• Markets bounced back Wednesday as investors turned their attention to earnings, shaking off earlier trade war fears. The Dow led with a 0.7% gain, while the S&P 500 rose 0.4% and the Nasdaq barely managed to stay in the green. Big Tech struggled after disappointing earnings, but a standout chipmaker (Nvidia) helped lift sentiment.
• Despite the rebound, investors are still treading carefully with trade tensions looming. The focus remains on corporate performance, but any new tariff threats could easily rattle the market again.

Winners & Losers

What’s up 📈

• Mattel surged 15.33% after crushing earnings estimates, reporting 35 cents per share on revenue of $1.65 billion, well above analyst forecasts. ($MAT)
• Johnson Controls International jumped 11.28% after posting a strong quarter and issuing solid fiscal guidance. ($JCI)
• Super Micro Computer climbed nearly 8% after announcing full production availability of its AI data center powered by Nvidia’s Blackwell platform. ($SMCI)
• Electronic Arts rose more than 7.60% after reporting a strong earnings beat and announcing a $1 billion stock buyback. ($EA)
• Workday climbed 6.33% after announcing a workforce reduction of 8.5%, boosting investor confidence. ($WDAY)
• Novo Nordisk gained nearly 3.76% after beating fourth-quarter profit expectations, posting net profit of 28.23 billion Danish kroner versus the 26.09 billion projected. ($NVO)
• Toyota Motor advanced 4.15% after announcing a new EV-focused company in China, despite third-quarter operating profit falling short of estimates. ($TM)
• Nvidia popped over 5.21% alongside Super Micro Computer after news of the latter's AI data center powered by Nvidia’s platform. ($NVDA)

What’s down 📉

• FMC Corporation plummeted 33.53% after issuing weak first-quarter guidance, projecting earnings of 5 to 15 cents per share versus analyst expectations of 77 cents. ($FMC)
• Alphabet sank 7.29% after missing fourth-quarter revenue expectations and announcing plans to invest $75 billion in AI, more than the anticipated $58.84 billion. ($GOOGL)
• Uber dropped 7.56% after missing earnings expectations and providing soft guidance for gross bookings in the first quarter. ($UBER)
• Advanced Micro Devices tumbled 6.27% after reporting disappointing data center segment results, despite an overall earnings beat. ($AMD)
• Match Group slid 7.92% after issuing weak first-quarter revenue guidance and announcing a new CEO. ($MTCH)
• PDD Holdings pulled back over 3.43% following uncertainty surrounding the U.S. Postal Service’s temporary suspension of inbound packages from China and Hong Kong. ($PDD)
• Chipotle Mexican Grill declined 2.56% despite an earnings beat, as its same-store sales growth forecast disappointed investors. ($CMG)

MicroStrategy Drops the ‘Micro,’ Doubles Down on Bitcoin

MicroStrategy is no more—meet Strategy. The company officially rebranded ahead of its Q4 earnings, shedding the “Micro” and leaning fully into its Bitcoin identity. CEO Phong Le called it a reflection of the company’s “strategic core,” but let’s not kid ourselves—Strategy isn’t just a software firm anymore. With 471,107 bitcoins now sitting on its balance sheet, worth about $46 billion, it’s more of a corporate crypto whale than anything else. And just in case the new name wasn’t enough of a signal, the company rolled out a fresh logo featuring a Bitcoin-inspired orange “B.” Subtle.

Big Bitcoin Buys, Bigger Debt Load

Strategy hasn’t just been HODLing—it’s been aggressively adding to its pile. Over the last quarter, the company scooped up 218,887 bitcoins for $20.5 billion, burning through debt and stock sales like an overleveraged crypto trader. That’s part of a larger plan to raise $42 billion in capital over three years, and so far, it’s already hit the halfway mark, well ahead of schedule. Investors are torn—some see it as a masterstroke in capital allocation, while others worry that tying a public company’s fate so closely to Bitcoin’s volatility is a ticking time bomb.

Earnings? Oh Right, Those Exist

While Bitcoin continues to dominate Strategy’s story, the company did technically report earnings. It posted a brutal $670.8 million loss, largely due to a $1 billion write-down on its crypto holdings, thanks to outdated accounting rules that don’t let companies mark digital assets up, only down. Revenue also dipped 3% year-over-year to $120.7 million, missing estimates. But starting this quarter, new accounting rules will let firms report Bitcoin at fair value, which could make Strategy’s books look a lot less painful going forward.

What’s Next? The rebrand cements what everyone already knew—this company isn’t about software anymore. With its eyes locked on Bitcoin and an aggressive capital-raising strategy in full swing, Strategy is doubling down on its crypto-fueled vision.

Market Movements

• ❌ Nissan to Reject Honda Merger Terms: Nissan is set to turn down Honda’s proposed merger, which would have made it a subsidiary rather than an equal partner in a holding company. Nissan shares tumbled 4.9% on the news, while Honda’s stock surged 8.2%. ($HMC)
• 📉 Temu Shifts to U.S. Warehouses After Tax Loophole Closure: Temu is prioritizing products from U.S. warehouses in its app after President Trump revoked the de minimis trade exemption, which had allowed duty-free imports under $800. The move helps Temu speed up delivery while reducing its reliance on direct Chinese shipments. ($PDD)
• 🏢 Walmart Buys Pennsylvania Mall for $34M: Walmart has acquired the Monroeville Mall in Pennsylvania in an all-cash deal worth $34 million. The retailer, working with Cypress Equities, is expected to redevelop the property for retail, entertainment, and housing purposes. ($WMT)🚗 Ford Beats Q4 Estimates but Warns of a Tough Year Ahead: Ford surpassed Wall Street’s expectations for Q4, reporting $10.2 billion in adjusted EBIT and $5.9 billion in net income. However, the company issued cautious 2025 guidance, citing market headwinds, cost reductions, and weaker demand in the first half of the year. ($F)🛑 Google Ends Diversity Goals, Citing Federal Compliance: Google is eliminating its diversity hiring and promotion targets, citing new federal contractor rules and recent executive orders. The decision follows similar moves by Meta, Amazon, and Walmart as corporate DEI policies face increased scrutiny. ($GOOGL)
• 📉 China's Apple Probe Weighs on Shares: Apple shares fell 2.7% premarket following reports that Chinese regulators are considering an investigation into the company’s App Store fees and restrictions on third-party payments. The move could further strain Apple’s business in China, one of its largest markets. ($AAPL)
• 🚀 Boeing’s Starliner Program Faces More Losses: Boeing has racked up over $2 billion in losses on its Starliner spacecraft project, with a $523 million charge in 2024 alone. Ongoing propulsion issues forced NASA to delay the crewed mission again, raising concerns about the viability of the program. ($BA)
• 📺 Fox Plans New Streaming Service: Fox Corporation is preparing to launch a subscription-based streaming platform by year-end, focusing on sports and news content. The move comes after the company scrapped its joint sports streaming venture, Venu, to cut costs. ($FOXA)
• ⚖️ Samsung Chairman Acquitted in Fraud Case: A Seoul appeals court cleared Samsung Electronics Chairman Jay Y. Lee of fraud and stock manipulation charges. While the ruling removes legal risks, Lee now faces mounting pressure as Samsung navigates fierce AI chip competition. ($SSLNF)

Earnings Galore From Qualcomm, Uber, Disney, Novo Nordisk & Arm Holdings

Qualcomm Drops 4% as Smartphone Market Outlook Disappoints
Qualcomm fell 4.58% in extended trading after the chip giant’s Q1 earnings revealed a shaky outlook for smartphone demand. While the company posted a revenue beat—$11.7 billion versus the expected $10.9 billion—investors focused on its forecast of $10.3 billion to $11.2 billion for Q2, which was lower than some analysts had hoped. Qualcomm’s licensing revenue, a key indicator of phone sales, also came in below projections, fueling concerns that smartphone shipments will stagnate in 2025.

Uber Tumbles 7.56% on Weak Bookings Forecast
Uber’s stock took a 7.56% hit after issuing a lackluster Q1 gross bookings forecast of $42 billion to $43.5 billion, falling short of prior estimates. The ride-hailing giant cited currency headwinds, legal expenses, and bad weather as key drags on its outlook. This overshadowed its otherwise strong Q4, where bookings grew 18% to $44.2 billion. Investors are now questioning whether Uber is simply setting a low bar to beat or if rising insurance costs and regulatory pressures will continue to weigh on its growth.

Disney Slips 2.44% Despite Beating Expectations
Disney beat earnings estimates with EPS of $1.76, well ahead of the expected $1.42, and revenue rising 5% to $24.7 billion. Streaming was the bright spot, with Disney+ and Hulu generating $293 million in profit after price hikes. But investors fixated on a slight decline in Disney+ subscribers and warnings of another drop next quarter, dragging the stock down 2.44%. CEO Bob Iger assured investors that streaming margins would keep improving, but the market wasn’t fully convinced.

Novo Nordisk Jumps 3.76% as Ozempic Demand Surges
Novo Nordisk surged 4.54% after forecasting 16%-24% revenue growth for 2025, fueled by skyrocketing demand for its blockbuster diabetes and weight-loss drugs, Ozempic and Wegovy. While the company expects some supply constraints to persist, it reassured investors that production will ramp up. The strong outlook helped calm fears about increasing competition from Eli Lilly, whose weight-loss drug Zepbound had triggered concerns about market share erosion.

Arm Holdings Sinks 6.82% on Muted AI Forecast
Arm Holdings slid 6.82% after issuing a cautious revenue forecast of $1.18 billion to $1.28 billion for Q1, disappointing investors hoping for stronger AI-fueled growth. The outlook followed a weak report from AMD earlier this week, sparking fears that the AI boom may not be as explosive as expected. Despite beating Q4 estimates—revenue jumped 19% to $983 million—investors weren’t thrilled with the chip designer’s conservative stance on AI-driven demand.

On The Horizon

Tomorrow

The labor market check-in continues tomorrow with the latest jobless claims report. Last week, new filings for unemployment benefits dropped to 207,000, beating forecasts of 220,000—another sign of a resilient job market. But ongoing claims, which track those still looking for work, have been creeping up, and economists are watching closely for any cracks in hiring trends.

On the earnings front, it’s a packed day with updates from Eli Lilly ($LLY), Bristol-Myers Squibb ($BMY), AstraZeneca ($AZN), Kellanova ($K), Yum Brands ($YUM), Cloudflare ($NET), Roblox ($RBLX), Under Armour ($UA), Pinterest ($PINS), Affirm ($AFRM), Honeywell ($HON), Peloton ($PTON), Hershey ($HSY), Take-Two Interactive ($TTWO), and Skechers ($SKX).

Before Market Open:

• Roblox has mastered the art of blending gaming and social media, making it a favorite among the middle school elite. The platform has nailed monetization while keeping safety a priority, fueling a stock surge over the past year. But with its valuation climbing, some investors may hesitate—though Wall Street sees plenty of room for growth if it continues dominating the digital playground. Consensus: -$0.45 EPS, $1.37 billion in revenue. ($RBLX)

After Market Close:

• Amazon faces challenges from all angles—AI could shake up its cloud empire, and tariffs might dent its e-commerce machine. But size matters, and Amazon’s scale gives it a serious edge. With a booming ad business, top-tier margins, and industry-leading efficiency, it’s no surprise that nearly every analyst calls it a buy. Consensus: $1.49 EPS, $187.25 billion in revenue. ($AMZN)