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Hey there weekday warrior,
Reddit just got downvoted.
Enjoy the next 4 minutes and 28 seconds of blue-chip news and commentary.
Keep on snapping necks and cashing checks,
r/AmIOverreacting
“You gotta pump those numbers up. Those are rookie numbers in this racket.” - Amazon, whose “side hustle” (ads) is approximately 40x larger than Reddit’s only business
(And before you hit me with ‘aMAZon Is DIffERenT’, keep in mind even Pinterest does nearly 3x the sales of Reddit).
Reddit (+1.2% // AH: -13.3%) reported after the close on Monday for just the second time ever. And it probably just wishes it had stayed private. Shares got downvoted more than 13% after hours… despite having the kinda quarter Snap could only wet dream about.
Explain Like I’m 5…
The message board founded by the dude Serena Williams just cucked in front of 127.7M people, beat easily on the top ($428M) and bottom (36 cents per share) lines. That’s revenue growth of 71% for a company that can buy tobacco products and die for its country (read: 19 years old).
So, why did investors freak out more than Redditors that time the company changed its API policy? Because the homepage of the internet missed the Street’s daily active users #s ever so slightly (101.7M vs. 103.1M expected).
During his AMA with analysts, CEO Steve Huffman blamed Google: “What happened wasn’t unusual — referrals from search fluctuate from time to time, and they primarily affect logged-out users.”
ICYMI, Google has started prioritizing user-generated answers (like those on Reddit) in its search results. So any sign that the Alphabet was about to derail the gravy train sent shivers down investors’ spines.
It probably doesn't help that shares are up nearly 500% since its IPO. So anything short of a masterclass in running a social platform was going to leave investors disappointed.
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+ Wake up babe, January CPI just dropped…
Prices rose 0.5% from December. Don’t freak out, but that’s the largest monthly increase since August 2023. 12-month inflation hit 3% in January, while core CPI jumped 0.4% from December, up 3.3% over the year. Shocker: the Dow and S&P 500 both took a beating.
Meanwhile, J-Poww has been a Buzz Killington during his latest tour of Capitol Hill. Jerome didn’t indicate any changes in the Fed’s approach (think: no cuts any time soon). And at this point, we should just be happy he isn’t talking about rate hikes.
+ 2021 GameStop investors are punching air…
Robinhood (+4.8% // AH: +15.3%) just flexed on the haters. Vlad dropped a Q4 earnings and revenue beat annihilation. Revenue doubled in Q4 to $1.01B. And year over year, earnings for HOOD have soared over 3,000%. Crypto revenue saw a 700% increase, mostly thanks to the crypto tidal wave leading up to the election. Shares rocketed after hours.
Now, just imagine if the fun police at the CFTC didn’t come along and warn Robinhood not to take wagers on the ‘Big Game’...
+ There will be blood…
Chevron (-1.6%) is planning to gut 15-20% of its global workforce by 2026. The energy giant wants to cut around 9k employees as part of its turnaround plan to shed $2-3B in costs. Chevron is looking to focus on cash flow and to “execute faster and more effectively,” which is that thing where your manager makes you do 3 people’s jobs.
The move follows the lead of ExxonMobil (-3.0%) which has cut its global workforce by 17% since 2019. Chevron’s best hope for growth hinges on its $53B acquisition of Hess Corp (-1.5%) with its sweet stake in toy trucks oil assets in Guyana.
+ Theranos founder Elizabeth Holmes says her time in prison is “hell and torture.” Guess she still hasn’t realized being hyperbolic was definitely part of what got her there…
+ Those who can’t make an Apple car… work for the government regulating cars. Apple (+1.8%) employee Jonathan Morrison got the Trump nomination to head up the National Highway Traffic Safety Administration.
+ Apple (+1.8%) is about to open up TV+ for Android devices, so you won’t have to explain Severance to those green-bubble mouth breathers anymore.
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+ Are you a ‘competitor’ or a ‘collaborator’?: The 5 ‘conflict personality’ types—and how to get along with them. This is just astrology for HR.
🔥 Jalen Hurts lives in a $2,000-per-month rental despite his $255M contract — here’s why. Bro, what are you trying to prove?
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+ US stocks “were largely lower on Wednesday as investors digested a hotter-than-expected January inflation reading and investors pared back bets on Federal Reserve interest rate cuts in 2025.” (Yahoo! Finance)
+ The 10-year yield “rose sharply on Wednesday as investors reacted to the hotter-than-expected January consumer inflation report.” (CNBC)
+ Oil “prices settled down more than 2% on Wednesday after U.S. President Donald Trump took the first big step toward diplomacy over the war in Ukraine he has promised to end, a war that has supported oil prices on concerns about global supplies.” (Reuters)
+ Bitcoin “retreated on Wednesday after January inflation data came in hotter-than-expected, weighing on the risk sentiment in the crypto market.” (Investing.com)
+ The three most talked about stocks on WallStreetBets in the past 24 hours were: 1) Reddit +1.2% // AH: -13.3% 2) Tesla +2.4% 3) Robinhood +4.8% // AH: +15.3%
⏪ Yesterday…
+ Vertiv, CVS Health, Kraft Heinz, Barrick Gold, Dominion Energy, and CME reported before the bell
+ Robinhood, Cisco, Reddit, The Trade Desk, Applovin, HubSpot, Dutch Bros, Paycom, Albemarle, and Equinix dropped earnings after the bell
+ The January CPI report dropped
+ Jerome Powell testified before the House Financial Services Committee
⏩ Today we’re keeping an eye on…
+ Datadog, Deere, Sony, Crocs, Brookfield, ZOETIS, CyberArk, GE Healthcare, Moody’s, YETI, Honda, Duke Energy, Iron Mountain, and Hertz report before the bell
+ Coinbase, Palo Alto, Airbnb, Applied Materials, DraftKings, Roku, Twilio, DexCom, Wynn Resorts, Digital Reality Trust, Kinsale, and Motorola report after the bell
+ Cybersecurity firm SailPoint IPOs
Yesterday, I asked, “Decide the fate of the Penny…”
“Get rid of it” won with 82.6% of the votes.
Here’s what some of you guys had to say…
Get rid of it: “Just quit making them and let what is still in circulation allow it to slowly fade away.”
Keep it: “If we get rid of it future kids will never understand ancient proverbs like "a penny for your thoughts"”
Get rid of it: “the cost of getting rid of the penny on the consumer is higher than the cost to the government to keep making it. ”
Keep it: “except for 1815 when the mint had a lot of problems, it's been made every single year since 1793. No other coin comes close. Even in the 90s they estimated there's more Lincoln cents made than every other coin on earth combined. It's Americana.”
And here’s today’s question…
Asking for a friend: go out on Valentine's Day or not?
Oh, and one more thing…
What did you think about today's newsletter?
Does this look like the face of a guy you should take financial advice from?
No, it’s the face of an individual who is financially irresponsible/dumb enough to be talked into spending money on a family photo shoot that he could have just done with his iPhone. So, act accordingly...
This is not financial advice. Nothing in this newsletter is an investment recommendation. All content is created for entertainment, educational, or informational purposes only. Do your own research, or do yourself a favor and hire a professional.