Together with Elf Labs

Good morning investors! Yesterday was another earning-heavy day that saw Bitcoin falling below $96,000.

Today we cover:

• No rate cut nearby

• Shopify reports

• More earnings

📊 Economy and News 

Powell Signals No Rush to Cut Interest Rates

Federal Reserve Chair Jerome Powell reaffirmed the Fed’s commitment to controlling inflation, telling the Senate Banking Committee that policymakers are in no hurry to lower interest rates. He described the economy as “strong overall,” with a solid labor market and inflation still above the 2% target.

Powell warned that easing policy too quickly could stall inflation progress, while moving too slowly could weaken growth. His comments align with previous statements, reinforcing expectations that rates will likely remain steady through summer.

The hearing also touched on banking oversight and trade policy, with Powell reiterating that the Fed does not engage in trade matters. The central bank’s benchmark rate remains at 4.25%-4.5%, unchanged since late January.

Also, Fed Chair Jerome Powell asserted that the central bank will not develop its own digital currency as long as he is in charge, ending several years of speculation.

Global hits:

• Brazil's start-of-year inflation slows due to temporary energy credits.

• India unlikely to lift ban on Chinese investments soon.

• Russia's budget deficit jumps 14-fold in January.

Also check: BofA observes solid consumer spending, auto sales surge. Also, GM expects to mitigate up to 50% of potential North American tariffs, which Ford describes as ‘chaos’.

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And their team? Seasoned veterans who've previously generated over $6B in licensing transactions. 

This is your last chance. The opportunity to become a part of this game-changing disruption ends at midnight.

^{Disclosure: This is a paid advertisement for Elf Labs’ Regulation CF offering. Please read the offering circular at elflabs.com}

📈 Stocks

S&P 500 6,068.50 (+0.034%)
DJIA 44,593.65 (+0.28%)
NASDAQ 19,645.17 (-0.035%)
BRENT CRUDE 76.933 (+1.43%)
* Prices as of Feb 12th, 12:20 AM UTC

Shopify's Profit Beat Fails to Impress Investors

Shopify surpassed first-quarter profit expectations with the stock jumping +3.11% as thanks to strong holiday sales driven by AI features and robust consumer spending.

U.S.-listed shares, up 13% this year on revenue growth optimism, came under pressure as higher AI-related costs weighed on margins. Fourth-quarter revenue surged 31% year-over-year to $2.81 billion, its fastest growth in six quarters.

The company expects gross profit dollars to grow at a low-twenties percentage rate this quarter, below analysts' 24.2% estimate. Operating expenses are projected at 41%-42% of revenue, up from 31.5% in Q4.

Shopify’s mid-twenties revenue growth forecast aligns with estimates of 24.4%, while gross merchandise volume rose 26% to $94.46 billion in Q4. The stock got some upgrades as a result.

More earnings:

• French luxury goods firm Kering reported better-than-expected fourth-quarter sales that were nevertheless down year-on-year amid lagging demand for its main Gucci label. The luxury fashion group posted a 12% decline in fourth-quarter revenues to 4.39 billion euros ($4.52 billion), just slightly ahead of the 4.29 billion euros forecast.

• British oil major BP posted a sharp drop in fourth-quarter profit on weaker refining margins and pledged to “fundamentally” reset its strategy. Despite this, the embattled energy company launched a $1.75 billion share buyback for the fourth quarter.

• Coca-Cola posted a surprise rise in comparable revenue and topped estimates for fourth-quarter profit on Tuesday, helped by higher prices and resilient demand for its sodas and juices. Volumes rose 1% in North America - its biggest market - in the last three months of 2024, the first quarter of growth for the year. Consolidated unit case volumes increased 2%, following a 1% drop in the prior quarter. At the same time, global prices rose 9% in the quarter, following a 10% jump in the third quarter.

💵 Personal Finance

How investors can make money through crowdfunding - Part II

Let’s resume yesterday’s topic and talk about some more great ways to make money using crowdfunding:

Real Estate Crowdfunding

Real estate crowdfunding allows investors to pool their money with others to invest in real estate properties. It is similar to an ETF where several people come together to buy a property and make money in a variety of ways, including:

• Rental Income: If the property generates rental income, investors receive a share of that income.

• Property Appreciation: Investors hope that the property's value increases over time, and they can profit when it is sold.

• Loan Interest: Some real estate crowdfunding platforms also offer debt-based investments in real estate.

Rewards Crowdfunding

Investors in rewards crowdfunding typically receive a product or service in exchange for their investment. These rewards can be in a variety of forms. For example, a chance to attend a special event. Though not always of monetary value, these rewards can end up being beneficial.

In some cases, you may even have the option to get your hands on a new product for free. Rewards offered depend on the nature of the product. For example, if you fund a movie, you will typically get a chance to attend the premier with stars, see your name on the big screen, but not necessarily make money.

How to start: The first step is to look for a platform where you can find opportunities. Some of the top websites include KickStarter, SeedInvest, RocketHub, StartEngine, and GoFundMe.

You will have to sign up for an account (usually free) and go through available projects.

Don’t make haste. Look at projects carefully and invest in something you truly believe in.

💰 Be a Better Investor

Resources:

• Calculators

• Retirement Resources

• Dividends

• Make Money in Retirement

• Side Hustle Ideas

• Stock Deep Dives

• Investing 101 videos

👩🏽‍⚖️ Legal Stuff
Nothing in this newsletter is financial advice. Always do your own research and think for yourself.

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