American Airlines Group Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAL#NASDAQ">AAL</a>) stock plunged after the company reported <a target="_blank" href="https://www.benzinga.com//node/43155792" rel="noreferrer noopener">fourth-quarter 2024 results and weak outlook.</a>



The airline&#8217;s operating revenue grew 4.6% year-over-year to $13.66 billion, beating the consensus of $13.395 billion. The revenue increase was fueled by capacity adjustments and demand strength.



The adjusted operating margin stood at 8.4% compared to 5.1% a year ago. The company reported adjusted EPS of $0.86, up from $0.29 a year ago, <a target="_blank" href="https://www.benzinga.com/earnings" rel="noreferrer noopener">above the consensus of $0.64.</a>



The company generated an operating cash flow of $3.983 billion for fiscal 2024, up from $3.803 billion a year ago, and a free cash flow of ~$2.201 billion. The company ended the year with $10.3 billion in available liquidity.



In the&nbsp;fourth quarter&nbsp;of 2024, American Airlines met its $15 billion debt reduction target from mid-2021 peak levels, achieving the goal a year earlier than planned.



Revenue passenger miles increased by 4.0%, Available seat miles were up by 2.5%, and the passenger load factor for the quarter was 84.9% compared to 83.6% in the same quarter last year.



The average aircraft fuel price, including related taxes (dollars per gallon), fell 23.5% YoY to $2.34, and the operating cost per ASM reduced by 1.5%.



Related: <a target="_blank" href="https://www.benzinga.com/general/travel/25/01/43140360/american-airlines-charts-are-bullish-can-q4-earnings-keep-the-altitude" rel="noreferrer noopener">American Airlines Charts Are Bullish: Can Q4 Earnings Keep The Altitude?</a>



During the quarter, American Airlines announced an exclusive 10-year co-branded credit card partnership with Citi, aimed at providing enhanced value for AAdvantage and Citi-branded cardholders.



&#8220;We continue to run a reliable operation, and we are reengineering the business to build an even more efficient airline. That, coupled with our commercial actions, resulted in strong financial performance in the fourth quarter. As we look ahead to this year, American remains well-positioned because of the strength of our network, loyalty and co-branded credit card programs, fleet and operational reliability, and the tremendous work of our team,&#8221; commented American&#8217;s CEO&nbsp;Robert Isom.



Q1 Guidance: American Airlines expects adjusted EPS loss to be between $0.20 to $0.40 versus a $0.04 loss estimate and adjusted operating margin of ~ flat to 1%.



AAL expects first-quarter revenue to increase 3%- 5% year over year and total capacity to be ~flat to -2%.



2025 Guidance: American Airlines expects an adjusted EPS of $1.70 to $2.70 versus the consensus of $2.42. It <a href="https://www.benzinga.com/calendars/guidance">expects revenue growth of 4.5% to 7.5%.</a>



Price Action: AAL shares are trading lower by 5.57% at $17.62 premarket at the last check Thursday.



Photo via Shutterstock.

Earnings

Equities

Large Cap

News

Guidance

Movers

American Airlines Q4: Earnings Beat, Debt Milestone, Lackluster Guidance And More

GE Aerospace (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GE#NYSE">GE</a>)&nbsp;shares are trading higher premarket on Thursday after it reported&nbsp;fourth-quarter&nbsp;adjusted revenue growth of&nbsp;16%&nbsp;year-over-year to&nbsp;$9.879 billion&nbsp;and GAAP revenue of&nbsp;$10.812 <a target="_blank" href="https://www.geaerospace.com/sites/default/files/geaerospace_webcast_pressrelease_01232025.pdf" rel="noreferrer noopener">billion</a>. The analyst consensus was&nbsp;$9.604 billion.



<figure class="wp-block-image"><img decoding="async" src="blob:https://editorial.benzinga.com/5bc3d4f8-2670-4423-8838-53d700322ea0" alt=""/></figure>



Commercial Engines &amp; Services&nbsp;revenue was $7.650 billion&nbsp;(+19%&nbsp;Y/Y) and Defense &amp; Propulsion Technologies&nbsp;revenue totaled $2.523 billion&nbsp;(+4%&nbsp;Y/Y).



Total orders increased&nbsp;46%&nbsp;Y/Y to&nbsp;$15.5 billion, with Commercial Engines &amp; Services&nbsp;+50% Y/Y&nbsp;and Defense &amp; Propulsion Technologies&nbsp;+22% Y/Y.



GE Aerospace&#8217;s adjusted operating profit margin expanded 450 bps to&nbsp;20.1%, with an adjusted operating profit of&nbsp;$1.988 billion, up&nbsp;49%&nbsp;in the quarter.



Adjusted EPS for the quarter was&nbsp;$1.32 (+103%&nbsp;Y/Y), <a target="_blank" href="https://www.benzinga.com/earnings" rel="noreferrer noopener">beating the consensus of&nbsp;$1.04</a>.



GE Aerospace&#8217;s cash from operating activities for the fiscal year stood at&nbsp;$5.8 billion&nbsp;(+26%), while adjusted free cash flow rose&nbsp;28%.



The company repurchased shares worth more than $6&nbsp;billion in 2024. Also, it disclosed share repurchase plans of $7 billion in 2025, while raising the dividend by 30%, subject to Board approval.



2025 Guidance: GE Aerospace&nbsp;expects adjusted revenue growth in the low double digits and adjusted EPS of&nbsp;$5.10 &#8211; 5.45<a target="_blank" href="https://www.benzinga.com/calendars/guidance" rel="noreferrer noopener"> vs. the&nbsp;$5.22&nbsp;consensus</a>.



The company expects adjusted operating profit of&nbsp;$7.8 billion&nbsp;–&nbsp;$8.2 billion&nbsp;and adjusted Free Cash Flow of&nbsp;$6.3 billion&nbsp;–&nbsp;$6.8 billion.



GE Aerospace Chairman and CEO H. Lawrence Culp, Jr. said, &#8220;Looking to 2025, we expect double-digit revenue and EPS growth with greater than 100% free cash flow conversion. Guided by FLIGHT DECK, our proprietary lean operating model, I&#8217;m confident in our ability to accelerate output and deliver for our customers.&#8221;



Investors can gain exposure to the stock via&nbsp;TCW Transform Systems ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NETZ#NYSE">NETZ</a>)and&nbsp;iShares U.S. Aerospace &amp; Defense ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/ITA#BATS">ITA</a>).



Price Action: GE shares are up 8.04% at $203.51 premarket at the last check Thursday.



Read Next:



<ul>
<li><a href="https://www.benzinga.com/25/01/43152748/sp-500-hits-new-record-fear-among-us-investors-eases-but-fear-greed-index-remains-in-fear-zone" target="_blank" rel="noreferrer noopener">S&amp;P 500 Hits New Record As Netflix Reports Strong Results: Investor Sentiment Improves But Greed Index Remains In &#8216;Fear&#8217; Zone</a></li>
</ul>



Photo: Jonathan Weiss/Shutterstock.com

Dividends

Buybacks

NETZ

GE Aerospace Q4 Earnings: EPS Beat, Dividend And Stock Buyback Hike, Strong FY25 Outlook And More

Shares of Rivian Automotive Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RIVN#NASDAQ">RIVN</a>) and Lucid Group Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LCID#NASDAQ">LCID</a>) have declined sharply following President Donald Trump&#8217;s announcement of significant electric vehicle <a href="https://www.benzinga.com/trading-ideas/25/01/43116755/trumps-plan-to-end-7500-ev-tax-credits-could-be-devastating-for-telsa-rivals-poll-says-could-be-bullish-for-elon-musks-company">policy changes</a>. Technical analysis of these companies reflects a bleak picture for the stocks in the near term.



What Happened: According to <a href="https://pro.benzinga.com/dashboard">Benzinga Pro</a>, shares of Rivian fell by 10.93% and Lucid Group slid 12.70% over the last two trading sessions after Trump signed executive orders related to EV policies on his first day in office.



<figure class="wp-block-image size-large"><a href="https://pro.benzinga.com/dashboard"><img loading="lazy" decoding="async" width="1024" height="576" src="https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/23044559/RIVN-LICD-TWO-DAY-1024x576.png" alt="" class="wp-image-746424" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/23044559/RIVN-LICD-TWO-DAY-1024x576.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/23044559/RIVN-LICD-TWO-DAY-300x169.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/23044559/RIVN-LICD-TWO-DAY-768x432.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/23044559/RIVN-LICD-TWO-DAY-1536x864.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/23044559/RIVN-LICD-TWO-DAY.png 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /></a></figure>



The stocks of these EV makers have been under pressure over the speculation of Trump&#8217;s reversal of the tax credit worth $7,500.



According to the technical analysis of daily moving averages from <a href="https://pro.benzinga.com/dashboard">Benzinga Pro</a>, Rivian&#8217;s stock is under short-term pressure with longer-term support. Whereas, Lucid&#8217;s stock is undergoing a period of consolidation. 



<h4 class="wp-block-heading">Rivian Automotive</h4>



RIVN's shares closed at $12.69 apiece on Wednesday and it was below its eight-day simple moving average of $13.66 and its 20-day average of $14 apiece. It was also below its 50-day simple moving average of $12.82.



The stock was above its 200-day simple moving average of $12.28, suggesting support at this level in the longer term.



On the other hand, the relative strength index of 43.52 suggested that the stock is in a neutral zone.



<figure class="wp-block-image size-large"><a href="https://pro.benzinga.com/dashboard"><img loading="lazy" decoding="async" width="1024" height="576" src="https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/23035530/RIVN-Tech-chart-1024x576.png" alt="" class="wp-image-746364" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/23035530/RIVN-Tech-chart-1024x576.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/23035530/RIVN-Tech-chart-300x169.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/23035530/RIVN-Tech-chart-768x432.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/23035530/RIVN-Tech-chart-1536x864.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/23035530/RIVN-Tech-chart.png 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /></a></figure>



<h4 class="wp-block-heading">Lucid Group</h4>



LCID's shares closed at $2.67 apiece on Wednesday and it was below its eight-day simple moving average of $2.96 and its 20-day average of $3.08 apiece. The 200-day simple moving average was also above the share price at $2.93, signaling a bearish trend.



However, the stock was above its 50-day simple moving average of $2.59 acting as a support. Thus, suggesting a phase of consolidation.



On the other hand, the relative strength index of 41.69 indicates that the stock is in a neutral zone.



<figure class="wp-block-image size-large"><a href="https://pro.benzinga.com/dashboard"><img loading="lazy" decoding="async" width="1024" height="576" src="https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/23035549/LICD-Tech-Chart-1024x576.png" alt="" class="wp-image-746365" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/23035549/LICD-Tech-Chart-1024x576.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/23035549/LICD-Tech-Chart-300x169.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/23035549/LICD-Tech-Chart-768x432.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/23035549/LICD-Tech-Chart-1536x864.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/23035549/LICD-Tech-Chart.png 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /></a></figure>



See Also: <a href="https://www.benzinga.com/trading-ideas/25/01/43116755/trumps-plan-to-end-7500-ev-tax-credits-could-be-devastating-for-telsa-rivals-poll-says-could-be-bullish-for-elon-musks-company">Trump&#8217;s Plan To End $7,500 EV Tax Credits Could Be &#8216;Devastating&#8217; For Telsa Rivals, Poll Says Could Be Bullish For Elon Musk&#8217;s Company</a>



Why It Matters: After his swearing-in ceremony, Trump&#8217;s <a href="https://www.benzinga.com/trading-ideas/25/01/43116755/trumps-plan-to-end-7500-ev-tax-credits-could-be-devastating-for-telsa-rivals-poll-says-could-be-bullish-for-elon-musks-company">executive order</a> canceled the target set by Joe Biden in 2021, mandating 50% of EV sales in the U.S. by 2030.



President Trump also halted unspent funds from a $5 billion EV charging infrastructure program. The administration will also reassess emissions rules requiring automakers to sell 30% to 56% electric vehicles by 2032. Additionally, Trump plans to challenge California&#8217;s zero-emission vehicle mandate, also adopted by 11 other states.



Tesla Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) CEO Elon Musk, a major Trump supporter and the world&#8217;s richest person, in an X post dated July 16, 2024, said, &#8220;Take away the subsidies. It will only help Tesla.&#8221;



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">Take away the subsidies. It will only help Tesla. Also, remove subsidies from all industries!&mdash; Elon Musk (@elonmusk) <a href="https://twitter.com/elonmusk/status/1813112958157005259?ref_src=twsrc%5Etfw">July 16, 2024</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Following this, during a post-earnings call, when Tesla reported its lowest profit margin in over five years. Musk said, &#8220;It would be devastating for our competitors and hurt Tesla slightly, but long-term, it would probably actually help Tesla.&#8221;



For Rivian, known for electric trucks, SUVs, and delivery vans, the potential repeal of tax credits and reduced EV infrastructure funding could hurt demand for its premium vehicles. Lucid, another emerging <a href="https://www.benzinga.com/trading-ideas/movers/25/01/43113872/rivian-lucid-shares-are-falling-today-whats-going-on">EV brand</a>, faces similar challenges with reduced government incentives and infrastructure support, both key to its growth.



In premarket on Thursday, RIVN was down 0.39% and LCID fell by 1.50%.



Read Next:



<ul>
<li><a href="https://www.benzinga.com/news/management/25/01/43073354/warren-buffett-openly-called-bitcoin-a-rat-poison-in-2018-7-years-later-he-is-invested-in-this-crypto-linked-stock-which-soared-27-in-2024">Warren Buffett Openly Called Bitcoin A &#8216;Rat Poison&#8217; In 2018. 7 Years Later, He Is Invested In This Crypto-Linked Stock Which Soared 27% In 2024 </a></li>
</ul>



Photo courtesy: Rivian

Market Summary

Technicals

Markets

Trading Ideas

General

LCID

RIVN

TSLA

Tesla Rivals Rivian, Lucid Fall Sharply After Donald Trump Revokes Biden's EV Targets, Freezes Infra Funding: Here's What Technical Analysis Says

U.S. stock futures were mixed on Thursday following Wednesday's rally. Futures of benchmark indices were lower except Dow Jones, which was marginally higher in premarket trade.



After being propelled to the brink of a record closing high on Wednesday the S&amp;P 500 index was poised to open lower according to futures.



The 10-year Treasury note yielded 4.63%, while the two-year note yielded 4.30%. The CME Group's FedWatch <a href="https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html">tool</a> indicated a strong 99.5% probability that the Federal Reserve will hold interest rates steady at its upcoming meeting on Jan. 31, 2025.



<figure class="wp-block-table is-style-stripes"><table style="overflow:auto; height: 90px; display: block;"><tbody><tr><td>Futures</td><td>Change (+/-)</td></tr><tr><td>Nasdaq 100</td><td>-0.52%</td></tr><tr><td>S&amp;P 500</td><td>-0.20%</td></tr><tr><td>Dow Jones</td><td>0.02%</td></tr><tr><td>Russell 2000</td><td>-0.19%</td></tr></tbody></table></figure>



The SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) and Invesco QQQ Trust ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) both experienced negative premarket trading on Thursday. SPY fell 0.17% to $605.39, and QQQ declined 0.53% to $528.71, according to <a href="https://pro.benzinga.com/dashboard">Benzinga Pro</a> data.



Cues From The Last Session



U.S. stocks <a href="https://www.benzinga.com/25/01/43152748/sp-500-hits-new-record-fear-among-us-investors-eases-but-fear-greed-index-remains-in-fear-zone">rallied </a>on Wednesday, with the S&amp;P 500 reaching a new all-time high, intraday.



Netflix Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NFLX#NASDAQ">NFLX</a>) and Procter &amp; Gamble Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PG#NYSE">PG</a>) both reported better-than-expected financial results, boosting market sentiment. Abbott Laboratories (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ABT#NYSE">ABT</a>), however, missed revenue expectations.



On the economic front, the U.S. mortgage applications saw a slight increase, but this had a limited impact on market movement.



While most sectors experienced declines, particularly utilities, real estate, and energy sectors fell the most. However, technology and communication services led gains.



<figure class="wp-block-table is-style-stripes"><table style="overflow:auto; height: 90px; display: block;"><tbody><tr><td>Index</td><td>Performance (+/-)</td><td>Value</td></tr><tr><td>Nasdaq Composite</td><td>1.28%</td><td>20,009.34</td></tr><tr><td>S&amp;P 500</td><td>0.61%</td><td>6,086.37</td></tr><tr><td>Dow Jones</td><td>0.30%</td><td>44,156.73</td></tr><tr><td>Russell 2000</td><td>-0.61%</td><td>2,303.72</td></tr></tbody></table></figure>



Insights From Analysts



The performance of the &#8216;Magnificent 7&#8217; companies will drive corporate earnings growth, according to the analysts at BlackRock because these firms possess robust balance sheets, significant cash reserves, and negative net debt, enhancing their resilience to rising interest rates.



&#8220;Even in a higher-rate environment, we still think stocks can keep pushing higher as long as fundamentals stay strong,&#8221; the note stated.



BlackRock&#8217;s current stance remains risk-on as it anticipates the broadening of the AI beneficiary pool. However, it will monitor for potential triggers that may necessitate a shift in investment strategy.



According to Jason Goepfert, consultant at White Oak Consultancy and the founder of SentimenTrader, the S&amp;P 500 index was headed toward a rebound from a two-month low to a record high in just seven sessions on Wednesday. However, it didn&#8217;t close at a fresh record.



If the S&amp;P 500 hits a new record high in Thursday&#8217;s session, it will be its second fastest rebound over eight sessions, with the first quickest rebound recorded on June 24, 1998.



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">Just barely missed yet another 97-year record in the S&amp;P 500. It was on track to cycle from a 2-month low to record high in only 7 sessions. If it does so tomorrow (8 sessions), the only date that had a quicker rebound was Jun 24, 1998.&mdash; Jason Goepfert (@jasongoepfert) <a href="https://twitter.com/jasongoepfert/status/1882172063668166940?ref_src=twsrc%5Etfw">January 22, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



See Also: <a href="https://www.benzinga.com/money/how-to-trade-futures">How to Trade Futures</a> 



Upcoming Economic Data



Here&#8217;s what investors will keep an eye on for the rest of the week:



<ul>
<li>On Thursday, initial jobless claims data till Jan. 18, will be released at 8:30 a.m. ET.</li>
</ul>



<ul>
<li>On Friday, S&amp;P flash services PMI and manufacturing PMI will be released at 9:45 a.m. ET.</li>
</ul>



<ul>
<li>Existing home sales for December and consumer sentiment data for January will be released at 10 a.m., ET.</li>
</ul>



Stocks In Focus:



<ul>
<li>GE Aerospace (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GE#NYSE">GE</a>) was up 13.03% in premarket on Thursday ahead of its earnings before the opening bell. Analysts expect it to report quarterly earnings of $1.04 per share on revenue of $9.60 billion.</li>
</ul>



<ul>
<li>American Airlines Group Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAL#NASDAQ">AAL</a>) was up 0.75% as Wall Street expects it to report quarterly earnings of 64 cents per share on revenue of $13.40 billion before the opening bell.</li>
</ul>



<ul>
<li>Union Pacific Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UNP#NYSE">UNP</a>) was up 0.29% ahead of its earnings before the opening bell. Analysts expect it to report quarterly earnings of $2.78 per share on revenue of $6.14 billion.</li>
</ul>



<ul>
<li>Plexus Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PLXS#NASDAQ">PLXS</a>) was down 11.43% after it reported lower-than-expected first-quarter sales results and issued second-quarter revenue guidance below estimates.</li>
</ul>



<ul>
<li>Knight-Swift Transportation Holdings Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KNX#NYSE">KNX</a>) was up 5.45% in premarket as it posted better-than-expected fourth-quarter adjusted earnings results.</li>
</ul>



<ul>
<li>Vince Holding Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VNCE#NYSE">VNCE</a>) was up 47.23% as P180 acquired Sun Capital's majority stake in the company. Brendan Hoffman is expected to become CEO effective Feb. 3, replacing interim CEO David Stefko, who will remain on the board.</li>
</ul>



Commodities, Gold And Global Equity Markets:



Crude oil futures were trading lower in the early New York session by 0.13% to hover around $75.34 per barrel.



The gold spot index was down by 0.53% to $2,756.26 per ounce. The Dollar Index was up 0.01% at 108.20 level.



Asian markets closed mixed on Thursday as Hong Kong's Hang Seng, Australia's ASX 200, and South Korea's Kospi index fell. Whereas, China's CSI 300, and Japan's Nikkei 225 index rose. European markets were also mixed.



Read Next:



<ul>
<li><a href="https://www.benzinga.com/news/management/25/01/43073354/warren-buffett-openly-called-bitcoin-a-rat-poison-in-2018-7-years-later-he-is-invested-in-this-crypto-linked-stock-which-soared-27-in-2024">Warren Buffett Openly Called Bitcoin A &#8216;Rat Poison&#8217; In 2018. 7 Years Later, He Is Invested In This Crypto-Linked Stock Which Soared 27% In 2024</a></li>
</ul>



Photo courtesy: Shutterstock

Analyst Color

Futures

Pre-Market Outlook

NFLX

PLXS

VNCE

US Stock Futures Trade Mixed After Skirting Record Highs In Last Session: GE Aerospace, American Airlines, Union Pacific In Focus

Leading cryptocurrencies dipped on Wednesday, diverging with the stock market rally, as the market expects more from the new Donald Trump administration.



<figure class="wp-block-table"><table style="overflow:auto; height: 90px; display: block;"><tbody><tr><td>Cryptocurrency</td><td>Gains +/-</td><td>Price (Recorded at 7:30 p.m. ET)</td></tr><tr><td>Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>)</td><td>-2.33%</td><td>$103,392.39</td></tr><tr><td>Ethereum (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/eth/usd">ETH</a>) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td><td>-2.13%</td><td>$3,255.66</td></tr><tr><td>Dogecoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/doge/usd">DOGE</a>)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td><td>-1.94%</td><td>$0.3612</td></tr></tbody></table></figure>



What Happened: Bitcoin steadily fell from the highs of $107,000 tapped the day before. The top cryptocurrency hit an intraday low of $102,561 overnight.



Ethereum followed a similar trajectory, losing more than 2% of its value in the last 24 hours. The second-largest cryptocurrency has suffered losses of more than 5% over the week.



Though the SEC under acting Chairman Mark Uyeda launched a<a href="https://www.benzinga.com/top-stories/25/01/43110946/sec-launches-crypto-task-force-to-establish-clear-regulatory-framework"> dedicated cryptocurrency task force</a> to frame regulations for the industry, investors have been left disappointed due to no cryptocurrency-related executive orders from Trump thus far.



In the past 24 hours, 96,027 traders were liquidated, with total liquidations at $185.56 million. Upside bets worth $133.52 million were wiped out.



Long liquidations likely caused Bitcoin's Open Interest to slip by 3.06% in the last 24 hours.



That said, a rebound to $107,000 could liquidate nearly $565 million worth of short positions.



The market sentiment cooled from "Extreme Greed" to "Greed" over the last 24 hours, according to the Crypto Fear &amp; Greed Index.



Top Gainers (24-Hours)



<figure class="wp-block-table"><table style="overflow:auto; height: 90px; display: block;"><tbody><tr><td>Cryptocurrency</td><td>Gains +/-</td><td>Price (Recorded at 7:30 p.m. ET)</td></tr><tr><td>XDC Network (XDC)</td><td>+14.13%</td><td>$0.1318</td></tr><tr><td>Worldcoin (WLD)</td><td>+8.21%</td><td>$2.28</td></tr><tr><td>Pudgy Penguins (PENGU)</td><td>+5.10%</td><td>$0.02501</td></tr></tbody></table></figure>



The global cryptocurrency market capitalization stood at $3.62 trillion, expanding by 3.62% in the last 24 hours.



Stocks surged for the second straight trading day of the week. The Dow Jones Industrial Average jumped 130.92 points, or 0.30%, to close at 44,156.73. The S&amp;P 500 lifted 0.61%, ending at&nbsp; 6,086.37, just below its record closing highs. The tech-heavy Nasdaq Composite gained 1.28% to close at 20,009.34.



Artificial intelligence players, including Nvidia Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>), surged as President Donald Trump announced a $500 billion initiative <a href="https://www.benzinga.com/etfs/sector-etfs/25/01/43135764/trumps-500-billion-stargate-ai-plan-puts-3-etfs-in-focus">to bolster the industry</a> in the U.S. Nvidia rallied 4.43% during Wednesday's session.



See More: <a href="https://www.benzinga.com/money/best-crypto-scanners">Best Cryptocurrency Scanners</a>



Analyst Notes: Widely followed cryptocurrency technical analyst Rekt Capital noted that Bitcoin likely entered a re-accumulation phase before trend continuation to new all-time highs.



"The last time Bitcoin experienced re-accumulation was in the post-halving re-accumulation phase. Bitcoin rallied +46% upon breakout from that phase," the analyst added.



A similar move could propel the apex cryptocurrency to nearly $150,000, Rekt Capital projected.



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true"><a href="https://twitter.com/hashtag/BTC?src=hash&amp;ref_src=twsrc%5Etfw">#BTC</a> Bitcoin is likely experiencing another Re-Accumulation period before trend continuation to new All Time Highs The last time Bitcoin experienced Re-Accumulation was in the Post-Halving Re-Accumulation phase Bitcoin rallied +46% upon breakout from that phase If Bitcoin is… <a href="https://t.co/66cu6CjZmS">pic.twitter.com/66cu6CjZmS</a>&mdash; Rekt Capital (@rektcapital) <a href="https://twitter.com/rektcapital/status/1882105114707587223?ref_src=twsrc%5Etfw">January 22, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Popular cryptocurrency trader Michaël van de Poppe made optimistic predictions for Ethereum, owing to <a href="https://www.benzinga.com/25/01/43088676/trump-backed-world-liberty-financial-bags-47-million-each-of-ethereum-wrapped-bitcoin-to-honor-the-new-president">large purchases</a> by World Liberty Financial, a decentralized finance platform backed by Trump.



"The fact that World Liberty has been buying so much ETH makes me more bullish on that particular asset," he said. "I think it&#8217;s going to start and make a great revival through 2025."



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">The fact that World Liberty has been buying so much <a href="https://twitter.com/search?q=%24ETH&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$ETH</a> makes me more bullish on that particular asset. I don&#39;t think <a href="https://twitter.com/search?q=%24ETH&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$ETH</a> is the <a href="https://twitter.com/search?q=%24ADA&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$ADA</a> of this cycle. I think it&#39;s going to start and make a great revival through 2025.&mdash; Michaël van de Poppe (@CryptoMichNL) <a href="https://twitter.com/CryptoMichNL/status/1882078516847538192?ref_src=twsrc%5Etfw">January 22, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Photo by Avi Rozen on Shutterstock



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Bitcoin, Ethereum, Dogecoin Drop Amid Stock Rally, Cooling Investor Sentiment On Trump: Analyst Projects BTC At $150K If History Repeats

Gary Black has credited Netflix Inc.'s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NFLX#NASDAQ">NFLX</a>) <a href="https://www.benzinga.com/news/earnings/25/01/43114866/netflix-q4-earnings-record-subscribers-nfl-squid-game-push-past-highest-expectations">fourth-quarter performance</a> to its live sports strategy, original content, and price hike that saw minimal customer attrition.



What Happened: The Future Fund LLC managing partner took to X on Wednesday and highlighted Netflix's ability to attract massive audiences with its live sports and entertainment offerings.



&#8220;$NFLX (+10.5% AH) crushed 4Q net streaming adds (+18.9M vs +9.2M est) behind the strength of live sports and Squid Games 2,&#8221; he stated.



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true"><a href="https://twitter.com/search?q=%24NFLX&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$NFLX</a> (+10.5% AH) crushed 4Q net streaming adds (+18.9M vs +9.2M est) behind the strength of live sports and Squid Games 2. 2025/1Q Rev and EPS guides light vs ests. 4Q: &#8211; Revs $10.25B vs $10.11B est &#8211; EPS $4.27 vs $4.18 est &#8211; Paid members 301.6M vs 290.9M 1Q guide: &#8211; Rev…&mdash; Gary Black (@garyblack00) <a href="https://twitter.com/garyblack00/status/1881813710328443019?ref_src=twsrc%5Etfw">January 21, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



See Also: <a href="https://www.benzinga.com/news/global/25/01/43088582/gary-black-questions-elon-musks-take-on-ev-credit-removal-after-tesla-sales-drop-in-europe-not-sure-how-the-math-works">Gary Black Questions Elon Musk&#8217;s Take On EV Credit Removal After Tesla Sales Drop In Europe: &#8216;Not Sure How The Math Works&#8217;</a>



Black noted that the Mile Tyson&#8211;Jake Paul fight and Beyoncé's Christmas show as pivotal in delivering 18.9 million net subscriber adds, more than double the expected 9.2 million.



"When you have 65 million people go to Netflix for the Tyson-Paul fight and 25 million for Beyoncé&#8217;s halftime show, it was clear Netflix was going to get huge net subscriber adds," Black said.



The prominent investor also pointed out that Netflix's 14% price increase contributed significantly to its revenue growth while maintaining low customer attrition.



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">When you have 65M people go to <a href="https://twitter.com/search?q=%24NFLX&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$NFLX</a> for Mike Tyson-Jake Paul fight, and 25M people for Beyonce halftime show on Christmas, it was clear NFLX was going to get huge net subscriber adds (+18.9M vs +9.2M exp). Add to that a +14% avg price increase with very low attrition, and it's…&mdash; Gary Black (@garyblack00) <a href="https://twitter.com/garyblack00/status/1882062783635722505?ref_src=twsrc%5Etfw">January 22, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Why It Matters: Netflix&#8217;s fourth-quarter results have been described as one of the best in the company&#8217;s history.



The streaming giant brought its total paid memberships to 301.63 million compared to 290.9 million estimated. It also reported $10.25 billion in revenue, beating the expected $10.11 billion, and an EPS of $4.27, exceeding the projected $4.19.&nbsp;



However, Netflix's first-quarter 2025 guidance slightly missed expectations, with forecasted revenue of $10.42 billion (vs. $10.48 billion expected) and EPS of $5.58 (vs. $6.01 expected).



Analysts have <a href="https://www.benzinga.com/general/entertainment/25/01/43136402/netflix-stock-firing-on-all-cylinders-10-analysts-react-to-q4-beat-guidance-price-increases">adjusted their price targets</a> for Netflix, with Macquarie analyst Tim Nollen raising the target from $965 to $1,150, and KeyBanc analyst Justin Patterson increasing it from $1,000 to $1,100.



Netflix has also surpassed the <a href="https://www.benzinga.com/general/education/25/01/43145703/netflix-worth-more-than-disney-paramount-comcast-fox-combined">combined market cap</a> of entertainment giants like Walt Disney Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIS#NYSE">DIS</a>), Paramount Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PARA#NASDAQ">PARA</a>) and Comcast Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CMCSA#NASDAQ">CMCSA</a>).



Price Action: Black predicted a 20% upside for Netflix on Wednesday. During regular trading, the stock gained 9.69%, though it edged down 0.49% in after-hours trading.



Despite the slight after-hours dip, NFLX has delivered impressive gains this year, rising 7.59% year-to-date and an astounding 96.41% over the past 12 months, according to <a href="https://pro.benzinga.com/dashboard">data from Benzinga Pro</a>.



Netflix currently has a Relative Strength Index (RSI) of 67, indicating that the stock is in neutral territory.



<figure class="wp-block-image size-large"><a href="https://www.benzinga.com/quote/NFLX/analyst-ratings"><img decoding="async" src="https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/22210933/Screenshot-2025-01-23-at-7.39.26%E2%80%AFAM-1024x375.png" alt="" class="wp-image-745822"/></a></figure>



Photo Courtesy: Shutterstock.com



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Disclaimer:&nbsp;This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Entertainment

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Netflix Crushed Q4 Thanks To Sports, Squid Game, Says Gary Black: Analyst Highlights Low Attrition Despite Price Hikes, Predicts Stock Upside

SK hynix Inc. reported financial results for 2024, with revenues surging 102% to 66.19 trillion won ($46.34 billion), driven by explosive demand for artificial intelligence memory products. 



The South Korean semiconductor manufacturer, a critical supplier to Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>), transformed from a loss-making position in 2023 to delivering a robust net profit of 19.79 trillion won ($13.84 billion).



The fourth-quarter performance highlighted the company&#8217;s strategic pivot, with revenues climbing 75% year-over-year to 19.7670 trillion won ($13.7 billion) and operating profit skyrocketing 2,236% to 8.08 trillion won ($5.66 billion). High-bandwidth memory emerged as a key growth driver, representing over 40% of total DRAM revenue and underscoring the company&#8217;s critical role in the AI semiconductor supply chain.



CFO Kim Woohyun emphasized the company&#8217;s profitability-first approach, noting &#8220;fundamental improvements&#8221; in high value-added product mix. The company plans continued investment in advanced memory technologies like HBM3E and HBM4, targeting growing demand from global technology leaders investing heavily in AI infrastructure.



Financial improvements were complemented by balance sheet optimization, with cash equivalents increasing 5.2 trillion won ($3.64 billion) and debt reducing 6.8 trillion won ($4.76 billion) in 2024. SK hynix also raised its annual dividend by 25% to 1,500 won ($1.05) per share, signaling confidence in its strategic positioning.



Price Action: SK Hynix stock is trading at 218,500 won ($151.97) on Thursday, down 3.10% as of 10:38 a.m. local time on the South Korea Exchange. Over the past year, the stock has surged by 55.18%, according to <a href="https://pro.benzinga.com/dashboard">data from Benzinga Pro</a>.



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Image via Wikimedia Commons



Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Nvidia Supplier SK Hynix Soars 102% In Revenue, But Stock Drops Despite AI Memory Boom

The CNN Money Fear and Greed index showed further improvement in overall market sentiment, while the index remained in the &#8220;Fear&#8221; zone on Wednesday.



U.S. stocks settled higher on Wednesday, with the S&amp;P 500 surging to a new all-time high during the session.



Netflix Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NFLX#NASDAQ">NFLX</a>) reported stronger-than-expected fourth-quarter financial results on Tuesday. Procter &amp; Gamble Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PG#NYSE">PG</a>) posted better-than-expected second-quarter financial results. Abbott Laboratories (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ABT#NYSE">ABT</a>) reported fourth-quarter sales of $10.97 billion, up 7.2% year over year, missing the consensus of $11.01 billion.



On the economic data front, U.S. mortgage applications rose 0.1% from the previous week in the week ending Jan. 17.



Most sectors on the S&amp;P 500 closed on a negative note, with utilities, real estate, and energy stocks recording losses on Wednesday. However, information technology and communication services stocks bucked the overall market trend, closing the session higher.



The Dow Jones closed higher by around 131 points to 44,156.73 on Wednesday. The S&amp;P 500 rose 0.61% to 6,086.37, while the Nasdaq Composite climbed 1.28% at 20,009.34 during Wednesday's session.



Investors are awaiting earnings results from GE Aerospace (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GE#NYSE">GE</a>), American Airlines Group Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAL#NASDAQ">AAL</a>), and Union Pacific Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UNP#NYSE">UNP</a>) today.



What is CNN Business Fear &amp; Greed Index?



At a current reading of 43.3, the index remained in the &#8220;Fear&#8221; zone on Wednesday, versus a prior reading of 41.5.



The Fear &amp; Greed Index is a measure of the current market sentiment. It is based on the premise that higher fear exerts pressure on stock prices, while higher greed has the opposite effect. The index is calculated based on seven equal-weighted indicators. The index ranges from 0 to 100, where 0 represents maximum fear and 100 signals maximum greediness.



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Photo courtesy: Shutterstock

S&P 500 Hits New Record As Netflix Reports Strong Results: Investor Sentiment Improves But Greed Index Remains In 'Fear' Zone

The S&amp;P 500 briefly hit 6,100 points on Wednesday, reaching a fresh all-time high as Wall Street embraced a powerful mix of strong corporate earnings and President Donald Trump's bold $500 billion artificial intelligence<a href="https://www.benzinga.com/25/01/43139410/softbanks-role-in-500-billion-stargate-ai-venture-seen-as-major-growth-driver-analyst-says"> initiative, dubbed &#8220;AI Stargate.&#8221; </a>



The project, designed to transform America's AI infrastructure, added fuel to a market already cheering on stronger-than-expected fourth-quarter earnings and rising hopes of Federal Reserve interest rate cuts later this year.



Mega-cap technology stocks and semiconductor giants led the charge, pushing the S&amp;P 500 — tracked by the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) — higher for the sixth time in the last seven sessions.



By midday Wednesday, the S&amp;P 500 hit 6,100.4 points, narrowly surpassing its previous record of 6,099 set on Dec. 6.



See Also: <a href="https://www.benzinga.com/25/01/43142623/happy-birthday-sp-500-spy-etf-if-you-invested-1000-in-spy-at-launch-heres-how-much-youd-have-today">Happy Birthday S&amp;P 500 SPY ETF! If You Invested $1,000 In SPY At Launch, Here&#8217;s How Much You&#8217;d Have Today</a>



<h3 class="wp-block-heading">AI Stargate: A Game-Changing Investment in AI Infrastructure</h3>



Trump unveiled AI Stargate on Jan. 21. The joint venture unites OpenAI, led by Sam Altman, SoftBank, backed by Masayoshi Son, and Oracle Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ORCL#NYSE">ORCL</a>) to build next-generation AI infrastructure.



The project aims to invest up to $500 billion over four years to develop massive AI data centers across the U.S., starting with an initial $100 billion phase.



Trump hailed the initiative as a &#8220;declaration of confidence in America&#8217;s potential,&#8221; emphasizing its importance in keeping the future of AI technology within U.S. borders. 



AI Stargate is expected to create 100,000 jobs almost immediately, further boosting optimism about economic growth.



<h3 class="wp-block-heading">Earnings Strength Fuels Market Optimism</h3>



While AI excitement dominated headlines, a strong corporate earnings season provided the foundation for the market&#8217;s rally. 



As of Jan. 17, 81% of S&amp;P 500 companies reporting fourth-quarter results had exceeded Wall Street's profit forecasts, while 64% had beaten revenue estimates, according to FactSet.



Mega-cap firms reporting earnings this week — including Netflix Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NFLX#NASDAQ">NFLX</a>), Charles Schwab Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SCHW#NYSE">SCHW</a>), Prologis Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PLD#NYSE">PLD</a>), Procter &amp; Gamble (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PG#NYSE">PG</a>), Abbott Laboratories (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ABT#NYSE">ABT</a>), and Johnson &amp; Johnson (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JNJ#NYSE">JNJ</a>) — all topped estimates, reinforcing investor confidence in corporate America&#8217;s strength.



&#8220;The S&amp;P 500's forward profit margin was at a record-high 13.6% during the January 18, 2025, week, up 0.9 percentage points from 12.7% a year earlier,&#8221; veteran investor Ed Yardeni said in a note Wednesday. 



&#8220;Corporate profitability should continue to improve even as Trump's administration faces a big fiscal headwind.&#8221;



<h2 class="wp-block-heading">Tech Titans Drive The Market Higher</h2>



The so-called &#8220;Magnificent 7&#8221; stocks were at the center of Wednesday's rally, with the Roundhill Magnificent Seven ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MAGS#NASDAQ">MAGS</a>) climbing 1.5%.



Microsoft Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NYSE">MSFT</a>) surged 4%, while Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) jumped 4.6%, reinforcing their dominance in the AI race. Chip stocks saw particularly strong gains as investors bet on increased demand for AI-related infrastructure. 



Arm Holdings plc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ARM#NASDAQ">ARM</a>), the SoftBank-owned semiconductor design firm, soared 15%—its biggest single-day gain since February 2024.



SoftBank's 2024 annual report had described Arm as providing &#8220;the foundational technology for Artificial Super Intelligence,&#8221; a claim that now appears increasingly relevant as AI Stargate takes shape.



<h3 class="wp-block-heading">Six Stocks Powering The S&amp;P 500's Record High</h3>



Just a handful of companies were responsible for a significant portion of the broader market's surge on Wednesday. 



Nvidia and Microsoft alone contributed 53 basis points to the S&amp;P 500&#8217;s advance, while Netflix, Amazon.com Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>), Meta Platforms Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>), and Oracle Corp. collectively added another 18 basis points.



<figure class="wp-block-table is-style-stripes"><table style="overflow:auto; height: 90px; display: block;"><thead><tr><th>Security Name</th><th>Price</th><th>Weight in S&amp;P 500</th><th>1-day %chg</th><th>Contribution to S&amp;P 500</th></tr></thead><tbody><tr><td>Nvidia Corp.</td><td>$1,472.46</td><td>6.51%</td><td>4.55%</td><td>+29bp</td></tr><tr><td>Microsoft Corp.</td><td>$445.37</td><td>6.27%</td><td>3.94%</td><td>+24bp</td></tr><tr><td>Netflix Inc.</td><td>$952.64</td><td>0.72%</td><td>9.54%</td><td>+6bp</td></tr><tr><td>Amazon.com Inc.</td><td>$233.46</td><td>4.10%</td><td>1.19%</td><td>+5bp</td></tr><tr><td>Meta Platforms Inc.</td><td>$626.13</td><td>2.65%</td><td>1.57%</td><td>+4bp</td></tr><tr><td>Oracle Corp.</td><td>$184.92</td><td>0.51%</td><td>7.15%</td><td>+3bp</td></tr></tbody></table></figure>



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S&P 500 Hits Fresh Records At 6,100: Strong Earnings, Trump's AI Wager Fuel Bull Run

Electronic Arts Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/EA#NASDAQ">EA</a>) shares are moving lower in after-hours Wednesday after the company reported preliminary financial results <a href="https://www.benzinga.com/pressreleases/25/01/b43143872/electronic-arts-pre-announces-preliminary-q3-fy25-results">for the third quarter</a>.



What Happened: EA said it previously anticipated mid-single-digit growth in live services net bookings, but now projects a mid-single-digit decline largely due to a slowdown in Global Football.



The Global Football franchise experienced a slowdown in the quarter as early momentum faded, the company said. Separately, Dragon Age only engaged approximately 1.5 million players during the quarter, about 50% lower than the company&#8217;s expectations. 



Due to the unexpected slowdown, EA reported preliminary results for the third quarter and adjusted its full-year outlook. EA now expects third-quarter revenue of $1.883 billion versus estimates of $2.507 billion, according to <a href="http://pro.benzinga.com">Benzinga Pro</a>. The company anticipates third-quarter earnings of $1.11 per share, in line with analyst estimates. 



EA now expects net bookings of approximately&nbsp;$2.215 billion&nbsp;in the third quarter. The company provided a net bookings range of&nbsp;$7 billion&nbsp;to&nbsp;$7.15 billion&nbsp;for fiscal year 2025.



&#8220;During&nbsp;Q3, we continued to deliver high-quality games and experiences across our portfolio; however, Dragon Age and EA SPORTS FC 25 underperformed our net bookings expectations,&#8221; said Andrew Wilson, CEO of EA. 



&#8220;This month, our teams delivered a comprehensive gameplay refresh in addition to our annual Team of the Year update in FC 25; positive player feedback and early results are encouraging. We remain confident in our long-term strategy and expect a return to growth in FY26, as we execute against our pipeline.&#8221;



EA will report its full financial results for the third quarter after the market close on Feb. 4.



EA Price Action: <a href="http://benzinga.com/quote/ea">EA shares</a> were down 8.56% at $130.16 in after-hours trading at the time of publication, per <a href="http://pro.benzinga.com">Benzinga Pro</a>.



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Photo: Shutterstock.

Gaming

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Electronic Arts Stock Is Sliding After The Close: What's Going On?

Netflix Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NFLX#NASDAQ">NFLX</a>) stock hit all-time highs Wednesday on the heels of a quarterly financial report that beat analyst estimates and saw<a href="https://www.benzinga.com/news/earnings/25/01/43114866/netflix-q4-earnings-record-subscribers-nfl-squid-game-push-past-highest-expectations"> record subscriber growth.</a>



With the stock price gains, Netflix is now worth more than the media companies that own the four U.S. broadcast networks and several other streaming companies combined.



What Happened: Netflix reported 18.9 million net new paid subscribers in the fourth quarter, setting a new company record. The company ended the quarter with 301.6 million global paid subscribers, continuing its dominance in<a href="https://www.benzinga.com/topic/streaming"> the streaming sector.</a>



Along with dominating the streaming sector, Netflix is also dominating the overall entertainment sector taking time away from traditional broadcasters and cable networks.



The company is also seeing its valuation rise while other media companies have had falling stock prices over the last year.



Netflix is now worth more than the four broadcast network parent companies combined as shown below.



<ul>
<li>CBS, owned by Paramount Global (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PARA#NASDAQ">PARA</a>)(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PARAA#NASDAQ">PARAA</a>): $7.4 billion</li>



<li>NBC, owned by Comcast Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CMCSA#NASDAQ">CMCSA</a>): $141.8 billion</li>



<li>FOX, owned by Fox Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FOX#NASDAQ">FOX</a>)(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FOXA#NASDAQ">FOXA</a>): $21.4 billion</li>



<li>ABC, owned by The Walt Disney Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIS#NYSE">DIS</a>): $197.6 billion</li>



<li>Total: $368.2 billion</li>
</ul>



Compare that to Netflix's current market capitalization of $410.0 billion.



Netflix is also worth more than many of its streaming competitors combined, which includes some of the media companies listed above:



<ul>
<li>Paramount+, owned by Paramount: $7.4 billion</li>



<li>Peacock, owned by Comcast: $141.8 billion</li>



<li>Tubi, owned by Fox: $21.4 billion</li>



<li>Disney+, Hulu, owned by Disney: $197.6 billion</li>



<li>MAX, owned by Warner Bros Discovery (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/WBD#NASDAQ">WBD</a>): $24.0 billion</li>



<li>The Roku Channel, owned by Roku Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ROKU#NASDAQ">ROKU</a>): $11.7 billion</li>



<li>Total: $404 billion</li>
</ul>



Netflix is worth more than the combined market caps of the four broadcast channel owners and Warner Bros and Roku combined.



Read Also: <a href="https://www.benzinga.com/general/entertainment/25/01/43136402/netflix-stock-firing-on-all-cylinders-10-analysts-react-to-q4-beat-guidance-price-increases">Netflix Stock &#8216;Firing On All Cylinders&#8217;: 10 Analysts React To Q4 Beat, Guidance, Price Increases</a>



Why It's Important: Outside of companies like Amazon.com Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>) and Apple Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>), which own streaming platforms, Netflix is worth significantly more than its streaming and media rivals.



The other key competitor is YouTube, which is owned by Alphabet Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>), another tech giant valued higher than Netflix.



YouTube and Netflix ranked first and second respectively for <a href="https://www.benzinga.com/25/01/43104552/youtube-vs-netflix-streamers-top-usage-leaderboard-in-december-sector-makes-more-gains-on-broadcast-and-cable">December market share</a> for streaming according to a Nielsen report. YouTube's December market share hit a company record 11.1% in December. Netflix tied its company record with an 8.5% market share in December.



Streaming hit a market share of 43.3%, up 9% from November. Broadcast television had market share of 22.4%, cable television had market share of 23.8% and other options came in at 10.6%, according to the report.



Netflix highlighted its strong lineup of content in the fourth quarter helping subscriber growth. That lineup included NFL games on Christmas, a second season of "Squid Game" and a record-breaking boxing match between Jake Paul and Mike Tyson.



The streaming company highlighted its 2025 content slate including new seasons of "Squid Game," "Stranger Things" and "Wednesday." The company will also have several live streamed events again including at least one NFL game on Christmas along with its WWE partnership that kicked off in January.



Netflix's commanding market share and encroachment into traditional media has been going on for years and could continue well into the future.



NFLX Price Action: Netflix stock is up 10% to $959.38 on Wednesday versus a 52-week trading range of $481.40 to $999.00. The stock hit new all-time highs on Wednesday and shares traded over $1,000 in the premarket session. Netflix stock is now up 98% over the last year.



Read Next: 



<ul>
<li><a href="https://www.benzinga.com/general/entertainment/25/01/42956034/netflix-stock-has-long-term-runway-for-dominance-in-streaming-analyst-highlights-4-key-catalysts">Netflix Stock Has &#8216;Long Term Runway For Dominance In Streaming&#8217;: Analyst Highlights 4 Key Catalysts</a></li>
</ul>



Photo: Shutterstock

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AAPL

FOXA

GOOG

GOOGL

PARAA

ROKU

Netflix Worth More Than Disney, Paramount, Comcast, Fox Combined

Alcoa Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AA#NYSE">AA</a>) reported its fourth-quarter financial results after Wednesday's closing bell. Here's a look at the key <a href="https://www.benzinga.com/pressreleases/25/01/b43144306/alcoa-corporation-reports-fourth-quarter-and-full-year-2024-results">figures from the quarter. </a>



The Details: Alcoa reported quarterly earnings of $1.04 per share, which beat the analyst consensus estimate of 97 cents. Quarterly revenue clocked in at $3.48 billion, which beat the analyst consensus estimate of $3.33 billion and is an increase over sales of $2.59 billion from the same period last year.



Alumina production decreased two percent sequentially to 2.39 million metric tons. In the Aluminum segment, production increased two percent sequentially to 571,000 metric tons primarily due to continued progress on the Alumar, Brazil smelter restart.



In the Alumina segment, third-party revenue increased 46% due to an increase in average realized third-party price and higher shipments. In the Aluminum segment, third-party revenue increased 5% due to an increase in average realized third-party price.



Read Next: <a href="https://www.benzinga.com/news/large-cap/25/01/43106379/trump-reverses-bidens-ai-policies-on-day-1-what-it-means-for-tech-giants-nvidia-amd-alphabet">Trump Reverses Biden&#8217;s AI Policies On Day 1: What It Means For Tech Giants Nvidia, AMD, Alphabet&nbsp;</a>



&#8220;Reflecting on 2024, it was a productive year for Alcoa as we delivered on strategic actions and operational improvements, including closing the acquisition of Alumina Limited, announcing the sale of our interest in the Ma&#8217;aden joint ventures, hitting production records and improving operational stability,&#8221; said Alcoa president and CEO William F. Oplinger.&nbsp;



Outlook:&nbsp;Alcoa said it expects 2025 total Alumina segment production to range between 9.5 to 9.7 million metric tons, a decrease from 2024 due to the curtailment of the Kwinana refinery.



Alcoa expects 2025 total Aluminum segment production to range between 2.3 and 2.5 million metric tons, an increase from 2024 due to smelter restarts. 



AA Price Action: According to data from <a href="https://pro.benzinga.com/?gspk=YWRhbWVja2VydDUzMzY&amp;gsxid=zBMR4PKmcgBw">Benzinga Pro</a>, Alcoa shares are up 0.41% after-hours at $38.94 Wednesday. 



Read Next:&nbsp;



<ul>
<li><a href="https://www.benzinga.com/analyst-ratings/initiation/25/01/43102452/roku-analyst-sees-25-upside-as-tv-ad-dollars-go-digital">Roku Analyst Sees 25% Upside As TV Ad Dollars Go Digital&nbsp;</a></li>
</ul>



Photo: Shutterstock

Commodities

Global

Alcoa Shares Climb After Better-Than-Expected Q4 Results

The first U.S. based exchange-traded fund turns 32 years old today and is one of the most<a href="https://www.benzinga.com/etfs"> popular ETFs today.</a>



Here's a look at the history of the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) and how much an investment at launch would be worth today. What Happened: Launched with seed funding of $6.5 million, the SPDR S&amp;P 500 ETF Trust<a href="https://www.benzinga.com/news/23/01/30529288/worlds-first-etf-turns-30-heres-how-much-money-youd-have-if-you-invested-1-000-when-it-launched" target="_blank" rel="noreferrer noopener"> became the first U.S. ETF </a>on Jan. 22, 1993.



The ETF was approved by the U.S. Securities and Exchange Commission several years after&nbsp;State Street Corp.&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/STT#NYSE">STT</a>)&nbsp;applied for the fund.



Initial interest in the ETF was poor and the fund was almost closed before investors came around to the idea of using ETFs as investment vehicles.



The success of the SPY ETF led to other financial institutions launching similar ETFs that track the S&amp;P 500 Index, one of the largest and most well-known stock market indexes.



The&nbsp;iShares Core S&amp;P 500 ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IVV#NYSE">IVV</a>)&nbsp;and&nbsp;Vanguard S&amp;P 500 Index Fund ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VOO#NYSE">VOO</a>)&nbsp;launched in 2000 and 2010, respectively.



Today, the three ETFs that track the S&amp;P 500 are the largest in the world according to&nbsp;<a href="https://etfdb.com/compare/market-cap/" target="_blank" rel="noreferrer noopener">ETFDB&nbsp;</a>with the following assets under management:



<ul>
<li>SPY:&nbsp;$623.5 million</li>



<li>VOO: $603.1 million</li>



<li>IVV: $594.2 million</li>
</ul>



After posting its worst one-year performance in more than a decade for the 2022 year, the S&amp;P 500 Index, which features 500 leading U.S. publicly traded companies, with a primary emphasis on market capitalization, saw outperformance in 2023, ending the year up over 20% and riding a streak of winning weeks. The ETF followed up the rebound with a 24.9% gain in 2024.



In 2024, the S&amp;P 500 <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/12/42678368/sp-500-hits-57-all-time-highs-in-record-breaking-2024-magnificent-7-drive-30-of-nasdaqs-surge">reached new all-time highs </a>on numerous occasions, boosted by soaring valuations for technology stocks.



Here are the current top&nbsp;<a href="https://www.ssga.com/us/en/institutional/etfs/funds/spdr-sp-500-etf-trust-spy" target="_blank" rel="noreferrer noopener">holdings&nbsp;</a>of the SPDR S&amp;P 500 ETF at the time of writing:



<ol>
<li>Nvidia Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>): 6.7%</li>



<li>Apple Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>): 6.6%</li>



<li>Microsoft Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>): 6.2%</li>



<li>Amazon.com Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>): 4.2%</li>



<li>Meta Platforms (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>): 2.6%</li>



<li>Tesla Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>): 2.3%</li>



<li>Alphabet Inc Class A (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>): 2.3%</li>



<li>Broadcom Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>): 2.2%</li>



<li>Alphabet Inc Class C (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>): 1.9%</li>



<li>Berkshire Hathaway Class B (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BRK#NYSE">BRK</a>): 1.7%</li>
</ol>



Read Also: <a href="https://www.benzinga.com/25/01/43059744/exclusive-can-sp-500-repeat-large-gains-from-donald-trumps-first-term-a-second-time-around-readers-say-this-return-range-most-likely">EXCLUSIVE: Can S&amp;P 500 Repeat Large Gains From Donald Trump&#8217;s First Term A Second Time Around? Readers Say This Return Range Most Likely</a>



Investing $1,000 in SPY Stock:&nbsp;While the idea of ETFs was new at the time, investors who followed State Street into the idea of a new investment vehicle to track the S&amp;P 500 would have been pleasantly rewarded.



The SPDR S&amp;P 500 ETF traded at around $43.61 in its first days of trading. A $1,000 investment could have purchased 22.93 shares at the time.



The $1,000 investment would be worth $13,930.20 today based on a price of $607.51 for the SPY at the time of writing. This represents a hypothetical return of $1,293.0% over the past 32 years.



Investors who bought the SPY on Jan. 22, 1993, based on a price of $25.02 adjusted for dividends would have an even larger return. The SPY has an adjusted price of $25.02 when adjusted for dividends, which means a $1,000 investment could have purchased 39.97 shares.



The $1,000 investment would be worth $24,282.17 today. This represents a hypothetical return of 2,328.2% over the past 32 years.



Read Next: 



<ul>
<li><a href="http://= https://www.benzinga.com/etfs/broad-u-s-equity-etfs/25/01/43041374/exclusive-how-high-will-sp-500-go-under-donald-trump-in-2025-readers-are-optimistic-26-say-this">EXCLUSIVE: How High Will S&amp;P 500 Go Under Donald Trump In 2025? Readers Are Optimistic, 26% Say This…</a></li>
</ul>



This article was previously published by Benzinga and has been updated.



Image: Shutterstock

AVGO

Happy Birthday S&P 500 SPY ETF! If You Invested $1,000 In SPY At Launch, Here's How Much You'd Have Today

With <a href="https://www.benzinga.com/topic/interest-rates">ultra-low interest rates</a> firmly in the rearview mirror, Jeff Weniger, Head of Equity Strategy at WisdomTree, has a clear message for investors: &#8220;Anything in the high-4s on a 10-year Treasury rate puts the S&amp;P 500's earnings yield at a level where it either barely exceeds or does not exceed the risk-free yield.&#8221;



In other words, it&#8217;s time to rethink the Growth vs. Value debate.



In an exclusive interview with Benzinga, Weniger said that investors in the "higher for longer" camp should focus on Value stocks. ETFs such as the Vanguard Value ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VTV#NYSE">VTV</a>), the SPDR Select Sector Fund &#8211; Energy (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLE#NYSE">XLE</a>), the Vanguard Small-Cap Value ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VBR#NYSE">VBR</a>) and the iShares Select Dividend ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/DVY#NASDAQ">DVY</a>) provide exposure to value equity in the U.S.



Read Also: <a href="https://www.benzinga.com/25/01/43059744/exclusive-can-sp-500-repeat-large-gains-from-donald-trumps-first-term-a-second-time-around-readers-say-this-return-range-most-likely" target="_blank" rel="noreferrer noopener">EXCLUSIVE: Can S&amp;P 500 Repeat Large Gains From Donald Trump&#8217;s First Term A Second Time Around? Readers Say This Return Range Most Likely</a>



As rates rise, the yields on Treasury bonds become more competitive with stock market earnings, making growth stocks, which have long outperformed, much less attractive. In such a scenario, investors in growth-focused ETFs such as the Invesco QQQ Trust, Series 1 (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) and the Vanguard Growth ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VUG#NYSE">VUG</a>) should remain wary of their holdings.



"In that scenario, which is a live one, investors need to reassess the more speculative portions of their portfolio," he said.



<h2 class="wp-block-heading">Tariff Tension &amp; Its Surprising Impact</h2>



While tariffs continue to be a topic of concern, Weniger suggests that much of this risk is already baked into the market. &#8220;Tariff risk is one of the most priced-in risks we have seen for some time,&#8221; he explained.



Reshoring efforts, which began during the pandemic, are unlikely to be significantly affected by new tariffs. So, if you&#8217;re expecting a major tariff shock to upend the market, Weniger believes the impact may be much smaller than anticipated.



<h2 class="wp-block-heading">Inflation's Hidden Risks: Housing Edition</h2>



Beyond energy prices, Weniger identifies a potentially overlooked inflation risk: housing. &#8220;The market needs to contend with the very real arithmetic of Owners Equivalent Rent in the CPI calculation,&#8221; he said.



Even if home prices stagnate or fall, the inflated housing costs will continue to push the CPI higher.



<h2 class="wp-block-heading">Navigating Market Sentiment</h2>



With macro uncertainties looming, Weniger advises investors to manage their risk carefully. &#8220;Sentiment is arguably bubbly in certain pockets of U.S. markets and downright moribund in others,&#8221; he adds, suggesting that international stocks might be a safer bet while scaling back exposure to U.S. equities in the current volatile climate.



The Vanguard FTSE Developed Markets ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VEA#NYSE">VEA</a>), the iShares Core MSCI EAFE ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/IEFA#BATS">IEFA</a>) and the WisdomTree International Hedged Quality Dividend Growth Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IHDG#NYSE">IHDG</a>) provide exposure to international equity.



Read Next: 



<ul>
<li><a href="https://www.benzinga.com/government/regulations/25/01/43083803/market-bets-on-trumps-tariff-announcement-plummet-dollar-falls-whats-going-on">Market Bets On Trump&#8217;s Tariff Announcement Plummet, Dollar Falls: What&#8217;s Going On?</a></li>
</ul>



Image created using artificial intelligenc via Midjourney.

Long Ideas

Exclusives

Interview

IEFA

IHDG

EXCLUSIVE: 'Higher For Longer' Interest Rates Shift Investors To Value, Tariff Fears Overstated, Says WisdomTree Expert

Cryptocurrency markets are trading lower on Wednesday as investors await Donald Trump's executive orders on crypto and his <a href="https://www.benzinga.com/markets/cryptocurrency/25/01/43135463/strategic-bitcoin-reserve-probability-up-to-64-despite-trump-silence-on-crypto">announcement regarding a strategic Bitcoin reserve</a>.



<figure class="wp-block-table"><table style="overflow:auto; height: 90px; display: block;"><tbody><tr><td>Cryptocurrency</td><td>Price&nbsp;&nbsp;&nbsp;</td><td>Gains +/-</td></tr><tr><td>Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>)</td><td>&nbsp;$104,661.95</td><td>-2.3%</td></tr><tr><td>Ethereum (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/eth/usd">ETH</a>)</td><td>&nbsp;$3,266.86&nbsp;</td><td>-2%</td></tr><tr><td>Solana (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/sol/usd">SOL</a>)</td><td>&nbsp;$266.11</td><td>+5.4%</td></tr><tr><td>XRP (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/xrp/usd">XRP</a>)</td><td>&nbsp;$3.24</td><td>+1.4%</td></tr><tr><td>Dogecoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/doge/usd">DOGE</a>)</td><td>&nbsp;$0.3614</td><td>-5.9%</td></tr><tr><td>Shiba Inu (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/shib/usd">SHIB</a>)</td><td>&nbsp;$0.00002042</td><td>-2.8%</td></tr></tbody></table></figure>



Notable Statistics:



<ul>
<li>IntoTheBlock data shows large transaction volume decreasing by 9.6% and daily active addresses up by 1.95%. Transactions greater than $100,000 are down from 16,250 to 13,808 in a single day. Exchanges netflows are down by 307.6%.</li>



<li>Coinglass data reports 88,536 traders were liquidated in the past 24 hours for $161.09 million.</li>



<li>Arkham Intelligence data shows Blackrock purchased $600 million of BTC, marking its third largest purchase this year.</li>
</ul>



Notable Developments:



<ul>
<li><a href="https://www.benzinga.com/markets/cryptocurrency/25/01/43135463/strategic-bitcoin-reserve-probability-up-to-64-despite-trump-silence-on-crypto">Strategic Bitcoin Reserve Probability Up To 64% Despite Trump Silence On Crypto</a></li>



<li><a href="https://www.benzinga.com/markets/cryptocurrency/25/01/43136512/bitcoin-is-no-threat-to-the-us-dollar-goldman-sachs-ceo-says">Bitcoin Is No &#8216;Threat&#8217; To The US Dollar, Goldman Sachs CEO Says</a></li>



<li><a href="https://www.benzinga.com/markets/cryptocurrency/25/01/43119637/michael-saylors-proposal-to-increase-microstratagys-share-count-approved-by-shareholders-more-bitcoin-purchases-on-the-cards">Michael Saylor&#8217;s Proposal To Increase MicroStratagy&#8217;s Share Count Approved By Shareholders — More Bitcoin Purchases On The Cards?</a></li>



<li><a href="https://www.benzinga.com/top-stories/25/01/43110946/sec-launches-crypto-task-force-to-establish-clear-regulatory-framework">SEC Launches Crypto Task Force To Establish Clear Regulatory Framework</a></li>



<li><a href="https://www.benzinga.com/markets/cryptocurrency/25/01/43119210/bitcoin-miners-helped-texas-avoid-18-billion-energy-costs-report">Bitcoin Miners Helped Texas Avoid $18 Billion Energy Costs: Report</a></li>
</ul>



Top Gainers:



<figure class="wp-block-table"><table style="overflow:auto; height: 90px; display: block;"><tbody><tr><td>Cryptocurrency</td><td>Price&nbsp;&nbsp;&nbsp;</td><td>Gains +/-</td></tr><tr><td>Worldcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/">WLD</a>)</td><td>&nbsp;$2.34</td><td>+12.7%</td></tr><tr><td>Raydium (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/">RAY</a>)</td><td>&nbsp;$8.19</td><td>+7.1%</td></tr><tr><td>Pudgy Penguins (CRYPTO: PENGU)</td><td>&nbsp;$0.02578</td><td>+6.4%</td></tr></tbody></table></figure>



Trader Notes: Crypto trader Flow Horse emphasized that BlackRock itself hasn&#8217;t purchased Bitcoin; its clients did through the ETF. 



He <a href="https://x.com/TheFlowHorse/status/1882139638568976882">warned</a> that the bullish sentiment could be misleading and noted that spikes in trading volume, including multiples of an ETF&#8217;s average daily volume, often indicate short-term market tops.



Altcoin Sherpa <a href="https://x.com/AltcoinSherpa/status/1882143599141573049">expressed</a> optimism, suggesting a &#8220;Bitcoin god candle&#8221; is imminent, advising traders to focus on the upward potential. 



Technical analyst Kevin described the market as stagnant, with liquidity concentrated between $96,000 and $111,000. 



He highlighted the nearly three months of sideways trading after a brief rally, following eight months of stagnation in late 2024.



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">Big blocks of liquidity all the way from 96K-111K. That's the current range we're. Beyond that nothing much to update. Market still pretty boring now for close to 3 months. Crazy because we traded sideways for 8 months to end 2024 then we went up for one month and now we have… <a href="https://t.co/jYTMbOCnfd">pic.twitter.com/jYTMbOCnfd</a>&mdash; Kevin (@Kev_Capital_TA) <a href="https://twitter.com/Kev_Capital_TA/status/1882143081367273650?ref_src=twsrc%5Etfw">January 22, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



CrediBULL Crypto <a href="https://x.com/CredibleCrypto/status/1882146940500287573">clarified</a> that his high-timeframe BTC chart illustrates market structure rather than precise timing or price levels. 



He identified two key support zones: the current level and $88,000-$95,000.



If these fail, BTC could drop to the mid-$80,000 or even $70,000 range, but the larger bullish structure remains intact as long as the $58,000 higher low holds



Read Next:&nbsp;



<ul>
<li><a href="https://www.benzinga.com/markets/cryptocurrency/25/01/43123173/3-reasons-why-bitcoin-could-hit-122000-soon-10x-research">3 Reasons Why Bitcoin Could Hit $122,000 Soon: 10x Research</a></li>
</ul>



Image: Shutterstock

$RAY

$SHIB

$SOL

$XRP

Bitcoin, Ethereum, XRP, Dogecoin Reel Downwards, But Trader Hints At 'Bitcoin God Candle Loading'

Tech stocks enjoyed a surge Wednesday, driven by a sharp rise in semiconductor shares after President Donald Trump, OpenAI's Sam Altman, Oracle Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ORCL#NYSE">ORCL</a>) co-founder Larry Ellison, and SoftBank CEO Masayoshi Son unveiled the <a href="https://www.benzinga.com/etfs/sector-etfs/25/01/43135764/trumps-500-billion-stargate-ai-plan-puts-3-etfs-in-focus">Stargate Project on Tuesday</a>.



The $500 billion initiative is set to develop AI infrastructure in the U.S. over the next four years.



According to OpenAI, &#8220;this infrastructure will secure American leadership in AI, create hundreds of thousands of American jobs, and generate massive economic benefit for the entire world.&#8221;



The iShares Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NASDAQ">SOXX</a>) was up 2.3% by midday trading in New York, eyeing their fourth straight positive session, the longest streak since late September. 



Yet, Tesla Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>)&#8217;s CEO Elon Musk questioned the financial viability, saying that founders &#8220;<a href="https://www.benzinga.com/markets/equities/25/01/43121798/elon-musk-says-project-stargate-doesnt-actually-have-the-money-after-trump-announces-500-billion-ai-investment-led-by-softbank-oracle-and-openai">don't actually have the money</a>.&#8221;



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">They don't actually have the money&mdash; Elon Musk (@elonmusk) <a href="https://twitter.com/elonmusk/status/1881923570458304780?ref_src=twsrc%5Etfw">January 22, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



The earnings season continues to be off to a strong start, with companies surpassing fourth-quarter expectations, showcasing the resilience of corporate America. Netflix Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NFLX#NASDAQ">NFLX</a>) delivered a stronger-than-expected quarterly performance across the board, driving its shares up 12%.



Elsewhere, small caps paused for a breather following Tuesday&#8217;s outperformance vis-à-vis large-cap counterparts. 



Chinese stocks slipped, with the iShares China Large-Cap ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FXI#NYSE">FXI</a>) down 0.8%, after Trump floated the idea of imposing a 10% tariff on China starting from Feb. 1.



In commodities, gold prices surged to an 11-week-high, marking their tenth gain in the past eleven sessions, as investors flocked to safe-haven assets amid rising geopolitical risks.



On Wednesday, Trump warned Russian President Vladimir Putin of potential new sanctions if a peace deal for Ukraine is not reached. Meanwhile, oil prices remained flat after three consecutive sessions of losses.



In the crypto market, selling pressure is mounting as traders react to the absence of crypto-related commentary from the new administration, which had previously positioned itself as crypto-friendly. Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) retreated nearly 2% to $104,000.



<h3 class="wp-block-heading">Wednesday&#8217;s Performance In Major US Indices, ETFs</h3>



<figure class="wp-block-table is-style-stripes"><table style="overflow:auto; height: 90px; display: block;"><tbody><tr><td>Major Indices</td><td>Price</td><td>1-day %chg</td></tr><tr><td>Nasdaq 100</td><td>21,933.62</td><td>1.7%</td></tr><tr><td>S&amp;P 500</td><td>6,103.81</td><td>0.9%</td></tr><tr><td>Dow Jones</td><td>44,173.70</td><td>0.3%</td></tr><tr><td>Russell 2000</td><td>2,307.01</td><td>-0.5%</td></tr></tbody></table><figcaption class="wp-element-caption">Updated at 12:30 p.m. ET</figcaption></figure>



According to&nbsp;<a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent012225&amp;t=be2bearmibe3na1" target="_blank" rel="noreferrer noopener">Benzinga Pro</a>&nbsp;data:



<ul>
<li>The&nbsp;SPDR S&amp;P 500 ETF Trust&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) rose 0.8% to $602.64.</li>



<li>The&nbsp;SPDR Dow Jones Industrial Average&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>)&nbsp;inched 0.3% higher to $441.25.</li>



<li>The tech-heavy&nbsp;Invesco QQQ Trust Series&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) rallied 1.6% to $533.22.</li>



<li>The&nbsp;iShares Russell 2000 ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) fell 0.5% to $228.56.</li>



<li>The&nbsp;Technology Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLK#NYSE">XLK</a>) rallied, up 2.4%; the&nbsp;Utilities Select Sector SPDR Fund&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLU#NYSE">XLU</a>) lagged, down 1.6%.</li>
</ul>



<h3 class="wp-block-heading">Wednesday&#8217;s Stock Movers</h3>



<ul>
<li>Oracle Corp. rallied 7% as reaction to the Stargate project. Arm Holdings plc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ARM#NASDAQ">ARM</a>) was the chipmaker&#8217;s top performer on Wednesday, up 14%. Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) rose over 4%. </li>



<li>Procter &amp; Gamble Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PG#NYSE">PG</a>) rose 2.8% in reaction to quarterly results beating Street&#8217;s estimates. </li>



<li>Other stocks reacting to company earnings include Interactive Brokers Group Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/IBKR#NASDAQ">IBKR</a>), up 8.8%, Capital One Financial Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/COF#NYSE">COF</a>), up 2.6%, United Airlines Holdings Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/UAL#NASDAQ">UAL</a>), down 2%, Seagate Technology Holdings plc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/STX#NASDAQ">STX</a>), up 9%, Bank of America Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BAC#NYSE">BAC</a>), down 1.3%, Johnson &amp; Johnson (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JNJ#NYSE">JNJ</a>) down 3.4%, Abbott Laboratories (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ABT#NYSE">ABT</a>), up 2.2%, GE Vernova Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GEV#NYSE">GEV</a>), up 2.2%, Amphenol Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/APH#NYSE">APH</a>), up 6%, The Travelers Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TRV#NYSE">TRV</a>) up 3.8%, Halliburton Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HAL#NYSE">HAL</a>), down 1.3%, Ally Financials Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ALLY#NYSE">ALLY</a>), up 4.5%. </li>



<li>Major large-cap companies slated to report earnings after the close include Kinder Morgan Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KMI#NYSE">KMI</a>), Discover Financial Services (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DFS#NYSE">DFS</a>) and Steel Dynamics Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/STLD#NASDAQ">STLD</a>), </li>
</ul>



Now Read: 



<ul>
<li><a href="https://www.benzinga.com/news/global/25/01/43135622/coffee-prices-soar-to-record-highs-could-starbucks-face-margin-squeeze">Coffee Prices Soar To Record Highs: Could Starbucks Face Margin Squeeze?</a></li>
</ul>



Image: Shutterstock

Mid Cap

Sector ETFs

Small Cap

ALLY

IBKR

STLD

Chipmakers Rally On AI Stargate Bet, Netflix Soars, Bitcoin Falters As Trump Keeps Quiet On Crypto: What's Driving Markets Wednesday?

Netflix Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NFLX#NASDAQ">NFLX</a>) analysts call the fourth quarter beat one of the best in company history and changed price targets based on the content slate, price increases and strong advertising momentum.



The Netflix Analysts: Macquarie analyst Tim Nollen reiterated an Outperform rating and raised the price target from $965 to $1,150.



KeyBanc analyst Justin Patterson maintained an Overweight rating and raised the price target from $1,000 to $1,100.



Guggenheim analyst Michael Morris maintained a Buy rating and raised the price target from $950 to $1,100.



Canaccord Genuity analyst Maria Ripps upgraded Netflix from Hold to Buy and raised the price target from $940 to $1,150.



Needham analyst Laura Martin reiterated a Buy rating and raised the price target from $800 to $1,150.



BMO Capital analyst Brian Pitz reiterated an Outperform rating and raised the price target from $1,000 to $1,175.



Raymond James analyst Andrew Marok maintained a Market Perform rating with no price target.



JPMorgan analyst Doug Anmuth reiterated an Overweight rating and raised the price target from $1,000 to $1,150.



Piper Sandler analyst Matt Farrell reiterated an Overweight rating and raised the price target from $950 to $1,100.



Bank of America analyst Jessica Reif Ehrlich reiterated a Buy rating and raised the price target from $1,000 to $1,175.



Macquarie on NFLX: The company went "out with a bang," reporting 19 million added paid subscriptions in its last quarter of reporting this key metric, Nollen said in a new investor note.



"Attention now turns to revenue as well as OI and FCF," Nollen said referencing operating income and free cash flow.



The analyst said Netflix saw higher subscribers thanks to the Mike Tyson and Jake Paul boxing match, NFL games on Christmas and could see more growth from its WWE partnership.



"WWE, which began in January, has driven increased engagement with on-demand viewing up 25% from viewers the day after the live event."



KeyBanc on NFLX: Raised guidance for fiscal 2025 could reflect higher subscriber figures and a price increase, Patterson said in a new investor note.



The analyst raised revenue estimates due to higher paid membership figures and higher revenue per member.



"We believe a strong 2025 content slate can continue drive paid membership gains," Patterson said



With the company choosing not to report membership figures going forward, "revenue becomes the primary metric to value Netflix," Patterson added.



"We are increasingly confident Netflix can sustain low-teens revenue growth through 2026E."



Guggenheim on NFLX: A record quarter for subscriber adds could be just the beginning for Netflix's latest round of growth, Morris said in a new note.



"The company announced plan price increases in several markets, including the U.S., and raised full-year financial guidance despite incremental FX headwinds versus the initial 2025 outlook. As good as it gets? We don't think so," Morris said.



The analyst highlighted Netflix's comments on its growing total market size and strong viewer engagement as optimistic items for the company's future.



"We see earlier stage initiatives — led by advertising sales, live content including sports and events, and video game offerings — as incremental contributors to sustained growth in the coming years."



Canaccord on NFLX: Record subscriber growth, price increases and momentum in the advertising business are highlights from the company's earnings report, Ripps said in a new investor note.



"Netflix reported strong fourth quarter results, with paid memberships, revenue, and profitability all coming in ahead of expectations," Ripps said.



The analysts called the 2025 content slate as "very healthy" with new seasons of "Squid Game," Stranger Things" and "Wednesday," along with an increased number of live events.



Ripps said they incorrectly downgraded Netflix stock less than a year ago citing slower growth and a premium valuation.



"That stance clearly turned out to be incorrect."



Needham on NFLX: A strong content slate, live sports and the continued crackdown on paid sharing led to a strong subscriber figure and beat, Martin said in a new note.



Martin said the subscriber growth in the U.S. and Canada was helped by two NFL games on Christmas, with the other subscriber adds being unrelated to the NFL.



"Despite strong viewership of its two Christmas Day NFL games, NFLX reaffirmed its lack of interest in ‘full season' live sports owing to high costs," Martin said.



Failing to disclose subscriber additions or average revenue per member figures could add risks to the stock, the analyst added.



BMO on NFLX: Strong advertising growth could be a key item to watch for Netflix's future, Pitz said in a new note.



"We model ~$3B in ad revenue by 2026E," Pitz said.



The analyst said advertising revenue grew two times in 2024 and is expected to two times again in 2025.



"AVOD monetization potential remains a significant opportunity."



Pitz said the May 2025 upfront season could serve as a key catalyst for Netflix. &nbsp;



"We believe a robust content slate combined with layering in ‘shoulder' live events will result in ongoing subs growth in the U.S. and globally."



Raymond James on NFLX: Netflix's fourth-quarter results and 2025 guidance were strong across all metrics, Marok said in a new note.



"This quarter was as strong as we have seen from the company since the peaks of the pandemic, with execution across various areas including live events, ads, and margins all pointing upward," Marok said.



The analyst said Netflix's live events strategy is "proven out" and more similar big sporting events are likely.



"Netflix is also leaning into event-driven programming in 2025, with a full year of WWE Raw and what will likely be a number of unannounced unique events in the sports and comedy genres."



JPMorgan on NFLX: The streaming giant may have eliminated concerns about high expectations and FX headwinds with a huge subscriber figure and 2025 guidance, Anmuth said in a new note.



"NFLX enters the new year firing on all cylinders — benefiting from an extremely strong content slate, seeing increased engagement per member household and healthy retention, raising prices in key markets including the U.S., and shifting the ad business from the crawl to walk stage," Anmuth said.



The analyst highlighted Netflix's comments that it had broad-based subscriber growth and its record-breaking figures weren't just because of the Paul/Tyson fight, NFL and second season of "Squid Game."



"Combing off what was likely NFLX's strongest content quarter ever and heading into a robust 2025 slate, we expect little pushback to price increases in the US and a few other markets."



Piper Sandler on NFLX: Strong content helped subscriber growth and provides upside for the stock, Farrell said in a new note.



"We remain impressed with the company's execution, as management continues to deliver positive surprises even at industry-leading scale," Farrell said.



The analyst's two biggest takeaways from Netflix's earnings call were tailwinds to subscriber growth and the continued ramp of the advertising tier.



"We see a strong content slate for this year supporting engagement. Netflix remains our top large cap idea."



 Bank of America on NFLX: Fourth-quarter results and record-breaking subscriber figures marked a strong report, Ehrlich said in a new note.



"In our view, this quarter reflects the robust platform Netflix has created as it remains one of the best-positioned companies in media with several growth drivers," Ehrlich said.



NFLX Price Action: Netflix stock is up 10.96% to $965 Wednesday at publication versus a 52-week trading range of $481.40 to $999. The stock hit new all-time highs earlier Wednesday and shares are up almost 100% over the last year.



Photo: Shutterstock

Upgrades

Price Target

Reiteration

Analyst Ratings

Media

Netflix Stock 'Firing On All Cylinders': 10 Analysts React To Q4 Beat, Guidance, Price Increases

Illinois Gov.<a href="https://www.benzinga.com/topic/jb-pritzker"> J.B. Pritzker</a> reaffirmed his commitment to protecting immigrant residents lacking permanent legal status in response to President Donald Trump's <a href="https://www.benzinga.com/government/regulations/25/01/43084601/trump-day-1-executive-order-tsunami-incoming-energy-inflation-immigration-in-focus-but-what-about-tariffs">promised crackdown</a>, which was expected to get underway in Chicago.



Pritzker says he supports deporting individuals convicted of violent crimes but not law-abiding workers who are living in the country without permission. 



"I want criminals off the streets, and law enforcement officers to do their jobs," the Democratic governor <a href="https://www.nbcchicago.com/news/local/chicago-politics/pritzker-promises-to-uphold-states-immigration-laws-amid-possible-ice-raids/3652713/">said</a> in an interview with NBC Chicago published Tuesday. "Undocumented people who are law-abiding and holding down jobs shouldn't be arrested just because they're undocumented."



Pritzker's remarks counter plans by Tom Homan, Trump's proposed border czar, who has pledged to dismantle state and local policies limiting federal enforcement. While fears of Immigration and Customs Enforcement raids have intensified, no verified reports of immediate actions had surfaced as of Wednesday, <a href="https://www.wbez.org/immigration/2025/01/21/despite-reports-of-tuesday-immigration-raid-chicago-was-quiet-on-trumps-first-full-day-in-office">according</a> to WBEZ Chicago.



Read Also: <a href="https://www.benzinga.com/startups/25/01/42881696/trumps-immigration-plan-faces-multi-billion-dollar-hurdles-and-delays-according-to-wsj">Trump&#8217;s Immigration Plan Faces Multi-Billion-Dollar Hurdles And Delays According To WSJ</a>



<h2 class="wp-block-heading">Negative Impact On Chicago&#8217;s Economy Could &#8216;Last For Years&#8217; </h2>



Trump's deportation policies are expected to disrupt key sectors of Chicago&#8217;s economy, heavily reliant on immigrant labor. The hospitality and restaurant industry is preparing for potential ICE raids, though fears and misinformation have already reduced business activity and patronage. 



Bloomberg <a href="https://www.bloomberg.com/news/articles/2025-01-21/threat-of-immigration-raids-turns-chicago-hub-into-ghost-town?sref=TBDibEcD">reported</a> the second busiest retail corridor in Chicago, normally a bustling area with taco shops and Mexican grocery stores, is like a ghost town.



"It's going to be disastrous," said Jennifer Aguilar, who heads the local chamber of commerce and spoke with a number of the 400 or so businesses in the area. "If raids happen and people are too afraid to go out, it's going to be an impact that's going to last for years." 



McDonald&#8217;s Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MCD#NYSE">MCD</a>), which is headquartered in Chicago, could face operational challenges and decreased consumer spending as the result of fear within immigrant communities.



Beyond Chicago, Illinois' agricultural and food processing industries could also experience supply chain disruptions.



Companies like Caterpillar Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CAT#NYSE">CAT</a>) and Archer-Daniels-Midland Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ADM#NYSE">ADM</a>), which rely on global as well migrant workforces in their supply chains, could be affected by Trump&#8217;s threatened deportations.



<h2 class="wp-block-heading">Private Prisons Continue To Fare Well</h2>



Private prison operators like GEO Group (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GEO#NYSE">GEO</a>) and CoreCivic (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CXW#NYSE">CXW</a>), the two largest in the U.S., both have contracts with ICE to house detained undocumented individuals. According to a 2023 ACLU <a href="https://wp.api.aclu.org/news/immigrants-rights/unchecked-growth-private-prison-corporations-and-immigration-detention-three-years-into-the-biden-administration" target="_blank" rel="noreferrer noopener">report</a>, over 90% of migrants detained by ICE are held in privately owned facilities. As such, both companies&#8217; <a href="https://www.benzinga.com/24/12/42692787/private-prisons-poised-to-prosper-in-second-trump-term">stocks are on the rise</a> over the last year. Geo and CoreCivic were trading lower Wednesday.



Now Read:



<ul>
<li><a href="https://www.benzinga.com/25/01/43125408/trump-signs-order-to-withdraw-us-from-who-again-cites-funding-governance-concerns">World Health Organization Responds to Trump&#8217;s Order, Reminds Decades of Successful Health Achievements</a></li>
</ul>



Photo:&nbsp;<a href="https://www.shutterstock.com/es/g/AndreasStroh" target="_blank" rel="noreferrer noopener">Andreas Stroh</a>&nbsp;on Shutterstock.

Politics

Legal

Trump's Immigration Raids Could Disrupt Key Sectors Of Chicago's Economy: Pritzker Says To Focus On Criminals, Not Law-Abiding Workers

Arabica coffee futures have soared past $3.35 per pound in January 2025, holding near multi-decade highs after peaking at $3.48 in December, the highest <a href="https://www.benzinga.com/markets/commodities">level since April 1977.</a>



In a note shared Wednesday, Bank of America analyst Sara Senatore said, &#8220;Coffee remains inflationary. For Q1 2025, average coffee price inflation is expected to be 75.5%.&#8221; 



She added that prices have surged 120% from 2023 lows, increasing investor concerns about Starbucks Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SBUX#NYSE">SBUX</a>)&#8217; margins and pressuring the company's valuation multiple.



<h3 class="wp-block-heading">Chart: Coffee Futures Hover At Near 50-Year Highs</h3>



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="506" src="https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/22104158/image-156-1024x506.png" alt="" class="wp-image-744985" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/22104158/image-156-1024x506.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/22104158/image-156-300x148.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/22104158/image-156-768x380.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/22104158/image-156-1536x759.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/22104158/image-156.png 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>



<h3 class="wp-block-heading">What&#8217;s Triggering The Coffee Price Spike? </h3>



The coffee market has seen supply risks materializing on its world&#8217;s top producer. 



Brazil's coffee production forecast have been downwardly revised in recent months amid weather disruptions hitting South America&#8217;s largest country. 



On Monday, Conab, Brazil's national supply agency, estimated the country's 2024 coffee harvest at 54.2 million 60kg bags, a 1.6% decline from the prior year's crop. 



The revision follows adverse weather in Minas Gerais, a key Arabica-producing region, that has constrained supply. Meanwhile, strong demand for Robusta beans, often used in instant coffee, has compounded price pressures.



In Australia, Restaurant and Cafe Association chief executive Wes Lambert said the cost of a coffee &#8220;could reach double digits&#8221; in major cities if bean prices remain elevated.



<h3 class="wp-block-heading">Starbucks' Hedging Strategy: A Safety Net?</h3>



Despite soaring coffee prices, Starbucks may be shielded from immediate cost increases. The Seattle-based company has long-term purchasing strategies as indicated by Bank of America.



As the world&#8217;s largest coffeehouse, Starbucks secures supply agreements more than a year in advance. The chain has a mix of fixed-price and price-to-be-fixed contracts.



Fixed-price contracts lock in costs upfront, while price-to-be-fixed agreements allow pricing flexibility until delivery. 



Starbucks relies on futures contracts and collars, which are derivative instruments that help stabilize price fluctuations, to hedge against volatile coffee costs. 



While Starbucks&#8217; hedging policies provide insulation, the company still supplements its inventory with purchase commitments, some of which remain exposed to the unpredictable swings in commodity prices. 



The question is whether sustained high prices could eventually seep into its cost structure.



Yet, Bank of America remains optimistic about Starbucks&#8217; outlook. &#8220;We believe SBUX&#8217;s brand remains fundamentally strong and there are significant opportunities to reallocate resources,&#8221; Senatore wrote in the note, maintaining a Buy rating with a $117 price target. 



Read now: 



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<li><a href="http://benzinga.com/etfs/emerging-market-etfs/25/01/43130930/trump-looking-at-10-tariff-on-china-starting-feb-1">Trump &#8216;Looking At&#8217; 10% Tariff On China Starting Feb. 1</a></li>
</ul>

Latin America

Economics

SBUX

Coffee Prices Soar To Record Highs: Could Starbucks Face Margin Squeeze?

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