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Time Is Money

Feb 2, 2024 • 5 min read

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U.S. vs Houthis
Amazon Earnings
Meta Earnings

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U.S. vs Houthis:

On January 31st, starting at 3:30 PM Sanaa time, U.S. Central Command (USCENTCOM) forces took action against Iranian-backed Houthi militants in Yemen by destroying a surface-to-air missile that posed an imminent threat to U.S. aircraft. Later, at 8:30 PM, the USS Carney (DDG 64) successfully intercepted an anti-ship ballistic missile fired by the Houthis towards the Gulf of Aden. Shortly afterward, at 9:10 PM, the USS Carney downed three Iranian UAVs near its location, with no reported injuries or damage.
Continuing into the early hours of February 1st, at 1:30 AM, USCENTCOM forces targeted and eliminated a Houthi UAV ground control station along with 10 one-way attack UAVs, again highlighting the imminent threat they posed to merchant and U.S. Navy ships in the area. By 5:00 AM, another UAV over the Gulf of Aden was shot down by USCENTCOM forces, maintaining the safety of the region without any casualties or damage.
Later that morning, at around 10:30 AM, USCENTCOM forces conducted strikes against a Houthi explosive uncrewed surface vehicle (USV) in the Red Sea, which was heading towards an international shipping lane, again ensuring the safety of navigation in international waters. At 12:45 PM, two anti-ship ballistic missiles launched by the Houthis impacted the water near the M/V Koi, a Liberian flagged, Bermuda-owned cargo ship in the Red Sea, without causing any harm.
The U.S. military's recent actions in the Red Sea aim to safeguard the Suez Canal, a critical maritime route that connects the Mediterranean Sea to the Red Sea, facilitating a direct path for ships between Europe and Asia. This canal is essential, handling 12% of global trade and 30% of the world's container traffic, making it a backbone for international commerce. However, due to Houthi attacks in the Red Sea, shipping companies have started to reroute their vessels around Africa, significantly impacting the canal's usage and highlighting its strategic importance.

Amazon Earnings:

Amazon's recent fourth-quarter earnings announcement surpassed analysts' forecasts, showcasing robust performance and providing a positive outlook for the current quarter. The company reported earnings of $1.00 per share, outperforming the anticipated 80 cents, with revenues reaching $170.0 billion, exceeding the expected $166.2 billion. Notably, Amazon Web Services generated $24.2 billion in revenue, aligning with expectations, while advertising revenue exceeded predictions at $14.7 billion. Looking ahead, Amazon forecasts first-quarter sales of between $138 billion and $143.5 billion, indicating an 8% to 13% growth rate, slightly above analyst expectations.
CEO Andy Jassy's strategic cost management efforts have borne fruit, evidenced by the layoff of 27,000 employees from late 2022 through mid-2023 and the downsizing of underperforming projects. In addition to workforce reductions, Amazon has integrated over 750,000 robots, including advanced humanoid digit robots, to streamline operations and replace human tasks, marking a significant shift towards automation in its fulfillment and operational processes.
The company has also made cuts across various segments, including Prime Video, MGM Studios, and Twitch, as part of its broader initiative to optimize expenses. CFO Brian Olsavsky emphasized Amazon's cautious investment strategy moving forward, clarifying that, despite a focus on efficiency, 2024 will not exclusively concentrate on cost-cutting measures. This balanced approach indicates Amazon's commitment to sustaining growth while maintaining financial prudence amidst its expansive automation and workforce management strategies.

Meta Earnings:

Meta surpassed expectations in its earnings and revenue for the fourth quarter. The company reported earnings of $5.33 per share, exceeding the anticipated $4.96 per share, and generated $40.1 billion in revenue, surpassing the expected $39.18 billion. Key metrics that investors watch, including daily active users (DAUs) and monthly active users (MAUs), also beat projections, with DAUs reaching 2.11 billion against an expected 2.08 billion, and MAUs hitting 3.07 billion versus the anticipated 3.06 billion.
For the first time, Meta announced it would distribute a dividend, setting the amount at 50 cents per share. Additionally, Meta revealed a $50 billion share buyback program, highlighting its commitment to enhancing shareholder value. The decision to issue dividends and the significant buyback program underscore Meta's strong financial health and its strategy to reward investors.

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