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| 1 | | Walmart ($WMT) exceeded quarterly earnings and revenue forecasts, with a revenue of $161.51B compared to the expected $159.50B and adjusted earnings per share of $0.60, surpassing the anticipated $0.52. Net income rose to $5.10B, or $0.63 per share, from $1.67B, or $0.21 per share, a year ago. More: - Walmart U.S. experienced a 22% YoY growth in e-commerce sales, attributed to store pickup, online order delivery, and the expansion of its third-party marketplace.
- Walmart U.S. witnessed a 3.8% rise in same-store sales (excluding fuel), while Sam's Club experienced a 4.4% increase yearly (excluding fuel).
- Walmart's grocery division grew due to the price disparity between dining out and cooking at home, drawing in a larger share of affluent customers.
- The company's worldwide advertising arm expanded by 24%, with the U.S. sector experiencing a 26% rise.
- One-third of Walmart's increased operating income from the previous year stemmed from newer ventures like advertising and the Walmart+ subscription service.
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What the numbers say: The inflation report showed a slower pace of monthly price growth at 0.3%, compared to 0.4% in the two previous months, prompting record highs in the S&P 500, Nasdaq Composite, and Dow Jones Industrial Average. The latest Consumer Price Index showed a 3.4% increase for the 12 months ending in April, with the S&P 500 rising over 1.2% to close above 5,300 for the first time. Relevance: The stock market surged on optimistic inflation data, indicating reduced chances of Federal Reserve interest rate hikes. Investors see subdued inflation and lackluster April retail sales as potential factors for a future interest rate reduction, anticipating it would bolster economic growth and corporate earnings. More data: Gasoline and housing costs rose while grocery prices fell. Core CPI increased by 3.6% annually, with motor vehicle insurance notably higher. Despite some improvement, housing expenses remained a concern, but overall inflation pressures eased slightly, potentially impacting consumer spending. | | | |
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| 3 | | Under Armour ($UA) announced a restructuring plan, forecasting a 15% to 17% drop in North America sales for the current fiscal year, a 10% sales decrease, and a 96% profit decline for its fourth fiscal quarter compared to the previous year. Stephanie Linnartz resigned as CEO, with founder Kevin Plank returning, causing shares to fall around 10% in premarket trading. More: - Fourth-quarter adjusted earnings per share were $0.11, surpassing the anticipated $0.08, with revenue meeting expectations at $1.33B.
- Quarterly net income stood at $6.6M, or $0.02 per share, a significant decline from the prior year's $170.6M, or $0.38 per share.
- The restructuring plan, anticipated to incur costs ranging from $70M to $90M, involves layoffs, although the precise number of job reductions was not revealed.
- Under Armour intends to reduce promotions and discounts to enhance gross margins by 0.75 to 1 percentage point for the fiscal year.
- The company anticipates diluted earnings per share ranging from $0.02 to $0.05, with adjusted earnings per share between $0.18 and $0.21, contrasting with the anticipated $0.52.
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| 4 | | At its annual Go-Get showcase, Uber ($UBER) unveiled new product updates to improve the user experience and draw in more riders, including Uber Shuttle, which lets users reserve affordable shuttle seats to different destinations from select U.S. locations. The Uber Caregiver feature also allows caregivers to book rides and order supplies for those they care for, with applicable insurance benefits to reduce costs. More: - Uber Eats will now feature Costco products, offering discounts for members and non-members and extra savings for Uber One subscription members.
- Users can now schedule shared rides in advance, offering savings of approximately 25% compared to standard UberX fares.
- Uber plans to offer discounted Uber One memberships for college students, granting them exclusive deals and discounts on orders from popular restaurants.
- Uber Eats introduces the Lists feature, enabling users to curate and share favorite restaurants and meals, enhancing app usability.
Note: Inside.com Founder and CEO Jason Calacanis is an investor in Uber. | | | |
| 5 | | Netflix's ($NFLX) ad-supported tier has soared to 40 million global monthly active users, nearly doubling from 23 million in January, with 40% of new signups in regions offering the ad tier opting for the cheaper plan. This move, combined with a crackdown on password-sharing, is part of Netflix's strategy to increase revenue amid a slowdown in subscriber growth, now totaling 270 million worldwide. More: - Netflix will introduce its advertising platform, ending its exclusive partnership with Microsoft but retaining multiple ad tech partners like The Trade Desk and Google Display & Video 360.
- The ad platform will undergo testing in Canada this year and is projected to debut in the U.S. by Q2 2025, followed by a global rollout by the end of the same year.
- Netflix made its debut in live sports by securing a deal to stream two NFL games on Christmas Day 2024, with the possibility of adding more games in the future.
- Netflix's agreement to stream NFL games is estimated to cost around $75M per game, although precise details of the deal remain undisclosed.
- Disney+ leads with 117.6 million global subscribers, surpassing Warner Bros. Discovery's Max (99.6 million), Comcast's Peacock (34 million), and Paramount+ (71 million).
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| 6 | | Microsoft's ($MSFT) emissions have surged by nearly 30% since 2020, driven mainly by data center construction for AI and cloud computing. While direct and energy-related emissions decreased by 6.3% in 2023, supply chain emissions, constituting the majority, spiked by 30.9%, leading to an overall 29.1% rise. More: - Microsoft strives to reach carbon neutrality and zero waste by 2030 but faces hurdles due to the energy-intensive aspects of generative AI.
- Microsoft plans to mandate some suppliers to use entirely carbon-free electricity by 2030 and invest $10B in renewable energy projects with Brookfield Asset Management.
- Emissions from constructing new data centers result from using carbon-intensive materials, such as cement and steel, and hardware production.
- By 2030, Microsoft pledges to purchase all the zero-carbon energy needed to match 100% of its electricity usage.
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 | Freelance Writer | | Shriram is pursuing Master’s in Business with Marketing at Warwick Business School. He worked as a Senior Consultant in Tech and Political Consultancies before his Masters. He is passionate about Tech, Marketing, Strategy, Anthropology and Politics. He is also the Postgraduate Ambassador for Warwick Business School. | | This newsletter was edited by Shriram Jeevakumar | |
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