Frontier Investment Management
January 24, 2025
Fourth Week of January 2025
THE WELL-TH NOTES
Weekly data-driven insights on the markets and economy
1. Earnings, tech drive market
Stocks climbed on Wednesday, with the S&P 500 nearing an all-time high as technology shares like Oracle and Nvidia rallied on AI optimism. Netflix and Procter & Gamble (P&G) also gained after strong quarterly results. The Nasdaq rose 1.1%, highlighting tech outperformance, while the Dow increased by 67 points, boosted by P&G’s earnings. Despite concerns over potential tariffs, investor optimism about the new administration’s business-friendly policies has driven market gains in 2025.[i]
2. Cryptocurrency regulation revolution
On Tuesday, the Trump administration took its first step to lower regulatory barriers for cryptocurrency, with the SEC launching a “crypto task force” led by Commissioner Hester Peirce. This task force aims to develop a comprehensive regulatory framework for crypto assets, addressing issues like coin registration. The announcement led to a 2.4% rally in Bitcoin prices. This move marks a significant shift from the previous administration’s stance on digital currencies.[ii]
3. Venmo takes flight with JetBlue
JetBlue has become the first airline to accept Venmo payments for flights, announced on Tuesday. This option is available on its website and will soon be on its mobile app. This move is part of JetBlue’s broader strategy to enhance services and boost profits amid increasing competition from larger airlines. Despite recent financial struggles, JetBlue continues to improve its offerings by introducing new app features, airport lounges, and additional routes.[iii]
4. Netflix exceeds expectations
Shares of Netflix soared more than 13% on Tuesday after the company reported fourth-quarter results that exceeded expectations. Netflix added a record 19 million subscribers, surpassing 300 million paid memberships. Revenue for the quarter jumped 16% year-over-year to $10.25 billion, and Netflix raised its full-year 2025 revenue expectations to a range of $43.5 billion to $44.5 billion.[iv]
5. Walgreens pharmacy fiasco
The Department of Justice (DOJ) announced last Friday that it has sued Walgreens for allegedly dispensing millions of unlawful prescriptions since August 2012, leading to overdose deaths. The DOJ claims that Walgreens knowingly filled prescriptions that lacked a legitimate medical purpose and pressured pharmacists to fill them without proper validation. Walgreens has denied the allegations.[v]
6. AI & Academy Awards controversy
Controversy arose last weekend when a film editor of “The Brutalist” admitted using artificial intelligence (AI) to enhance the lead actors’ Hungarian accents. The film, directed by Brady Corbet and starring Adrien Brody and Felicity Jones, follows an architect rebuilding his life in America post-World War II. The debate over AI use comes just ahead of the Academy Award nominations, with some questioning the film’s eligibility for major awards. [vi]
[i] Subin, Samantha, Harring, Alex and Min, Sarah. “S&P 500 rises to fresh record as Trump optimism, strong earnings reignite stock rally: Live updates.” CNBC, 22 Jan. 2025, https://www.cnbc.com/2025/01/21/stock-market-today-live-updates.html. Accessed January 22, 2025.
[ii] Cox, Jeff. “Trump’s SEC launching ‘crypto task force’ to develop clear regulations for industry.” CNBC, 21 Jan. 2025, https://www.cnbc.com/2025/01/21/trumps-sec-launching-crypto-task-force-to-develop-clear-regulations-for-industry.html. Accessed January 22, 2025.
[iii] Campinoti, Maria Sole. “JetBlue now takes Venmo online bookings, a first for airlines.” CNN, 21 Jan. 2025, https://www.cnn.com/2025/01/21/business/jetblue-venmo-bookings/index.html. Accessed January 22, 2025.
[iv] Whitten, Sarah. “Netflix shares soar as company reports surging revenue, tops 300 million subscribers.” CNBC, 21 Jan. 2025, https://www.cnbc.com/2025/01/21/netflix-nflx-earnings-q4-2024.html. Accessed January 22, 2025.
[v] Mangan, Dan. “DOJ sues Walgreens, alleging it ‘knowingly’ filled millions of prescriptions that lacked legitimate medical purposes.” CNBC, 17 Jan. 2025, https://www.cnbc.com/2025/01/17/doj-sues-walgreens-prescriptions.html.Accessed January 22, 2025.
[vi] Cohen, Rebecca and Melas, Chloe. “’The Brutalist’ sparks controversy after film’s editor reveals use of AI.” NBC, 20 Jan. 2025, https://www.nbcnews.com/pop-culture/movies/-brutalist-sparks-controversy-films-editor-reveals-use-ai-rcna188457. Accessed January 22, 2025.
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