Finimize - 📈 The Fed hikes rates again

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Today's big stories

Uber reported strong quarterly results, as people order deliveries and rides alike
Our analyst looked into why Buffett is suddenly buying the dip – Read Now
AMD reported better-than-expected quarterly results, having formed some savvy partnerships

Hard Day’s Perk

What’s Going On Here?

Uber posted strong quarterly results on Wednesday, after the ride-hailing app did whatever it took to get this show on the road.

What Does This Mean?

Uber’s a weird beast: the company is made up of a “delivery” segment – think Uber Eats – that benefited from lockdowns, and a “mobility” segment – its ride-hailing app – that didn’t. But both emerged from the pandemic stronger than ever, with the value of bookings from its mobility segment up 58% last quarter on the same time last year, and those from its delivery segment up 12%. The company even said it saw more worldwide ride-hailing bookings last month than it did in April 2019, which might be why it reckons it’s on track to return to pre-pandemic levels later this year.

Why Should I Care?

The bigger picture: Uber sweetens the deal.
Uber and rival Lyft have been struggling to hire enough drivers to keep up with this rebounding demand, which has left them trying to win new starters over with higher wages and trip-based bonuses. The two are taking very different approaches from here on out, mind you. Lyft said earlier this week that it’s planning to keep forking out on incentives – an admission that didn’t exactly play well with the company’s investors. Uber, for its part, is opting for a cheaper tactic: it’s planning to improve the drivers’ in-app experience instead. Tough choice.

Zooming out: Here comes another rate hike.
Uber’s hiring issues aren’t a surprise: data out this week showed there were 5.6 million more US job openings than there were jobseekers in March (tweet this). That’ll only force companies to keep offering higher wages to stand out, with the extra disposable income bound to drive inflation even higher. So it stands to reason that the Federal Reserve is stepping in: the central bank increased interest rates by 0.5% on Wednesday – the biggest hike since 2000 – and said it’ll start reducing some of its $9 trillion worth of bonds next month.

You might also like: Wait, is inflation actually coming to an end?

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Analyst Take

Why Is Lord Buffett Suddenly Buying The Dip?

Warren Buffett’s Berkshire Hathaway has been on a buying spree recently.

The conglomerate’s used the latest dip as an opportunity to buy a net $41 billion worth of stocks – the most it’s snapped up in a single quarter since 2008.

That started with PC-maker HP and insurer Alleghany, and it’s just revealed that it upped its stakes in Chevron and Activision Blizzard.

As for why he’s chosen these stocks, and why now, that could provide a useful insight into what you do with your own portfolio. After all, it’s good enough for Buffett…

So that’s today’s Insight: why the Oracle of Omaha is suddenly a-go, and what’s on the shopping list.

Read or listen to the Insight here

Is bitcoin coming back?

Crypto’s top dog has been in a slump for a few months now.

But there might be a turnaround soon: TradeStation analysts have recently discussed patterns that suggest the cryptocurrency could be rising again.

See for yourself: TradeStation used its TradingView tool to create the above chart, which shows an uptick in bitcoin’s simple moving average – a historic indicator of previous bullish turns.

Now’s the time to trade bitcoin’s potential rise: get a $150 bonus when you sign up to TradeStation.

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