💴 Big earnings

Together with Mode Mobile

Good morning investors! This is going to be an earnings heavy issue so get ready.

📊 Economy and News 

Amazon almost got into trouble

The White House criticized Amazon over reports it planned to show the cost of President Donald Trump’s tariffs alongside product prices on its website.

“This is a hostile and political act by Amazon,” said White House press secretary Karoline Leavitt during a press briefing with Treasury Secretary Scott Bessent.

Amazon later stated the tariff surcharge display was “never approved” and “not going to happen.”

Trump called Jeff Bezos on Tuesday morning to voice his frustration over the initial report that triggered the strong reaction from the White House.

Global hits:

• Mexican economy seen flat in first quarter. On the other hand, Spain’s Q1 economic growth slows to 0.6%, below expectations.

• China’s Big Five banks post slimmer margins as economic challenges persist.

• Euro zone consumers increase inflation expectations for the coming year.

Good news: President Donald Trump signed an executive order softening some of his automotive tariffs. Vehicles that go through final assembly in the U.S. will be able to qualify for partial reimbursements on parts-related levies for two years. Elsewhere, President Donald Trump says he believes the U.S. will have a deal with India on trade. Lastly, U.K. Finance Minister Rachel Reeves announced plans for a “comprehensive regulatory regime for crypto assets.”

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From humble beginnings to generating over 32,481% revenue growth from 2019-2022, Mode Mobile is on the verge of disrupting a $1 trillion industry. But the opportunity to invest in Mode’s vision at $0.26/share is closing.

📈 Stocks

S&P 500 5,130.95, (-.012%)
DJIA 39,989.83 (-0.24%)
NASDAQ 16,207.51, (-.041%)
BRENT CRUDE $83.69 (+0.17%)
* Prices as of Mar 3rd, 12:20 AM UTC

Fintech Stocks Surge on Earnings and Analyst Upgrades

Fintech stocks rallied Tuesday as strong earnings and fresh analyst commentary boosted investor sentiment helping the stock market record its longest rally since November.

Shift4 Payments Jumps on Strong Q1

Shift4 Payments surged over 12% after posting better-than-expected Q1 earnings of $1.07 per share, beating the LSEG forecast of $0.71. Revenue came in slightly below expectations at $848 million, but investor optimism remained high after the company raised full-year guidance and reported a payment volume of $45 billion, exceeding estimates. Shift4 also projected 2025 EBITDA of $853 million as it expands into stadiums, gaming, and travel.

Upstart Rallies on Upgrade and Improved Outlook

Upstart Holdings climbed over 2% after Bank of America upgraded the stock to neutral from underperform, citing improved fundamentals and a balanced risk/reward profile. The firm has diversified its loan offerings beyond subprime into areas like prime credit, HELOCs, and auto loans. Shares are up ahead of Q1 earnings on May 6 and its AI-focused Investor Day on May 14.

PayPal Ticks Up Despite Mixed Quarter

PayPal shares rose 1.5% after beating earnings expectations, though revenue slightly missed estimates. A key highlight was Venmo, which saw 20% revenue growth year-over-year — outpacing the 10% rise in payment volume — reflecting early success in monetization efforts. Mizuho expects the stock to rebound, though cautioned that flat full-year EPS guidance could weigh on sentiment.

Visa Delivers Beat and Buyback Boost

Visa reported a strong fiscal Q2 with revenue of $9.59 billion and adjusted EPS of $2.76, both ahead of expectations. Payments volume rose 8% and transactions increased 9%. The company also announced a $30 billion stock buyback, sending shares nearly 2% higher in after-hours trading.

More earnings:

• Starbucks reported weaker-than-expected earnings and another drop in same-store sales, though it said its turnaround strategy is beginning to gain traction. Operating margin fell to 6.9% from 12.8%, driven by higher spending on labor and promotions. U.S. transactions declined 4%, leading to a 2% drop in same-store sales, while global sales fell 1%. In China, sales were flat as growth in visits was offset by smaller purchases. The company had suspended its fiscal 2025 forecast last October while launching its comeback plan.

• Swedish-based automaker Volvo Cars announced plans to launch cost cuts of 18 billion Swedish kronor ($1.87 billion) as its operating profit fell sharply in the first three months of the year. Volvo Cars, which is owned by China’s Geely Holding, reported first-quarter operating profit of 1.9 billion kronor, down from 4.7 billion kronor from the same period last year. The company said its so-called “cost and cash action plan” would include reductions in investments and redundancies at its operations across the globe.

• British oil giant BP posted underlying replacement cost profit, used as a proxy for net profit, of $1.4 billion for the first three months of the year. That missed analyst expectations of $1.6 billion, according to an LSEG-compiled consensus. The results come as the energy major faces fresh pressure from activist investors less than two months after announcing a strategic reset.

• Snap Inc. topped revenue expectations in its latest quarterly earnings but held off on providing forward guidance, citing macroeconomic uncertainties. The company reported first-quarter revenue of $1.36 billion, a 14% increase from $1.19 billion a year earlier, outpacing analyst estimates. Despite the beat, Snap shares dropped 13% in after-hours trading, reflecting investor unease over the lack of outlook. Chief Financial Officer Derek Andersen noted that some advertisers are already seeing the effects of a looming change to the de minimis import exemption, which is set to expire on May 2. In terms of user growth, Snap slightly surpassed expectations with 460 million global daily active users compared to the 459 million anticipated. Average revenue per user also came in ahead at $2.96, versus the expected $2.93.

• Super Micro issued preliminary results that were well below analysts’ estimates sending the stock down 15% after the bell. It’s another blow for the server maker, which last year had to contend with delayed financial filings and short-seller reports. The company said on Tuesday that in the latest quarter, “some delayed customer platform decisions moved sales” into the following period.

• Il Makiage owner Oddity Tech beat Wall Street’s expectations on the top and bottom lines, leading it to raise its guidance. The stock went up 21% as a result. The rosy set of results comes as the retail industry braces for the negative effect tariffs will have on their businesses. Oddity primarily sources from Europe and said any effects from tariffs will be manageable.

• Casino operator Caesars Entertainment posted a narrower loss, driven by strong performance in its digital unit amid high demand for sports betting. The Reno, Nevada-based company, which manages online gambling segments, has experienced a surge in its digital segment due to growth in retail sports betting.

• Spotify's strong start to 2025 continued, with monthly active users up 10% to 678 million and premium subscribers rising 12% to 268 million. Revenue grew 16% year-over-year, with earnings up 10%. However, EPS fell short of Wall Street estimates due to higher-than-expected costs—specifically, 76 million euros in employment taxes tied to a 106% rise in Spotify's share price. These social charges were 58 million euros above forecast.

• General Motors beat Wall Street’s first-quarter expectations but is reassessing its 2025 financial guidance and suspending any additional stock buybacks amid expected cost increases. Jacobson declined to disclose how much the tariffs, including 25% levies on imported vehicles effective April 3, have cost the Detroit automaker thus far.

• Coca-Cola beat Wall Street’s quarterly earnings and revenue estimates and largely reaffirmed its full-year outlook, as it said it expects the effects of global trade conflicts to be “manageable.” For 2025, Coke is still anticipating that its organic revenue will grow 5% to 6% and comparable earnings per share will increase 2% to 3%. Unlike rival PepsiCo, Coke did not trim its full-year forecast. Coke said its operations are “primarily local,” although costs, like aluminum and orange juice, could rise due to the trade wars.

• United Parcel Service’s first-quarter profit beat market estimates and the parcel delivery giant said it will cut 20,000 jobs to lower costs in an uncertain economy and in anticipation of weak volumes from its largest customer, Amazon.

• Samsung Electronics’ operating profit and revenue beat analysts’ estimates, as chip sales rose amid worries of U.S. President Donald Trump’s “reciprocal” tariffs coming into effect. The South Korean company posted a near 10% jump in first-quarter revenue from a year earlier, while its operating profit climbed 1.5%.

💵 Personal Finance

How to be a day trader - Part III

Rewards of Day Trading

• Potential for High Profits: Day trading allows traders to capitalize on small price movements in highly liquid stocks, potentially leading to significant gains in a short time.

• Flexibility and Independence: Traders can work from anywhere with an internet connection, set their own schedules, and be their own boss.

• Fast-Paced Learning: The dynamic nature of day trading offers rapid learning opportunities, helping traders quickly improve their market knowledge and skills.

• No Overnight Risk: Since positions are closed by the end of the trading day, traders avoid risks associated with overnight market gaps or news events.

Risks of Day Trading

• High Financial Loss Potential: Rapid market movements can lead to substantial losses, especially with leveraged positions, sometimes exceeding initial investments.

• Time-Intensive Commitment: Day trading requires constant market monitoring and quick decision-making, which can be mentally exhausting and time-consuming.

• Emotional Stress: The fast-paced environment can lead to emotional decision-making, causing traders to deviate from their strategies and incur losses.

• Costs and Fees: Frequent trading incurs high transaction costs (commissions, spreads) and requires sophisticated tools, which can erode profits.

• Regulatory and Capital Requirements: Day trading often requires significant starting capital, and pattern day traders (those executing four or more day trades in five business days) must maintain a minimum account balance of $25,000 in the U.S.

Balancing Risks and Rewards
To succeed, day traders must develop a solid strategy, practice disciplined risk management, and continuously educate themselves. Starting with paper trading and small positions can help mitigate risks while building confidence and experience.

Check tomorrow’s issue for more.

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👩🏽‍⚖️ Legal Stuff
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Disclosures

*Mode Mobile recently received their ticker reservation with Nasdaq ($MODE), indicating an intent to IPO in the next 24 months. An intent to IPO is no guarantee that an actual IPO will occur.

*The Deloitte rankings are based on submitted applications and public company database research, with winners selected based on their fiscal-year revenue growth percentage over a three-year period.

*Please read the offering circular and related risks at invest.modemobile.com.