Meta shares soar almost 20% on fourth-quarter revenue beat (3 min read)
Meta's stock saw a surge of nearly 20% after reporting Q4 earnings that beat expectations and announcing a big $40 billion stock buyback plan. The company is forecasting revenue in the first quarter to be between $26 billion and $28.5 billion and total expenses for the year to come in at $89-$95 billion, which is better than the prior outlook. Mark Zuckerberg, CEO of Meta, said the company is focusing on being efficient and streamlining costs in 2023.
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FedEx is laying off 10% of its officers and directors amid cooling demand (2 min read)
FedEx is cutting over 10% of its officers and directors as the company tries to cut costs amid slowing consumer demand. The layoffs come after a surge in the shipping industry due to e-commerce during the pandemic. FedEx's stock is down 20% in the past year, and the company has been seeking to cut costs and raise prices to offset slowing volume. The company raised shipping rates by 6.9% in January and is aiming to cut $3.7 billion in costs this year.
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Federal Reserve raises interest rates by another 0.25% (3 min read)
The Fed raised short-term interest rates by 0.25% to 4.5-4.75%, its highest level since 2007, as it assesses the impact of its previous rate hikes on consumer prices. The Fed acknowledged the slowdown in inflation, with Chair Jerome Powell saying the "disinflationary process has started". The Fed said ongoing rate hikes will be appropriate to achieve a restrictive monetary policy, and its future rate hikes will depend on the impact on the economy and financial markets.
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Big Short’s Michael Burry Says ‘Sell’ in Ominous Tweet Ahead of Fed Meeting (2 min read)
Michael Burry, founder of Scion Asset Management, has tweeted “sell”, causing anxiety ahead of the Federal Reserve's rate decision. The S&P 500 and Nasdaq 100 ended January with gains, leaving some worried about the Fed's decision. US stocks ended up closing higher for the second day after the Fed announced 0.25% rate hike. Burry, who predicted the 2008 housing crash, is known for his cryptic warnings and has recently predicted inflation and a US recession.
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35% of Cathie Wood's Flagship ETF Is Invested in Just 5 Stocks (5 min read)
The Ark Innovation ETF (ARKK) is focused on disruptive innovation and managed by Cathie Wood. The fund is up 25% in 2023 and 35% of the portfolio is invested in five tech and crypto growth stocks: Tesla, Zoom Video Communications, Roku, Block (formerly Square), and Coinbase Global. Wood is a known investor in Tesla and has recently made a bold prediction that Tesla's stock could increase by 500% over the next five years. Wood also holds a significant stake in Coinbase Global, betting on Bitcoin to reach more than $1 million by 2030.
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Top 5 ETF Myths Explained (3 min read)
ETFs are widely misunderstood, with many thinking that all ETFs are passively managed with low fees. The truth is, there are actively managed ETFs, not all have low expense ratios, and some track niche markets, not just broad indexes. ETFs trade like stocks, but can offer the same level of diversification as mutual funds. ETFs are suitable for all types of investors, from beginner to advanced. More details on each myth is available in the article.
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That's it for today! You can reply to this email if you have any comments or feedback.
Thanks,
Thomas
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