The Market Is Cautious
Jan 20th 2023, 11:28 am
- On concerns about future growth, all US markets ended in the red.
- A surge in investment in Chinese stocks.
- Going up for a second week, oil. This year, silver prices are expected to reach a nine-year high.
Netflix Had Mixed Success
- Reed Hastings, co-founder and co-CEO of $NFLX, has announced his resignation. In a reorganization at the top of one of the most influential studios in Hollywood, Reed Hastings is resigning as Netflix's chief executive officer, the company he co-founded 25 years ago.
- In that position, COO Greg Peters will work alongside existing co-CEO Ted Sarandos. Hastings is going to take over as executive chairman. The fourth quarter's financial performance was inconsistent, with subscriber growth exceeding forecasts but adjusted earnings falling short. On the news, shares of Netflix increased by 6% but then dropped.
- On pre-marker hours $NFLX is in green, up 5.49%
Source: Photo by DCL "650" on Unsplash
Inflation In Europe
- Following Christine Lagarde's statement that inflation in Europe is still too high and that the European Central Bank is committed to bringing it down to the desired level, the euro appreciated against the dollar.
- Following Thursday's losses, European markets are attempting to recover. At the 2020 Davos summit, IMF's Georgieva and ECB's Lagarde discuss their perspectives on global growth. The market participants' insights set the outlook for profitability and growth.
Investors seek out the tech bottom.
- Tech executives would do better to take a lesson from Satya Nadella, their Microsoft counterpart, as they get ready to discuss the future of their companies on earnings calls in the coming weeks.
- When announcing this week's plans to eliminate 10,000 positions, Nadella adopted the now-standard tone of cautious optimism. As a result, the massive increase in tech spending is over.
- $MSFT layoffs will cost the company $1.2 billion, or around $-0.12 per share, but Ives argues the decision was wise.
- PC sales are also declining as businesses hold off on purchasing new equipment during high inflation and loan rates, and consumers who bought new systems during the epidemic do not need new ones.
Source: Yahoo Finance
- Google surprised and confused some employees by deferring 20% of employee bonuses until March, to which they responded with memes. The January payment was referred to as an "advance" by the business.
- Due to poor trial results from individuals treated for one year, the FDA rejected Eli Lilly's Alzheimer's medication. To get US permission, a detailed response letter was given with requirements.
- Morgan Stanley downgraded $RBLX, and there isn't much hope for the future.
- As competitors cut workers, Swiss lender $UBS plans to recruit dissatisfied dealmakers from investment banking boutiques to improve its strengths in mergers and acquisitions.
- The cryptocurrency broker Genesis has filed for Chapter 11 bankruptcy, making it the most recent victim of the consequences of Sam Bankman-collapse Fried's of the digital asset exchange FTX last year. Bitcoin is up.