President Donald Trump on Thursday has signed executive orders on digital assets, aiming to bolster U.S. leadership in the crypto industry while halting progress on <a href="https://www.benzinga.com/topic/central-bank-digital-currency">central bank digital currencies.</a>



The <a href="https://www.whitehouse.gov/presidential-actions/2025/01/strengthening-american-leadership-in-digital-financial-technology/">order</a> establishes a Presidential Working Group on Digital Asset Markets, chaired by White House &#8216;AI &amp; Crypto Czar&#8217; David Sacks. 



This group will include key figures such as the Secretary of the Treasury and the Chairman of the Securities and Exchange Commission, tasked with developing a federal regulatory framework for digital assets and stablecoins.



A notable aspect of the order is its directive to evaluate the creation of a &#8220;strategic national digital assets stockpile.&#8221; The Working Group is instructed to &#8220;propose criteria for establishing such a stockpile, potentially derived from cryptocurrencies lawfully seized by the Federal Government through its law enforcement efforts.&#8221;



Also Read: <a href="https://www.benzinga.com/markets/cryptocurrency/25/01/43161311/donald-trump-has-more-than-50-of-net-worth-in-crypto-will-establish-strategic-bitcoin-reserve-anthony-pompliano-predicts" target="_blank" rel="noreferrer noopener">Trump Has ‘More Than 50%' Of Net Worth In Crypto, Will Establish Strategic Bitcoin Reserve, Anthony Pompliano Predicts</a>



The executive order also calls for a comprehensive review of existing regulations. Within 60 days, relevant agencies must submit recommendations to the Chair on whether identified regulations, guidance documents, orders, or other items affecting the digital asset sector should be rescinded, modified, or adopted into regulation.



In a significant departure from previous administrations, the order explicitly prohibits agencies from taking any action to &#8220;establish, issue, or promote CBDCs within the jurisdiction of the United States or abroad.&#8221; It further mandates the immediate termination of any ongoing plans or initiatives related to CBDC creation.



The order revokes Executive Order 14067 of March 9, 2022, and directs the Secretary of the Treasury to revoke the Department&#8217;s &#8220;Framework for International Engagement on Digital Assets&#8221; issued on July 7, 2022. These actions are described as necessary to reverse policies that &#8220;suppressed innovation and undermined U.S. economic liberty and global leadership in digital finance.&#8221;



Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) is down 0.9% in the past hour, trading around $102,900. 



Ethereum (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/eth/usd">ETH</a>) is up 1.1% over the same timeframe, trading around $3,240.



Read Next: 



<ul>
<li><a href="https://www.benzinga.com/markets/cryptocurrency/25/01/43170775/crypto-senator-lummis-to-chair-senate-banking-digital-assets-subcommittee-is-the-bitcoin-reserve-on-its-way">&#8216;Crypto Senator Lummis&#8217; To Chair Senate Banking Digital Assets Subcommittee: Is The Bitcoin Reserve On Its Way?</a></li>
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Image: Shutterstock

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News

Politics

$BTC

$ETH

Trump Signs Executive Order On Crypto, Bitcoin Reserve To Be 'Evaluated'

Verizon Communications (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VZ#NYSE">VZ</a>) will likely highlight 5G growth and recent partnerships when fourth-quarter financial results are released Friday <a href="https://www.benzinga.com/earnings">before the market opens</a>.



Earnings Estimates: Analysts expect the company to report fourth-quarter revenue of $35.32 billion, up from last year's fourth-quarter total of $35.13 billion according to data <a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent012325&amp;t=be2bearmibe3na1">from Benzinga Pro.</a>



The company has missed analyst estimates for revenue in three straight quarters, and five of the last 10 quarters overall.



Analysts expect Verizon to report fourth-quarter earnings per share of $1.10, up from $1.08 in last year's fourth quarter. The company has beaten analyst estimates for earnings per share in five of the last 10 quarters, while also meeting expectations in four of the last 10 quarters.



Read Also: <a href="https://www.benzinga.com/25/01/42881735/verizon-hits-55-gbps-5g-speeds-lands-air-force-deal-to-upgrade-base-networks-nationwide">Verizon Hits 5.5 Gbps 5G Speeds, Lands Air Force Deal to Upgrade Base Networks Nationwide</a>



Key Items to Watch: There will be several key items analysts and investors will be watching when Verizon reports quarterly financial results.



In December, Verizon <a href="https://www.benzinga.com/media/24/12/42727432/att-and-verizon-contain-cyberattack-linked-to-chinas-salt-typhoon-group">experienced a cyberattack</a> linked to China. Either the earnings report or the earnings call will likely cover the impact of the attack and what Verizon has done to fend off future attacks.



The <a href="https://www.benzinga.com/government/regulations/25/01/42779998/6th-circuit-strikes-down-fcc-net-neutrality-rules-in-blow-to-biden-administrations-internet-regulation-agenda">end of net neutrality</a> could be another big topic in the quarterly results. Verizon is one of several companies that could benefit from sweeping changes under the new White House administration and FCC.



In December, Verizon <a href="https://www.benzinga.com/tech/24/12/42536593/verizon-teams-up-with-nvidia-to-power-ai-apps-over-private-5g-networks">also announced a partnership</a> with Nvidia that will see AI-powered solutions in the 5G space. This includes covering sectors like artificial intelligence, augmented reality, virtual reality, robotics, Internet of Things and streaming.



Analysts<a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/10/41498854/verizons-5g-expansion-and-fiber-goals-boost-long-term-outlook-analysts-cautiously-o"> were cautiously optimistic </a>after Verizon's third-quarter financial results in October. The company r<a href="https://www.benzinga.com/news/earnings/24/10/41450868/verizon-q3-earnings-wireless-subs-boost-with-5g-offers-1-7b-severance-charge-hit-to-profit-reiterat">eported wireless service </a>revenue up 2.7% year-over-year. Verizon saw growth for subscribers across several segments and analysts will likely be looking for the same growth on Friday.



Lower revenue from Verizon Business and a drop in net income due to severance charges and headcount reductions hurt the quarterly results and those items will be closely watched Friday.



As a member of the Dow Jones Industrial Average, ETFs that track the stock market index will also be on watch Friday with Verizon's report. The SPDR Dow Jones Industrial Average ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>) is up 3% over the last five days with several Dow Jones component companies reporting earlier this week.



Price Action: Verizon stock is up 1% to $39.27 on Thursday versus a 52-week trading range of $37.58 to $45.36. Verizon stock is down 2.3% over the last year.



Read Next: 



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<li><a href="https://www.benzinga.com/trading-ideas/dividends/24/12/42743301/dogs-of-the-dow-top-10-high-yield-stocks-offering-dividends-up-to-6-8-in-2025">Dogs Of The Dow: Top 10 High-Yield Stocks Offering Dividends Up To 6.8% In 2025</a></li>
</ul>



Image: Shutterstock

Previews

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Verizon Q4 Earnings Preview: Will Company Show 5G Growth, Reverse Streak Of Revenue Misses?

Tesla Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) stock soared after Donald Trump won the 2024 presidential election, helping CEO Elon Musk become the first person worth more<a href="https://www.benzinga.com/news/management/24/12/42444955/elon-musk-first-person-worth-400-billion-as-tesla-stock-hits-new-all-time-highs-how-2024-election-helped-could-lead-to-future-gains"> than $400 billion.</a>



While Musk's political push and Trump friendship might have been good for the stock, a new report showed it could have hurt Tesla's brand value.



What Happened: Musk continued to support Trump and his policies, which included trying to <a href="https://www.benzinga.com/trading-ideas/25/01/43116755/trumps-plan-to-end-7500-ev-tax-credits-could-be-devastating-for-telsa-rivals-poll-says-could-be-bullish-for-elon-musks-company">end tax credits </a>for electric vehicles.



The support for Trump could be hurting Tesla's brand value, according to the 2025 global brand <a href="https://brandirectory.com/reports/global">rankings </a>from Brand Finance.



Tesla fell to 36th place in the 2025 rankings, down from 18th place in 2024. The electric vehicle company had a brand value of $43 billion in the 2025 rankings, down 26% from $58.27 billion in 2024.



This marked the second straight year Tesla's brand value fell in the annual rankings, as <a href="https://www.cnbc.com/2025/01/21/tesla-lost-15-billion-in-brand-value-in-2024-brand-finance-found.html">reported </a>by CNBC. Reasons for the fall could be related to a lack of new vehicles from Tesla and Musk's "antagonism," the report said.



"There are people who think he's wonderful, but many that don't," Brand Finance CEO David Haigh told CNBC of Musk. "If you are buying electric vehicles, his persona is highly likely to impact your view of whether or not you want to buy one of his company's cars, but that's only one of many factors."



Tesla&#8217;s scores in categories such as "reputation," "recommendation" and "consideration" all fell from the prior year.



The results of the brand survey included comments and rankings from more than 16,000 people who shared their views on Tesla. The EV company saw large drops in rankings from consumers in Europe. In the U.S., Tesla still had a high loyalty score of 90%, which meant Tesla owners would likely keep their vehicles for the next 12 months.



While the loyalty score was positive, Tesla&#8217;s recommendation score fell from 8.2 out of 10 to 4.3 in the U.S., which suggested Tesla owners were not recommending the products to other potential customers.



"Tesla won't be able to sell so many products, and it won't be able to sell at such high prices as it did before," Haigh suggested.



Haigh said Tesla releasing new products that get new customers excited could help offset some of the brand weakness witnessed related to Musk.



Other Musk-related companies had calculated brand values in the Brand Finance report. The brand value of social media platform X declined 26% from $673 million to $498 million. The brand value of X declined in recent years for the survey due to the name change from Twitter to X and concerns about advertisers and lost users.



SpaceX&#8216;s brand value rose 11% to $3.8 billion in 2025 in its second year in the annual survey. Starlink, which is owned by SpaceX, was also calculated separately and received a brand value of $2.4 billion for its first time in the annual survey.



Are you buying when the CEOs of the Magnificent 7 are selling?



<ul>
<li>Stay in the know with our Insider Trades page — <a href="https://www.benzinga.com/sec/insider-trades/">see when leaders like Mark Zuckerberg, Elon Musk, and Jensen Huang are offloading their own shares.</a></li>
</ul>



Other Brand Winners and Losers: Technology giant Apple Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) ranked first in the Brand Finance report for a second straight year. Apple's brand value increased 11% from $516.58 billion to $574.51 billion in 2025. Over 80% of consumers in the survey were familiar with Apple and 45% of consumers consider or do use Apple brand products and services.



Following Apple in the top five were Microsoft, Google (part of Alphabet), Amazon and Walmart. One of the biggest gainers was NVIDIA Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>), which moved from 30th place to ninth place and saw its brand value up 98% year-over-year to $87.8 billion. Nvidia was included in the top 500 list for the first time in 2014, when it was ranked 424. This year marked the semiconductor's first time in the top 10.



Brand Finance said TikTok, DraftKings and FanDuel were among the fastest-growing companies for brand value.



Among automotive companies, Toyota (18), Mercedes-Benz (23), and Hyundai (29) ranked ahead of Tesla in the annual rankings. &nbsp;



Why It's Important: Benzinga previously reported some angry Tesla customers who don't agree with Musk's political push are <a href="https://www.benzinga.com/news/24/11/42023767/tesla-owners-who-dont-like-musk-are-letting-bumper-stickers-do-the-talking">buying bumper stickers </a>with phrases such as "I bought this before we knew Elon was crazy."



Rival EV company Polestar Automotive Holding (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PSNY#NASDAQ">PSNY</a>) was trying<a href="https://www.benzinga.com/tech/25/01/43155064/polestar-ceo-looks-to-attract-tesla-customers-disenchanted-by-elon-musks-politics-somebody-outside-of-germany-endorsing-right-wing-politicial-parties-totally-unacceptable"> to lure customers</a> who might be upset with Musk's political commentary.



Polestar CEO Michael Lohscheller told Bloomberg News people have "very, very negative sentiment" about Musk's political commentary.



"For Germany, somebody outside of Germany endorsing right-wing political parties is a big thing," Lohscheller said.



A survey of Tesla owners in the Netherlands showed around one-third were considering selling their car, with Musk one of the main reasons.



The survey conducted by Dutch news outlet <a href="https://eenvandaag.avrotros.nl/panels/opiniepanel/alle-uitslagen/item/schaamte-bij-tesla-rijders-door-gedrag-elon-musk-3-op-de-10-eigenaren-willen-van-hun-auto-af/">EenVandaag </a>and shared by <a href="https://insideevs.com/news/747944/tesla-owners-musk-survey-netherlands/">InsideEVs </a>showed Tesla owners who thought Musk's actions were making them reconsider their brand loyalty.



"If I had known what he is like now, I would have never bought a Tesla," one Tesla owner said in the survey.



Read Next: 



<ul>
<li><a href="https://www.benzinga.com/tech/24/12/42722137/elon-musk-peter-thiel-and-billionaires-influence-in-trumps-white-house-former-labor-secretary-robert-reichs-warning">Elon Musk, Peter Thiel And Billionaires&#8217; Influence In Trump&#8217;s White House: Former Labor Secretary Robert Reich&#8217;s Warning</a></li>
</ul>



Photos: Shutterstock

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Tesla Lost $15 Billion In Brand Value In 2024, Report Says: Did Elon Musk's Political Push Hurt EV Giant?

Editor&#8217;s note: This story has been updated with a statement from Construction Partners. 



A short report from Spruce Point Capital Management on Thursday sent shares of Construction Partners Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ROAD#NASDAQ">ROAD</a>) tumbling. Here&#8217;s what <a href="https://www.benzinga.com/pressreleases/25/01/b43159674/spruce-point-capital-management-announces-investment-opinion-releases-report-and-strong-sell-resea">investors need to know</a>.



What To Know: Short-selling investment management firm Spruce Point released a new research report on Construction Partners titled, &#8220;An As-Faulty Investment,&#8221; alleging the company&#8217;s business is under pressure and faces 35% to 50% downside.



Spruce Point said that increased pressure on the company&#8217;s business has resulted in revenue growth failures and weakening backlog, return on capital and free cash flow conversion. The short seller said it believes that weakness in Construction Partners&#8217; business is being &#8220;masked by poor transparency and aggressive financial presentation methods.&#8221;



Spruce Point highlighted several concerns related to poor transparency including frequent changes to the company&#8217;s market leadership claims and changes to contractor rankings that suggest the business is under pressure. 



The short seller noted that Construction Partners rarely breaks down its guidance to show how much growth is organic and instead relies on acquisitions for growth. Spruce Point also said the company&#8217;s contract mix is getting worse and that management has made changes to cash flow reporting that appear to be beneficial to reported results.



A Construction Partners spokesperson said in a statement Thursday the company is proud to have achieved a 17% year-over-year revenue increase, 41% increase in net income and 28% increase in adjusted EBITDA in fiscal 2024. &#8220;We are aware of today's report from Spruce Point Capital Management, a known short-seller that seeks to profit at the expense of shareholders,&#8221; the spokesperson said. &#8220;It is clear that the short-seller made numerous false statements and is deliberately attempting to mislead the market. We strongly refute the assertions in the report.



Check This Out: <a href="https://www.benzinga.com/25/01/43169109/blackrocks-larry-fink-warns-that-new-inflationary-pressures-could-shock-the-stock-market-it-could-be-pretty-bad">BlackRock&#8217;s Larry Fink Warns That New Inflationary Pressures Could &#8216;Shock&#8217; The Stock Market: &#8216;It Could Be Pretty Bad&#8217;</a>



Construction Partners&#8217; biggest customer is the Florida Department of Transportation, but Spruce Point believes contract awards from FDOT are set to decline materially.



&#8220;Just a few years ago, Florida was contributing under&nbsp;10%&nbsp;to total revenue but recently approached&nbsp;14%&nbsp;in FY24. While ROAD&#8217;s total revenue growth was ~16.6%&nbsp;in FY24, Florida&#8217;s growth exceeded&nbsp;48%,&#8221; the short seller said. 



&#8220;However, based on our recent Freedom of Information Act (&#8220;FOIA&#8221;) request with FDOT, we believe Florida revenue is poised to decelerate.&#8221;



Spruce Point estimated that Construction Partners will experience an EBITDA decline of $10 million to $15 million in 2025 based on a slowing of Florida contract awards.



The Construction Partners spokesperson said short seller allegations regarding 2024 FDOT awards &#8220;are materially overstated and ignore the impact of city, county and other public projects using state and federal funds that make Florida such a well-supported and growing market for us.&#8221;



Spruce Point said it believes Construction Partners is focused on expanding to Texas and Oklahoma to deflect attention away from declines in Florida. The short seller is skeptical about the financials of the company&#8217;s recent acquisition of Lone Star Paving, alleging that market models have failed to accurately calculate equity and enterprise values, which has led to an inflated valuation.



&#8220;Valuing ROAD&#8217;s shares in-line with industry peers and its long-term average multiple suggest&nbsp;35%–50%&nbsp;long-term potential downside risk ($46&nbsp;–&nbsp;$60&nbsp;per share). We expect ROAD&#8217;s share price to meaningfully underperform its industry peers and the overall U.S. equity market,&#8221; Spruce Point said.



ROAD Price Action: <a href="http://benzinga.com/quote/road">Construction Partners shares</a> were down 10.6% at $82.86 at the time of publication Thursday, according to <a href="http://pro.benzinga.com">Benzinga Pro</a>.



Read Next:



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<li><a href="https://www.benzinga.com/news/earnings/25/01/43168966/la-wildfire-update-hughes-fire-burns-10000-acres-travelers-insurance-says-fires-will-have-material-impact-on-q1-earnings">LA Wildfire Update: Hughes Fire Burns 10,000 Acres, Travelers Insurance Says Fires Will Have &#8216;Material Impact&#8217; On Q1 Earnings</a></li>
</ul>



Photo: Shutterstock.

Short Sellers

Short Ideas

ROAD

Construction Partners Stock Cracks Under Pressure As Short Seller Warns Of Potential 50% Downside (UPDATED)

Wall Street traded slightly higher during midday Thursday as investors assessed the ongoing earnings season while closely monitoring policy signals<a href="https://www.benzinga.com/topic/donald-trump"> from President Donald Trump. </a>



The Dow Jones Industrial Average outperformed, buoyed by strength in industrials, utilities, and healthcare stocks, pushing the blue-chip index closer to record highs. 



Tech stocks retreated, pulling back after Wednesday's sharp rally. Semiconductors led the decline, surrendering a significant portion of their previous gains, which were fueled by optimism over the $500 billion AI Stargate initiative. 



The iShares Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NASDAQ">SOXX</a>) slipped 0.8%, on track to snap five straight sessions of gains. 



Trump addressed the <a href="https://www.benzinga.com/news/global/25/01/43170854/trump-outlines-economic-reset-at-davos-5-things-you-need-to-know">World Economic Forum via videoconference</a>, advocating for expanded oil &amp; gas production and proposing a 15% corporate tax rate for businesses relocating manufacturing to the U.S. 



He also reiterated plans to impose tariffs on countries with large trade deficits with the U.S., issuing warnings to Europe, Canada, and China. 



Additionally, Trump called on Saudi Arabia and OPEC to lower oil prices. Crude fell 0.7%, marking its fifth consecutive session of losses, the longest losing streak since June 2024. 



In the bond market, volatility resurfaced after a brief period of stability. The 30-year Treasury yield climbed 4 basis points to 4.89%. 



Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) rebounded 2.2% to $105,000, erasing Wednesday's losses.



<h3 class="wp-block-heading">Thursday&#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>Dow Jones</td><td>44,539.31</td><td>0.9%</td></tr><tr><td>S&amp;P 500</td><td>6,106.05</td><td>0.3%</td></tr><tr><td>Russell 2000</td><td>2,308.39</td><td>0.2%</td></tr><tr><td>Nasdaq 100</td><td>21,828.09</td><td>-0.1%</td></tr></tbody></table><figcaption class="wp-element-caption">Updated at 1:30 p.m. ET</figcaption></figure>



According to&nbsp;<a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent012325&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 0.3% to $608.16.</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;rose 0.9% to $445.01.</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>) slipped 0.1% to $531.03.</li>



<li>The&nbsp;iShares Russell 2000 ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) inched 0.3% up to $228.85.</li>



<li>The&nbsp;Industrial Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLI#NYSE">XLI</a>) rallied, up 1.2%; the&nbsp;Technology Select Sector SPDR Fund&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLE#NYSE">XLE</a>) lagged, down 0.3%.</li>
</ul>



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



<ul>
<li>Arm Holdings plc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ARM#NASDAQ">ARM</a>) tumbled 8% after Elon Musk questioned the financial viability about the Stargate initiative.</li>



<li>American Airlines Group Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAL#NASDAQ">AAL</a>) slid nearly 8% despite surpassing fourth-quarter earnings expectations, as its first-quarter outlook fell short of analysts&#8217; forecasts.</li>



<li>Other stocks reacting to earnings were GE Aerospace (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GE#NYSE">GE</a>), up 6.7%, Union Pacific Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UNP#NYSE">UNP</a>), up 4.8%, Freeport-McMoRan Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FCX#NYSE">FCX</a>), down 2.3%, Alaska Air Group Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ALK#NYSE">ALK</a>), up 3.9%, Kinder Morgan Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KMI#NYSE">KMI</a>), down 2%, Discover Financial Services (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DFS#NYSE">DFS</a>), up 2.8%, Alcoa Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AA#NYSE">AA</a>), down 3.6%. </li>



<li>Companies slated to report earnings after the close include Intuitive Surgical Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ISRG#NASDAQ">ISRG</a>), down 0.3%, Texas Instruments Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TXN#NASDAQ">TXN</a>), up 1.2%, CSX Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CSX#NASDAQ">CSX</a>). </li>
</ul>



Read now: 



<ul>
<li><a href="https://www.benzinga.com/news/earnings/25/01/43168966/la-wildfire-update-hughes-fire-burns-10000-acres-travelers-insurance-says-fires-will-have-material-impact-on-q1-earnings">LA Wildfire Update: Hughes Fire Burns 10,000 Acres, Travelers Insurance Says Fires Will Have &#8216;Material Impact&#8217; On Q1 Earnings</a></li>
</ul>



Image: Shutterstock

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Dow Jones Nears Records, Tech Pulls Back, Treasury Yields Rise Again: What's Driving Markets Thursday?

The Hughes fire has grown to more than 10,000 acres Thursday and forced more than 31,000 Californians to evacuate an area near Castaic Lake, about 45 miles <a href="https://www.benzinga.com/markets/equities/25/01/43149396/new-fire-breaks-out-in-los-angeles-county">northwest of Los Angeles.</a>&nbsp;



What To Know: The latest fire to ravage the L.A. area broke out just before 11 a.m. PT on Wednesday and spread quickly under dry conditions and high winds.&nbsp;



&#8220;This vegetation is extremely dry," said LA County Fire public information officer Fred Fielding, as reported by NBC Los Angeles.&nbsp;



"We&#8217;ve had two years of above average rainfall (2023 and 2024)&#8230; so you&#8217;ve got a lot of these light grasses where these fires can start, and if it gets into that old growth vegetation there&#8217;s a lot of energy there. Combine that with the winds, and you&#8217;ve got a recipe for a very high rate of spread.&#8221;



Read Next: <a href="https://www.benzinga.com/trading-ideas/movers/25/01/43136971/will-soundhound-ai-stock-get-a-boost-from-project-stargate">Will SoundHound AI Stock Get A Boost From Project Stargate?&nbsp;</a>



As of Wednesday night, the Hughes fire was 14% contained, according to the Los Angeles County Fire Department. A red flag warning has been extended through 10 a.m. Friday in Los Angeles and Ventura counties. 



What To Watch: AccuWeather estimates the<a href="https://www.benzinga.com/news/legal/25/01/42953761/santa-ana-winds-return-as-la-wildfire-damage-estimates-rise-to-at-least-250-billion-fire-officials-investigate-downed-power-lines"> total damage</a> and economic loss from the wildfires to be between $250 billion and $275 billion and could increase as fires continue to burn. 



Travelers Companies, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TRV#NYSE">TRV</a>), one of the major insurers in Southern California, addressed the California wildfires on its quarterly earnings call on Wednesday. 



Travelers' CFO Dan Frey said that the wildfires "are going to be a material event for the industry" and will have a "material impact on our first-quarter earnings."&nbsp;



Other insurance companies<a href="https://www.benzinga.com/analyst-ratings/analyst-color/25/01/43068088/allstate-chubb-progressive-face-significant-losses-from-wildfires-weather-events-say-analysts-ahead-of-q4-reports"> with exposure</a> to the wildfires include Allstate Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ALL#NYSE">ALL</a>), Chubb Ltd. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CB#NYSE">CB</a>), and Progressive Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PGR#NYSE">PGR</a>). All three companies will report fourth-quarter earnings at the end of January and beginning of February. 



Investors will watch for guidance and early estimates of how the fires will impact first-quarter results. 



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Photo: Shutterstock

Earnings

Insurance

LA Wildfire Update: Hughes Fire Burns 10,000 Acres, Travelers Insurance Says Fires Will Have 'Material Impact' On Q1 Earnings

BlackRock Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BLK#NYSE">BLK</a>) CEO Larry Fink is cautiously optimistic on the markets. He&#8217;s optimistic on growth prospects, but warned Thursday that new inflationary pressures could <a href="https://www.benzinga.com/markets/equities/24/12/42608297/tom-lee-explains-why-fewer-cuts-in-2025-could-boost-the-market-urges-investors-to-buy-the-dip-amid-recent-volatility">negatively impact stocks</a>. 



What To Know: During a <a href="https://www.cnbc.com/2025/01/23/blackrocks-fink-says-that-the-bond-market-will-tell-us-where-were-going.html">CNBC</a> interview from the&nbsp;World Economic Forum on &#8220;Squawk Box&#8221; Thursday morning, Fink was asked about his stance on the current state of the stock market. 



"I'm cautiously optimistic,&#8221; he said. &#8220;That being said, I have scenarios where it could be pretty bad.&#8221;



The BlackRock chief pointed to U.S. President Donald Trump&#8217;s recent <a href="https://www.benzinga.com/markets/futures/25/01/43122112/us-stocks-likely-to-open-higher-as-president-trump-announces-500-billion-ai-project-oracle-netflix-nvidia-among-top-stocks-to-watch">plans</a> to invest up to $500 billion in <a href="http://benzinga.com/topic/ai">AI</a> infrastructure. Fink believes the investment will help unlock private capital and stimulate &#8220;enormous&#8221; growth. However, he also believes the growth could bring on new inflationary pressures. 



&#8220;I do believe that's probably the risk that is not factored into the markets. I think the bond market is going to tell us where we're going,&#8221; Fink told CNBC.



The 10-year Treasury yield was hovering around 4.64% at the time of writing, according to <a href="http://pro.benzinga.com">Benzinga Pro</a>. It&#8217;s been trending higher since mid-September when it bottomed around 3.62%. 



Fink noted that there is a possibility that the 10-year could climb back above 5% and even rise as high as 5.5% if inflation begins picking up again. 



&#8220;That would shock the equity market. That would not be a good scenario,&#8221; the BlackRock CEO said.



See Also: <a href="https://www.benzinga.com/markets/cryptocurrency/25/01/43167016/blackrock-ceo-fink-urges-sec-to-rapidly-approve-tokenization-of-stocks-and-bonds">BlackRock CEO Fink Urges SEC To &#8216;Rapidly Approve&#8217; Tokenization Of Stocks And Bonds</a>



The Trump administration is trying to find growth from the private sector. Fink said he will be paying attention to how quickly the private sector is able to put money to work. At the same time, he&#8217;s keeping an eye on inflationary pressures. 



&#8220;Depending on how this plays out, there is a scenario where we're going to have much more elevated interest rates because of inflation. And that's going to have a very negative impact on the equity market,&#8221; Fink said. 



<a href="http://benzinga.com/quote/blk">BlackRock shares</a> were up 0.51% at $1,011.45 at the time of publication, according to <a href="http://pro.benzinga.com">Benzinga Pro</a>.



Now Read:



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<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/25/01/43163656/stargate-project-microsoft-gains-oracle-waits-data-centers-face-long-term-questions">Stargate Project: Microsoft Gains, Oracle Waits, Data Centers Face Long-Term Questions</a></li>
</ul>



Photo: Shutterstock.

BlackRock's Larry Fink Warns That New Inflationary Pressures Could 'Shock' The Stock Market: 'It Could Be Pretty Bad'

GameStop Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GME#NYSE">GME</a>) shares are moving higher in early trading Thursday. Retail traders appear to be circling a new social media post from meme stock trader&nbsp;Keith Gill,&nbsp;also <a href="https://www.benzinga.com/topic/roaring-kitty">known as&nbsp;&#8220;Roaring Kitty."</a>



What To Know: Gill made his first <a href="https://x.com/TheRoaringKitty/status/1882231930021949446">post</a> in about three weeks on X late Wednesday, which has sparked volatility in shares of GameStop and other related names. 



The new post features a dog hanging out on a sidewalk outside of a pizza shop. The song &#8220;I Will Wait For You,&#8221; sung by Connie Francis, plays throughout as the dog appears to be waiting for something.



GameStop shares tend to see increased attention whenever Gill is active on social media, but most traders appear to believe the meme stock trader may be hinting at another name on his radar. 



Shares of Unity Software Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/U#NYSE">U</a>) and Clear Secure Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/YOU#NYSE">YOU</a>) briefly popped on the post. Traders across X and Reddit&#8217;s r/WallStreetBets are speculating that Roaring Kitty could be looking for other opportunities. Unity Software appears to be the leading guess. Some have speculated that the song is pointing traders to Unity. Others also noted that the letter &#8220;U&#8221; falls from the pizza shop sign about halfway through the video.



Check This Out: <a href="https://www.benzinga.com/25/01/43158901/jim-cramer-says-this-tech-stock-is-speculative-but-he-likes-it">Jim Cramer Says This Tech Stock Is Speculative But He Likes It</a>



Gill&#8217;s previous <a href="https://x.com/TheRoaringKitty/status/1874621633777844714">post</a> on X featured a short clip of comedian and actor&nbsp;Dave Chappelle&nbsp;impersonating musician&nbsp;Rick James. The meme often includes the word "Unity" overlayed on the image. "Unity" is also the name of a James song from the 1980s.



Gill also posted an&nbsp;<a href="https://x.com/TheRoaringKitty/status/1871933930963693706" target="_blank" rel="noreferrer noopener">image</a>&nbsp;of a wrapped gift in traditional Christmas colors&nbsp;on Christmas Day and&nbsp;<a href="https://www.benzinga.com/general/social-media/24/12/42349100/gamestop-rockets-as-roaring-kitty-returns-to-x-what-does-his-tweet-signal-ahead-of-q3-earnings" target="_blank" rel="noreferrer noopener">posted an image</a>&nbsp;of a TIME magazine cover featuring a blank computer screen and a video player paused at the 1:09 mark of a 4:20-long video in early December. Some traders have suggested that these posts could also be pointing to Unity Software, but it&#8217;s not clear if any of his posts have anything to do with Unity or any other stock. 



Gill is best known for playing a leading role in the historic 2021 meme stock craze&nbsp;that saw GameStop and other heavily shorted names squeeze higher. He made a return to social media last year following a three-year absence.



GME Price Action: GameStop shares were up 2.47% at $28.34 at the time of publication, according to <a href="http://pro.benzinga.com">Benzinga Pro</a>.



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<li><a href="https://www.benzinga.com/25/01/43066466/benzingas-stock-whisper-index-5-stocks-investors-secretly-monitor-but-dont-talk-about-yet">Benzinga&#8217;s &#8216;Stock Whisper&#8217; Index: 5 Stocks Investors Secretly Monitor But Don&#8217;t Talk About Yet</a></li>
</ul>



Photo: Shutterstock.

Social Media

Movers

What's Going On With GameStop Stock Thursday?

The tech world is reeling after President Trump&#8217;s announcement of the Stargate Project, a $500 billion initiative designed to catapult the <a href="https://www.benzinga.com/etfs/sector-etfs/25/01/43135764/trumps-500-billion-stargate-ai-plan-puts-3-etfs-in-focus">U.S. to AI supremacy.</a>



The project, which will see SoftBank, OpenAI and Oracle Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ORCL#NYSE">ORCL</a>) join forces to build cutting-edge AI infrastructure, has immediate implications for key tech players like Microsoft Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NYSE">MSFT</a>) and Oracle, as well as data centers, according to Goldman Sachs analyst Kash Rangan.



&#8220;The Stargate Project is solidifying the importance of Gen-AI as an important tech theme for the years ahead&#8221; Rangan said in a note released Thursday.



<h3 class="wp-block-heading">Microsoft: Early Bird Catches The Worm</h3>



Rangan sees the Stargate Project as strongly positive for Microsoft. As an early investor in OpenAI, Microsoft has already committed heavily in AI infrastructure. 



The new project, while potentially increasing competition, reinforces Microsoft&#8217;s existing advantages. &#8220;Being early to market and operational scaling experience is important,&#8221; Rangan said. 



The analyst highlights the updated terms of Microsoft&#8217;s partnership with OpenAI mitigate risks while maintaining significant upside. 



&#8220;From a financial perspective, MSFT gets to keep the equity upside while minimizing if not eliminating the risk given its involvement at ground zero with more parties stepping though Stargate to alleviate the capital burden,&#8221; Rangan said.



<h3 class="wp-block-heading">Oracle: Long-Term Potential, Near-Term Uncertainties</h3>



While Oracle stands to benefit from increased demand for AI services, Rangan cautions that these benefits may take time to materialize. 



&#8220;It could not be until 2028 that Oracle gets to experience material benefits from the Stargate JV,&#8221; he notes.



This lengthy timeline is partly attributed to the substantial lead time required for the construction of necessary datacenter equipment.



&#8220;We note that this is likely to take time to play out as supply constraints for necessary datacenter equipment have a ~3 year lead time,&#8221; he added.



Furthermore, the analyst highlighted uncertainties surrounding Oracle&#8217;s financial commitments to the project, noting that its planned CapEx of over $15 billion in fiscal-year 2025 may need upward revisions.



<h3 class="wp-block-heading">Datacenter Impact: Short-Term Boost, Long-Term Questions Remain</h3>



The Stargate Project presents a mixed bag for datacenter operators like Digital Realty Trust Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DLR#NYSE">DLR</a>) and Equinix Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/EQIX#NASDAQ">EQIX</a>).



In the short term, the project could provide a boost, driven by tighter supply-demand dynamics in the market.



&#8220;We see the announcement as a tactical positive, as we believe it reflects tighter supply/demand market dynamics than the market expects over the next two years,&#8221; Rangan said.



Yet, the long-term impact remains uncertain with the investment bank flagging the risk of shifting away from outsourced data centers. 



If OpenAI, which may utilize third-party providers like Digital Realty, decides to primarily leverage the infrastructure built by the Stargate Project, it could significantly diminish the demand for external data center services.



Essentially, the Stargate Project could disrupt the existing market dynamics, posing a potential threat to the long-term growth of companies like Digital Realty.



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</ul>



Photo: Shutterstock

Analyst Color

Analyst Ratings

EQIX

MSFT

ORCL

Stargate Project: Microsoft Gains, Oracle Waits, Data Centers Face Long-Term Questions

American Airlines Group Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAL#NASDAQ">AAL</a>) stock plunged after the company reported <a target="_blank" href="https://www.benzinga.com//node/43155792" rel="noreferrer noopener">fourth-quarter 2024 results and weak outlook.</a>



The airline&#8217;s operating revenue grew 4.6% year-over-year to $13.66 billion, beating the consensus of $13.395 billion. The revenue increase was fueled by capacity adjustments and demand strength.



The adjusted operating margin stood at 8.4% compared to 5.1% a year ago. The company reported adjusted EPS of $0.86, up from $0.29 a year ago, <a target="_blank" href="https://www.benzinga.com/earnings" rel="noreferrer noopener">above the consensus of $0.64.</a>



The company generated an operating cash flow of $3.983 billion for fiscal 2024, up from $3.803 billion a year ago, and a free cash flow of ~$2.201 billion. The company ended the year with $10.3 billion in available liquidity.



In the&nbsp;fourth quarter&nbsp;of 2024, American Airlines met its $15 billion debt reduction target from mid-2021 peak levels, achieving the goal a year earlier than planned.



Revenue passenger miles increased by 4.0%, Available seat miles were up by 2.5%, and the passenger load factor for the quarter was 84.9% compared to 83.6% in the same quarter last year.



The average aircraft fuel price, including related taxes (dollars per gallon), fell 23.5% YoY to $2.34, and the operating cost per ASM reduced by 1.5%.



Related: <a target="_blank" href="https://www.benzinga.com/general/travel/25/01/43140360/american-airlines-charts-are-bullish-can-q4-earnings-keep-the-altitude" rel="noreferrer noopener">American Airlines Charts Are Bullish: Can Q4 Earnings Keep The Altitude?</a>



During the quarter, American Airlines announced an exclusive 10-year co-branded credit card partnership with Citi, aimed at providing enhanced value for AAdvantage and Citi-branded cardholders.



&#8220;We continue to run a reliable operation, and we are reengineering the business to build an even more efficient airline. That, coupled with our commercial actions, resulted in strong financial performance in the fourth quarter. As we look ahead to this year, American remains well-positioned because of the strength of our network, loyalty and co-branded credit card programs, fleet and operational reliability, and the tremendous work of our team,&#8221; commented American&#8217;s CEO&nbsp;Robert Isom.



Q1 Guidance: American Airlines expects adjusted EPS loss to be between $0.20 to $0.40 versus a $0.04 loss estimate and adjusted operating margin of ~ flat to 1%.



AAL expects first-quarter revenue to increase 3%- 5% year over year and total capacity to be ~flat to -2%.



2025 Guidance: American Airlines expects an adjusted EPS of $1.70 to $2.70 versus the consensus of $2.42. It <a href="https://www.benzinga.com/calendars/guidance">expects revenue growth of 4.5% to 7.5%.</a>



Price Action: AAL shares are trading lower by 5.57% at $17.62 premarket at the last check Thursday.



Photo via Shutterstock.

Guidance

American Airlines Q4: Earnings Beat, Debt Milestone, Lackluster Guidance And More

GE Aerospace (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GE#NYSE">GE</a>)&nbsp;shares are trading higher premarket on Thursday after it reported&nbsp;fourth-quarter&nbsp;adjusted revenue growth of&nbsp;16%&nbsp;year-over-year to&nbsp;$9.879 billion&nbsp;and GAAP revenue of&nbsp;$10.812 <a target="_blank" href="https://www.geaerospace.com/sites/default/files/geaerospace_webcast_pressrelease_01232025.pdf" rel="noreferrer noopener">billion</a>. The analyst consensus was&nbsp;$9.604 billion.



<figure class="wp-block-image"><img decoding="async" src="blob:https://editorial.benzinga.com/5bc3d4f8-2670-4423-8838-53d700322ea0" alt=""/></figure>



Commercial Engines &amp; Services&nbsp;revenue was $7.650 billion&nbsp;(+19%&nbsp;Y/Y) and Defense &amp; Propulsion Technologies&nbsp;revenue totaled $2.523 billion&nbsp;(+4%&nbsp;Y/Y).



Total orders increased&nbsp;46%&nbsp;Y/Y to&nbsp;$15.5 billion, with Commercial Engines &amp; Services&nbsp;+50% Y/Y&nbsp;and Defense &amp; Propulsion Technologies&nbsp;+22% Y/Y.



GE Aerospace&#8217;s adjusted operating profit margin expanded 450 bps to&nbsp;20.1%, with an adjusted operating profit of&nbsp;$1.988 billion, up&nbsp;49%&nbsp;in the quarter.



Adjusted EPS for the quarter was&nbsp;$1.32 (+103%&nbsp;Y/Y), <a target="_blank" href="https://www.benzinga.com/earnings" rel="noreferrer noopener">beating the consensus of&nbsp;$1.04</a>.



GE Aerospace&#8217;s cash from operating activities for the fiscal year stood at&nbsp;$5.8 billion&nbsp;(+26%), while adjusted free cash flow rose&nbsp;28%.



The company repurchased shares worth more than $6&nbsp;billion in 2024. Also, it disclosed share repurchase plans of $7 billion in 2025, while raising the dividend by 30%, subject to Board approval.



2025 Guidance: GE Aerospace&nbsp;expects adjusted revenue growth in the low double digits and adjusted EPS of&nbsp;$5.10 &#8211; 5.45<a target="_blank" href="https://www.benzinga.com/calendars/guidance" rel="noreferrer noopener"> vs. the&nbsp;$5.22&nbsp;consensus</a>.



The company expects adjusted operating profit of&nbsp;$7.8 billion&nbsp;–&nbsp;$8.2 billion&nbsp;and adjusted Free Cash Flow of&nbsp;$6.3 billion&nbsp;–&nbsp;$6.8 billion.



GE Aerospace Chairman and CEO H. Lawrence Culp, Jr. said, &#8220;Looking to 2025, we expect double-digit revenue and EPS growth with greater than 100% free cash flow conversion. Guided by FLIGHT DECK, our proprietary lean operating model, I&#8217;m confident in our ability to accelerate output and deliver for our customers.&#8221;



Investors can gain exposure to the stock via&nbsp;TCW Transform Systems ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NETZ#NYSE">NETZ</a>)and&nbsp;iShares U.S. Aerospace &amp; Defense ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/ITA#BATS">ITA</a>).



Price Action: GE shares are up 8.04% at $203.51 premarket at the last check Thursday.



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<li><a href="https://www.benzinga.com/25/01/43152748/sp-500-hits-new-record-fear-among-us-investors-eases-but-fear-greed-index-remains-in-fear-zone" target="_blank" rel="noreferrer noopener">S&amp;P 500 Hits New Record As Netflix Reports Strong Results: Investor Sentiment Improves But Greed Index Remains In &#8216;Fear&#8217; Zone</a></li>
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Photo: Jonathan Weiss/Shutterstock.com

Dividends

Buybacks

NETZ

GE Aerospace Q4 Earnings: EPS Beat, Dividend And Stock Buyback Hike, Strong FY25 Outlook And More

Shares of Rivian Automotive Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RIVN#NASDAQ">RIVN</a>) and Lucid Group Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LCID#NASDAQ">LCID</a>) have declined sharply following President Donald Trump&#8217;s announcement of significant electric vehicle <a href="https://www.benzinga.com/trading-ideas/25/01/43116755/trumps-plan-to-end-7500-ev-tax-credits-could-be-devastating-for-telsa-rivals-poll-says-could-be-bullish-for-elon-musks-company">policy changes</a>. Technical analysis of these companies reflects a bleak picture for the stocks in the near term.



What Happened: According to <a href="https://pro.benzinga.com/dashboard">Benzinga Pro</a>, shares of Rivian fell by 10.93% and Lucid Group slid 12.70% over the last two trading sessions after Trump signed executive orders related to EV policies on his first day in office.



<figure class="wp-block-image size-large"><a href="https://pro.benzinga.com/dashboard"><img loading="lazy" decoding="async" width="1024" height="576" src="https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/23044559/RIVN-LICD-TWO-DAY-1024x576.png" alt="" class="wp-image-746424" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/23044559/RIVN-LICD-TWO-DAY-1024x576.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/23044559/RIVN-LICD-TWO-DAY-300x169.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/23044559/RIVN-LICD-TWO-DAY-768x432.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/23044559/RIVN-LICD-TWO-DAY-1536x864.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/23044559/RIVN-LICD-TWO-DAY.png 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /></a></figure>



The stocks of these EV makers have been under pressure over the speculation of Trump&#8217;s reversal of the tax credit worth $7,500.



According to the technical analysis of daily moving averages from <a href="https://pro.benzinga.com/dashboard">Benzinga Pro</a>, Rivian&#8217;s stock is under short-term pressure with longer-term support. Whereas, Lucid&#8217;s stock is undergoing a period of consolidation. 



<h4 class="wp-block-heading">Rivian Automotive</h4>



RIVN's shares closed at $12.69 apiece on Wednesday and it was below its eight-day simple moving average of $13.66 and its 20-day average of $14 apiece. It was also below its 50-day simple moving average of $12.82.



The stock was above its 200-day simple moving average of $12.28, suggesting support at this level in the longer term.



On the other hand, the relative strength index of 43.52 suggested that the stock is in a neutral zone.



<figure class="wp-block-image size-large"><a href="https://pro.benzinga.com/dashboard"><img loading="lazy" decoding="async" width="1024" height="576" src="https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/23035530/RIVN-Tech-chart-1024x576.png" alt="" class="wp-image-746364" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/23035530/RIVN-Tech-chart-1024x576.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/23035530/RIVN-Tech-chart-300x169.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/23035530/RIVN-Tech-chart-768x432.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/23035530/RIVN-Tech-chart-1536x864.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/23035530/RIVN-Tech-chart.png 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /></a></figure>



<h4 class="wp-block-heading">Lucid Group</h4>



LCID's shares closed at $2.67 apiece on Wednesday and it was below its eight-day simple moving average of $2.96 and its 20-day average of $3.08 apiece. The 200-day simple moving average was also above the share price at $2.93, signaling a bearish trend.



However, the stock was above its 50-day simple moving average of $2.59 acting as a support. Thus, suggesting a phase of consolidation.



On the other hand, the relative strength index of 41.69 indicates that the stock is in a neutral zone.



<figure class="wp-block-image size-large"><a href="https://pro.benzinga.com/dashboard"><img loading="lazy" decoding="async" width="1024" height="576" src="https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/23035549/LICD-Tech-Chart-1024x576.png" alt="" class="wp-image-746365" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/23035549/LICD-Tech-Chart-1024x576.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/23035549/LICD-Tech-Chart-300x169.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/23035549/LICD-Tech-Chart-768x432.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/23035549/LICD-Tech-Chart-1536x864.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/23035549/LICD-Tech-Chart.png 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /></a></figure>



See Also: <a href="https://www.benzinga.com/trading-ideas/25/01/43116755/trumps-plan-to-end-7500-ev-tax-credits-could-be-devastating-for-telsa-rivals-poll-says-could-be-bullish-for-elon-musks-company">Trump&#8217;s Plan To End $7,500 EV Tax Credits Could Be &#8216;Devastating&#8217; For Telsa Rivals, Poll Says Could Be Bullish For Elon Musk&#8217;s Company</a>



Why It Matters: After his swearing-in ceremony, Trump&#8217;s <a href="https://www.benzinga.com/trading-ideas/25/01/43116755/trumps-plan-to-end-7500-ev-tax-credits-could-be-devastating-for-telsa-rivals-poll-says-could-be-bullish-for-elon-musks-company">executive order</a> canceled the target set by Joe Biden in 2021, mandating 50% of EV sales in the U.S. by 2030.



President Trump also halted unspent funds from a $5 billion EV charging infrastructure program. The administration will also reassess emissions rules requiring automakers to sell 30% to 56% electric vehicles by 2032. Additionally, Trump plans to challenge California&#8217;s zero-emission vehicle mandate, also adopted by 11 other states.



Tesla Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) CEO Elon Musk, a major Trump supporter and the world&#8217;s richest person, in an X post dated July 16, 2024, said, &#8220;Take away the subsidies. It will only help Tesla.&#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">Take away the subsidies. It will only help Tesla. Also, remove subsidies from all industries!&mdash; Elon Musk (@elonmusk) <a href="https://twitter.com/elonmusk/status/1813112958157005259?ref_src=twsrc%5Etfw">July 16, 2024</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Following this, during a post-earnings call, when Tesla reported its lowest profit margin in over five years. Musk said, &#8220;It would be devastating for our competitors and hurt Tesla slightly, but long-term, it would probably actually help Tesla.&#8221;



For Rivian, known for electric trucks, SUVs, and delivery vans, the potential repeal of tax credits and reduced EV infrastructure funding could hurt demand for its premium vehicles. Lucid, another emerging <a href="https://www.benzinga.com/trading-ideas/movers/25/01/43113872/rivian-lucid-shares-are-falling-today-whats-going-on">EV brand</a>, faces similar challenges with reduced government incentives and infrastructure support, both key to its growth.



In premarket on Thursday, RIVN was down 0.39% and LCID fell by 1.50%.



Read Next:



<ul>
<li><a href="https://www.benzinga.com/news/management/25/01/43073354/warren-buffett-openly-called-bitcoin-a-rat-poison-in-2018-7-years-later-he-is-invested-in-this-crypto-linked-stock-which-soared-27-in-2024">Warren Buffett Openly Called Bitcoin A &#8216;Rat Poison&#8217; In 2018. 7 Years Later, He Is Invested In This Crypto-Linked Stock Which Soared 27% In 2024 </a></li>
</ul>



Photo courtesy: Rivian

Market Summary

Technicals

Markets

General

LCID

RIVN

Tesla Rivals Rivian, Lucid Fall Sharply After Donald Trump Revokes Biden's EV Targets, Freezes Infra Funding: Here's What Technical Analysis Says

U.S. stock futures were mixed on Thursday following Wednesday's rally. Futures of benchmark indices were lower except Dow Jones, which was marginally higher in premarket trade.



After being propelled to the brink of a record closing high on Wednesday the S&amp;P 500 index was poised to open lower according to futures.



The 10-year Treasury note yielded 4.63%, while the two-year note yielded 4.30%. The CME Group's FedWatch <a href="https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html">tool</a> indicated a strong 99.5% probability that the Federal Reserve will hold interest rates steady at its upcoming meeting on Jan. 31, 2025.



<figure class="wp-block-table is-style-stripes"><table style="overflow:auto; height: 90px; display: block;"><tbody><tr><td>Futures</td><td>Change (+/-)</td></tr><tr><td>Nasdaq 100</td><td>-0.52%</td></tr><tr><td>S&amp;P 500</td><td>-0.20%</td></tr><tr><td>Dow Jones</td><td>0.02%</td></tr><tr><td>Russell 2000</td><td>-0.19%</td></tr></tbody></table></figure>



The SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) and Invesco QQQ Trust ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) both experienced negative premarket trading on Thursday. SPY fell 0.17% to $605.39, and QQQ declined 0.53% to $528.71, according to <a href="https://pro.benzinga.com/dashboard">Benzinga Pro</a> data.



Cues From The Last Session



U.S. stocks <a href="https://www.benzinga.com/25/01/43152748/sp-500-hits-new-record-fear-among-us-investors-eases-but-fear-greed-index-remains-in-fear-zone">rallied </a>on Wednesday, with the S&amp;P 500 reaching a new all-time high, intraday.



Netflix Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NFLX#NASDAQ">NFLX</a>) and Procter &amp; Gamble Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PG#NYSE">PG</a>) both reported better-than-expected financial results, boosting market sentiment. Abbott Laboratories (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ABT#NYSE">ABT</a>), however, missed revenue expectations.



On the economic front, the U.S. mortgage applications saw a slight increase, but this had a limited impact on market movement.



While most sectors experienced declines, particularly utilities, real estate, and energy sectors fell the most. However, technology and communication services led gains.



<figure class="wp-block-table is-style-stripes"><table style="overflow:auto; height: 90px; display: block;"><tbody><tr><td>Index</td><td>Performance (+/-)</td><td>Value</td></tr><tr><td>Nasdaq Composite</td><td>1.28%</td><td>20,009.34</td></tr><tr><td>S&amp;P 500</td><td>0.61%</td><td>6,086.37</td></tr><tr><td>Dow Jones</td><td>0.30%</td><td>44,156.73</td></tr><tr><td>Russell 2000</td><td>-0.61%</td><td>2,303.72</td></tr></tbody></table></figure>



Insights From Analysts



The performance of the &#8216;Magnificent 7&#8217; companies will drive corporate earnings growth, according to the analysts at BlackRock because these firms possess robust balance sheets, significant cash reserves, and negative net debt, enhancing their resilience to rising interest rates.



&#8220;Even in a higher-rate environment, we still think stocks can keep pushing higher as long as fundamentals stay strong,&#8221; the note stated.



BlackRock&#8217;s current stance remains risk-on as it anticipates the broadening of the AI beneficiary pool. However, it will monitor for potential triggers that may necessitate a shift in investment strategy.



According to Jason Goepfert, consultant at White Oak Consultancy and the founder of SentimenTrader, the S&amp;P 500 index was headed toward a rebound from a two-month low to a record high in just seven sessions on Wednesday. However, it didn&#8217;t close at a fresh record.



If the S&amp;P 500 hits a new record high in Thursday&#8217;s session, it will be its second fastest rebound over eight sessions, with the first quickest rebound recorded on June 24, 1998.



<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">Just barely missed yet another 97-year record in the S&amp;P 500. It was on track to cycle from a 2-month low to record high in only 7 sessions. If it does so tomorrow (8 sessions), the only date that had a quicker rebound was Jun 24, 1998.&mdash; Jason Goepfert (@jasongoepfert) <a href="https://twitter.com/jasongoepfert/status/1882172063668166940?ref_src=twsrc%5Etfw">January 22, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



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



Upcoming Economic Data



Here&#8217;s what investors will keep an eye on for the rest of the week:



<ul>
<li>On Thursday, initial jobless claims data till Jan. 18, will be released at 8:30 a.m. ET.</li>
</ul>



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



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



Stocks In Focus:



<ul>
<li>GE Aerospace (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GE#NYSE">GE</a>) was up 13.03% in premarket on Thursday ahead of its earnings before the opening bell. Analysts expect it to report quarterly earnings of $1.04 per share on revenue of $9.60 billion.</li>
</ul>



<ul>
<li>American Airlines Group Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAL#NASDAQ">AAL</a>) was up 0.75% as Wall Street expects it to report quarterly earnings of 64 cents per share on revenue of $13.40 billion before the opening bell.</li>
</ul>



<ul>
<li>Union Pacific Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UNP#NYSE">UNP</a>) was up 0.29% ahead of its earnings before the opening bell. Analysts expect it to report quarterly earnings of $2.78 per share on revenue of $6.14 billion.</li>
</ul>



<ul>
<li>Plexus Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PLXS#NASDAQ">PLXS</a>) was down 11.43% after it reported lower-than-expected first-quarter sales results and issued second-quarter revenue guidance below estimates.</li>
</ul>



<ul>
<li>Knight-Swift Transportation Holdings Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KNX#NYSE">KNX</a>) was up 5.45% in premarket as it posted better-than-expected fourth-quarter adjusted earnings results.</li>
</ul>



<ul>
<li>Vince Holding Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VNCE#NYSE">VNCE</a>) was up 47.23% as P180 acquired Sun Capital's majority stake in the company. Brendan Hoffman is expected to become CEO effective Feb. 3, replacing interim CEO David Stefko, who will remain on the board.</li>
</ul>



Commodities, Gold And Global Equity Markets:



Crude oil futures were trading lower in the early New York session by 0.13% to hover around $75.34 per barrel.



The gold spot index was down by 0.53% to $2,756.26 per ounce. The Dollar Index was up 0.01% at 108.20 level.



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



Read Next:



<ul>
<li><a href="https://www.benzinga.com/news/management/25/01/43073354/warren-buffett-openly-called-bitcoin-a-rat-poison-in-2018-7-years-later-he-is-invested-in-this-crypto-linked-stock-which-soared-27-in-2024">Warren Buffett Openly Called Bitcoin A &#8216;Rat Poison&#8217; In 2018. 7 Years Later, He Is Invested In This Crypto-Linked Stock Which Soared 27% In 2024</a></li>
</ul>



Photo courtesy: Shutterstock

Futures

Pre-Market Outlook

NFLX

PLXS

VNCE

US Stock Futures Trade Mixed After Skirting Record Highs In Last Session: GE Aerospace, American Airlines, Union Pacific In Focus

Leading cryptocurrencies dipped on Wednesday, diverging with the stock market rally, as the market expects more from the new Donald Trump administration.



<figure class="wp-block-table"><table style="overflow:auto; height: 90px; display: block;"><tbody><tr><td>Cryptocurrency</td><td>Gains +/-</td><td>Price (Recorded at 7:30 p.m. ET)</td></tr><tr><td>Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>)</td><td>-2.33%</td><td>$103,392.39</td></tr><tr><td>Ethereum (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/eth/usd">ETH</a>) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td><td>-2.13%</td><td>$3,255.66</td></tr><tr><td>Dogecoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/doge/usd">DOGE</a>)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td><td>-1.94%</td><td>$0.3612</td></tr></tbody></table></figure>



What Happened: Bitcoin steadily fell from the highs of $107,000 tapped the day before. The top cryptocurrency hit an intraday low of $102,561 overnight.



Ethereum followed a similar trajectory, losing more than 2% of its value in the last 24 hours. The second-largest cryptocurrency has suffered losses of more than 5% over the week.



Though the SEC under acting Chairman Mark Uyeda launched a<a href="https://www.benzinga.com/top-stories/25/01/43110946/sec-launches-crypto-task-force-to-establish-clear-regulatory-framework"> dedicated cryptocurrency task force</a> to frame regulations for the industry, investors have been left disappointed due to no cryptocurrency-related executive orders from Trump thus far.



In the past 24 hours, 96,027 traders were liquidated, with total liquidations at $185.56 million. Upside bets worth $133.52 million were wiped out.



Long liquidations likely caused Bitcoin's Open Interest to slip by 3.06% in the last 24 hours.



That said, a rebound to $107,000 could liquidate nearly $565 million worth of short positions.



The market sentiment cooled from "Extreme Greed" to "Greed" over the last 24 hours, according to the Crypto Fear &amp; Greed Index.



Top Gainers (24-Hours)



<figure class="wp-block-table"><table style="overflow:auto; height: 90px; display: block;"><tbody><tr><td>Cryptocurrency</td><td>Gains +/-</td><td>Price (Recorded at 7:30 p.m. ET)</td></tr><tr><td>XDC Network (XDC)</td><td>+14.13%</td><td>$0.1318</td></tr><tr><td>Worldcoin (WLD)</td><td>+8.21%</td><td>$2.28</td></tr><tr><td>Pudgy Penguins (PENGU)</td><td>+5.10%</td><td>$0.02501</td></tr></tbody></table></figure>



The global cryptocurrency market capitalization stood at $3.62 trillion, expanding by 3.62% in the last 24 hours.



Stocks surged for the second straight trading day of the week. The Dow Jones Industrial Average jumped 130.92 points, or 0.30%, to close at 44,156.73. The S&amp;P 500 lifted 0.61%, ending at&nbsp; 6,086.37, just below its record closing highs. The tech-heavy Nasdaq Composite gained 1.28% to close at 20,009.34.



Artificial intelligence players, including Nvidia Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>), surged as President Donald Trump announced a $500 billion initiative <a href="https://www.benzinga.com/etfs/sector-etfs/25/01/43135764/trumps-500-billion-stargate-ai-plan-puts-3-etfs-in-focus">to bolster the industry</a> in the U.S. Nvidia rallied 4.43% during Wednesday's session.



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



Analyst Notes: Widely followed cryptocurrency technical analyst Rekt Capital noted that Bitcoin likely entered a re-accumulation phase before trend continuation to new all-time highs.



"The last time Bitcoin experienced re-accumulation was in the post-halving re-accumulation phase. Bitcoin rallied +46% upon breakout from that phase," the analyst added.



A similar move could propel the apex cryptocurrency to nearly $150,000, Rekt Capital projected.



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true"><a href="https://twitter.com/hashtag/BTC?src=hash&amp;ref_src=twsrc%5Etfw">#BTC</a> Bitcoin is likely experiencing another Re-Accumulation period before trend continuation to new All Time Highs The last time Bitcoin experienced Re-Accumulation was in the Post-Halving Re-Accumulation phase Bitcoin rallied +46% upon breakout from that phase If Bitcoin is… <a href="https://t.co/66cu6CjZmS">pic.twitter.com/66cu6CjZmS</a>&mdash; Rekt Capital (@rektcapital) <a href="https://twitter.com/rektcapital/status/1882105114707587223?ref_src=twsrc%5Etfw">January 22, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Popular cryptocurrency trader Michaël van de Poppe made optimistic predictions for Ethereum, owing to <a href="https://www.benzinga.com/25/01/43088676/trump-backed-world-liberty-financial-bags-47-million-each-of-ethereum-wrapped-bitcoin-to-honor-the-new-president">large purchases</a> by World Liberty Financial, a decentralized finance platform backed by Trump.



"The fact that World Liberty has been buying so much ETH makes me more bullish on that particular asset," he said. "I think it&#8217;s going to start and make a great revival through 2025."



<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 fact that World Liberty has been buying so much <a href="https://twitter.com/search?q=%24ETH&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$ETH</a> makes me more bullish on that particular asset. I don&#39;t think <a href="https://twitter.com/search?q=%24ETH&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$ETH</a> is the <a href="https://twitter.com/search?q=%24ADA&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$ADA</a> of this cycle. I think it&#39;s going to start and make a great revival through 2025.&mdash; Michaël van de Poppe (@CryptoMichNL) <a href="https://twitter.com/CryptoMichNL/status/1882078516847538192?ref_src=twsrc%5Etfw">January 22, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Photo by Avi Rozen on Shutterstock



Read Next:    



<ul>
<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>
</ul>

$DOGE

Bitcoin, Ethereum, Dogecoin Drop Amid Stock Rally, Cooling Investor Sentiment On Trump: Analyst Projects BTC At $150K If History Repeats

Gary Black has credited Netflix Inc.'s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NFLX#NASDAQ">NFLX</a>) <a href="https://www.benzinga.com/news/earnings/25/01/43114866/netflix-q4-earnings-record-subscribers-nfl-squid-game-push-past-highest-expectations">fourth-quarter performance</a> to its live sports strategy, original content, and price hike that saw minimal customer attrition.



What Happened: The Future Fund LLC managing partner took to X on Wednesday and highlighted Netflix's ability to attract massive audiences with its live sports and entertainment offerings.



&#8220;$NFLX (+10.5% AH) crushed 4Q net streaming adds (+18.9M vs +9.2M est) behind the strength of live sports and Squid Games 2,&#8221; he stated.



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true"><a href="https://twitter.com/search?q=%24NFLX&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$NFLX</a> (+10.5% AH) crushed 4Q net streaming adds (+18.9M vs +9.2M est) behind the strength of live sports and Squid Games 2. 2025/1Q Rev and EPS guides light vs ests. 4Q: &#8211; Revs $10.25B vs $10.11B est &#8211; EPS $4.27 vs $4.18 est &#8211; Paid members 301.6M vs 290.9M 1Q guide: &#8211; Rev…&mdash; Gary Black (@garyblack00) <a href="https://twitter.com/garyblack00/status/1881813710328443019?ref_src=twsrc%5Etfw">January 21, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



See Also: <a href="https://www.benzinga.com/news/global/25/01/43088582/gary-black-questions-elon-musks-take-on-ev-credit-removal-after-tesla-sales-drop-in-europe-not-sure-how-the-math-works">Gary Black Questions Elon Musk&#8217;s Take On EV Credit Removal After Tesla Sales Drop In Europe: &#8216;Not Sure How The Math Works&#8217;</a>



Black noted that the Mile Tyson&#8211;Jake Paul fight and Beyoncé's Christmas show as pivotal in delivering 18.9 million net subscriber adds, more than double the expected 9.2 million.



"When you have 65 million people go to Netflix for the Tyson-Paul fight and 25 million for Beyoncé&#8217;s halftime show, it was clear Netflix was going to get huge net subscriber adds," Black said.



The prominent investor also pointed out that Netflix's 14% price increase contributed significantly to its revenue growth while maintaining low customer attrition.



<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">When you have 65M people go to <a href="https://twitter.com/search?q=%24NFLX&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$NFLX</a> for Mike Tyson-Jake Paul fight, and 25M people for Beyonce halftime show on Christmas, it was clear NFLX was going to get huge net subscriber adds (+18.9M vs +9.2M exp). Add to that a +14% avg price increase with very low attrition, and it's…&mdash; Gary Black (@garyblack00) <a href="https://twitter.com/garyblack00/status/1882062783635722505?ref_src=twsrc%5Etfw">January 22, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Why It Matters: Netflix&#8217;s fourth-quarter results have been described as one of the best in the company&#8217;s history.



The streaming giant brought its total paid memberships to 301.63 million compared to 290.9 million estimated. It also reported $10.25 billion in revenue, beating the expected $10.11 billion, and an EPS of $4.27, exceeding the projected $4.19.&nbsp;



However, Netflix's first-quarter 2025 guidance slightly missed expectations, with forecasted revenue of $10.42 billion (vs. $10.48 billion expected) and EPS of $5.58 (vs. $6.01 expected).



Analysts have <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">adjusted their price targets</a> for Netflix, with Macquarie analyst Tim Nollen raising the target from $965 to $1,150, and KeyBanc analyst Justin Patterson increasing it from $1,000 to $1,100.



Netflix has also surpassed the <a href="https://www.benzinga.com/general/education/25/01/43145703/netflix-worth-more-than-disney-paramount-comcast-fox-combined">combined market cap</a> of entertainment giants like Walt Disney Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIS#NYSE">DIS</a>), Paramount Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PARA#NASDAQ">PARA</a>) and Comcast Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CMCSA#NASDAQ">CMCSA</a>).



Price Action: Black predicted a 20% upside for Netflix on Wednesday. During regular trading, the stock gained 9.69%, though it edged down 0.49% in after-hours trading.



Despite the slight after-hours dip, NFLX has delivered impressive gains this year, rising 7.59% year-to-date and an astounding 96.41% over the past 12 months, according to <a href="https://pro.benzinga.com/dashboard">data from Benzinga Pro</a>.



Netflix currently has a Relative Strength Index (RSI) of 67, indicating that the stock is in neutral territory.



<figure class="wp-block-image size-large"><a href="https://www.benzinga.com/quote/NFLX/analyst-ratings"><img decoding="async" src="https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/22210933/Screenshot-2025-01-23-at-7.39.26%E2%80%AFAM-1024x375.png" alt="" class="wp-image-745822"/></a></figure>



Photo Courtesy: Shutterstock.com



Read Next:



<ul>
<li><a href="https://www.benzinga.com/markets/asia/25/01/43088007/nvidia-apple-supplier-tsmc-halts-production-as-6-4-magnitude-earthquake-strikes-taiwan" target="_blank" rel="noreferrer noopener">Nvidia, Apple-Supplier TSMC Halts Production As 6.4 Magnitude Earthquake Strikes Taiwan</a></li>
</ul>



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

Entertainment

CMCSA

PARA

Netflix Crushed Q4 Thanks To Sports, Squid Game, Says Gary Black: Analyst Highlights Low Attrition Despite Price Hikes, Predicts Stock Upside

SK hynix Inc. reported financial results for 2024, with revenues surging 102% to 66.19 trillion won ($46.34 billion), driven by explosive demand for artificial intelligence memory products. 



The South Korean semiconductor manufacturer, a critical supplier to Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>), transformed from a loss-making position in 2023 to delivering a robust net profit of 19.79 trillion won ($13.84 billion).



The fourth-quarter performance highlighted the company&#8217;s strategic pivot, with revenues climbing 75% year-over-year to 19.7670 trillion won ($13.7 billion) and operating profit skyrocketing 2,236% to 8.08 trillion won ($5.66 billion). High-bandwidth memory emerged as a key growth driver, representing over 40% of total DRAM revenue and underscoring the company&#8217;s critical role in the AI semiconductor supply chain.



CFO Kim Woohyun emphasized the company&#8217;s profitability-first approach, noting &#8220;fundamental improvements&#8221; in high value-added product mix. The company plans continued investment in advanced memory technologies like HBM3E and HBM4, targeting growing demand from global technology leaders investing heavily in AI infrastructure.



Financial improvements were complemented by balance sheet optimization, with cash equivalents increasing 5.2 trillion won ($3.64 billion) and debt reducing 6.8 trillion won ($4.76 billion) in 2024. SK hynix also raised its annual dividend by 25% to 1,500 won ($1.05) per share, signaling confidence in its strategic positioning.



Price Action: SK Hynix stock is trading at 218,500 won ($151.97) on Thursday, down 3.10% as of 10:38 a.m. local time on the South Korea Exchange. Over the past year, the stock has surged by 55.18%, according to <a href="https://pro.benzinga.com/dashboard">data from Benzinga Pro</a>.



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

Nvidia Supplier SK Hynix Soars 102% In Revenue, But Stock Drops Despite AI Memory Boom

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



U.S. stocks settled higher on Wednesday, with the S&amp;P 500 surging to a new all-time high during the session.



Netflix Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NFLX#NASDAQ">NFLX</a>) reported stronger-than-expected fourth-quarter financial results on Tuesday. Procter &amp; Gamble Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PG#NYSE">PG</a>) posted better-than-expected second-quarter financial results. Abbott Laboratories (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ABT#NYSE">ABT</a>) reported fourth-quarter sales of $10.97 billion, up 7.2% year over year, missing the consensus of $11.01 billion.



On the economic data front, U.S. mortgage applications rose 0.1% from the previous week in the week ending Jan. 17.



Most sectors on the S&amp;P 500 closed on a negative note, with utilities, real estate, and energy stocks recording losses on Wednesday. However, information technology and communication services stocks bucked the overall market trend, closing the session higher.



The Dow Jones closed higher by around 131 points to 44,156.73 on Wednesday. The S&amp;P 500 rose 0.61% to 6,086.37, while the Nasdaq Composite climbed 1.28% at 20,009.34 during Wednesday's session.



Investors are awaiting earnings results from GE Aerospace (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GE#NYSE">GE</a>), American Airlines Group Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAL#NASDAQ">AAL</a>), and Union Pacific Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UNP#NYSE">UNP</a>) today.



What is CNN Business Fear &amp; Greed Index?



At a current reading of 43.3, the index remained in the &#8220;Fear&#8221; zone on Wednesday, versus a prior reading of 41.5.



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



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S&P 500 Hits New Record As Netflix Reports Strong Results: Investor Sentiment Improves But Greed Index Remains In 'Fear' Zone

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>



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

Electronic Arts Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/EA#NASDAQ">EA</a>) shares are moving lower in after-hours Wednesday after the company reported preliminary financial results <a href="https://www.benzinga.com/pressreleases/25/01/b43143872/electronic-arts-pre-announces-preliminary-q3-fy25-results">for the third quarter</a>.



What Happened: EA said it previously anticipated mid-single-digit growth in live services net bookings, but now projects a mid-single-digit decline largely due to a slowdown in Global Football.



The Global Football franchise experienced a slowdown in the quarter as early momentum faded, the company said. Separately, Dragon Age only engaged approximately 1.5 million players during the quarter, about 50% lower than the company&#8217;s expectations. 



Due to the unexpected slowdown, EA reported preliminary results for the third quarter and adjusted its full-year outlook. EA now expects third-quarter revenue of $1.883 billion versus estimates of $2.507 billion, according to <a href="http://pro.benzinga.com">Benzinga Pro</a>. The company anticipates third-quarter earnings of $1.11 per share, in line with analyst estimates. 



EA now expects net bookings of approximately&nbsp;$2.215 billion&nbsp;in the third quarter. The company provided a net bookings range of&nbsp;$7 billion&nbsp;to&nbsp;$7.15 billion&nbsp;for fiscal year 2025.



&#8220;During&nbsp;Q3, we continued to deliver high-quality games and experiences across our portfolio; however, Dragon Age and EA SPORTS FC 25 underperformed our net bookings expectations,&#8221; said Andrew Wilson, CEO of EA. 



&#8220;This month, our teams delivered a comprehensive gameplay refresh in addition to our annual Team of the Year update in FC 25; positive player feedback and early results are encouraging. We remain confident in our long-term strategy and expect a return to growth in FY26, as we execute against our pipeline.&#8221;



EA will report its full financial results for the third quarter after the market close on Feb. 4.



EA Price Action: <a href="http://benzinga.com/quote/ea">EA shares</a> were down 8.56% at $130.16 in after-hours trading at the time of publication, per <a href="http://pro.benzinga.com">Benzinga Pro</a>.



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