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- Market Munch 🍎 | 3 February 2023
Market Munch 🍎 | 3 February 2023
BYJU's chops off more employees, Mark Zuck gets the money rolling, and Ferrari hits a profit home run. 🔥
Aryaansh Rathore
February 02, 2023
Happy Friday, Munchers! 🙏
Hope you had a smashing week and that you're looking forward to some well deserved rest & relaxation.
As always, here is your daily dose of the news that matters, from Wall Street to Dalal Street - in 4 minutes and 53 seconds.
Yesterday, BYJU's continued cutting costs, Meta got the cash flowing, and Ferrari rolled around in dough. 🔥
Let’s dive in.
What’s hot, what’s not?
Market Commentary
European government bond markets surged the most they have in 10 years after both the ECB and the BofE raised rates by 50 bips. Both have signaled that many more hikes are to come if they want to subdue inflation. Demand destruction!
American stocks went on a rollercoaster ripper yesterday. Traders have started to bet that we may well be crossing the end of this rate-rise cycle and that it might be time to start splashing money into dumb stuff again. All in a day's work.
Things are starting to look a little more chill. Central banks going less crazy with the rate hikes, big funding rounds creeping up here and there, crypto bros emerging from their hidey-holes... nature is healing!
Story Roundup
BYJU's is under a lot of burden.
Financial troubles, wafer-thin margins, and a slowdown in customer demand are all some perils that they've had to endure.
To help ease this cost-push pain, they had to start cutting jobs.
They fired about 2,500 folks last year. All of these people got an email from the CEO.
A lot of the email was flattery, smoke, and mirrors, but one part stood out.
He said that he would not be getting rid of any other jobs at the company.
Cut to today, and BYJU's is firing another 1,000 people.
Hypocrisy isn't a real thing once you get that big. 🤷
Facebook is having it's best day in a decade, and the great Zuck is making some hefty promises.
Yesterday, Meta reported Q4 revenue of $32.2bn. Even though it's 4% lower than last year, it's an impressively resilient number.
Pair that with $40 billion in share buybacks and an expenses cut of $5 billion planned for 2023, and you have some pretty happy investors.
Wall Street has lost a lot of hope in Meta in recent events but this one seems to seal the deal for them.
The stock was up 25% yesterday.
Maybe the boomers ARE still using Facebook... 🤔
"If you ask a child to draw a car, he will paint it red" - Enzo Ferrari.
Ferrari bleeds red but their bottom line is quite the opposite.
They just roared in to a record year - smashing sales expectations and giving out some excellent 2023 guidance.
Demand across the Americas and China is all set to pick up as the former gets a little richer and the latter opens itself up to the world.
Recession risk in 2023 provides yet another margin of safety - since investors apparently think that Ferrari is "safe".
Great time to be a rich dude.
The bloodshed from the Adani group selloff has crossed $100bn, and it's been a crude wake up call for a lot of people.
Gautam Adani broke his silence yesterday and defended his empire and the cancellation of the $2.4bn FPO.
He said that the stock sale had been halted to protect investors from some pretty heavy market movements and that Adani's earnings and cash flows were very strong.
Their stock price has fallen >20% in each of the last 3 trading sessions, and they keep incinerating market cap every day.
Adani baba has fallen from 2nd to 11th richest dude in the world.
Play a sad song... on the world's tiniest violin.
Ukraine is confident that they can still win the war.
Their buddies from the West are sending through a free flow of arms, and it looks to be game-changing on the front lines.
America and Germany just dropped some of the world's best battle tanks onto the Ukrainian side.
In short, these are walking death machines.
Russian tech is relatively inferior, so Ukraine now has a few sneaky aces up it's sleeve.
Looks like the tides may be turning.
Hope you enjoyed this issue of the Market Munch. If you've got any feedback - good or bad (😏) you can hit reply to this email. Thanks a ton for reading!
Cheers, and have a lovely day. 🙏
Aryaansh