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Market Moves Yesterday

S&P 500 @ 5,949.17 ( ⬇️ 0.60%)

Nasdaq Composite @ 19,107.65 ( ⬇️ 0.64%)

Bitcoin @ $87,946.61 ( ⬇️ 1.04%)

Hey Scoopers,

Happy Friday! Are you ready for an exciting newsletter?

👉 Disney beats estimates

👉 Hims & Hers spirals downwards

👉 Berkshire eyes Domino’s

So, let’s go 🚀

Market Wrap

U.S. stocks slid yesterday as Federal Reserve Chair Jerome Powell signaled that a strong economy could warrant some patience with future rate cuts.

All three major indices moved lower after the October producer price index rose 0.2%, which was in line with estimates. The core consumer price index rose by 0.3% for a third consecutive month, with the 12-month rate at 3.3%.

Investors are deliberating whether a postelection rally following Donald Trump’s decisive victory has room to run after powering major indices to reach new milestones in recent trading sessions.

Shares of EV makers Rivian Automotive and Tesla led the sell-off after a report claimed that the Trump administration plans to kill the $7,500 consumer tax credit for purchases of battery-powered vehicles.

Trending Stocks 🔥

Applied Materials - The semiconductor equipment manufacturer slid over 5% in pre-market after posting a weaker-than-anticipated revenue outlook for the current quarter.

Palantir Technologies - The defense tech company is up 3.5% in pre-market after announcing it will transfer its stock exchange listing from the NYSE to the Nasdaq.

Capri, Tapestry - Both luxury apparel stocks rose after the companies called off their planned merger, citing regulatory hurdles.

Disney Stock Surges Over 6%

Disney reported its fiscal Q4 earnings (ended in September) yesterday, narrowly beating consensus estimates as streaming growth propelled its entertainment segment.

In Q4, Disney reported:

👉 Revenue of $22.57 billion vs. estimates of $22.45 billion

👉 Earnings per share of $1.14 vs. estimates of $1.10

Disney’s sales increased by 6% while operating income grew by 23% to $3.66 billion due to the company’s focus on cost savings.

It has forecast fiscal 2025 earnings to grow by high-single-digits year over year and expects double-digit EPS growth in fiscal 2026 and 2027.

Here are some key numbers for Disney in fiscal Q4:

• Revenue for the entertainment segment rose 14% to $10.83 billion after a hot summer at the box office.

• It was the first film studio to cross $4 billion globally in 2024.

• Its streaming business reported an operating income of $321 million in Q4, compared to a $387 million loss last year.

Amazon Gains On Health Expansion

Yesterday, Amazon announced that its Prime members could access new fixed pricing for treating conditions such as men’s hair loss and erectile dysfunction, as the tech giant aims to compete with direct-to-consumer marketplaces such as Hims & Health.

Shares of Hime & Hers tumbled over 24%, its worst day on record, as Amazon announced members could view the cost of a telehealth visit and their treatment before deciding to proceed.

Amazon acquired One Medical for $3.9 billion in July 2022, and the recent announcement builds on its existing pay-per-visit telehealth offering.

Moreover, users can get treatment for more than 30 common conditions, including sinus infection and pink eye.

Bank of America downgraded shares of Hims & Hers to “underperform” from “buy,” citing Amazon’s push into the verticals mentioned above. According to BoA, Hims & Hers generates gross margins of over 80% from these product offerings.

Amazon’s massive cash pile allows it to offer these medications at a much lower rate, enabling the e-commerce giant to gain market share. With roughly 150 million Prime members, Amazon already has a highly engaged user base it can monetize with its healthcare offerings.

Berkshire Invests In Domino’s Pizza

Warren Buffett’s Berkshire Hathaway took stakes in Domino’s Pizza and swimming pool supplier Pool Corp. in Q3 while continuing to trim positions in blue chips such as Apple and Bank of America.

Recent regulatory filings show Buffett continues to be a net seller of stocks as Berkshire ended Q3 with $325 billion in cash, up from $277 billion in Q2.

Buffett reduced his stake in Apple by 25% in Q3. In fact, Berkshire now holds $70 billion worth of Apple stock, down from $175 billion at the start of 2024. Apple remains the largest holding in Berkshire’s equity portfolio, worth $266 billion.

Berkshire acquired 1.3 million shares of Domino’s Pizza worth $550 million. The conglomerate also invested $152 million in Pool Corp.

Interestingly, the Oracle of Omaha slashed his stake in cosmetics chain Ulta Beauty selling 95% of his holdings after entering the position in Q2.

Buffett also lowered stakes in Capital One, Charter Communications, and Nu Holdings. Aerospace firm Heico was the only existing position that Buffett added to in Q3, buying $200 million worth of company stock.

VaultCraft launches V2, TVL skyrockets above $100M

VaultCraft launches V2, partners with Safe, and secures $100M+ in Bitcoin

• Matrixport, Asia’s leading crypto providers, commits $100M+ in Bitcoin

• OKX Web3 to launch Safe Smart Vaults with $250K+ in rewards

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Headlines You Can't Miss!

China's October retail sales beat estimates

Japan's GDP expands by 0.3% in Q3

Burberry reveals massive overhaul, stock surges

Disney to launch its first cruise in Asia

U.S. ETF inflows touch $4.7 billion in six days

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DISCLAIMER: None of this is financial advice. The newsletter is strictly educational and is not investment advice or a solicitation to buy or sell assets or make financial decisions. Please be careful and do your own research.