Benzinga - Good Morning Everyone!
Especially Mark Zuckerberg who stopped hanging out in the metaverse. Cut costs and returned to cash flow positive. Stock up 20% pre-market set to gain $200 billion.
Next catalyst, AI?
Prices as of 4 pm EST, 2/1/23; % YTD
MARKET UPDATE
The U.S. Federal Reserve delivered an expected 25 basis point hike- Signals a “couple” more hikes before a pause
ECB
- Delivers 50 basis point hike
- Signals more hikes ahead
Bank of England
- Raised by 50 basis points to 4%
- 10th consecutive increase
- Like the Fed, close to a pause
Crude 76 -0.5%
Meta (NASDAQ: META) +19%
- Q4 revenue 32.2 billion at high end of guide $30-32.5
- Ad revenues up 2% y/y
- Q1 revenue guide $26-$28.5 Billion vs $27B consensus
- 2023 operating expenses comes down to $89-95B from $94-100B
- After repurchasing $7 billion of stock in Q4, buyback increased by $40 billion
- How big is $40 billion. It’s 10% of the market cap.
- Don’t bet against Zuck
- Solid revenue, Solid guide, larger than expected capex cut, big share buyback
- Chart: Average Revenue per user (ARPU)
- People are using Meta products. Ad impressions up 23% y/y. Reels is having an impact.
Auto
- U.S. January SAAR 16.2 million units vs. street 15.3
- Incentives down 22.9% at $1,400 per car
- Days supply is 37 vs. 33 last month
Earnings
- MetLife (NYSE: MET) flat EPS $1.55 vs street $1.65
- McKesson (NYSE: MCK) -2% raised 2023 EPS guide
- Alfac (NYSE: AFL) flat EPS $1.29 vs street $1.21
- Corteva (NYSE: CTVA) -2% guide lower than street
- Allstate (NYSE: ALL) flat Auto loss ratio worse than street
- Align (NASDAQ: ALGN) +17% revenues down but better than street, $1 cash reserves
- Eli Lilly (NYSE: LLY) -2% top line miss, bottom line beat
- Merck (NYSE: MRK) -1% EPS $6.90 beat street $6.35, raised guide
- Shell (NYSE: SHEL) +2% record profits of $42.3 billion, increased dividend and share buyback
- Bristol-Myers (NYSE: BMY) +1% Q4 revenues +2%, earnings +5%, 2% increase to guide
- ConocoPhillips (NYSE: COP) -1% 4% cash flow beat, capex modestly higher
- Honeywell (NASDAQ: HON) -3% EPS in line, guide light
- Sony (NYSE: SONY) +2% in-line, boosts guide
- Estee Lauder (NYSE: EL) -3% guide is light
- Ferrari (NYSE: RACE) +5% revenue and EBITDA beat
Tonight
- Apple (NASDAQ: AAPL)
- Google (NASDAQ: GOOGL)
- Amazon (NASDAQ: AMZN)
- Starbucks (NASDAQ: SBUX)
CRYPTO UPDATE 99-year old Charlie Munger on crypto
- “Instead, it’s a gambling contract with a nearly 100% edge for the house, entered into in a country where gambling contracts are traditionally regulated only by states that compete in laxity”
- “The U.S. should now enact a new federal law that prevents this from happening”
Alameda Research
- Alameda wallet received over $10 million in crypto overnight
- $6 million in tether from Bitfinex
- $4.5 million in USDC from unknown entity
- Reasons unclear
Risk appetite
- More than half of altcoins outperforming Bitcoin (CRYPTO: BTC) over last 30 days
- Suggest higher risk appetite
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