Good Evening. As investors take economic warnings from bank giants and ponder the implications of impending Federal Reserve policies, the U.S. stock market continued to decline on Tuesday, adding to the early-week selloff.
The S&P 500 fell 1.44%, while the Dow Jones fell 1.03%. The Nasdaq Composite declined 2.00%.
STREAMING LOSSES
Paramount Global (PARA) shares fell more than 8% as CEO Bob Bakish cautioned that a weaker advertising market would likely harm fourth-quarter results.
“We do now see the fourth quarter coming in a bit below the third quarter,” Bakish said at a UBS conference in New York City, adjusting prior expectations that the fourth quarter would produce earnings comparable to Q3’s.
However, Despite macroeconomic worries, Bakish is optimistic about the future of Paramount+, saying that the business aims to spend $6 billion on streaming content in 2024, up from $2 billion in 2021.
Sadly it was not enough to convince Wall Street… which is still fixated on long-term worries over streaming losses, which are projected to hit $1.80 billion in 2022 and continue to increase in 2023. Since the beginning of the year, Paramount shares have lost nearly 44%.
CATCHING UP WITH THE COMPETITION!
Robinhood (HOOD) said it would give a 1% match on its regular and Roth IRAs (If you want to know more about IRAs, read our new blog!).
The move takes Robinhood closer to directly competing with traditional brokerages such as Fidelity, Charles Schwab, and Morgan Stanley’s E*TRADE, which have engaged in the online retirement account sector for years.
Prospective clients may register to be waitlisted for Robinhood Retirement and can expect to obtain access on a rolling basis in the following weeks. However, the service will not be fully accessible until January. Beware the details though, clients of Robinhood are routed through their order flow, so they may not get the best execution on their trades, which could quickly wipe out the 1% bonus.
It has not been all good news for HOOD… The platform stated in August that it was laying off 23% of its workers, after a second wave of layoffs after reducing its full-time staff by 9% in April. On top of that, according to the company’s most recent quarterly report, active monthly users numbered 12,2 million in Q3 – a decrease of 1.8 million members from the previous quarter.