Lyft's Earnings Misstep

LYFT: Huge Mistake

Lyft delivered a great earnings report, forecasting adjusted earnings up to 11% above analysts' expectations and surpassing booking forecasts. Initially, Lyft announced a dramatic 500 basis points increase in profit margins for the year, causing its stock to leap 67% in after-hours trading. However, this figure was quickly corrected by CFO Erin Brewer to just 50 basis points due to a "clerical error," leading to a sharp decline in stock gains, stabilizing at a ~20% increase by this morning.

This mistake overshadowed Lyft's otherwise excellent performance, hinting at successful efforts to grow ridership and challenge Uber. Lyft's fourth-quarter results showed a 17% year-over-year increase in gross bookings to $3.72 billion, with revenue at $1.22 billion. The company also predicted higher-than-expected adjusted earnings for the upcoming quarter and reported its highest annual ridership in history, with adjusted earnings beating analyst estimates despite a net loss.

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BEZOS: Dumps Amazon Stock

Jeff Bezos began selling off his Amazon shares shortly after the company's strong start to the year, disposing of 24 million shares worth over $4 billion within four trading days, according to regulatory filings. This move, his first stock sale since 2021, came after he disclosed plans to sell up to 50 million shares.

The timing coincides with his relocation to Miami from Seattle, which he announced on November 2. This relocation from Washington was due to them introducing a 7% capital gains tax in 2022. He relocated to tax-free Florida, which means Bezos could save approximately $288 million in taxes. Washington's capital gains tax has sparked significant pushback. This could ultimately lead to a repeal of the new law.

CPI: Higher Than Expected

In January, the Labor Department revealed that inflation exceeded forecasts, driven largely by high housing costs. CPI rose by 0.3% for the month, reaching a 3.1% increase over the year, higher than the expected 0.2% monthly and 2.9% annual rise. Core CPI, excluding food and energy, went up by 0.4% monthly, with a yearly increase of 3.9%, above the predicted rates.

Housing costs significantly influenced this inflation, with a monthly increase of 0.6%, accounting for a major part of the overall rise. Over the year, shelter prices increased by 6%. Food prices also rose by 0.4%, while a fall in energy costs, led by gasoline prices dropping by 3.3%, partially offset these hikes.

The inflation data arrives as the Federal Reserve deliberates on its 2024 monetary policy.

Headlines You Need To Know: 🎙

• Mortgage rates surge again

• Uber unveils $7 billion buyback plan

• The brutal reality of plunging office values is here

• Bank of Canada to halt its QT program

• The cost of car ownership is getting painful

• Bitcoin regains $1 trillion market cap

Hallmark and Valentine’s Day

In the early 1900s, as people started celebrating Valentine's Day more, a new company called Hallmark, started by Joyce Clyde Hall in 1910, saw a chance to make the day even more special. At first, Hallmark made a few fancy Valentine's cards in 1913. They made cards that looked nice and shared feelings in a new way.

As years went by, Hallmark made Valentine's Day bigger with beautiful cards and gifts that helped people show their love. Hallmark didn't just make Valentine's Day about buying things; it helped people find new ways to say "I love you" to each other. Through their relentless creativity and understanding of human emotions, Hallmark Cards became synonymous with Valentine's Day. They ended up weaving themselves into the fabric of American culture and the celebration of love around the world.

Chart of the Day

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