Market Minute: Spotify Announces Layoffs, Feds Seize Millions from FTX Founder & Egg Smuggling
Here is a rundown of Cheddar News' top market stories of the day.
SPOTIFY LAYOFFS
Spotify has announced plans to cut around 6 percent of its workforce, placing the music streaming service among other tech firms that have made layoffs in recent weeks, including Microsoft, Amazon, and Google parent company Alphabet. The number of positions potentially on the chopping block is not yet clear. Many tech firms have cut between 5 and 10 percent.
FED'S FTX SEIZURE
Disgraced crypto executive Sam Bankman-Fried's fortune is rapidly dwindling, as federal regulators seized more than $600 million of his assets this month. The forfeitures are related to the federal government's criminal case against Bankman-Fried, who faces charges of fraud and conspiracy — though he has pleaded not guilty. The most recent seizure was a whopping $95 million from an account held at Silvergate Bank.
CITADEL PROFITS
Hedge fund Citadel reported a record $16 billion in profits for clients in 2021. That is the biggest annual return for a fund manager since John Paulson made $15 billion in 2007 betting against the subprime mortgage market, and perhaps one of the biggest plays in Wall Street's history. The sky-high profits came as hedge funds overall underperformed amid 2022's bear market.
EGG SMUGGLING
Customs and Border Protection officials are reporting a surge in egg smuggling from Mexico — with U.S. egg prices up 60 percent in December from 12 months earlier. Smugglers are risking thousands of dollars in fines just to bring eggs, which cost around $3.40 for a 30-count carton in Mexico, compared to as much as $7.37 for just a dozen in America.
Apple has rolled out an update to its operating system this week with a feature called Stolen Device Protection. It makes it a lot harder for phone thieves to access key functions and settings, and users are being urged to turn it on immediately.
The U.S. economy grew at an unexpectedly brisk 3.3% annual pace from October through December as Americans showed a continued willingness to spend freely despite high interest rates and frustrating price levels.
Alan Becker, CEO and Investment Adviser Representative at Retirement Solutions Group and RSG Investments, shares his thoughts on the latest GDP data plus why he's not sold cryptocurrency as a long-term asset.
The Biden administration wants to ban another type of bank “junk fee," targeting fees that are typically charged by banks when a transaction is declined in real time.
Al Root, senior writer at Barron’s, breaks down everything expected from Tesla’s earnings report, from Elon Musk’s demands from the board to why the market has been looking for affordable EV options.
Online retailer eBay Inc. will cut about 1,000 jobs, or an estimated 9% of its full-time workforce. The announcement follows similar moves by other tech companies that ramped up hiring during the pandemic while people spent more time and money online.
Tony Drake, CFP at Drake and Associates, LLC shares thoughts on whether the record gains in technology will broaden to other sectors, the risks of the Fed keeping interest rates higher for too long, and the health of the U.S. consumer.
