📈 Stagflation Scare

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Alphabet revealed impressive quarterly performance yesterday as the tech giant not only smashed revenue and earnings forecasts but also announced a generous dividend and a massive $70 billion buyback plan, sending its stock soaring over 11%. Meanwhile, the broader stock market faced headwinds, with the Dow dropping 375 points amidst concerns over high inflation and sluggish growth signaling potential stagflation.

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Markets

Alphabet stock surges on earnings beat, dividend announcement (3 minute read)
Alphabet, the powerhouse behind Google, saw its stock surge over 11% in early trading Friday, thanks to knockout quarterly results. Crushing revenue and earnings forecasts, they also dished out a fresh dividend of $0.20 per share and flaunted a hefty $70 billion stock buyback plan.

CEO Sundar Pichai spoke, boasting strong performances in Search, YouTube, and Cloud, and hyped up Google's pole position in the AI race with a nod to their "global product footprint." Their revenue, minus some costs, jumped 16% to $67.59 billion, edging past the $66.07 billion analysts predicted. Earnings per share also outdid expectations at $1.89, over the anticipated $1.53.

Amid the AI frenzy, where Google has been seen as lagging behind Microsoft’s early ChatGPT play, Google execs confidently declared on their earnings call that they’re not just catching up, but aiming to dominate the upcoming AI era with robust investments.

Dow falls 375 points as traders brace for new inflation data after weak GDP (3 minute read)
Stocks took a dive on Thursday, with the Dow tumbling 375 points, as some lackluster economic data spooked the market. Despite slower growth last quarter, inflation stubbornly clung to its high perch, giving traders the jitters about ongoing "stagflation"—a throwback no one's eager to revisit.

However, not everyone's hitting the panic button. Barclays and Bank of America have peered beneath the gloomy surface, spotting a silver lining with solid domestic demand that rose by 2.8% for the quarter. Now all eyes are locked on today’s personal consumption expenditures report. This could turn the tide yet again, as Bank of America predicts tweaks in January and February's figures, rather than a shocking spike in March.

Snap shares soar 23% as company beats on earnings, shows strong revenue growth (2 minute read)
Snap’s first-quarter fireworks sent shares skyrocketing over 23% after hours, thanks to a revenue surge of 21% year-on-year, hitting $1.11 billion. Finally breaking a dismal streak of six quarters, Snap’s revival is thanks largely to its revamped ad business. After the digital ad market's 2022 slump, Snap's reinvented itself with its direct-response advertising solutions and a more robust brand environment, as CFO Derek Andersen highlighted. And there's more good news: Snap's "Other Revenue," fueled primarily by its Snapchat+ subscriptions, exploded by 194% to $87 million, with more than 9 million subscribers tuning in.

Investing

1 Unstoppable AI Stock to Buy and Hold Forever (3 minute read)
Amazon is staking its claim in the AI gold rush with strategic moves that make it a top buy-and-hold investment. Through Amazon Web Services (AWS), it launched Bedrock, aiding developers in crafting AI applications akin to ChatGPT, spanning speech, images, and videos. Not stopping there, Amazon invested $4 billion into Anthropic, the brains behind Claude, a generative AI platform vying with GPT-4.

This hefty investment might raise eyebrows, but for Amazon, it’s just another day at the office. Last year, the e-commerce giant raked in about $32 billion in free cash flow, so $4 billion is pocket change. CEO Andy Jassy is bullish, predicting AI will soon contribute tens of billions to Amazon's revenues. Given AWS’s whopping $100 billion run rate and significant role in Amazon’s financial health—bolstered by a 12% increase in net sales last year to $574.8 billion—betting on Amazon’s AI endeavors looks like a smart play.

Worldcoin Eyes Partnership with OpenAI (4 minute read)
Worldcoin is sprinting to distribute digital identities and crypto tokens by scanning irises, but it's running straight into a wall of regulatory heat and data privacy nightmares. Despite these hiccups, including raids at its "orb verification locations" in Hong Kong and probes in Germany, Argentina, and a ban in Kenya, the project's zeal hasn’t dimmed.

Now, they're even aiming to join forces with tech heavyweights like OpenAI. Recent flare-ups include Spain and Portugal slamming the brakes on Worldcoin for allegedly scanning minors. Although Worldcoin is pushing the boundaries with its ambitious World ID, it can't escape the regulatory shadows, particularly in the U.S., where its tokens remain off-limits to traders.

Meta’s Metaverse is still losing the company billions (2 minute read)
Mark Zuckerberg's big swing to rename Facebook as Meta and usher in a dazzling Metaverse era has been looking more like a strikeout than a home run. Despite the hype of virtual realities for work and social visits, the reality has fallen short, leading many to declare the Metaverse dead on arrival.

Yet, Meta isn’t pulling the plug just yet. Reality Labs, the division behind this ambitious project, reported a hefty $3.8 billion loss this quarter, but there's a silver lining—losses are down 17% from the last quarter and 3.7% from last year. Zuckerberg, still the eternal optimist, claims a "good start to the year" and touts steady progress in building the Metaverse.

What we’re seeing, according to him, is merely the end of the Metaverse's "hype phase," a typical cycle for groundbreaking tech. From the internet to electric vehicles, early over-promises often need time to morph into reality. So, Meta’s dream isn’t dead just yet.

Money

How Much Money Do The Top Income Earners Make? (5+ minute read)
Ever wonder what it takes to be among the top earners in the U.S.? Here's a peek into the wallets of America's wealthiest. According to IRS data for 2023, if you're aiming for the top 1%, you'll need to pull in over $650,000. Breaking into the top 5% requires $250,000, while the top 10% are sitting with at least $170,000. As for the upper 25% and 50%, you'd need to make $95,000 and over $50,000, respectively.

Remember, these figures are shifting sands due to inflation, but they provide a stark picture of the widening wealth gap since the 2008 financial crisis.

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