TLDR

MARKET RECAP → Stocks closed the week on a high note with the Dow Jones (DIA) reaching a fresh record high of over 39,000. All three major averages had winning weeks as large technology stocks continued to propel markets to new heights.

CARVANA CRUISES TO PROFIT →🚀 Carvana (CVNA) posts its first annual profit after slashing $1B in debt, with shares surging and a bright Q1 profit forecast signaling a turnaround.

REDDIT IPO WINDFALL→ 🚀 OpenAI's Sam Altman is set to cash in on Reddit's IPO, highlighting his strategic early investments and vision for community ownership in tech.

WBD MISSES MARK → 📉 Warner Bros. Discovery (WBD) misses Q4 targets amid ad slump and streaming challenges, yet eyes future growth with Max profitability and sports JV optimism.

Sean Horgan

Head of Investor Relations @MoneyLion

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Today’s Top News

CARVANA CRUISES TO PROFIT

🚗 Debt Deal Drives Gains: Carvana (CVNA) announced its first annual profit, buoyed by a strategic agreement with bondholders to slash its debt by $1 billion, propelling its shares up 20% in after-hours trading. The company's adept navigation through financial restructuring underscored its resilience amidst the fluctuating used car market.

💰 Q1 Outlook Shines: The online used car retailer projected a Q1 adjusted core profit "significantly above" $100 million, signaling a robust start to 2024. This forecast reflects Carvana's successful adjustment to market dynamics post-pandemic and its ongoing efforts to optimize operations and inventory management.

📈 Sales and Profitability Up: With net income of $450 million for 2023, including a substantial gain from debt restructuring, Carvana is on an upward trajectory. The company anticipates a slight increase in retail units sold and a stable retail gross profit per unit for the first quarter, building on a nearly sevenfold surge in the fourth quarter.

REDDIT IPO WINDFALL

🚀 Altman's Strategic Stake: OpenAI CEO Sam Altman is poised to reap millions from Reddit's IPO, holding 9.2% of voting power thanks to early investments dating back to 2014. His involvement with Reddit began with a $50 million Series B funding round, reflecting his long-term belief in the platform's value.

💼 Investment Portfolio: Beyond Reddit, Altman has a history of lucrative bets on startups like Asana and Instacart, showcasing his knack for identifying promising ventures. His tenure as Y Combinator president further expanded his exposure to emerging companies, cementing his reputation as a savvy investor.

📈 Future Focused: With Reddit's public debut, Altman's focus shifts towards enhancing OpenAI's adoption, including the widely used ChatGPT. Reddit's IPO strategy includes offering shares to its user base, aligning with Altman's vision of increasing community ownership in the platforms they help build.

WBD MISSES MARK

📉 Earnings and Revenue Fall Short: Warner Bros. Discovery (WBD) reported a Q4 net loss of $400 million, missing analyst expectations for both profit and revenue as advertising revenue slumped 14% and distribution revenue dropped 4%. The company's shares fell 12% in early trading following the announcement.

💰 Free Cash Flow Concerns: Despite generating $3.31 billion in free cash flow for Q4 and ending 2023 with $6.16 billion, up 86% from the previous year, WBD declined to provide free cash flow guidance for 2024. This decision reflects anticipated headwinds from increased content spending post-writers' and actors' strikes.

📺 Max Turns Profitable: WBD's flagship streaming service, Max, ended 2023 profitable, with an adjusted EBITDA of $103 million, outperforming streaming divisions of legacy media rivals. The company projects Max to be profitable in 2024, despite expected losses in the first half due to ramped-up content spending.

Keep Reading

Intuitive Machines jumps in wild trading after moon landing (CNBC)

Block shares surge after company announces surprise profit (CNBC)

Nvidia briefly surpasses $2 trillion in market cap during intraday trading (CNBC)

Sunnova CEO tries to reassure rattled investors after stock plunged 26% in worst day since March 2020 (CNBC)

The hollowing out of Vice and BuzzFeed marks the end of the digital media revolution (CNN)

FTC fines cybersecurity company Avast $16.5 million for tracking and selling user data (CNN)

Pharmacies across America are having trouble processing some prescriptions because of a cyberattack (CNN)

How Boeing broke down: Inside the series of leadership failures that hobbled the airline giant (Forbes)

And if you want more, be sure to check out the MoneyLion blog for tips, hacks and all things money. (MoneyLife)

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