During the 17th century, the Dutch East India Company (VOC) became the world's first publicly traded company when it issued shares on the Amsterdam Stock Exchange in 1602. This was the first time in history that investors could buy and sell shares of a company, effectively creating the foundation for modern stock markets. At its peak, the VOC was worth more than Apple, Microsoft, and Amazon combined in today's dollars!
Market Wrap
On Wednesday, February 12, 2025, U.S. stock markets experienced declines following the release of higher-than-expected inflation data. The unexpected rise in inflation to 3% in January, up from 2.9% in December, was driven by significant increases in food and energy costs.
This development dampened expectations for Federal Reserve interest rate cuts in the near future, leading to a rise in Treasury yields and a strengthening of the U.S. dollar.
In the political arena, President Donald Trump announced upcoming U.S.-Russia peace talks concerning Ukraine, notably excluding European participation.
This move surprised European officials and introduced additional geopolitical uncertainty.
These factors combined to create a cautious atmosphere in the markets, as investors weighed the implications of rising inflation and geopolitical developments on the economic outlook.
Gilead Sciences saw its shares rise by 7.5% after reporting better-than-expected earnings and revenue. The positive results were largely attributed to booming sales of its HIV treatments.
CVS Health reported fourth-quarter sales and profit that exceeded analysts' expectations. The company's strong performance was driven by growth in its pharmacy and consumer wellness segments. CEO David Joyner highlighted the robust results amid a challenging healthcare environment.
Shares of Arista Networks declined by 6.2% following reports that the company's chief technology officer recently sold a significant stake. Insider sales often raise concerns among investors about a company's future performance, leading to a drop in share price.
Westinghouse Air Brake Technologies Corporation (Wabtec) fell 9.1% after missing quarterly sales and profit forecasts. The company also issued lower-than-expected full-year earnings guidance, citing pressures on freight demand and increased costs.
Waters Corporation dropped 5.8% despite exceeding fourth-quarter expectations. The company provided first-quarter guidance that fell below analysts' estimates and noted negative impacts from currency exchange rates due to the strong U.S. dollar.
Super Micro Computer's stock rose 2.8% despite missing quarterly expectations and lowering its fiscal 2025 sales outlook. The company set higher revenue targets for fiscal 2026, which may have bolstered investor confidence.
Upstart Holdings Inc. surged 32% after reporting stellar Q4 2024 earnings. The company posted $219 million in revenue (up 56% YoY) and an EPS of $0.26, far exceeding analyst expectations. Loan originations soared 89%, with transaction volume reaching $2.11 billion. Upstart also raised its 2025 revenue outlook to $1 billion, surpassing estimates. In response, J.P. Morgan upgraded the stock from “Underweight” to “Neutral”, increasing its price target to $79. The results highlight Upstart’s strong momentum in AI-driven lending and its expanding market position.
Lyft's stock fell sharply by 7.9% after reporting below-estimate bookings. The disappointing performance raised concerns about the company's growth prospects, leading to a decline in its share price.
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