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<ul class="summary-list"><li>Netflix makes money. A lot of money.</li><li>This is not news now. But a few years ago, when the company was burning billions a year, it wasn't a foregone conclusion.</li></ul>Netflix made a lot of money in the last three months.Yawn. What else is new? <a target="_blank" href="https://www.businessinsider.com/netflix-stock-historic-high-chart-streaming-2024-9">Netflix is the clear winner of the streaming wars</a>, and every quarter, it gets another chance to demonstrate that. Like it did on Thursday when it added another <a target="_blank" href="https://www.businessinsider.com/netflix-new-subscriber-numbers-beat-expectations-2024-10">5 million subscribers</a>.But read that first sentence again. It isn't just that Netflix is far ahead of its rivals when it comes to subscribers and revenue. Netflix is actually bringing in so much money that it is turning a profit, while its competitors struggle to break even.A lot of profit: $2.3 billion in net income, off of $9.8 billion in revenue. By the end of the year, the company thinks it will have generated $8.7 billion in profit.Don't expect anyone to hold a parade to honor Netflix's achievement. Wall Street expects this kind of performance from Netflix, which is why its stock is near an all-time high.But it's still worth noting because not very long ago, lots of very reasonable people thought Netflix might never get here.That's because Netflix used to be in the business of burning cash — billions of dollars worth a year — as it built a lead in the streaming wars by licensing other people's TV shows and movies, and making its own. And Netflix financed all that cash incineration by taking on many billions of dollars in debt.By the end of 2020, the company had more than $15 billion in long-term debt, and a concern you heard all the time from Netflix bears was: "It's great that they're spending all this money on content, but when are they going to pay for it?"The Netflix answer went something like: "Trust us: All the money we spend on content — especially content we own, forever — is money well-spent because it means we can attract more customers, who will give us more money. And eventually, we'll have so many customers, and so much money, that we won't have to borrow any more to keep this going."And then they pulled it off: In January 2021, Netflix said it no longer had to tap the debt market to pay for its operations (though it has since borrowed more money to pay off some of its older debt). And things have been booming since.The best way to see the turnaround is by looking at Netflix's free cash flow — the money it has on hand after it pays for its day-to-day operations. In 2019, Netflix had negative cash flow of $3.3 billion. <a target="_blank" href="https://s22.q4cdn.com/959853165/files/doc_financials/2023/q4/NEW-FINAL-Q4-23-Shareholder-Letter.pdf">By the end of 2023</a>, it had swung to positive $6.9 billion.That doesn't mean Netflix is going to go hog-wild on spending now that its thesis has been borne out. The company has made it clear to Wall Street that after years of increasing programming budgets, it is going to keep things flat for a while.Meanwhile, it knows investors want more money and more profit, which is why it is pursuing multiple things it used to say it would never do: like sell ads, and <a target="_blank" class="" href="https://www.businessinsider.com/netflix-password-sharing-crackdown-worked-how-to-increase-subscription-streaming-2024-1">make it hard for people "share" passwords</a>.Its competitors are trying similar gambits — but with much smaller user bases, and more constrained programming budgets, which makes it that much harder for them to compete.Which is not news if you've been following the company (again, <a target="_blank" href="https://www.businessinsider.com/netflix-stock-historic-high-chart-streaming-2024-9">see this stock chart</a>). Still, good to keep in mind.

Netflix is rolling in cash. What a turnaround!

George Wilson learned the hard way that there's no such thing as a free lunch — or, in his case, a free dinner that cost him a chunk of his retirement savings.As a retiree, he regularly received postcards in the mail, offering to teach him about finance and how to make money in retirement. They usually involved a presentation at a nice restaurant, and he would go without acting on any of the investment advice.But on one occasion, Wilson did take the bait after a brochure he received in 2010 inviting him to an evening at Ruth's Chris Steak House ended up costing him $158,000."It was a very good restaurant. And so, of course, it caught my attention," Wilson said in an interview.At that fateful dinner, he enjoyed his favorite top sirloin steak, asparagus tips, and a "fabulous" chocolate cake. He also met David Escarcega, one of the hosts and a broker who would eventually advise him to invest in so-called non-correlated, fixed-income alternative products from the <a target="_blank" class="" href="https://www.investmentnews.com/alternatives/gwg-holdings-files-for-bankruptcy/220355">now-bankrupt firm GWG</a>.Years later, Wilson is still fighting to regain what he lost from that investment. An arbitration decision recently awarded him $267,252 in compensation, including emotional distress damages from the last broker who facilitated the transaction. But the respondent only paid approximately $103,363.40 toward sanctions and the award. After costs, Mr. Wilson will end up with almost no payout, according to his attorney.Fancy restaurants with presentations are a common practice in the industry, says financial planner Michael Murray, adding that there are services that provide mailing lists of people with a certain net worth, and retirees are often on them because it's where wealth tends to be concentrated.But those meals aren't really free, Murray said. They're predominantly set up to sell high-commission products. In GWG's case, brokers earned up to 8% in commissions. What advisors can earn from one of these events pays for the meals and more. Picture a scenario where an advisor signs up $500,000 worth of investments with an 8% commission rate; that's a $40,000 payout. The math is very favorable for those who do this regularly, he added.Meanwhile, invitees feel like the hosts have done something nice for them and there's an implication that they should do something back, Murray noted. "So I think certain people will go to these dinner seminars and almost feel an obligation to work with someone."They're referred to as "free lunch seminars," said Adam Gana, a securities attorney who worked on Wilson's case. They're common in the industry. But Gana says that when brokerage firms offer them, he tells clients to run the other way."We see them all the time," Gana said. "I've represented 3,000 investors over the last 15 years, and in so many of those instances when we're dealing with a horrific product, a non-traded product, a product that's just terrible for investors, it usually starts with a free lunch."<h2 id="74285f86-a363-43ff-b132-9ec411f82f14">Risky business</h2>After the dinner, Wilson and his ex-wife Jean followed up with Escarcega at his office to discuss alternative investment options."We sat down with him, and he went through various opportunities that he could present to us, and we asked for several," Wilson said. "And the one that seemed the most attractive and that he extolled the virtues of the most was GWG. And so we thought about it for several weeks and went back and forth and then ultimately decided to do it."The products were non-publicly traded so-called LifeNotes, high-yield debt securities that paid a 9% monthly interest rate by GWG Holdings, according to documents viewed by Insider. They were based on life insurance policies purchased on the secondary market, with the expectation that death benefits would be paid to GWG's bondholders when the insured died. One brochure, viewed by Insider, advertised them as a "secured investment backed by a large portfolio of high-quality life insurance policies""Escarcega had pitched them as a safer alternative to the volatile stock market that could provide steady dividend payouts while preserving the principal investments, Wilson said."Of course, we want to leave our equity to our children but have some kind of income coming from it while we're still here," Wilson said. "And so that was very attractive to us, that we preserve our equity."Wilson initially purchased $180,000 worth of the notes using funds from his IRA, according to documents viewed by Insider. He later reduced his investment to $158,000 and flipped it to GWG preferred stock. For the next few years, things were looking good. Wilson received payouts monthly. In 2017, he decided to renew his investment, according to documents viewed by Insider.What he didn't know was that by then, Escarcega had been barred from selling securities after misrepresenting investment risks, according to FINRA. So Escarcega used his brother Adrian's license to submit the transactions through AGES Financial Services, according to arbitration documents from Wilson's attorneys. The Escarcegas could not be reached for comment.It was one of many details Wilson wasn't aware of. Thus far, the payouts had always been timely, he said. So, there was no reason to suspect there were problems. But there were. GWG's balance sheet wasn't adding up. FINRA had determined that it hadn't been profitable in over a decade. The firm had been selling new bonds to pay dividends to existing bondholders. The underlying collateral wasn't generating an income and multiple accounting firms refused to audit it, according to the amended statement of claim.The doom loop would eventually come to a screeching halt due to GWG's accounting issues, an SEC investigation, and failure to file its annual SEC report. By 2021, it could no longer sell bonds which led to its bankruptcy by 2022 and the halting of dividend payments, according to the amended statement of claim.Craig McCann, a consultant providing expert testimony in investment cases, including this one, said that GWG's insurance contracts were being overvalued on its balance sheet and the firm was assuming that people would die earlier. As a result, they estimated receiving the death benefits sooner. Simply put, there were not enough benefits being paid on the insurance contracts to cover the interest and principal due."There were lots of signals," McCann said. "There were lots of problems with their SEC filings and lots of reasons to believe that it was imminently going to happen, but most investors were very unsophisticated investors."In 2019, <a target="_blank" class="" href="https://www.investmentnews.com/alternatives/clients-win-another-gwg-bond-claim-this-time-against-b-d/245442">AGES had ended its relationship with GWG</a> due to a change in the company's business model, according to the firm. But Wilson says he was not informed by the firm, <a target="_blank" class="" href="https://www.investmentnews.com/fixed-income/investors-claiming-emotional-distress-damages-win-lawsuit-involving-gwg-bonds/257068">preventing him from selling his shares in time</a> (AGES disputes this). An arbitration panel found that the investment scheme was so egregious that they awarded him $267,252.00 in compensation that included emotional distress damages, according to the order. AGES paid $103,000 for all claimants.<h2 id="9e594bc3-8860-404f-8b63-aeb5d0906705">Risk reward</h2>Wilson's situation is a cautionary tale. He used his IRA to make the investment, so he's also faced with a required minimum distribution, which includes the amount invested in GWG even though it's nominal. He told Insider he must withdraw from other investments to meet the minimum.His case isn't an isolated one. There may have been thousands of brokers selling GWG bonds, based on data pulled from ADV filings as reported by McCann. Wilson says he lives with the guilt of advising his ex-wife and a friend who also invested in the bonds and lost their principal.Truth be told, it's difficult for the average retiree who is not financially savvy to understand the mechanics of many of these alternative investments, even when there are red flags, Murray said. Non-publicly traded investments take time to build capital before generating free cash flow. For those with lower cash reserves, they don't make much sense because they lack liquidity, he added.But Murray also emphasized that not all alternative investments are bad. He just thinks that if you're considering them, you must be financially savvy and have the ability to dig into offering statements, look at fee structures, and related party transactions. Even then, investors should resort to a second opinion from a fiduciary advisor, a CPA, or an attorney.Finally, understand that risk and reward are always tied together. Outsized promises of yields that are much higher than, say, the 10-Year Treasury is a red flag and means there's elevated risk, Murray said.

How a free meal cost an investor his retirement savings

<ul class="summary-list"><li>Amazon's cash balance is expected to reach almost $400 billion by 2027, far outpacing tech rivals.</li><li>This cash gusher stems from record profits, cost-cutting, and success in cloud and advertising.</li></ul><a target="_blank" class="" href="https://www.businessinsider.com/amazon-could-cut-managers-save-3-billion-analysts-2024-10">Amazon</a>'s ballooning cash balance is drawing Wall Street's attention.The company is on pace to have $127.4 billion in cash and short-term investments by the end of this year, tripling the amount from 2018 and surpassing $100 billion for the first time, according to consensus estimates compiled by S&amp;P Global Market Intelligence.That would give Amazon more money than rivals <a target="_blank" class="" href="https://www.businessinsider.com/google-cfo-analysts-ai-subscription-growth-2024-9">Alphabet</a> and <a target="_blank" class="" href="https://www.businessinsider.com/microsoft-spreadsheet-shows-pay-engineers-2024-8">Microsoft</a>, each expected to have about $112.8 billion and $108.1 billion in cash by that time, respectively. The data showed that even Apple, which puts some of its cash in long-term securities, would fall behind Amazon by next year.By 2027, Amazon is forecast to have almost $400 billion in cash, far outpacing its Big Tech rivals.This is an astounding transformation for a company that is famous for running on thin margins, reinvesting most of its profits, and holding relatively little cash compared to peers. Wall Street is closely following this and questioning whether Amazon plans to return some of its cash in the form of buybacks or dividends. When cash balances surged at other Big Tech companies in the past, the pressure mounted and they started returning some of the money to shareholders.Mark Mahaney, a tech analyst at Evercore, said he has asked Amazon about shareholder returns for years, but it doesn't appear to be a "near-term priority" at this point.Still, he was struck by the sheer size of the company's growing cash hoard."It's hard to see why Amazon would need THAT MUCH cash on its balance sheet," Mahaney wrote in an email to BI. An Amazon spokesperson declined to comment.<h2 id="bd05e4c2-f723-404d-af01-e33b0ba9876c">Pressure to return</h2>Amazon's cash increase is largely being driven by <a target="_blank" class="" href="https://www.businessinsider.com/amazon-andy-jassy-wall-street-analyst-praises-turnaround-effort-2024-7">record profits</a> from cloud computing, advertising, and improved efficiency, including cutting costs.The company's free cash flow is expected to nearly double from $36.8 billion last year to $70.8 billion in 2025, according to estimates compiled by S&amp;P Global Market Intelligence.Hopes for an Amazon dividend or at least more share buybacks gained traction in recent quarters after other tech companies, including Alphabet, Meta, and Salesforce, started returning more of their cash to shareholders earlier this year. Apple and Microsoft have paid dividends for years.Evercore's Mahaney said the chances of an Amazon dividend are "pretty low" for the next 2 to 3 years. He thinks a sustained share buyback program is more likely to happen first. Amazon approved a $10 billion stock repurchase plan in 2022, but hasn't added to this since.Mark Shmulik, an analyst at Bernstein, told BI that Amazon's expected free cash flow for the next few years is "significant," and investors are "certainly asking" for some type of return.Morgan Stanley, in a note published this week, also said Amazon's growing cash balance "creates a higher probability of capital returns" next year.Gene Munster at Deepwater Asset Management told BI that demands for shareholder returns will likely increase next year when he expects investors will become more confident about Amazon's ability to maintain its pile of cash. Despite the "remarkable" growth in Amazon's cash balance, the company hasn't been as aggressive as other tech companies in rewarding shareholders, he noted."A year from now, I think there'll be a lot of pressure for Amazon to do more," Munster said.<h2 id="0607f36d-1e3f-4cbc-8c90-93d4f205247c">AI is the wild card</h2>Investors have reasons to be happy about Amazon's performance. Its stock is up roughly 40% in the past year, outpacing the broader market. CEO Andy Jassy's <a target="_blank" href="https://www.businessinsider.com/amazon-andy-jassy-wooed-wall-street-overhauled-bloated-tech-giant-2024-7">turnaround efforts</a> have resulted in record profits and renewed investor confidence.During an April call with analysts, Amazon CFO Brian Olsavsky addressed the question about shareholder returns. He said the company had nothing to say at that point, adding the priorities are growth opportunities and long-term investments, as well as debt repayment. Jassy wrote in his annual shareholder letter that Amazon will continue to invest in artificial intelligence, its nascent Kuiper satellite network, and Prime Video content.Any large acquisition may be off the table for now, given the tough regulatory environment. The Federal Trade Commission, for example, terminated Amazon's proposed acquisition of iRobot earlier this year.Artificial intelligence could be a wild card. Amazon is in an arms race for AI supremacy against Microsoft, Alphabet, OpenAI, and Meta, putting more pressure on the company to invest in the space. In August, Olsavsky said capital expenditures will increase in the second half of this year -- up from an eye-watering $30.5 billion in the first half of 2024.Deepwater's Munster said depending on how the AI battle plays out, investors could give Amazon more room to invest, rather than rewarding shareholders. AWS's growth rate has bounced back in recent quarters, and competition with Microsoft is only intensifying, he added."If AWS continues to accelerate growth, investors will say, 'Let's keep funding this,'" Munster said.Do you work at Amazon? Got a tip?Contact the reporter, Eugene Kim, via the encrypted-messaging apps Signal or Telegram (<a target="_blank" rel="noopener noreferrer nofollow" class="c-link">+1-650-942-3061</a>) or email (<a target="_blank" href="mailto:ekim@businessinsider.com">ekim@businessinsider.com</a>). Reach out using a nonwork device. Check out Business Insider's <a target="_blank" rel="" href="https://www.businessinsider.com/insider-guide-to-securely-sharing-whistleblower-information-about-powerful-institutions-2021-10">source guide</a> for other tips on sharing information securely.

Amazon is becoming Big Tech's king of cash, and Wall Street wants a piece of it 

<keyword id="19938772" type="General" weightage="20" keywordseo="Reliance-Industries-Ltd" source="keywords" meta.keywordsubtype="org" meta.entityname="Reliance Industries Ltd" meta.hostid="267" meta.entityid="Reliance Industries Ltd">Reliance Industries Ltd</keyword> has won a vote of confidence from global rating agencies <keyword id="20043943" type="General" weightage="20" keywordseo="SP" source="keywords">S&amp;P</keyword> and <keyword id="19950093" type="General" weightage="20" keywordseo="Fitch" source="keywords">Fitch</keyword> after its robust earnings in the fiscal year ended March 31, 2024, supported its growth aspirations and kept leverage under check. S&amp;P Global Ratings and Fitch Ratings in separate notes spoke of its <keyword id="19957744" type="General" weightage="20" keywordseo="EBITDA" source="keywords">EBITDA</keyword> (loosely known as pre-tax profit) rising in the current fiscal year and next on rising revenue and past investments. "<keyword id="19896380" type="General" weightage="20" keywordseo="Reliance-Industries" source="keywords">Reliance Industries</keyword> Ltd's (<keyword id="20002939" type="General" weightage="20" keywordseo="ril" source="keywords">RIL</keyword>) strong earnings will keep leverage in check as the company continues to pursue growth ambitions. We expect the company's debt-to-EBITDA ratio to remain commensurate with the rating (BBB+/Stable/--)," S&amp;P said in a note. The oil-to-telecom-and-retail conglomerate's growth aspirations remain intact, it said, adding the company has ramped up investments in the media business in recent months. In 2024, it entered into binding definitive agreements with The Walt Disney Co for a media joint venture in which RIL will invest Rs 11,500 crore. The company subsequently agreed to buy Paramount Global's 13.01 per cent stake in local entertainment network Viacom18 Media Pte Ltd for about Rs 4,300 crore. "These investments are in line with RIL's strategy to diversify and have a strong presence in a few key industries," the rating agency said. Also, the company received government approval in 2024 to develop gas reserves in the KG-D6 block in the Bay Of Bengal. This could increase the company's gas production capacity by 13-17 per cent. RIL's earlier announced investments include a Rs 75,000 crore expansion plan over five years (starting 2022) for the oil-to-chemicals business. "RIL's earnings will benefit from past investments," S&amp;P said. "We project the company's adjusted EBITDA will rise 2-4 per cent in fiscal 2025 (year ending March 31, 2025)," it added. Just as in the past two years, the digital services segment (Reliance Jio Infocomm Ltd) will be the key growth driver, with segment's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortisation) increasing 10-12 per cent in fiscal 2025. Reliance Jio's wireless subscriber base and average revenue per user will gain from the company's investments in its 5G network since late 2022. Meanwhile, earnings in the oil and gas as well as retail segments will reap the rewards of increased production volume and a wider retail store network. "The EBITDA improvement that we expect in fiscal 2025 comes after a 14 per cent increase to Rs 1.6 lakh crore in fiscal 2024," it said. S&amp;P saw RIL's rising earnings providing it greater balance-sheet flexibility for growth. "We expect the combination of robust operating performances and continued spending to keep the company's debt-to-EBITDA ratio at 1.8x-2.0x over the next two years. This compares with our estimate of 1.7x for fiscal 2024 and our downgrade trigger of 2.5x," S&amp;P said. RIL's leverage has some distance from the upper end of the company's internal leverage target. RIL has reiterated its intention to keep its net debt-to-EBITDA ratio (by its own calculations) below 1x. The ratio was 0.65x as of March 31, 2024. Separately, Fitch Ratings said RIL's EBITDA net leverage is likely to remain below 1x in the medium term, supported by increasing cash flows and lower capex intensity, even as the conglomerate's absolute capex and investments remain high in the near term. "We expect RIL's EBITDA to increase by 8 per cent year-on-year in the financial year ending March 2025 (FY25) and 14 per cent in FY26, while capex intensity (capex/revenue) is likely to reduce below 13 per cent by FY26 (FY24: 15.3 per cent). Lower capex intensity would be driven by growing revenue and reduction in capex after FY25," it said. Fitch expected the conglomerate's Cash Flow from Operations (CFO) to be sufficient to fund its capex from FY26, which will limit additional debt funding and keep its EBITDA net leverage below 1.0x in the medium term (FY24: 0.9x, FY23: 1.1x). "Fitch estimates RIL's FY24 EBITDA net leverage at 0.9x, better than our expectation of 1.1x, driven by marginally higher EBITDA and Rs 20,900 crore of equity raised mainly from the sale of a stake in a subsidiary, even as its capex remained high at Rs 1.5 lakh crore (FY23: Rs 1.4 lakh crore)," the rating agency said in a statement. It rates RIL at 'BBB'/Stable, one notch above India's rating (BBB-/Stable). "We expect the EBITDA increase in the near to medium term to be driven by the telecom and retail businesses, supported by contribution from the upstream oil and gas segment and marginal recovery in petrochemical spreads in the oil to chemical (O2C) segment," Fitch said, adding EBITDA from digital services, largely telecom, is likely to benefit from a 10-15 per cent tariff hike and 15-20 million of additional subscribers in FY25 (FY24: 482 million subscribers). Digital services EBITDA rose by 13 per cent in FY24, as Reliance added 42 million subscribers and monthly average revenue per user increased to Rs 182. Monthly user data consumption increased by 24 per cent to 28.7 GB, one of the highest globally. Fitch expected retail EBITDA to increase by 20-25 per cent in FY25 (FY24: 28%) as Reliance continues to expand its physical stores and digital channels. EBITDA would be supported by a 22.2 per cent increase in its registered customer base to 304 million in FY24. Also, O2C segment EBITDA is expected to remain above Rs 60,000 crore in FY25 (FY24: Rs 62,400 crore), as a gradual improvement in petrochemical spreads from FY24 lows is expected as a supply overhang recedes. Upstream oil and gas EBITDA should stay at around Rs 20,000 crore in FY25 (FY24: Rs 20,200 crore), assisted by the expectation of a 10 per cent increase in gas production in the first full year of operation of three gas fields in the KG-D6 block, which should offset the potential reduction in price realisation with lower gas prices in international benchmarks. SEE ALSO: <a href="https://www.businessinsider.in/stock-market/news/jnk-india-ipo-allotment-how-to-check-allotment-gmp-listing-date-and-more/articleshow/109597273.cms">JNK India IPO allotment – How to check allotment, GMP, listing date and more</a> <a href="https://www.businessinsider.in/tech/news/jiocinema-introduces-new-ad-free-premium-plans-starting-at-29/articleshow/109581033.cms">An Ambani disruption in OTT: At just ₹1 per day, you can now enjoy ad-free content on JioCinema</a> <a href="https://www.businessinsider.in/business/auto/webstories/ultraviolette-f77-mach-2-electric-sports-bike-launched-in-india-starting-at-2-99-lakh/slidelist/109615934.cms">Ultraviolette F77 Mach 2 electric sports bike launched in India starting at ₹2.99 lakh</a>

Reliance gets thumbs-up from S&P, Fitch as strong earnings keep leverage in check

Paytm, leading payments and financial services company, on Friday said it has achieved operating profitability with <keyword id="63060" type="General" weightage="20" keywordseo="ebitda" source="Orion">EBITDA</keyword> before ESOP cost at Rs 31 crore, much ahead of its September 2023 guidance. Paytm's revenue from operations increased to Rs 2,062 crore (no <keyword id="6358921" type="General" weightage="50" keywordseo="upi" source="Orion">UPI</keyword> incentive recorded this quarter), a growth of 42 per cent YoY and 8 per cent QoQ. The growth was driven by increased adoption by consumers and subscription services by merchant partners along with sustained growth seen in loan distribution and commerce business, said the company. Paytm's founder and CEO <keyword id="914589" type="General" weightage="80" keywordseo="vijay-shekhar" source="Orion">Vijay Shekhar</keyword> <keyword id="445" type="General" weightage="20" keywordseo="sharma" source="Orion">Sharma</keyword> wrote a letter to shareholders announcing the achievement. "This has been made possible due to the relentlessly focused execution by our team. The team was asked to focus on growth with quality revenues that contribute to the bottom line. We have achieved this milestone without losing sight on growth opportunities and keeping all compliances as well as risk factors under a strict watch," he said. Contribution profit was Rs 1,048 crore in the quarter, with margins consistently improving from 31 per cent in December 2021 to 51 per cent in December 2022 on account of improved profitability of payments business and increased mix of high margin businesses such as loan distribution. Net payment margin grew to Rs 459 crore (up 120 per cent YoY) on back of improved profitability in the payments business. Paytm's EBITDA before ESOP margin stood at 2 per cent of revenues as compared to (27 per cent) a year ago, due to sustained improvement in contribution profit and strong operating leverage. The company said it continued to witness strong revenue momentum across its businesses. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/adani-enterprises-sbi-life-hdfc-life-among-stocks-in-focus/articleshow/97567830.cms">Sensex, Nifty50 close in the green powered by financial services and auto stocks</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/corporates/news/adanis-stock-rout-can-impact-its-ability-to-raise-capital-or-refinance-debt-says-moodys/articleshow/97582403.cms">Adani’s stock rout can impact its ability to raise capital or refinance debt, says Moody’s</a>

Paytm founder announces operating profitability, says free cash flow generation is next

Happy hump day. <a href="https://twitter.com/dandefrancesco">Dan DeFrancesco</a> checking in from NYC. We're onto the quarterfinals of the World Cup, and <a href="https://www.businessinsider.com/top-programming-languages-on-wall-street-2022-11">three of my four semifinalist picks are still alive</a>. Today we've got stories on <a href="https://www.businessinsider.com/bonus-predictions-by-wall-street-insiders-defy-gravity-efinancial-careers-2022-12">cognitive dissonance among bankers when it comes to bonus season</a>, the <a href="https://www.businessinsider.com/cloudverse-100-top-people-building-the-next-generation-internet-2022-11">100 most important people in cloud computing</a>, and <a href="https://www.insider.com/what-are-dabloons-tiktok-fake-currency-meme-2022-12">TikTokers creating their own made up currency (not a crypto joke)</a>. But first, talk positive EBITDA to me. If this was forwarded to you, <a href="https://www.businessinsider.com/subscription/newsletter/10-things-on-wall-street">sign up here</a>. Download Insider's app <a href="https://www.insider.com/app">here</a>.<a href="https://www.businessinsider.com/kkr-private-equity-investment-strategy-digital-2022-12"></a>1. Show me the cash flow.When will private equity get involved?As the markets continue to sour, and a recession looms, everyone's wondering when PE firms will begin scooping up assets. It is the million (or perhaps billion) dollar question. However, those hoping for a dealmaking free-for-all might be a bit disappointed, according to one PE executive. Joseph Bae, the co-CEO of KKR, outlined areas the firm will be interested in and places it's steering clear of while speaking at Goldman Sachs US Financial Services Conference in New York, <a href="https://www.businessinsider.com/kkr-private-equity-investment-strategy-digital-2022-12">Insider's Rebecca Ungarino reports</a>. High on Bae's wishlist are "all things digital," he said, with one giant caveat: profitability. Companies with high valuations that have yet to turn a profit are a no go, Bae said. And while that might seem fairly obvious — would you like to buy something that's expensive AND doesn't make money? — it's an important distinction. There are plenty of companies doing fascinating things in the digital space, but many have yet to reach profitability (*cough* fintechs *cough*). Which begs the question: Where do those highly-valued-but-unprofitable companies end up?Let's review the landscape:Public markets: Not an option unless you have a death wish.Venture funding: <a href="https://www.businessinsider.com/vc-startup-investors-ramp-up-deals-after-summer-slowdown-2022-9">Can I interest you in a down round?</a>M&amp;A market: See all of the above. What we're left with is a game of chicken, as acquirers and companies stare each other down, waiting for the other to blink.Can startups withstand their cash burn and wait until the market turns? Can PEs and VCs hold off investors pushing them to put their money to work, which has been sitting on the sidelines?The only thing I'm sure of is that the bankers won't be happy until somebody blinks. <a href="https://www.businessinsider.com/kkr-private-equity-investment-strategy-digital-2022-12">Click here to read more about KKR's investment strategy from its co-CEO.</a>KKR is a large shareholder in Axel Springer, which owns Insider.In other news:<a href="https://markets.businessinsider.com/news/currencies/goldman-sachs-plans-spend-millions-crypto-company-investments-ftx-report-2022-12"></a><div type="image" title="Wall Street crypto graphic" height="5303" width="7071" msid="96058588" hostid="261" sizebytes="239398"></div>2. Everyone on Wall Street realizes bonuses are going to suck, but no one thinks their bonus is going to suck. The majority of traders and investment bankers are expecting a bump in their year-end comp despite all signs pointing to a brutal bonus period, according to a recent survey. <a href="https://www.businessinsider.com/bonus-predictions-by-wall-street-insiders-defy-gravity-efinancial-careers-2022-12">Read more about why Wall Streeters are all overly optimistic</a>.3. Meet the people leading the cloud revolution. Insider mapped out the 100 most important people working in cloud computing. <a href="https://www.businessinsider.com/cloudverse-100-top-people-building-the-next-generation-internet-2022-11">Check out the entire list here to get up to speed on the key leaders in the space</a>. 4. Jamie Dimon still thinks crypto is a scam, except for the stuff his bank is doing. JPMorgan's CEO, long a critic of digital assets, called crypto "a complete sideshow" and likened tokens to "pet rocks." However, smart contracts and blockchain tech, <a href="https://www.jpmorgan.com/insights/technology/blockchain-in-space">areas the bank are investing in</a>, are fine. <a href="https://www.businessinsider.com/jamie-dimon-crypto-tokens-ftx-exchange-pet-rocks-markets-economics-2022-12">More on Dimon's comments here</a>. 5. YOLO...but in case it's for a while you probably want a retirement plan. Robinhood, the trading app that played a key role in last year's meme-stock frenzy, is launching traditional and Roth IRAs for users. <a href="https://markets.businessinsider.com/news/stocks/robinhood-retirement-accounts-retail-trading-meme-stocks-slumps-roth-ira-2022-12">More on the company's plans</a>. 6. Death of downtown. One of the biggest casualties of the rise of remote work has been cities' commercial districts, which, in some cases, have turned into ghost towns. <a href="https://www.businessinsider.com/remote-work-gutted-city-downtowns-office-real-estate-apocalypse-2022-12">Read more about the knock-on effects of people not returning to the office</a>. 7. Goldman Sachs is going dumpster diving for crypto companies. Chaos in the crypto markets is creating investing and acquisition opportunities for the bank, according to Matthew McDermott, Goldman's head of digital assets. <a href="https://markets.businessinsider.com/news/currencies/goldman-sachs-plans-spend-millions-crypto-company-investments-ftx-report-2022-12">Read more here on the bank's plans</a>. 8. Getting into risk management is a safe bet these days. Fintechs branching out into new industries that have to meet regulatory requirements are on the hunt for risk officers. <a href="https://www.businessinsider.com/risk-officers-next-hot-hire-fintechs-investors-payments-management-2022-11">Here's more on why risk management is so in demand right now</a>. 9. Citi might actually get money back from that fat-finger mistake. The bank, <a href="https://www.businessinsider.com/citibank-revlon-loan-900-million-mistake-payment-how-it-happened-2021-2">which mistakenly sent $900 million to lenders of Revlon</a>, is close to getting some of that money back, Reuters reports. <a href="https://www.reuters.com/legal/citigroup-revlon-lenders-say-three-lenders-ready-settle-with-end-sight-2022-12-06/">Click here to read the latest</a>.10. A fake currency that works on an honor system and can be used to buy imaginary things is all the rage on TikTok. No, this isn't a joke about crypto. "Dabloons" are the latest viral trend on the popular app. <a href="https://www.insider.com/what-are-dabloons-tiktok-fake-currency-meme-2022-12">This is what your kids are doing on their phone all day</a>.Keep updated with the latest business news throughout your day by checking out <a href="https://link.chtbl.com/therefresh">The Refresh from Insider</a>, a dynamic audio news brief. <a href="https://link.chtbl.com/therefresh">Listen here.</a>Edited by Jeffrey Cane (tweet <a href="https://twitter.com/jeffrey_cane">@jeffrey_cane</a>) in New York and Hallam Bullock (tweet <a href="https://twitter.com/hallam_bullock">@hallam_bullock</a>) in London.

PE wants to see some cash flow before it starts making deals

Inside the company that has discovered the ultimate cash cow: teenage athletes

<ul><li><keyword id="128682" type="COMPANY" weightage="60" keywordseo="Netflix">Netflix</keyword> stock surged as much as 15% on Wednesday after fourth-quarter earnings beat forecasts.</li><li>The video-streaming service added a record 37 million paid <keyword id="74132" type="PERSON" weightage="60" keywordseo="subscribers">subscribers</keyword> in 2020.</li><li>Netflix expects to generate enough cash to end its borrowing spree and potentially fund share buybacks.</li></ul><ul><li><a href="https://www.businessinsider.com/">Visit Business Insider's homepage for more stories</a>.</li></ul><a href="https://markets.businessinsider.com/stocks/nflx-stock">Netflix</a> shares jumped as much as 15% on Wednesday, after the <keyword id="4578" type="COMPANY" weightage="60" keywordseo="entertainment">entertainment</keyword> titan trumpeted its cash generation and teased <keyword id="118064" type="PERSON" weightage="60" keywordseo="stock-buybacks">stock buybacks</keyword> in fourth-quarter earnings that <a href="https://www.businessinsider.com/netflix-earnings-q4-2020-revenue-eps-profit-analysis-2021-1">surpassed Wall Street's expectations</a>. The rally added up to $34 billion to its market capitalization.The video-streaming service - the world's largest - added a record 37 million paid subscribers in 2020, boosting its global members by 22% to more than 200 million for the first time. Its annual revenue surged 24% to $25 billion as a result, driving its operating income up 76% to $4.6 billion.Netflix also reduced its free cash outflow from $1.7 billion in the fourth quarter of 2019 to $300 million last quarter, and expects it will shrink to around zero this year.Read more: <a href="https://www.businessinsider.com/stock-picks-to-buy-us-semiconductor-sector-growth-outlook-bofa-2021-1" target="_blank" rel="noopener">Bank of America says to buy these 16 semiconductor stocks as the US industry is poised to quadruple its growth rate of the past 3 years</a>The group's bosses expect the stronger cash generation will allow them to <keyword id="25455" type="ORGANIZATION" weightage="60" keywordseo="finance">finance</keyword> everyday operations without tapping debt <keyword id="31671" type="CITY" weightage="100" keywordseo="markets">markets</keyword> anymore. They will also explore returning cash to shareholders via stock buybacks.Netflix counts chess drama "<keyword id="10217071" type="UNKNOWN" weightage="60" keywordseo="the-queens-gambit">The Queen's Gambit</keyword>," period drama "Bridgerton," and season four of "The Crown" among its recent hits. It has borrowed more than $16 billion over the last decade to build its library of TV shows and movies, <a href="https://www.nytimes.com/2021/01/19/business/netflix-earnings-debt.html?action=click&amp;module=Latest&amp;pgtype=HomepageHomepage">The New York Times said</a>.The streaming company has been <a href="https://markets.businessinsider.com/news/stocks/stock-market-rally-investors-backing-protest-winners-jim-cramer-2020-6-1029271517">one of the few beneficiaries</a> of the COVID-19 pandemic. Signups surged last year as lockdowns and travel restrictions forced millions of people to spend more time at home, and government closures of gyms, stores, and restaurants severely limited their leisure options.Here's a chart showing Netflix's stellar stock performance over the past year:<div type="image" title="Netflixstockchart_200121" height="706" width="899" msid="80369671" hostid="261"></div>

Netflix surges 15% to record high after blockbuster earnings show company added more subscribers than forecast

<keyword id="8460033" type="General" weightage="20" keywordseo="bofa-securities" source="Orion">BofA Securities</keyword> has given a 'Buy' call for E Ink, Hundsun, Japan Airlines, Mazda Motor, PICC Group, <keyword id="6355199" type="General" weightage="20" keywordseo="reliance-industries" source="Orion">Reliance Industries</keyword>, Samsung F&amp;M, SBI Cards, and United Breweries for the July-September 2023 quarter. The financial services company sees potential return on investments in the range 6-72 %. It, however, gave an 'Underperform' rating for IDP Education, with a potential 16 % downside in its stock price. BofA Securities said they presented a list of 10 quarterly stock recommendations among Asia Pacific companies, based on the view that these stocks could have the most significant market and business-related catalysts in the quarter ahead. "Given the breadth and scope of our overall coverage of stocks and sectors in Asia Pac, we recognize this recommended list cannot include nor is it designed to include all major catalysts. Our objective is to identify what we believe will be the highest impact ideas in each quarter when we publish the list," the financial services company said. For Reliance, the financial services company has a 'Buy' rating as Jio has emerged as the top telecom player in a growing market in India. "Reliance's telecom subsidiary -Jio - has garnered a large number of paying subscribers. Service quality perceptions continue to improve. Data demand appears to be sticky, and relatively less price sensitive," it said. "Reliance is also completing a major petrochemicals expansion, which should significantly increase its free cash flow potential. Continued improvements at Jio and FCF (free cash flow) generation should drive upside." Explaining the rationale behind the recommendation, it said it maintained 'Buy' on Reliance Industries after finding find risk-reward favorable as it heads into its Annual General Meeting (likely in August). With Jio making investments in 5G, BofA Securities sees further room for the company to gain market share -- mainly at the expense of Vodafone Idea. "Furthermore, any better-than-expected revenues in fiber broadband or digital initiatives could surprise positively." The Indian conglomerate foraying into "high-margin" niches like chocolates, cosmetics, and beverages by making acquisitions is also a positive, BofA Securities said. Further, it said Reliance's oil-to-chemical business is well positioned to generate $9-9.5 billion EBITDA for the next three years, thus providing cash-flow stability. "We also consider <keyword id="6484187" type="General" weightage="20" keywordseo="ril" source="Orion">RIL</keyword> to be one of the very few Indian companies who have potential to be big in clean energy space mainly in solar, battery, electrolyser and fuel cells as they are setting gigafactories," it added. (ANI)

Reliance among BofA Securities' top 10 Asia Pacific stock recommendations

<ul class="summary-list"><li><keyword id="11910457" type="UNKNOWN" weightage="60" keywordseo="ibm" source="Orion">IBM</keyword> fell Tuesday as a strong US dollar and the loss of the Russian market dented cash-flow projections. </li><li>Shares were lower despite the company beating sales growth estimates. </li></ul>IBM <keyword id="11911182" type="UNKNOWN" weightage="60" keywordseo="stock" source="Orion">stock</keyword> fell Tuesday as the company cut its forecast for free-cash flow on the loss of business in Russia and the strengthening US dollar. Shares dropped more than 6% to $128.64 shortly after the opening bell. The company beat analysts estimates for sales growth in its second-quarter earnings report, and it remained adamant that demand strength hasn't faltered. But the company conducts more than half of its business overseas, making the exit from Russia especially painful amid an already tumultuous period for <keyword id="11893875" type="UNKNOWN" weightage="100" keywordseo="markets" source="Orion">markets</keyword> as Wall Street seemingly prices in a <keyword id="12460783" type="UNKNOWN" weightage="60" keywordseo="recession" source="Orion">recession</keyword> next year and firms anticipate a slowdown in tech spending. Meanwhile, computer-maker and rival Apple said Monday it planned to slowdown hiring and spending next year, citing fears of a slowdown at one of the tech sector's most closely watched companies. IBM exceeded Wall Street expectations on sales in the quarter, posting $15.5 billion against a forecast of 15.2 billion according to Bloomberg. The company also outperformed on earnings-per-share at $2.31 compared to an expected $2.27. But the company said its free cash-flow forecast would register closer to $10 billion, a from the previously estimated range of $10 billion-$10.5 billion. IBM swiftly suspended operations in Russia in March once Western sanctions were imposed on the Kremlin in response to the country's invasion of Ukraine. IBM added that it expected current exchange rates to drag down its full-year force cast by six percentage points. IBM chief executive <keyword id="14499479" type="UNKNOWN" weightage="60" keywordseo="arvind-krishna" source="Orion">Arvind Krishna</keyword> has been pushing to steer the company toward a bigger market share of cloud computing in a hybrid model. IBM has acquired 25 companies meant to bulk up cloud computing operations under Krishna's leadership.

IBM stock sinks as strong dollar and loss of business in Russia hit cash-flow forecast

<ul><li><keyword id="6484188" type="General" weightage="100" keywordseo="sensex" source="Orion">Sensex</keyword> closed 0.53% or 320 points higher at 60,942 while <keyword id="2931774" type="General" weightage="20" keywordseo="nifty50" source="Orion">Nifty50</keyword> ended up 0.50% or 91 points at 18,119.</li><li>Sun Pharmaceuticals, Hindustan Unilever, Eicher Motors, UPL and Tech Mahindra were top gainers on the 50 stock index Nifty50.</li><li>The range-bound movement is likely to continue in the run-up to the Budget 2023-24, according to analysts.</li></ul>India’s benchmark indices Sensex and Nifty50 ended higher on Monday led by gains in shares of IT, pharmaceuticals, FMCG companies and positive cues from global markets. Sensex closed 0.53% or 320 points higher at 60,942 while Nifty50 ended up 0.50% or 91 points at 18,119. Sun Pharmaceuticals, Hindustan Unilever, Eicher Motors, UPL and Tech Mahindra were top gainers on the 50 stock index Nifty50. On Friday, Sensex and Nifty50 closed in the red – while Sensex declined 237 points to close at 60,622, Nifty50 fell 80 points to close at 18,028. The rangebound movement is likely to continue in the run-up to the Budget 2023-24, according to analysts. Top gainers and losers on Nifty500 <table style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;" class="redcator-table-advance"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Top gainers </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Change </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Top losers </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">% change </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Torrent Power </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">6.52% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Yes Bank </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-8.10% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Coforge </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">5.99% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Infibeam Avenues </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-7.82% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Delhivery </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">5.58% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">JSW Energy </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-5.89% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Can Fin Homes </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">5.55% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Shree Cements </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-5.45% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Persistent Systems </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">5.17% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Rajesh Exports </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-5.19% </td></tr></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody></table>Source: NSE, as on January 23, 2023 “Markets maintained the upward momentum through the trading session on positive cues from Asian and European indices. IT stocks emerged as the star performers after getting hammered in recent sessions on worries global IT spending may moderate this year due to likely slowdown in key economies. If the optimism continues, we may see some pre-budget rally in the truncated week,” said Shrikant Chouhan, head of equity research (retail) at Kotak Securities. Prices of crude oil continued to edge up – Brent crude oil prices were up 0.7% on Monday, at $88.24 per barrel. On the other hand, the rupee fell 21 paise against the US dollar to close at 81.38, reversing its gains from this morning when it appreciated 19 paise to fall below the 81 mark for the first time in two months. <table style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;" class="redcator-table-advance"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Sectoral indices </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Change </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Nifty IT </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1.88% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Nifty Pharma </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">0.89% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Nifty FMCG </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">0.83% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Nifty Auto </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">0.83% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Nifty Bank </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">0.74% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Nifty Financial Services </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">0.61% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Nifty Private Bank </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">0.58% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Nifty PSU Bank </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">0.44% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Nifty Media </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">0.14% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Nifty Metal </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-0.40% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Nifty Realty </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-0.63% </td></tr></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody></table>Source: NSE, as on January 23, 2023 Besides, investors also took some support from strong corporate earnings reported by banks and expectations of a less aggressive rate hike going ahead. “Market breadth tilted in favour of bulls lifted by financial stocks, amid positive cues from global peers. Strong corporate earnings reported by banks boosted appetite for financial stocks. Positive global markets owing to possibility of a less aggressive rate hike, further added colour,” said Vinod Nair, head of research at Geojit Financial Services. Positive cues in global markets Markets in the US snapped a three-day losing streak on Friday to close in the green, boosted by Netflix’ earnings and job cuts announced by US tech companies. While the S&amp;P 500 closed 1.89% up, the Dow Jones Industrial Average gained 1%. The tech-heavy Nasdaq posted a gain of 2.66%. This comes even as the US government hits its $31.4 trillion debt ceiling on Thursday, with the administration now using extraordinary cash measures to stave off a crisis. In Asia, while some key major markets like China were closed for holidays, Japan’s Nikkei 225 index ended in the green with a gain of 1.33%. SEE ALSO: <a href="https://www.businessinsider.in/tech/news/ai-as-a-service-to-free-speech-platforms-and-social-commerce-these-are-the-big-emerging-trends-of-2023/articleshow/97172911.cms">AI as a Service to free speech platforms and social commerce, these are the big emerging trends of 2023</a> <a href="https://www.businessinsider.in/business/corporates/news/rils-q3-net-profit-stays-flat-at-15792-crore-retail-and-jio-deliver-while-o2c-drags-due-to-weak-demand/articleshow/97179878.cms">RIL’s Q3 net profit stays flat at ₹15,792 crore – retail and Jio deliver, while O2C drags due to weak demand</a> <a href="https://www.businessinsider.in/business/corporates/news/google-to-axe-12000-jobs-ceo-sundar-pichai-says-company-hired-for-a-different-economic-reality/articleshow/97176523.cms">Google to axe 12,000 jobs; CEO Sundar Pichai says company hired for a different economic reality</a>

Sensex, Nifty50 end higher led by gains in IT, pharma and FMCG stocks

<ul class="summary-list"><li>Twitter CEO Elon Musk said the company has "a shot" at becoming cash-flow positive next quarter.</li><li>Twitter has been hit by declining advertising revenues since Musk's acquisition.</li></ul>Despite being hit by declining advertising revenues, Twitter CEO Elon Musk said the social media platform has "a shot" at being cashflow-positive the next quarter."It's been a very difficult four months, but I'm optimistic about the future," Musk <a href="https://t.co/Eo10tsAooS">said at a live streamed Morgan Stanley conference in San Francisco on Tuesday</a>. He was interviewed by Michael Grimes, the head of global technology investment banking at Morgan Stanley.Musk, who <a href="https://www.businessinsider.com/elon-musk-enters-twitter-headquarters-carrying-bathroom-sink-video-2022-10" target="_blank" rel="noopener">acquired Twitter for $44 billion</a> in October, said Twitter got hit by a "massive decline in advertising" due to the cyclical nature of the business and by "political" reasons. Musk did not elaborate on these comments. However, Musk did say it was "startling" how poorly monetized Twitter is. He added Twitter earns 5 to 6 cents per hour even though users spend a total of 130 million hours of their time per day on the platform. Twitter is now working to serve "relevant and useful" ads to users and aiming to get ad spend up to 15 to 20 cents per hour, he said.Musk's comments followed a Friday <a href="https://www.wsj.com/articles/twitters-revenue-adjusted-earnings-fell-about-40-in-month-of-december-ee91f1eb" target="_blank" rel="noopener nofollow">The Wall Street Journal</a> report that <a href="https://www.businessinsider.com/twitters-revenue-plunged-in-december-as-advertisers-fled-report-2023-3">Twitter's revenues and adjusted profits slumped 40% in December</a> as advertisers avoided the social media platform after Musk's chaotic acquisition of the company.After Musk's takeover of Twitter, he instituted sweeping changes to cut costs, including <a href="https://www.businessinsider.com/elon-musk-twitter-layoffs-lowest-headcount-2023-1" rel="">mass layoffs</a> and scaling back on employee benefits like <a href="https://www.businessinsider.com/elon-musk-twitter-free-lunch-scaled-back-2022-11" rel="">free lunches</a> — which he said <a href="https://www.businessinsider.com/elon-musk-free-cafeteria-lunches-cost-400-dollars-each-2022-11">cost $400 per meal</a> because there was hardly anyone in the office at the time — but the claim was later <a href="https://www.businessinsider.com/elon-musk-twitter-free-lunch-scaled-back-2022-11">disputed by a former employee</a> who said the company spent $20 to $25 for each person per day for breakfast and lunch.Musk had said in November 2022 that Twitter was losing <a href="https://www.businessinsider.com/elon-musk-says-twitter-loses-4-million-dollars-a-day-2022-11" rel="">$4 million a day.</a> <h2>Musk is working to ways monetize Twitter</h2>Musk said on Tuesday Twitter cut non-debt expenditures to $1.5 billion from a projected $4.5 billion in 2023 — in part, by cutting its cloud services bill by 40% and by shutting one data center. The company also faces annual interest payments of about $1.5 billion on the $13 billion debt incurred for the acquisition deal, he added. Twitter doesn't release its earnings publicly anymore because it's a private company. It reported a 2% increase in advertising revenues to $1.08 billion for the <a href="https://investor.twitterinc.com/financial-information/quarterly-results/default.aspx" target="_blank" rel="noopener">second quarter of 2022</a> — which was the company's last earnings release before Musk's acquisition. Despite the rise, the ad revenues missed Wall Street expectations of $1.22 billion, per Refinitiv. Twitter also posted a net loss of $270 million in the quarter, reversing a $65.6 million profit in the same period a year earlier.Musk is now working to ways monetize the platform. Twitter introduced the <a href="https://www.businessinsider.com/timeline-elon-musks-chaotic-twitter-blue-verification-rollout-2022-11">Blue subscription program in November 2022</a> to <a href="https://www.businessinsider.com/inside-elon-musks-plans-to-increase-revenue-at-twitter-2022-11" rel="">generate revenue</a> for the social media platform. The program costs $8 a month in the US if purchased via a web browser, and more if purchased via the Apple and Android app stores.About 290,000 users globally were paying for Twitter subscriptions as of mid-January, <a href="https://affiliate.insider.com/?h=83ea87a67f4a4326b62f4cda84a139596450ffadf601a3d6bfd6855b481cfabd&amp;postID=63e210aaaca76123d1485d05&amp;site=bi&amp;u=https%3A%2F%2Fwww.theinformation.com%2Farticles%2Fmusks-twitter-has-just-180-000-u-s-subscribers-two-months-after-launch%3Frc%3Drlufcw&amp;amazonTrackingID=null&amp;platform=browser&amp;sc=false&amp;disabled=false" target="_blank" rel="noopener noreferrer">The Information</a> reported on February 6. This is expected to contribute $28 million in annual revenue this year, per the media outlet.<a href="https://www.businessinsider.com/elon-musk-successor-twitter-ceo-2023-year-end-2023-2">Musk said in February</a> he plans to appoint a new CEO for Twitter near the end of 2023. He added Tuesday at the Morgan Stanley conference he expects to take a few years to build a management team at the company.Twitter and Musk did not immediately respond to Insider's requests for comment sent outside regular business hours.

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