TLDR

MARKET RECAP → US stocks rose Wednesday as major indexes clawed back some of yesterday’s losses on the heels of a hotter-than-expected inflation report. Bitcoin (BTC) extended its ETF-inspired rally, rising above $51K during the day… $51K!

LYFT'S DECIMAL POINT DEBACLE → 🚀 Lyft's (LYFT) CEO eats humble pie after a "zero" typo inflated margin forecasts, sparking a wild stock ride but ending on a high note with solid Q4 earnings.

INSTACART TRIMS STAFF → Instacart slices 7% of its workforce, aiming for efficiency amid a strategic shuffle, proving even unicorns need to trim their horns in the tech jungle. 🛒

UBER TURNS PROFIT → 🚗 Uber (UBER) shifts gears into profitability, announcing a $7 billion share buyback, signaling a triumphant lap after its first profitable year—a bullish move that revs up confidence among investors and sets a turbocharged pace for the future.

MUSK VERSUS DELAWARE  → 🔥 Elon Musk's spat with Delaware over a voided $56B pay package turns into a corporate governance showdown, hinting at a seismic shift in where companies call home and how they pay their chiefs.

Sean Horgan

Head of Investor Relations @MoneyLion

$shorgan*

Today’s S&P 500 Heatmap

Notable Earnings Reports This Week

Today’s Top News

LYFT'S DECIMAL POINT DEBACLE

📉 Decimal Point Debacle: Lyft's (LYFT) shares skyrocketed over 60% after a press release boasted a 5% margin expansion for 2024, a figure that was ten times the actual forecast of 0.5%. CEO David Risher owned up to the "super frustrating" blunder, which inflated expectations and briefly ballooned the company's market cap by over $2 billion.

🔍 Pls Fix: An immediate correction and swift reaction followed the earnings call revelation, with CFO Erin Brewer clarifying the accurate margin increase. Despite the correction, Lyft's stock remained up, buoyed by earnings that still surpassed analyst predictions, illustrating the market's thirst for any hint of profitability in the perennially loss-making ride-hailing sector.

💼 A Great Quarter Nonetheless: Lyft reported a 4% year-over-year revenue increase to $1.22 billion and a 14% annual jump in gross bookings to $13.8 billion. The incident prompted a reevaluation from analysts, with MoffettNathanson upgrading Lyft to neutral from sell, acknowledging the company's improved take-rates and cost discipline, and humorously noting, "Typos aside, we too are guilty of a mistake."

INSTACART TRIMS STAFF

📉 Layoffs Announced: Instacart revealed plans to lay off 250 employees, approximately 7% of its workforce, as part of a company-wide restructuring effort. This move aims to streamline operations and improve efficiency in a competitive market.

🔄 Strategic Reorganization: The layoffs are part of a broader strategy to realign the company's resources with its long-term goals. Instacart is focusing on areas that promise growth and sustainability, despite the challenging economic landscape.

🚀 Future Focus: Despite the job cuts, Instacart remains optimistic about its future, emphasizing investment in technology and customer experience to drive future growth. The company is adapting to the rapidly changing grocery delivery market to maintain its competitive edge.

UBER TURNS PROFIT

🚀 Uber rides into profit-ville: For the first time, Uber (UBER) didn't just drop off passengers; it also delivered profits. The ride-sharing giant announced a share buyback of $7 billion, marking a milestone year where they finally saw more green lights than red on their financial dashboard.

💰 Cash splash on shares: Swimming in the pool of profitability, Uber decided it was time to treat its shareholders to a share buyback spree. This move not only underscores their financial health but also signals confidence in the company's future road map.

🔮 Looking down the road: With this turn of events, Uber not only puts extra gas in the tank for future journeys but also sends a clear signal to competitors and investors: buckle up, because Uber's ride is far from over.

MUSK VERSUS DELAWARE

🚀 Elon Musk declared war on Delaware after a judge voided his $56 billion compensation package, the largest in public corporate history. Musk's reaction was swift, advising against incorporating in Delaware and announcing plans to move Tesla's (TSLA) incorporation to Texas, and Neuralink's to Nevada. This bold move underscores Musk's influence and could signal a shift in how companies approach incorporation and governance.

⚖️ The Delaware court's decision has far-reaching implications for corporate governance, spotlighting the importance of board independence and negotiation processes in executive compensation. The ruling criticized Tesla's board for its lack of negotiation and independence, setting a precedent that may force boards to ensure real independence and more rigorous compensation negotiation processes, potentially ending the era of outsized CEO pay packages.

🌐 Despite Musk's campaign, experts are skeptical of a mass exodus from Delaware, citing its business-friendly laws, specialized courts, and extensive body of case law. However, Musk's high-profile challenge and the rise of business courts in other states like Texas could pressure Delaware to maintain its competitive edge as the preferred domicile for corporations.

Keep Reading

Airbnb reports better-than-expected revenue and beats on guidance (CNBC)

House Republicans impeach Homeland Security Secretary Mayorkas (CNBC)

‘Anyone But You’ could spark a rom-com renaissance in Hollywood (CNBC)

Here’s what Meta CEO Mark Zuckerberg has to say about the Apple Vision Pro (CNBC)

Surging restaurant prices are making dining out a luxury (CNN)

European travel giant Tui will leave the London Stock Exchange (CNN)

AI-written dating app bios are all the rage. Is romance dead? (Mashable)

Biohacker Bryan Johnson ‘loves’ the hate from critics like Elon Musk: ‘It’s really humorous that they want to put me on trial’ (Fortune)

McDonald’s CEO sees a McFlation ‘battleground’ with customers revolting over $8 chicken sandwiches and $3 hash browns (Fortune)

Ditch the financial drama and get the benefits you actually want—freedom, confidence, and stress-free living (ML)

Tax Filing 101: Everything You Need To Know (ML)

AI Found Him A Date. ChatGPT Told Him To Propose. Now They're Getting Married (Forbes)

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

Our Favorite Tools & Resources

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• Vimcal – Lightning-fast calendar and AI scheduling assistant

• Dataroma – Track stock picks and portfolios of legendary value investors such as Warren Buffett

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