FED: Soft Landing Amidst Expansion

Federal Reserve Chairman Jerome Powell acknowledged on Wednesday that the unusual economic situation resulting from the COVID-19 pandemic has been advantageous for the Fed's efforts to reduce inflation without triggering a recession, a scenario seldom seen in economic history.

The Federal Reserve, in its recent economic forecasts, indicated plans to lower interest rates in 2024, even as the economy continues to expand. This strategy could lead to the "soft landing" that was viewed with skepticism by many economists when the central bank started significant rate increases last year to address inflation following the pandemic.

According to Powell, the Fed's strategy to combat inflation has involved a dual approach: curbing economic demand while waiting for the "vertical" supply curve to return to normal. He noted that the supply side in various sectors of the economy is gradually approaching its pre-pandemic state.

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ADOBE: Stock Drops on 2024 Forecast

Adobe's stock saw a decline of over 6% in after-hours trading on Wednesday following the company's release of a forecast for 2024 that did not meet expectations. Despite this, Adobe reported a nearly 12% increase in revenue compared to the same fiscal fourth quarter. The company's net income saw a significant rise of 26%, reaching $1.48 billion, or $3.23 per share, an increase from the previous year's $1.18 billion, or $2.53 per share.

In a conference call with analysts, Anil Chakravarthy, the president of Adobe’s experience business, which encompasses marketing software, emphasized the company's ongoing cautious approach to expenditure.

Shantanu Narayen, Adobe’s CEO, addressed inquiries concerning the potential future recurring revenue from subscriptions to Adobe's Creative Cloud software suite. Notably, the company raised the prices of some of its subscription services during the quarter.

• Earnings per share: $4.27 per share, adjusted vs. $4.14 expected per share

• Revenue: $5.05 billion vs. $5.03 billion expected

ETSY: Nations Finally Commit to Deal

Employees at Etsy are experiencing layoffs during the holiday season. Since 2019, the company has grown significantly, largely due to a surge in e-commerce driven by the Covid pandemic. However, current economic challenges have led Etsy to reduce its staff by 11%, despite a continued trend of consumers seeking online shopping bargains amid persistent, albeit easing, inflation.

Some believe that these layoffs are due to overhiring during the pandemic. On the other hand, some believe these layoffs are due to a slowing economy.

Headlines You Need To Know: 🎙

• Amazon wins $270 million tax cut with EU

• Bank of England holds policy

• European Central Bank holds rates steady

• Fed-fueled rally set to keep going

• Gundlach says 10-year will fall to 3% next year

• Citigroup offers partial bonuses to encourage staff

• UBS steps up bid to claw back cash

From Split Bills to PayPal's Star

In a digital era where cashless transactions are king, Venmo stands out as a revolutionary app that transformed peer-to-peer payments. But the story of Venmo is more than just an app; it's a tale of innovation, friendship, and strategic business moves.

Venmo's story began with two friends, Andrew Kortina and Iqram Magdon-Ismail. During a visit to New York City in 2009, they encountered a familiar problem: The hassle of splitting bills and paying each other back. Frustrated with the cumbersome process of dealing with cash, they envisioned a solution that would streamline this everyday issue. Combining 'vendor' and 'mo' for mobile, Venmo was born as an idea to make money transfers as simple as sending a text message.

Turning their vision into reality was fraught with challenges. Kortina and Magdon-Ismail, both University of Pennsylvania alumni, embarked on a journey filled with technical hurdles and late-night coding sessions. Despite these obstacles, their conviction in the app's potential never wavered. Venmo's breakthrough came when they added a social dimension to the app, allowing users to share and comment on transactions, a feature that particularly appealed to millennials.

Venmo's meteoric rise didn't go unnoticed. In 2013, Braintree, a payments company, acquired Venmo for $26.2 million. Just a year later, in a move that would propel Venmo to new heights, PayPal, a giant in the online payments industry, acquired Braintree for $800 million. This acquisition brought Venmo under PayPal's expansive umbrella, giving it access to a broader audience and resources. Under PayPal, Venmo continued to flourish, becoming an integral part of PayPal's portfolio and a key player in the digital wallet space.

Chart of the Day

📊 This chart shows that newer generations prefer to hold more cash, equities, and less bonds.

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.

Sources:

_{1. Bloomberg (www.bloomberg.com)}

_{2. CNBC (www.cnbc.com)}

_{3. CNBC (www.cnbc.com)}