🥊 Google beats again

and the poor housing market

Good morning investors! The market closed higher for a third day in a row and today might prove to be another good day for investors.

Today we cover:

  • The housing market

  • Google beats again

  • More earnings

Sponsor:

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📊 Economy and News 

Spring Housing Market Stalls as High Mortgage Rates Bite

Sales of previously owned homes dropped 5.9% in March from February, hitting an annualized rate of 4.02 million units—the slowest March pace since 2009.

Compared to March 2024, sales were down 2.4%, with declines across all regions except the West, where strong job growth in Rocky Mountain states led to a year-over-year increase.

The slowdown reflects contracts signed in January and February, when 30-year mortgage rates averaged over 7%. Despite a nearly 20% jump in inventory year-over-year to 1.33 million units, affordability remains a key hurdle.

The median home price in March was $403,700, up just 2.7% from last year—the smallest gain since August.

First-time buyers made up 32% of the market, below the historical norm of 40%, while all-cash sales and investor activity remained steady.

Economists warn the worst may not be over. Contract cancellations rose in March, and April’s market volatility could intensify the downturn.

Global hits:

Rate cut? New York Fed Governor Christopher Waller said he would support interest rate cuts if tariffs begin hurting the job market. Meanwhile, Cleveland Fed President Beth Hammack told CNBC that the Fed could consider rate changes as early as June if the economic outlook becomes clearer.

Also check: Freddie Mac reported that the average 30-year fixed mortgage rate slightly decreased to 6.81%, reflecting a period of relative stability that benefits both home buyers and sellers. We also found that more travelers are using ‘buy now, pay later’ plans to pay for trips — especially Gen Z. Lastly, Median US CEO pay hits record $16.8 million on soaring stock awards.

Do you think we have reached the bottom?

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Reminder: Trump claimed trade talks were progressing, despite China's assertion that they’re not currently in communication — leaving markets to interpret the mixed signals.

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📈 Stocks

S&P 500 5,484.77 (+2.03%)
DJIA 40 093,40 (+1.23%)
NASDAQ 17 166,04 (+2.74%)
BRENT CRUDE 66.55 (+0.46%)
* Prices as of Apr 25th, 12:20 AM UTC

Alphabet Surges on Strong Q1 Earnings and $70B Buyback Plan

Alphabet posted better-than-expected Q1 results, sending shares up 4% after hours. Revenue rose 12% to $90.23B, beating the $89.12B estimate, while earnings surged 46% to $2.81 per share.

Advertising remained strong with $66.89B in revenue, up 8.5% year-over-year. YouTube ad sales slightly missed estimates at $8.93B. Search revenue jumped nearly 10% to $50.7B, as Alphabet touted 1.5 billion monthly users for its AI Overviews tool.

Google Cloud revenue hit $12.26B, just shy of expectations, but saw a 28% annual growth and margin improvement to 17.8%.

Alphabet’s $32B acquisition of security firm Wiz, its biggest ever, aims to boost its cloud business. Meanwhile, the “Other Bets” unit saw revenue fall 9% to $450M, with losses widening to $1.23B.

The board approved another $70B share buyback, matching last year’s repurchase authorization.

Look here: Amazon and Nvidia say AI data center demand is not slowing down. Elsewhere, Meta has laid off employees in its Reality Labs division that is tasked with developing virtual reality, augmented reality and related wearable devices.

More earnings:

  • Norges Bank Investment Management — the largest sovereign wealth fund in the world — reported a first-quarter loss of 415 billion kroner ($40 billion), citing weakness in the tech sector.

  • Digital banking unicorn Revolut said that net profit for the year ending Dec. 31, 2024, totaled £1.1 billion ($1.5 billion), up 149% year over year. The financial milestone arrives as Revolut is preparing a transition to becoming a fully operational bank in the U.K. after securing a banking license last summer. Revolut’s U.K. CEO previously said she sees views the journey to full banking authorization as a crucial step in global expansion and an eventual IPO.

  • Comcast beat Q1 earnings expectations with $1.09 per share on $29.89B revenue but lost 199,000 broadband customers amid rising competition from 5G and fixed wireless. President Mike Cavanagh cited pricing and customer experience as key hurdles. The company is shifting focus to its growing mobile business, which added 323,000 lines and saw revenue jump 16% to $1.12B.

  • Shares of Kering fell after the French luxury goods group posted lower than expected first-quarter sales and pointed to further macroeconomic headwinds ahead. Revenues at the fashion giant plunged 14% year-on-year in the first quarter to 3.9 billion euros ($4.4 billion), below the 4.01 billion euros forecast by LSEG analysts. Gucci sales, which make up nearly half of total group revenues, fell 25% on a comparable basis to 1.57 billion euros.

  • ServiceNow topped first-quarter results and shared an upbeat forecast despite ongoing macroeconomic uncertainties. The enterprise technology company posted adjusted earnings of $4.04 per share on $3.09 billion in revenue. CEO Bill McDermott said during an earnings call that the company has had “very positive” discussions with the so-called Department of Government Efficiency, which is led by Tesla CEO Elon Musk.

  • Intel reported first-quarter earnings that beat on the top and bottom line. But the company issued disappointing guidance. The struggling chipmaker said it plans to slash operational and capital expenses in the coming year, the first under CEO Lip-Bu Tan.

  • American Airlines withdrew its 2025 forecast, citing weaker domestic leisure demand and economic uncertainty. Q1 losses widened to $473M, or 59 cents per share—better than the expected 65-cent loss—on $12.55B in revenue. International and premium bookings drove a 0.7% unit revenue rise, but Q2 revenue is expected to range from -2% to +1% year-over-year, below forecasts. Earnings are projected at 50 cents to $1 per share. The airline continues to recover corporate travel demand and plans a 2–4% capacity increase in Q2.

  • PepsiCo’s first-quarter earnings missed Wall Street’s estimates, but its quarterly revenue topped projections. The food and beverage giant also cut its forecast for its core constant currency earnings per share, citing new tariffs, economic volatility and a more cautious consumer. CEO Ramon Laguarta said Pepsi is expecting more uncertainty.

  • Procter & Gamble’s quarterly earnings topped estimates, but its revenue fell short of expectations. The company also cut its forecast for its full-year core earnings per share and revenue, President Donald Trump’s tariffs and consumer uncertainty. P&G CEO Jon Moeller said the company will “likely” increase prices in the next fiscal year.

Good to know: Adobe to launch mobile app for AI image generation tool as OpenAI steps up rivalry. On the other hand, American liquor exports hit record high in 2024, driven by tariffs.

💵 Personal Finance

Save More, Stress Less

Many people struggle to save enough, often living paycheck to paycheck. These quick tips are designed to help you build a saving habit, even if you feel stretched thin.

1. Start Small, Automate It

  • Action: Set up an automatic transfer of $10-$25 per paycheck to a separate savings account.

  • Why: Small amounts add up, and automation removes the temptation to spend.

2. Track Spending for One Month

  • Action: Use a free app or spreadsheet to log every expense for 30 days.

  • Why: Seeing where your money goes (e.g., $100/month on coffee) reveals easy cuts.

3. Use the 50/30/20 Rule

  • Action: Allocate 50% of income to needs (rent, bills), 30% to wants (dining, entertainment), and 20% to savings or debt repayment.

  • Why: This simple budget prioritizes saving without feeling restrictive.

4. Build an Emergency Fund

  • Action: Aim for $500-$1,000 in a high-yield savings account before other goals.

  • Why: A small cushion prevents reliance on credit cards for unexpected expenses.

5. Cut One Subscription

  • Action: Cancel one unused or low-value subscription (e.g., streaming, gym).

  • Why: Redirect that $10-$20/month to savings for an instant boost.

Pro Tip

Saving feels impossible when money’s tight, but consistency beats perfection. Start with $1/day if needed—$365/year is better than $0. Check out high-yield savings accounts online for better interest rates.

💰 Be a Better Investor

“Money is only a medium, a vehicle through which goods are exchanged; it is not wealth itself.”

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