Epic Day For Disney

DISNEY: Epic Earnings

Disney exceeded fiscal first-quarter earnings expectations, attributing its success to significant cost reductions amid stable revenue levels. The company is on course to slash costs by over $7.5 billion by fiscal 2024, aiming for a 20% increase in earnings per share to around $4.60. Despite flat revenue at $23.55 billion and a dip in Disney+ subscribers due to price hikes, Disney saw a decrease in operating losses in its streaming services.

As good as their earnings were, Bob Iger had one more major announcement. Disney announced a $1.5 billion investment in Epic Games, the creator of Fortnite. This move, described by CEO Bob Iger as Disney's most significant venture into gaming, aims to develop a gaming and entertainment universe featuring characters from Disney's key franchises. The investment reflects Disney's response to the growing trend of video gaming among younger demographics, leveraging Fortnite's massive player base and popularity on platforms like PlayStation and Xbox.

🎯 GRIT TAKE: This was a massive day for...upgrade to VIP to read the full GRIT Take. 

RECORD: 10-Year Treasury Auction

On Wednesday, the US government auctioned $42 billion in 10-year Treasury notes at a yield of 4.093%, lower than the expected 4.105%, signaling strong demand and calming investors amid market volatility. This auction, which saw higher demand than anticipated, indicates confidence that the Federal Reserve may reduce interest rates soon. The yield's drop below pre-auction estimates and the auction's success in exceeding the previous high mark of $41 billion set in November 2020 demonstrate optimism in the Treasury market.

The 10-year yield has hovered around 4% since mid-December, influenced by Federal Reserve Chairman Jerome Powell's hints at possible rate cuts in 2024. This period also saw mixed economic signals, with US regional bank stocks, like New York Community Bancorp, suffering from rising interest rates while the S&P 500 hit record highs.

ACKMAN: Launching Retail Hedge Fund

Bill Ackman is launching Pershing Square USA, a new investment fund listed on the New York Stock Exchange, designed to offer lower fees and quicker capital access compared to traditional hedge funds. This move aims to give retail investors access to hedge fund-style investing. With no minimum investment and a 2% flat annual fee after the first year, the fund promises to be more appealing for those deterred by high hedge fund costs and slow liquidity.

While the fundraising goal isn't specified, the potential for raising up to $20 billion indicates strong interest. Managed by Ackman and his team, Pershing Square USA will capitalize on Ackman's successful track record, including significant gains from investments in companies like Chipotle Mexican Grill and Alphabet, highlighting an average annual return of 31% over the last five years.

Headlines You Need To Know: 🎙

• Google rebrands Bard AI

• Investors are almost always wrong about the Fed

• Spirit Airlines narrows losses

• Superbowl Ads get more star power

• Oil rises more than 1%

• A 99% bond wipeout hands hedge fund a big lesson

Bikini Airlines

Bikini Airlines, officially known as VietJet Air, is a Vietnamese international low-cost airline. It garnered global attention for its marketing strategy which included featuring flight attendants in bikinis on certain flights, a move that was both controversial and highly publicized. This unconventional approach played a significant role in the airline's branding, setting it apart in the competitive aviation market.

The founder behind VietJet Air is Nguyen Thi Phuong Thao, who became Vietnam's first woman billionaire mainly due to the airline's success. Thao, with her savvy business strategies and understanding of market dynamics, launched VietJet Air in 2011, and it quickly grew to become a major player in the region. Her innovative marketing tactics, combined with a focus on cost management and operational efficiency, propelled the airline's growth and profitability. This led her to amass a significant fortune and made her one of the most successful female entrepreneurs globally.

Chart of the Day

📊 Largest Solar Plants

The author, publisher or insiders of the publisher may currently have long or short positions in the securities of the companies mentioned herein, or may have such a position in the future (and therefore may profit from fluctuations in the trading price of the securities). To the extent such persons do have such positions, there is no guarantee that such persons will maintain such positions.