📈 Adidas To Lose $1.3Bn in Yeezy Sneakers

Good Morning!

Thursday had stocks starting strong, then dipping, with the Fed decisions giving investors a bit of whiplash. The Dow Jones, S&P 500 and Nasdaq all finished the day in the red. Meanwhile, across the pond, the UK barely missed a technical recession with zero growth, but took a sharp dip in December like a drunken sailor.

Adidas may have to dodge some financial obstacles as well, warning they could lose a whopping 1.2 billion euros in sales this year due to unsold Yeezy sneakers. But the real shocker came from Lyft, as their stock plummeted 22% after-hours, leaving us all wondering what's next for the ride-sharing giant.

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Markets

Dow closes nearly 250 points lower, Nasdaq sheds 1% as Alphabet shares slide (5 minute read)Stocks had a wild ride on Thursday, starting strong but ultimately losing steam thanks to concerns over the Fed's future plans and some investor jitters. The Dow Jones took a 0.73% dip, the S&P 500 slid 0.9%, and the Nasdaq took the biggest hit with a 1.02% drop. Alphabet, being a parent to Google, lost 4% due to AI competition fears, and Meta also took a 3% hit.

European stocks fall; slowdown fears grow despite U.K. avoiding recession (4 minute read)Europe's stock markets took a slight dip on Friday as the UK's December economic struggles added fuel to global recession worries. The German DAX, French CAC 40, and UK's FTSE 100 all fell by 0.3% to 0.4%. The UK barely missed a technical recession in Q4 2022 with zero growth, but took a sharp 0.5% drop in December, making a recession seem unavoidable. The Bank of England predicts a shallow but long-lasting recession starting Q1 2023 for five quarters.

Investing

Adidas shares tank after it issues warning over unsold Yeezy stock (3 minute read)Adidas may miss out on 1.2 billion euros ($1.3 billion) in 2023 sales due to a surplus of Yeezy sneakers. This is after they ended their relationship with rapper and designer Ye (formerly known as Kanye West) due to his controversial remarks. The company is now trying to figure out what to do with all their leftover Yeezys and has already accounted for the financial hit. Shares dropped 11% as the news broke, causing panic among traders.

Lyft Stock Plunges As Earnings Miss Big, Revenue Outlook Falls Short (2 minute read)Lyft had a rough Thursday as they reported Q4 results that were below expectations and a bleak outlook for Q1. The ride-hail company posted an adjusted loss of 74 cents per share on revenue of $1.2 billion, missing the predicted earnings of 13 cents and revenue of $1.15 billion. As a result, Lyft stock took a nosedive, dropping 22% during after-hours trading.

2 No-Brainer Stocks to Buy With $500 Right Now (5 minute read)Shopping online is a big deal and it's only getting bigger! According to Morgan Stanley, the e-commerce industry could grow 64% to $5.4 trillion worldwide by 2026. Investing in companies like Amazon (AMZN) and Global-e Online (GLBE) might just be the ticket to turning a $500 investment into a pretty penny. The Motley Fool thinks these companies are a great way to ride the e-commerce wave.

Money

How To Set Your Kid Up To Become a Millionaire (10 minute read)Want to make your kid a millionaire? Good news, it's possible! With the right accounts, your child can be well on their way to financial freedom. So, where do you begin this wealth-building journey? Private wealth advisor Dawn Dahlby suggests starting with these accounts. It's never too early to start planning for your child's financial future!

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