Nintendo’s Next Big Bet, Uber’s Strong Q1, and Arm’s Forecast Fumble

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Dear Money Master,

Nintendo is placing a bold bet on its upcoming Switch 2 console, projecting 15 million units sold despite looming U.S. tariffs that could disrupt its biggest market. Meanwhile, Uber is riding high after posting a surprise $1.78 billion profit, even as it faces an FTC lawsuit over subscription practices. And Arm Technologies took a hit, tumbling after issuing a weak forecast that spooked investors.

In today’s article, we explore share repurchases and how in 2024, U.S. companies broke records by spending nearly $1 trillion buying back their own stock. But why are businesses pouring billions into repurchasing shares instead of investing in growth or paying higher wages? Find out more in our app. 💷📦

📰 Your Daily Financial Digest - May 9th, 2025

🌍 Economics:

1. EU Files WTO Dispute Over U.S. Tariffs on Cars and Spirits 🚗🥃 Read More
   The EU is preparing €95B in retaliatory tariffs targeting bourbon, tequila, and aircraft parts if a deal isn’t reached. Trump’s 200% alcohol tariff threat and 25% vehicle duties triggered the move.

2. Bank of England Cuts Interest Rate to 4.25% to Counter Growth Slowdown 💷 Read More
   The rate cut, prompted by slowing inflation and tariff-related uncertainty, saw divided votes. BOE warned that global trade tensions are weakening economic outlooks.

3. China’s Exports Surge 8.1% as Trade Realigns Toward Southeast Asia 🌏
   Exports to ASEAN soared over 20%, offsetting a 21% collapse in shipments to the U.S. amid new 145% tariffs. Imports held steadier than expected, down just 0.2%. Economists warn this growth may be temporary as trade flows adapt. Read More

💻 Technology:

1. Apple Faces “Substantial” Costs From Epic Games Court Loss ⚖️ Read More
   A new ruling forces Apple to permit commission-free web links in apps. Apple claims it may lose billions as developers like Amazon and Spotify bypass App Store fees.

2. Coinbase Buys Deribit for $2.9B in Crypto’s Largest-Ever Deal 💼 Read More
   The mix of $700M cash and 11M shares positions Coinbase as a global leader in crypto derivatives, with $1T+ in annual volume now under its umbrella.

3. Trump's Crypto Ally Raises $300M for Public Bitcoin Investment Firm 🪙 Read More
   David Bailey's company "Nakamoto" will soon go public via a Nasdaq merger. It aims to hold bitcoin directly and ride the wave of crypto-favorable policies.

💹Earnings:

1. Arm Shares Plunge 8% After Soft Q1 Forecast 📉 Read More
   Despite beating Q4 estimates, Arm expects just $1B–$1.1B revenue next quarter, below forecasts. EPS outlook also trails expectations, raising concerns over future growth.

2. Uber Swings to $1.78B Profit, but Faces FTC Lawsuit 🚖 Read More
   Uber beat earnings with 83 cents/share and saw 14% revenue growth, but fell short on top-line forecasts. The FTC lawsuit targets Uber One’s cancellation practices, which CEO Khosrowshahi defends as "very simple."

3. Nintendo Misses Revenue, But Profit Surprises to the Upside 💡 Read More
   Q4 revenue dropped 25% YoY to $1.45B, slightly below estimates, but net income of $41.6M beat forecasts. Switch sales declined 31% as fans await the June Switch 2 launch.

🔍The Article of the Day: Why Are Companies Spending Billions to Buy Their Own Stock? 📈💸

S&P 500 firms are planning on repurchasing shares at a record pace of over $500 billion. The surge, led by trade war concerns and economic uncertainty, shows how companies are choosing stock boosts over long-term investments.

TLDR:

• U.S. firms announced $192 billion in buybacks last week alone, the largest since records began in 1995.

• Total repurchases over the last three months hit $518 billion, breaking all historical records.

• Uncertainty around Trump-era tariffs is causing companies to delay capital investments.

• With stock prices still below early-year highs, companies see buybacks as an opportunity to increase EPS and reward shareholders.

• Strategists now expect this wave of buybacks to support large-cap U.S. stocks despite trade volatility.

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To your financial empowerment, The Money Masters Team

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DISCLAIMER: This information is for educational purposes only and does not constitute financial advice. The publisher does not accept any responsibility for any losses incurred as a result of actions taken based on the information provided. Always conduct your own research or consult with a financial advisor before making any investment decisions.