From Nasdaq: 2024-11-12 11:44:00

The Motley Fool analysts discuss market reactions to the 2024 election and sectors that could benefit from Trump’s policies. Stock updates on Axon, Palantir, Airbnb, The Trade Desk, and Ferrari. Also, a throwback interview with Mr. Rogers on money and early experiences. Check out The Motley Fool’s podcast and beginner’s guide to stock investing for more insights.

The market reacts positively to Trump’s election win, with stocks, crypto, and the US dollar rising. Trump will be the second president to serve two non-consecutive terms. Analysts predict his policies will be good for the economy, growth, and business. Stock index for banks surges 11% on the news, outperforming the S&P’s 2.5% increase.

Uncertainty in the market is lifted as Trump is elected president. His policies are expected to benefit highly regulated industries like banks, financials, and energy. Market reacts favorably to the news, with the KBW Bank index rising 11% compared to the S&P’s 2.5% increase. Trump’s relationship with Elon Musk may impact energy initiatives. Axon continues its stellar performance in 2024, with strong results that are not surprising but still very encouraging. The company, often compared to the Apple of public safety, has market-leading hardware and a supportive software ecosystem. Revenue is up 41% year over year, just shy of $700 million for the quarter, and CEO Max Levchin describes their performance as galloping out of the gates. With interest rates coming down, Affirm sees an opportunity to offer lower-rate products to higher value customers. The Federal Reserve’s rate cut was expected, with the market pricing in another one for December. Investors are looking beyond the rate cuts to see how policy and plans shape up for the incoming administration in January. Rumors suggest crypto may become part of the federal balance sheet, signaling a potential shift towards federal acceptance of cryptocurrencies. The inflation story and interest rate policy will be key factors to watch in the coming year to gauge the impact on financial markets. Axon reported impressive revenue growth of 32% to $554 million, with adjusted earnings of $1.45. The Axon Cloud and services segment revenue was up 36% to $203 million, with annual recurring revenue growth of 36% now at $885 million. They raised full-year revenue outlook to $2.07 billion, showing strong customer growth and retention.

Palantir’s sales increased by 30% to $725 million, beating estimates. They reported net income of $144 million, with CEO Alex Karp expressing confidence in the company’s results. Despite market expectations, Palantir announced partnerships with Meta, AWS, Accenture, the Navy, and even Wendy’s. The company’s valuation remains high at $133 billion.

Airbnb’s revenue increased by 10% to $3.7 billion, with gross booking volume up 10%. The company saw strong performance in Latin America and Asia-Pacific. Airbnb remains a free cash flow machine, generating $1.1 billion in the quarter and $4.1 billion in the trailing 12 months. Global lead times are starting to normalize. Airbnb CEO, Brian Chesky, plans to expand into adjacent markets, launching one to two businesses generating one billion or more in revenue annually. Challenges include regulatory limitations in Airbnb’s core business and host frustrations. Adjacent market expansion is the company’s strategy to overcome obstacles and continue growth.

The Minute Earth podcast, created by popular science show creators, explores intriguing science questions in every episode. The podcast features scientific research, entertaining explanations, and fun facts. Topics range from river curving to children needing glasses, with each episode providing valuable insights and engaging content for listeners to enjoy.

Fred Rogers, known for “Mr. Rogers’s Neighborhood,” discusses his show’s origins and his belief in ministry through connecting with and caring for others. Rogers emphasizes the importance of understanding children, introducing them to excellence, setting expectations, and teaching them the value of giving and receiving at a young age. Everyone has something to offer and receive. Fred Rogers grew up during the Great Depression, learning to be careful with money. He believes in being honest and authentic, saying it’s the greatest gift anyone can give. He advocates for taking care of those who can’t take care of themselves, emphasizing that material possessions aren’t ultimately important.

Warren Buffett’s Berkshire Hathaway reported earnings, showing continued success. Berkshire made a lot of money investing in Apple but has sold down 60% of its holdings. Berkshire now holds over $325 billion in cash. Buffett remains a respected figure in the market, providing insight and wisdom to investors. Berkshire Hathaway has a cash pile of $325 billion, roughly a third of its market cap. Despite its high cash position, the company did not buy back its own shares last quarter. Warren Buffett may be making a macro call on valuations and saving cash for a potential acquisition.

Berkshire Hathaway announces earnings on the weekend to avoid media reports that may influence investors. This aligns with their principles, such as never splitting voting shares. The company’s unique approach to financial reporting reflects their commitment to transparency and consistency.

“Red One,” a holiday movie featuring Dwayne “The Rock” Johnson and Chris Evans, centers around saving Santa Claus from a villain. Despite mixed reviews, many are excited to watch this creative and entertaining film. The movie is set to release on November 15, promising a unique holiday experience.

Ferrari, the most valuable car company in Europe, saw a decline in shipments in their recent quarter. Despite expectations for companies like Mercedes or BMW to hold this title, Ferrari continues to dominate the luxury car market. The company’s financial performance reflects challenges in the global automotive industry. Ferrari sales in China plummet by 29%, attributed to personalized cars. Customized Ferrari prices dropping due to lack of taste in designs. Impact of secondary market on future sales uncertain. The Trade Desk reports revenue of $628 million, 27% growth, and $2.3 billion annual revenue. Connected TV segment sees rapid growth with partnerships with major companies like Disney and Netflix. Audio opportunities with Spotify partnership highlighted for future growth potential. 1. The stock market surged today with the Dow Jones Industrial Average reaching a record high of 30,000 points, driven by optimism surrounding COVID-19 vaccine developments and hopes for a strong economic recovery in 2021.

2. The United States reported over 12 million confirmed cases of COVID-19, with hospitalizations reaching a record high of 83,000. Health officials are urging Americans to follow safety guidelines as the holiday season approaches to prevent further spread of the virus.

3. Tesla CEO Elon Musk surpassed Bill Gates to become the second-richest person in the world, with a net worth of $128 billion. The electric car company’s stock price has soared this year, making Musk’s fortune skyrocket.

4. Black Friday online sales hit a record high of $9 billion, marking a 21.6% increase from the previous year. The shift to online shopping due to the pandemic did not deter shoppers from taking advantage of deals and discounts offered by retailers.

5. The NBA announced that the 2020-2021 season will begin on December 22, with a reduced schedule of 72 games per team. The league plans to implement strict health and safety protocols to prevent the spread of COVID-19 among players and staff.



Read more at Nasdaq: The Election, the Fed, and What’s Next