By breaking down physical barriers, consumer internet businesses are reshaping how people shop, connect, learn, and play. These themes have enabled rapid growth for the industry, which has posted a 45.7% gain over the past six months compared to 16.8% for the S&P 500.
SAN FRANCISCO (Reuters) -Chip tech provider Arm Holdings said on Wednesday it will no longer meet the top end of its previous full-year guidance, but slightly topped Wall Street's current-quarter expectations. Since Arm went public in 2023, it has more than tripled its market value as investors bet it would see a significant share of the artificial intelligence boom that propelled Nvidia to become the world's most valuable company. But Arm does not typically enjoy growth spurts in boom times because it makes money more indirectly from AI than chip sellers, by steadily raising licensing fees for its technology and royalties for each chip other companies sell.
Consumer discretionary businesses are levered to the highs and lows of economic cycles. This volatility leads to big swings in stock prices that have worked in their favor recently - over the past six months, the industry has returned 20.1% and beat the S&P 500 by 3.2 percentage points.
Regarded as defensive investments, consumer staples stocks are generally safe bets in choppy markets. The flip side is that they frequently fall behind growth industries when times are good, and this was the reality over the past six months as the sector’s flat performance trailed the S&P 500’s 16.8% gain.
White House crypto czar David Sacks said the industry underwent years of 'persecution,' a message resonating with crypto executives.
Uber's fourth-quarter operating profit rose 18% to $770 million but fell well short of the $1.2 billion forecast by analysts, hitting shares.
Pet company Central Garden & Pet (NASDAQ:CENT) reported Q4 CY2024 results topping the market’s revenue expectations, with sales up 3.5% year on year to $656.4 million. Its GAAP profit of $0.21 per share was significantly above analysts’ consensus estimates.
Vocational education Universal Technical Institute (NYSE:UTI) reported Q4 CY2024 results exceeding the market’s revenue expectations, with sales up 15.3% year on year to $201.4 million. The company’s full-year revenue guidance of $815 million at the midpoint came in 1.2% above analysts’ estimates. Its GAAP profit of $0.40 per share was significantly above analysts’ consensus estimates.
Altman met with India's IT Minister Ashwini Vaishnaw and discussed India's plan of creating a low-cost AI ecosystem. Altman lauded the country’s rapid AI adoption and growing ambitions. Vaishnaw posted on X that he had a "super cool discussion" with Altman on India's "strategy of creating the entire AI stack - GPUs, model, and apps" and that OpenAI was willing to collaborate on all three.
MEXICO CITY (Reuters) -Mexican and U.S. officials agreed to ongoing and open dialogue on economic issues like strengthening regional supply chains and the traceability of foreign investment on Wednesday, a senior Mexican official told Reuters. In a meeting at the White House, officials from both countries discussed the beginning of public consultations ahead of a revision of the USMCA North American trade pact, said Deputy Foreign Trade Minister Luis Rosendo Gutierrez, adding that the review remains scheduled for 2026. "For now we have not yet started talking about tariffs," Gutierrez.
