Rippers Weekly Recap 1/21: Google, Microsoft, and Amazon Layoffs

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How The Stock Market Performed This Past Week

Heat Map of the S&P 500

How The Largest Stocks Performed

Best Performing Large Cap Stocks

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EARNINGS SEASON IS BACK!!! Major Earnings

Goldman Sachs reported earnings Tuesday before the market opened, posting numbers of:

• EPS of $3.32, missing expectations of $5.77

• Revenue of $10.59B, missing expectations of $10.91B

Morgan Stanley reported earnings Tuesday before the market opened, posting numbers of:

• EPS of $1.31, beating expectations of $1.29

• Revenue of $12.70B, beating expectations of $12.60B

United Airlines reported earnings Tuesday after the market closed, posting numbers of:

• EPS of $2.46, beating expectations of $2.12

• Revenue of $12.40B, beating expectations of $12.23B

United sees its 2023 adjusted EPS coming in between $10-$12 above estimates of $6.54.

Procter & Gamble reported earnings Thursday before the market opened, posting numbers of:

• EPS of $1.59, in line with expectations

• Revenue of $20.8B, missing expectations of $20.3B

A 10% increase in prices from the prior year offset a 6% volume decline.

Netflix reported earnings Thursday after the market closed, posting numbers of:

• EPS of $0.12, missing expectations of $0.42

• Revenue of $7.85B, in line with expectations

Netflix added 7.66M subscribers globally last quarter, above expectations of 4.5M.

Netflix CEO Reed Hastings stepped down as Co-CEO and into his new role as board chairman, making Ted Sarandos and Greg Peters co-CEOs of Netflix.

Schlumberger reported earnings Friday before the market opened, posting numbers of:

• EPS of $0.71, beating expectations of $0.68

• Revenue of $7.9B, beating expectations of $7.79B

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Major Headlines From This Week

Monday:

• Microsoft said it will add AI bot ChatGPT to its cloud-based Azure service “soon,” while also announcing the broad availability of its Azure OpenAI service - Bloomberg

• Fully Electric Vehicles made up almost 10% of all new cars sold globally in 2022 - WSJ

• Ryan Cohen has taken a stake in Alibaba and wants the company to buyback more stock - WSJ

• China’s population decreased in 2022 for first time in 60 years - EuroNews

• Volkswagen said it sees the China car market accelerating after a tough Q1 - Bloomberg

• Harley Davidson’s CEO said the brand ‘will be all-electric’ in the future - Electrek

• Apple is reportedly preparing to place a bid for the domestic TV rights to England's Premier League - Daily Mail

• Ford is poised to cut its dependence on Volkswagen’s technology for its next generation of electric cars in Europe - FT

Tuesday:

• Party City filed for Chapter 11 bankruptcy - CNBC

• Apple is working on a cheaper mixed reality headset to reach more consumers - MacRumors

• Roblox had 61.5M daily active users in December up 18% YoY and total hours engaged of 4.7B up 21% YoY - SMN

• Apple released its first products of 2023, unveiling 2 new in-house chips the M2 Pro and M2 Max, along with a new MacBook Pro and Mac Mini with those chips - Apple

• Morgan Stanley CEO said they're “overdue” for a workforce rightsizing - Bloomberg

• The University of Texas banned the use of TikTok on its systems, prohibiting devices using the app on the university wired or WiFi networks - Bloomberg

• Tesla, BYD, and Hyundai are all reportedly finalizing deals to invest in Indonesia’s EV industry according to a senior minister - Bloomberg

• Microsoft CEO Satya Nadella said the company plans to incorporate AI tools like ChatGPT into all of its products and make them available as platforms for other businesses to build on - WSJ

• Unity laid off more than 200 employees - WSJ

• Carvana adopted a poison pill to protect itself against a hostile takeover - CNBC

• XPeng cut the price of its EVs in China by as much as 12.5% - Electrek

• Boston Dynamics released a video showing off their robot - Tweet

Wednesday:

• Microsoft confirmed it plans to fire ~10,000 employees across multiple parts of the company including HR, video games, and engineering through the end of Q3 2023 - CNBC

• Amazon began a round of layoffs, mostly affecting the retail and human resources divisions as part of the 18,000 layoffs announced earlier this month - The Verge

• Amazon notified 2,300 employees in Seattle that they’ve been let go - ST

• Google's Cloud gaming platform Stadia officially shut down its servers - Tech Crunch

• US PPI for December just came in at -0.5% MoM below expectations of -0.1% MoM - BLS

• Carnival and SpaceX announced a new partnership for SpaceX's Starlink to provide satellite internet on Carnival's cruise ships - Newswire

• Twitter auctioned off items from its headquarters, including a bird statue - NPR

• Apple is looking to expand its smart home lineup to take on Amazon and Google - Bloomberg

• Michigan cannabis sales reached a new record high in December - Marijuana Moment

• Teladoc announced plans to lay off 6% of its workforce - SEC

• A fugitive charged with securities fraud over a New Jersey deli once valued at more than $100M was arrested in Thailand today at the request of US authorities - CNBC

• Bed Bath & Beyond is looking for a capital infusion or a buyer ahead of a likely upcoming bankruptcy filing - CNBC

• Donald Trump is preparing to return to Twitter and Facebook - CNBC

• Twitter’s Q4 revenue reportedly dropped by 35% YoY to $1.025B - The Information

Thursday:

• The US hit its debt limit - Tweet, Politico

• Costco reauthorized a share buyback program worth up to $4B - Costco

• US mortgage rates dropped to 6.15% from 6.33% the week prior the lowest level since September - Bloomberg

• Nordstrom announced its weak net sales for the 9-week holiday period - Yahoo

• Wayfair is preparing to lay off more than 1,000 workers - WSJ

• Initial claims for state unemployment benefits dropped 15,000 to a seasonally adjusted 190,000 for the week ended Jan. 14 below forecasts of 214,000 claims - CNBC

• Meta said 'financial literacy is a priority skill for Gen Z' - Bloomberg

• New FTX CEO John J. Ray III said he’s looking into the possibility of reviving the bankrupt crypto exchange - CoinDesk

• Nintendo plans to boost production of the Switch to meet demand - The Verge

• Google is partially deferring employee bonus payouts - CNBC

• Uber is working with auto makers to design customized EVs for ride-sharing and delivery - WSJ

• WeWork plans to eliminate about 300 roles across its company - Reuters

• Netflix’s new Co-CEO Greg Peters is on target to make $34.6M in total compensation in 2023, while outgoing CEO and current board chair Reed Hastings will make $3M in 2023 - SMN

• JPMorgan’s board keeps CEO Jamie Dimon's 2022 pay unchanged from 2021 at $34.5M - WSJ

• Meta sees promise in generative AI and believes it has interesting applications for social media including for Instagram filters - Reuters

• Jack Ma meet with prominent financial figures in Hong Kong - Bloomberg

• Crypto lender Genesis filed for bankruptcy - Yahoo

• JPMorgan CEO Jamie Dimon said he thinks work from home "doesn’t work for young kids or spontaneity or management" - Bloomberg

Friday:

• Google announced plans to lay off about 12,000 jobs or 6% of its global workforce - CNBC

• Google cut the majority of jobs at its in-house incubator “Area 120” as a part of its cuts layoffs - Tech Crunch

• Feds seize almost $700 million of Sam Bankman-Fried’s assets in cash and equity - CNBC

• The Fed is investigating Goldman Sachs’ Consumer business over concerns it didn’t have proper monitoring and control systems - WSJ

• Twitter currently has ~2,300 full-time employees down from 7,500 in November according to Elon Musk - Tweet

• Janet Yellen said failing to address the debt limit could cause recession - CNN

• Morgan Stanley CEO James Gorman received total compensation worth $31.5M in 2022 down from $35M in 2021 - Reuters

• General Motors plans to invest nearly $1B in 4 US plants to help produce components for its next generation of V-8 engines and EVs - CNBC

• Amazon's drone delivery division was reportedly hit hard by layoffs - Engadget

• Amazon’s AWS plans to invest $35B in virginia by 2040 to make new data centers - AP

• The Hedge Fund industry lost about $125B worth of assets in 2022 - Reuters

• Deutsche Bank is cutting its investment banker bonus pool by 40% - SeekingAlpha

Fed Speakers From The Week

It wouldn't be a week in the stock market without 50 Fed presidents giving their thoughts ... here's some of the quotes from the week that stood out to me:

• Williams: End of China lockdowns could tick global inflation higher (SMN)

• George: Need to see job openings come down (Morning Star)

• Harker: Repeats backing for 25 basis point rate hikes going forward (Reuters)

• Brainard: Data may be aligning for 'soft landing' scenario (Reuters)

• Mester: Policy rate should rise a “little bit” above the 5% to 5.25% range that policymakers have collectively projected for the end of 2023 (Washington Post)

• Bullard: Suggests a 50 basis point rate increase at next meeting is appropriate (Market Watch)

• Waller: Market's perception of terminal rate is not far from where we are (Council on Foreign Relations)

Get Prepared For Next Week

Economic Calendar

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