ResearchThree Things (5/5)

Three Things (5/5)

May 5, 2022

The below content and projections are the opinion of the authors. Any conclusions or takeaways are their own. This should not be considered as investment advice. Investing involves the risk of loss and returns are not guaranteed.

1) Federal Reserve raises rates by most since 2000, stocks soar after comments from Fed chair Powell

  • The U.S. central bank raised its benchmark interest rate by 0.5% on Wednesday, the first move of this magnitude in over 20 years.
  • In a press conference, Fed chair Jay Powell signaled future rate increases would be of the same magnitude; some investors anticipated 0.75% rate increases in future meetings.
  • All three major U.S. stock indexes gained over 2.8% on Wednesday following this news.

Titan’s Takeaway: The Fed raised interest rates by 0.5% on Wednesday and will likely do so again in six weeks, which in this environment counts as good news. Higher interest rates have pressured markets for months, and Wednesday’s market rally shows investors are ready to cheer any signs the central bank will hold steady — rather than get more aggressive — in its efforts to fight inflation.

2) Meta pares back hiring goals amid what company calls an “industry-wide downturn”

  • The company has paused hiring across most of its engineering teams for the rest of the year, according to an internal memo obtained by Insider.
  • Meta’s employee headcount totaled 77,805 as of March 31, 2022, up 28% from the prior year.
  • In its earnings release last week, Meta cut the range for its forecasted expenses this year by $3 billion.

Titan’s Takeaway: Slumping stock prices have spurred changes across the tech industry in employee compensation structures this year. But lower stock prices also suggest a dimmer view of growth prospects from investors, and slower hiring against this backdrop comes as little surprise.

3) Wordle drives New York Times subscriber growth as digital media playbooks continue to expand

  • The company added 387,000 net new digital subscribers in the first quarter, its best Q1 in two years.
  • Management said Wordle – the word teaser game the Times acquired in January 2022 — played an “outsized role” in Q1 subscriber growth.
  • Tens of millions of new users were brought to the company’s sites as a result of its Wordle acquisition, though most users only play the game, which remains free to play.

Titan’s Takeaway: Subscription models, and the recurring revenue streams they generate, have become the preferred business strategy for most media brands over the last several years. The New York Times’ growth through sports, cooking, and now gaming, however, shows this model requires businesses to remain creative in finding new ways to delight subscribers — reporting the news every day won’t cut it.

Cash Management

Smart Cash

Smart Cash FAQs

Cash Options

Get Smart Cash

InstagramTwitterYoutubeLinkedIn

© Copyright 2024 Titan Global Capital Management USA LLC. All Rights Reserved.

Titan Global Capital Management USA LLC ("Titan") is an investment adviser registered with the Securities and Exchange Commission (“SEC”). By using this website, you accept and agree to Titan’s Terms of Use and Privacy Policy. Titan’s investment advisory services are available only to residents of the United States in jurisdictions where Titan is registered. Nothing on this website should be considered an offer, solicitation of an offer, or advice to buy or sell securities or investment products. Past performance is no guarantee of future results. Any historical returns, expected returns, or probability projections are hypothetical in nature and may not reflect actual future performance. Account holdings and other information provided are for illustrative purposes only and are not to be considered investment recommendations. The content on this website is for informational purposes only and does not constitute a comprehensive description of Titan’s investment advisory services.

Please refer to Titan's Program Brochure for important additional information. Certain investments are not suitable for all investors. Before investing, you should consider your investment objectives and any fees charged by Titan. The rate of return on investments can vary widely over time, especially for long term investments. Investment losses are possible, including the potential loss of all amounts invested, including principal. Brokerage services are provided to Titan Clients by Titan Global Technologies LLC and Apex Clearing Corporation, both registered broker-dealers and members of FINRA/SIPC. For more information, visit our disclosures page. You may check the background of these firms by visiting FINRA's BrokerCheck.

Various Registered Investment Company products (“Third Party Funds”) offered by third party fund families and investment companies are made available on the platform. Some of these Third Party Funds are offered through Titan Global Technologies LLC. Other Third Party Funds are offered to advisory clients by Titan. Before investing in such Third Party Funds you should consult the specific supplemental information available for each product. Please refer to Titan's Program Brochure for important additional information. Certain Third Party Funds that are available on Titan’s platform are interval funds. Investments in interval funds are highly speculative and subject to a lack of liquidity that is generally available in other types of investments. Actual investment return and principal value is likely to fluctuate and may depreciate in value when redeemed. Liquidity and distributions are not guaranteed, and are subject to availability at the discretion of the Third Party Fund.

The cash sweep program is made available in coordination with Apex Clearing Corporation through Titan Global Technologies LLC. Please visit www.titan.com/legal for applicable terms and conditions and important disclosures.

Cryptocurrency advisory services are provided by Titan.

Information provided by Titan Support is for informational and general educational purposes only and is not investment or financial advice.

Contact Titan at support@titan.com. 508 LaGuardia Place NY, NY 10012.