🛒 Walmart Shares Drop

Good night! Niantic, the company behind Pokémon Go, is reportedly in talks to sell its gaming division to Saudi Arabia-owned Scopely for around $3.5 billion. The deal, which could be announced in the coming weeks, would include Pokémon Goand other mobile titles. While discussions remain private, the move marks a major shift for Niantic, which has struggled to replicate its 2016 blockbuster success.

Scopely, owned by Saudi Arabia’s Savvy Games Group, has been expanding aggressively after a $4.9 billion acquisition in 2023. The deal aligns with Saudi Arabia’s push to dominate gaming, with its Public Investment Fund pouring billions into the industry. Niantic, originally spun out of Google, has pivoted toward geospatial technology, but Pokémon Go remains its crown jewel.

MARKETS

• Stocks slid Thursday after two days of record highs, with the S&P 500 dropping 0.4% and the Dow shedding 1%. Weak corporate forecasts and renewed tariff concerns fueled investor uncertainty, prompting a broad market pullback.

• The Nasdaq dipped 0.5%, as traders reassessed growth expectations amid economic headwinds. With earnings season in full swing and policy risks mounting, markets showed signs of hesitation after a strong run.

STOCKS
Winners & Losers

What’s up 📈

• Amplitude skyrocketed 21.86% after posting a strong Q4 earnings beat and receiving an upgrade from Baird. ($AMPL)

• Hasbro soared 12.95% following better-than-expected Q4 earnings and optimistic fiscal year guidance. ($HAS)

• Shake Shack popped 11.13% after reporting a 14.8% year-over-year revenue increase and strong store expansion. ($SHAK)

• Clearwater Analytics jumped 10.72% after reporting stronger-than-expected Q4 results, beating earnings and revenue forecasts. ($CWAN)

• Bausch Health climbed 10.29% after revenue in its main eye-care segment topped analysts' expectations. ($BHC)

• Alibaba rose 8.09% following a strong earnings report and increased AI-driven growth in its Cloud Intelligence unit. ($BABA)

• Baxter International gained 8.50% after surpassing earnings expectations despite disruptions to manufacturing operations. ($BAX)

What’s down 📉

• Carvana plummeted 12.10% after missing profit margin expectations in Q4 despite revenue and earnings beats. ($CVNA)

• AppLovin tumbled 8.94% after short seller Edwin Dorsey criticized the company’s revenue sources as “deceptive” and “predatory.” ($APP)

• Walmart fell 6.53% after issuing weaker-than-expected fiscal 2026 guidance and warning of potential tariff impacts. ($WMT)

• Robinhood Markets sank 5.35% as speculative tech stocks, including Palantir and AppLovin, saw steep declines. ($HOOD)

• Royal Caribbean dropped 7.62% after Commerce Secretary Howard Lutnick suggested new tax policies could impact cruise companies. ($RCL)

• Carnival Corp. slid 5.86%, joining other cruise stocks in a selloff triggered by potential tax hikes on the industry. ($CCL)

• Norwegian Cruise Lines fell 4.89% amid concerns over increased tax obligations for the cruise sector. ($NCLH)

• Booz Allen Hamilton declined 3.55% after speculation of U.S. defense budget cuts hit government contractors. ($BAH)

RETAIL
Walmart Shares Drop As Retailer Says Profit Growth Will Slow

Walmart just reminded investors that even retail giants have limits. The company’s profit forecast for the year came in lighter than expected, with earnings projected between $2.50 to $2.60 per share, missing Wall Street’s mark. While sales are still climbing, growth is cooling, with revenue expected to rise just 3% to 4% this year, down from last year’s 5% gain.

The stock tumbled over 6% on the news, as investors recalibrated their expectations. And to add insult to injury, Amazon just surpassed Walmart in quarterly revenue for the first time ever, raking in $187.8 billion last quarter compared to Walmart’s $180.5 billion.

Tariffs? Never Heard of Them.

Walmart’s CFO, John David Rainey, admitted that the company’s guidance doesn’t factor in tariffs, which is corporate speak for “we have no clue how this plays out.” The retailer imports tons of products from China and Mexico, meaning new trade policies could jack up costs. But Walmart has a game plan: squeeze suppliers, lean into private-label brands, and keep prices low enough to keep customers happy. Whether that’ll be enough to dodge the tariff fallout remains to be seen.

Click. Buy. Repeat.

E-commerce remains Walmart’s fastest-growing business, with U.S. online sales jumping 20% last quarter—its 11th straight quarter of double-digit growth. The company is going all-in on speed, with 30% of customers paying extra for express delivery and same-day fulfillment becoming the norm. Walmart is also betting big on digital ads and subscriptions to boost profits, proving that its playbook is looking more like Amazon’s every day. And with Amazon closing in on Walmart’s annual revenue lead, the competition is only getting fiercer.

The Big Picture: Walmart isn’t crashing—it’s just hitting the brakes after a pandemic-fueled surge. Higher-income shoppers are still picking Walmart over pricier alternatives, but slowing sales, economic uncertainty, and looming tariffs make 2025 a tougher road ahead. The stock drop shows investors were hoping for another home run, but Walmart plays the long game—and when the economy wobbles, history shows it tends to win. That said, with Amazon gaining ground and expanding its empire beyond retail, Walmart’s dominance is facing a challenge it can’t afford to ignore.

NEWS
Market Movements

• 📈 Meta Increases Executive Bonuses After 5% Workforce Layoffs: Meta has approved a new executive bonus plan, raising potential payouts to 200% of base salary, up from 75%. This move follows a 5% workforce reduction and a 10% cut in stock option distributions. The changes exclude CEO Mark Zuckerberg. ($META)

• 🛒 Amazon Overtakes Walmart in Quarterly Revenue for the First Time: Amazon posted $187.8 billion in Q4 revenue, surpassing Walmart’s $180.5 billion. While Walmart still leads in annual sales, Amazon is narrowing the gap, with its projected 2025 revenue reaching $700.8 billion. ($AMZN, $WMT)

• 🚙 Rivian Beats Q4 Expectations but Lowers 2025 Delivery Forecast: Rivian reported its first gross quarterly profit, but expects 2025 deliveries to decline to between 46,000 and 51,000 units. The EV maker cited potential impacts from reduced tax credits and changing tariff policies. ($RIVN)

• 📉 Block Shares Drop After Missing Revenue and Profit Estimates: Block’s Q4 revenue of $6.03 billion fell short of expectations, sending shares down 6% after hours. The company’s payments unit saw 14% gross profit growth, but competition from rivals like Toast and Clover remains strong. ($XYZ)

• ✈️ Delta Offers $30,000 to Passengers Injured in Toronto Crash: Delta Air Lines is offering $30,000 to each passenger aboard Flight 4819, which overturned while landing in Toronto. Despite the compensation, passengers may still pursue legal claims under international aviation treaties. ($DAL)

• 🤖 Former OpenAI CTO Launches AI Startup, Thinking Machines Lab: Mira Murati, former CTO of OpenAI, has founded Thinking Machines Lab, an AI research startup focused on human-AI collaboration and safety. The company has recruited talent from OpenAI, Meta, and Anthropic.

• 💧 KKR Offers $5B to Acquire Debt-Laden Thames Water: Private equity giant KKR has bid $5 billion to acquire Thames Water, the U.K.'s largest water utility, which has warned it may run out of cash by March. ($KKR)

• 💰 Google Pays $340M to Settle Italian Tax Dispute: Google has reached a $340 million settlement with Italian authorities over claims it failed to file and pay taxes on revenue generated in Italy between 2015 and 2019. ($GOOGL)

• 💊 AstraZeneca Acquires FibroGen’s China Unit for $160M: AstraZeneca has agreed to buy FibroGen’s China unit for $160 million, securing full rights to the anemia drug roxadustat in China. ($AZN)

EARNINGS
Alibaba Posts Fastest Revenue Growth Since 2023

Alibaba is finally back in the spotlight for the right reasons. The Chinese tech giant posted its fastest revenue growth in over a year, with an 8% jump to $38.6 billion, fueled by a surging cloud business and resilient e-commerce sales. Investors are taking notice—Alibaba’s stock soared 8% in the U.S. and Hong Kong, adding $24 billion to its market value. And in a sign that Beijing is warming back up to the private sector, Jack Ma re-emerged at a meeting with President Xi Jinping, marking a symbolic shift for the once-beleaguered company.

Cloud & AI: Alibaba’s New Power Play

Alibaba’s Cloud Intelligence Group saw 13% growth, its best quarterly performance in two years, as AI-driven demand skyrocketed. CEO Eddie Wu is going all in on AI, saying Alibaba will spend more on AI infrastructure in the next three years than in the past decade. The company is betting on Artificial General Intelligence (AGI) as its “primary objective”—a bold call in a race dominated by OpenAI and Baidu. Wu is confident that AI will reshape Alibaba’s business model, but like its Western counterparts, it still hasn’t laid out exactly how that will translate into profits.

E-Commerce Rebounds, But Challenges Remain

Alibaba’s core Taobao and Tmall platforms grew 5.4%, while international e-commerce surged 32%, led by AliExpress and Trendyol. The company has successfully defended its turf from ByteDance’s Douyin and PDD Holdings’ Temu, but China’s consumer market remains fragile. Even with stimulus measures, consumer spending has been sluggish, and Alibaba still lags behind its pre-crackdown highs.

A $100 Billion Comeback, But Not Out of the Woods Yet

Alibaba has added $100 billion in market value this year, riding a mix of government goodwill, AI hype, and solid earnings. But challenges persist: China’s economic recovery is uneven, competition is heating up, and the company is still trying to regain its footing after years of regulatory pressure. For now, though, investors are cheering Alibaba’s best quarter in years, and with AI and cloud growth accelerating, its long-awaited rebound may finally be real.

Calendar
On The Horizon

Tomorrow

Earnings take a backseat tomorrow, but a few economic reports are worth watching. The housing market remains in focus with existing home sales data, which typically pick up in spring—though tight supply and high prices could keep buyers on the sidelines.

We’ll also get the final read on consumer sentiment from the University of Michigan, which recently hit its lowest level since August. Plus, the S&P flash PMI reports will offer a pulse check on services and manufacturing, with steady demand keeping the former afloat while high rates continue to weigh on factory activity.

NEWS
The Daily Rundown

• 🚚 Nikola Declares Bankruptcy After Years of Struggles: Once valued at $27 billion and hailed as a key player in the EV revolution, Nikola has filed for Chapter 11 bankruptcy. The company, which never turned a profit, was hit by fraud allegations, recalls, and financial mismanagement. Founder Trevor Milton was convicted of securities fraud, and Nikola’s failed promises led to its downfall as it entered bankruptcy with $98 million in debt.

• 📞 Trump and Zelensky Exchange Blows Over Russia Talks: After U.S. and Russian officials met without Ukraine to discuss ending the war, Trump claimed Ukraine "started the war," prompting Zelensky to accuse Trump of believing Russian propaganda. Trump responded by calling Zelensky "a dictator without elections" and exaggerating U.S. aid to Ukraine, escalating tensions between the two leaders.

• 🚗 Trump Moves to End NYC’s Congestion Pricing Program: The Department of Transportation is revoking approval for New York City's congestion pricing tolls, fulfilling Trump’s campaign promise. The MTA and New York’s governor vowed to fight the move in court, arguing that the program, which reduces traffic and funds transit improvements, is critical for the city.

• 🎬 China’s "Ne Zha 2" Becomes Highest-Grossing Animated Film Ever: The Chinese animated hit "Ne Zha 2" has overtaken Pixar’s "Inside Out 2" as the highest-grossing animated film of all time. The movie has earned $1.7 billion globally, setting multiple records and highlighting China's growing dominance in the international box office.

• 💰 DOGE Caught Overstating Government Savings by $8 Billion: Elon Musk’s Department of Government Efficiency claimed it saved taxpayers $8 billion by canceling an ICE contract—but it was actually $8 million. The department later corrected the mistake, fueling concerns over transparency in its federal spending cuts.

• 🎤 A$AP Rocky Acquitted in 2021 Shooting Case: A Los Angeles jury found rapper A$AP Rocky not guilty of assault charges related to a 2021 shooting involving his former friend A$AP Relli. The defense argued Rocky fired a prop gun loaded with blanks in self-defense. His partner, Rihanna, expressed relief at the verdict.

• 🏛 Trump Expands White House Oversight of Federal Agencies: An executive order now requires independent agencies like the SEC, FTC, and FCC to submit proposed regulations for White House review. Critics argue this move threatens agency independence and could face legal challenges.

• ✈️ Two Dead in Midair Collision Over Arizona Airport: Two small aircraft collided in midair over Marana Regional Airport, Arizona, on February 19, killing both occupants of a Lancair 360 MK II, which crashed and caught fire near the runway. The other aircraft, a Cessna 172S, managed to land safely. The airport lacks an operational control tower, relying on pilots to communicate their positions. The FAA and NTSB have launched an investigation into the accident.

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