🤛 Google's mixed report and more

and job openings drop

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Good morning investors! Today’s issue focuses on major earnings and economy news.

Today we cover:

  • Job openings drop

  • Alphabet disappoints

  • More earnings (Snapchat, Chipotle, PayPal, and AMD)

📊 Economy and News 

U.S. Job Openings Drop, but Labor Market Remains Resilient

U.S. job openings fell sharply in December, declining by 556,000 to 7.6 million—the largest drop in 14 months. Despite this, steady hiring and low layoffs suggest the labor market remains stable, allowing the Federal Reserve to delay rate cuts until at least June. Job openings per unemployed person fell to 1.1 from 1.15 in November. Fed Chair Jerome Powell signaled no urgency in adjusting monetary policy.

  • Declines:

    • Professional & business services: -225,000

    • Healthcare & social assistance: -180,000

    • Finance & insurance: -136,000

  • Increase:

    • Arts, entertainment & recreation: +65,000

The job openings rate dropped to 4.5% from 4.9%, with the biggest declines in small (10-49 employees) and mid-sized (50-249 employees) businesses.

Layoffs fell by 29,000 to 1.771 million, remaining low but making reemployment harder. Hiring increased by 89,000 to 5.462 million, mainly in finance and retail, though hiring remains down 325,000 over the year. The quits rate stayed at 2.0%, signaling reduced job-hopping and lower wage inflation.

Global hits:

The great resignation? Over 20,000 federal employees have expressed willingness to resign under a White House incentive program set to expire Thursday, a U.S. official told Reuters. The offer, extended to 2 million full-time civilian workers, allows them to leave immediately while receiving pay and benefits through Sept. 30. The Trump administration aims to reduce government size, though some Democrats question the program's legality. Public safety employees, including air traffic controllers, are exempt. Interestingly, reports say that there may be layoffs if too few US government employees quit.

Factory orders decline: U.S. factory orders fell 0.9% in December, following a revised 0.8% drop in November, driven by weaker demand for civilian aircraft. Economists had expected a 0.7% decline. Year-over-year, orders remained flat.

Manufacturing, making up 10.3% of the economy, has struggled under the Federal Reserve’s past rate hikes but is showing signs of recovery as monetary policy eases. The ISM manufacturing PMI turned positive in January for the first time in over two years. However, new U.S. tariffs on Chinese imports, effective Tuesday, and delayed tariffs on Canadian and Mexican goods could pose fresh challenges.

Good to know: Amazon to face legal action after Quebec warehouse closures trigger mass layoffs. Elsewhere, HR unicorn Deel prepares for IPO as soon as 2026 after revenue jump.

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📈 Stocks

S&P 500 6,037.88 (+0.72%)
DJIA 44,556.04 (+0.30%)
NASDAQ 19,654.02 (+1.35%)
BRENT CRUDE 78.08 (+0.18%)
* Prices as of Feb 5th, 12:20 AM UTC

Alphabet (Google) announces mixed earnings

Google reported its fourth-quarter results after the bell Tuesday.

Here are the numbers:

  • Revenue: $96.47 vs. $96.56 billion expected

  • Earnings per share: $2.15 vs. $2.13 expected

Here are other numbers Wall Street was watching:

  • YouTube advertising revenue: $10.47 billion vs. $10.23 billion

  • Google Cloud revenue: $11.96 billion vs. $12.19 billion

  • Traffic acquisition costs (TAC): $14.89 billion vs. $15.01 billion

The stock fell -7% after the bell as it failed to meet revenue expectations. Furthermore, the company plans to invest about $75 billion in capital expenditures this year.

Alphabet's Q4 net income rose to $26.54 billion from $20.69 billion a year ago. Cloud revenue reached $11.96 billion, missing Wall Street's $12.19 billion estimate but still marking a 30% annual increase.

Google is also expected to cut employees in its Platforms and Devices unit and has already started offering buyouts to employees. Also, Google is confident in Waymo, which will be available in Tokyo this year, its first international expansion.

Snap flexes: Snap shares rallied +9% after hours following the release of better-than-expected fourth-quarter earnings:

  • Earnings per share: 16 cents (adjusted) vs. 14 cents expected (LSEG)

  • Revenue: $1.56 billion vs. $1.55 billion expected (LSEG)

  • Global daily active users: 453 million vs. 451.1 million expected (StreetAccount)

  • Global average revenue per user: $3.44, in line with expectations (StreetAccount)

Snap’s fourth-quarter revenue grew 14% from the previous year’s $1.36 billion. The company reported a net income of $9.1 million, or a penny per share, marking a turnaround from a net loss of $248 million, or 15 cents per share, in the same period last year.

Looking ahead, Snap forecasts first-quarter revenue between $1.325 billion and $1.36 billion, with the midpoint of $1.34 billion surpassing Wall Street’s projection of $1.33 billion. However, adjusted earnings for the first quarter are expected to range from $40 million to $75 million, falling short of analysts’ expectations of $78.5 million.

In its investor letter, Snap attributed this cautious earnings outlook to planned investments in the upcoming quarter. Adjusted operating expenses are projected to rise by 11% to 12% year-over-year due to hiring, legal costs, and a seasonal shift in marketing expenses into Q1.

More earnings:

Exciting: Ferrari shares pop 8% as luxury carmaker sees further earnings growth in 2025. Also, the cheapest ticket for Super Bowl LIX in New Orleans has fallen below $4,000 on the secondary market, according to reseller TickPick, marking a 30% decline over the past week — and more than 50% cheaper compared to last year’s record-breaking Super Bowl.

💵 Personal Finance

Finding a job when you’re older

People are now working into their 60s and the average retirement age in most countries is on the rise; however, some find it difficult to get a job when they’re older.

Why is this happening?

There are three main reasons why people are working more:

  • Retirement savings have taken a big hit. 🔨 

  • Inflation has caused people to worry. 👴 

  • People want to have a social life and contribute to society as much as they can. 🎊 

So, what can you do?

Companies want new blood but there’s no substitute for experience. There are jobs for everyone but only if you look in the right place and make the right pitch.

Here’s what you can do to find a job when you’re older:

Continue to gain skills

Invest in continuous education by getting enrolled in online courses, learning the latest skills, and improving what you bring to the table. You’ll be competing with today’s generation so you have to be good.

Some official programs such as the Senior Community Service Employment Program (SCSEP) can be great to look at. The SCSEP helps older adults get training skills and job placement to re-enter the workforce. Furthermore, there are several other institutes specifically offering training and skill upgrades to seniors.

Look for a part-time or online job

It might be a good idea to look for part-time jobs if you’re struggling to find a full-time position. Similarly, online work is typically easier to find. Moreover, it’s also more flexible and often easier for older people. You will, however, have to understand the latest technology to be able to work from home.

Get in touch with companies that hire older workers

Some companies have publicly pledged to level the playing field for older workers and are open to hiring seniors. These include names like McDonald’s, Humana, Microsoft, and Marriott International. These organizations are a part of the AARP Employer Pledge program and do not discriminate based on age.

A look at this job board can help you find such companies. Furthermore, look at organizations certified by The Age-Friendly Institute. These are known for being great for people above 50.

Use your connections

Networking can be a great way to find a job. Join support groups for seniors and stay in touch with your old employers and ask if they have a suitable opportunity. Since they’re aware of your skills, they’re highly likely to hire you if they have the right vacancy.

 Still have questions? Check out this video:

💰 Be a Better Investor

"Hard work beats talent when talent doesn’t work hard."

Tim Notke

Resources:

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Nothing in this newsletter is financial advice. Always do your own research and think for yourself.