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Good Morning! 👋
Happy Friday! It has been a wild week in the markets.
👉 Coinbase finally profits (again)
👉 DoorDash earnings are in
👉 USA back to the moon
COINBASE: First Profit Since 2021
Coinbase announced its first quarterly profit since 2021 on Thursday, thanks to high trading volumes driven by renewed interest in cryptocurrencies, causing its shares to jump nearly 13% post-market. This surge in crypto enthusiasm followed the U.S. Securities and Exchange Commission's approval of the first spot bitcoin ETFs, which, alongside expectations of approval, had already lifted bitcoin's price by 57% in the last quarter of 2023. This led to a 64% increase in Coinbase's transaction revenue, reaching $529.3 million in Q4.
Source: Bloomberg
Coinbase expects strong performance in its subscription and services sector for the next quarter, projecting revenues between $410 million and $480 million. The company's profit for the quarter ending December 31 was $273.4 million, or $1.04 per share, significantly beating the predicted loss of 1 cent per share. This turnaround is attributed to both a surge in trading activity and income from its partnership with fintech firm Circle, especially from interest on USD Coin (USDC) reserves, benefiting from the Federal Reserve's rate hikes.
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DoorDash: Earnings Are In
DoorDash exceeded fourth-quarter expectations with a 23% jump in orders to 574 million, driven by expanding into new markets and attracting record monthly users. The gross order value rose 22% to $17.6 billion, surpassing forecasts. Despite a 28% rise in stock price this year, shares fell by up to 12% after hours.
Source: CNBC
The company expanded its offerings to include groceries and alcohol, growing to over 37 million monthly active users and increasing subscription memberships by 20% to over 18 million. Revenue grew 27% to $2.3 billion, slightly above estimates, with a significant reduction in a net loss to $156 million from $642 million last year. DoorDash added over 100,000 new merchants, broadening its services. For the next quarter, it expects gross order values between $18.5 billion and $18.9 billion, with adjusted EBITDA slightly below analyst expectations.
MOON: First U.S. Landing Since 1972
Intuitive Machines launched its inaugural moon mission from Florida, aiming for the first U.S. lunar landing since 1972. The mission, aboard SpaceX's Falcon 9 rocket, carries the "Odysseus" lander with 12 payloads, including six for NASA.
This effort is part of NASA's initiative to support lunar exploration and the Artemis crew program. The company aims to achieve 16 milestones, with a successful moon landing as the ultimate goal. The lander is expected to reach the moon on Feb. 22, targeting a landing near the "Malapert A" crater.
Headlines You Need To Know: 🎙
Wholesale prices rise in January
Navalny dies in Russian prison
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Ford CEO tells Wall Street to forget Tesla
Hidenburg’s latest short report
The Profit
Marcus Lemonis, a savvy entrepreneur, made his fortune by transforming the RV industry. Born in Beirut and adopted by a Miami family, he grew up around their automotive business. Seeing potential in struggling RV companies, Marcus merged Holiday RV Superstores with Camping World and acquired Good Sam Enterprises, building an RV empire.
Source: Pinterest
Beyond RVs, he starred in "The Profit" on CNBC, investing in and saving small businesses by focusing on their people, processes, and products. Through smart investments and a knack for turning businesses around, Marcus built his wealth and became a symbol of entrepreneurial success. He has built a net worth of over $500 million.
Chart of the Day
📊 China’s Property Slump
Source: Visual Capitalist
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