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It’s Tuesday.

Recently, Fed Chair Jerome Powell participated in a 60 minutes interview. Here were the main points:

• He stated inflation has decreased significantly over the past year but emphasized the job isn't done.

• The Fed is cautiously approaching interest rate cuts, seeking more evidence of sustainable inflation decrease towards their 2% target.

• Powell sees at least three expected cuts this year.

The market is currently pricing in six rate cuts, creating a divergence between market predictions and the Fed’s cautious approach and stance. Only time will tell how this unfolds.

Some key data bites you should know: 

• Meta $META notched the biggest single-day market cap gain, with its stock adding $197B in market cap on Friday.

• Joe Rogan has signed a new multiyear deal with Spotify $SPOT estimated to be worth $250M.

• Several banks are in discussions to finance a $13B leveraged buyout of DocuSign $DOCU.

• Goldman Sachs $GS raised their price target on Nvidia $NVDA from $625 to $800.

• Snapchat $SNAP is planning to cut 500 jobs, or 10% of its workforce.

In today’s newsletter:

• 📡 Big Tech Revenue Growth Overview

• 🏎️ Ferrari’s Fast Track

• 🛒 Walmart’s Latest Markdown

Let’s dive right in!

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📡 Big Tech Revenue Growth Overview

At this point, most major tech companies have released earnings for the most recent quarter.

I've covered most of these companies in past newsletter editions individually, but now it's time to look at them collectively, focusing on their year-over-year revenue growth.

Leading the pack is Meta, with an impressive 25% growth, fueled by a strong advertising market.

Following closely are Microsoft, Amazon, Google, and Netflix, all registering solid double-digit growth.

However, not all companies saw this same strength in the past year.

Tesla experienced modest growth, affected by lower average selling prices for its vehicles.

And at the very end is Apple, which, after four quarters of declining revenue, managed a slight increase of 2.1%.

Despite seeing a small increase, growth remained muted due to falling sales in China.

🏎️ Ferrari’s Fast Track

While all eyes have been focused on tech, another name recently had a remarkable quarter.

Last Thursday, Ferrari released its Q4 2023 earnings report that outpaced analyst estimates for both revenue and net income.

Revenue soared by 17% to $6.5B, and net income surged by 34% to $1.4B, setting new records.

The company also saw a 3% increase in shipments, delivering 13,663 vehicles in 2023.

Ferrari didn't just stop there.

It also provided optimistic guidance, aiming for the higher end of its 2026 targets.

The company's stock reached new heights after the announcement that F1 superstar Lewis Hamilton will be leaving Mercedes for Ferrari in the 2025 season, adding an extra layer of excitement around the brand.

🛒 Walmart’s Latest Markdown

Walmart recently announced that they would be conducting a 3:1 stock split, in an effort to make the shares more accessible to employees.

More than 400,000 associates currently participate in Walmart’s Associate Stock Purchase Plan.

What does this mean for employees and investors? Well, not much.

A stock split divides a company's existing shares into multiple ones, lowering the price per share without changing the company's market value.

Despite more shares being available at a cheaper price, there's no impact on the underlying value of the stock, including earnings and market cap.

Essentially, it's a cosmetic change intended to make shares more affordable to investors, potentially increasing liquidity.

📚 Recommended Reading

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Notable Companies Reporting Earnings This Week:

• Monday (2/5):

  • McDonald’s $MCD, Caterpillar $CAT, Vertex Pharmaceuticals $VRTX, Simon Property Group $SPG, Palantir $PLTR

• Tuesday (2/6):

  • Eli Lilly $LLY, KKR $KKR, Chipotle $CMG, Ford $F, Spotify $SPOT, Snap $SNAP

• Wednesday (2/7):

  • Alibaba $BABA, Walt Disney $DIS, Uber $UBER, CVS $CVS, Arm $ARM, PayPal $PYPL

• Thursday (2/8):

  • S&P Global $SPGI, Philip Morris $PM, Take-Two Interactive $TTWO, Cloudflare $NET, Pinterest $PINS

• Friday (2/9):

  • Pepsico $PEP

All of the companies that are reporting earnings this week can be viewed here.

Buys:

• Debbie Wasserman Schultz (D)

  • Company: Mag Silver Corp ($MAG)

    • Amount Purchased: $1K - $15K

• Tom Carper (D)

  • Company: Starbucks ($SBUX)

    • Amount Purchased: $1K - $15K

  • Company: CME Group ($CME)

    • Amount Purchased: $1K - $15K

  • Company: Dell Technologies ($DELL)

    • Amount Purchased: $1K - $15K

Sells:

• Mark Green (R)

  • Company: NGL Energy Partners ($NGL)

    • Amount Sold: $100K - $250K

• Anna Paulina Luna (R)

  • Company: Lineage Cell Therapeutics ($LCTX)

    • Amount Sold: $1K - $15K

• Tom Carper (D)

  • Company: SentinelOne ($S)

    • Amount Sold: $1K - $15K

  • Company: Abbott Laboratories ($ABT)

    • Amount Sold: $1K - $15K

  • Company: Broadcom ($AVGO)

    • Amount Sold: $1K - $15K

🤝 Review of the Week