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- TiiCKER | May 8th, 2024
TiiCKER | May 8th, 2024
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Today's insights are courtesy of TiiCKER. Discover & unlock shareholder rewards that are hiding in your investment portfolio.
GOOD MORNING
| Index/Asset | Day | Month | Year |
|---|---|---|---|
| Dow | ▲0.08% | ▼0.16% | ▲15.24% |
| S&P | ▲0.13% | ▼0.59% | ▲25.23% |
| Nasdaq | ▼0.10% | ▲0.39% | ▲33.66% |
| Bitcoin | ▼1.35% | ▼8.97% | ▲127.86% |
| 10-Year | ▲0.26% | ▼0.40% | ▼6.59% |
Here's what you need to know today: As inflation continues to challenge the Fed, Minneapolis Fed President Neel Kashkari suggests the bank's current policies might underestimate the economic temperature, hinting at a possible steady rate of around 3%. This revelation shakes up expectations as the Fed debates the effectiveness of maintaining interest rates at 5.25% to 5.5%.
In the markets, Reddit's shares jump by 14% after a robust first-quarter revenue report, signaling strong investor confidence bolstered by significant user growth and a surge in digital ad sales. Meanwhile, Disney’s stock takes a dip even as its streaming business reports a profit for the first time; cautious future forecasts temper the initial excitement.
Let’s dive into more detail below.
ENTERTAINMENT
Disney's Streaming Earns $47M Profit, But Q2 Forecast Dims
Disney celebrates a brief victory with a $47 million streaming profit but faces investor skepticism as forecasts suggest potential losses ahead
BREAKING NEWS
Disney's stock hit after its Q2 2024 earnings were released, dropping to 5% in pre-market trading after revealing that although its streaming business finally turned a profit, the forecast for the upcoming quarter is less optimistic.
This initial profit marks a milestone for the entertainment giant, suggesting a potential turnaround in its streaming operations.
WHAT HAPPENED
In a detailed financial disclosure, Disney reported that its direct-to-consumer segment, encompassing Disney+ and Hulu, achieved an operating income of $47 million this quarter, a significant improvement over last year's $587 million loss. Despite this achievement, Disney predicts its streaming results will dip back into the red next quarter.
The fiscal second-quarter earnings also included a strong performance from its parks business and a notable increase in Disney+ subscribers, driven by a new deal offering free subscriptions to Charter cable users.
On the downside, ESPN suffered from declining affiliate revenues and increased production costs, dragging its operating income down by 9%. Additionally, Disney took a hefty $2 billion impairment charge due to merging its Star India business with Reliance Industries, impacting its overall financial health despite meeting revenue expectations with $22.1 billion this quarter…
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SOCIAL MEDIA
Reddit's Revenue Soars by 48% to $243M in Q1, Stock Jumps 14% After First Earnings Release
Despite a substantial net loss due to IPO expenses, Reddit's advertising revenue growth outpaces industry giants, setting a robust future outlook
BREAKING NEWS
Reddit's shares soared by 14% after announcing a significant revenue increase of 48%, reaching $243 million in the first quarter. This financial uplift showcases a strong investor endorsement as the social media giant transitions from its March IPO to a publicly listed entity. The company's stock surged after-hours trading, signaling robust market confidence bolstered by impressive user growth and a competitive edge in digital advertising.
WHAT HAPPENED
After going public in March, Reddit has met and exceeded market expectations with a first-quarter revenue spike driven by a formidable 39% increase in ad revenue year-over-year, totaling $222.7 million. Despite a net loss of $575.1 million, primarily due to IPO-related expenses, the company's forward-looking revenue projections for Q2 are set to top analysts' expectations at $240 million to $255 million. Daily active users have reached a new high of 82.7 million, surpassing expectations and highlighting the platform's expanding influence and appeal. This earnings snapshot reflects Reddit's robust entry into the stock market and underscores its potential trajectory in the competitive landscape of digital advertising.
ECONOMICS
Fed's Kashkari Signals Inflation May Settle Around 3%, Challenges Current Monetary Policy Effectiveness
As inflation stubbornly hovers above target, Kashkari hints at a reevaluation of the effectiveness of existing interest rate levels
BREAKING NEWS
Minneapolis Fed President Neel Kashkari's recent remarks shed new light on the U.S. Federal Reserve's inflation challenge, suggesting that the central bank's current policies may not be as effective as previously thought.
Kashkari speculates that inflation could stabilize around 3%, indicating that the Fed's policy settings might underestimate the economy's heat.
This insight comes amidst ongoing debates within the Fed regarding the effectiveness of the current interest rate regime, which has been maintained at a steady 5.25% to 5.5% since last July.
WHAT HAPPENED
Kashkari's comments highlight a significant concern among Federal Reserve officials: inflation has been persistently lodged above their 2% target, hovering around 2.7% in recent months. This stubbornly high rate has left policymakers questioning how much risk to accept regarding economic growth and job market impacts for potentially modest gains in inflation control.
Despite the rate stability, the broader economic signals—from a strong housing market to sustained consumer demand—suggest that the Federal Reserve's policy stance might not be tight enough, challenging the consensus on future monetary tightening and the overall approach to managing persistent inflation.
YESTERDAY | Here’s what you missed |
1. Dow Climbs Again
Dow rises by 31.99 points to 38,884.26, marking a five-day winning streak.
2. Disney Tumbles
Disney shares fall 9.5% despite beating earnings, affected by a revenue shortfall and loss projections in streaming.
3. Peloton Jumps 15.5%
Peloton surges on news that private equity may consider a buyout.
4. Palantir Drops 15%
Palantir's stock falls after issuing weak future earnings guidance.
5. Chinese Tech Retreats
JD.com and Alibaba drop 1.8% and nearly 3%, respectively, pulling down the KraneShares ETF by 2.5%.
6. Citi Bullish on Tech
Citigroup strategist remains optimistic about megacap tech stock earnings.
7. Chicken Boosts Restaurants
Wingstop’s same-store sales jump 22% driven by strong chicken demand.
8. Fed's Rate Outlook Stable
Minneapolis Fed's Kashkari suggests interest rates might stay put for now.
9. Ferrari's Rough Day
Ferrari stocks slide about 5% despite earnings beats, due to cautious outlook.
10. Druckenmiller Cautious on AI
Stanley Druckenmiller reduces Nvidia stake, pointing to potential short-term overhype in AI.
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Today's insights are courtesy of TiiCKER. Discover & unlock shareholder rewards that are hiding in your investment portfolio.
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