Business and Tech News - 4.26.24

Author

Skool Projekt Staff
April 26, 2024

GDP Growth Slows to 1.6%, Below Expectations

The U.S. GDP grew at a 1.6% annual rate in the first quarter, falling short of the forecasted 2.4%. Consumer spending increased by 2.5%, which was lower than both the previous quarter and expectations. The personal consumption expenditures index, a key indicator of inflation, climbed 3.4%, marking its highest rise in a year. In response, the market sentiment turned negative, with Dow futures plummeting over 400 points.

Explore Further

 

Southwest Airlines Is Leaving Some Cities

Southwest Airlines announced it will cease operations at four airports including Bellingham, Cozumel, Syracuse Hancock, and Houston's George Bush Intercontinental following increased Q1 losses. The airline is facing operational and financial challenges due to delays in jet deliveries from Boeing. Despite achieving record first-quarter revenue, Southwest still reported a significant loss of $218 million, an increase from the previous year. Additionally, the airline has drastically reduced its expected jet deliveries for the year from 79 to just 20.

Explore Further

 

Micron Gets $6.1 Billion From Biden To Build Facilities

The US government plans to provide Micron Technology Inc. with $6.1 billion in grants and up to $7.5 billion in loans to support the construction of new factories. Micron aims to build four factories in New York and one in Idaho, marking its most significant U.S. manufacturing expansion in over two decades. These funds, sourced from the 2022 Chips and Science Act, will be distributed following due diligence and the achievement of specific construction and production milestones. This financial support is intended to enhance U.S. semiconductor manufacturing capabilities and reduce dependency on Asian suppliers.

Explore Further

 

Comcast Beats Earnings, Loses More Broadband Subscribers

Comcast surpassed Q1 earnings expectations even though it continued to lose broadband subscribers. Financial challenges in its media segment were exacerbated by losses from its streaming service, Peacock, which countered gains in other revenues. The company's theme parks experienced a 3.9% decrease in EBITDA, attributed to rising operating costs, while Peacock saw a significant increase, adding three million subscribers to reach a total of 34 million. Looking forward, Comcast anticipates a significant boost in advertising revenue from the upcoming Olympics broadcasts.

Explore Further

 

Microsoft-Backed Rubrik Debuted on NYSE

Rubrik Inc. launched its initial public offering on the New York Stock Exchange, setting the price at $32 per share and achieving a valuation of $5.6 billion by selling 23.5 million shares to raise $752 million. The stock debuted strongly, opening at $38.60, reflecting robust investor enthusiasm for technology IPOs. Despite a net loss of $354 million in the last fiscal year, the company's revenue was predominantly subscription-based, comprising 91%. CEO Bipul Sinha highlighted that the timing of the IPO was strategically chosen based on market conditions and the company's preparedness.

Explore Further

 

 

Here’s how the markets closed yesterday:

For more in-depth market research, check out the Ticker Tea Newsletter.

 

 

* Was this forwarded to you? Subscribe

** Interested in advertising with Skool Projekt? Click here

 

Disclaimer: This content is not intended as financial guidance. The purpose of this newsletter is purely educational, and it should not be interpreted as an encouragement to engage in buying, selling, or making any financial decisions regarding assets. Exercise caution and conduct your own research before making any investment choices.