💴 Earnings (Shopify, Spotify, and more)

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Good morning investors! BTC hit $90,000 yesterday and some expect it to hit $100,000 before the end of the year as stocks continue to do well too.

Today we cover:

• Americans seem content

• More earnings (Home Depot, Shopify, SoftBank, and more)

• Financial perks of having kids - II

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📊 Economy and News 

US consumers see lower inflation and debt delinquency risk

U.S. consumers grew more optimistic in October about inflation easing and job market stability, with fewer seeing a risk of defaulting on debt for the first time in five months, according to a Federal Reserve Bank of New York survey.

Consumers projected inflation over the next year at 2.9%, down from 3.0% in September and marking the lowest near-term estimate in four years. Expectations for inflation over three and five years also dropped to 2.5% and 2.8%, respectively.

These findings align with the Fed’s goal to control price pressures and anchor inflation expectations, even as it shifts towards lowering interest rates. Inflation, measured against the Fed’s 2% target, fell to 2.1% in September, a significant drop from its peak in mid-2022.

Global hits:

• Oil giant Shell wins appeal against landmark Dutch climate ruling to slash emissions.

• Trump tariff threat looms large on several Asian countries — not just China — says Goldman Sachs. Moreover, some think that Trump will bring inflation.

• UK unemployment rate rose more than expected in September.

Worth checking: Rivian-Volkswagen joint venture increase deal to up to $5.8 billion, VW cars expected as early as 2027.

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📈 Stocks

S&P 500 5,983.99 (-0.29%)
DJIA 43,910.98 (-0.86%)
NASDAQ 19,281.40 (-0.090%)
BRENT CRUDE 71.89 (-0.01%)
* Prices as of Mar 3rd, 12:20 AM UTC

More earnings are here

Here are some companies that announced earnings yesterday:

SoftBank goes hard: Japanese conglomerate SoftBank reported a sharp rise in quarterly gains at its Vision Fund tech division for the second fiscal quarter ending September 30, following a return to profitability in the previous quarter. The increase was primarily driven by valuation gains in Vision Fund 1, thanks to rising share prices of companies like e-commerce platform Coupang and Chinese ride-hailing leader Didi Global, as well as higher valuations for its stake in Chinese tech firm ByteDance. Overall, the Vision Fund segment—which also accounts for administrative costs and gains and losses related to third-party investors—recorded a gain of 373.1 billion yen.

Shopify impresses: Shopify shares surged over 25% after the company reported stronger-than-expected third-quarter revenue and offered an upbeat forecast for the holiday season. The company reported earnings of 64 cents per share, with revenue reaching $2.16 billion, surpassing the expected $2.12 billion. The company also projected revenue growth in the mid- to high-twenties for the current quarter, beating Wall Street's forecast of 22.8%. Additionally, gross merchandise volume (GMV) rose 24% year over year to $69.7 billion, exceeding analysts' expectations of $68.1 billion.

Home Depot Reports: Home Depot posted quarterly earnings and revenue that beat estimates. Sales got a boost from the company’s acquisition of SRS Distribution, along with hurricane-related repairs and warmer than usual weather in much of the US. Still, the company said consumers are being cautious after a period of high interest and mortgage rates.

Spotify impresses: Spotify shares rose +6% in after-hours trading as the company’s fourth-quarter profit forecast surpassed expectations. The company reported earnings per share of €1.45, below the anticipated €1.72, and revenue of €3.99 billion, just shy of the €4.02 billion forecast. Monthly active users (MAUs) reached 640 million, slightly above the estimate of 639 million. Investors, however, focused on the upbeat fourth-quarter outlook. Spotify projects operating income of €481 million, ahead of the €432.7 million expected, and MAUs of 665 million, surpassing the projected 659.3 million. Despite positive user growth, the company’s revenue forecast of €4.1 billion falls short of the expected €4.26 billion. Premium subscriptions also grew 12% year over year, reaching 252 million, modestly exceeding estimates.

Rocket Lab flies: Rocket Lab reported strong third-quarter results and secured its first customer for the upcoming Neutron rocket. Third-quarter revenue rose 55% year-over-year to $104.8 million, compared to $67.6 million last year. However, net losses also grew, reaching $51.9 million, up from $40.6 million. For the fourth quarter, Rocket Lab expects revenue between $125 million and $135 million, which would bring its annual revenue to around $430 million at the midpoint. The company also announced its inaugural launch contract for the Neutron rocket.

23andMe out? 23andMe reported that second-quarter revenue fell to $44.1 million from $50 million a year earlier. The embattled genetics company said that it’s cutting about 200 jobs, or about 40% of its workforce, and discontinuing its therapeutics programs. Shares in the company are down 75% this year after losing more than half their value in 2023.

Boeing struggles: Boeing said it will take weeks before it can fully restart factories after a more than seven-week machinist strike. The manufacturer handed over 14 aircraft in October, the fewest since November 2020, during the pandemic and the tail end of a worldwide grounding of its bestselling 737 Max. Machinists are required to return to their jobs no later than Tuesday. The stock is down -42% YTD.

💵 Personal Finance

Financial benefits of having kids – part II

Let’s continue yesterday’s topic and talk more about the financial benefits of having kids:

Grants

A number of government and private organizations offer grants to families with children. Based on your location, you can get up to $20,000 to spend on your children and even more in some cases. For example, there are additional grants for people who raise children with special abilities.

Moreover, some of these grants are designed to help people buy a home. You will, however, have to meet eligibility requirements, i.e.: have a specific number of children, earn a specific amount of money, etc.

Free money

Some countries are now offering free money for having kids in an effort to improve birth rates. The list includes popular names like Germany, Japan, Russia, and Taiwan. However, these offers usually come with conditions. Also, we do not recommend you to have kids just to get paid.

Paid leaves

Based on your location, you might get paid maternity and paternity leaves that can run for up to 12 months. European nations, including Estonia, Croatia, and Bulgaria are known for offering gracious leaves – 68 to 62 weeks – to mothers. Similarly, countries like South Korea and Sweden offer long paid leaves to dads.

Family discounts

A large number of places, including entertainment avenues, hotels, and some airlines, offer family discounts.

These great benefits can help make kids more affordable. Still, we suggest that you watch this video to know if you’re financially prepared to have kids:

And, don’t forget to check our Budget Calculator to manage your budget, including kids budget. You can even use a tool like YNAB for budgeting, especially if you have kids.

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

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