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Good Morning!
Happy Wednesday! Let’s have a great day:
👉 Amazon’s earnings are in
👉 Johnson & Johnson settles
👉Biden forgives student loans
BREAKING: Private payrolls increased by 192,000 in April, which is more than expected
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EARNINGS: AMAZON
Amazon's cloud division reported its strongest sales growth in a year, indicating a recovery as businesses spend more on technology, including artificial intelligence. Despite this, Amazon's overall sales forecast for the next quarter fell short of expectations, highlighting concerns about cautious consumer spending.
Source: CNBC
Amazon announced a first-quarter operating profit of $15.3 billion with a 13% revenue increase to $143.3 billion, exceeding estimates. Amazon Web Services (AWS) stood out with $25 billion in sales, up 17% from last year. AWS is rebounding from last year's slowdown, with a record operating margin of 37.6%. For the upcoming quarter, Amazon predicts revenue between $144 billion and $149 billion, below analysts' expectations of $150.2 billion. To boost growth, Amazon is expanding other business areas, like advertising, which rose 24% to $11.8 billion this quarter.
🎯 GRIT TAKE: Amazon had a good earnings …upgrade to VIP now to read the full GRIT Take!
SETTLEMENT: Johnson & Johnson
Johnson & Johnson has announced a $6.47 billion proposed settlement to address allegations that its talc products, like baby powder, contain asbestos and cause ovarian cancer. This plan involves a subsidiary bankruptcy filing, intended to resolve about 54,000 lawsuits centralized in New Jersey. Previous attempts to settle through bankruptcy were unsuccessful.
Source: NPR
J&J asserts that its products are safe, but aims for a 75% approval rate from claimants to conclude the settlement and end future lawsuits. This deal would also build on prior settlements related to mesothelioma, a cancer linked to asbestos. The company has faced significant legal verdicts, including a $2.12 billion award to 22 women, and continues to defend itself in ongoing litigation.
BIDEN: Cancels Student Loans
The Biden administration announced it will cancel over $6.1 billion in student loans for 317,000 former Art Institute students. This applies to those who attended between 2004 and 2017.
Source: VOX
The U.S. Department of Education found that the schools, managed by Education Management Corporation (EDMC), misled students about job prospects and earnings. The cancellation will be automatic for those eligible, whether they applied for it or not. EDMC, which owned the schools, sold them in 2017, declared bankruptcy in 2018, and the campuses have since closed. Goldman Sachs was once a major shareholder in EDMC.
Headlines You Need To Know: 🎙
Chart of the Day
📊 U.S. Inflation
Source: Visual Capitalist
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