The S&amp;P 500 briefly hit 6,100 points on Wednesday, reaching a fresh all-time high as Wall Street embraced a powerful mix of strong corporate earnings and President Donald Trump's bold $500 billion artificial intelligence<a href="https://www.benzinga.com/25/01/43139410/softbanks-role-in-500-billion-stargate-ai-venture-seen-as-major-growth-driver-analyst-says"> initiative, dubbed &#8220;AI Stargate.&#8221; </a>



The project, designed to transform America's AI infrastructure, added fuel to a market already cheering on stronger-than-expected fourth-quarter earnings and rising hopes of Federal Reserve interest rate cuts later this year.



Mega-cap technology stocks and semiconductor giants led the charge, pushing the S&amp;P 500 — tracked by the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) — higher for the sixth time in the last seven sessions.



By midday Wednesday, the S&amp;P 500 hit 6,100.4 points, narrowly surpassing its previous record of 6,099 set on Dec. 6.



See Also: <a href="https://www.benzinga.com/25/01/43142623/happy-birthday-sp-500-spy-etf-if-you-invested-1000-in-spy-at-launch-heres-how-much-youd-have-today">Happy Birthday S&amp;P 500 SPY ETF! If You Invested $1,000 In SPY At Launch, Here&#8217;s How Much You&#8217;d Have Today</a>



<h3 class="wp-block-heading">AI Stargate: A Game-Changing Investment in AI Infrastructure</h3>



Trump unveiled AI Stargate on Jan. 21. The joint venture unites OpenAI, led by Sam Altman, SoftBank, backed by Masayoshi Son, and Oracle Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ORCL#NYSE">ORCL</a>) to build next-generation AI infrastructure.



The project aims to invest up to $500 billion over four years to develop massive AI data centers across the U.S., starting with an initial $100 billion phase.



Trump hailed the initiative as a &#8220;declaration of confidence in America&#8217;s potential,&#8221; emphasizing its importance in keeping the future of AI technology within U.S. borders. 



AI Stargate is expected to create 100,000 jobs almost immediately, further boosting optimism about economic growth.



<h3 class="wp-block-heading">Earnings Strength Fuels Market Optimism</h3>



While AI excitement dominated headlines, a strong corporate earnings season provided the foundation for the market&#8217;s rally. 



As of Jan. 17, 81% of S&amp;P 500 companies reporting fourth-quarter results had exceeded Wall Street's profit forecasts, while 64% had beaten revenue estimates, according to FactSet.



Mega-cap firms reporting earnings this week — including Netflix Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NFLX#NASDAQ">NFLX</a>), Charles Schwab Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SCHW#NYSE">SCHW</a>), Prologis Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PLD#NYSE">PLD</a>), Procter &amp; Gamble (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PG#NYSE">PG</a>), Abbott Laboratories (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ABT#NYSE">ABT</a>), and Johnson &amp; Johnson (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JNJ#NYSE">JNJ</a>) — all topped estimates, reinforcing investor confidence in corporate America&#8217;s strength.



&#8220;The S&amp;P 500's forward profit margin was at a record-high 13.6% during the January 18, 2025, week, up 0.9 percentage points from 12.7% a year earlier,&#8221; veteran investor Ed Yardeni said in a note Wednesday. 



&#8220;Corporate profitability should continue to improve even as Trump's administration faces a big fiscal headwind.&#8221;



<h2 class="wp-block-heading">Tech Titans Drive The Market Higher</h2>



The so-called &#8220;Magnificent 7&#8221; stocks were at the center of Wednesday's rally, with the Roundhill Magnificent Seven ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MAGS#NASDAQ">MAGS</a>) climbing 1.5%.



Microsoft Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NYSE">MSFT</a>) surged 4%, while Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) jumped 4.6%, reinforcing their dominance in the AI race. Chip stocks saw particularly strong gains as investors bet on increased demand for AI-related infrastructure. 



Arm Holdings plc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ARM#NASDAQ">ARM</a>), the SoftBank-owned semiconductor design firm, soared 15%—its biggest single-day gain since February 2024.



SoftBank's 2024 annual report had described Arm as providing &#8220;the foundational technology for Artificial Super Intelligence,&#8221; a claim that now appears increasingly relevant as AI Stargate takes shape.



<h3 class="wp-block-heading">Six Stocks Powering The S&amp;P 500's Record High</h3>



Just a handful of companies were responsible for a significant portion of the broader market's surge on Wednesday. 



Nvidia and Microsoft alone contributed 53 basis points to the S&amp;P 500&#8217;s advance, while Netflix, Amazon.com Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>), Meta Platforms Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>), and Oracle Corp. collectively added another 18 basis points.



<figure class="wp-block-table is-style-stripes"><table style="overflow:auto; height: 90px; display: block;"><thead><tr><th>Security Name</th><th>Price</th><th>Weight in S&amp;P 500</th><th>1-day %chg</th><th>Contribution to S&amp;P 500</th></tr></thead><tbody><tr><td>Nvidia Corp.</td><td>$1,472.46</td><td>6.51%</td><td>4.55%</td><td>+29bp</td></tr><tr><td>Microsoft Corp.</td><td>$445.37</td><td>6.27%</td><td>3.94%</td><td>+24bp</td></tr><tr><td>Netflix Inc.</td><td>$952.64</td><td>0.72%</td><td>9.54%</td><td>+6bp</td></tr><tr><td>Amazon.com Inc.</td><td>$233.46</td><td>4.10%</td><td>1.19%</td><td>+5bp</td></tr><tr><td>Meta Platforms Inc.</td><td>$626.13</td><td>2.65%</td><td>1.57%</td><td>+4bp</td></tr><tr><td>Oracle Corp.</td><td>$184.92</td><td>0.51%</td><td>7.15%</td><td>+3bp</td></tr></tbody></table></figure>



Read now: 



<ul>
<li><a href="https://www.benzinga.com/25/01/43059744/exclusive-can-sp-500-repeat-large-gains-from-donald-trumps-first-term-a-second-time-around-readers-say-this-return-range-most-likely" target="_blank" rel="noreferrer noopener">Can S&amp;P 500 Repeat Large Gains From Trump's First Term A Second Time Around? Readers Say This&#8230;</a></li>
</ul>



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S&P 500 Hits Fresh Records At 6,100: Strong Earnings, Trump's AI Wager Fuel Bull Run

Alcoa Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AA#NYSE">AA</a>) reported its fourth-quarter financial results after Wednesday's closing bell. Here's a look at the key <a href="https://www.benzinga.com/pressreleases/25/01/b43144306/alcoa-corporation-reports-fourth-quarter-and-full-year-2024-results">figures from the quarter. </a>



The Details: Alcoa reported quarterly earnings of $1.04 per share, which beat the analyst consensus estimate of 97 cents. Quarterly revenue clocked in at $3.48 billion, which beat the analyst consensus estimate of $3.33 billion and is an increase over sales of $2.59 billion from the same period last year.



Alumina production decreased two percent sequentially to 2.39 million metric tons. In the Aluminum segment, production increased two percent sequentially to 571,000 metric tons primarily due to continued progress on the Alumar, Brazil smelter restart.



In the Alumina segment, third-party revenue increased 46% due to an increase in average realized third-party price and higher shipments. In the Aluminum segment, third-party revenue increased 5% due to an increase in average realized third-party price.



Read Next: <a href="https://www.benzinga.com/news/large-cap/25/01/43106379/trump-reverses-bidens-ai-policies-on-day-1-what-it-means-for-tech-giants-nvidia-amd-alphabet">Trump Reverses Biden&#8217;s AI Policies On Day 1: What It Means For Tech Giants Nvidia, AMD, Alphabet&nbsp;</a>



&#8220;Reflecting on 2024, it was a productive year for Alcoa as we delivered on strategic actions and operational improvements, including closing the acquisition of Alumina Limited, announcing the sale of our interest in the Ma&#8217;aden joint ventures, hitting production records and improving operational stability,&#8221; said Alcoa president and CEO William F. Oplinger.&nbsp;



Outlook:&nbsp;Alcoa said it expects 2025 total Alumina segment production to range between 9.5 to 9.7 million metric tons, a decrease from 2024 due to the curtailment of the Kwinana refinery.



Alcoa expects 2025 total Aluminum segment production to range between 2.3 and 2.5 million metric tons, an increase from 2024 due to smelter restarts. 



AA Price Action: According to data from <a href="https://pro.benzinga.com/?gspk=YWRhbWVja2VydDUzMzY&amp;gsxid=zBMR4PKmcgBw">Benzinga Pro</a>, Alcoa shares are up 0.41% after-hours at $38.94 Wednesday. 



Read Next:&nbsp;



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<li><a href="https://www.benzinga.com/analyst-ratings/initiation/25/01/43102452/roku-analyst-sees-25-upside-as-tv-ad-dollars-go-digital">Roku Analyst Sees 25% Upside As TV Ad Dollars Go Digital&nbsp;</a></li>
</ul>



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Alcoa Shares Climb After Better-Than-Expected Q4 Results

Netflix Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NFLX#NASDAQ">NFLX</a>) stock hit all-time highs Wednesday on the heels of a quarterly financial report that beat analyst estimates and saw<a href="https://www.benzinga.com/news/earnings/25/01/43114866/netflix-q4-earnings-record-subscribers-nfl-squid-game-push-past-highest-expectations"> record subscriber growth.</a>



With the stock price gains, Netflix is now worth more than the media companies that own the four U.S. broadcast networks and several other streaming companies combined.



What Happened: Netflix reported 18.9 million net new paid subscribers in the fourth quarter, setting a new company record. The company ended the quarter with 301.6 million global paid subscribers, continuing its dominance in<a href="https://www.benzinga.com/topic/streaming"> the streaming sector.</a>



Along with dominating the streaming sector, Netflix is also dominating the overall entertainment sector taking time away from traditional broadcasters and cable networks.



The company is also seeing its valuation rise while other media companies have had falling stock prices over the last year.



Netflix is now worth more than the four broadcast network parent companies combined as shown below.



<ul>
<li>CBS, owned by Paramount Global (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PARA#NASDAQ">PARA</a>)(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PARAA#NASDAQ">PARAA</a>): $7.4 billion</li>



<li>NBC, owned by Comcast Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CMCSA#NASDAQ">CMCSA</a>): $141.8 billion</li>



<li>FOX, owned by Fox Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FOX#NASDAQ">FOX</a>)(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FOXA#NASDAQ">FOXA</a>): $21.4 billion</li>



<li>ABC, owned by The Walt Disney Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIS#NYSE">DIS</a>): $197.6 billion</li>



<li>Total: $368.2 billion</li>
</ul>



Compare that to Netflix's current market capitalization of $410.0 billion.



Netflix is also worth more than many of its streaming competitors combined, which includes some of the media companies listed above:



<ul>
<li>Paramount+, owned by Paramount: $7.4 billion</li>



<li>Peacock, owned by Comcast: $141.8 billion</li>



<li>Tubi, owned by Fox: $21.4 billion</li>



<li>Disney+, Hulu, owned by Disney: $197.6 billion</li>



<li>MAX, owned by Warner Bros Discovery (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/WBD#NASDAQ">WBD</a>): $24.0 billion</li>



<li>The Roku Channel, owned by Roku Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ROKU#NASDAQ">ROKU</a>): $11.7 billion</li>



<li>Total: $404 billion</li>
</ul>



Netflix is worth more than the combined market caps of the four broadcast channel owners and Warner Bros and Roku combined.



Read Also: <a href="https://www.benzinga.com/general/entertainment/25/01/43136402/netflix-stock-firing-on-all-cylinders-10-analysts-react-to-q4-beat-guidance-price-increases">Netflix Stock &#8216;Firing On All Cylinders&#8217;: 10 Analysts React To Q4 Beat, Guidance, Price Increases</a>



Why It's Important: Outside of companies like Amazon.com Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>) and Apple Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>), which own streaming platforms, Netflix is worth significantly more than its streaming and media rivals.



The other key competitor is YouTube, which is owned by 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>), another tech giant valued higher than Netflix.



YouTube and Netflix ranked first and second respectively for <a href="https://www.benzinga.com/25/01/43104552/youtube-vs-netflix-streamers-top-usage-leaderboard-in-december-sector-makes-more-gains-on-broadcast-and-cable">December market share</a> for streaming according to a Nielsen report. YouTube's December market share hit a company record 11.1% in December. Netflix tied its company record with an 8.5% market share in December.



Streaming hit a market share of 43.3%, up 9% from November. Broadcast television had market share of 22.4%, cable television had market share of 23.8% and other options came in at 10.6%, according to the report.



Netflix highlighted its strong lineup of content in the fourth quarter helping subscriber growth. That lineup included NFL games on Christmas, a second season of "Squid Game" and a record-breaking boxing match between Jake Paul and Mike Tyson.



The streaming company highlighted its 2025 content slate including new seasons of "Squid Game," "Stranger Things" and "Wednesday." The company will also have several live streamed events again including at least one NFL game on Christmas along with its WWE partnership that kicked off in January.



Netflix's commanding market share and encroachment into traditional media has been going on for years and could continue well into the future.



NFLX Price Action: Netflix stock is up 10% to $959.38 on Wednesday versus a 52-week trading range of $481.40 to $999.00. The stock hit new all-time highs on Wednesday and shares traded over $1,000 in the premarket session. Netflix stock is now up 98% over the last year.



Read Next: 



<ul>
<li><a href="https://www.benzinga.com/general/entertainment/25/01/42956034/netflix-stock-has-long-term-runway-for-dominance-in-streaming-analyst-highlights-4-key-catalysts">Netflix Stock Has &#8216;Long Term Runway For Dominance In Streaming&#8217;: Analyst Highlights 4 Key Catalysts</a></li>
</ul>



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Netflix Worth More Than Disney, Paramount, Comcast, Fox Combined

The first U.S. based exchange-traded fund turns 32 years old today and is one of the most<a href="https://www.benzinga.com/etfs"> popular ETFs today.</a>



Here's a look at the history of the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) and how much an investment at launch would be worth today. What Happened: Launched with seed funding of $6.5 million, the SPDR S&amp;P 500 ETF Trust<a href="https://www.benzinga.com/news/23/01/30529288/worlds-first-etf-turns-30-heres-how-much-money-youd-have-if-you-invested-1-000-when-it-launched" target="_blank" rel="noreferrer noopener"> became the first U.S. ETF </a>on Jan. 22, 1993.



The ETF was approved by the U.S. Securities and Exchange Commission several years after&nbsp;State Street Corp.&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/STT#NYSE">STT</a>)&nbsp;applied for the fund.



Initial interest in the ETF was poor and the fund was almost closed before investors came around to the idea of using ETFs as investment vehicles.



The success of the SPY ETF led to other financial institutions launching similar ETFs that track the S&amp;P 500 Index, one of the largest and most well-known stock market indexes.



The&nbsp;iShares Core S&amp;P 500 ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IVV#NYSE">IVV</a>)&nbsp;and&nbsp;Vanguard S&amp;P 500 Index Fund ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VOO#NYSE">VOO</a>)&nbsp;launched in 2000 and 2010, respectively.



Today, the three ETFs that track the S&amp;P 500 are the largest in the world according to&nbsp;<a href="https://etfdb.com/compare/market-cap/" target="_blank" rel="noreferrer noopener">ETFDB&nbsp;</a>with the following assets under management:



<ul>
<li>SPY:&nbsp;$623.5 million</li>



<li>VOO: $603.1 million</li>



<li>IVV: $594.2 million</li>
</ul>



After posting its worst one-year performance in more than a decade for the 2022 year, the S&amp;P 500 Index, which features 500 leading U.S. publicly traded companies, with a primary emphasis on market capitalization, saw outperformance in 2023, ending the year up over 20% and riding a streak of winning weeks. The ETF followed up the rebound with a 24.9% gain in 2024.



In 2024, the S&amp;P 500 <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/12/42678368/sp-500-hits-57-all-time-highs-in-record-breaking-2024-magnificent-7-drive-30-of-nasdaqs-surge">reached new all-time highs </a>on numerous occasions, boosted by soaring valuations for technology stocks.



Here are the current top&nbsp;<a href="https://www.ssga.com/us/en/institutional/etfs/funds/spdr-sp-500-etf-trust-spy" target="_blank" rel="noreferrer noopener">holdings&nbsp;</a>of the SPDR S&amp;P 500 ETF at the time of writing:



<ol>
<li>Nvidia Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>): 6.7%</li>



<li>Apple Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>): 6.6%</li>



<li>Microsoft Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>): 6.2%</li>



<li>Amazon.com Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>): 4.2%</li>



<li>Meta Platforms (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>): 2.6%</li>



<li>Tesla Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>): 2.3%</li>



<li>Alphabet Inc Class A (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>): 2.3%</li>



<li>Broadcom Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>): 2.2%</li>



<li>Alphabet Inc Class C (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>): 1.9%</li>



<li>Berkshire Hathaway Class B (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BRK#NYSE">BRK</a>): 1.7%</li>
</ol>



Read Also: <a href="https://www.benzinga.com/25/01/43059744/exclusive-can-sp-500-repeat-large-gains-from-donald-trumps-first-term-a-second-time-around-readers-say-this-return-range-most-likely">EXCLUSIVE: Can S&amp;P 500 Repeat Large Gains From Donald Trump&#8217;s First Term A Second Time Around? Readers Say This Return Range Most Likely</a>



Investing $1,000 in SPY Stock:&nbsp;While the idea of ETFs was new at the time, investors who followed State Street into the idea of a new investment vehicle to track the S&amp;P 500 would have been pleasantly rewarded.



The SPDR S&amp;P 500 ETF traded at around $43.61 in its first days of trading. A $1,000 investment could have purchased 22.93 shares at the time.



The $1,000 investment would be worth $13,930.20 today based on a price of $607.51 for the SPY at the time of writing. This represents a hypothetical return of $1,293.0% over the past 32 years.



Investors who bought the SPY on Jan. 22, 1993, based on a price of $25.02 adjusted for dividends would have an even larger return. The SPY has an adjusted price of $25.02 when adjusted for dividends, which means a $1,000 investment could have purchased 39.97 shares.



The $1,000 investment would be worth $24,282.17 today. This represents a hypothetical return of 2,328.2% over the past 32 years.



Read Next: 



<ul>
<li><a href="http://= https://www.benzinga.com/etfs/broad-u-s-equity-etfs/25/01/43041374/exclusive-how-high-will-sp-500-go-under-donald-trump-in-2025-readers-are-optimistic-26-say-this">EXCLUSIVE: How High Will S&amp;P 500 Go Under Donald Trump In 2025? Readers Are Optimistic, 26% Say This…</a></li>
</ul>



This article was previously published by Benzinga and has been updated.



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TSLA

Happy Birthday S&P 500 SPY ETF! If You Invested $1,000 In SPY At Launch, Here's How Much You'd Have Today

With <a href="https://www.benzinga.com/topic/interest-rates">ultra-low interest rates</a> firmly in the rearview mirror, Jeff Weniger, Head of Equity Strategy at WisdomTree, has a clear message for investors: &#8220;Anything in the high-4s on a 10-year Treasury rate puts the S&amp;P 500's earnings yield at a level where it either barely exceeds or does not exceed the risk-free yield.&#8221;



In other words, it&#8217;s time to rethink the Growth vs. Value debate.



In an exclusive interview with Benzinga, Weniger said that investors in the "higher for longer" camp should focus on Value stocks. ETFs such as the Vanguard Value ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VTV#NYSE">VTV</a>), the SPDR Select Sector Fund &#8211; Energy (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLE#NYSE">XLE</a>), the Vanguard Small-Cap Value ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VBR#NYSE">VBR</a>) and the iShares Select Dividend ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/DVY#NASDAQ">DVY</a>) provide exposure to value equity in the U.S.



Read Also: <a href="https://www.benzinga.com/25/01/43059744/exclusive-can-sp-500-repeat-large-gains-from-donald-trumps-first-term-a-second-time-around-readers-say-this-return-range-most-likely" target="_blank" rel="noreferrer noopener">EXCLUSIVE: Can S&amp;P 500 Repeat Large Gains From Donald Trump&#8217;s First Term A Second Time Around? Readers Say This Return Range Most Likely</a>



As rates rise, the yields on Treasury bonds become more competitive with stock market earnings, making growth stocks, which have long outperformed, much less attractive. In such a scenario, investors in growth-focused ETFs such as the Invesco QQQ Trust, Series 1 (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) and the Vanguard Growth ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VUG#NYSE">VUG</a>) should remain wary of their holdings.



"In that scenario, which is a live one, investors need to reassess the more speculative portions of their portfolio," he said.



<h2 class="wp-block-heading">Tariff Tension &amp; Its Surprising Impact</h2>



While tariffs continue to be a topic of concern, Weniger suggests that much of this risk is already baked into the market. &#8220;Tariff risk is one of the most priced-in risks we have seen for some time,&#8221; he explained.



Reshoring efforts, which began during the pandemic, are unlikely to be significantly affected by new tariffs. So, if you&#8217;re expecting a major tariff shock to upend the market, Weniger believes the impact may be much smaller than anticipated.



<h2 class="wp-block-heading">Inflation's Hidden Risks: Housing Edition</h2>



Beyond energy prices, Weniger identifies a potentially overlooked inflation risk: housing. &#8220;The market needs to contend with the very real arithmetic of Owners Equivalent Rent in the CPI calculation,&#8221; he said.



Even if home prices stagnate or fall, the inflated housing costs will continue to push the CPI higher.



<h2 class="wp-block-heading">Navigating Market Sentiment</h2>



With macro uncertainties looming, Weniger advises investors to manage their risk carefully. &#8220;Sentiment is arguably bubbly in certain pockets of U.S. markets and downright moribund in others,&#8221; he adds, suggesting that international stocks might be a safer bet while scaling back exposure to U.S. equities in the current volatile climate.



The Vanguard FTSE Developed Markets ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VEA#NYSE">VEA</a>), the iShares Core MSCI EAFE ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/IEFA#BATS">IEFA</a>) and the WisdomTree International Hedged Quality Dividend Growth Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IHDG#NYSE">IHDG</a>) provide exposure to international equity.



Read Next: 



<ul>
<li><a href="https://www.benzinga.com/government/regulations/25/01/43083803/market-bets-on-trumps-tariff-announcement-plummet-dollar-falls-whats-going-on">Market Bets On Trump&#8217;s Tariff Announcement Plummet, Dollar Falls: What&#8217;s Going On?</a></li>
</ul>



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Trading Ideas

Interview

IEFA

IHDG

EXCLUSIVE: 'Higher For Longer' Interest Rates Shift Investors To Value, Tariff Fears Overstated, Says WisdomTree Expert

Cryptocurrency markets are trading lower on Wednesday as investors await Donald Trump's executive orders on crypto and his <a href="https://www.benzinga.com/markets/cryptocurrency/25/01/43135463/strategic-bitcoin-reserve-probability-up-to-64-despite-trump-silence-on-crypto">announcement regarding a strategic Bitcoin reserve</a>.



<figure class="wp-block-table"><table style="overflow:auto; height: 90px; display: block;"><tbody><tr><td>Cryptocurrency</td><td>Price&nbsp;&nbsp;&nbsp;</td><td>Gains +/-</td></tr><tr><td>Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>)</td><td>&nbsp;$104,661.95</td><td>-2.3%</td></tr><tr><td>Ethereum (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/eth/usd">ETH</a>)</td><td>&nbsp;$3,266.86&nbsp;</td><td>-2%</td></tr><tr><td>Solana (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/sol/usd">SOL</a>)</td><td>&nbsp;$266.11</td><td>+5.4%</td></tr><tr><td>XRP (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/xrp/usd">XRP</a>)</td><td>&nbsp;$3.24</td><td>+1.4%</td></tr><tr><td>Dogecoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/doge/usd">DOGE</a>)</td><td>&nbsp;$0.3614</td><td>-5.9%</td></tr><tr><td>Shiba Inu (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/shib/usd">SHIB</a>)</td><td>&nbsp;$0.00002042</td><td>-2.8%</td></tr></tbody></table></figure>



Notable Statistics:



<ul>
<li>IntoTheBlock data shows large transaction volume decreasing by 9.6% and daily active addresses up by 1.95%. Transactions greater than $100,000 are down from 16,250 to 13,808 in a single day. Exchanges netflows are down by 307.6%.</li>



<li>Coinglass data reports 88,536 traders were liquidated in the past 24 hours for $161.09 million.</li>



<li>Arkham Intelligence data shows Blackrock purchased $600 million of BTC, marking its third largest purchase this year.</li>
</ul>



Notable Developments:



<ul>
<li><a href="https://www.benzinga.com/markets/cryptocurrency/25/01/43135463/strategic-bitcoin-reserve-probability-up-to-64-despite-trump-silence-on-crypto">Strategic Bitcoin Reserve Probability Up To 64% Despite Trump Silence On Crypto</a></li>



<li><a href="https://www.benzinga.com/markets/cryptocurrency/25/01/43136512/bitcoin-is-no-threat-to-the-us-dollar-goldman-sachs-ceo-says">Bitcoin Is No &#8216;Threat&#8217; To The US Dollar, Goldman Sachs CEO Says</a></li>



<li><a href="https://www.benzinga.com/markets/cryptocurrency/25/01/43119637/michael-saylors-proposal-to-increase-microstratagys-share-count-approved-by-shareholders-more-bitcoin-purchases-on-the-cards">Michael Saylor&#8217;s Proposal To Increase MicroStratagy&#8217;s Share Count Approved By Shareholders — More Bitcoin Purchases On The Cards?</a></li>



<li><a href="https://www.benzinga.com/top-stories/25/01/43110946/sec-launches-crypto-task-force-to-establish-clear-regulatory-framework">SEC Launches Crypto Task Force To Establish Clear Regulatory Framework</a></li>



<li><a href="https://www.benzinga.com/markets/cryptocurrency/25/01/43119210/bitcoin-miners-helped-texas-avoid-18-billion-energy-costs-report">Bitcoin Miners Helped Texas Avoid $18 Billion Energy Costs: Report</a></li>
</ul>



Top Gainers:



<figure class="wp-block-table"><table style="overflow:auto; height: 90px; display: block;"><tbody><tr><td>Cryptocurrency</td><td>Price&nbsp;&nbsp;&nbsp;</td><td>Gains +/-</td></tr><tr><td>Worldcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/">WLD</a>)</td><td>&nbsp;$2.34</td><td>+12.7%</td></tr><tr><td>Raydium (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/">RAY</a>)</td><td>&nbsp;$8.19</td><td>+7.1%</td></tr><tr><td>Pudgy Penguins (CRYPTO: PENGU)</td><td>&nbsp;$0.02578</td><td>+6.4%</td></tr></tbody></table></figure>



Trader Notes: Crypto trader Flow Horse emphasized that BlackRock itself hasn&#8217;t purchased Bitcoin; its clients did through the ETF. 



He <a href="https://x.com/TheFlowHorse/status/1882139638568976882">warned</a> that the bullish sentiment could be misleading and noted that spikes in trading volume, including multiples of an ETF&#8217;s average daily volume, often indicate short-term market tops.



Altcoin Sherpa <a href="https://x.com/AltcoinSherpa/status/1882143599141573049">expressed</a> optimism, suggesting a &#8220;Bitcoin god candle&#8221; is imminent, advising traders to focus on the upward potential. 



Technical analyst Kevin described the market as stagnant, with liquidity concentrated between $96,000 and $111,000. 



He highlighted the nearly three months of sideways trading after a brief rally, following eight months of stagnation in late 2024.



<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">Big blocks of liquidity all the way from 96K-111K. That's the current range we're. Beyond that nothing much to update. Market still pretty boring now for close to 3 months. Crazy because we traded sideways for 8 months to end 2024 then we went up for one month and now we have… <a href="https://t.co/jYTMbOCnfd">pic.twitter.com/jYTMbOCnfd</a>&mdash; Kevin (@Kev_Capital_TA) <a href="https://twitter.com/Kev_Capital_TA/status/1882143081367273650?ref_src=twsrc%5Etfw">January 22, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



CrediBULL Crypto <a href="https://x.com/CredibleCrypto/status/1882146940500287573">clarified</a> that his high-timeframe BTC chart illustrates market structure rather than precise timing or price levels. 



He identified two key support zones: the current level and $88,000-$95,000.



If these fail, BTC could drop to the mid-$80,000 or even $70,000 range, but the larger bullish structure remains intact as long as the $58,000 higher low holds



Read Next:&nbsp;



<ul>
<li><a href="https://www.benzinga.com/markets/cryptocurrency/25/01/43123173/3-reasons-why-bitcoin-could-hit-122000-soon-10x-research">3 Reasons Why Bitcoin Could Hit $122,000 Soon: 10x Research</a></li>
</ul>



Image: Shutterstock

Cryptocurrency

$BTC

$DOGE

$ETH

$RAY

$SHIB

$SOL

$XRP

Bitcoin, Ethereum, XRP, Dogecoin Reel Downwards, But Trader Hints At 'Bitcoin God Candle Loading'

Tech stocks enjoyed a surge Wednesday, driven by a sharp rise in semiconductor shares after President Donald Trump, OpenAI's Sam Altman, Oracle Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ORCL#NYSE">ORCL</a>) co-founder Larry Ellison, and SoftBank CEO Masayoshi Son unveiled the <a href="https://www.benzinga.com/etfs/sector-etfs/25/01/43135764/trumps-500-billion-stargate-ai-plan-puts-3-etfs-in-focus">Stargate Project on Tuesday</a>.



The $500 billion initiative is set to develop AI infrastructure in the U.S. over the next four years.



According to OpenAI, &#8220;this infrastructure will secure American leadership in AI, create hundreds of thousands of American jobs, and generate massive economic benefit for the entire world.&#8221;



The iShares Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NASDAQ">SOXX</a>) was up 2.3% by midday trading in New York, eyeing their fourth straight positive session, the longest streak since late September. 



Yet, Tesla Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>)&#8217;s CEO Elon Musk questioned the financial viability, saying that founders &#8220;<a href="https://www.benzinga.com/markets/equities/25/01/43121798/elon-musk-says-project-stargate-doesnt-actually-have-the-money-after-trump-announces-500-billion-ai-investment-led-by-softbank-oracle-and-openai">don't actually have the money</a>.&#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">They don't actually have the money&mdash; Elon Musk (@elonmusk) <a href="https://twitter.com/elonmusk/status/1881923570458304780?ref_src=twsrc%5Etfw">January 22, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



The earnings season continues to be off to a strong start, with companies surpassing fourth-quarter expectations, showcasing the resilience of corporate America. Netflix Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NFLX#NASDAQ">NFLX</a>) delivered a stronger-than-expected quarterly performance across the board, driving its shares up 12%.



Elsewhere, small caps paused for a breather following Tuesday&#8217;s outperformance vis-à-vis large-cap counterparts. 



Chinese stocks slipped, with the iShares China Large-Cap ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FXI#NYSE">FXI</a>) down 0.8%, after Trump floated the idea of imposing a 10% tariff on China starting from Feb. 1.



In commodities, gold prices surged to an 11-week-high, marking their tenth gain in the past eleven sessions, as investors flocked to safe-haven assets amid rising geopolitical risks.



On Wednesday, Trump warned Russian President Vladimir Putin of potential new sanctions if a peace deal for Ukraine is not reached. Meanwhile, oil prices remained flat after three consecutive sessions of losses.



In the crypto market, selling pressure is mounting as traders react to the absence of crypto-related commentary from the new administration, which had previously positioned itself as crypto-friendly. Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) retreated nearly 2% to $104,000.



<h3 class="wp-block-heading">Wednesday&#8217;s Performance In Major US Indices, ETFs</h3>



<figure class="wp-block-table is-style-stripes"><table style="overflow:auto; height: 90px; display: block;"><tbody><tr><td>Major Indices</td><td>Price</td><td>1-day %chg</td></tr><tr><td>Nasdaq 100</td><td>21,933.62</td><td>1.7%</td></tr><tr><td>S&amp;P 500</td><td>6,103.81</td><td>0.9%</td></tr><tr><td>Dow Jones</td><td>44,173.70</td><td>0.3%</td></tr><tr><td>Russell 2000</td><td>2,307.01</td><td>-0.5%</td></tr></tbody></table><figcaption class="wp-element-caption">Updated at 12:30 p.m. ET</figcaption></figure>



According to&nbsp;<a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent012225&amp;t=be2bearmibe3na1" target="_blank" rel="noreferrer noopener">Benzinga Pro</a>&nbsp;data:



<ul>
<li>The&nbsp;SPDR S&amp;P 500 ETF Trust&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) rose 0.8% to $602.64.</li>



<li>The&nbsp;SPDR Dow Jones Industrial Average&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>)&nbsp;inched 0.3% higher to $441.25.</li>



<li>The tech-heavy&nbsp;Invesco QQQ Trust Series&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) rallied 1.6% to $533.22.</li>



<li>The&nbsp;iShares Russell 2000 ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) fell 0.5% to $228.56.</li>



<li>The&nbsp;Technology Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLK#NYSE">XLK</a>) rallied, up 2.4%; the&nbsp;Utilities Select Sector SPDR Fund&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLU#NYSE">XLU</a>) lagged, down 1.6%.</li>
</ul>



<h3 class="wp-block-heading">Wednesday&#8217;s Stock Movers</h3>



<ul>
<li>Oracle Corp. rallied 7% as reaction to the Stargate project. Arm Holdings plc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ARM#NASDAQ">ARM</a>) was the chipmaker&#8217;s top performer on Wednesday, up 14%. Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) rose over 4%. </li>



<li>Procter &amp; Gamble Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PG#NYSE">PG</a>) rose 2.8% in reaction to quarterly results beating Street&#8217;s estimates. </li>



<li>Other stocks reacting to company earnings include Interactive Brokers Group Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/IBKR#NASDAQ">IBKR</a>), up 8.8%, Capital One Financial Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/COF#NYSE">COF</a>), up 2.6%, United Airlines Holdings Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/UAL#NASDAQ">UAL</a>), down 2%, Seagate Technology Holdings plc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/STX#NASDAQ">STX</a>), up 9%, Bank of America Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BAC#NYSE">BAC</a>), down 1.3%, Johnson &amp; Johnson (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JNJ#NYSE">JNJ</a>) down 3.4%, Abbott Laboratories (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ABT#NYSE">ABT</a>), up 2.2%, GE Vernova Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GEV#NYSE">GEV</a>), up 2.2%, Amphenol Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/APH#NYSE">APH</a>), up 6%, The Travelers Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TRV#NYSE">TRV</a>) up 3.8%, Halliburton Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HAL#NYSE">HAL</a>), down 1.3%, Ally Financials Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ALLY#NYSE">ALLY</a>), up 4.5%. </li>



<li>Major large-cap companies slated to report earnings after the close include Kinder Morgan Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KMI#NYSE">KMI</a>), Discover Financial Services (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DFS#NYSE">DFS</a>) and Steel Dynamics Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/STLD#NASDAQ">STLD</a>), </li>
</ul>



Now Read: 



<ul>
<li><a href="https://www.benzinga.com/news/global/25/01/43135622/coffee-prices-soar-to-record-highs-could-starbucks-face-margin-squeeze">Coffee Prices Soar To Record Highs: Could Starbucks Face Margin Squeeze?</a></li>
</ul>



Image: Shutterstock

Mid Cap

Sector ETFs

Small Cap

ALLY

IBKR

STLD

Chipmakers Rally On AI Stargate Bet, Netflix Soars, Bitcoin Falters As Trump Keeps Quiet On Crypto: What's Driving Markets Wednesday?

Netflix Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NFLX#NASDAQ">NFLX</a>) analysts call the fourth quarter beat one of the best in company history and changed price targets based on the content slate, price increases and strong advertising momentum.



The Netflix Analysts: Macquarie analyst Tim Nollen reiterated an Outperform rating and raised the price target from $965 to $1,150.



KeyBanc analyst Justin Patterson maintained an Overweight rating and raised the price target from $1,000 to $1,100.



Guggenheim analyst Michael Morris maintained a Buy rating and raised the price target from $950 to $1,100.



Canaccord Genuity analyst Maria Ripps upgraded Netflix from Hold to Buy and raised the price target from $940 to $1,150.



Needham analyst Laura Martin reiterated a Buy rating and raised the price target from $800 to $1,150.



BMO Capital analyst Brian Pitz reiterated an Outperform rating and raised the price target from $1,000 to $1,175.



Raymond James analyst Andrew Marok maintained a Market Perform rating with no price target.



JPMorgan analyst Doug Anmuth reiterated an Overweight rating and raised the price target from $1,000 to $1,150.



Piper Sandler analyst Matt Farrell reiterated an Overweight rating and raised the price target from $950 to $1,100.



Bank of America analyst Jessica Reif Ehrlich reiterated a Buy rating and raised the price target from $1,000 to $1,175.



Macquarie on NFLX: The company went "out with a bang," reporting 19 million added paid subscriptions in its last quarter of reporting this key metric, Nollen said in a new investor note.



"Attention now turns to revenue as well as OI and FCF," Nollen said referencing operating income and free cash flow.



The analyst said Netflix saw higher subscribers thanks to the Mike Tyson and Jake Paul boxing match, NFL games on Christmas and could see more growth from its WWE partnership.



"WWE, which began in January, has driven increased engagement with on-demand viewing up 25% from viewers the day after the live event."



KeyBanc on NFLX: Raised guidance for fiscal 2025 could reflect higher subscriber figures and a price increase, Patterson said in a new investor note.



The analyst raised revenue estimates due to higher paid membership figures and higher revenue per member.



"We believe a strong 2025 content slate can continue drive paid membership gains," Patterson said



With the company choosing not to report membership figures going forward, "revenue becomes the primary metric to value Netflix," Patterson added.



"We are increasingly confident Netflix can sustain low-teens revenue growth through 2026E."



Guggenheim on NFLX: A record quarter for subscriber adds could be just the beginning for Netflix's latest round of growth, Morris said in a new note.



"The company announced plan price increases in several markets, including the U.S., and raised full-year financial guidance despite incremental FX headwinds versus the initial 2025 outlook. As good as it gets? We don't think so," Morris said.



The analyst highlighted Netflix's comments on its growing total market size and strong viewer engagement as optimistic items for the company's future.



"We see earlier stage initiatives — led by advertising sales, live content including sports and events, and video game offerings — as incremental contributors to sustained growth in the coming years."



Canaccord on NFLX: Record subscriber growth, price increases and momentum in the advertising business are highlights from the company's earnings report, Ripps said in a new investor note.



"Netflix reported strong fourth quarter results, with paid memberships, revenue, and profitability all coming in ahead of expectations," Ripps said.



The analysts called the 2025 content slate as "very healthy" with new seasons of "Squid Game," Stranger Things" and "Wednesday," along with an increased number of live events.



Ripps said they incorrectly downgraded Netflix stock less than a year ago citing slower growth and a premium valuation.



"That stance clearly turned out to be incorrect."



Needham on NFLX: A strong content slate, live sports and the continued crackdown on paid sharing led to a strong subscriber figure and beat, Martin said in a new note.



Martin said the subscriber growth in the U.S. and Canada was helped by two NFL games on Christmas, with the other subscriber adds being unrelated to the NFL.



"Despite strong viewership of its two Christmas Day NFL games, NFLX reaffirmed its lack of interest in ‘full season' live sports owing to high costs," Martin said.



Failing to disclose subscriber additions or average revenue per member figures could add risks to the stock, the analyst added.



BMO on NFLX: Strong advertising growth could be a key item to watch for Netflix's future, Pitz said in a new note.



"We model ~$3B in ad revenue by 2026E," Pitz said.



The analyst said advertising revenue grew two times in 2024 and is expected to two times again in 2025.



"AVOD monetization potential remains a significant opportunity."



Pitz said the May 2025 upfront season could serve as a key catalyst for Netflix. &nbsp;



"We believe a robust content slate combined with layering in ‘shoulder' live events will result in ongoing subs growth in the U.S. and globally."



Raymond James on NFLX: Netflix's fourth-quarter results and 2025 guidance were strong across all metrics, Marok said in a new note.



"This quarter was as strong as we have seen from the company since the peaks of the pandemic, with execution across various areas including live events, ads, and margins all pointing upward," Marok said.



The analyst said Netflix's live events strategy is "proven out" and more similar big sporting events are likely.



"Netflix is also leaning into event-driven programming in 2025, with a full year of WWE Raw and what will likely be a number of unannounced unique events in the sports and comedy genres."



JPMorgan on NFLX: The streaming giant may have eliminated concerns about high expectations and FX headwinds with a huge subscriber figure and 2025 guidance, Anmuth said in a new note.



"NFLX enters the new year firing on all cylinders — benefiting from an extremely strong content slate, seeing increased engagement per member household and healthy retention, raising prices in key markets including the U.S., and shifting the ad business from the crawl to walk stage," Anmuth said.



The analyst highlighted Netflix's comments that it had broad-based subscriber growth and its record-breaking figures weren't just because of the Paul/Tyson fight, NFL and second season of "Squid Game."



"Combing off what was likely NFLX's strongest content quarter ever and heading into a robust 2025 slate, we expect little pushback to price increases in the US and a few other markets."



Piper Sandler on NFLX: Strong content helped subscriber growth and provides upside for the stock, Farrell said in a new note.



"We remain impressed with the company's execution, as management continues to deliver positive surprises even at industry-leading scale," Farrell said.



The analyst's two biggest takeaways from Netflix's earnings call were tailwinds to subscriber growth and the continued ramp of the advertising tier.



"We see a strong content slate for this year supporting engagement. Netflix remains our top large cap idea."



 Bank of America on NFLX: Fourth-quarter results and record-breaking subscriber figures marked a strong report, Ehrlich said in a new note.



"In our view, this quarter reflects the robust platform Netflix has created as it remains one of the best-positioned companies in media with several growth drivers," Ehrlich said.



NFLX Price Action: Netflix stock is up 10.96% to $965 Wednesday at publication versus a 52-week trading range of $481.40 to $999. The stock hit new all-time highs earlier Wednesday and shares are up almost 100% over the last year.



Photo: Shutterstock

Analyst Color

Upgrades

Price Target

Reiteration

Analyst Ratings

Media

Netflix Stock 'Firing On All Cylinders': 10 Analysts React To Q4 Beat, Guidance, Price Increases

Illinois Gov.<a href="https://www.benzinga.com/topic/jb-pritzker"> J.B. Pritzker</a> reaffirmed his commitment to protecting immigrant residents lacking permanent legal status in response to President Donald Trump's <a href="https://www.benzinga.com/government/regulations/25/01/43084601/trump-day-1-executive-order-tsunami-incoming-energy-inflation-immigration-in-focus-but-what-about-tariffs">promised crackdown</a>, which was expected to get underway in Chicago.



Pritzker says he supports deporting individuals convicted of violent crimes but not law-abiding workers who are living in the country without permission. 



"I want criminals off the streets, and law enforcement officers to do their jobs," the Democratic governor <a href="https://www.nbcchicago.com/news/local/chicago-politics/pritzker-promises-to-uphold-states-immigration-laws-amid-possible-ice-raids/3652713/">said</a> in an interview with NBC Chicago published Tuesday. "Undocumented people who are law-abiding and holding down jobs shouldn't be arrested just because they're undocumented."



Pritzker's remarks counter plans by Tom Homan, Trump's proposed border czar, who has pledged to dismantle state and local policies limiting federal enforcement. While fears of Immigration and Customs Enforcement raids have intensified, no verified reports of immediate actions had surfaced as of Wednesday, <a href="https://www.wbez.org/immigration/2025/01/21/despite-reports-of-tuesday-immigration-raid-chicago-was-quiet-on-trumps-first-full-day-in-office">according</a> to WBEZ Chicago.



Read Also: <a href="https://www.benzinga.com/startups/25/01/42881696/trumps-immigration-plan-faces-multi-billion-dollar-hurdles-and-delays-according-to-wsj">Trump&#8217;s Immigration Plan Faces Multi-Billion-Dollar Hurdles And Delays According To WSJ</a>



<h2 class="wp-block-heading">Negative Impact On Chicago&#8217;s Economy Could &#8216;Last For Years&#8217; </h2>



Trump's deportation policies are expected to disrupt key sectors of Chicago&#8217;s economy, heavily reliant on immigrant labor. The hospitality and restaurant industry is preparing for potential ICE raids, though fears and misinformation have already reduced business activity and patronage. 



Bloomberg <a href="https://www.bloomberg.com/news/articles/2025-01-21/threat-of-immigration-raids-turns-chicago-hub-into-ghost-town?sref=TBDibEcD">reported</a> the second busiest retail corridor in Chicago, normally a bustling area with taco shops and Mexican grocery stores, is like a ghost town.



"It's going to be disastrous," said Jennifer Aguilar, who heads the local chamber of commerce and spoke with a number of the 400 or so businesses in the area. "If raids happen and people are too afraid to go out, it's going to be an impact that's going to last for years." 



McDonald&#8217;s Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MCD#NYSE">MCD</a>), which is headquartered in Chicago, could face operational challenges and decreased consumer spending as the result of fear within immigrant communities.



Beyond Chicago, Illinois' agricultural and food processing industries could also experience supply chain disruptions.



Companies like Caterpillar Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CAT#NYSE">CAT</a>) and Archer-Daniels-Midland Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ADM#NYSE">ADM</a>), which rely on global as well migrant workforces in their supply chains, could be affected by Trump&#8217;s threatened deportations.



<h2 class="wp-block-heading">Private Prisons Continue To Fare Well</h2>



Private prison operators like GEO Group (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GEO#NYSE">GEO</a>) and CoreCivic (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CXW#NYSE">CXW</a>), the two largest in the U.S., both have contracts with ICE to house detained undocumented individuals. According to a 2023 ACLU <a href="https://wp.api.aclu.org/news/immigrants-rights/unchecked-growth-private-prison-corporations-and-immigration-detention-three-years-into-the-biden-administration" target="_blank" rel="noreferrer noopener">report</a>, over 90% of migrants detained by ICE are held in privately owned facilities. As such, both companies&#8217; <a href="https://www.benzinga.com/24/12/42692787/private-prisons-poised-to-prosper-in-second-trump-term">stocks are on the rise</a> over the last year. Geo and CoreCivic were trading lower Wednesday.



Now Read:



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<li><a href="https://www.benzinga.com/25/01/43125408/trump-signs-order-to-withdraw-us-from-who-again-cites-funding-governance-concerns">World Health Organization Responds to Trump&#8217;s Order, Reminds Decades of Successful Health Achievements</a></li>
</ul>



Photo:&nbsp;<a href="https://www.shutterstock.com/es/g/AndreasStroh" target="_blank" rel="noreferrer noopener">Andreas Stroh</a>&nbsp;on Shutterstock.

Politics

Legal

Trump's Immigration Raids Could Disrupt Key Sectors Of Chicago's Economy: Pritzker Says To Focus On Criminals, Not Law-Abiding Workers

Arabica coffee futures have soared past $3.35 per pound in January 2025, holding near multi-decade highs after peaking at $3.48 in December, the highest <a href="https://www.benzinga.com/markets/commodities">level since April 1977.</a>



In a note shared Wednesday, Bank of America analyst Sara Senatore said, &#8220;Coffee remains inflationary. For Q1 2025, average coffee price inflation is expected to be 75.5%.&#8221; 



She added that prices have surged 120% from 2023 lows, increasing investor concerns about Starbucks Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SBUX#NYSE">SBUX</a>)&#8217; margins and pressuring the company's valuation multiple.



<h3 class="wp-block-heading">Chart: Coffee Futures Hover At Near 50-Year Highs</h3>



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="506" src="https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/22104158/image-156-1024x506.png" alt="" class="wp-image-744985" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/22104158/image-156-1024x506.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/22104158/image-156-300x148.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/22104158/image-156-768x380.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/22104158/image-156-1536x759.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/22104158/image-156.png 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>



<h3 class="wp-block-heading">What&#8217;s Triggering The Coffee Price Spike? </h3>



The coffee market has seen supply risks materializing on its world&#8217;s top producer. 



Brazil's coffee production forecast have been downwardly revised in recent months amid weather disruptions hitting South America&#8217;s largest country. 



On Monday, Conab, Brazil's national supply agency, estimated the country's 2024 coffee harvest at 54.2 million 60kg bags, a 1.6% decline from the prior year's crop. 



The revision follows adverse weather in Minas Gerais, a key Arabica-producing region, that has constrained supply. Meanwhile, strong demand for Robusta beans, often used in instant coffee, has compounded price pressures.



In Australia, Restaurant and Cafe Association chief executive Wes Lambert said the cost of a coffee &#8220;could reach double digits&#8221; in major cities if bean prices remain elevated.



<h3 class="wp-block-heading">Starbucks' Hedging Strategy: A Safety Net?</h3>



Despite soaring coffee prices, Starbucks may be shielded from immediate cost increases. The Seattle-based company has long-term purchasing strategies as indicated by Bank of America.



As the world&#8217;s largest coffeehouse, Starbucks secures supply agreements more than a year in advance. The chain has a mix of fixed-price and price-to-be-fixed contracts.



Fixed-price contracts lock in costs upfront, while price-to-be-fixed agreements allow pricing flexibility until delivery. 



Starbucks relies on futures contracts and collars, which are derivative instruments that help stabilize price fluctuations, to hedge against volatile coffee costs. 



While Starbucks&#8217; hedging policies provide insulation, the company still supplements its inventory with purchase commitments, some of which remain exposed to the unpredictable swings in commodity prices. 



The question is whether sustained high prices could eventually seep into its cost structure.



Yet, Bank of America remains optimistic about Starbucks&#8217; outlook. &#8220;We believe SBUX&#8217;s brand remains fundamentally strong and there are significant opportunities to reallocate resources,&#8221; Senatore wrote in the note, maintaining a Buy rating with a $117 price target. 



Read now: 



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</ul>

Latin America

Economics

SBUX

Coffee Prices Soar To Record Highs: Could Starbucks Face Margin Squeeze?

President Donald Trump announced a $500 billion initiative to supercharge the <a href="https://www.benzinga.com/topic/artificial-intelligence">artificial intelligence infrastructure</a> in the United States Tuesday. Flanked by tech titans OpenAI CEO Sam Altman, SoftBank CEO Masayoshi Son, and Oracle (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ORCL#NYSE">ORCL</a>) Chairman Larry Ellison, Trump revealed the creation of a new company, Stargate, which he described as "the largest AI infrastructure project in history." 



Naturally, investors wasted no time <a href="https://www.benzinga.com/25/01/43111153/nvidia-and-ai-stock-rises-as-trump-announces-500-billion-stargate-ai-infrastructure-venture">reacting to the announcement</a>. Oracle, Nvidia (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>), and Arm Holdings (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ARM#NYSE">ARM</a>) saw notable gains, while analysts predict the dominance of AI leaders <a href="https://www.benzinga.com/etfs">like those included in</a> the Invesco Top QQQ ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QBIG#NASDAQ">QBIG</a>) will continue into 2025.



Invesco Top QQQ, an actively managed ETF tied to the Nasdaq-100 Mega Index, holds stocks from the Magnificent Seven, including AI giants like Nvidia, along with semiconductor leader Broadcom (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>). This ETF is poised to capitalize on the rising demand for AI infrastructure, as semiconductor companies like Broadcom gain prominence.



Morgan Stanley analyst Ed Stanley notes that companies that strategically adopt AI—particularly those in software and finance—are likely to outperform, creating a fertile ground for ETFs like Invesco Top QQQ to thrive.



Apart from the Invesco Top QQQ ETF, which debuted in December, other notable beneficiaries of this AI boom are existing ETFs like Global X Robotics &amp; AI (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BOTZ#NASDAQ">BOTZ</a>) and Roundhill Generative AI &amp; Technology ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CHAT#NYSE">CHAT</a>). 



Here's a closer look at the potential winners:



Global X Robotics &amp; Artificial Intelligence ETF, known for its focus on automation and robotics companies, holds stocks of companies like Nvidia. The ETF can benefit from increased demand for hardware supporting AI infrastructure.



Roundhill Generative AI &amp; Technology ETF invests particularly in companies developing infrastructure, and software that breathe life into AI. As a fund targeting the generative AI, this ETF&#8217;s holdings in companies like Microsoft and Meta.



Stargate's Ambitious Vision



Stargate plans to invest an initial $100 billion, with a long-term vision of funneling up to $500 billion into building data centers and other critical infrastructure to support AI development. The project, already under construction in Texas, aims to create 100,000 jobs and establish the U.S. as a leader in AI technology.



Ellison noted that the group's first 1 million-square-foot data center is already underway, emphasizing the need for robust infrastructure to power next-generation AI applications. Altman agreed, calling the project "the most important of this era."



Meanwhile, Elon Musk <a href="https://www.benzinga.com/markets/equities/25/01/43121798/elon-musk-says-project-stargate-doesnt-actually-have-the-money-after-trump-announces-500-billion-ai-investment-led-by-softbank-oracle-and-openai">voiced concerns over</a> Project Stargate's funding, suggesting that SoftBank has secured far less than the ambitious $500 billion investment target.



ETFs focused on AI and technology offer a wise entry point for those looking to jump on the bandwagon. With $175 billion reportedly awaiting deployment into AI projects, the U.S. should attract significant global capital.



See Next: 



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<li><a href="https://www.benzinga.com/trading-ideas/movers/25/01/43128141/tech-stocks-rise-after-trump-announces-ai-infrastructure-investment">Tech Stocks Rise After Trump Announces AI Infrastructure Investment</a></li>
</ul>



Photo: Shutterstock

BOTZ

CHAT

QBIG

Trump's $500 Billion Stargate AI Plan Puts 3 ETFs In Focus

Despite <a href="https://www.benzinga.com/markets/cryptocurrency/25/01/43096311/exclusive-trump-does-not-establish-bitcoin-reserve-crypto-friendly-policies-on-day-1-and-now">no immediate action</a> from freshly-inaugurated president Donald Trump, the odds of a strategic Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) reserve in 2025 have increased on prediction market Kalshi.



A <a href="https://kalshi.com/markets/kxbtcreserve/bitcoin-reserve#kxbtcreserve-26">market</a> shows a 64% probability, up from 55% at the start of 2025 and 61% on inauguration day. Further crypto-related markets have seen movement following the president&#8217;s inauguration.



<figure class="wp-block-table"><table style="overflow:auto; height: 90px; display: block;"><tbody><tr><td>Kalshi Prediction Markets</td><td>Current Odds</td><td>Odds On Inauguration Day</td></tr><tr><td>Federal crypto regulation this year?</td><td>54%</td><td>53%</td></tr><tr><td>Will a new country buy Bitcoin this year?</td><td>85%</td><td>76%</td></tr><tr><td>Wil Bitcoin be legalized in China this year?</td><td>15%</td><td>21%</td></tr></tbody></table></figure>



Trader Notes: Bitcoin investor Fred Krueger has mixed feelings about the plans, calling a Strategic Bitcoin Reserve inevitable but unlikely to reach meaningful levels under the Trump administration, which he views as only partially embracing Bitcoin.



Krueger <a href="https://x.com/dotkrueger/status/1881719585386197338">highlighted</a> World Liberty Financials' $47 million Bitcoin purchase as a key milestone, emphasizing that Bitcoin's rise to $1 million remains unstoppable regardless of government involvement. 



"External factors won't derail Bitcoin's trajectory," he <a href="https://x.com/dotkrueger/status/1882016783726789027">stated</a>, expressing optimism for a bullish market in 2025.



Community News: At the World Economic Forum in Davos, Coinbase CEO Brian Armstrong said Trump is eager to lead the charge on Bitcoin adoption, aiming to become the first "Bitcoin President."



Armstrong also acknowledged Senator Cynthia Lummis's (R-Wyo.) legislative efforts to establish a reserve.



Armstrong <a href="https://www.benzinga.com/markets/cryptocurrency/25/01/43105840/coinbase-ceo-brian-armstrong-says-bitcoins-future-is-bright-the-dawn-of-a-new-day-for-crypto">stressed</a> the importance of governments holding Bitcoin alongside gold and other reserves, stating, "Any government holding gold should also hold Bitcoin." He argued that the global shift toward a Bitcoin standard is well underway.



Currently, 12 U.S. states are actively supporting Bitcoin reserve legislation. 



Marathon Digital's CEO is <a href="https://x.com/BTC_Archive/status/1882061965205680235">reportedly</a> working to expand these efforts to all 50 states.



Read Next:&nbsp;



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<li><a href="https://www.benzinga.com/markets/cryptocurrency/25/01/43100642/how-much-longer-will-the-bitcoin-bull-run-last">How Much Longer Will The Bitcoin Bull Run Last?</a></li>
</ul>



Image: Wikimedia Commons

Strategic Bitcoin Reserve Probability Up To 64% Despite Trump Silence On Crypto

Netflix Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NFLX#NASDAQ">NFLX</a>) shares soared 15% in premarket trading on Wednesday, hitting $1,000 after the streaming giant reported fourth-quarter earnings that smashed Wall Street expectations on revenue, profitability, <a href="https://www.benzinga.com/news/earnings/25/01/43114866/netflix-q4-earnings-record-subscribers-nfl-squid-game-push-past-highest-expectations">and subscriber growth. </a>



In a note on Wednesday, Goldman Sachs analyst Eric Sheridan raised the 12-month price target on Netflix stock from $850 to $960, citing expansion into live entertainment, the growing success of its ad-supported tier, and strategic price increases.



Yet, the investment bank opted to maintain a Neutral rating, indicating that the stock's recent gains already reflect much of its future growth potential.



<h3 class="wp-block-heading">Earnings Beat, Subscriber Growth Accelerates</h3>



Netflix reported fourth-quarter revenue of $9.88 billion, beating analyst forecasts even as a stronger U.S. dollar created foreign exchange headwinds. Operating income climbed to $2.63 billion, exceeding expectations and underscoring the company's improving profitability.



A key driver of growth has been Netflix's ad-supported tier, which saw a 30% quarter-over-quarter rise in subscribers and accounted for more than 55% of new sign-ups in markets where it is available. The trend signals a strategic shift, with the company focusing less on sheer subscriber numbers and more on revenue diversification.



Netflix also ramped up capital returns, buying back $1 billion in shares in the fourth quarter. Its board approved an additional $15 billion in share repurchases, reinforcing management's confidence in the company's long-term trajectory.



<h3 class="wp-block-heading">Goldman Sachs: Valuation Now a Concern</h3>



Netflix&#8217;s ability to &#8220;sustain double-digit revenue growth with room to expand margins in the coming years,&#8221; led Sheridan to raise his price target on Netflix to $960.



Yet, he stopped short of upgrading the stock, warning that Netflix's rapid price appreciation, up by over 35% since the third quarter&#8217;s earnings report, has made risk-reward less compelling.



Sheridan indicated that while Netflix is executing well, the stock has already surged sharply since its last earnings report, far outpacing the broader market. 



With the latest rally pushing shares to $1,000, Goldman believes much of the company's long-term growth potential is already reflected in the price.



<h3 class="wp-block-heading">What's Next for Netflix?</h3>



The company expects first-quarter 2025 revenue of $10.42 billion, slightly below analyst estimates, and projected free cash flow of about $8 billion for the full year, lower than Goldman's previous estimate of $8.7 billion.



Investors now face a key decision: Is Netflix's stock still an attractive buy after its meteoric rise, or has the rally outpaced its fundamentals? Goldman Sachs appears to lean toward the latter, even as Wall Street cheers the latest earnings win.



Read now: 



<ul>
<li><a href="https://www.benzinga.com/25/01/43122112/us-stocks-likely-to-open-higher-as-president-trump-announces-500-billion-ai-project-oracle-netflix-nvidia-among-stocks-in-focus">US Stocks Likely To Open Higher As President Trump Announces $500 Billion AI Project: Oracle, Netflix, Nvidia Among Top Stocks To Watch</a></li>
</ul>



Photo by Kaspars Grinvalds on Shutterstock.

Netflix Stock Breaks $1,000 Post-Earnings: Goldman Flags Valuation Stretch

President Donald Trump told reporters late Tuesday that he is considering a 10% tariff on goods from China that could take effect <a href="https://www.benzinga.com/markets/forex/25/01/43122779/asia-mixed-europe-up-as-trumps-tariff-plans-sparks-market-caution-gold-hits-11-week-high-global-markets-today-while-us-slept">as soon as Feb.1.&nbsp;</a>



&nbsp;"We're talking about a tariff of 10% on China based on the fact that they're sending fentanyl to Mexico and Canada," the president said on Tuesday evening, per CNBC.&nbsp;



"Probably Feb. 1 is the date we're looking at," he added.



Read Next: <a href="https://www.benzinga.com/news/large-cap/25/01/43106379/trump-reverses-bidens-ai-policies-on-day-1-what-it-means-for-tech-giants-nvidia-amd-alphabet">Trump Reverses Biden&#8217;s AI Policies On Day 1: What It Means For Tech Giants Nvidia, AMD, Alphabet&nbsp;</a>



What To Know: The potential 10% tariff on Chinese imports is much lower than levies of up to 60% Trump had threatened while campaigning for office.&nbsp;



The potentially reduced levies come after Trump revealed on Friday that<a href="https://www.benzinga.com/markets/asia/25/01/43060607/trump-xi-talk-trade-tiktok-peace-in-first-call-since-2021"> he had spoken</a> with Chinese President Xi Jinping over the phone about trade, fentanyl, TikTok and other topics.&nbsp;



He shared some details and expressed optimism regarding the relationship with China on his social media platform, Truth Social.&nbsp;&nbsp;



"It is my expectation that we will solve many problems together, and starting immediately," Trump said.&nbsp;



Why It Matters: U.S.-listed Chinese stocks climbed Tuesday after Trump neither targeted China in his inauguration speech nor did he instantly impose tariffs on Day 1.&nbsp;



However, following Trump's comments on Tuesday evening, U.S.-listed Chinese stocks are dipping Wednesday with Alibaba Group Holdings, Ltd. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BABA#NYSE">BABA</a>) and Baidu, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BIDU#NASDAQ">BIDU</a>) both down in early trading. Share of Chinese EV makers XPeng, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XPEV#NYSE">XPEV</a>) and Li Auto, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LI#NASDAQ">LI</a>) are also moving lower at the time of publication Wednesday. 



Investors can also monitor effects of proposed tariffs on China through the KraneShares CSI China Internet ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KWEB#NYSE">KWEB</a>) which consists of China-based companies focused on internet-related technology. 



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Image created using photos from Shutterstock.

Emerging Market ETFs

Markets

BABA

BIDU

KWEB

XPEV

Trump 'Looking At' 10% Tariff On China Starting Feb. 1

Oracle Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ORCL#NYSE">ORCL</a>) just got its <a href="https://www.benzinga.com/topic/artificial-intelligence">golden AI ticket</a>. The stock surged as much as 8.51% in pre-market trading Wednesday after President Donald Trump unveiled Project Stargate, a massive $500 billion AI infrastructure initiative featuring Oracle, OpenAI, Nvidia Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>), and SoftBank Capital.



With $100 billion committed in the first year alone, this project cements Oracle's role as a key AI backbone. But is this just a short-term pop, or does it signal a deeper bull case for Oracle stock?



<h2 class="wp-block-heading">Oracle's AI Advantage Just Got Supercharged</h2>



Oracle has been aggressively expanding its AI and cloud offerings, positioning itself as a critical infrastructure provider for generative AI workloads. Project Stargate validates that strategy, giving Oracle direct government-backed investment and integration with AI giants like OpenAI.



For investors, this means Oracle is no longer just competing in the AI arms race—it's helping build the battlefield. Expect increased cloud demand, long-term government contracts, and a higher revenue ceiling.



Read Also: <a href="https://www.benzinga.com/markets/equities/25/01/43121798/elon-musk-says-project-stargate-doesnt-actually-have-the-money-after-trump-announces-500-billion-ai-investment-led-by-softbank-oracle-and-openai">Elon Musk Says Project Stargate Doesn&#8217;t &#8216;Actually Have The Money&#8217; After Trump Announces $500 Billion AI Investment Led By SoftBank, Oracle And OpenAI</a>



<h2 class="wp-block-heading">Ellison's Billionaire Flex: Confidence In Oracle's Future</h2>



Oracle&#8217;s CEO Larry Ellison's $12 billion windfall from the stock surge speaks volumes. His 41% stake in Oracle makes him the biggest beneficiary of this AI momentum, and the fact that he <a href="https://www.forbes.com/sites/dereksaul/2025/01/21/oracle-stock-surges-ahead-of-500-billion-stargate-openai-trump-deal/">overtook</a> Meta Platforms Inc&#8216;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>) CEO Mark Zuckerberg to become the world's third-richest person highlights just how much value the market sees in Oracle's future. 



When insiders win big, long-term investors take notice.



<h2 class="wp-block-heading">ORCL Stock Chart: The Bullish Case</h2>



<figure class="wp-block-image size-full"><a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent012225&amp;t=be2bearmibe3na1"><img loading="lazy" decoding="async" width="638" height="493" src="https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/22073338/Screenshot-2025-01-22-at-5.55.52-PM.png" alt="" class="wp-image-744604" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/22073338/Screenshot-2025-01-22-at-5.55.52-PM.png 638w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/22073338/Screenshot-2025-01-22-at-5.55.52-PM-300x232.png 300w" sizes="(max-width: 638px) 100vw, 638px" /></a></figure>



<a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent012225&amp;t=be2bearmibe3na1">Chart created using Benzinga Pro</a>



ORCL stock is trading above its eight, 20 and 200-day simple moving averages, signaling strong buying pressure. While the 50-day moving average sits slightly higher at $176.33 (vs. ORCL stock at $172.57), the broader trend remains bullish. 



The RSI (relative strength index) at 57.50 suggests room to run before hitting overbought levels. Although, the MACD (moving average convergence/divergence) indicator at a negative 3.72, signals bearish momentum.



<h2 class="wp-block-heading">Investor Takeaway: More Than Just A Hype Rally</h2>



AI narratives have driven short-term pops before, but Project Stargate gives Oracle something tangible—a direct capital infusion, AI partnerships, and potential long-term infrastructure dominance.



With strong technicals and institutional backing, ORCL stock's momentum could be more than just a momentary surge. Investors betting on the AI boom now have a compelling reason to keep Oracle on their radar.



Read Next: 



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<li><a href="https://www.benzinga.com/news/large-cap/25/01/43122667/oracle-unveils-ai-powered-sales-tools-to-boost-customer-engagements-details">Oracle Unveils AI-Powered Sales Tools To Boost Customer Engagements: Details</a></li>
</ul>



Photo: Shutterstock

Technicals

Oracle's AI Moonshot: Why Project Stargate Could Propel ORCL Stock Higher

Procter &amp; Gamble Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PG#NYSE">PG</a>) shares are trading higher in premarket on Wednesday after the <a target="_blank" href="https://www.benzinga.com/pressreleases/25/01/b43123269/p-g-announces-fiscal-year-2025-second-quarter-results" rel="noreferrer noopener">second-quarter earnings results</a>.



The company reported second-quarter sales growth of 2% year-on-year to $21.9 billion, beating the analyst consensus estimate of $21.542 billion.



Organic sales increased 3%, driven by a 2% increase in organic volume and a 1% increase from the favorable geographic mix.



Sales in the Beauty segment remained flat, the Grooming segment gained 1%, and Health Care increased 2%.



Adjusted EPS of $1.88 <a target="_blank" href="https://www.benzinga.com/earnings" rel="noreferrer noopener">beat the consensus estimate of $1.86.</a>



Gross profit increased 1% Y/Y to $11.46 billion. The reported gross margin decreased by 30 basis points to 52.4%.



Operating margin expanded 550 basis points to 26.2%, while operating income for the quarter jumped 30% to $5.7 billion.



P&amp;G held $10.23 billion in cash and equivalents at December-end. Operating cash flow for the quarter was $4.8 billion.



&#8220;The P&amp;G team delivered an acceleration in organic sales growth, core EPS growth and strong cash return to shareowners in the second quarter,&#8221; said Board Chairman, President, and CEO Jon Moeller.



&#8220;Our first-half results keep us on track to deliver within our guidance ranges on all key financial metrics for the fiscal year.&#8221;



Outlook: P&amp;G maintained its guidance range for FY25 organic sales growth of 3%-5% and all-in sales growth of 2%-4%. P&amp;G maintained its FY25 EPS growth outlook of 10%-12% versus an EPS of $6.02 in FY24.



P&amp;G reiterated its adjusted EPS outlook of $6.91 &#8211; $7.05 versus the $6.93 estimate. P&amp;G continues to expect a commodity cost headwind of approximately <a target="_blank" href="https://www.benzinga.com/calendars/guidance" rel="noreferrer noopener">$200 million after tax for fiscal 2025.</a>



P&amp;G expects unfavorable foreign exchange rates will be a headwind of approximately $300 million after tax.



P&amp;G continues to expect adjusted free cash flow productivity of&nbsp;90%&nbsp;and expects to pay around&nbsp;$10 billion&nbsp;in dividends and repurchase&nbsp;$6&nbsp;billion&nbsp;to&nbsp;$7 billion&nbsp;of common shares in fiscal 2025.



Price Action: PG shares are trading higher by 3.44% at $167.29 in premarket at the last check Wednesday. 



Photo via Shutterstock.

Guidance

Dividends

Buybacks

General

Gillette Parent Procter & Gamble Q2 Earnings: Navigates Commodity And Forex Challenges, Maintains Core FY25 Outlook

Shares of AI-related tech companies are trading higher Wednesday after U.S. President Donald Trump announced a $500 billion AI infrastructure investment <a href="https://www.benzinga.com/markets/equities/25/01/43121798/elon-musk-says-project-stargate-doesnt-actually-have-the-money-after-trump-announces-500-billion-ai-investment-led-by-softbank-oracle-and-openai">called Project Stargate</a>.



What To Know: Trump on Tuesday announced that OpenAI, SoftBank and Oracle Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ORCL#NYSE">ORCL</a>) are planning a joint venture that will result in more data centers being built, creating more than 100,000 jobs in the United States, per Reuters. 



Project Stargate and its backers have committed $100 billion for immediate investment, with up to $400 billion in additional investments expected to take place over the next four years. 



OpenAI&#8217;s Sam Altman, SoftBank&#8217;s Masayoshi Son and Oracle&#8217;s Larry Ellison stood alongside Trump at the White House for the launch announcement on Tuesday. 



Ellison noted that twenty data centers are expected to be built under Stargate, the first of which is already under construction in Texas. 



Several AI-related names got a lift on the news. Oracle shares were up 10%, while shares of Microsoft Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>), which maintains an investment in OpenAI, were up about 1.7% at last check. 



Other big movers on Wednesday include NVIDIA Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>), Arm Holdings Plc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ARM#NASDAQ">ARM</a>) and Dell Technologies Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DELL#NYSE">DELL</a>). Nvidia shares were up about 3% at the time of writing, while Arm Holdings shares were up about 6.5% and Dell shares were up approximately 5%. 



Check This Out: <a href="https://www.benzinga.com/markets/equities/25/01/43121798/elon-musk-says-project-stargate-doesnt-actually-have-the-money-after-trump-announces-500-billion-ai-investment-led-by-softbank-oracle-and-openai">Elon Musk Says Project Stargate Doesn&#8217;t &#8216;Actually Have The Money&#8217; After Trump Announces $500 Billion AI Investment Led By SoftBank, Oracle And OpenAI</a>



Photo: courtesy of U.S. Department of Energy.

DELL

Tech Stocks Rise After Trump Announces AI Infrastructure Investment

U.S. stocks could open on a positive note on Wednesday, continuing to rally after <a href="https://www.benzinga.com/government/regulations/25/01/43085323/trump-sworn-in-as-47th-president-declares-golden-age-of-america-begins-right-now">Donald Trump's inauguration</a> as the 47th President of the U.S. on Monday. Futures point to a second consecutive day of positive start to the Trump presidency.



As the new administration settles in, President Trump announced an ambitious $500 billion artificial intelligence project dubbed Stargate. This venture includes Oracle Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ORCL#NYSE">ORCL</a>), Microsoft Corp.-backed (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>) OpenAI, and SoftBank Group (OTC:<a class="ticker" href="https://www.benzinga.com/stock/SFTBY#OTC">SFTBY</a>).



<figure class="wp-block-table"><table style="overflow:auto; height: 90px; display: block;"><tbody><tr><td>Futures</td><td>Change (+/-)</td></tr><tr><td>Nasdaq 100</td><td>0.84%</td></tr><tr><td>S&amp;P 500</td><td>0.40%</td></tr><tr><td>Dow Jones</td><td>0.17%</td></tr><tr><td>R2K</td><td>0.17%</td></tr></tbody></table></figure>



In premarket trading on Wednesday, the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) gained 0.37% to $605.24 and the Invesco QQQ ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) rose 0.77% to $528.86, according to <a href="https://benzinga.grsm.io/lxquj26b2sag">Benzinga Pro data</a>.



Cues From Last Session:



U.S. stocks ended Tuesday on a positive note, with Dow Jones and S&amp;P 500 ending the day with major gains, while the Nasdaq closed 0.64% in the green.



Crude oil prices edged lower as traders await clarity about the new Trump administration's agenda.



Vistra Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VST#NYSE">VST</a>) and Oracle Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ORCL#NYSE">ORCL</a>) were among the top gainers on Tuesday, surging 8.48% and 7.17% during the session respectively.



On the economic data front, U.S. industrial production rose by 0.9% in December, ahead of estimates of a 0.3% increase. Housing starts rose by 15.8% from the previous month to an annualized rate of 1.499 million units in December.



Most sectors on the S&amp;P 500 closed on a positive note, with industrials, real estate, and healthcare stocks recording gains on Tuesday.



However, energy stocks bucked the overall market trend, closing the session lower.



<figure class="wp-block-table"><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>0.64%</td><td>19,756.78</td></tr><tr><td>S&amp;P 500</td><td>0.88%</td><td>6,049.24</td></tr><tr><td>Dow Jones</td><td>1.24%</td><td>44,025.81</td></tr><tr><td>Russell 2000</td><td>1.85%</td><td>2,317.97</td></tr></tbody></table></figure>



Insights From Analysts:



Ryan Detrick, chief market strategist at Carson Global, underscored that there is a high possibility that 2025 could be a good year as far as equity markets are concerned.



"The year after an election year has been quite strong lately, with stocks higher 9 of the past 10 times going back to Reagan&#8217;s second term," he said.



<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">The year after an election year has been quite strong lately, with stocks higher 9 of the past 10 times going back to Reagan&#39;s second term. <a href="https://t.co/Nkx8DDehQ8">pic.twitter.com/Nkx8DDehQ8</a>&mdash; Ryan Detrick, CMT (@RyanDetrick) <a href="https://twitter.com/RyanDetrick/status/1881724906460868653?ref_src=twsrc%5Etfw">January 21, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



In 2017, the first year of Trump's previous term, the Dow and S&amp;P 500 delivered a return of 19.4%. Likewise, in Biden's first year in office, the return stood at 26.9%.



Jeremy Siegel, Wharton professor and senior economist at WisdomTree, underscored the resilient U.S. economy and positive indicators going into 2025.



"The outlook for Q4 GDP growth is strong, with estimates ranging between 2.5% and 3%, a testament to the underlying strength of the economy as we transition into 2025," he said.



He also has a word of caution about the impact of Trump's tariff plans, but noted that they are "likely months away."



"The S&amp;P 500 thus far remains resilient, but I maintain my call for a correction this year as bond yields rise further, which could pressure valuations. This presents opportunities for less richly priced stocks, sectors, and strategies."



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



Upcoming Economic Data



Here's what investors will keep an eye on for Wednesday and the rest of the week:



<ul>
<li>On Wednesday, leading economic indicator data will be released at 10:00 a.m., ET.</li>



<li>On Thursday, initial jobless claims data will be released at 8:30 a.m. ET.</li>



<li>On Friday, S&amp;P flash services PMI and manufacturing PMI will be released at 9:45 a.m. ET.</li>



<li>Existing home sales and consumer sentiment data will be released at 10 a.m., ET.</li>
</ul>



Stocks In Focus:



<ul>
<li>Oracle Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ORCL#NYSE">ORCL</a>) stock gained over 8% in premarket trade on Wednesday after President Trump announced the Stargate AI joint venture, comprising Oracle, OpenAI, and SoftBank.</li>



<li>Netflix Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NFLX#NASDAQ">NFLX</a>) surged over 14% after stunning the Street with 20 million new subscribers and a price hike amid its best quarterly performance ever.</li>



<li>Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>), Arm Holdings Plc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ARM#NASDAQ">ARM</a>) and other chip stocks gained in pre-market after Trump's AI announcement.</li>



<li>Investors are awaiting earnings results from Abbott Laboratories (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ABT#NYSE">ABT</a>), The Procter &amp; Gamble Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PG#NYSE">PG</a>), and Johnson &amp; Johnson (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JNJ#NYSE">JNJ</a>) today.</li>
</ul>



Commodities, Bonds And Global Equity Markets:



Crude oil futures fell in the early New York session, declining by 0.42% to hover around $75.51 per barrel.



The 10-year Treasury note yield edged higher to 4.585%.



Most of the major Asian markets were mixed on Wednesday, while European markets were in the green in early trading.



Read Next:



<ul>
<li><a href="https://www.benzinga.com/25/01/43118541/bitcoin-ethereum-dogecoin-rally-amid-secs-plans-to-establish-crypto-regulations-top-trader-issues-bold-3000-target-for-btc-this-cycle">Bitcoin, Ethereum Rally Amid SEC&#8217;s Plans To Establish Crypto Regulations: Top Trader Issues $300,000 Target For BTC This Cycle</a></li>
</ul>



Photo courtesy: Shutterstock

Futures

Federal Reserve

Pre-Market Outlook

SFTBY

US Stocks Likely To Open Higher As Trump Announces $500 Billion AI Project: Oracle, Netflix, Nvidia Among Top Stocks To Watch

Shares of Netflix Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NFLX#NASDAQ">NFLX</a>) experienced a 15% surge in premarket trading on Wednesday on the heels of the company announcing a 16%<a href="https://www.benzinga.com/markets/equities/25/01/43119464/netflix-raises-prices-16-peter-schiff-warns-of-escalating-inflation-risks-ahead-of-trump-policies" target="_blank" rel="noreferrer noopener"> price hike for its standard streaming plan.</a>



What Happened: Netflix&#8217;s shares saw an increase of $128.14 in the premarket, following a 1.35% rise at the close of the previous day, ending at $869.68. 



The price increase, which took the&nbsp;ad-free standard plan from $15.49&nbsp;to $17.99 per month, was announced in conjunction with Netflix&#8217;s impressive fourth-quarter earnings report.



See Also:&nbsp;<a href="https://www.benzinga.com/markets/equities/25/01/43118941/oracles-larry-ellison-says-cancer-vaccine-tailored-in-48-hours-could-soon-be-a-reality-as-trump-announces-500-billion-ai-investment" target="_blank" rel="noreferrer noopener">Oracle's Larry Ellison Says Cancer Vaccine Tailored In 48 Hours Could Soon Be A Reality As Trump Announces $500 Billion AI Investment</a>



The earnings report highlighted a 16% year-over-year revenue growth, reaching $10.25 billion, and a subscriber increase of 18.91 million. This surge in subscribers brought the total number of paid memberships to a staggering 301.63 million. The price increase also impacted the premium tier, now priced at $24.99, and the ad-supported option, which rose to $7.99.



Netflix&#8217;s robust performance, marked by a <a href="https://www.benzinga.com/25/01/43114866/netflix-q4-earnings-highlights-nfl-squid-game-power-best-subscriber-growth-in-company-history">record operating income surpassing</a>&nbsp;$10 billion for fiscal 2024,&nbsp;suggests a promising future for the company. Netflix anticipates its 2025 revenue to fall&nbsp;between $43.5 billion and $44.5&nbsp;billion, indicating a 12-14% growth. This projection underscores Netflix&#8217;s relatively&nbsp;small current share of the&nbsp;estimated $650 billion market opportunity&nbsp;across its key regions.



The company&#8217;s strong performance, driven by popular shows like &#8216;Squid Game&#8217; and its NFL content, has led to a significant <a href="https://www.benzinga.com/25/01/43104552/youtube-vs-netflix-streamers-top-usage-leaderboard-in-december-sector-makes-more-gains-on-broadcast-and-cable">increase in its subscriber base.</a> The price hike, which is the largest in the company&#8217;s history, is a bold move that reflects Netflix&#8217;s confidence in its future growth and content offerings.



Read Next:



<ul>
<li><a href="https://www.benzinga.com/markets/25/01/43118598/warren-buffetts-pilot-co-exits-global-oil-trading-refocuses-on-us-operations-report" target="_blank" rel="noreferrer noopener">Warren Buffett's Pilot Co Exits Global Oil Trading, Refocuses On US Operations: Report</a></li>
</ul>



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



Image via Shutterstock

Netflix Rises 15% In Wednesday Premarket As Streaming Giant Hikes Prices Following Record Subscriber Growth

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