Weekly news summary for February 10 to February 16
Friday, Feb. 10: Lyft Falls after Q4 Loss, Weak Q1 Revenue Outlook
Lyft Inc. shares fell more than 35% on Friday after the US ride-hailing company’s surprise fourth-quarter loss and downbeat revenue guidance for the first quarter.
For the three months ending Dec. 31, Lyft reported an adjusted loss of 74 cents per share in contrast to analysts’ expectations for a profit, while seasonality and lower prices brought the firm’s first-quarter revenue estimates at 975 million dollars to end below forecasts of 1.09 billion dollars.
Monday, Feb. 13: Paxos to Cease Minting BUSD at NYDFS’s Instruction
Cryptocurrency exchange Binance founder Changpeng Zhao announced on Monday that stablecoin issuer Paxos Trust Co. would stop minting dollar-pegged Binance USD (BUSD) at the request of the New York Department of Financial Services (NYDFS).
The statement came after a report of the US Securities and Exchange Commission’s (SEC) potential plan to sue Paxos for allegedly issuing BUSD as an unregistered security, with Binance saying it would be looking into projects in markets where regulatory uncertainty may cause issues for its users.
Tuesday, Feb. 14: Palantir Gains on First Profitable Quarter Report
Shares of Palantir Technologies Inc. rose 17% in extended trading after the company posted better-than-expected fourth-quarter earnings results that marked its first-ever profitable quarter.
The Denver-based big data analytics firm reported net income on a GAAP basis of 31 million US dollars or 01 cents per share for the three months ending Dec. 31, while revenue climbed 18% to 508.62 million dollars from the same quarter a year ago to surpass analysts’ expectations of 502 million dollars.
Wednesday, Feb. 15: US Jan. CPI Shows Resilience, UK Inflation Eases
US inflation slowed in January but remained resilient, with the key consumer price index (CPI) climbing 6.4% to end above expectations of 6.2%, providing the Federal Reserve with more basis for raising interest rates in the near term.
On the other hand, UK inflation retreated further than anticipated in the same month, showing a rise of 10.1% from a year earlier, the lowest level since September and lower than the 10.5% posted in December, although it remained well above the Bank of England’s (BoE) 2% target.
Thursday, Feb. 16: Burry’s Scion Asset Bets On Alibaba and JD.com
Michael Burry’s Scion Asset Management LLC has revealed to have added Chinese e-commerce giants Alibaba Group Holding Ltd. and JD.com Inc. to its portfolio in the fourth quarter of 2022, potentially reflecting optimism over China’s reopening.
According to the investment firm’s latest 13F filing, the famed Big Short investor took a new position of 50,000 shares in Alibaba worth 4.4 million US dollars, while he bought 75,000 American depositary receipts (ADRs) of JD.com worth 4.2 million dollars.
