Tesla, Meta, and Microsoft
Thursday, January 30th, 2024
World Events — Trump Goes to War On His Employees
The Economists
Donald Trump's first week as president has thrown the federal government into turmoil. Civil servants are in a state of panic, with many scrubbing their social media accounts for potentially disloyal content or updating their resumes in anticipation of job losses. Trump has launched an aggressive campaign to reshape the federal workforce, issuing executive orders that claim extensive authority over hiring, firing, and spending decisions in the executive branch. He has directly fired numerous senior staff, including immigration officials and Department of Justice prosecutors, often without following legal procedures. The administration has implemented a hiring freeze across most departments, reinstated an order allowing reclassification of career positions as political jobs, and banned remote work. An offer of "deferred resignation" was sent to all federal employees, encouraging them to leave their positions. These actions aim to remove employees perceived as disloyal to Trump and fundamentally alter the civil service system, potentially reverting to a "spoils system" of government. While legal challenges are expected, the immediate impact on government operations and employee morale is significant.
Tech — Tesla and FSD
Bloomberg
Tesla reassured investors with promises of growth and plans for robotaxi operations, despite missing analyst estimates for fourth-quarter profits. The company reported net income of $2.32 billion, or $0.66 per share, on revenue of $25.71 billion, falling short of expectations. However, Tesla's stock rose in after-hours trading as CEO Elon Musk outlined an optimistic future focused on autonomous vehicles and artificial intelligence. Musk announced plans to launch Tesla's autonomous ride-hailing service in Austin by June, with expansion to other cities by the end of 2025. The company also reaffirmed its commitment to producing more affordable vehicles, with production set to begin in the first half of 2025. Despite facing increased competition and experiencing its first annual sales decline in 2024, Tesla projected a return to growth in 2025, citing advancements in vehicle autonomy and new model plans. The company's focus on future technologies and Musk's prediction of an "epic" growth period appeared to overshadow the disappointing financial results.
Business — Meta and Microsoft Earning
Bloomberg
Meta Platforms Inc. shares rose after CEO Mark Zuckerberg predicted a "really big year" for the company's AI initiatives, despite a disappointing sales forecast for the current quarter. Zuckerberg expressed confidence that Meta's AI assistant would reach over 1 billion users by the end of 2025, becoming the industry's leading AI assistant. The company reported better-than-expected fourth-quarter sales of $48.4 billion, driven by strong advertising performance across its social networks. Meta plans to invest heavily in AI infrastructure, with expected capital expenditures of $60-65 billion for 2025. This ambitious AI strategy, coupled with the company's alignment with the new Trump administration, has boosted investor confidence despite concerns about the impact of recent content moderation changes on ad revenue.
Microsoft's shares fell up to 5% in after-hours trading following its fiscal second-quarter earnings report, despite beating analysts' expectations with earnings per share of $3.23 and revenue of $69.63 billion. The company's revenue guidance for the next quarter, projected at $67.7 billion to $68.7 billion, fell short of the $69.78 billion consensus, causing concern among investors. While Microsoft reported strong growth in its Intelligent Cloud segment, including a 31% increase in Azure cloud services revenue, it faces ongoing challenges with cloud capacity constraints and execution issues. CEO Satya Nadella highlighted the company's progress in AI, noting a $13 billion annualized revenue run rate for AI-related services. However, the slower-than-expected Azure growth and potential sales function restructuring to address market conditions have contributed to the stock's decline.
Health — Skin Care
Healthline
Skin care is a personalized journey that requires understanding your unique skin type and implementing a targeted daily routine. The fundamental approach involves four key steps: thorough cleansing to remove dirt and impurities, applying targeted serums with active ingredients, moisturizing to maintain hydration and skin barrier health, and protecting with broad-spectrum sunscreen to prevent UV damage. Different skin types—whether oily, dry, combination, sensitive, or normal—require specific product selections and approaches, with common concerns like acne, hyperpigmentation, and aging addressable through scientifically-backed ingredients such as salicylic acid, vitamin C, retinol, and niacinamide. While over-the-counter products can effectively manage many skin issues, persistent or severe problems warrant professional consultation with a dermatologist who can provide personalized treatment strategies and potentially prescribe medical-grade interventions.
Smoothie Bar — Almond Milk Smoothie
Song Rec — All Out of Love (Air Supply)
Quote of the Day
“One’s only rival is one’s own personalities. One’s only failure is failing to live up to one’s own possibilities.” — Abraham Maslow
enjoy your thursday!!