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  • 🙅🏽‍♂️ Microsoft Is Shutting Down Skype

🙅🏽‍♂️ Microsoft Is Shutting Down Skype

+ Monster Beverage Stock Jumps on Strong Energy-Drink Sales

February 28, 2025

Good afternoon! Citigroup accidentally turned one lucky customer into the world’s first quadrillionaire—briefly. A routine $280 deposit somehow turned into an $81 trillion credit last year right into someones account, an error that slipped past two employees before a third noticed the bank’s balance sheet looked… off. No money actually left Citi’s vaults, but the blunder was one of ten similar mishaps in 2024, adding to the bank’s growing list of "oops" moments.

Regulators aren’t laughing. Citi’s past slip-ups include a $1.4 billion “flash crash” and the infamous $894 million accidental loan repayment to Revlon lenders, some of whom refused to return the money. CEO Jane Fraser has promised to clean up the mess, but with a $136 million fine last year for “insufficient progress,” watchdogs aren’t convinced. If nothing else, Citi might want to double-check its math before handing out another trillion-dollar surprise.

MARKETS

*Stock data as of market close*

  • Stocks clawed back gains Friday to close out a choppy week and a rough month, with all three major indexes bouncing from recent losses. The S&P 500 climbed 1.6%, while the Nasdaq and Dow each added over 1%, reversing early-session dips as investors weighed economic data and tariff uncertainty.

  • February wasn’t as kind—stocks logged steep monthly losses as trade tensions and geopolitical risks took center stage. The Nasdaq fell nearly 5% for the month, while the S&P 500 and Dow each slipped around 2%. Meanwhile, the latest PCE inflation report landed right on target, with prices up 0.3% from last month and 2.5% year-over-year, keeping the Fed’s next move in focus.

STOCKS
Winners & Losers

What’s up 📈

  • SoundHound AI surged 17.48% after posting Q4 revenue of $34.5M, beating expectations, and raising full-year revenue guidance to $157M-$177M. ( $SOUN )

  • Rocket Cos. jumped 9.12% on high loan volumes last quarter, lifting investor sentiment. ( $RKT )

  • AES soared 11.66% after posting a full-year earnings beat, reporting adjusted EPS of $2.14 vs. analysts' expectation of $1.91. ( $AES )

  • Monster Beverage popped 5.26% as strong energy drink sales pushed revenue above analyst expectations. ( $MNST )

  • Voya Financial rose 2.5% after Morgan Stanley upgraded the stock to overweight, citing improved growth prospects. ( $VOYA )

What’s down 📉

  • Acadia Healthcare plummeted 25.53% despite reporting record annual revenue, as the company missed analyst estimates and forecasted a slower year ahead. ( $ACHC )

  • Duolingo tumbled 17% as the language-learning platform’s adjusted EBITDA guidance for the current quarter fell short of expectations. ( $DUOL )

  • NetApp dropped 15.6% after Q3 revenue of $1.64B missed estimates of $1.69B, and Q4 EPS guidance fell below projections. ( $NTAP )

  • Redfin slid 12.7% following a bigger-than-expected loss last quarter, as concerns over the housing market weighed on the real estate platform. ( $RDFN )

  • Dell Technologies fell 4.7% despite an earnings beat, as Q4 revenue guidance of $23.93B came in below the $24.56B consensus. ( $DELL )

  • HP dropped 6.82% after beating analyst estimates last quarter but warning of a potential slowdown due to tariffs. ( $HPQ )

  • Autodesk slipped 2.9% despite beating Q4 estimates, as the company announced layoffs impacting 9% of its workforce. ( $ADSK )

  • Asian stocks declined as China vowed retaliation against Trump’s proposed 10% tariff hike. Alibaba fell 3%, PDD Holdings slid 4.2%, while Li Auto and Nio also declined. ( $BABA, $PDD, $LI, $NIO )

TECH
Microsoft Is Shutting Down Skype After A 21-year Run And $8.5 Billion Purchase

Once the king of internet calls, Skype is officially calling it quits. Microsoft, which shelled out $8.5 billion for the platform in 2011, is shutting it down in May, nudging users toward Teams, its workplace collaboration tool.

The Rise and Fall of a Digital Titan

Back in the early 2000s, Skype was the way to make free online calls. It was so dominant that "Skyping" became a verb. But as video calling evolved, competitors like WhatsApp, FaceTime, and Zoom left Skype in the dust. Even Microsoft’s own Teams, launched in 2017, quickly became the preferred choice for business users.

Microsoft tried keeping Skype relevant by folding it into its Office ecosystem and repeatedly revamping the app. But users complained about glitches, missed calls, and confusing redesigns. Meanwhile, Teams skyrocketed to 320 million monthly users, dwarfing Skype’s dwindling 36 million daily users.

Microsoft’s New Priorities

Rather than keeping Skype on life support, Microsoft is going all in on AI-powered communication tools for Teams. The company says Skype’s legacy won’t disappear—it’s just being repackaged into a more modern platform. Users can migrate their accounts to Teams and keep their existing contacts, though some may lament losing a service that once defined online communication.

A Lesson in Tech Darwinism

Skype’s demise is a cautionary tale about how fast consumer tech can change. Microsoft isn’t the first to sunset a once-beloved tool—Google has cycled through a graveyard of messaging apps, and Amazon just axed its failed Chime service. In a landscape where innovation moves at breakneck speed, even billion-dollar acquisitions can quickly become relics of the past.

Bottom line? If you’re still Skyping, it’s time to move on.

NEWS
Market Movements

  • 📦 Amazon Expands Haul to Europe Amid Shein, Temu Rivalry: Amazon plans to roll out Haul, its discount storefront competing with Shein and Temu, in Europe later this year. Recent job listings indicate a wider global push, with Mexico also on the radar. The expansion signals Amazon’s strategy to capture price-conscious shoppers in the fast-growing ultra-cheap e-commerce segment ($AMZN).

  • 📉 Block Leads Fintech Sell-Off With 28% Drop in February: Block tumbled 28% in February, its worst monthly decline since 2023, as disappointing earnings rattled investors. PayPal and Coinbase also slid over 20%, reflecting broader pressure on fintech stocks. Meanwhile, Stripe leveraged its private status to boost its valuation to $91.5 billion through a stock tender offer ($SQ, $PYPL, $COIN).

    🏭 Intel Delays Ohio Chip Plant Opening to Next Decade: Intel pushed back the launch of its Ohio semiconductor facility, originally slated to begin production in 2026, to at least 2030. The company cited market conditions and capital efficiency as key reasons for the delay. The postponement raises concerns over Intel’s competitiveness in the AI-driven chip industry ($INTC).

  • 📺 Fox, Disney, and Warner Bros. Scrap Streaming Venture: Fox, Disney, and Warner Bros. Discovery abandoned their planned joint sports streaming service, Venu, opting for separate strategies. Disney is focusing on ESPN’s direct-to-consumer platform, WBD is integrating sports into Max, and Fox will launch its own streaming service later this year. The shift underscores competition in the evolving streaming landscape ($FOXA, $DIS, $WBD).

  • ✂️ Autodesk Lays Off 9% of Workforce Amid AI Shift: Autodesk announced a 9% workforce reduction, affecting 1,350 employees, as it shifts focus toward AI and sales optimization. The restructuring follows strong Q4 earnings, with revenue up 12% to $1.64 billion and adjusted EPS of $2.29 beating expectations. Investors reacted positively despite the layoffs ($ADSK).

  • 🚗 Polestar Secures Loan, Delays Earnings Report: Polestar announced a $450 million loan facility to support operations but delayed its Q4 earnings report until April. The delay has raised concerns about its financial stability as it navigates a challenging EV market. Investors are closely watching its cash flow situation in the coming months ($PSNY).

  • 🏦 CFPB Drops Lawsuits Against Major Financial Firms: The CFPB dismissed lawsuits against Capital One, Berkshire Hathaway’s Vanderbilt Mortgage, and Rocket Cos. The move, which blocked potential consumer relief, was met with criticism but lifted financial stocks. The dismissals reflect a regulatory shift under the Trump administration ($COF, $BRK.A, $RKT).

  • 🛍️ Activists Plan Retail Boycott Over Inflation: Consumer activists are calling for a 24-hour boycott of Walmart, Amazon, Target, and General Mills to protest rising prices. While the boycott may not have a major financial impact, it reflects growing frustration over corporate pricing practices. Experts suggest consumer sentiment is souring as inflation remains sticky ($WMT, $AMZN, $GIS, $TGT).

  • 📈 U.S. Equity Funds See Largest Inflows Since December: U.S. equity funds recorded $19.71 billion in inflows, the highest since December, as investors returned to large-cap stocks. Tech and healthcare sectors saw over $1 billion each, while bond funds attracted $7.42 billion. The inflows signal renewed confidence in equities despite market volatility ($SPY, $QQQ).

STOCK
Monster Beverage Stock Jumps on Strong Energy-Drink Sales

Monster Beverage is still flexing its energy drink dominance, posting yet another year of revenue growth despite rising competition in the $21 billion market. Shares jumped 5.26% Thursday, as the company notched record Q4 sales of $1.81 billion, barely topping Wall Street expectations and bringing full-year revenue to $7.49 billion, up 5% from 2023.

Energy Drinks Still Packing a Punch

Monster’s momentum came from its core energy drink brands—including Bang, Reign, and the flagship Monster Energy—alongside a 5% price increase. Convenience store sales also made a comeback. However, the company’s growing alcohol segment weighed on results due to excess inventory issues.

Not everything was a win—adjusted EPS of $0.38 missed the $0.40 forecast, a rare stumble for the long-time market leader.

Celsius and Alani Nu: Disruptors or Just a Phase?

Monster’s dominance isn’t untouchable. Celsius, the self-proclaimed “healthy” energy drink brand, has rapidly gained market share, fueled by fitness influencers and Gen Z. Its recent $1.65 billion acquisition of Alani Nu, a rising name in the female-focused energy space, has raised eyebrows.

But Monster’s execs aren’t losing sleep. Co-CEO Rodney Sacks dismissed the threat, saying Alani Nu’s growth will hit a ceiling, just like Celsius did. Monster’s Reign and Bang are targeting performance-driven consumers, while Alani Nu is seen as a niche, female-focused brand.

The Energy Drink Arms Race

Despite its resilience, Monster isn’t immune to a changing industry landscape. Rising health concerns, calls for stricter marketing regulations, and younger consumers flocking to sugar-free alternatives have chipped away at its dominance. Monster’s stock is still down 7% over the past year, as investors weigh its staying power against the new wave of competitors.

The fight for shelf space is only getting fiercer. With Celsius making moves, Alani Nu grabbing headlines, and a new wave of health-conscious drinks gaining steam, Monster isn’t just defending its throne—it’s fighting to keep its claws in a market that’s evolving faster than ever.

Calendar
On The Horizon

Next Week

Next week’s economic calendar is looking pretty light, with ISM manufacturing PMI and construction spending kicking things off on Monday. Tuesday’s a snooze, but Wednesday brings ISM services PMI and ADP’s private payrolls report. The labor market watch continues Thursday with jobless claims, alongside trade deficit and wholesale inventory data.

The main event? Friday’s monthly jobs report. With the Fed’s next meeting just around the corner, this will be a crucial read on how the labor market is holding up—especially after the latest wave of federal job cuts. As for earnings, the pace slows down, but there are still a few names worth watching.

Earnings:

  • Monday: Okta ($OKTA), Plug Power ($PLUG), AST SpaceMobile ($ASTS), and Sphere Entertainment ($SPHR)

  • Tuesday: Target ($TGT), AutoZone ($AZO), Best Buy ($BBY), CrowdStrike ($CRWD), Ross Stores ($ROST), and Box ($BOX)

  • Wednesday: Marvell Technology ($MRVL), The Campbell’s Company ($CPB), Zscaler ($ZS), Abercrombie & Fitch ($ANF), Foot Locker ($FL), and Victoria’s Secret ($VSCO)

  • Thursday: Broadcom ($AVGO), Costco ($COST), JD. com ($JD), Kroger ($KR), Hewlett Packard Enterprise ($HPE), BJ’s Wholesale Club ($BJ), Macy’s ($M), The Gap ($GPS), and Cracker Barrel ($CBRL)

NEWS
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RESOURCES
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