Oil markets reversed course sharply on Tuesday morning following reports that President Donald Trump is preparing to issue a memorandum directing the U.S. Treasury to impose maximum <a href="https://www.benzinga.com/topic/iran">economic pressure on Iran.</a> 



The directive aims to enforce sanctions and block all potential paths for Iran to develop a nuclear weapon, according to a Reuters report.



The new directive may require the U.S. Secretary of State to modify or revoke existing sanctions waivers and collaborate with the Treasury Department to implement a plan aimed at eliminating Iran&#8217;s oil exports, according to a U.S. official.



&#8220;A bold move considering Iran still ships as much as&nbsp;1.3 million barrels per day, mostly to China,&#8221; commented oilprice.com. 



The news outlet indicated that global oil supply could tighten overnight and noted that the last time Trump fully enforced Iranian sanctions, oil prices surged past $80.



<h3 class="wp-block-heading">Oil Prices Rebound From Session Lows</h3>



Crude oil prices initially declined overnight amid demand concerns following <a href="https://www.benzinga.com/government/regulations/25/02/43462165/china-strikes-retaliatory-measures-against-us-following-trumps-10-tariffs-its-much-less-than-proportional-analyst-says">Chinese trade countermeasures against U.S. tariffs.</a> 



Yet, oil prices erased their losses amid news of Trump&#8217;s potential actions on Iran, rallying on fears of potential supply disruptions.



West Texas Intermediate crude surged above $73 per barrel after hitting a session low of $70, reflecting a sharp intraday swing. Brent crude followed a similar pattern, rising as traders recalibrated expectations for global supply.



Traders will closely watch for further developments regarding the directive and the upcoming meeting between Israeli Prime Minister Benjamin Netanyahu and Trump on Tuesday, which could further shape U.S. policy on Iran and energy markets.



<h3 class="wp-block-heading">Energy Stocks Outperform </h3>



The broader energy sector saw significant gains as oil prices rebounded. The Energy Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLE#NYSE">XLE</a>) jumped 1.9%, leading all other sectors. Major oil companies also saw strong moves higher, with both Exxon Mobil Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XOM#NYSE">XOM</a>) and Chevron Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CVX#NYSE">CVX</a>) climbing 2.2%. 



On Tuesday, Goldman Sachs raised its 12-month price target on Chevron from $182 to $183, implying an 18% upside from current levels. Analyst Neil Mehta reiterated Chevron as a &#8220;top Super Major pick for 2025,&#8221; citing three key factors such as strong capital returns, major project ramp-ups and margin expansion.



Goldman expects Chevron to return approximately one-third of its market cap to shareholders over the next three years through dividends and share buybacks. The stock currently yields 4.6%.



Key growth drivers include increased production from the Permian Basin, U.S. Gulf of Mexico, and Kazakhstan&#8217;s Tengiz field.



Finally, the company is expected to improve profitability through cost-cutting and operational efficiencies.



Goldman projects free cash flow of $22 billion in 2025 and $28 billion in 2026, assuming Brent crude prices of $76 and $80 per barrel, respectively. This equates to an FCF yield of 9% in 2025 and 11% in 2026.



Goldman Sachs adjusted its 12-month price target on Exxon from $123 to $117, holding a &#8216;Neutral&#8217; rating.



The firm acknowledges Exxon's strong operational execution and premium upstream portfolio—including assets in Guyana, LNG, and the Permian—but cites valuation concerns relative to peers.



&#8220;While we remain constructive on XOM's strong track record of quarterly and operational execution, we remain mindful of relative valuation,&#8221; the bank stated, highlighting that Exxon&#8217;s 2026 FCF yield of 8% lags behind Chevron and ConocoPhillips (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/COP#NYSE">COP</a>), which are projected at 11%.



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Trump Prepares Maximum Pressure On Iran: Oil Jumps Above $73, Energy Stocks Rally

The U.S. Senate Finance Committee on Tuesday voted in favor of advancing the nomination of Robert F. Kennedy Jr. to lead the Department of <a href="https://www.benzinga.com/25/01/43306674/trumps-hhs-pick-robert-kennedy-jr-begins-senate-confirmation-hearings">Health and Human Services.&nbsp;</a>



The Details: The Senate Finance Committee voted 14-13 along party lines to advance Kennedy's nomination to the Senate floor. He will now face the full Senate for consideration and ultimately, a final vote to approve or deny his nomination as health secretary. 



Read Next: <a href="https://www.benzinga.com/general/health-care/25/01/43372753/eggs-prices-soar-as-bird-flu-spreads-why-experts-expect-another-45-increase-in-2025">Eggs Prices Soar As Bird Flu Spreads: Why Experts Expect Another 45% Increase In 2025 </a>



GOP Sen. Bill Cassidy expressed concerns with Kennedy's views on vaccines, leading some to question his support of Kennedy's nomination. The GOP Senator voted with his party in favor of the nomination.



Cassidy posted a statement on social media just before the vote Tuesday morning and said he'd had "very intense conversations," with Kennedy and Vice President J.D. Vance.



"With the serious commitments I've received from the administration and the opportunity to make progress on the issues we agree on like healthy foods and a pro-American agenda, I will vote yes," Cassidy wrote.



Stocks To Watch: Vaccine-related stocks dropped following the vote to advance Kennedy's nomination due to his past statements questioning the safety and efficacy of immunizations and history of falsehoods around vaccines. Some of the largest pharmaceutical companies including Moderna, Inc.(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MRNA#NASDAQ">MRNA</a>) and Pfizer, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PFE#NYSE">PFE</a>) are moving lower on the news. 



Investors will also be watching insurance stocks for reactions as Kennedy's nomination moves forward.  



During his Senate hearings <a href="https://www.benzinga.com/general/health-care/25/01/43321236/rfk-jr-and-big-pharma-stocks-to-watch-as-health-secretary-hopeful-answers-pointed-questions-on-drugs-insurance-trump-exec-orders">last week</a>, Kennedy called out what he considered to be "rapacious behavior by insurance companies&#8221; and suggested he would support efforts to crack down on abusive tactics like denying care and overcharging the government.



Some insurers tied to Medicaid and Medicare are UnitedHealth Group (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UNH#NYSE">UNH</a>), the largest Medicare Advantage insurer in the U.S., and Elevance Health (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ELV#NYSE">ELV</a>), one of the largest Medicaid managed care organizations.&nbsp;



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</ul>



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Robert F. Kennedy's Health Secretary Nomination Advances To Full Senate: Vaccine Stocks Drop

Shares of Palantir Technologies Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PLTR#NASDAQ">PLTR</a>) climbed in early trading on Tuesday, after the company reported <a href="https://www.benzinga.com/markets/25/02/43456348/pltr-stock-surges-over-17-in-pre-market-after-ceo-alex-karp-touts-untamed-organic-growth-in-ai-demand">strong fourth-quarter results</a>.



The company reported its quarterly results amid an <a href="https://www.benzinga.com/earnings">exciting earnings season</a>. Here are some key analyst takeaways.



Morgan Stanley On Palantir Technologies



<a href="https://www.benzinga.com/analyst-stock-ratings/analyst/59411d2885b07a0001615ca8/sanjit-singh">Analyst Sanjit Singh</a> upgraded the rating from Underweight to Equal-Weight, while raising the price target from $60 to $95.



Palantir Technologies' revenue growth accelerated for the sixth quarter in a row, from 30% in the third quarter to 36% in the fourth quarter, Singh said in the upgrade note. "For Q1 and FY25 revenue growth, management forecasts growth of +35-36% and +31%, respectively, which is well ahead of consensus looking for mid-20% growth," he added.



Palantir Technologies is executing well in the early stage of the AI cycle, "given a strong technology platform and elite engineering talent," the analyst wrote. The company's fundamentals are improving, as is the likelihood that this is sustainable, he further stated.



Northland Capital Partners On Palantir Technologies



<a href="https://www.benzinga.com/analyst-stock-ratings/analyst/58bd551ab85e930001592af5/michael-latimore">Analyst Michael Latimore</a> reaffirmed a Market Perform rating, while revising the price target to $80.



Palantir Technologies' revenue growth accelerated to 36% and operating margins expanded to 45% in the fourth quarter, Latimore said in a note. Revenues of $827.5 million surpassed consensus of $781.2 million, while EPS of 14 cents per share beat expectations of 11 cents per share, he added.



Management guided to first-quarter revenue of $858-$862 million, higher than consensus $799.4 million and non-GAAP operating income of $354-$358 million, above consensus of $298.1 million, the analyst stated. "Palantir stated that DeepSeek, and its low-cost powerful LLM, is making obvious what Palantir has stated all along, that the LLMs will commoditize as they get more similar over time," he further wrote.



Check out <a href="https://www.benzinga.com/analyst-stock-ratings">other analyst stock ratings</a>.



BofA Securities On Palantir Technologies



<a href="https://www.benzinga.com/analyst-stock-ratings/analyst/58d94a95b85e930001fd9dd2/tore-svanberg">Analyst Mariana Perez Mora</a> reiterated a Buy rating, while lifting the price target from $90 to $125.



Palantir Technologies reported its full year results significantly ahead of expectations, reflecting that "2024 was only a dress rehearsal," Mora said in a note. "The company sees the world ripe for an AI and technology revolution," she added.



The analyst expects the company to lead the AI revolution in both the Commercial and Defense markets. "With the AI market becoming more crowded with more commoditized solutions; we think Palantir&#8217;s value proposition is only becoming more pronounced," she further wrote.



Cantor Fitzgerald On Palantir Technologies



<a href="https://www.benzinga.com/analyst-stock-ratings/analyst/61e7dac6ecb07f0001d8956b/thomas-blakey">Analyst Thomas Blakey</a> maintained a Neutral rating, while raising the price target from $72 to $98.



Palantir Technologies reported a strong quarterly beat and raised its guidance, Blakey said. U.S. revenues grew 52% year-on-year, with U.S. Commercial revenues up 64% and U.S. government revenues growing 45%, he added.



The company's customer count rose by an impressive 43% year-on-year to 711, "which we attribute to momentum in the US as well as Palantir's AIP (Artificial Intelligence Platform), improving ability to create AI apps and agents in low code on its platform," the analyst wrote. &nbsp;Palantir Technologies is still in the early stages of its "journey of transforming industries and governments with its enterprise software and services offering," he further stated.



PLTR Price Action: Shares of Palantir Technologies had risen by 26% to $105.71 at the time of publication on Tuesday.



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PLTR

Palantir Rockets On Strong Q4: '2024 Was Only A Dress Rehearsal' For AI Growth, Says Analyst

President Donald Trump announced a wave of tariffs on Canada, China, and Mexico, though some have now been delayed, sparking mixed reactions in <a href="https://www.benzinga.com/25/02/43452717/nvidia-tsmc-drop-as-trump-hits-mexico-canada-and-china-with-tariffsbut-top-analyst-sees-only-limited-supply-chain-impact">the business world.</a>



Executives Weigh In: Tariffs increase costs for American importers, which can lead to higher prices for consumers. Industries such as perishable foods and automobiles could see disruptions as Trump&#8217;s tariffs take effect.



General Motors Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GM#NYSE">GM</a>) CEO Mary Barra reacted to the tariffs announcement last week, <a href="https://finance.yahoo.com/news/gm-ceo-mary-barra-ive-talked-to-president-trump-about-tariffs-132651342.html">telling</a> Yahoo Finance that the Detroit-based company has already prepared for impending tariffs.



&#8220;We&#8217;ve done a lot of scenario planning and we know the levers that we can pull to minimize any impact. But having the opportunity to talk to the president, I really believe he wants a strong manufacturing sector because it&#8217;s good for the economy,&#8221; Barra said.



Meanwhile, Shopify Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SHOP#NYSE">SHOP</a>) CEO Tobi Lutke <a href="https://x.com/tobi/status/1886104963979346132">responded</a> more positively to the tariffs, announcing a &#8220;buy local&#8221; feature on X.



UBS Group AG (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UBS#NYSE">UBS</a>) CEO Sergio Ermotti <a href="https://x.com/business/status/1886735516520898930">told</a> Bloomberg that the tariffs could result in &#8220;spikes in volatility,&#8221; reiterating that &#8220;negative outcomes are not priced into the market.&#8221; Ermotti sees inflationary pressure as possibly impacting central bank policy.



The CEO of JPMorgan Chase &amp; Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JPM#NYSE">JPM</a>), Jamie Dimon, told CNBC that critics of Trump&#8217;s tariffs should &#8220;get over it.&#8221; Dimon said that the tariffs could help the United States with national security. Dimon was previously a critic of Trump&#8217;s tariffs during his first term.



Also Read:



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SHOP

Trump's Tariff Push Divides Executives: 'Negative Outcomes Are Not Priced Into' Markets

China responds to the across-the-board 10% tariffs imposed by Donald Trump&#8216;s administration with targeted measures on a range of U.S. energy imports and restrictions on key minerals exports, officially reopening a new chapter in the trade war between the <a href="https://www.benzinga.com/news/econ-s">world&#8217;s two largest economies.</a>



&#8220;The unilateral increase in tariffs by the United States seriously violates the rules of the World Trade Organization,&#8221; the Ministry of Finance of the People&#8217;s Republic of China stated Tuesday. 



<h3 class="wp-block-heading">What Happened</h3>



As the U.S. implemented a 10% tariff on all Chinese imports, China responded on Feb. 4 with a series of countermeasures.



These included:



<ol>
<li>Raising tariffs by 10-15% on certain U.S. imports such as coal, liquified natural gas, crude oil, agricultural machinery and vehicles.</li>



<li>Imposing export restrictions on key minerals like tungsten, tellurium, bismuth, molybdenum, and indium, along with their related metallic compounds.</li>



<li>Adding two U.S. companies, PVH Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PVH#NYSE">PVH</a>) and Illumina Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ILMN#NASDAQ">ILMN</a>), to its Unreliable Entity List in order to &#8220;safeguard national sovereignty, security and development interests.&#8221; According to China, these companies &#8220;violated the principles of normal market transactions, interrupted normal transactions with Chinese enterprises, and took discriminatory measures against Chinese enterprises.&#8221;&nbsp;</li>



<li>Initiating an antitrust investigation into Alphabet Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>).</li>
</ol>



According to an official statement, China&#8217;s retaliatory tariffs on U.S. goods will take effect on Feb. 10, while the export ban on critical minerals has already been enforced.



The&nbsp;Executive Order&nbsp;signed by Trump on Feb. 1 stated that if China were to retaliate by imposing additional tariffs on US goods, the 10% tariff rate might be raised further.&nbsp;



<h3 class="wp-block-heading">Why It Matters</h3>



Goldman Sachs economist Andrew Tilton indicates that China&#8217;s newly announced retaliatory tariffs cover a much narrower range of goods compared to the broad 10% U.S. tariff on Chinese imports. 



The combination of tariffs, export restrictions, entity list designations and antitrust investigations suggests a more strategic and coordinated policy response than during the 2018-19 trade war, according to the expert.



Goldman Sachs&#8217; estimates indicate that the U.S. accounts for a relatively small share of China&#8217;s imports in the targeted energy sectors. In 2024, China imported $4.5 billion worth of coal and LNG from the U.S., representing just 5% of its total imports for these products. For crude oil, U.S. exports to China totaled $9.4 billion, making up only 3% of China&#8217;s total crude imports.



Based on the investment bank&#8217;s calculations, the impact of China&#8217;s counter tariffs is &#8220;much-less than proportional,&#8221; as China is effectively imposing an additional 12% tariff on $14 billion in U.S. goods, compared to the U.S. implementing a 10% tariff on $525 billion worth of Chinese products.



Yet, &#8220;the future path of US-China trade conflicts remains highly uncertain, and reactions from the US to China's retaliation, the potential Trump-Xi phone call, and PBOC&#8217;s daily USDCNY fixing in the coming days are key events to watch,&#8221; Tilton says. 



<h3 class="wp-block-heading">Market Reactions </h3>



The Chinese yuan gained marginal ground against the U.S. dollar on Tuesday, up 0.2% by 8:15 a.m. in New York. 



China&#8217;s trade measures weighed on energy commodities, with futures on WTI and natural gas down 1.7% and 4%, respectively. Gold prices rose 0.3% to $2,830 per ounce, setting new all-time highs. 



Futures on major U.S. indices were mixed during Tuesday premarket trading, with contracts on the S&amp;P 500 up 0.3% while those on the Dow edging 0.1% lower. 



US-listed Chinese stocks rallied in the premarket. Shares of Alibaba Group Holding Ltd. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BABA#NYSE">BABA</a>) rose 2%, PDD Holdings Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PDD#NASDAQ">PDD</a>) surged 2.1% and JD.com Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/JD#NASDAQ">JD</a>) rallied 2.6%. 



The iShares China Large-Cap ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FXI#NYSE">FXI</a>) was 1.8% higher. 



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China Strikes Retaliatory Measures Against US Following Trump's 10% Tariffs: It's 'Much-Less Than Proportional,' Analyst Says

On Tuesday,&nbsp;Pfizer Inc.&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PFE#NYSE">PFE</a>) reported fourth-quarter adjusted EPS of 63 cents, compared to 10 cents a year ago, beating the&nbsp;<a target="_blank" href="https://www.benzinga.com/25/02/43455760/pfizer-gears-up-for-q4-print-here-are-the-recent-forecast-changes-from-wall-streets-most-accurate-analysts" rel="noreferrer noopener">consensus of 47 cents</a>.



The U.S. drugmaker reported sales of $17.76 billion, up 22% year-over-year (up 21% operationally), beating the&nbsp;<a target="_blank" href="https://www.benzinga.com/earnings" rel="noreferrer noopener">consensus of $17.40 billion</a>.



The increase reflects a one-time, non-cash Paxlovid revenue reversal&nbsp;of $3.5 billion recorded in fourth-quarter 2023 and, to a lesser extent, growth contributions in fourth-quarter 2024 from the legacy Seagen portfolio, the Vyndaqel family, higher Paxlovid sales year-over-year, higher sales in several other products across all categories, and a favorable impact of foreign exchange.



Excluding contributions from Paxlovid and Comirnaty, fourth-quarter 2024 revenues <a target="_blank" href="https://s28.q4cdn.com/781576035/files/doc_financials/2024/q4/Q4-2024-Earnings-Charts-FINAL.pdf" rel="noreferrer noopener">totaled</a> $13.7 billion, an increase of $1.3 billion, or 11%, operationally compared with the prior-year quarter.



This was primarily driven by legacy Seagen, Vyndaqel family, Eliquis, Nurtec ODT/Vydura, and Xtandi, partially offset by lower revenues for Abrysvo, Xeljanz and Oncology biosimilars.



Read Next: <a target="_blank" href="https://www.benzinga.com/trading-ideas/movers/25/01/43403416/is-big-pharma-about-to-win-goldman-sachs-weighs-in-on-340b-and-medicaid-shifts" rel="noreferrer noopener">Is Big Pharma About To Win? Goldman Sachs Weighs In On 340B And Medicaid Shifts</a>



Fourth-quarter 2024 Comirnaty&nbsp;revenues of $3.83 billion decreased $2.0 billion, or 38%, operationally compared with the prior-year quarter, driven primarily by fewer COVID-19 vaccinations globally and lower contracted doses.



Fourth-quarter 2024 Paxlovid revenues of $727 million increased $3.9 billion operationally compared with $(3.1) billion of revenues recorded in the prior-year quarter, primarily driven by the transition to traditional commercial market sales in the U.S., including a one-time, non-cash revenue reversal&nbsp;of $3.5 billion recorded in fourth-quarter 2023.



Vyndaqel family drugs generated&nbsp;<a target="_blank" href="https://s28.q4cdn.com/781576035/files/doc_financials/2024/q4/Q4-2024-PFE-Earnings-Release-Final.pdf" rel="noreferrer noopener">sales</a> of $1.55 billion, up 60%. Eliquis, a blood thinner drug, generated sales of $1.83 billion, up 14%.



Global revenues of $915 million from legacy Seagen compared with $132 million in fourth-quarter 2023 following the completion of the acquisition in mid-December 2023.



Nurtec ODT/Vydura sales jumped 39% to $392 million. Prevnar family pneumococcal vaccine sales dipped 4% to $1.56 billion, and Abrysvo RSV vaccine sales slumped 62% to $198 million.



Guidance:&nbsp;Pfizer reaffirms 2025 revenues of $61 billion-$64 billion compared to <a target="_blank" href="https://www.benzinga.com/general/biotech/24/12/42530634/pfizer-does-not-anticipate-material-changes-to-us-vaccine-policy-from-the-incoming-administration-in-2025" rel="noreferrer noopener">consensus of $63.025 billion</a>.



The company anticipates adjusted EPS of $2.80-$3.00 compared to consensus of $2.94.



Price Action:&nbsp;At the last check on Tuesday, PFE stock was up 1.87% at $26.69 during the premarket session.



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</ul>



Photo via Shutterstock

Guidance

Pfizer Q4 Earnings: Revenue And EPS Beat, Seagen And COVID-19 Products Show Strength, Issues Strong FY25 Outlook

PayPal Holdings Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PYPL#NASDAQ">PYPL</a>) <a target="_blank" href="https://www.benzinga.com/topic/paypal" rel="noreferrer noopener">reported fiscal fourth-quarter</a> revenue growth of 4% year over year to $8.37 billion, topping the&nbsp;analyst consensus estimate <a target="_blank" href="https://investor.pypl.com/financials/quarterly-results/default.aspx" rel="noreferrer noopener">of&nbsp;$8.26 billion</a>.&nbsp;



The company reported an adjusted EPS of $1.19, beating&nbsp;the <a target="_blank" href="https://www.benzinga.com/calendars/earnings" rel="noreferrer noopener">analyst consensus estimate of $1.12</a>. The stock dipped after the print.



Also Read: <a target="_blank" href="https://www.benzinga.com/government/regulations/25/02/43458397/sam-altman-in-korea-openai-seeks-ai-deals-with-samsung-sk-hynix-and-softbank-amid-global-ai-boom" rel="noreferrer noopener">Sam Altman in Korea: OpenAI Seeks AI Deals With Samsung, SK Hynix, and SoftBank Amid Global AI Boom</a>



Total payment volumes increased 7% year-over-year to $437.8 billion in the quarter. Payment transactions were down 3% to $6.6 billion, and the payment transactions per active account increased 3% on a trailing 12-month basis to $60.6.



Total active accounts&nbsp;increased by 2.1% to 434 million. On a sequential basis, active accounts increased by 0.6%, or 2.6 million.



The operating margin declined 431 basis points to 17.2%, and the adjusted operating margin decreased 34 bps to 18.0%.



Operating cash flow&nbsp;was&nbsp;$2.4 billion, and free cash flow&nbsp;was&nbsp;$2.2 billion.&nbsp;PayPal held $15.4 billion in cash and equivalents as of December 31, 2024, and had a debt of $11.1 billion on its balance sheet.



Buyback: PayPal&#8217;s Board approved a new $15 billion stock repurchase program.



CEO Alex Chriss flagged improvements to branded checkout, peer-to-peer, and Venmo, plus the progress to its price-to-value strategy behind the quarterly print.



Outlook: PayPal expects first-quarter adjusted EPS of $1.15-$1.17, compared to $1.08 for the previous year&#8217;s period and the <a target="_blank" href="https://www.benzinga.com/calendars/guidance" rel="noreferrer noopener">consensus of $1.13</a>.



PayPal expects full-year 2024 adjusted EPS of $4.95-$5.10, compared to $4.65 Y/Y.&nbsp;Current analyst estimates&nbsp;call for an EPS of $4.90.



PayPal stock surged over 45% in the last 12 months. At least <a target="_blank" href="https://www.benzinga.com/quote/PYPL/analyst-ratings" rel="noreferrer noopener">four Wall Street firms</a>, including Susquehanna, Citigroup, Wells Fargo, and Piper Sandler, raised their price targets on the stock in January 2025.



Price Action: At&nbsp;the last check on Tuesday, PYPL stock was down 8.02% at $82.33 premarket.



Also Read:



<ul>
<li><a href="https://www.benzinga.com/25/02/43444802/comcast-downgraded-as-broadband-struggles-and-price-cuts-raise-investor-concerns" target="_blank" rel="noreferrer noopener">Comcast Faces Broadband Headwinds, Analyst Downgrades Stock And Cuts Price Forecast</a></li>
</ul>

Buybacks

PYPL

PayPal Q4 Earnings: Revenue And EPS Beat, Margin Pressure, $15 Billion Buyback, Outlook And More

PepsiCo Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PEP#NASDAQ">PEP</a>) shares are trading lower in<a target="_blank" href="https://www.benzinga.com/premarket" rel="noreferrer noopener"> premarket on Tuesday </a>after the company reported worse-than-expected fourth-quarter revenue.



The company reported a fourth-quarter sales decline of 0.2% year-on-year to $27.78 billion, missing the analyst <a target="_blank" href="https://www.sec.gov/ix?doc=/Archives/edgar/data/0000077476/000007747625000008/pep-20250204.htm" rel="noreferrer noopener">consensus estimate of $27.89 billion</a>.



Net revenue from Frito-Lay North America decreased 2% Y/Y, Quaker Foods North America dropped 2%, and PepsiCo Beverages North America remained flat.



Latin America sales slumped 7% Y/Y, and Europe sales rose 6%. Gross profit decreased 1% Y/Y to $14.6 billion, and the margin contracted 41 basis points Y/Y to 52.6%.



Operating margin expanded by 206 basis points to 8.1%, and operating income for the quarter increased 33.6% to $2.25 billion.



The company held $8.5 billion in cash and equivalents as of December 28. Operating cash flow for the twelve months totaled $12.5 billion.



Adjusted EPS of $1.96<a target="_blank" href="https://www.benzinga.com/earnings" rel="noreferrer noopener"> beat the consensus estimate of $1.94.</a>



Pepsi announced a 5% increase in its annualized dividend to $5.69 per share from $5.42 per share, effective with the dividend expected to be paid in June 2025.



Chairman and CEO Ramon Laguarta, said &#8220;Our businesses remained resilient in 2024, despite subdued category performance trends in North America, the continued impacts related to a recall in our Quaker Foods North America division and business disruptions due to geopolitical tensions in certain international markets.&#8221;



Outlook: PepsiCo expects&nbsp;low-single-digit increase in organic revenue for FY25 and a mid-single-digit increase in core constant currency EPS.



PepsiCo sees a core annual effective tax rate of approximately 20%.



The expects total cash returns to shareholders to be approximately $8.6 billion, consisting of dividends of $7.6 billion and share repurchases of $1.0 billion.



The company also expects a foreign exchange translation headwind of approximately 3% to negatively impact reported net revenue and core EPS growth.



Price Action: PEP shares are trading lower by 2.17% at $147.01 in premarket at the last check Tuesday.



Photo via Shutterstock.

Dividends

PepsiCo Q4 Earnings: EPS Beat, Subdued North America Performance, 5% Dividend Hike And More

On Tuesday,&nbsp;Merck&nbsp;&amp; Co Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MRK#NYSE">MRK</a>)&nbsp;reported fourth-quarter sales of $15.62 billion, up 7% year over year and slightly beating the&nbsp;<a target="_blank" href="https://www.benzinga.com/calendars/earnings" rel="noreferrer noopener">consensus estimate of $15.49 billion</a>. Excluding the impact of foreign exchange, sales increased 9%.



Merck reported adjusted EPS of $1.72, up from $0.03 a year ago and beating the&nbsp;consensus of $1.62. Lower charges for business development transactions and operational strength <a target="_blank" href="https://www.benzinga.com/general/biotech/25/02/43445253/merck-vs-pfizer-which-pharmaceutical-giant-will-prevail-in-q4-earnings" rel="noreferrer noopener">primarily drove the increase</a>.



"We delivered strong growth in 2024, reflecting demand for our innovative portfolio, including for KEYTRUDA, which continues to benefit more patients with cancer globally, the successful launch of WINREVAIR and strong performance of our Animal Health business," said Robert Davis, chairman and chief executive officer, Merck.



Also Read:&nbsp;<a target="_blank" href="https://www.benzinga.com/25/01/43166965/senate-hearings-loom-as-robert-f-kennedy-faces-scrutiny-over-conflicts-of-interest-in-mercks-gardasil-vaccine-litigation" rel="noreferrer noopener">RJK Jr.'s Involvement In Merck Lawsuit Faces Scrutiny Ahead Of Senate Hearing</a>



The pharmaceutical unit booked&nbsp;$14.04 billion&nbsp;in revenue, up 7% year over year (+8% ex-exchange). The increase is driven by growth in oncology and cardiovascular, partially offset by declines in diabetes, vaccines, <a target="_blank" href="https://www.benzinga.com/pressreleases/25/02/b43457435/merck-announces-fourth-quarter-and-full-year-2024-financial-results" rel="noreferrer noopener">immunology, and virology</a>.



Merck's blockbuster cancer immunotherapy Keytruda generated&nbsp;$7.84 billion&nbsp;in revenue during the quarter, up 19% from the year-earlier period.



Merck reported a decline of 17% in sales of Gardasil to $1.55 billion, a vaccine that prevents cancer from HPV, the most common sexually transmitted infection in the U.S., primarily due to lower demand in China, partially offset by higher demand in most international regions, particularly in Japan.



In the third quarter, Merck reported a decline of 11% in <a target="_blank" href="https://www.benzinga.com/news/earnings/earnings-beats/24/10/41655506/merck-beats-q3-estimates-but-lowers-annual-forecast-as-gardasil-vaccine-hit-by-low-c" rel="noreferrer noopener">Gardasil sales to $2.31 billion</a>. The newly approved Winrevair (sotatercept) for adults with pulmonary arterial hypertension generated&nbsp;<a target="_blank" href="https://www.benzinga.com/general/biotech/24/03/37958211/mercks-11b-bet-pays-as-fda-approves-sotatercept-for-rare-lung-disease" rel="noreferrer noopener">sales of $200 million</a>.



Guidance:&nbsp;Merck expects fiscal year 2025 sales of $64.1 billion-$65.6 billion versus a consensus of $67.31 billion,&nbsp;including a negative impact of foreign exchange of approximately 2% at mid-January 2025 exchange rates.



The sales range reflects a decision to temporarily pause Gardasil/Gardasil 9 shipments into China beginning February 2025 through at least mid-year.



The U.S. pharma giant expects adjusted EPS Of $8.88-$9.03 versus a consensus of $9.02. The guidance includes an expected one-time charge of $300 million, or approximately $0.09 per share, related to a milestone payment to LaNova, which will be recognized upon completion of the technology transfer for MK-2010.



Price Action: MRK stock is down 7.81% at $92.01 premarket at the last check on Tuesday.



Read Next:



<ul>
<li><a href="https://www.benzinga.com/25/02/43457741/paramount-inks-groundbreaking-deal-with-nielsen-for-data-services" target="_blank" rel="noreferrer noopener">Paramount Resumes Partnership With Nielsen For Data Services: Details</a></li>
</ul>



Image via Merck

Merck's Gardasil Vaccine Slowdown In China Bites Again, Stock Falls On Weak 2025 Outlook

U.S. stock futures were trading lower on Tuesday after Monday&#8217;s decline as the new administration&#8217;s tariffs continued to spook the market.



On Monday, Mexico&#8217;s president Claudia Sheinbaum reached a deal with President Donald Trump to delay tariffs by increasing Mexico's military presence on the US border. Later, after a call between Trump and Canadian Prime Minister Justin Trudeau, tariffs on Canada were also suspended for 30 days.



All major index futures were down. Google parent Alphabet Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>), Advanced Micro Devices Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMD#NASDAQ">AMD</a>), Pfizer Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PFE#NYSE">PFE</a>), PepsiCo Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PEP#NASDAQ">PEP</a>) and Spotify Technology SA (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPOT#NYSE">SPOT</a>) are expected to report earnings today.



The 10-year Treasury yield stood at 4.58%, while the two-year yield was at 4.25%. According to the CME Group's FedWatch <a href="https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html">tool</a>, there is an 86.5% chance that the Federal Reserve will keep interest rates unchanged for the March meeting.



<figure class="wp-block-table is-style-stripes"><table style="overflow:auto; height: 90px; display: block;"><tbody><tr><td>Futures</td><td>Change (+/-)</td></tr><tr><td>Nasdaq 100</td><td>-0.10%</td></tr><tr><td>S&amp;P 500</td><td>-0.20%</td></tr><tr><td>Dow Jones</td><td>-0.24%</td></tr><tr><td>Russell 2000</td><td>-0.14%</td></tr></tbody></table></figure>



The SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) and Invesco QQQ Trust ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) were mixed during premarket trading on Tuesday. SPY fell 0.17% to $596.75, and QQQ was up 0.01% to $518.16, according to <a href="https://pro.benzinga.com/dashboard">Benzinga Pro</a> data.



Cues From The Last Session



US stocks <a href="https://www.benzinga.com/25/02/43455955/dow-trims-losses-after-trump-delays-mexico-tariff-investor-sentiment-improves-fear-greed-index-in-fear-zone">declined</a> on Monday following Trump&#8217;s tariff announcement which led to the Dow dropping over 665 points intraday. 



Owens &amp; Minor Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OMI#NYSE">OMI</a>) shares fell 35% after lowering revenue guidance, while Tyson Foods Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSN#NYSE">TSN</a>) reported strong earnings.



December U.S. construction spending rose 0.5%, and the January ISM manufacturing PMI increased to 50.9.



Most S&amp;P 500 sectors declined, led by consumer discretionary, information technology, and industrials, while utilities and consumer staples gained.



<figure class="wp-block-table is-style-stripes"><table style="overflow:auto; height: 90px; display: block;"><tbody><tr><td>Index</td><td>Performance (+/-)</td><td>Value</td></tr><tr><td>Nasdaq Composite</td><td>-1.20%</td><td>19,391.96</td></tr><tr><td>S&amp;P 500</td><td>-0.76%</td><td>5,994.57</td></tr><tr><td>Dow Jones</td><td>-0.28%</td><td>44,421.91</td></tr><tr><td>Russell 2000</td><td>-1.28%</td><td>2,258.42</td></tr></tbody></table></figure>



Insights From Analysts



As the market declined following the tariffs and trade wars, Ryan Detrick, the chief market strategist at Carson Research, calmed the investors down by highlighting that every year has scary headlines that pull the stock market down.



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">Every year has scary headlines. <a href="https://t.co/1JknCIqrRc">pic.twitter.com/1JknCIqrRc</a>&mdash; Ryan Detrick, CMT (@RyanDetrick) <a href="https://twitter.com/RyanDetrick/status/1886424284609835091?ref_src=twsrc%5Etfw">February 3, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



He further explained the basic principle of investing in the market by saying &#8220;Volatility is the toll we pay to invest&#8221;.



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">Now&#39;s a good time to remember that volatility is the toll we pay to invest. Each year has scary moments, it is all part of investing. <a href="https://t.co/9FezMYHa4M">pic.twitter.com/9FezMYHa4M</a>&mdash; Ryan Detrick, CMT (@RyanDetrick) <a href="https://twitter.com/RyanDetrick/status/1886424165021819285?ref_src=twsrc%5Etfw">February 3, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Highlighting the tariff impact, economist Jeremy Siegel said that the prospect of new trade barriers introduces another layer of volatility, with markets reacting negatively to the uncertainty.



&#8220;History has shown that tariffs are rarely viewed as a net positive for equities, and while they could lead to a temporary bump in inflation and price levels, the Fed is unlikely to respond to a one-time inflationary shock,&#8221; he added.



While Mexican and Canadian tariffs were paused, Siegel, who is the senior economist at WisdomTree and a former professor at the University of Pennsylvania added that &#8220;Trump's new tariffs are not smart either economically or politically&#8221;.



&#8220;The political impact is likely to be very negative for Trump's program, as the rise in prices (gasoline and some food items) will have high visibility in the mainstream media and put pressure on some legislators,&#8221; he added.



See Also: <a href="https://www.benzinga.com/money/how-to-trade-futures">How to Trade Futures </a>



Upcoming Economic Data



Here&#8217;s what investors will keep an eye on Tuesday:



<ul>
<li>December&#8217;s job openings and factory orders data will be out at 10:00 a.m., ET</li>
</ul>



<ul>
<li>Atlanta Fed President Raphael Bostic will speak again at 11:00 a.m., ET on Tuesday, on the topic of housing.</li>
</ul>



<ul>
<li>San Francisco Fed President Daly will speak at 2:00 p.m., ET and Federal Reserve Vice Chairman Philip Jefferson will speak at 7:30 p.m., ET.</li>
</ul>



Stocks In Focus:



<ul>
<li>Spotify Technology SA (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPOT#NYSE">SPOT</a>) was up 2.90% in the premarket on Tuesday as it is expected to report its fourth-quarter earnings before the market opens. According to Benzinga's consensus estimates, the company is expected to report earnings of $2.060 per share on the revenue of $4.15 billion.</li>
</ul>



<ul>
<li>PepsiCo Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PEP#NASDAQ">PEP</a>) declined 0.19% ahead of its earnings before the opening bell. Analysts expect it to report quarterly earnings of $1.94 per share on revenue of $27.89 billion.</li>
</ul>



<ul>
<li>Pfizer Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PFE#NYSE">PFE</a>) rose 0.53% as Wall Street expects it to report quarterly earnings of 47 cents per share on revenue of $17.40 billion.</li>
</ul>



<ul>
<li>Electronic Arts Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/EA#NASDAQ">EA</a>) slipped 0.19% ahead of its earnings which will be released after the closing bell. Analysts expect it to report quarterly earnings of $3.08 per share on revenue of $2.32 billion.</li>
</ul>



<ul>
<li>UBS Group AG (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UBS#NYSE">UBS</a>) fell 5.58% despite reporting stronger-than-expected earnings for its fourth quarter because it disclosed a share buyback program of up to $3 billion, which failed to impress investors.</li>
</ul>



<ul>
<li>NXP Semiconductors NV (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NXPI#NASDAQ">NXPI</a>) was up 0.80% as it posted upbeat earnings and sales results for its fourth quarter on Monday.</li>
</ul>



<ul>
<li>Palantir Technologies Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PLTR#NASDAQ">PLTR</a>) was up 18.77% following better-than-expected fourth-quarter results.</li>
</ul>



<ul>
<li>Illumina Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ILMN#NASDAQ">ILMN</a>) slipped 5.11% and PVH Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PVH#NYSE">PVH</a>) declined 3.98% as the Chinese Ministry of Commerce added the companies to the unreliable entities list amid the ongoing trade war with the U.S.</li>
</ul>



Commodities, Gold And Global Equity Markets:



Crude oil futures were trading lower in the early New York session by 1.54% to hover around $72.03 per barrel.



The gold spot index was down by 0.01% to $2,814.48 per ounce. The Dollar Index was down 0.36% at 108.60 level.



Asian markets were mixed on Tuesday as China's CSI 300 and Australia's ASX 200 index fell. Whereas Hong Kong's Hang Seng, South Korea's Kospi, and Japan's Nikkei 225 index advanced. European markets were also mixed in trade.



Read Next:



<ul>
<li><a href="https://www.benzinga.com/etfs/sector-etfs/25/02/43456454/bill-gates-says-nvidias-jensen-huang-could-be-wrong-about-quantum-computing-qubt-rgti-ionq-react-in-tuesday-premarket">Bill Gates Says Nvidia&#8217;s Jensen Huang &#8216;Could Be Wrong&#8217; About Quantum Computing: QUBT, RGTI, IONQ React In Tuesday Premarket </a></li>
</ul>



Photo courtesy: Shutterstock

Futures

Pre-Market Outlook

Markets

GOOG

NXPI

SPOT

US Stocks Likely To Open Lower As Trump's Trade War Continues To Impact The Market: 'Volatility Is The Toll We Pay To Invest,' Says Expert

Microsoft Corporation&#8216;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>) founder Bill Gates said that it could take three to five years to develop logical quantum computing qubits while immediately adding that the timeline could be longer. 



What Happened: Gates, who is invested in the quantum computing company IonQ Inc. through his venture Breakthrough Energy, spoke about the quantum computing companies <a href="https://finance.yahoo.com/news/bill-gates-theres-a-possibility-quantum-computing-will-become-useful-in-3-to-5-years-152007398.html">during</a> Yahoo Finance&#8217;s Opening Bid podcast.



He explained that Huang&#8217;s prediction may be incorrect but it&#8217;s possible that within three to five years, one of these quantum computing techniques will achieve sufficient logical qubits to solve complex problems.



However, Gates immediately went on to say &#8220;But Jensen&#8217;s correct, it could take longer, this is both in terms of how you build a quantum computer and what software you write that can solve problems that other computers couldn&#8217;t write.&#8221;



Rigetti Computing Inc. and IonQ were up on Monday. Quantum computing stocks have declined on a year-to-date basis. The exchange-traded fund that tracks quantum computing stocks Defiance Quantum ETF declined 0.52% on Monday and 0.63% year-to-date. However, stocks were up in pre-market trading on Tuesday, with the exception of IonQ.



<figure class="wp-block-table is-style-stripes"><table style="overflow:auto; height: 90px; display: block;"><tbody><tr><td>Stocks</td><td>Monday&#8217;s Performance</td><td>Tuesday Pre-Market Performance</td><td>YTD Performance</td></tr><tr><td>Rigetti Computing Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RGTI#NASDAQ">RGTI</a>)</td><td>2.28%</td><td>1.56%</td><td>-32.65%</td></tr><tr><td>Quantum Computing Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QUBT#NASDAQ">QUBT</a>)</td><td>-4.14%</td><td>2.61%</td><td>-46.96%</td></tr><tr><td>D-Wave Quantum Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/QBTS#NYSE">QBTS</a>)</td><td>-3.03%</td><td>2.26%</td><td>-40.06%</td></tr><tr><td>IonQ Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IONQ#NYSE">IONQ</a>)</td><td>5.01%</td><td>-0.19%</td><td>-3.78%</td></tr><tr><td>Defiance Quantum ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QTUM#NASDAQ">QTUM</a>)</td><td>-0.52%</td><td>1.36%</td><td>-0.63%</td></tr></tbody></table></figure>



See Also: <a href="https://www.benzinga.com/news/events/25/02/43455326/illumina-stock-tumbles-nearly-5-overnight-on-robinhood-as-china-adds-ilmn-calvin-klein-owner-pvh-to-unreliable-entities-list-amid-trade-war-with-us">Illumina Stock Tumbles Nearly 5% Overnight On Robinhood As China Adds ILMN, Calvin Klein Owner PVH To &#8216;Unreliable Entities List&#8217; Amid Trade War With US</a>



Why It Matters: Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) CEO Jensen Huang during CES 2025 <a href="https://www.benzinga.com/markets/equities/25/01/42966492/jensen-huang-said-quantum-computing-is-20-years-away-but-nvidia-bets-big-on-strategic-hiring">predicted</a> that practical quantum computing is 15-30 years away. This was accompanied by similar skepticism from Meta Platform Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>) CEO Mark Zuckerberg, <a href="https://www.benzinga.com/markets/equities/25/01/42939766/quantum-computing-stocks-tumble-after-mark-zuckerberg-backs-nvidia-ceo-jensen-huangs-practical-comments-qubt-down-9-rgti-falls-16-and-ionq-loses-15">calling</a> quantum computing "still quite a ways off from being a truly practical paradigm,&#8221; during a podcast.



Gates, during the interaction, went on to say &#8220;I am thrilled that MSFT is making those investments but there is a great deal of uncertainty there.&#8221;



However, he added that rapid and predictable advancements in artificial intelligence over the next three to five years promise significant capabilities.



Read Next:



<ul>
<li><a href="https://www.benzinga.com/general/market-summary/25/02/43454291/winner-winner-chicken-dinner-tyson-foods-q1-beat-showcases-improved-execution-in-poultry-says-ceo" target="_blank" rel="noreferrer noopener">Winner Winner, Chicken Dinner: Tyson Foods Q1 Beat Showcases ‘Improved Execution' In Poultry, Says CEO</a></li>
</ul>



Photo courtesy: Shutterstock

IONQ

MSFT

NVDA

QBTS

QTUM

QUBT

RGTI

Bill Gates Says Nvidia's Jensen Huang 'Could Be Wrong' About Quantum Computing: QUBT, RGTI, IONQ React In Tuesday Premarket

Mark Zuckerberg-led Meta Platforms Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>) on Tuesday suggested that it might discontinue the development of certain <a href="https://www.benzinga.com/25/01/43351386/metas-ai-investments-llama-expansion-and-ad-tech-drive-growth-earn-analyst-conviction">artificial intelligence</a> (AI) systems that it perceives as too risky.



What Happened: The document, dubbed the Frontier AI Framework, identifies two categories of AI systems that Meta deems too risky to release: &#8220;high risk&#8221; and &#8220;critical risk&#8221; systems. These systems could potentially be used in cybersecurity, chemical, and biological attacks. 



The distinction between the two lies in the severity of the potential outcome, with &#8220;critical risk&#8221; systems posing a threat that cannot be mitigated in the proposed deployment context.



The document also lists examples of possible attacks, such as the &#8220;automated end-to-end compromise of a best-practice-protected corporate-scale environment&#8221; and the &#8220;proliferation of high-impact biological weapons.&#8221; While the list is not exhaustive, it includes scenarios that the tech giant believes to be the most urgent and plausible.



Meta&#8217;s approach to risk classification relies on insights from internal and external researchers rather than empirical testing. Senior decision-makers review these assessments, as the company acknowledges that current evaluation methods lack the scientific precision needed for definitive quantitative risk metrics.



See Also: <a href="https://www.benzinga.com/startups/25/02/43423992/ai-could-be-as-deadly-as-nuclear-weapons-how-chinas-advances-change-the-game">AI Could Be As Deadly As Nuclear Weapons&#8217;: How China&#8217;s Advances Change The Game</a>



Why It Matters: The Frontier AI Framework and the commitment to public AGI, while restricting high-risk AI systems, align with Meta&#8217;s aggressive investment in AI and AR/VR technologies. <a href="https://www.benzinga.com/25/02/43442424/meta-outspends-apple-and-amazon-on-arvr-betting-big-on-future-of-smart-glasses-and-ai">Meta&#8217;s investment</a> in virtual and augmented reality is projected to exceed $100 billion in 2025, coinciding with Zuckerberg&#8217;s prediction of 2025 as a pivotal year for its smart glasses. 



This Frontier AI Framework also underscores the company&#8217;s cautious approach towards potential risks associated with AI deployment. In the document, Meta stated, "We believe that by considering both benefits and risks in making decisions about how to develop and deploy advanced AI, it is possible to deliver that technology to society in a way that preserves the benefits of that technology to society while also maintaining an appropriate level of risk."



Earlier this year, Zuckerberg acknowledged the impact of DeepSeek's novel approaches on Meta&#8217;s AI development. Despite the potential disruption from DeepSeek&#8217;s cost-effective R1 model, both <a href="https://www.benzinga.com/content/43422817/microsoft-and-metas-ai-investment-plans-are-full-steam-ahead">Microsoft</a> and Meta have confirmed their commitment to AI investment.



<ul>
<li>Read more: <a href="https://www.benzinga.com/markets/25/01/43326499/mark-zuckerberg-says-chinas-deepseek-did-some-novel-things-were-still-digesting-but-meta-may-keep-pouring-billions-into-ai-infrastructure-anyway">Mark Zuckerberg Says China&#8217;s DeepSeek Did Some Novel Things &#8216;We&#8217;re Still Digesting,&#8217; But Meta May Keep Pouring Billions Into AI Infrastructure Anyway</a></li>
</ul>



Image via Shutterstock



Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Mark Zuckerberg's Meta Says Some AI Systems Are Too Dangerous To Release And May Halt Development If It Sees 'Critical Risk'

Leading cryptocurrencies rebounded Monday as President Donald Trump's brief tariff reprieve fueled positive sentiment in risk-on markets.



<figure class="wp-block-table"><table style="overflow:auto; height: 90px; display: block;"><tbody><tr><td>Cryptocurrency</td><td>Gains +/-</td><td>Price (Recorded at 7:45 p.m. ET)</td></tr><tr><td>Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>)</td><td>+5.14%</td><td>$101,349.10</td></tr><tr><td>Ethereum (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/eth/usd">ETH</a>) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td><td>+1.46%</td><td>$2,860.84</td></tr><tr><td>Dogecoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/doge/usd">DOGE</a>)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td><td>+15.87%</td><td>$0.2866</td></tr></tbody></table></figure>



What Happened: Bitcoin surged past $100,000, a day after plunging below $92,000. The leading cryptocurrency hit an intraday high of $102,500 before paring gains overnight.



Ethereum chalked out modest gains, but the second-largest cryptocurrency was yet to reclaim the pre-slump levels. Dogecoin rallied 15%, erasing significant losses from the Sunday decline.



Cryptocurrency liquidations hit $1.56 billion over the last 24 hours, with longs accounting for over $1 billion.&nbsp;



If Bitcoin retraces to $95,000 again, over $1 billion in upside bets will be wiped out.



More than 55% of Bitcoin futures traders were short Bitcoin, according to the Long/Short Ratio, signaling a potential drop.



Meanwhile, Bitcoin's Open Interest rose 2.36% in the last 24 hours, suggesting a surge in speculative trading.



Market sentiment flipped from "Fear" to "Greed", according to the Crypto Fear &amp; Greed Index.



Top Gainers (24-Hours)



<figure class="wp-block-table"><table style="overflow:auto; height: 90px; display: block;"><tbody><tr><td>Cryptocurrency</td><td>Gains +/-</td><td>Price (Recorded at 7:45 p.m. ET)</td></tr><tr><td>MANTRA (OM)</td><td>+25.38%</td><td>$6.20</td></tr><tr><td>Ethena (ENA)</td><td>+20.65%</td><td>$0.6834</td></tr><tr><td>Onyxcoin (XCN)</td><td>+19.10%</td><td>$1.04</td></tr></tbody></table></figure>



The global cryptocurrency market capitalization stood at $3.35 trillion, rising 4.38% in the last 24 hours.



Stock futures climbed Monday night after Trump <a href="https://www.benzinga.com/25/02/43450261/trump-trudeau-strike-border-security-deal-tariffs-on-canada-paused-for-at-least-30-days">paused planned tariffs</a> against Canada and Mexico. The Dow Jones Industrial Average Futures rose 151 points, or 0.34%, as of 7:48 p.m. EDT.&nbsp;



Earlier in the day, major averages closed in the red. The Dow Jones Industrial Average lost 122.75 points, or 0.28%, to close at 44,421.91. The S&amp;P 500 slid 0.76%, ending at 5,994.57, while the tech-heavy Nasdaq Composite dipped 1.20% to close at 19,391.96.



See More: <a href="https://www.benzinga.com/money/best-crypto-scanners">Best Cryptocurrency Scanners</a>



Analyst Notes: Popular cryptocurrency analyst and trader Rekt Capital noted Bitcoin's recovery to the $101,000 level.



"Now BTC needs to daily close above it and retest it successfully to reclaim it into support," the analyst remarked. "Until then &#8211; $101,000 needs to prove it is not a new resistance."



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true"><a href="https://twitter.com/hashtag/BTC?src=hash&amp;ref_src=twsrc%5Etfw">#BTC</a> Bitcoin has successfully revisited the $101k level (black) Now BTC needs to Daily Close above it and retest it successfully to reclaim it into support A successful reclaim and BTC could continue to the blue diagonal above Until then &#8211; $101k needs to prove it is not a… <a href="https://t.co/gHHQGCypXL">https://t.co/gHHQGCypXL</a> <a href="https://t.co/KloKLgqs9f">pic.twitter.com/KloKLgqs9f</a>&mdash; Rekt Capital (@rektcapital) <a href="https://twitter.com/rektcapital/status/1886501278819475809?ref_src=twsrc%5Etfw">February 3, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Another well-known analyst, Ali Martinez, spotted a potential head-and-shoulders pattern for Ethereum.



"ETH must hold above $2,700 to keep the bullish structure intact and have a chance of reaching $7,000," Martinez projected.



The inverse head and shoulders pattern is a bullish reversal pattern, indicating exhaustion of a prolonged downturn.



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">If this is a head-and-shoulders pattern, <a href="https://twitter.com/hashtag/Ethereum?src=hash&amp;ref_src=twsrc%5Etfw">#Ethereum</a> <a href="https://twitter.com/search?q=%24ETH&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$ETH</a> must hold above $2,700 to keep the bullish structure intact and have a chance of reaching $7,000! <a href="https://t.co/nR6TDg2jA4">pic.twitter.com/nR6TDg2jA4</a>&mdash; Ali (@ali_charts) <a href="https://twitter.com/ali_charts/status/1886352428477391317?ref_src=twsrc%5Etfw">February 3, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Photo by SvetlanaParnikova on Shutterstock



Read Next:    



<ul>
<li><a href="https://www.benzinga.com/government/regulations/25/02/43451872/kalshi-crypto-com-super-bowl-contracts-under-regulatory-scrutiny">Kalshi, Crypto.com Super Bowl Contracts Under Regulatory Scrutiny</a></li>
</ul>

Cryptocurrency

$BTC

$DOGE

$ETH

Bitcoin, Ethereum, Dogecoin Stage Strong Rebound As Trump Pauses Canada, Mexico Tariffs: Analyst Flags Significance Of $101,000 For BTC

Palantir Technologies Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PLTR#NASDAQ">PLTR</a>) is capturing Wall Street&#8217;s attention, with market commentators Jim Cramer and Dan Ives making bold predictions about the company&#8217;s potential in the artificial intelligence revolution.



What Happened: On X, CNBC&#8217;s Cramer wrote, &#8220;I predicted $100 on Palantir and I promise I won&#8217;t let you down&#8230;&#8221; This comes as the stock experienced a dramatic after-hours surge of 22.75%, closing at $102.79.



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">I predicted $100 on Palantir and i promise I won&#39;t let you down&#8230;&mdash; Jim Cramer (@jimcramer) <a href="https://twitter.com/jimcramer/status/1886527639634239959?ref_src=twsrc%5Etfw">February 3, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Wedbush Securities Managing Director Ives was even more bullish, describing Palantir&#8217;s earnings as a &#8220;massive AIP growth&#8221; and a &#8220;very bullish barometer for use cases accelerating as part of the AI Revolution in 2025.&#8221; Ives went as far as suggesting Palantir could become &#8220;the next Oracle&#8221; in an interview with CNBC and potentially reach a trillion-dollar market cap in the next few years.



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">Great to be on <a href="https://twitter.com/CNBCOvertime?ref_src=twsrc%5Etfw">@CNBCOvertime</a> with <a href="https://twitter.com/MorganLBrennan?ref_src=twsrc%5Etfw">@MorganLBrennan</a> <a href="https://twitter.com/jonfortt?ref_src=twsrc%5Etfw">@jonfortt</a> discussing the Messi of AI Palantir with a growth quarter for the ages as the AI Revolution takes hold. <a href="https://twitter.com/CNBC?ref_src=twsrc%5Etfw">@CNBC</a> &#x1f3c6;&#x1f525;&#x1f402;&#x1f37f;&#x1f4fa;&#x1f447;<a href="https://t.co/xWjdtjl0o3">https://t.co/xWjdtjl0o3</a> <a href="https://t.co/lwxyFDapLE">pic.twitter.com/lwxyFDapLE</a>&mdash; Dan Ives (@DivesTech) <a href="https://twitter.com/DivesTech/status/1886547930544255305?ref_src=twsrc%5Etfw">February 3, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



See Also: <a href="https://www.benzinga.com/markets/equities/25/02/43452478/salesforce-cuts-1000-jobs-but-ramps-up-hiring-for-ai-sales-roles">Salesforce Cuts 1000 Jobs But Ramps Up Hiring For AI Sales Roles</a>



Why It Matters: The company&#8217;s <a href="https://www.benzinga.com/news/earnings/25/02/43449486/palantir-q4-earnings-revenue-beat-eps-beat-us-revenue-up-52-customer-count-up-43-strong-guidance-this-is-a-new-phase-unlike-anything-that-has-come-before">fourth-quarter results</a> provide substantial backing to these optimistic views. Palantir reported revenue of $827.52 million, beating consensus estimates, with U.S. revenue growing 52% year-over-year and commercial revenue jumping 64%.



CEO Alex Karp emphasized the company&#8217;s transformative potential, positioning Palantir at the center of AI&#8217;s emerging landscape. The company&#8217;s strong performance and forward guidance suggest these expert predictions might be more than just market hype.



Price Action: Palantir&#8217;s stock surged 22.75% to an all-time high of $102.79 in after-hours trading on Monday, following a 1.52% gain in the regular session, closing at $83.74, according to <a href="https://www.benzinga.com/pro/">data from Benzinga Pro</a>.



Read Next: 



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<li><a href="https://www.benzinga.com/government/regulations/25/02/43451675/bessent-freezes-consumer-financial-protection-bureau-work-leaving-lawsuits-against-jpmorgan-bank-of-america-capital-one-in-limbo">Bessent Freezes Consumer Financial Protection Bureau Work Leaving Lawsuits Against JPMorgan, Bank Of America, Capital One In Limbo</a></li>
</ul>



Image Via Shutterstock 



Disclaimer:&nbsp;This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Palantir Crosses $100 Mark In After-Hours Trading, Hits All-Time High — Jim Cramer Says 'Won't Let You Down'

On Monday, Cathie Wood-led Ark Invest made significant trades involving Lockheed Martin Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LMT#NYSE">LMT</a>), Reddit Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RDDT#NYSE">RDDT</a>), and Iridium Communications Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/IRDM#NASDAQ">IRDM</a>). 



The Lockheed Martin Corp Trade



Ark Invest&#8217;s decision to sell 15,995 shares of Lockheed Martin Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LMT#NYSE">LMT</a>) through ARK Autonomous Technology &amp; Robotics ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/ARKQ#BATS">ARKQ</a>) comes during a period of mixed financial results for the aerospace giant. Recently, Lockheed Martin reported a slight decline in net sales for the fourth quarter of 2024, missing consensus estimates. However, the company <a href="https://www.benzinga.com/news/earnings/25/01/43271143/lockheed-martin-q4-earnings-sales-miss-margin-squeeze-but-backlog-boosts-2025-prospects">surpassed earnings expectations</a> with an adjusted EPS of $7.67. Despite challenges, analysts remain <a href="https://www.benzinga.com/25/01/43313600/lockheed-martin-to-face-near-term-challenges-say-analysts">optimistic</a> about the company&#8217;s future, especially with the F-35 program ramping up, as highlighted by BofA Securities. The closing price for LMT on Monday was $455.42. The Ark trade was valued at $7.3 million.



The Reddit Trade



Ark Invest jettisoned 2,716 Reddit Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RDDT#NYSE">RDDT</a>) shares, worth $549,473, through Ark Fintech Innovation ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ARKF#NYSE">ARKF</a>). the dynamic sentiment surrounding the social media platform. Analysts have provided a range of opinions on Reddit, with a recent <a href="https://www.benzinga.com/insights/analyst-ratings/25/01/43317183/18-analysts-assess-reddit-what-you-need-to-know">analysis</a> showing a diverse set of ratings. Analysts&#8217; 12-month price targets average $185.89, up 51.36% from $122.81. Reddit&#8217;s stock closed at $202.31 on Monday marking a 1.38% rise.



The Iridium Trade



Ark Invest&#8217;s purchase of Iridium Communications Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/IRDM#NASDAQ">IRDM</a>) shares via ARK Space Exploration &amp; Innovation ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/ARKX#BATS">ARKX</a>) aligns with the company&#8217;s recent strong performance. On Monday, Ark picked up 22,067 Iridium shares worth $626,261.



Iridium, reported an 8% increase in total revenue for the third quarter of 2024, driven by higher commercial and government service revenues, as detailed in a <a href="https://www.benzinga.com/news/earnings/24/10/41383069/iridiums-q3-revenue-soars-8-fy24-outlook-brightens-as-subscriber-base-expands">previous report</a>. The company&#8217;s stock closed at $28.38 for the day, reflecting a slight decrease of 1.29%.



Other Key Trades:



<ul>
<li>Accolade Inc (ACCD): Sold 80,788 shares by ARKG.</li>



<li>L3Harris Technologies Inc (LH): Bought 32,680 shares by ARKQ.</li>



<li>Nu Holdings Ltd (LU): Sold 100 shares via ARKW.</li>
</ul>



Image via Shutterstock



Read Next: 



<ul>
<li><a href="https://www.benzinga.com/25/02/43450261/trump-trudeau-strike-border-security-deal-tariffs-on-canada-paused-for-at-least-30-days">Trump, Trudeau Strike Border Security Deal, Tariffs On Canada Paused For &#8216;At Least 30 Days&#8217;</a></li>
</ul>



This story was generated using <a href="https://www.benzinga.com/author/benzinga-neuro">Benzinga Neuro</a> and edited by <a href="https://www.benzinga.com/author/shivdeep-dhaliwal" target="_blank" rel="noreferrer noopener">Shivdeep Dhaliwal</a>

ARKF

ARKQ

ARKX

IRDM

RDDT

Cathie Wood's Ark Invest Dumps Lockheed Martin Shares, Swoops Up Stock Of This Satellite Phone Provider

The CNN Money Fear and Greed index showed some improvement in the overall market sentiment, while the index remained in the &#8220;Fear&#8221; zone on Monday.



U.S. stocks settled lower on Monday, with the Dow Jones index falling more than 100 points during the session after President Donald Trump announced plans to pause tariffs against Mexico for one month. The index dipped as much as 665.6 points earlier during the session.



Owens &amp; Minor Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OMI#NYSE">OMI</a>) shares dipped 35% on Monday after the company issued lower-than-expected fourth-quarter and FY24 preliminary revenue results. Tyson Foods Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSN#NYSE">TSN</a>) posted better-than-expected first-quarter FY25 earnings results.



On the economic data front, U.S. construction spending increased by 0.5% month-over-month to an annual rate of $2,192 billion in December following a revised 0.2% gain in November. The ISM manufacturing PMI for the US climbed to 50.9 in January versus a revised reading of 49.2 in December topping estimates of 49.8.



Most sectors on the S&amp;P 500 closed on a negative note, with consumer discretionary, information technology, and industrials stocks recording losses on Monday. However, utilities and consumer staples stocks bucked the overall market trend, closing the session higher.



The Dow Jones closed lower by around 123 points to 44,421.91 on Monday. The S&amp;P 500 fell 0.76% to 5,994.57, while the Nasdaq Composite fell 1.20% at 19,391.96 during Monday's session.



Investors are awaiting earnings results from Electronic Arts Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/EA#NASDAQ">EA</a>), Pfizer Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PFE#NYSE">PFE</a>), and PepsiCo Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PEP#NASDAQ">PEP</a>) today.



What is CNN Business Fear &amp; Greed Index?



At a current reading of 44.1, the index remained in the &#8220;Fear&#8221; zone on Monday, versus a prior reading of 40.5.



The Fear &amp; Greed Index is a measure of the current market sentiment. It is based on the premise that higher fear exerts pressure on stock prices, while higher greed has the opposite effect. The index is calculated based on seven equal-weighted indicators. The index ranges from 0 to 100, where 0 represents maximum fear and 100 signals maximum greediness.



Read Next: 



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<li><a href="https://www.benzinga.com/25/02/43432950/jim-cramer-appfolio-is-a-cheap-stock-dont-sell-this-tech-stock">Jim Cramer Says AppFolio Is A &#8216;Good One,&#8217; But Summit Therapeutics? &#8216;Can&#8217;t Go There&#8217;</a></li>
</ul>



Photo courtesy: Shutterstock

Dow Trims Losses After Trump Delays Mexico, Canada Tariffs: Greed Index Remains In 'Fear' Zone

A second major development in the tariff political drama came late Monday as the United States and Canada reached an agreement to pause Donald Trump&#8217;s proposed trade levies <a href="https://www.benzinga.com/topic/tariffs">&#8220;for at least 30 days.&#8221;</a>



Canadian Prime Minister Justin Trudeau announced the deal on social media platform X following a phone call with Trump. 



The tariff deal includes new border security commitments to combat fentanyl trafficking and organized crime, mirroring Trump's agreement with <a href="https://www.benzinga.com/government/regulations/25/02/43440692/us-mexico-agrees-on-one-month-tariffs-pause-stocks-rebound-peso-rallies">Mexican President Claudia Sheinbaum.</a>



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">I just had a good call with President Trump. Canada is implementing our $1.3 billion border plan — reinforcing the border with new choppers, technology and personnel, enhanced coordination with our American partners, and increased resources to stop the flow of fentanyl. Nearly…&mdash; Justin Trudeau (@JustinTrudeau) <a href="https://twitter.com/JustinTrudeau/status/1886529228193022429?ref_src=twsrc%5Etfw">February 3, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



<h3 class="wp-block-heading">Canada Rolls Out $1.3 Billion Border Plan</h3>



Trudeau outlined a $1.3 billion border reinforcement initiative featuring:



<ul>
<li>Deployment of nearly 10,000 frontline personnel equipped with new helicopters, surveillance technology and enhanced coordination with U.S. agencies.</li>



<li>The appointment of a fentanyl Czar to spearhead drug interdiction efforts.</li>



<li>Official designation of cartels as terrorist organizations to enable tougher enforcement measures.</li>



<li>The creation of a Canada-U.S. Joint Strike Force targeting organized crime, fentanyl networks and money laundering.</li>



<li>A $200 million intelligence directive to enhance monitoring and enforcement along the northern border.</li>
</ul>



&#8220;Proposed tariffs will be paused for at least 30 days while we work together,&#8221; the Canadian prime minister said. 



<h3 class="wp-block-heading">Markets React: Canadian Dollar Rallies, Equities Gain</h3>



The tariff deal gave a reprieve Canadian assets that were battered by heightened uncertainty earlier Monday. 



The Canadian dollar rallied, with the USD/CAD exchange rate dropping to 1.4391, down from 1.46 levels prior to the news.



Canadian equities also advanced in after-hours trading, with the iShares MSCI Canada Index Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EWC#NYSE">EWC</a>) rising over 1%.



Read Next.



<ul>
<li><a href="https://www.benzinga.com/government/regulations/25/02/43447339/trump-announces-us-sovereign-wealth-fund-hints-at-tiktok-ownership">Trump Orders US Sovereign Wealth Fund, Hints At TikTok Ownership: &#8216;I Have The Right To Do That&#8217;</a></li>
</ul>



Photo via Shutterstock.

Emerging Markets

Trump, Trudeau Strike Border Security Deal, Tariffs On Canada Paused For 'At Least 30 Days '

Technology giant Alphabet Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>)(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>) could focus on cloud, AI and YouTube growth when the company reports fourth-quarter financial results after the <a href="https://www.benzinga.com/earnings">market close Tuesday.</a>



Earnings Estimates: Analysts expect the company to report fourth-quarter revenue of $96.6 billion, up from $86.3 billion in last year's fourth quarter, according to data <a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent020325&amp;t=be2bearmibe3na1">from Benzinga Pro.</a>



The company has beaten analyst estimates for revenue in seven straight quarters.



Analysts expect the company to report fourth-quarter earnings per share of $2.13, up from $1.64 in last year's fourth quarter. The company has beaten analyst estimates for earnings per share in seven straight quarters.



Read Also: <a href="https://www.benzinga.com/25/02/43441911/alphabets-q4-earnings-bullish-trend-just-getting-started">Alphabet Q4 Earnings Preview: Bullish Trend Just Getting Started?</a>



What Analysts Are Saying: Recent strength in advertising for Meta Platforms could foreshadow strong advertising strength for Alphabet, Bank of America analyst Justin Post<a href="https://www.benzinga.com/25/01/43396598/alphabet-shares-are-on-the-rise-today-whats-going-on"> recently said.</a>



The analyst, who has a Buy rating and $225 price target, said Alphabet should show positive commentary on cloud demand in the fourth-quarter results and commentary.



Post said Alphabet will likely show strength in search thanks to AI usage helping with monetization and YouTube could also benefit from improved AI targeting.



Potential negatives for Alphabet would be talking about tougher first-quarter advertising comps, slowing YouTube growth or new hiring/Capex commentary.



"We remain constructive on Alphabet and believe Street is likely underestimating potential for AIOs to drive Search monetization strength in 2025," Post said.



Here are other <a href="https://www.benzinga.com/quote/GOOGL/analyst-ratings">analyst ratings for Alphabet </a>and their price targets:



<ul>
<li>JMP Securities: Reiterated Market Perform rating, no price target</li>



<li>Needham: Maintained Buy rating, increased price target from $210 to $225</li>



<li>DA Davidson: Maintained Neutral rating, increased price target from $190 to $200</li>



<li>Cantor Fitzgerald: Maintained Neutral rating, lowered price target from $215 to $210</li>
</ul>



Key Items to Watch: Alphabet likely won't comment on pending legislation, but could be asked about its current case with the Department of Justice and what the new White House administration means.



Alphabet<a href="https://www.benzinga.com/tech/25/01/42898021/google-donates-1-million-to-trump-inauguration-plans-youtube-livestream-pleased-to-support"> donated $1 million</a> to Donald Trump's inauguration fund, an amount higher than the $285,000 donated to the 2016 and 2020 inaugurations. The company also live-streamed the inauguration on YouTube.



The donation comes as the company has been targeted by the Department of Justice for&nbsp;alleged monopolistic behavior&nbsp;and could be forced to break up and spin off assets such as the Chrome browser.



While there&#8217;s no certainty that a donation or a visit to Mar-a-Lago will sway the new administration or prevent such outcomes, changes to the DOJ's leadership could potentially shift the company's legal challenges.



Incoming Vice President&nbsp;J.D. Vance&nbsp;also previously said he&nbsp;<a href="https://www.benzinga.com/general/politics/24/07/39826475/trumps-new-running-mate-j-d-vance-wants-to-break-up-google-could-2024-election-be-bad-for-big-te" target="_blank" rel="noreferrer noopener">wants to break up&nbsp;</a>Alphabet, which could make the company a target of the new administration.



Senator&nbsp;Ted Cruz&nbsp;(R-Texas) recently told Politico that Republicans would target Alphabet&#8217;s Google and YouTube content moderation policies on the search engine.



As mentioned by Post, AI could also be one of the key themes.



"Our commitment to innovation, as well as our long-term focus and investment in AI, are paying off with consumers and partners benefiting from our AI tools," Alphabet CEO Sundar Pichai said after<a href="https://www.benzinga.com/news/earnings/24/10/41611263/alphabet-q3-earnings-highlights-revenue-beat-eps-beat-google-cloud-up-35-momentum-across-the-compan"> third-quarter results.</a>



Pichai said at the time that Alphabet was winning larger deals and attracting new customers thanks to its AI solutions in the cloud. Investors and analysts would welcome an update on this and what the future holds for its cloud segment thanks to AI tools.



YouTube passed $50 billion in total ads and subscription revenues over the last four quarters for the first time, he said.



GOOGL Price Action: Alphabet stock closed Monday down 1.37% to $201.23 versus a 52-week trading range of $130.67 to $205.48. Alphabet stock is up 40% over the last year.



Read Next: 



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Treasury Secretary Scott Bessent on Monday ordered a halt to the majority of work at the Consumer Financial Protection Bureau after being selected as the acting director of the agency by <a href="https://www.benzinga.com/government/regulations/25/02/43450076/trump-administration-weighs-plan-to-shut-down-education-department-which-stocks-could-be-affected">President Donald Trump. </a>



The Details: According to <a href="https://www.wsj.com/politics/policy/bessent-takes-helm-of-consumer-finance-watchdog-orders-halt-to-work-0a9cfc3d?mod=hp_lead_pos3">a report</a> from the Wall Street Journal, Bessent directed the CFPB to freeze much of its work in an internal email. The work stoppage includes decisions about active litigations, enforcement actions and suspends effective dates for completed rules that are not yet in effect.



Bessent is the temporary replacement for Biden appointee Rohit Chopra who was ousted from the agency on Friday.&nbsp;



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"I look forward to working with the CFPB to advance President Trump's agenda to lower costs for the American people and accelerate economic growth," Bessent said in a written statement Monday.



It is expected that Bessent will begin to roll back many of the regulations that were enacted under the Biden administration, including limits on overdraft fees and the exemption of medical debt reporting by credit agencies. 



CFPB Actions In Limbo: Many lawsuits brought by the CFPB now face an uncertain future as decisions on litigations and enforcement actions have been frozen.&nbsp;



In late December, the <a href="https://www.benzinga.com/news/legal/24/12/42713746/financial-crime-weekly-sec-charges-tai-mo-shan-with-misleading-terra-usd-investors-rocket-companies-sued-over-alleged-kickback-scheme">CFPB sued</a> Rocket Homes, a division of Rocket Companies, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RKT#NYSE">RKT</a>) in what it said was an action to stop the company from providing incentives to real estate brokers and agents to steer homebuyers to Rocket Mortgage. 



JPMorgan Chase &amp; Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JPM#NYSE">JPM</a>), Wells Fargo &amp; Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WFC#NYSE">WFC</a>), Bank of America Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BAC#NYSE">BAC</a>) and Early Warning Services also face <a href="https://www.benzinga.com/news/legal/24/12/42687945/zelle-became-a-gold-mine-for-fraudsters-consumer-financial-protection-bureau-lawsuit">a lawsuit</a> from the CFPB alleging the companies rushed to complete the Zelle payment network in order to compete with Venmo and CashApp and neglected to enact effective fraud safeguards.



The CFPB also slapped Capital One Financial Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/COF#NYSE">COF</a>) with <a href="https://www.benzinga.com/trading-ideas/movers/25/01/42981370/cfpb-sues-capital-one-over-alleged-2-billion-in-lost-interest-for-consumers">a lawsuit </a>in January accusing the bank of cheating millions of consumers out of more than $2 billion in lost interest.



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Bessent Freezes Consumer Financial Protection Bureau Work Leaving Lawsuits Against JPMorgan, Bank Of America, Capital One In Limbo

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