet over 22% following an updated regulatory filing revealing heavy losses and "greater risks" associated with Donald Trump's ties to the platform. The filing disclosed sales of just over $4 million and net losses of nearly $60 million for the full-year ending Dec. 31, with expectations of continued losses. The success of Truth Social largely hinges on the "reputation and popularity" of Trump, and stakeholders are subject to a six-month lockup period before selling or transferring shares, potentially impacting Trump's financial situation amidst legal and fundraising challenges.
Wrexham, the Welsh soccer team owned by Ryan Reynolds and Rob McElhenney, has reported owing its celebrity owners over $11 million, with increased losses despite rising turnover. The club, now in the English Football League, is aiming for back-to-back promotions and is third in League Two. Wrexham stated that the financial losses were necessary for maximizing the club's potential and that further financial support will be secured for capital expenditure projects, including stadium expansion. The club anticipates continued growth in turnover due to factors such as the popularity of the documentary "Welcome to Wrexham" and increased earnings in the EFL.
