Hey Sharks, Fin here. Markets caught a bid today as investors breathed a collective sigh of relief. Between Donald Trump’s Davos recalibration and a blockbuster (but messy) Netflix earnings print, there was plenty to chew on. Let’s break it down.
🌍 Trump at Davos: No Tariffs, Big Rhetoric
President Trump took the stage at the World Economic Forum in Davos and delivered the speech markets were watching. The big headlines:
He reiterated his interest in Greenland but ruled out using force, a detail that eased geopolitical anxieties.
Trump also said he would not impose new tariffs on European nations, reversing threats tied to Greenland trade tensions, a key catalyst for today’s rally.
In classic Trump flair, he dismissed the recent market sell-off as “peanuts” and predicted U.S. stocks could double from here, a projection far above consensus forecasts.
Reactions were mixed in Davos. Some saw the speech as calming, others questioned its substance and tone.
Market takeaway: calming tariff rhetoric + trade tension de-escalation was enough to flip sentiment from yesterday’s sell-off.
📈 How the Mag7 Responded Today
With tariff fears cooling, traders rotated straight back into the largest, most liquid tech names.
Mag7 Performance (Today)
Stock | Ticker | % Move |
|---|---|---|
Apple | AAPL | ▲ ~0.6% |
Microsoft | MSFT | ▲ ~0.7% |
Nvidia | NVDA | ▲ ~3.0% |
Amazon | AMZN | ▲ ~0.8% |
Meta | META | ▲ ~1.2% |
GOOGL | ▲ ~0.9% | |
Tesla | TSLA | ▲ ~1.5% |
(Moves driven by tariff de-escalation and risk-on positioning.)
Fin’s read:
This wasn’t about fundamentals changing overnight. It was about risk coming off the table. When uncertainty fades, money flows back to the biggest winners first.
🎬 Netflix Earnings: Beat, But Guidance Spoils the Party
Netflix was the first major tech name to report as the new earnings season kicks off — and the reaction was textbook market nuance:
What Netflix delivered:
A quarter that beat revenue expectations, with subscribers growing and streaming metrics solid.
However, full-year guidance came in softer than Wall Street hoped, with a revenue forecast that leaned below some analyst models.
Margin guidance was more modest than anticipated, partly due to expenses tied to the Warner Bros. acquisition and paused buybacks, signaling heavier short-term investment costs.
Netflix stock reaction:
NFLX shares slid ~4–5% even though the quarter wasn’t weak. This was a guidance and valuation story, not a fundamental collapse.
Why this matters for the Mag7:
Netflix’s report is an early test case for this earnings season: stocks can beat while still selling off on guidance. For the Mag7, that means investors will be watching not just beats, but how companies frame growth, spending, and capital allocation for the next year, especially in AI, advertising, and cloud segments.
🦈 Fin’s Quick Take
Today’s rally was about relief, not resolution. Trump’s Davos comments removed a major risk headline, but earnings will decide whether this bounce sticks.
Netflix already showed us the rule for this season:
Beat the quarter, guide clean or the stock gets punished.
📬 If this helped, forward it to one friend who owns tech stocks and pretends not to check earnings.
Sent with bite,
– Fin 🦈
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