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Good morning investors!

If this is your first time reading, welcome to The Investor’s Edge — a thriving community of over 21,000 subscribers striving to be better investors with an edge in the market.

Every Wednesday we publish “The Mid-Week Wrap-Up” — your ticket to being well informed and staying ahead in the investment game!

This report is designed to help investors of all skill levels break down important stories/topics within the stock market. And best of all, we cut through all of the BS and give you exactly what you need to know in easy to digest, bite sized pieces of content.

This article is designed to truly give you that EDGE in the day ahead!

Grab your afternoon pick me up and let’s dive in.

Market Talk

The major indexes all higher to start the week following strong earnings and tailwinds from a new presidency.

3 Stories Moving the Market

These are some of the biggest stories so far this week that are having an influence on market action.

Netflix shares soar as company reports surging revenue, tops 300 million subscribers

Netflix shares surged 14% after the company delivered Q4 results that exceeded expectations, with earnings per share of $4.27 beating estimates of $4.20 and revenue rising 16% year-over-year to $10.25 billion.

The streaming giant added a record 19 million subscribers, surpassing 300 million paid memberships, and estimated its total global audience, including shared accounts, at over 700 million.

Netflix also reported that over 55% of new sign-ups in markets offering ad-supported tiers chose those plans, with memberships growing 30% quarter-over-quarter.

Key drivers of growth included a strong content slate, product enhancements, and seasonal trends. Notable releases such as Squid Game Season 2, live sports events, and popular films contributed to subscriber retention.

Trump announces AI infrastructure investment backed by Oracle, OpenAI and Softbank

President Donald Trump announced a landmark joint venture, Stargate, alongside OpenAI, Oracle, and Softbank, to invest between $100 billion and $500 billion over the next four years in U.S. artificial intelligence infrastructure.

Unveiled at the White House, the initiative aims to establish the U.S. as a global leader in AI and counter competition from China. Stargate’s first project, constructing data centers in Texas, is already underway.

Softbank CEO Masayoshi Son will chair Stargate, with major tech players like Microsoft, NVIDIA, Arm, Oracle, and OpenAI serving as initial technology partners. OpenAI described the project as essential to reindustrializing the U.S. and strengthening national security.

Trump emphasized the investment as a separate initiative from Son's earlier $100 billion U.S. AI commitment, positioning the venture as a transformative step in advancing the nation’s AI capabilities.

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Earnings: P&G, Johnson & Johnson, Charles Schwab and more report results

Earnings season is off to a strong start. Here’s how some of the major companies that reported this week have performed:

Procter & Gamble shares rose after beating estimates as shoppers bought more household products in the quarter. Here are the key numbers from the report:

• Earnings per share: $1.88 vs. $1.86 expected

• Revenue: $21.88 billion vs. $21.57 billion expected

Johnson & Johnson shares fell despite beating earnings and revenue expectations. Here are the key numbers from the report:

• Earnings per share: $2.04 vs. $1.99 expected

• Revenue: $22.43 billion vs. $22.17 billion expected

Abbott Labs shares increased despite missing revenue estimates and providing weaker than expected guidance. Here are the key numbers from the report:

• Earnings per share: $1.34 vs. $1.33 expected

• Revenue: $10.97 billion vs. $11.03 billion expected

Charles Schwab shares surged after reporting strong fourth quarter profit and record inflows. Here are the key numbers from the report:

• Earnings per share: $1.01 vs. $0.99 expected

• Revenue: $5.33 billion vs. $5.20 billion expected

*Note - our full breakdown of these reports, as well as several others, will be sent out in Friday’s Earnings Recap.

In Other News

In this section we'll be curating a selection of news headlines we think you'll find interesting. If a topic catches your eye, click the provided links to read more about it.

• Musk undercuts Trump’s Stargate AI investment announcement

• Meta backs Databricks as the data analytics startup inches toward IPO

• Procter & Gamble earnings beat estimates as shoppers buy more household staples

• Johnson & Johnson stock down despite beat on full-year, Q4 2024 earnings

• Jamie Dimon says Trump’s tariff policy is positive for national security so people should ‘get over it’

• Charles Schwab stock rising on Q4 earnings, record inflows

• Abbott's first-quarter profit forecast misses estimates, shares dip

• Ally Shares Soar as Expenses, Loan-Loss Provisions Decline

• United Airlines’ first-quarter outlook outpaces estimates after profits surge to end 2024

• Prologis Q4 Earnings: FFO Beat, Operating Income Surge And More

• Deep Freeze Propels Power Demand on Largest US Grid to Winter Record

The Second Half

Earnings season carries on as several major names are scheduled to report, while we get a few notable economic reports on Friday.

Earnings Reports

We will be watching earnings reports from Union Pacific and Verizon to end the week.

Here is the calendar of earnings releases scheduled for the rest of the week:

Economic Reports

The quiet week continues from an economic reports standpoint but we will get initial jobless claims, PMI data, existing home sales and consumer sentiment to end the week.

Here is the full calendar of events scheduled for the remainder of the week:

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Thank you for reading this edition of the Mid-Week Wrap-Up.

Until next time investors!

Mark & Chris

The Investor’s Edge

Disclosure

This is not investing advice. It is very important that you do your own research and make investments based on your own personal circumstances, preferences, goals and risk tolerance.