Key TakeawaysElectronic Arts shares are tumbling 15% in premarket trading Thursday, a day after slumping demand for its EA SPORTS FC 25 video game prompted the company to cut its outlook.The company projected net bookings to be $2.22 billion for the fiscal third quarter, down from $2.4 billion to $2.55 billion previously.EA also cut its fiscal 2025 net bookings forecast to a range of $7 billion to $7.15 billion, down from $7.5 billion to $7.8 billion. Electronic Arts (EA) shares are tumbling in premarket tr ...

Shares of GE Aerospace (GE) surged in premarket trading Thursday after the company reported fourth-quarter results far above analysts' estimates. The manufacturer of airplane engines and other parts reported net income of $1.9 billion, or $1.75 per share, on $10.81 billion in revenue. Analysts had expected profit of $1.2 billion, or $1.10 per share, on $10.01 billion in revenue, according to estimates compiled by Visible Alpha. GE Aerospace's revenue comes largely from two units, commercial engines and ser ...

Market Performance - Major US equity indexes rose driven by AI infrastructure investments and strong earnings results with the S&P 500 gaining 0.6%, the Dow up 0.3%, and the Nasdaq climbing 1.3% [2] - The S&P 500 advanced 0.6% on January 22, 2025, following announcements of major AI investments and positive earnings releases [10] Netflix (NFLX) - Netflix reported better-than-expected Q4 sales and profits, with shares surging 9.7% and adding 19 million new subscribers [3] - The company boosted its share repurchase program by $15 billion and increased its 2025 revenue outlook [3] - Analysts expect minimal resistance to Netflix's subscription price hikes due to strong programming content [3] Monolithic Power Systems (MPWR) - Shares of Monolithic Power Systems jumped 8.0%, continuing gains from the previous week [4] - Analysts highlighted expectations for revenue growth and margin expansion, with the semiconductor industry's shift toward higher-power modules supporting long-term growth [4] Moderna (MRNA) - Moderna shares surged 7.3% after receiving nearly $600 million in additional funding from the US Department of Health and Human Services for mRNA vaccine development [5] - The funding aims to advance vaccines against pandemic-potential influenza strains, including H5N1 [5] - Larry Ellison's comments on AI's potential in cancer vaccine development provided an additional boost [5] Seagate Technology Holdings (STX) - Seagate shares rose 6.8% following a strong earnings report, topping quarterly sales and profit estimates [6] - Analysts noted improving demand trends and potential underestimation of the company's gross margin trajectory [6] Edison International (EIX) - Edison International shares sank 6.3%, the worst performer in the S&P 500, due to legal challenges related to wildfires [7] - A judge ordered the company to preserve evidence related to the Eaton fire, with lawsuits alleging its equipment may have contributed to the fire [7] First Solar (FSLR) - First Solar shares fell 6.3%, extending losses after President Trump announced the elimination of renewable energy initiatives [8] - The stock has declined around 20% since Trump's election victory in November [8] Renewable Energy Sector - President Trump's executive orders paused permitting processes for wind energy projects, impacting companies like AES Corp and Dominion Energy, whose shares dropped 5.3% [9] - The policy shift weighed on shares of companies exposed to onshore and offshore wind power generation [9]

Netflix's Performance and Market Impact - Netflix added 19 million subscribers in the fourth quarter, contributing to a total of over 300 million members by the end of the year [1][2] - The company raised subscription prices, including increasing the ad-supported plan from $6.99 to $7.99 in the US, which is expected to drive revenue growth with minimal pushback [1][4] - Netflix's stock surged nearly 10% to an all-time high of $953.99 following the announcement, leading gains on the S&P 500 [3][4] Analyst Expectations and Price Targets - JPMorgan and Wedbush maintained "buy" or equivalent ratings and raised their price targets to $1,150, while Bank of America increased its target to $1,175 [3] - Analysts anticipate that price increases will drive revenue growth in 2025, with the ad-supported tier expected to further boost revenue in 2026 [4] Ad-Supported Tier Performance - Netflix's ad-supported tier accounted for 55% of all fourth-quarter signups in markets where the plan was available, highlighting its growing popularity [2]

Company and Industry Analysis - Oracle shares surged 7 5% to around $185 50 on Wednesday following a 7% gain the previous day driven by news of a joint venture with OpenAI and SoftBank to build AI infrastructure [2][4] - The joint venture named Stargate is expected to involve investments of up to $500 billion over the next four years aiming to strengthen American AI leadership and create thousands of US jobs [3] - Oracle's stock has risen nearly 70% over the past year supported by growing demand for its AI-integrated cloud and database offerings [4] Technical Analysis - Oracle shares broke out of a falling wedge pattern on Tuesday with the highest trading volume since early September signaling potential for further upward movement [5] - The relative strength index (RSI) has moved above the 50 threshold indicating improving price momentum but remains below overbought levels suggesting room for further price exploration [6] - Key overhead resistance levels to watch include $178 near the 50-day moving average and $196 near previous peaks from late November and early December [7][8] - Important support levels to monitor during pullbacks are $154 near the January swing low and $145 near multiple peaks from June to early September [9][10]

Market Reaction - Shares of AI-related companies surged following the announcement of a $500 billion joint venture involving Oracle, OpenAI, and SoftBank, driven by optimism around increased AI investments [1][5] - Oracle shares jumped close to 8% in intraday trading, while Microsoft shares rose nearly 4% [3] - Arm Holdings shares soared 15%, and Nvidia climbed close to 5% as key technology partners for the initiative [3] - Shares of Nvidia partners and other companies in the AI ecosystem, including Dell, TSMC, and Hewlett Packard Enterprise, also gained [4] Project Details - The joint venture, named Stargate, aims to build AI infrastructure in the US with an initial investment of $100 billion, a portion of which is expected to go to Oracle's data centers in Abilene, Texas [2] - The project is seen as a significant revenue opportunity for Oracle, potentially starting this year [2] - Microsoft is viewed positively as a backer for OpenAI and a partner in the initiative [2] Industry Outlook - The Stargate project is anticipated to mark the beginning of a wave of massive AI investments in the US, with more announcements expected in the coming weeks [4][5] - The initiative highlights the growing importance of AI infrastructure and the role of key technology partners like Nvidia, Microsoft, and Arm in driving innovation [3][5]

Company Performance - Shares of Grail surged 20% intraday, making it the biggest gainer in the Nasdaq 100 index [1] - Grail shares had been little changed since the company's June split from Illumina until soaring Wednesday [3] Financial Projections - Grail projected fiscal 2024 revenue of $124 million to $126 million [3] - The company expects fiscal 2025 U.S. sales of its Galleri blood test to rise 20% to 30% year-over-year [3][4] - Grail expects to burn through less than $320 million over fiscal 2025 [3] - The company has $767 million cash on hand to end 2024, providing runway into 2028 [3] Business Background - Grail was spun off from Illumina Health following legal battles with regulators and started trading on its own last June [2] - The company is developing a number of early detection cancer screening tests [2][4] Market Position - Grail's stock performance surpassed Arm Holdings (ARM) and Netflix (NFLX) in recent trading [1]

Core Insights - Shares in The Travelers Companies (TRV) increased due to higher-than-expected quarterly results driven by increased premiums [1][4] - The company reported fourth quarter earnings per share of $8.96, surpassing the $6.67 average estimate from analysts [1] - Revenue for the quarter rose by 10% to $12.0 billion, also exceeding estimates [1] Financial Performance - Core income reached a record $2.1 billion, attributed to strong growth in earned premiums and excellent profitability [2] - Net written premiums increased by 7% year-over-year across business insurance, bond & specialty insurance, and personal insurance segments [2] - The combined ratio, a key profitability measure, rose to 83.2%, an increase of 2.6 percentage points [2][4] Market Reaction - Travelers shares gained over 3% in intraday trading and have appreciated approximately 17% over the past year [3]

Key TakeawaysNetflix shares popped Wednesday after the company reported 19 million new subscribers in the fourth quarter and lifted its 2025 outlook.The streamer also raised its subscription prices, which analysts say is likely to drive revenue growth with "little pushback."Analysts at several firms raised their price targets on the stock following the results. Netflix (NFLX) is entering 2025 “firing on all cylinders” after adding 19 million subscribers in the fourth quarter and raising its subscription pri ...

Financial Performance - Procter & Gamble's fiscal 2025 second-quarter net sales grew 2% year-over-year to $21.88 billion, surpassing Wall Street estimates of $21.59 billion [1] - Net income for the quarter was $4.63 billion, or $1.88 per share, matching expectations [1] - The company's shares rose 3% following the earnings report [1][3] Segment Performance - Baby, Feminine & Family Care segment, including Tampax and Pampers, saw a 3% increase in sales [2][3] - Fabric & Home Care segment, featuring Tide and Febreze, and Health Care segment, including Crest and Pepto Bismol, both experienced 2% sales growth [2] - Grooming segment, with Gillette and Venus razors, reported a 1% revenue increase [2] - Beauty segment, including Head & Shoulders and Old Spice, showed flat sales [2] Outlook and Share Repurchase - Procter & Gamble reaffirmed its fiscal 2025 outlook, projecting sales growth of 2% to 4% from $84 billion in the previous year [3] - The company expects earnings per share (EPS) growth of 10% to 12% from $6.02 in fiscal 2024 [3] - Procter & Gamble plans to repurchase $6 to $7 billion worth of shares in the current fiscal year [3]