The government’s latest economic growth estimate is higher than expected, Meta is planning more layoffs and Nvidia shares are surging after it said its revenue forecast for the current quarter beat expectations. Here’s what investors need to know today.
1. The economy is growing faster than expected
In its second estimate for the fourth quarter gross domestic product (GPD)Bureau of Economic Analysis reported the economy grew at an annual rate of 2.7%, compared with projections of 2.5%, after growing 3.2% in the third quarter. Separately, the Ministry of Labor reported initial jobless claims for state jobless benefits fell by 3,000 to 192,000 in the latest week ended Feb. 18. Economists had expected an increase.
2. Nvidia Forcasts AI Boom, Shares Rise
Nvidia (NVDA) shares rose 8% after the chipmaker reported that its revenue forecast for the current quarter beat expectations. Nvidia CEO Jensen Huang said in a statement: “AI is at an inflection point and is poised for widespread adoption across every industry. From startups to large enterprises, we’re seeing accelerated interest in the versatility and capabilities of generative AI.” The stock is up 45% this year.
3. Meta Platforms plans more layoffs
Meta Platforms is reportedly planning a new round of job cuts that could affect thousands of workers. This follows on from last year job cuts with more than 11,000 employees, or 13% of its workforce, as its costs rose and Meta faced a weak advertising market.
4. Tesla will move its global engineering headquarters to California
Chief Executive Officer Elon Musk and California Governor Gavin Newsom announced that Tesla will establish its global engineering headquarters in California. Tesla moved its corporate headquarters from Silicon Valley to Austin, Texas in December 2021.
5. Dan Loeb’s third point kicks off a proxy fight at Bath & Body Works
Dan Loeb’s hedge fund Third Point will launch the event proxy fight at Bath & Body Works (BBWI) to address what the activist investor says are excessive executive pay and lagging financial performance. Third Point disclosed its 6% stake in the company in December.
