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Samsung Electronics reported fourth-quarter operating profit of 20 trillion won ($13.98 billion), more than tripling from 6.49 trillion won a year earlier, driven by the AI boom and resulting chip shortage. Revenue rose 24% to 93.8 trillion won for the October-December period. The company expects favorable market conditions to persist into the first quarter of 2026 due to continued AI-driven demand.

• Operating profit surged 208% year-over-year to a record high of $13.98 billion, meeting Samsung's own estimates
• Revenue reached 93.8 trillion won, up 24% from the previous year, fueled by surging chip prices amid AI-related shortages
• Samsung anticipates the AI boom will continue driving strong industry conditions through at least Q1 2026

Lam Research forecast third-quarter revenue of $5.7 billion (plus or minus $300 million), exceeding Wall Street's $5.34 billion estimate, driven by strong demand for chipmaking equipment. The company's second-quarter revenue of $5.34 billion also beat expectations of $5.26 billion. Rising AI application demand and the company's exposure to the memory chip and high bandwidth memory markets are fueling growth.

• Third-quarter revenue guidance of $5.7 billion (+/- $300 million) surpasses analyst estimates of $5.34 billion, with projected adjusted earnings of $1.35 per share
• Second-quarter revenue reached $5.34 billion, beating estimates of $5.26 billion, with earnings of $1.27 per share
• Strong exposure to memory chip industry positions Lam to benefit from booming high bandwidth memory demand driven by AI infrastructure requirements

Carvana's stock plummeted 14.2% Wednesday after short-seller Gotham City Research accused the online used-car retailer of overstating 2023-2024 earnings by over $1 billion through transactions with businesses controlled by CEO Ernie Garcia III's family. The allegations mark the latest in a series of short-seller attacks on the company, which faced a bankruptcy scare in 2022.

• Gotham City Research claims Carvana is 'far more dependent on related parties' connected to the Garcia family than disclosed, publishing audited financials of DriveTime and Bridgecrest (both owned by the CEO's father) obtained via Freedom of Information Act.
• The short-seller alleges Carvana's earnings depend on DriveTime's debt issuance, 'toxic' loans, and accounting irregularities, with over $1 billion in overstated earnings across 2023-2024.
• This follows previous short-seller scrutiny, including a bet against Carvana by now-disbanded Hindenburg Research last year, which made similar claims about unstable loans and accounting manipulation.

Home Depot announced it is eliminating 800 corporate positions at its Atlanta store support center and requiring all corporate employees to return to the office five days a week. The company cited goals of greater agility and closer connection with frontline workers amid challenging housing market conditions.

• Affected employees will receive separation packages, transitional benefits, and job placement support
• The cuts come as Home Depot faces weakening U.S. housing demand due to rising unemployment and high home prices, with the company projecting a bigger profit drop in fiscal 2025
• The restructuring aims to help the company 'move faster' and maintain closer ties with frontline store associates

Southwest Airlines projects a significant profit increase in 2026, forecasting adjusted earnings of at least $4 per share, well above analyst expectations. The boost comes after the carrier overhauled its 54-year-old business model by introducing assigned seating with premium charges and implementing its first-ever baggage fees in 2025.

• Southwest ended its iconic open seating policy after 54 years, moving to assigned seats with upcharges for extra legroom and preferred positions
• First quarter 2026 revenue per seat mile expected to rise 9.5%, exceeding the 8.5% analyst forecast, with adjusted earnings of 45 cents versus 33 cents expected
• The airline began charging customers for checked bags in 2025 for the first time in its history, aligning its model more closely with traditional competitors

Levi Strauss exceeded Wall Street estimates for fourth-quarter sales and profit, driven by strong demand for wide-leg denim jeans, particularly among Gen Z and younger millennial shoppers. The company reported net revenue of $1.77 billion, beating analyst estimates of $1.71 billion, despite facing pressure from higher U.S. import tariffs and dampened consumer spending.

• Net revenue rose 1% to $1.77 billion for the quarter ended November 30, surpassing the $1.71 billion analyst estimate; Europe revenues grew 8% while Americas segment fell 4%
• The company proactively secured holiday inventory ahead of schedule and implemented modest price increases to offset margin pressure from tariffs under Trump administration policies
• Levi exited lower-margin businesses (Denizen and Dockers in North America) to focus on core brand, while Beyond Yoga revenue surged 37%; fiscal 2026 revenue growth guidance of 5-6% aligns with analyst expectations

ServiceNow reported fourth-quarter results that exceeded Wall Street expectations, with revenue of $3.57 billion (versus $3.53 billion expected) and 20.5% year-over-year growth. The enterprise software company is on an acquisition spree to enhance its AI and security capabilities, including planned purchases of startups Armis and Veza, while its CFO emphasized these deals accelerate rather than replace organic growth.

• Q4 subscription revenues rose 21% year-over-year to $3.47 billion, beating the $3.42 billion estimate, while current remaining performance obligations jumped 25% to $12.85 billion
• The company issued strong guidance with fiscal 2026 subscription revenue projected at $15.53-$15.57 billion, and the board approved $5 billion for stock buybacks
• CFO Gina Mastantuono stated acquisitions are '100% not a pivot away from organic growth' but rather an acceleration, with the Armis deal expected to contribute 100 basis points to full-year subscription revenue growth

IBM reported fourth-quarter results that exceeded Wall Street expectations, with revenue rising 12% to $19.69 billion and net income reaching $5.6 billion. The company projects full-year 2026 revenue growth exceeding 5% and free cash flow to increase by $1 billion, slightly topping analyst estimates.

• Q4 revenue of $19.69 billion beat estimates of $19.23 billion, up 12% year-over-year from $17.6 billion
• IBM's generative AI book of business reached over $12.5 billion, with software revenue up 14% and infrastructure sales up 21%
• 2026 revenue growth forecast of 5%+ exceeds analyst expectations of 4.6%, with free cash flow expected to rise $1 billion from 2025's $14.7 billion

Tesla reported fourth-quarter revenue of $24.9 billion, exceeding analyst expectations of $24.79 billion, despite ongoing challenges in its vehicle business. The company announced a $2 billion investment in Elon Musk's AI startup xAI to support its self-driving and robotics ambitions. Tesla's energy storage business reached record deployments while the vehicle segment faces pressure from competition and the end of U.S. EV tax incentives.

• Tesla will invest approximately $2 billion in xAI to deepen AI capabilities for autonomous driving and robotics development
• Energy storage deployments rose 29% to a record 14.2 gigawatt-hours in Q4, representing a significant bright spot amid vehicle business challenges
• Wall Street projects 2026 vehicle deliveries of 1.77 million units (8.2% growth), though Cybercab production timelines remain vague with initial output expected to be 'agonizingly slow' according to Musk

Meta is set to report fourth-quarter earnings on Wednesday, with analysts expecting revenue of $58.59 billion as investors assess whether the company's major AI investments will pay off in 2026. The social media giant spent heavily in 2025 overhauling its AI strategy, including a $14.3 billion investment in Scale AI, while shifting resources away from VR development in its Reality Labs unit.

• Meta invested $14.3 billion in Scale AI to acquire founder Alexandr Wang and colleagues to lead its TBD unit developing advanced AI models, with a new model planned for release in first half of 2026
• Capital expenditures related to AI data center expansion are projected at $21.97 billion for the quarter, with online advertising sales expected to reach $56.98 billion
• Reality Labs unit laid off over 1,000 VR employees this month and is estimated to post a $5.67 billion operating loss on $940.8 million in sales, contributing to over $70 billion in total losses since late 2020

Microsoft reported quarterly results that slightly exceeded expectations, with Azure cloud revenue growing 39% versus the 38.8% estimate and total revenue reaching $81.3 billion. However, the marginal beat has amplified investor concerns about returns on the company's substantial AI investments amid increasing competition from Google's Gemini and Anthropic's Claude. The results come as Big Tech faces scrutiny over massive AI spending and Microsoft's relationship with OpenAI becomes more complex.

• Azure cloud division grew 39% in Q2 (October-December), barely beating the 38.8% consensus estimate, while total revenue of $81.3 billion exceeded the $80.27 billion forecast
• Microsoft's AI advantage faces new threats from Google's Gemini model and Anthropic's autonomous agents, challenging both its AI business and core software offerings
• OpenAI's recent restructuring gave Microsoft a 27% stake but also freed OpenAI to pursue other cloud partnerships, including a $38 billion deal with Amazon Web Services

The Federal Reserve held its key interest rate steady at 3.5%-3.75% on Wednesday, pausing after three consecutive quarter-point cuts. The FOMC upgraded its economic growth assessment and noted labor market stabilization, though inflation remains somewhat elevated above the 2% target. The decision comes amid tensions over Fed independence, with Chair Jerome Powell facing a Justice Department subpoena and having just two meetings left before his term ends.

• Two Trump-appointed governors (Miran and Waller) dissented, voting for another quarter-point cut rather than holding rates steady
• The Fed removed language indicating higher risk to the labor market than inflation, signaling a more balanced view of its dual mandate and a more patient policy approach
• Economic growth has been robust (Q3 at 4.4%, Q4 tracking at 5.4%), but inflation remains near 3%, well above the Fed's 2% goal, with markets pricing in at most two rate cuts in 2026

A dozen House Democrats warned 21 oil companies about legal and financial risks associated with investing in Venezuela following a January 9 White House meeting. The lawmakers cautioned that despite Trump administration assurances about controlling Venezuelan oil assets and revenues, any deals could be invalidated by Congress, a future administration, or a new Venezuelan government.

• Democratic Congressman Sean Casten led the letter stating the Trump administration failed to inform Congress of its legal basis for exerting control over Venezuela's assets
• Trump administration is encouraging U.S. oil companies to invest billions in Venezuela, which holds the world's largest crude oil reserves, and promising them a portion of sales revenues
• U.S. officials are currently working to issue a general license affecting sanctions on Venezuela's energy sector

Chevron plans to triple its Venezuelan crude oil exports to the U.S. to 300,000 barrels per day in March, up from 100,000 bpd in December, following the easing of sanctions and the fall of the Maduro government. The increase comes as Chevron drains accumulated inventories and competes with trading houses Vitol and Trafigura, which recently received U.S. authorization to export Venezuelan oil. Venezuela's interim government is expediting oil law reforms to facilitate foreign investment in the country's oil sector.

• Chevron has chartered about a dozen tankers to boost shipments and drain inventories that accumulated during the December U.S. blockade, with its joint ventures producing 240,000-250,000 bpd of heavy crude
• Chevron's Vice Chairman told President Trump the company could increase crude loading by 100% immediately and boost production by 50% within two years through infrastructure investments and equipment upgrades
• Venezuela's interim President Delcy Rodriguez is working to rapidly reform the nation's oil law to enable Trump's proposed $100 billion reconstruction plan for the country's oil industry

Apple CEO Tim Cook sent a memo to employees expressing he was 'heartbroken' by events in Minneapolis, where two people were fatally shot by federal immigration agents this month. Cook called for deescalation and revealed he spoke with President Trump about his concerns, though his attendance at a White House event on the day of one shooting reportedly angered Apple employees.

• Renee Nicole Good and Alex Pretti were shot and killed by immigration and border patrol agents operating in Minneapolis this month
• Cook attended a White House screening of the 'Melania' documentary on the same day ICU nurse Pretti was killed, drawing employee criticism
• The response contrasts with 2020 when tech CEOs spoke out prominently after George Floyd's death, while many executives have remained quiet on the current Minneapolis events

Oil prices rose on Wednesday after President Trump announced a 'massive Armada' is heading to Iran, warning that time is running out for a nuclear deal. Brent crude increased 0.81% to $68.12 per barrel, while U.S. oil climbed 1.01% to $63.02, as geopolitical tensions in the Middle East escalated with the USS Abraham Lincoln carrier strike group's deployment to the region.

• Brent crude rose 55 cents (0.81%) to $68.12 per barrel, while U.S. oil increased 63 cents (1.01%) to $63.02 by 10:33 a.m. ET
• Trump stated the fleet is larger than forces deployed to Venezuela and warned of potential 'speed and violence' if military action becomes necessary
• The president threatened that any future attack would be 'far worse' than the June bombing campaign on Iran's nuclear facilities, urging Tehran to make a deal on its nuclear program

Google agreed to pay $135 million to settle a class action lawsuit alleging its Android operating system collected cellular data from smartphone users without permission since November 2017. The settlement, which requires judicial approval, represents the largest payout in a conversion case according to plaintiffs' lawyers. Google denied wrongdoing but will implement new consent and disclosure requirements for data transfers.

• Users alleged Google collected cellular data even when apps were closed, location-sharing was disabled, or screens were locked, using it for product development and targeted advertising
• Individual payments are capped at $100 per class member, while plaintiffs' lawyers may seek up to $39.8 million (29.5%) in legal fees from the settlement fund
• Google will now require consent during phone setup, provide easier toggle controls to stop data transfers, and disclose data collection practices in Google Play terms of service

Allbirds announced it will close all full-price U.S. stores by end of February to focus on e-commerce and boost profitability. The sustainable shoe company will maintain two U.S. outlet stores and two full-price London locations. This marks the latest shift by a direct-to-consumer brand away from physical retail amid rising costs and declining store performance.

• Net revenue fell 23.3% year-over-year in the latest quarter, with U.S. store revenue down roughly 20% due to store closures and distributor changes
• The company's stock has plunged over 80% in the past two years, leaving it with a $32 million market cap
• CEO Joe Vernachio described the closures as 'exiting unprofitable doors' to reduce costs and support the turnaround strategy after two years of gradual store reductions

Brazilian digital bank PicPay is expected to price its New York IPO at $19 per share, the top of its indicated range, marking Brazil's return to U.S. markets after a four-year absence. The offering has attracted over $4.5 billion in demand, approximately ten times the amount the company aims to raise, demonstrating strong investor appetite.

• IPO priced at top of $16-$19 range with demand exceeding $4.5 billion, roughly 10x the target raise amount
• This represents the first Brazilian issuer to list in New York in four years, ending a significant drought
• PicPay previously attempted a U.S. listing in 2021 but withdrew due to unfavorable market conditions

Automatic Data Processing (ADP) raised its annual revenue forecast to 6% growth and beat Q2 profit estimates, driven by steady demand for payroll and HR services. The company reported Q2 revenue of $5.36 billion, exceeding analyst expectations of $5.34 billion. ADP's pay-per-control metric, tracking employees on client payrolls, rose 1% year-over-year.

• ADP raised its annual revenue growth forecast to 6%, up from the previous range of 5% to 6%
• Second quarter revenue of $5.36 billion surpassed analyst estimates of $5.34 billion
• U.S. pay-per-control metric increased 1% year-over-year, consistent with growth in the past three quarters, reflecting muted layoffs in the labor market