Banks have successfully sold $5.5 billion in loans tied to X Corp., the social media platform owned by Elon Musk, amid <a href="https://www.benzinga.com/general/social-media/25/01/43373012/elon-musk-bringing-advertisers-back-to-x-amazon-boosts-spending-apple-considers-return">surging investor demand</a>. 



What Happened: The sale, which was initially planned at $3 billion, was expanded due to heightened interest, with investors including Pimco and Citadel purchasing the loans at 97 cents on the dollar, people familiar with the matter <a href="https://www.wsj.com/finance/banks-sell-5-5-billion-of-x-loans-after-investor-interest-surges-4b84f89c?st=GYpPqP&amp;reflink=desktopwebshare_permalink">told</a> The Wall Street Journal. 



The floating-rate debts carry an interest rate of approximately 11%—a premium even compared to some of Wall Street's riskiest loans.



The transaction underscores the renewed investor enthusiasm surrounding X Corp. following Musk's growing influence in Washington and the return of key advertisers, such as Amazon.com Inc. The platform faced significant turmoil after Musk's $44 billion acquisition in 2022, as advertisers pulled back due to concerns over content moderation. While X is still grappling with financial challenges, recent signs of stability have drawn fresh interest from investors.



At a recent investor meeting led by Morgan Stanley (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MS#NYSE">MS</a>) bankers and X CEO Linda Yaccarino, financial documents revealed that Musk's artificial intelligence startup, xAI, has injected hundreds of millions of dollars into X. The two entities share executives and business ties, and X now holds a 10% stake in xAI, valued at approximately $5 billion, according to the WSJ report.



See Also: <a href="https://www.benzinga.com/news/earnings/25/02/43513408/arm-holdings-stock-slides-on-q3-earnings-revenue-beat-eps-beat-revised-guidance-and-more">Arm Holdings Stock Slides On Q3 Earnings: Revenue Beat, EPS Beat, Revised Guidance And More</a>



Why It Matters: The loan sale is a significant win for the banks, including Morgan Stanley, Bank of America Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BAC#NYSE">BAC</a>), and Barclays (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BCS#NYSE">BCS</a>), which originally extended financing for Musk's 2022 buyout. The sluggish performance of X and high interest rates had forced them to hold onto the debt far longer than expected.



Despite the successful sale, the banks still retain around $6 billion in X-related debt, some of which is considered riskier. X remains under financial pressure, with annual interest payments exceeding $1 billion. 



With major advertisers like Amazon ramping up spending and Apple Inc. reportedly considering reintroducing ads. 



Read Next: 



<ul>
<li><a href="https://www.benzinga.com/news/earnings/25/02/43511849/strategy-q4-earnings-bitcoin-treasury-company-spends-205b-on-btc-shares-inch-higher-despite-revenue-miss">Strategy Q4 Earnings: Bitcoin Treasury Company Spends $20.5B On BTC, Shares Inch Higher Despite Revenue Miss</a></li>
</ul>



Image Via Shutterstock 



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

Equities

News

Social Media

Markets

AAPL

AMZN

Elon Musk's Lenders Cash In $5.5 Billion On Thanks To Investor Demand For X Loans: Report

The Official TRUMP (TRUMP) coin has surged 4.27% in the last 24 hours, reaching $18.50, with a market cap of $3.7 billion. Despite this short-term rally, TRUMP remains down 75.36% from its all-time high of $75.35 set on Jan. 19. 



What Happened: This dramatic drop follows a volatile market phase, where it <a href="https://in.benzinga.com/markets/cryptocurrency/25/01/43335432/trump-meme-coin-now-accepted-for-merchandise-purchases">lost 42% of its value in the last week</a>.



The meme coin, originally launched by CIC Digital, a group linked to President Donald Trump's campaign, reached an astonishing market cap of nearly $75 billion within days of its launch. 



However, its meteoric rise has been matched by sharp declines, as investors face uncertainty amid broader market conditions and recent <a href="https://www.benzinga.com/markets/cryptocurrency/25/01/43152664/trump-memecoin-achieved-this-valuation-milestone-inside-two-days-that-took-jeff-bezos-amazon-over-13-years">tariff announcements by Trump</a>.



Despite the volatility, TRUMP has still managed to maintain its position as one of the top meme coins, even after falling from 14th to 32nd in market cap rankings, according <a href="https://coinmarketcap.com/currencies/official-trump/#About">to</a> CoinMarketCap.



At the time of writing, TRUMP was the second-best performing coin behind FTX Token (FTT), according to data from CoinMarketCap. TRUMP outpaced Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>), Ethereum (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/eth/usd">ETH</a>), and meme-king Dogecoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/doge/usd">DOGE</a>) over a 24-hour period.



See Also: <a href="https://www.benzinga.com/25/02/43507132/stocks-rebound-google-eyes-worst-drop-in-a-year-gold-shatters-fresh-records-whats-driving-markets-wednesday">Stocks Rebound, Google Eyes Worst Drop In A Year, Gold Shatters Fresh Records: What&#8217;s Driving Markets Wednesday?</a>



Why It Matters: The coin has also started to see real-world use cases, with online merchants and travel websites like Travala accepting TRUMP as <a href="https://in.benzinga.com/markets/cryptocurrency/25/01/43335432/trump-meme-coin-now-accepted-for-merchandise-purchases">payment through Solana Pay</a>. 



The involvement of insiders linked to CIC Digital, who control a large portion of the coin's supply, has raised concerns over potential market manipulation and its <a href="https://in.benzinga.com/markets/cryptocurrency/25/01/43335432/trump-meme-coin-now-accepted-for-merchandise-purchases">impact on price stability</a>.



Price Action: The Official TRUMP coin is currently priced at $18.50, up 4.09% in the last 24 hours. It has experienced a significant 171.24% increase since its inception, according <a href="https://coinmarketcap.com/currencies/official-trump/#About">to</a> CoinMarketCap. 



Read Next: 



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<li><a href="https://www.benzinga.com/media/25/02/43517995/amazons-remarkable-alexa-is-coming-heres-what-to-expect-from-the-ai-overhaul-and-its-potential-10-monthly-fee">Amazon&#8217;s &#8216;Remarkable Alexa&#8217; Is Coming—Here&#8217;s What To Expect From The AI Overhaul And Its Potential $10 Monthly Fee</a></li>
</ul>



Image Via Shutterstock 



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

Cryptocurrency

$BTC

$DOGE

$ETH

TRUMP Meme Coin Jumps 4.27%, Outpaces Bitcoin, Ethereum And Dogecoin, But It's Still No Where Near January Highs

On Wednesday, Cathie Wood-led Ark Invest made significant trades involving Palantir Technologies Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PLTR#NASDAQ">PLTR</a>) and Robinhood Markets Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/HOOD#NASDAQ">HOOD</a>). These trades occurred amid notable developments in both companies, drawing attention from investors and market analysts.



The Palantir Trade



On Wednesday, Ark Invest, through its ARK Innovation ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ARKK#NYSE">ARKK</a>), decided to offload 5,495 shares of Palantir. This move came as <a href="https://www.benzinga.com/content/43497092/palantir-stock-surges-after-blockbuster-earnings-whats-next">Palantir&#8217;s stock soared</a> following its impressive fourth-quarter earnings report. The company reported a 36% year-over-year increase in total revenue, with substantial growth in its U.S. commercial and government sectors. The Palantir rally has since simmered down with the stock ending 2.4% lower at $101.36 on Wednesday. This valued the Ark trade at approximately $556,973.



Palantir&#8217;s stock performance has been remarkable, showing a 34.8% upside since 2025 began.The retail investing community actively engaging with the company&#8217;s prospects. The recent earnings report has only fueled this enthusiasm, showcasing the company&#8217;s strong performance and future potential.



Notably, Ark <a href="https://www.benzinga.com/25/02/43484615/cathie-wood-led-ark-invest-dumps-7m-worth-of-palantir-stock-amid-searing-rally">chose to offload</a> nearly $7.4 million worth of Palantir shares a day earlier amid the searing rally in the stock on Tuesday.



See Also: <a href="https://www.benzinga.com/trading-ideas/technicals/25/02/43502478/microstrategy-stock-caught-in-a-tug-of-war-will-q4-earnings-tip-the-scale">MicroStrategy Stock Caught In A Tug-Of-War: Will Q4 Earnings Tip The Scale?</a>



The Robinhood Trade



Ark Invest also made moves involving Robinhood through its flagship ARKK fund. The company <a href="https://www.benzinga.com/general/sports-betting/25/02/43482999/robinhood-ends-super-bowl-lix-bets-plan-after-cftc-complaint">recently faced challenges</a> after its plan to offer event contracts for Super Bowl LIX was halted due to a complaint from the Commodity Futures Trading Commission. Robinhood had intended to launch these contracts in collaboration with Kalshi, but the plan was scrapped following regulatory pressure.



Despite this setback, Robinhood is <a href="https://www.benzinga.com/markets/cryptocurrency/25/01/43310167/robinhood-expands-trading-services-with-bitcoin-oil-gold-futures">expanding its trading services</a>, including futures trading for Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>), oil, and gold. This strategic move into derivative markets indicates Robinhood&#8217;s efforts to diversify its offerings and attract a broader user base. The developments surrounding Robinhood highlight the dynamic nature of the financial services industry and the challenges companies face in navigating regulatory landscapes.



On Wednesday, Ark sold 127,952 Robinhood stocks worth $6.9 million. Robinhood shares ended the day 3.1% higher at $54.20.



Other Key Trades:



<ul>
<li>Crisper Therapeutics (CRSP): Ark Invest purchased 159,139 shares through ARKK and 28,199 shares through ARKG.</li>



<li>10X Genomics Inc (TXG): Acquired 77,594 shares via ARKK.</li>



<li>Twist Bioscience Corp (TWST): Bought 15,291 shares from ARKK.</li>



<li>Lockheed Martin Corp (LMT): Sold 100 shares through ARKQ.</li>
</ul>



Image via Shutterstock



Read Next: 



<ul>
<li><a href="https://www.benzinga.com/general/social-media/25/02/43517095/elon-musks-lenders-cash-in-55-billion-on-thanks-to-investor-demand-for-x-loans-report">Elon Musk&#8217;s Lenders Cash In $5.5 Billion On Thanks To Investor Demand For X Loans: Report</a></li>
</ul>



This story was generated using <a href="https://www.benzinga.com/author/benzinga-neuro">Benzinga Neuro</a> and edited by <a href="https://www.benzinga.com/author/shivdeep-dhaliwal" target="_blank" rel="noreferrer noopener">Shivdeep Dhaliwal</a>

ETFs

ARKK

HOOD

PLTR

Cathie Wood Sells Palantir Shares As Rally Cools Down, Ark Invest Also Dumps Nearly $7 Million Worth Of Robinhood Stock

Arm Holdings Plc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ARM#NASDAQ">ARM</a>) reported third-quarter financial results for fiscal year 2025 after the market close on Wednesday. Here&#8217;s a rundown <a href="https://www.benzinga.com/pressreleases/25/02/b43509353/arm-holdings-plc-reports-results-for-the-third-quarter-of-the-fiscal-year-ended-2025">of the report</a>.



Q3 Earnings: Arm reported third-quarter revenue of $983 million, beating analyst&nbsp;<a href="https://www.benzinga.com/calendars/earnings" target="_blank" rel="noreferrer noopener">estimates</a>&nbsp;of $946.73 million. The chip designer reported adjusted earnings of 39 cents per share, beating analyst estimates of 34 cents per share, according to <a href="http://pro.benzinga.com/" target="_blank" rel="noreferrer noopener">Benzinga Pro</a>.



Total revenue was up 19% year-over-year, driven by record levels of royalty revenue and continued strength in license revenue. Royalty revenue grew 23% year-over-year primarily driven by continued adoption of Armv9 architecture, increased usage of Arm chips in data centers and IoT improvement.



Annualized contract value (ACV) was up 9% year-over-year to $1.27 billion. Arm said free cash flow totaled $349 million in the quarter. The company ended the period with $2.67 billion in cash, cash equivalents and short-term investments.



&#8220;Arm delivered record third-quarter revenue driven by continued strong adoption of Armv9 and CSS compute platforms,&#8221; said Rene Haas, CEO of Arm Holdings.



&#8220;With our high-performance, energy-efficient, flexible technology, Arm is a key enabler in advancing AI innovation and transforming the user experience, from the edge to the cloud.&#8221;



See Also: <a href="https://www.benzinga.com/25/02/43507132/stocks-rebound-google-eyes-worst-drop-in-a-year-gold-shatters-fresh-records-whats-driving-markets-wednesday#google_vignette">Stocks Rebound, Google Eyes Worst Drop In A Year, Gold Shatters Fresh Records: What&#8217;s Driving Markets Wednesday?</a>



Guidance: Arm expects fourth-quarter revenue of $1.175 billion to $1.275 billion. The company anticipates fourth-quarter adjusted earnings of 48 cents to 56 cents per share.



Arm also narrowed its full-year guidance. The company now expects full-year revenue of $3.94 billion to $4.04 billion and full-year adjusted earnings of $1.56 to $1.64 per share.



Arm executives will further discuss the quarter on a call with investors and analysts at 5 p.m. ET.



ARM Price Action: <a href="https://www.benzinga.com/quote/ARM" target="_blank" rel="noreferrer noopener">Arm shares</a> were down 6.99% after hours, trading at $161.25 at the time of publication Wednesday, according to <a href="http://pro.benzinga.com/" target="_blank" rel="noreferrer noopener">Benzinga Pro</a>.



Read Next:



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<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/25/02/43505678/amds-ai-ambitions-face-nvidias-dominance-analysts-see-growth-but-challenges-remain">AMD&#8217;s AI Ambitions Face NVIDIA&#8217;s Dominance—Analysts See Growth, But Challenges Remain</a></li>
</ul>



Photo: Shutterstock.

Earnings

Guidance

After-Hours Center

Movers

Arm Holdings Stock Slides On Q3 Earnings: Revenue Beat, EPS Beat, Revised Guidance And More

MicroStrategy Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSTR#NASDAQ">MSTR</a>), which announced a rebrand to Strategy on Wednesday, reported fourth-quarter financial results after the market close. Here&#8217;s a look at the key<a href="https://www.benzinga.com/pressreleases/25/02/b43509300/strategy-announces-fourth-quarter-2024-financial-results-holds-471-107-btc"> details from the quarter</a>.



Q4 Earnings: Strategy reported fourth-quarter revenue of $120.7 million, missing analyst <a href="https://www.benzinga.com/calendars/earnings">estimates</a> of $123.25 million, according to <a href="http://pro.benzinga.com">Benzinga Pro</a>. The Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) treasury company reported a fourth-quarter adjusted loss of $3.20 per share.



Total revenue was down 3% year-over-year. Subscription services revenue came in at $31.9 million, up 48.4% year-over-year. Product licenses and subscription services revenue was up 18.3% year-over-year. Product support revenues fell 10.8% and other services revenue declined 20.8%.



Strategy ended the quarter with $38.1 million in cash and cash equivalents. 



&#8220;Earlier today, we announced that we are now Strategy, a new name that powerfully and succinctly conveys the universal and global appeal of our company. Strategy is at the cutting edge of innovation, championing the two most transformative technologies of the 21st century: Bitcoin and AI,&#8221; said&nbsp;Phong Le, president and CEO of Strategy.



&#8220;We have completed&nbsp;$20 billion&nbsp;of our&nbsp;$42 billion&nbsp;capital plan, significantly ahead of our initial timelines, while leading the digital transformation of capital in the financial markets. Looking ahead to the rest of 2025, we are well-positioned to further enhance shareholder value by leveraging the strong support from institutional and retail investors for our strategic plan.&#8221;



Check This Out: <a href="https://www.benzinga.com/markets/cryptocurrency/25/02/43506411/microstrategy-rebrands-as-strategy-unveils-new-logo-and-bitcoin-focused-identity">MicroStrategy Rebrands As Strategy, Unveils New Logo And Bitcoin-Focused Identity</a>



Bitcoin Holdings: Strategy said it acquired 218,887 Bitcoin in the fourth quarter for $20.5 billion. As of Dec. 31, the company held a total of 447,470 Bitcoin. Total Bitcoin holdings were up to 471,107 as of Wednesday. 



Strategy said its Bitcoin yield in full year 2024 was 74.3%. The company revised its annual Bitcoin yield target to a minimum of 15% for 2025. Strategy also introduced a &#8220;BTC $ Gain&#8221; metric and said its targeting $10 billion in 2025.



&#8220;2025 will take our evolution further with the introduction of the BTC $ Gain KPI and when we adopt fair value accounting for our Bitcoin holdings with our Q1 results, transforming our financial results and bringing more transparency to the value generation and profitability of our treasury operations,&#8221; said Andrew Kang, CFO of Strategy.



Strategy&#8217;s management team will further discuss the quarter on a call with investors and analysts at 5 p.m. ET.



MSTR Price Action: Strategy shares were up 0.20% after-hours, trading at $337.36 at the time of publication Wednesday, according to <a href="http://pro.benzinga.com">Benzinga Pro</a>.



Read Next:



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<li><a href="https://www.benzinga.com/markets/cryptocurrency/25/02/43507033/pro-crypto-trump-administration-to-clear-path-for-banks-to-offer-crypto-services">Pro-Crypto Trump Administration To Clear Path For Banks To Offer Crypto Services</a></li>
</ul>



Photo: Shutterstock.

MSTR

Strategy Q4 Earnings: Bitcoin Treasury Company Spends $20.5B On BTC, Shares Inch Higher Despite Revenue Miss

The Trump administration on Wednesday dialed back elements of its controversial proposal to <a href="https://www.benzinga.com/news/25/02/43503385/trumps-gaza-plan-for-seaside-resort-faces-global-pushback">assume control over Gaza</a>, following immediate global backlash. 



Officials are now clarifying that President Donald Trump's suggestion to <a href="https://www.benzinga.com/news/25/02/43503385/trumps-gaza-plan-for-seaside-resort-faces-global-pushback">relocate Palestinians and redevelop Gaza</a> was not a commitment to deploying U.S. troops or spending American taxpayer dollars. The New York Times <a href="https://www.nytimes.com/live/2025/02/05/world/israel-gaza-netanyahu-trump">reports </a>that key figures within the administration are emphasizing a more limited role in the plan.



What Happened: After unveiling the proposal during Israeli Prime Minister Benjamin Netanyahu's White House visit, Trump's vision for a transformed Gaza ignited international opposition. The plan, which involved relocating up to two million Palestinians and redeveloping the area into a U.S.-controlled territory, was swiftly rejected by Middle Eastern leaders and global institutions, citing violations of international law. 



Also Read: <a href="https://www.benzinga.com/trading-ideas/movers/25/02/43506109/bill-ackman-sends-unitedhealth-stock-lower-with-deleted-tweet-heres-what-he-said">Bill Ackman Sends UnitedHealth Stock Lower With Deleted Tweet: Here&#8217;s What He Said</a>



Secretary of State Marco Rubio later stated that Trump was merely suggesting reconstruction efforts rather than permanent U.S. governance over Gaza, The Times reported.



Special envoy Steve Witkoff echoed this sentiment, assuring Republican senators that Trump had no intention of putting "troops on the ground" or allocating federal funds to the effort.



Saudi Arabia issued a statement before dawn, rejecting any forced displacement of Palestinians and reaffirming that diplomatic ties with Israel remain conditional on an independent Palestinian state. Egypt and Jordan also condemned any plans to remove Gaza's population, with Jordan's King Abdullah II reaffirming his opposition in a meeting with Palestinian leadership.



Why It Matters: Trump's Gaza remarks disrupted diplomatic efforts and injected uncertainty into U.S. foreign policy in the Middle East. Beyond the immediate regional implications, market observers linked the proposal to rising demand for safe-haven assets. 



Palestinians in Gaza expressed both outrage and uncertainty, with some rejecting forced relocation outright and others citing the dire conditions caused by prolonged conflict as a reason to consider leaving. Hamas outright rejected the proposal, warning that any forced relocation would escalate tensions in a region, according to the NY Times.



Meanwhile, Gold prices <a href="https://www.benzinga.com/markets/cryptocurrency/25/02/43485292/gold-outshines-bitcoin-as-trumps-gaza-plan-us-china-tensions-fuel-rally-peter-schiff-calls">soared to a record $2,849.05 per ounce</a> as investors responded to geopolitical instability and renewed U.S.-China tensions. Economist Peter Schiff framed the surge as a contrarian signal, arguing that broader retail interest in gold is yet to come.



Read Next:



<ul>
<li><a href="https://www.benzinga.com/government/regulations/25/02/43502963/oil-drops-as-traders-doubt-iran-sanctions-trump-bark-is-far-worse-than-his-bite-analyst-says">Oil Drops As Traders Doubt Iran Sanctions: &#8216;Trump Bark Is Far Worse Than His Bite,&#8217; Analyst Says</a></li>
</ul>



Photo: Chip Somodevilla/Shutterstock.com

Government

Global

Trump Administration Softens Gaza Takeover Proposal As Middle East Allies Reject Plan

Gold's momentum shows no signs of slowing. The bullion – as tracked by the SPDR Gold Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) – continued its record-breaking run, closing at $2,860 per ounce on Wednesday, hitting the fifth straight winning session as central banks and investors pour into the metal, seeking safety amid escalating geopolitical <a href="https://www.benzinga.com/news/econ-s">tensions and economic uncertainty</a>.



In a report shared Wednesday, the World Gold Council highlighted that total gold demand, including over-the-counter investment, rose 1% year-over-year in the fourth quarter, setting a new record of 4,974 tons for 2024. 



Central banks have been leading the charge, purchasing over 1,000 tons of gold for the third consecutive year, with buying accelerating sharply in the fourth quarter to 333 tons.



&#8220;Central banks and investors drive market strength.Demand in value terms reached previously unseen levels,&#8221; the World Gold Council wrote. 



<h3 class="wp-block-heading">Why Are Central Banks Rushing To Buy Gold?</h3>



The surge in central bank gold purchases signals a strategic shift in global finance, with institutions seeking to reduce reliance on the U.S. dollar amid heightened geopolitical risks. 



The latest tensions between the U.S. and China, fueled by Donald Trump's proposed 10% import tariffs and China's retaliatory restrictions on U.S. energy imports, have only reinforced gold's status as a hedge.



Further compounding concerns, President Trump suggested the possibility of sending U.S. forces to the Gaza Strip, adding another layer of uncertainty that has investors flocking to the yellow metal.



&#8220;We believe this gold price action reflects a significant shift in the dynamics of the gold markets over the past two years,&#8221; said Imaru Casanova, portfolio manager at VanEck. &#8220;Central banks worldwide have emerged as a major driver of gold demand and gold prices, buying record amounts of gold bullion since 2022.&#8221;



<h3 class="wp-block-heading">Miners Play Catch Up, Still Undervalued Despite Gold&#8217;s Rally</h3>



Despite bullion's remarkable ascent, some of the world's largest gold miners have underperformed significantly.



John Ciampaglia, CEO of Sprott Asset Management, said, &#8220;Some of the bellwethers, the largest gold miners in the world, struggled last year. Newmont Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NEM#NYSE">NEM</a>) and Barrick Gold Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GOLD#NYSE">GOLD</a>) underperformed gold quite significantly. I think that isn&#8217;t very clear for a lot of investors because the reason that you invest in gold stocks is for their operating leverage.&#8221;



Yet, miners have recently started catching up. The VanEck Gold Miners ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GDX#NYSE">GDX</a>) rallied 2.2% on Wednesday, marking its highest level since late October and extending its winning streak to six weeks &#8211; the longest since July 2020. Year-to-date, gold mining stocks have outperformed all other industries, surging 18.9%.



Top-performing gold miners within the GDX ETF on Wednesday included: 



<figure class="wp-block-table is-style-stripes"><table style="overflow:auto; height: 90px; display: block;"><thead><tr><th>Company</th><th>1-day %chg</th></tr></thead><tbody><tr><td>SSR Mining Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SSRM#NASDAQ">SSRM</a>)</td><td>11.03</td></tr><tr><td>Calibre Mining Corp. NASDAQ: СХВ)</td><td>6.08</td></tr><tr><td>Zhaojin Mining Industry Company Limited</td><td>6.07</td></tr><tr><td>Aris Mining Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ARMN#NASDAQ">ARMN</a>)</td><td>4.42</td></tr><tr><td>Alamos Gold Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AGI#NYSE">AGI</a>)</td><td>3.68</td></tr><tr><td>Newmont Corporation</td><td>3.65</td></tr><tr><td>Westgold Resources Limited</td><td>3.42</td></tr></tbody></table></figure>



Read now: 



<ul>
<li><a href="https://www.benzinga.com/government/regulations/25/02/43502963/oil-drops-as-traders-doubt-iran-sanctions-trump-bark-is-far-worse-than-his-bite-analyst-says">Oil Drops As Traders Doubt Iran Sanctions: &#8216;Trump Bark Is Far Worse Than His Bite,&#8217; Analyst Says</a></li>
</ul>



Photo: Shutterstock

Macro Economic Events

Sector ETFs

Commodities

Econ #s

Economics

ARMN

GOLD

SSRM

Gold Extends Records As Central Banks Rush To Buy Bullion, Miners Eye Sixth Straight Winning Week

Qualcomm Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QCOM#NASDAQ">QCOM</a>) reported first-quarter financial results, which included several company records, after the <a href="https://www.benzinga.com/earnings">tmarket close Wednesday.</a>



Here are the key highlights.



What Happened: Qualcomm reported record first-quarter revenue of $11.7 billion, up 17 % year-over-year. The revenue total beat a Street consensus estimate of $10.93 billion, according to data<a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent020525&amp;t=be2bearmibe3na1" target="_blank" rel="noreferrer noopener"> from Benzinga Pro.</a>



The company reported first-quarter earnings per share of $3.41, a non-GAAP company quarterly record. The earnings per share beat a Street consensus estimate of $2.96.



Qualcomm&#8217;s revenue for the QCT segment was a record $10.1 billion, up 20% year-over-year. The segment revenue breaks down as follows:



<ul>
<li>Handsets: $7.57 billion, +13% year-over-year</li>



<li>Automotive: $961 million, +61% year-over-year</li>



<li>IoT: $1.55 billion, +36% year-over-year</li>
</ul>



This marked the sixth consecutive quarter of record revenue for the QCT automotive segment. The QCT handsets segment also had record quarterly revenue. 



QTL segment revenue was $1.5 billion, up 5% year-over-year.



"We are very pleased to have achieved quarterly revenue records, which reflect the strength of our technology, product roadmap and end-customer demand," Qualcomm CEO Cristiano Amon said. 



The company bought back $1.8 billion in stock in the first quarter. &nbsp; Read Also: <a href="https://www.benzinga.com/news/earnings/24/11/41786182/qualcomm-q4-earnings-highlights-revenue-beat-eps-beat-new-15-billion-share-buyback-announced">Qualcomm Q4 Earnings Highlights: Revenue Beat, EPS Beat, New $15 Billion Share Buyback Announced</a>



What's Next: Qualcomm guidance calls for second-quarter revenue to be in a range of $10.3 billion to $11.2 billion.



Revenue guidance breaks down as QCT $8.9 billion to $9.5 billion and QTL $1.25 billion to $1.45 billion.



Analysts are guiding for second-quarter revenue of $10.34 billion, according to data from Benzinga Pro.



The company is guiding for second-quarter earnings per share in a range of $2.70 to $2.90, versus a Street consensus estimate of $2.69.



"We are delivering growth across our diversification initiatives and remain committed to executing on our fiscal 2029 targets to achieve $22 billion of non-handset revenue," Amon said.



QCOM Price Action: Qualcomm stock was trading 1.64% higher at $175.88 ahead of the close Wednesday versus a 52-week trading range of $142.43 to $230.63. Qualcomm stock is up around 21% over the past year.



Read Next: 



<ul>
<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/25/01/43095865/qualcomms-china-tailwind-analyst-sees-positives-that-overwhelm-apple-concerns">Qualcomm&#8217;s China Tailwind: Analyst Sees Positives That &#8216;Overwhelm&#8217; Apple Concerns</a></li>
</ul>



<figure class="wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio"><div class="wp-block-embed__wrapper">
<iframe loading="lazy" title="&#x1f534; WATCH LIVE: Qualcomm Q1 2025 Earnings Call &#x7C; $QCOM" width="500" height="281" src="https://www.youtube.com/embed/wOF8EMiIp1k?feature=oembed" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen></iframe>
</div></figure>



Photo via Shutterstock.

Tech

Trading Ideas

QCOM

Qualcomm Q1 Earnings Highlights: Record Revenue, EPS Beat Estimates, 'Growth Across Our Diversification Initiatives'

Hedge fund manager Bill Ackman sent shares of UnitedHealth Group (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UNH#NYSE">UNH</a>) lower with a tweet alleging overstated profits, which comes as the health insurance company faces more scrutiny after the death <a href="https://www.benzinga.com/25/01/43195956/unitedhealth-announces-replacement-for-murdered-executive-heres-who-will-lead-insurance-unit">of an executive.</a>



What Happened: The health insurance sector faces pressure after the<a href="https://www.benzinga.com/general/health-care/24/12/42316904/unitedhealthcare-ceo-brian-thompson-fatally-shot-outside-nyc-hotel"> killing of UnitedHealthcare CEO</a> Brian Thompson put a bigger spotlight on potentially high claim denial rates, with the alleged murderer accusing the company of prioritizing profits over people.



Ackman stirred further concerns for UnitedHealth Group with a tweet on Tuesday night.



"I would not be surprised to find that the company's profitability is massively overstated due to its denial of medically necessary procedures and patient care," Ackman said in the since-deleted tweet.



Ackman suggested he would short the stock if he still shorted stocks.



The hedge funder called on the SEC to investigate UnitedHealth Group.



Now, Ackman himself could face an SEC probe. The insurance company said they contacted the SEC with concerns about Ackman's post, as reported by <a href="https://www.bloomberg.com/news/articles/2025-02-05/unitedhealth-raised-concerns-with-sec-on-ackman-post-on-profits?srnd=homepage-americas&amp;sref=TBDibEcD">Bloomberg</a>.



"Health insurance has long been subject to significant regulatory oversight and earnings caps," UnitedHealth said in a statement.



The company said that people like Ackman claiming that insurance companies "can somehow over-earn are grossly misinformed."



Read Also: <a href="https://www.benzinga.com/top-stories/24/08/40423891/buffett-musk-wood-cuban-or-ackman-who-do-investors-trust-most-with-life-savings-poll-shows-it-isnt-e">Buffett, Musk, Wood, Cuban Or Ackman: Who Do Investors Trust Most With Life Savings? Poll Shows It Isn&#8217;t Even Close</a>



Why It's Important: Ackman's assertion that profitability was "massively overstated" follows the company&#8217;s <a href="https://www.benzinga.com/general/health-care/25/01/43025159/unitedhealth-q4-earnings-revenue-falls-short-medical-ratio-rises-to-85-5-stock-falls">Jan. 16 earnings report.</a>



The company has faced many questions about its profitability and its claims approval and denial process as alleged killer Luigi Mangione allegedly targeted Thompson and UnitedHealth due to the company's position in the health insurance sector.



UnitedHealthcare is the largest individual player in Medicare Advantage with 7.8 million members, the company&#8217;s latest earnings report revealed. The company also has 4.3 million members enrolled in Medicare supplement plans through UnitedHealthcare. It also has 3 million people enrolled in standalone Part D coverage.



Thompson&#8217;s death and&nbsp;<a href="https://www.benzinga.com/24/12/42605759/luigi-mangione-faces-death-penalty-details-show-attack-planned-for-months-the-target-is-insuranceit-checks-every-box" target="_blank" rel="noreferrer noopener">the possible motive&nbsp;</a>behind his killing have drawn scrutiny to the health insurance sector, including reports of high claim denial rates by companies like UnitedHealth Group.



UnitedHealth CEO&nbsp;Andrew Witty&nbsp;acknowledged the pressure on the health insurance sector during the company&#8217;s earnings call. The industry needs to be &#8220;less confusing, less complex and less costly&#8221; for patients, he said.



Mangione faces New York state charges along&nbsp;<a href="https://www.benzinga.com/news/legal/24/12/42541669/luigi-mangione-indicted-on-first-degree-murder-charges-in-unitedhealthcare-ceos-death-senseless-act-of-violence" target="_blank" rel="noreferrer noopener">with federal charges</a>. He also faces the potential of the death penalty if found guilty of first-degree murder on federal charges.



Mangione&nbsp;<a href="https://www.benzinga.com/24/12/42655562/luigi-mangione-suspected-ceo-assassin-pleads-not-guilty-in-new-york-court" target="_blank" rel="noreferrer noopener">pleaded not guilty</a>&nbsp;in New York on Dec. 23. He is expected to appear in federal court on Feb. 21.



UNH, DIA Price Action:&nbsp;UnitedHealth stock is down 1.6% to $536.70 on Wednesday. Shares hit a daily low of $521.91 before recovering slightly. The stock has traded between $436.38 and $630.73 over the past year.



The quick drop in UnitedHealth stock to open Wednesday's trading session also saw ETFs that track the Dow Jones Industrial Average like the SPDR Dow Jones Industrial ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>) fall.



The SPDR Dow Jones Industrial ETF fell to start the day before recovering. The ETF is now up 0.3% on the day at the time of writing.



UnitedHealth is the second largest holding in the Dow Jones ETF and the second largest weighting of the index, which weighs stocks by stock price and not market capitalization.



Read Next:



<ul>
<li><a href="https://www.benzinga.com/general/entertainment/24/12/42544499/luigi-mangione-documentaries-in-the-works-from-award-winning-creators-and-possibly-rapper-50-cent" target="_blank" rel="noreferrer noopener">Luigi Mangione Documentaries In The Works From Award-Winning Creators — And Possibly Rapper 50 Cent</a></li>
</ul>



Image created using artificial intelligence via Midjourney.

Insurance

Bill Ackman Sends UnitedHealth Stock Lower With Deleted Tweet: Here's What He Said

MicroStrategy Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSTR#NASDAQ">MSTR</a>) has officially rebranded as Strategy, reflecting its <a href="https://www.benzinga.com/markets/cryptocurrency/25/01/43276613/jim-cramer-endorses-bitcoin-as-a-great-thing-but-guess-what-he-had-to-say-about-microstrategy">sharpened focus on Bitcoin</a> (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) and artificial intelligence. 



The company's new logo features a stylized "B", symbolizing its position as the largest Bitcoin Treasury Company.



It has also adopted orange as its primary brand color, aligning with Bitcoin's identity while representing energy and intelligence.



What Happened: As part of the transition, Strategy has launched new websites for its AI-powered business intelligence software at StrategySoftware.com and a new merchandise store at store.strategy.com.



Michael Saylor, founder and executive chairman of Strategy, described the change as a move toward simplification and clarity.



"Strategy is one of the most powerful and positive words in the human language. It represents a simplification of our company name to its most important, strategic core," he said.



Phong Le, President and CEO of Strategy, emphasized the company's role in two of the most transformative technologies today. 



"Our new name powerfully and simply conveys the universal and global appeal of our company, and the value we bring to the strategies of our shareholders, customers, partners, and employees," Le said.



Also Read: <a href="https://www.benzinga.com/markets/cryptocurrency/25/02/43504042/blackrock-to-launch-bitcoin-investment-product-in-europe">BlackRock To Launch Bitcoin Investment Product In Europe</a>



Why It Matters: The rebrand comes as the company continues to expand its Bitcoin acquisition strategy.



Strategy recently announced a $563.4 million preferred stock offering, pricing 7.3 million shares of 8.00% Series A Perpetual Strike Preferred Stock at $80 per share, with <a href="https://www.benzinga.com/markets/cryptocurrency/25/01/43399688/microstrategy-prices-preferred-stock-offering-at-80-per-share-seeks-563m-to-buy-bitcoin#google_vignette'">settlement expected on Feb. 5</a>.



The company plans to use the proceeds for general corporate purposes, including further Bitcoin purchases and working capital.



Strategy's Bitcoin holdings have now grown to 471,107 BTC, following its latest acquisition of 10,107 Bitcoin at an average <a href="https://www.benzinga.com/markets/cryptocurrency/25/01/43231667/microstrategys-bitcoin-buying-spree-continues-accumulates-over-10000-btc">cost of $105,596 per BTC. </a>



This marks the company's twelfth consecutive week of Bitcoin accumulation, adjusting its total cost basis to $64,511 per Bitcoin.



The firm's aggressive approach has drawn both praise and skepticism. Mizuho recently initiated coverage on the company with an ‘outperform' rating and a $515 price target, calling Strategy a "Lever for the Believer" in Bitcoin. 



However, concerns remain about the sustainability of its premium valuation relative to its underlying Bitcoin holdings.



In a move that could enable further Bitcoin acquisitions, Strategy's shareholders recently approved an increase in authorized stock, giving the company greater <a href="https://www.benzinga.com/markets/cryptocurrency/25/01/43201211/microstrategy-to-redeem-105b-in-convertible-notes-settles-conversions-with-shares">flexibility in its capital structure.</a>



Read Next: 



<ul>
<li><a href="https://www.benzinga.com/markets/cryptocurrency/25/02/43500853/is-the-sec-making-peace-with-crypto-the-key-personnel-shifts-hinting-at-why-this-may-be-the-case">Is The SEC &#8216;Making Peace&#8217; With Crypto? The Key Personnel Shifts Hinting At Why This May Be The Case</a></li>
</ul>



Image: Shutterstock

MicroStrategy Rebrands As Strategy, Unveils New Logo And Bitcoin-Focused Identity

Wall Street rose on Wednesday, with all major equity indices advancing as investors assessed the latest batch of corporate earnings and drew optimism from <a href="https://www.benzinga.com/25/02/43494246/private-employment-rises-by-183000-beats-estimates-in-january-consumer-facing-industries-drove-hiring">positive labor market data.</a>



The S&amp;P 500 gained 0.3% to 6,045 points, while the Dow Jones Industrial Average rose 0.6%, now trading less than 1% below its all-time high.



Alphabet Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>) missed quarterly earnings expectations on its cloud business, triggering a 7% drop, its worst single-day decline in a year. On the upside, Broadcom Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>) surged 6% after beating estimates, fueling a rally in chip stocks. Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) also gained 3.4%.



The Russell 2000 outperformed with a 0.9% gain, reflecting strength in smaller-cap stocks.



Fresh labor market data signaled resilience. Private sector employment rose by 183,000 in January according to the ADP report, surpassing expectations of 150,000. The services sector continued expanding,<a href="https://www.benzinga.com/economics/macro-economic-events/25/02/43499292/us-services-growth-slows-in-january-as-tariff-concerns-mount"> as per ISM survey</a>, though at a slightly slower-than-anticipated pace.



Investors piled into Treasuries, sending yields tumbling across the curve. The 30-year yield fell to its lowest level since Dec. 18, 2024, while the iShares 20+ Year Treasury Bond ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TLT#NASDAQ">TLT</a>) rallied 1.9%.



Gold extended its bull run, surging over 1% to a record $2,870 per ounce, driven by continued central bank buying. Copper jumped 2%. 



In crypto markets, Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) edged down 1.2% to $97,000. 



<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>• Russell 2000</td><td>2,310.94</td><td>0.9%</td></tr><tr><td>• Dow Jones</td><td>44,801.97</td><td>0.6%</td></tr><tr><td>• S&amp;P 500</td><td>6,054.99</td><td>0.3%</td></tr><tr><td>• Nasdaq 100</td><td>21,621.68</td><td>0.3%</td></tr></tbody></table><figcaption class="wp-element-caption">Updated at 2:00 p.m. ET</figcaption></figure>



According to&nbsp;<a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent020325&amp;t=be2bearmibe3na1" target="_blank" rel="noreferrer noopener">Benzinga Pro</a>&nbsp;data:



<ul>
<li>The&nbsp;SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>)&nbsp;rose 0.3% to $602.97.</li>



<li>The&nbsp;SPDR Dow Jones Industrial Average&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>) rose 0.5% to $447.60.</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>)&nbsp;inched 0.2% up to $525.63.</li>



<li>The&nbsp;iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) rallied 1% to $229.09.</li>



<li>The&nbsp;Real Estate Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLRE#NYSE">XLRE</a>) outperformed, up 1.6%; the&nbsp;Communication Services Select Sector SPDR Fund&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLC#NYSE">XLC</a>) lagged, down 1.2%.</li>
</ul>



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



Stocks reacting on earnings reports included: 



<ul>
<li>Amgen Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMGN#NASDAQ">AMGN</a>): up 5.9%</li>



<li>Chipotle Mexican Grill Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CMG#NYSE">CMG</a>): down 2.4%</li>



<li>Mondelez International Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MDLZ#NASDAQ">MDLZ</a>): up 0.62%</li>



<li>Simon Property Group Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPG#NYSE">SPG</a>): 3.55%</li>



<li>Electronic Arts Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/EA#NASDAQ">EA</a>): up 5.7%</li>



<li>Snap Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SNAP#NASDAQ">SNAP</a>): down 6.55%</li>



<li>IDEX Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IEX#NYSE">IEX</a>): down 9.61%</li>



<li>Walt Disney Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIS#NYSE">DIS</a>): down 1.77%</li>



<li>Uber Technologies Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UBER#NYSE">UBER</a>): down 7.31%</li>



<li>Fiserv Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FI#NYSE">FI</a>): up 7.48%</li>



<li>Boston Scientific Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BSX#NYSE">BSX</a>): up 1.87%</li>



<li>Illinois Tool Works Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ITW#NYSE">ITW</a>): down 0.62%</li>



<li>Emerson Electric Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EMR#NYSE">EMR</a>): down 2.61%</li>



<li>T. Rowe Price Group Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TROW#NASDAQ">TROW</a>): down 3.91%</li>



<li>Cencora Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/COR#NYSE">COR</a>): up 0.83%</li>



<li>CDW Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CDW#NASDAQ">CDW</a>): up 4.54%</li>



<li>Ares Management Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ARES#NYSE">ARES</a>): down 2.51%</li>



<li>Bunge Global SA (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BG#NYSE">BG</a>): down 5.05%</li>



<li>Johnson Controls International (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JCI#NYSE">JCI</a>): up 12.49%</li>



<li>Old Dominion Freight Line Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ODFL#NASDAQ">ODFL</a>): up 5.60%</li>



<li>Stanley Black &amp; Decker Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SWK#NYSE">SWK</a>): down 1.43%</li>



<li>Ares Capital Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ARCC#NASDAQ">ARCC</a>): down 3.26%</li>



<li>Criteo SA (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CRTO#NASDAQ">CRTO</a>): up 17.73%</li>



<li>Timken Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TKR#NYSE">TKR</a>): up 2.86%</li>



<li>Performance Food Group Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PFGC#NYSE">PFGC</a>): down 1.91%</li>



<li>New York Times Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NYT#NYSE">NYT</a>): down 11.56%</li>



<li>Griffon Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GFF#NYSE">GFF</a>): up 9.00%</li>



<li>Harley-Davidson Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HOG#NYSE">HOG</a>): down 0.63%</li>



<li>Capri Holdings Ltd. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CPRI#NYSE">CPRI</a>): down 13.94%</li>



<li>Azenta Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AZTA#NASDAQ">AZTA</a>): up 1.04%</li>



<li>Vishay Intertechnology Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VSH#NYSE">VSH</a>): up 8.65%</li>



<li>Spire Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SR#NYSE">SR</a>): up 0.82%</li>
</ul>



Large-cap stocks slated to report earnings after the close are Ford Motor Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/F#NYSE">F</a>), McKesson Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MCK#NYSE">MCK</a>) Qualcomm Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QCOM#NASDAQ">QCOM</a>), Molina Healthcare Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MOH#NYSE">MOH</a>), O&#8217;Reilly Automotive Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ORLY#NASDAQ">ORLY</a>), MetLife Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MET#NYSE">MET</a>), Cognizant Technology Solutions (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CTSH#NASDAQ">CTSH</a>), Corteva Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CTVA#NYSE">CTVA</a>), Allstate Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ALL#NYSE">ALL</a>), Skyworks Solutions Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SWKS#NASDAQ">SWKS</a>), Aflac Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AFL#NYSE">AFL</a>), Align Technology Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ALGN#NASDAQ">ALGN</a>). 



Read now: 



<ul>
<li><a href="https://www.benzinga.com/news/25/02/43503385/trumps-gaza-plan-for-seaside-resort-faces-global-pushback">Trump&#8217;s Plan To Turn Gaza Into Seaside Resort, Remove 2 Million Palestinians Roundly Rejected By World Leaders</a></li>
</ul>



Image: Shutterstock

Large Cap

Bonds

Broad U.S. Equity ETFs

ALGN

AMGN

ARCC

ARES

AVGO

AZTA

CMRE

CPRI

CRTO

CTSH

CTVA

GOOGL

MDLZ

NVDA

ODFL

ORLY

PFGC

REYN

RSVR

SNAP

SWKS

TECH

TROW

UBER

XLRE

Stocks Rebound, Google Eyes Worst Drop In A Year, Gold Shatters Fresh Records: What's Driving Markets Wednesday?

Uber Technologies Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UBER#NYSE">UBER</a>) shares are stuck in reverse on Wednesday after the company reported weaker-than-expected earnings and warned that a strong dollar could impact bookings <a href="https://www.benzinga.com/news/earnings/25/02/43495476/uber-q4-earnings-revenue-beat-growth-in-rides-delivery-and-autonomous-tech-ceo-calls-it-strongest-quarter">in the first quarter</a>.



What Happened: Uber reported fourth-quarter revenue of $12 billion, beating estimates of $11.77 billion, but adjusted earnings per share of 23 cents fell short of estimates of 50 cents, per Reuters.



CEO Dara Khosrowshahi called it Uber&#8217;s &#8220;strongest quarter ever&#8221; as growth accelerated across monthly active platform consumers, trips and gross bookings.



&#8220;Our performance has been powered by rapid innovation and execution across multiple priorities, including the massive opportunity presented by autonomous vehicles. We enter 2025 with clear momentum and will continue to be relentless against our long-term strategy,&#8221; the Uber CEO said.



Looking ahead, Uber guided for first-quarter gross bookings of $42 billion to $43.5 billion, held in check by an estimated 5.5% headwind to year-over-year growth due to a strong dollar. Analysts were reportedly expecting first-quarter gross bookings around $43.5 billion. The company also guided for first-quarter adjusted EBITDA of $1.79 billion to $1.89 billion, which was slightly below analyst forecasts of $1.85 billion at the midpoint. 



See Also: <a href="https://www.benzinga.com/news/25/02/43496334/sounds-like-murderville-both-mark-cuban-and-kevin-hart-passed-on-a-startup-that-grew-into-a-giant-leaving-them-regretting-it">&#8216;Sounds Like Murderville&#8217;—Both Mark Cuban And Kevin Hart Passed On A Startup That Grew Into A Giant, Leaving Them Regretting It</a>



The company&#8217;s forward outlook appears to be overshadowing Uber&#8217;s strong growth in the quarter. Here&#8217;s a look at other key metrics in Uber&#8217;s fourth-quarter report. 



Total revenue was up 20% on a year-over-year basis, while combined mobility and delivery revenue grew 23% year-over-year. Income from operations totaled $770 million, up $118 million from the prior year&#8217;s quarter. 



Monthly active platform consumers totaled 171 million in the quarter, up 14% year-over-year. Trips grew 18% year-over-year to 3.1 billion and driver and courier earnings increased 16% year-over-year. 



Uber also announced an accelerated share repurchase program to repurchase $1.5 billion worth of its common stock as part of its previously announced $7 billion buyback. 



UBER Price Action: <a href="http://benzinga.com/quote/uber">Uber shares</a> were down 6.95% at $64.95 at the time of publication Wednesday, according to <a href="http://pro.benzinga.com">Benzinga Pro.</a>



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Photo: courtesy of Uber.

Uber Stock Is Down Despite Reporting 'Strongest Quarter Ever': Here's Why Investors Are Tapping The Brakes

MicroStrategy Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSTR#NASDAQ">MSTR</a>) will be reporting its fourth-quarter earnings on Wednesday. Wall Street expects a loss of seven cents per share for the quarter and $123.25 million in revenues as the company reports<a href="https://www.benzinga.com/calendars/earnings?tickers=MSTR" target="_blank" rel="noreferrer noopener"> after market hours</a>.



The stock is up 609.97% over the past year, 16.10% YTD.



Let&#8217;s look at what the charts indicate for MicroStrategy stock and how the stock currently maps against Wall Street estimates.



Read Also: <a href="https://www.benzinga.com/insights/news/25/02/43451410/heres-how-much-1000-invested-in-microstrategy-20-years-ago-would-be-worth-today">Here&#8217;s How Much $1000 Invested In MicroStrategy 20 Years Ago Would Be Worth Today</a>



<h1 class="wp-block-heading">MicroStrategy Stock Stagnant With Mild Buying Pressure Ahead Of Q4 Earnings</h1>



MicroStrategy stock is currently in a stagnant trend with mild buying pressure, showing mixed signals across key technical indicators.



<figure class="wp-block-image size-full"><a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent020525&amp;t=be2bearmibe3na1"><img loading="lazy" decoding="async" width="626" height="490" src="https://editorial-assets.benzinga.com/wp-content/uploads/2025/02/05091157/Screenshot-2025-02-05-at-7.36.33-PM.png" alt="" class="wp-image-767288" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2025/02/05091157/Screenshot-2025-02-05-at-7.36.33-PM.png 626w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/02/05091157/Screenshot-2025-02-05-at-7.36.33-PM-300x235.png 300w" sizes="(max-width: 626px) 100vw, 626px" /></a></figure>



<a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent020525&amp;t=be2bearmibe3na1">Chart created using Benzinga Pro</a>



MicroStrategy stock at $348.31 is slightly above the eight-day simple moving average of $343.63, indicating short-term bullish momentum. However, trading below the 20-day and 50-day simple moving averages suggests weakness in the medium term, with a negative 1.53 Moving Average Convergence Divergence indicator reinforcing a bearish sentiment.



Despite this, the stock remains well above its 200-day simple moving average of $216.34, indicating strong long-term bullish support. 



The Relative Strength Index at 49.47 signals neutral momentum, suggesting the stock is neither overbought nor oversold. 



Investors may want to watch for a decisive move above key resistance levels to confirm a sustained bullish trend or further downside if short-term weakness persists.



<h1 class="wp-block-heading">MicroStrategy Analysts See 74% Upside</h1>



Ratings &amp; Consensus Estimates:<a href="https://www.benzinga.com/quote/MSTR/analyst-ratings" target="_blank" rel="noreferrer noopener"> The consensus analyst rating</a> on MicroStrategy stock stands at a Buy currently with a price target of $454.54. Mizuho and Benchmark's latest ratings imply a 74.43% upside for MicroStrategy, with an average $605 target.



MSTR Stock Price Action: MicroStrategy stock is flat on Wednesday, trading at $345.76.



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Photo: Shutterstock

Technicals

Previews

MicroStrategy Stock Caught In A Tug-Of-War: Will Q4 Earnings Tip The Scale?

President Donald Trump&#8216;s <a href="https://www.benzinga.com/25/02/43484176/trump-says-us-will-take-over-gaza-strip-were-going-to-develop-it-create-thousands-of-jobs">proposal</a> for the United States to &#8220;take over the Gaza Strip,&#8221; level it and rebuild the area after Palestinians are sent elsewhere has been rejected from just about all corners of the world, from <a href="https://www.benzinga.com/news/global">the Middle East to the Midwest</a>.



Trump&#8217;s remarks during a Tuesday press conference with Israeli PM Benjamin Netanyahu in which he suggested turning Gaza into the "Riviera of the Middle East" particularly galled world leaders who argue that moving nearly 2 million Palestinians from Gaza is tantamount to ethnic cleansing.



<h2 class="wp-block-heading">Global Condemnation Is Swift</h2>



Palestinian President Mahmoud Abbas, who resides in the West Bank town of Ramallah, weighed in. 



"We will not allow the rights of our people, for which we have struggled for decades and made great sacrifices to achieve, to be infringed upon," Abbas said, <a href="https://www-maannews-net.translate.goog/news/2133916.html?_x_tr_sl=ar&amp;_x_tr_tl=en&amp;_x_tr_hl=en&amp;_x_tr_pto=sc">according</a> to Bethlehem-based Ma'an news agency. 



"These calls represent a serious violation of international law, and peace and stability will not be achieved in the region without the establishment of the Palestinian state with Jerusalem as its capital on the borders of June 4, 1967, based on a two-state solution."



Abbas is visiting Jordan's King Abdullah, who is expected to pay Trump a visit Feb. 11.



Abdullah echoed Abbas' comments. "His Majesty the King stressed the need to stop (Jewish) settlement activities and reject any attempts to annex lands and displace Palestinians in Gaza and the West Bank, stressing the need to establish the Palestinians on their land," per a statement published by Jordan's state news agency.



Trump said Jordanian and Egyptian leaders would come around despite their rejections. So far, Egypt and other Arab nations have roundly <a href="https://www.benzinga.com/markets/equities/25/02/43420541/arab-nations-reject-trumps-controversial-gaza-plan-heres-why">rejected the idea</a> of Palestinians in Gaza being moved to their countries.



"Palestinians should not be leaving Gaza while it is being rebuilt,&#8221; said Egyptian Foreign Minister Badr Abdelatty, per <a href="https://www.cnn.com/politics/live-news/trump-netanyahu-gaza-cabinet-tariffs-02-05-25#cm6rp18oo006p3b6m5ultiy0o">CNN</a>. 



Saudi Arabia also expressed "unwavering" support for a Palestinian state and restated its long-held position that it will not commit to normalization of relations with Israel without such guarantees.



European leaders were practically unanimous in their rejection of Trump&#8217;s plan. "Any idea of displacing the people of Gaza anywhere else would be in clear contradiction with U.N. Security Council resolutions,&#8221; said Irish Foreign Minister Simon Harris. 



<h2 class="wp-block-heading">Congress Members Speak Out</h2>



Sen. Lindsey Graham (R-SC) called the proposal "problematic," adding that he didn't think sending the U.S. Army to Gaza would sit well with his constituents. "We'll see what the Arab world says, but you know, that'd be problematic at many, many levels."



Democratic Sen. Tim Kaine of Virginia called the proposal "deranged" and a "magnet for trouble."



"I don't know where this came from, but I can tell you &#8230; that would not get many expressions of support from Democrats or Republicans up here," said Kaine, a member of the Foreign Relations Committee.



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Photos via Shutterstock.

Politics

Topics

Trump's Plan To Turn Gaza Into Seaside Resort, Remove 2 Million Palestinians Roundly Rejected By World Leaders

Advanced Micro Devices, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMD#NASDAQ">AMD</a>) shares are diving Wednesday following its fourth-quarter earnings release on Tuesday. Data center segment revenues and guidance given on the company's conference call <a href="https://www.benzinga.com/tech/25/02/43487668/amd-ceo-lisa-su-on-deepseeks-ai-disruption-training-and-inference-with-less-infrastructure-is-a-good-thingbut-gpus-not-asics-will-still-power-the-future-of-ai-chips">are weighing on investors. </a>



What To Know: AMD's Datacenter<a href="https://www.benzinga.com/analyst-ratings/price-target/25/02/43495077/whats-going-on-with-amd-stock-wednesday"> fourth-quarter revenue</a> came in below analyst expectations of $4.14 billion,<a href="https://www.cnbc.com/2025/02/04/amd-earnings-report-q4-2024.html"> per</a> CNBC, and the company guided for further declines ahead. 



CFO Jean Hu said on the company's earnings call that data center revenue is expected to decline by about 7% in the first quarter, in line with the company's overall revenue.&nbsp;



Read Next: <a href="https://www.benzinga.com/25/02/43474797/amazon-faces-trumps-tariffs">Amazon &#8216;Relatively Well-Positioned&#8217; To Face Trump&#8217;s Tariffs: Analyst</a>&nbsp;



CEO Lisa Su added more color to the Q1 guidance and attributed the anticipated decline to seasonality across business segments. 



"And the way that breaks out in each of the segments assume that data center would be down just about that average, so the corporate average. We would expect the client business and the embedded business to be down more than that. Just given where seasonality is for those businesses. And then we would expect gaming business will be down a little less than that," Su said.&nbsp;



Su declined to give exact figures, but forecasted AMD's data center revenues for the first half of 2025 to be "consistent with the second half of &#8217;24."&nbsp;



Summit Insight analyst Kinngai Chan commented on investor sentiment surrounding AMD's data center segment and possible loss of market share to Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>). 



&#8220;AMD&#8217;s AI GPU is probably not tracking to investors&#8217; expectations. We continue to believe Nvidia is opening a gap against AMD in AI GPU performance and value,&#8221; Chan said, as reported by Reuters.&nbsp;



Looking Ahead: Su said that demand for AI-related compute is strong. She reiterated the previous forecast for a total addressable data center market of "upwards of $500 billion by the time we get out to 2028."



"So, yes, we are bullish on the long term, and we&#8217;ll certainly give you progress as we go through each quarter in 2025," Su added.&nbsp;



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Image: Shutterstock

AMD Shares Drop After CEO Guides Q1 Data Center Revenue Down 7%

The U.S. services sector continued to grow in January 2025, though at a slower pace than expected, highlighting uncertainty as businesses brace <a href="https://www.benzinga.com/news/econ-s">for potential tariff impacts.</a>



The latest survey from the Institute for Supply Management revealed that the Services PMI fell to 52.8% in January, down from 54% in December, and below the 54.3% forecast by economists, as per TradingEconomics. While expansion persists, the slowdown suggests businesses are feeling pressure from rising costs and trade policy uncertainties.



Despite the overall softness, January marked the second consecutive month in which all four key subindexes—Business Activity, New Orders, Employment, and Supplier Deliveries—remained in expansion territory. 



Yet, concerns over tariffs weighed on sentiment.



"Many panelists also mentioned preparations or concerns related to potential U.S. government tariff actions," said Steve Miller, chair of ISM's survey committee. 



Industry respondents echoed these worries, with contacts in professional, scientific and technical Services indicating that the threat of tariffs is leading to higher price pressures. Respondents in real estate, rental, and leasing flagged concerns about the cost of materials and project work going forward.



Weather-related disruptions also emerged as a possible factor affecting business activity and production levels, according to the survey.



<h3 class="wp-block-heading">Key ISM Services PMI Data – January 2025</h3>



<figure class="wp-block-table is-style-stripes"><table style="overflow:auto; height: 90px; display: block;"><thead><tr><th>Index Series</th><th>Jan 2025</th><th>Dec 2024</th><th>Change</th><th>Direction</th><th>Rate of Change</th></tr></thead><tbody><tr><td>Services PMI</td><td>52.8</td><td>54.0</td><td>-1.2</td><td>Growing</td><td>Slower</td></tr><tr><td>Business Activity/Production</td><td>54.5</td><td>58.0</td><td>-3.5</td><td>Growing</td><td>Slower</td></tr><tr><td>New Orders</td><td>51.3</td><td>54.4</td><td>-3.1</td><td>Growing</td><td>Slower</td></tr><tr><td>Employment</td><td>52.3</td><td>51.3</td><td>+1.0</td><td>Growing</td><td>Faster</td></tr><tr><td>Supplier Deliveries</td><td>53.0</td><td>52.5</td><td>+0.5</td><td>Slowing</td><td>Faster</td></tr><tr><td>Inventories</td><td>47.5</td><td>49.4</td><td>-1.9</td><td>Contracting</td><td>Faster</td></tr><tr><td>Prices</td><td>60.4</td><td>64.4</td><td>-4.0</td><td>Increasing</td><td>Slower</td></tr><tr><td>Backlog of Orders</td><td>44.8</td><td>44.3</td><td>+0.5</td><td>Contracting</td><td>Slower</td></tr><tr><td>New Export Orders</td><td>52.0</td><td>50.1</td><td>+1.9</td><td>Growing</td><td>Faster</td></tr></tbody></table></figure>



<h3 class="wp-block-heading">Labor Market Remains Strong In Services Sector</h3>



The job market in service-related industries remained resilient, with private employers adding 190,000 jobs in January, according to <a href="https://www.benzinga.com/25/02/43494246/private-employment-rises-by-183000-beats-estimates-in-january-consumer-facing-industries-drove-hiring">the ADP National Employment Report.</a> 



In contrast, goods-producing industries shed 6,000 jobs, signaling a stark divide between the two sectors.



Within services, trade, transportation, and utilities led hiring with 56,000 new jobs, while leisure and hospitality closely followed, adding 54,000 positions. 



This data underscores the continued strength of consumer-driven industries, even amid broader economic uncertainty.



&#8220;Consumer-facing industries drove hiring, while job growth was weaker in business services and production,&#8221; said ADP chief economist Nela Richardson. 



<h3 class="wp-block-heading">Market Reactions: Stocks Fall, Gold Shatters Records</h3>



Stocks negatively reacted following the publications of the ISM Services PMI report, with the S&amp;P 500 index – tracked by the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) – further sliding into negative territory, down 0.5% by 10:20 a.m. ET. 



Tech stocks – tracked by the Invesco QQQ Trust (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) – were 0.6% lower, as 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>) fell 8.4%, and Advanced Micro Devices Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMD#NASDAQ">AMD</a>) was down 10%, weighing on tech-heavy indices.



Outside of Wall Street, gold continued to shine, further extending its all-time highs to $2,875 per ounce. The SPDR Gold Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GLD#NYSE">GLD</a>) has now rallied 8.7% year-to-date, with the bullion marking the strongest start to the year since 1980. 



Treasury yields fell, particularly on longer-dated maturities, with yields on the 30-year Treasury down 8 basis points to 4.72%. The iShares 20+ Year Treasury Bond ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TLT#NASDAQ">TLT</a>) rallied 1.4%, eyeing its third straight session of gains. 



Other than weaker investor sentiment on risky assets, Treasuries benefited from safe-haven demand after President Donald Trump escalated tariff disputes with China and proposed a U.S.-led redevelopment plan for Gaza.



Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) was flat at $98,400. 



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GOOG

US Services Growth Slows In January As Tariff Concerns Mount

A 25-year-old engineer with ties to <a href="https://www.benzinga.com/topic/elon-musk">Elon Musk's companies </a>has been granted extensive access to critical U.S. Treasury Department payment systems, raising alarm among government officials and cybersecurity experts.



Marko Elez, a former <a href="https://www.benzinga.com/topic/spacex">SpaceX</a> &nbsp;and X employee, has administrator-level privileges on two of the government's most sensitive financial systems, the <a href="https://fiscal.treasury.gov/pam/">Payment Automation Manager</a> and the <a href="http://Secure Payment System">Secure Payment System</a>, which pay government bills and keeps personal data and credit card details confidential, respectively. Between the two of them, they control over a fifth of the U.S. economy.



Elez's permissions, according to three sources cited by <a href="https://www.wired.com/story/elon-musk-associate-bfs-federal-payment-system/">WIRED</a>, which first reported this story, extend beyond read-only access, allowing him to write code on these systems that are housed within the Bureau of the Fiscal Service (BFS).



"You could do anything with these privileges," a source familiar with the system told WIRED. A federal IT worker also told the outlet that, "A week ago, I'd have told you this could never happen. But now, who the f &#x2A;&#x2A;k knows."



<h2 class="wp-block-heading">Concerns Over Data Transfers And Political Manipulation</h2>



Sources say they fear that Elez and others tied to Musk's <a href="https://www.benzinga.com/topic/department-of-government-efficiency">Department of Government Efficiency</a> (DOGE) may funnel sensitive data to operatives within the General Services Administration (GSA). Investigations by WIRED suggest that Musk's associates, including several former Tesla and X engineers, have already gained access to the GSA using White House security credentials to access its systems in what experts call a severe security risk.



<h2 class="wp-block-heading">Why It Matters Quite A Bit</h2>



The BFS processes payments for crucial government programs, including Social Security, veteran benefits and federal tax returns, which amounted to $5.45 trillion in fiscal year 2024. Lawmakers also worry that DOGE's access could allow political interference with these payments. 



On Monday, Senate Minority Leader Chuck Schumer (D-NY) <a href="https://www.youtube.com/live/n9D7WkbdUjw" target="_blank" rel="noreferrer noopener">said</a> &#8220;before our very eyes, an unelected shadow government is conducting a hostile takeover of the federal government.&#8221;



In a <a href="https://democrats-intelligence.house.gov/uploadedfiles/rm_letter_to_potus_signed.pdf">letter</a> to President Donald Trump on Tuesday, seven ranking members of House committees demanded explanations as to whether members of DOGE have security clearances, whether they have accessed classified or sensitive information and which government agencies they are working with, <a href="https://www.news5cleveland.com/politics/president-trumps-first-100-days/congress-asks-trump-to-explain-what-elon-musk-and-doge-are-doing-at-federal-agencies">reported</a> News 5 Cleveland.



<h2 class="wp-block-heading">Political Fallout Is Just Beginning: Dems Where Are You?</h2>



The growing dispute over DOGE's access to Treasury systems has already led to high-level resignations. Acting Treasury Secretary David Lebryk, a career Treasury official who clashed with DOGE <a href="https://in.benzinga.com/25/02/43442302/elon-musk-says-elizabeth-warren-is-meddling-with-trillions-in-us-treasury-via-his-unqualified-flunkies">resigned last week</a>.



Meanwhile, <a href="https://www.benzinga.com/topic/alexandria-ocasio-cortez">Alexandria Ocasio-Cortez </a>said, &#8220;No Democrat should be voting to advance [President Donald] Trump&#8217;s nominees while all of this stuff is going on,&#8221; in a 90-minute Instagram Live <a href="https://www.instagram.com/aoc/reel/DForuR_R7AA/">video</a>. &#8220;There has to be a political price to pay and we have a responsibility as a party to block everything that is happening while they&#8217;re setting a literal match to the federal government.&#8221;



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<li><a href="https://www.benzinga.com/25/02/43484737/chatgpt-maker-openais-future-hangs-in-the-balance-as-judge-says-musks-lawsuit-will-partially-proceed-to-trial">ChatGPT-Maker OpenAI&#8217;s Future Hangs In The Balance As Judge Says Elon Musk&#8217;s Lawsuit Will Partially Go To Trial</a></li>
</ul>



Photo: Shutterstock

Ex-SpaceX Engineer With Musk Ties Granted High-Level Treasury Access — Lawmakers Raise Red Flags

Apple Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) shares are trading lower Wednesday. New reports indicate Chinese antitrust officials are preparing a potential probe into Apple&#8217;s policies and <a href="https://www.benzinga.com/25/02/43474095/apples-app-store-booms-as-chatgpt-productivity-apps-drive-revenue-growth-analyst-says">App Store fees</a>.



What To Know: The State Administration for Market Regulation is looking into Apple&#8217;s App Store policies including the fees it charges on in-app spending and the payment services the company makes available to App Store users, according to <a href="https://www.bloomberg.com/news/articles/2025-02-05/china-weighs-investigating-apple-over-app-store-policies-fees-including-30-cut?srnd=homepage-americas">Bloomberg</a>. 



People familiar with the matter reportedly said Chinese regulators have held talks with Apple executives and App Store developers since last year. The talks are reportedly focused on disputes between Apple and Chinese developers of popular apps. 



Although the talks reportedly began before U.S. President Donald Trump took office, the news comes amid rising trade tensions between the U.S. and China after Trump announced sweeping 10% tariffs on all Chinese imports. China responded with tariffs of its own. The country also launched a formal probe into Google on Tuesday within seconds of the U.S. tariffs going into effect. 



People familiar with the matter said China could launch a formal probe against Apple if the company pushes back against changes. Chinese regulators reportedly believe Apple may be charging &#8220;unreasonably high&#8221; fees and hurting competition through the barring of third-party app stores and payment methods. 



See Also: <a href="https://www.benzinga.com/markets/25/02/43495161/more-than-half-of-bill-gates-portfolio-is-tied-up-in-just-two-stocks#google_vignette">More Than Half Of Bill Gates Portfolio Is Tied Up In Just Two Stocks</a>



Last year, Apple overhauled its App Store practices in the European Union to comply with <a href="https://www.benzinga.com/news/24/03/37461571/apple-stock-is-falling-monday-whats-going-on">new requirements</a> under the Digital Markets Act. The European Commission fined Apple more than 1.8 billion euros ($1.95 billion) for preventing companies from sharing payment options outside of Apple's App Store. Apple has said it plans to challenge the ruling.



Apple has heavy exposure to China as it manufactures most of its iPhones in the country. China is also the second-biggest market for smartphones, computing and AI products after the U.S. 



Apple <a href="https://www.benzinga.com/news/earnings/25/01/43355688/apple-q1-earnings-revenue-beat-eps-beat-iphone-sales-slip-installed-base-climbs-to-all-time-high-our-best-quarter-ever">reported</a> $18.51 billion in fourth-quarter Greater China sales last week, down from $20.82 billion in the prior year&#8217;s quarter. 



AAPL Price Action: <a href="http://benzinga.com/quote/aapl">Apple shares</a> were down 1.54% at $229.35 at the time of publication Wednesday, according to <a href="http://pro.benzinga.com">Benzinga Pro</a>.



Photo: Shutterstock.

Apple Stock Is Sliding Wednesday: What's Driving The Action?

Private employers created 183,000 new jobs in January 2025, marking a slight acceleration from December&#8217;s upwardly revised 176,000 and beating market <a href="https://www.benzinga.com/news/econ-s">expectations of 150,000. </a>



The ADP National Employment Report, released Wednesday by Automatic Data Processing Inc., highlighted continued resilience in the private labor market ahead of Friday's highly anticipated non-farm payrolls report from the Bureau of Labor Statistics. Economists expect the government report to show a slowdown in hiring, with forecasts predicting a decline from December's 256,000 to 170,000 new jobs.



Nela Richardson, ADP&#8217;s chief economist, said: &#8220;We had a strong start to 2025 but it masked a dichotomy in the labor market. Consumer-facing industries drove hiring, while job growth was weaker in business services and production.&#8221;



<h3 class="wp-block-heading">Where Did Jobs Grow in January?</h3>



The latest data revealed a divergence in job creation, with gains concentrated in service-providing industries, while goods-producing sectors continued to lag.



Goods-producing industries shed 6,000 jobs in January, driven by a 13,000 payroll reduction in manufacturing. This marked the fourth consecutive month of job losses in the sector.



Service-providing industries, on the other hand, added 190,000 positions. Trade, transportation, and utilities led the way with 56,000 new jobs, while leisure and hospitality followed closely, adding 54,000 positions.



December&#8217;s private employment growth was also revised upward to 184,000, exceeding the consensus estimate of 150,000 tracked by TradingEconomics.



The ADP report signaled ongoing moderation in wage growth. Pay increases for job stayers in January edged up 4.7% year-over-year, while job changers saw salary gains of 6.8%, down from 7.1% in December.



These figures suggest that while the labor market remains strong, wage pressures are easing—a key factor for the Federal Reserve as it assesses the timing of potential interest rate cuts in 2025.



<h3 class="wp-block-heading">Market Reactions</h3>



The U.S. Dollar Index (DXY) – as tracked by the Invesco DB USD Index Bullish Fund ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UUP#NYSE">UUP</a>) – inched slightly higher minutes after the release, trimming losses for the day. 



Futures on major U.S. indices edged lower during premarket trading in New York. The SPDR S&amp;P 500 ETF Trust&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) was 0.4% lower by 8:25 a.m. ET. 



Shares of Apple Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) and Alphabet Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>) were 2.4% and 7.2% lower, respectively, weighing on tech-heavy indices. 



Gold – tracked by SPDR Gold Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GLD#NYSE">GLD</a>) – continued to extend record highs, with the bullion rising to $2,870 per ounce, approaching double-digit gains year-to-date. 



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Private Employment Rises By 183,000, Beats Estimates In January: 'Consumer-Facing Industries Drove Hiring'

Walt Disney Co&nbsp;(NYSE:&nbsp;DIS)&nbsp;reported fiscal first-quarter&nbsp;2025 revenue growth of 5% year-on-year to $24.70 billion, beating the&nbsp;<a target="_blank" href="https://www.benzinga.com/pressreleases/25/02/b43489835/the-walt-disney-company-reports-first-quarter-earnings-for-fiscal-2025" rel="noreferrer noopener">analyst consensus of $24.62 billion</a>. Adjusted EPS of $1.76 beat the&nbsp;<a target="_blank" href="https://www.benzinga.com/calendars/earnings" rel="noreferrer noopener">analyst consensus of $1.45</a>.



Disney ended the quarter with 178 million Disney+ Core and Hulu subscriptions and 125 million Disney+ Core paid subscribers, a decrease of 0.7 million over the prior quarter.



Also Read: <a target="_blank" href="https://www.benzinga.com/government/regulations/25/02/43458397/sam-altman-in-korea-openai-seeks-ai-deals-with-samsung-sk-hynix-and-softbank-amid-global-ai-boom" rel="noreferrer noopener">Sam Altman in Korea: OpenAI Seeks AI Deals With Samsung, SK Hynix, and SoftBank Amid Global AI Boom</a>



Segments: Entertainment revenue (which encompasses traditional TV networks,&nbsp;direct-to-consumer streaming, and films) increased by 9% year over year to $10.87 billion.



Sports revenue (mostly comprised of ESPN) remained flat year over year at $4.85 billion. Experiences revenue (including Disney&#8217;s theme parks and consumer products) climbed 3% year over year to $9.42 billion.



In the Entertainment segment, Linear Networks revenue declined by 7% year over year to $2.62 billion, Direct-to-Consumer revenue climbed 9% year over year to $6.07 billion, and Content Sales/Licensing and Other revenue grew by 34% year over year to $2.18 billion.



The combined DTC streaming businesses improved their profitability with an operating income of $293 million on revenue of $6.07 billion (up by 9% year over year).



Moana 2 and Mufasa: The Lion King&nbsp;helped drive $312 million in operating income at Content Sales/Licensing and Other in the quarter.



The average revenue per user for domestic Disney+ customers increased from $7.20 during the September 28 quarter to $7.55 due to a higher mix of customers on its cheaper, ad-supported tier.&nbsp;



The consolidated operating income grew 31% year over year to $5.06 billion, led by the Entertainment segment&#8217;s $1.70 billion, the Sports segment&#8217;s $247 million, and the Experiences segment&#8217;s $3.11 billion.



Disney generated a quarterly operating cash flow of $3.21 billion (up 47% year over year) and a free cash flow of $739 million (down 17% year over year).



CEO Robert A. Iger flagged outstanding box office performance from its studios, which had the top three movies of 2024, profitability boost of its Entertainment DTC streaming businesses, and the addition of ESPN tile on Disney+.



Outlook:&nbsp;For fiscal 2025, Disney reiterated <a target="_blank" href="https://www.benzinga.com/24/11/41971559/disneys-q4-boosted-by-streaming-gains-strong-box-office-and-solid-parks-performance" rel="noreferrer noopener">high-single-digit</a> growth in adjusted earnings per share (EPS) compared to 2024 versus a <a target="_blank" href="https://www.benzinga.com/calendars/guidance" rel="noreferrer noopener">consensus of $5.41</a>.



The company aims to generate around $15 billion in operating cash flow.



It expects double-digit growth in operating income for the Entertainment segment in fiscal 2025, with an increase in DTC operating income of around $875 million.



Disney expects its Experience segment to see operating income growth of 6%-8% in fiscal 2025.



The company expects its Sports segment to grow 13% in fiscal 2025.



Price Actions: DIS stock is down 0.88% at $112.30 premarket at&nbsp;the last check on Wednesday.



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Disney Q1 Earnings: Revenue And EPS Beat, Moana 2 and Mufasa Power Operating Income, 700K Drop In Streaming Subscribers

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