~Estimated Read Time: 5 Minutes
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Hey Tea Sippers 👋,
TGIF! Remember the days we used to say that, wow, nostalgic.
Anyways, new developments have begun to surge as Luana Pinheiro has become the first female sportswoman in Latin America to receive her entire salary in Bitcoin, huge!
In other news, edible utensils and cups have become something to keep an eye on. Major brands such as TJ Maxx, Marshalls, and Home Goods, are selling edible spoons. Disney and other amusement parks are offering edible straws, and Lavazza is serving tasty coffee cups, hmmmmm.
Well, we are going to send you off. We hope that you enjoy the stories we have for you today. Grab your tea and start sipping!
Cheers! ☕️
1. Big tech companies have posted their quarterly earnings reports, displaying the strong vs. the weak.
The tech Super Bowl week has arrived as many investors and individuals sat back and watched as they awaited the big earnings reports. Stats from our favorite companies have been posted ranging from (FAANG) companies to companies like Etsy, Chipotle, etc. But, what did we see from the FAANG?
Meta (Facebook)(Via CNBC)
The social guru and data retriever, Meta reported its first-ever quarterly decline in revenue. A large reason for the decline is a result of their big bet on the metaverse, which has dropped their expected revenue in hopes for the future.
Stats:
Earnings: $2.46 per share vs. $2.59 per share expected, according to Refinitiv
Revenue: $28.82 billion vs. $28.94 billion expected, according to Refinitiv
Daily Active Users (DAUs): 1.97 billion vs 1.96 billion expected, according to StreetAccount
Monthly Active Users (MAUs): 2.93 vs 2.94 billion expected, according to StreetAccount
Average Revenue per User (ARPU): $9.82 vs. $9.83 expected, according to StreetAccount
Apple (Via Yahoo):
Big Brother, Apple reported record numbers this quarter as they beat expectations due to heavy iPhone and wearable technology sales.
Also news has been passed by that they will be entering the automotive industry by 2030, things could get interesting.
Stats:
Revenue: $83 billion versus $82.7 billion expected
Earnings per share: $1.20 versus $1.16 expected
iPhone revenue: $40.7 billion versus $38.9 billion expected
iPad revenue: $7.22 billion versus $6.9 billion expected
Mac revenue: $7.4 billion versus $8.4 billion expected
Wearables revenue: $8.1 billion versus $8.8 billion expected
Services revenue: $19.6 billion versus $19.7 billion expected
Amazon (Via CNBC):
The one-stop shop for pretty much everything posted some great numbers for their shareholders as their cloud and ad services continue to prosper and they beat revenue expectations.
Stats:
EPS: Loss of 20 cents
Revenue: $121.23 billion vs. $119.09 billion expected, according to Refinitiv
Amazon Web Services: $19.7 billion vs. $19.56 billion expected, according to StreetAccount
Advertising: $8.76 billion vs. $8.65 billion expected, according to StreetAccount
Netflix (Via CNBC):
Your once favorite streaming service looks to be in a panic as they look for alternative ways to maintain customer retention, and keep their users engaged. They saw a decline in revenue and net subscribers faltered.
Stats:
EPS: $3.20 vs $2.94 per share, according to Refinitiv.
Revenue: $7.97 billion, vs. $8.035 billion, according to a Refinitiv survey.
Global paid net subscribers: A loss of 970,000 subscribers vs. expectations of a loss of 2 million, according to StreetAccount estimates.
Alphabet (Google) (Via CNBC) :
The digital ad machine posted numbers a little under the expected earnings but plans to scale as cloud and ad revenue continue to increase drastically.
Stats:
Earnings per share (EPS): $1.21 vs $1.28 expected, according to Refinitiv
Revenue: $69.69 billion vs $69.9 billion expected, according to Refinitiv
YouTube advertising revenue: $7.34 billion vs. $7.52 billion expected, according to StreetAccount
Google Cloud revenue: $6.28 billion vs. $6.41 billion expected, according to StreetAccount
Traffic acquisition costs (TAC): $12.21 billion vs. $12.41 billion expected, according to StreetAccount
Side Note- Oil
Shell reports massive profits of $11.5 billion for the quarter up 2x from last year’s profits of $5.5 billion.
The Big Gulp ☕️:
The FAANG or now what we call MAAAN gave everyone insight into how we can foresee these next few months. It looks as if some big drivers are ads, cloud infrastructure, and this quarter especially, oil. In other categories such as streaming and hardware, it looks like the competition has become steep, and in other areas there has yet to become a sizeable market. As of right now, it looks like Apple is leading the charge with Amazon right behind it. Google falls in 3rd, Netflix in fourth as they face declines, and lastly, Meta faces declines as they go through a major transition. Who will come out victorious in the next few quarters? We shall see as time progresses.
2. Coinbase meets its biggest enemy, the SEC.
Many pro-crypto people feared this day would come, while many prayed for it. Recently the government has started to look for ways to quickly implement rules and regulations for the crypto space as large amounts of funds were lost in the past bear market. More specifically Coinbase is being cracked down on by the SEC. Why?
There are claims that Coinbase has been letting users trade unregistered securities.
They were hit with an insider trading case, recently.
Results:
The stock lost more than 75% of it’s value for the year.
Shares of the stock lost more than 21% on Tuesday.
Why? What’s the TL;DR?
Pretty much, Coinbase is being hit by the SEC with charges that they are trading securities (investment vehicles) that have not been registered by the SEC. This means that technically, anyone involved or soliciting in the active trading of these assets has also partaken as well (illegal).
This raises many major concerns because many individuals have been trading and utilizing Coinbase’s platforms, so are they subject to this as well?
In addition, Coinbase more recently got hit with an insider trading scandal, which does not bode well with these new allegations. It is estimated that 9/25 of the tokens traded in this scheme were securities as well.
The Big Gulp ☕️:
Coinbase and other Cefi players in the crypto space are starting to get hit with regulation from the SEC and CFTC as they are trying to crack down on illicit activity and provide guardrails to the space. After the collapse of many of the big Cefi companies, we will begin to see more structure put in place. Now, for Coinbase we are yet to be sure, what will take place since they are heavily operating in US jurisdiction, but time will tell soon what the government has in store for the space.
Extra Tea ☕️
Merge- Ethereum will be merging from a proof of work to a proof of stake consensus model.
Disney- Polygon has joined Disney’s innovation program to lead the charge in crypto innovation.
Fed- The fed raises interest rates another 75 BPS or .75%.
Outbreak- The US will be releasing 700,000 additional monkeypox vaccines as the outbreak spreads.
Tea Pods ☕️
Here’s a fun pod by Bloomberg Crypto with Justin Blau, the CEO of Royal about the decentralized music industry, and how bands such as the Chainsmokers are using it to give their fans a cut of their royalties by utilizing NFTs. They dive more specifically into how decentralized music can be applicable ubiquitously.
Listen Here.
Sencha Tea Fact of the Week ☕️
Since you made it this far!
If you or a friend know anyone interested in the space, feel free to recommend them.
And, if you have any questions, feel free to contact me: Kristian Lamarre.
Cheers!☕️