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- 👜 Louis Vuitton's Luxury Growth
👜 Louis Vuitton's Luxury Growth
1) Louis Vuitton Remains Resilient, 2) SoFi Is Now Profitable, 3) PayPal Fails To Shock The World, and more!
It’s Tuesday.
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Some key data bites you should know:
Microsoft $MSFT is planning to cut 1,900 jobs, or roughly 8% of its video game divisions.
The U.S. economy grew 3.3% in the last quarter, demonstrating its continued resilience despite high interest rates.
The PCE index, the Fed’s preferred measure of inflation, increased by 2.6% annually, closely aligning with the Fed’s long term target.
Canva is nearing a $1.5B share sale, valuing the company at $26B.
Research from JPMorgan $JPM found that if you invest in the S&P 500 at all time highs, one year later your investment would be higher 73% of the time.
In today’s newsletter:
👜 Louis Vuitton Remains Resilient
💰 SoFi Is Now Profitable
💸 PayPal Fails To Shock The World
Let’s dive right in!
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👜 Louis Vuitton Remains Resilient
When it comes to luxury goods, the first name you probably think of is Louis Vuitton.
Last Thursday, their parent company, LVMH Group presented their fiscal results for 2023, demonstrating their continued strength in the luxury goods segment.
In 2023, LVMH achieved €86.2B in revenue, a 13% organic growth, with strong gains in all sectors except Wines & Spirits.
Overall financial health remained solid, reflected by a steady operating margin.
Notably, both the profit from recurring operations and net profit saw an 8% climb, reaching €22.8B and €15.2B respectively.
Despite economic challenges, CEO Bernard Arnault praised LVMH's diverse, innovative strategies and their positive impact, and anticipates a promising 2024, including a partnership with the Paris Olympics.
💰 SoFi Is Now Profitable
Yesterday morning, SoFi reported it’s first-ever quarterly profit, sending shares up 20%.
The company reported a record $594M in adjusted net revenue and $181M in adjusted EBITDA, with the latter representing a 159% YoY growth.
SoFi’s total membership continued to expand, growing 44% YoY to over 7.5M total members.
Product offerings also saw a robust increase, with 41% YoY growth, totaling over 11M.
Financially, SoFi reported a positive GAAP net income of $48M and an expanded net interest margin of 6.02%.
Looking ahead to the next quarter, the company is projecting 20% growth for its adjusted net revenue and a 20% adjusted EBITDA margin on the low end of its guidance.
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💸 PayPal Fails To Shock The World
Once a pandemic darling, PayPal has struggled in recent years, dropping by nearly 80% from it’s all time high.
In a recent interview with CNBC, CEO Alex Chriss, asserted that PayPal would embrace the underdog position and “shock the world.”
However, the company’s innovation presentation on January 25th wasn’t met with much excitement by investors.
PayPal announced a new checkout experience, Fastlane for swift guest checkouts, and Smart Receipts offering AI-personalized merchant recommendations.
They're also launching an Advanced Offers Platform for tailored, real-time consumer offers and a revamped PayPal app featuring CashPass for personalized cashback deals from top brands.
Following the presentation, PayPal’s stock dropped nearly 6% and has since returned to levels seen prior to the event over the last few days.
🤝 AI Research Partnership. The NSF is partnering with major tech firms like Nvidia $NVDA and federal agencies to enhance U.S. AI research and innovation - YF
🍎 Apple Car Delay. Apple $AAPL has pushed back the release date of its electric vehicle to 2028 - F
💾 Intel Plummets. Intel $INTC shares fell after its Q1 2024 outlook missed forecasts - CNBC
Notable Companies Reporting Earnings This Week:
Monday (1/29):
Nucor $NUE, Super Micro Computer $SMCI
Tuesday (1/30):
Microsoft $MSFT, Alphabet $GOOG, AMD $AMD, Pfizer $PFE, UPS $UPS, Starbucks $SBUX
Wednesday (1/31):
Novo Nordisk $NVO, Mastercard $MA, Novartis $NVS, Thermo Fisher $TMO, Qualcomm $QCOM, Boeing $BA
Thursday (2/1):
Apple $AAPL, Amazon $AMZN, Meta $META, Merck & Company $MRK, Altria $MO, Ferrari $RACE
Friday (2/2):
Exxon Mobil $XOM, AbbVie $ABBV, Chevron $CVX, Regeneron Pharmaceuticals $REGN
All of the companies that are reporting earnings this week can be viewed here.
Major Trades Published Since 1/23. Trades may be those of family members. Buys and sells may be options trades. [Source: 2iQ]
Buys:
Blake Moore (R)
Company: SPDR S&P 500 ETF Trust ($SPY)
Amount Purchased: $130K - $350K
Company: Vanguard Growth ETF ($VUG)
Amount Purchased: $102K - $280K
Markwayne Mullin (R)
Company: Apple ($AAPL)
Amount Purchased: $50K - $100K
Company: Nvidia ($NVDA)
Amount Purchased: $15K - $50K
Company: AMD ($AMD)
Amount Purchased: $15K - $50K
Company: Meta Platforms ($META)
Amount Purchased: $15K - $50K
Michael Burgess (R)
Company: Illumina ($ILMN)
Amount Purchased: $16K - $65K
Company: Exxon Mobil ($XOM)
Amount Purchased: $15K - $50K
Sells:
Michael Burgess (R)
Company: Blackstone Group ($BX)
Amount Sold: $15K - $50K
Company: Palo Alto Networks ($PANW)
Amount Sold: $15K - $50K
Blake Moore (R)
Company: Amazon ($AMZN)
Amount Sold: $17K - $80K
Company: Apple ($AAPL)
Amount Sold: $17K - $80K
Company: Berkshire Hathaway ($BRK.B)
Amount Sold: $17K - $80K
Company: Meta Platforms ($META)
Amount Sold: $17K - $80K
Company: Microsoft ($MSFT)
Amount Sold: $17K - $80K
Company: Alphabet ($GOOGL)
Amount Sold: $16K - $65K
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🤝 Review of the Week
Disclosure: I hold long positions in Louis Vuitton Moet Hennessy ($LVMUY) and PayPal ($PYPL).
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