Goldman Sachs released its Q4 and full-year earnings on Tuesday, reporting a 23% increase in operating expenses while missing analysts' earnings expectations for Q4. The bank reported Q4 revenue of $12.64B, an 8% increase YoY, led by growth in its investment banking and wealth management business units. Q4 net profit came in at $3.94B, or $10.81 per share, almost a dollar off expected Q4 earnings of $11.76 and an 11% drop from a year earlier. During the company's earnings call, CEO David Solomon noted that the bank would share plans for its next phase in February. More: - Despite Q4 results, Goldman Sachs reported record full-year revenues and earnings for 2021, led by its asset management and investment banking arms.
- The bank reported full-year net revenues of $59.34B, a 33% increase YoY, and net profit of $21.64B or $59.45 per share, a 140% increase from 2020's $24.74 EPS.
- Investment Banking reported $3.8B in revenue in Q4, a 45% increase YoY, and full-year net revenue of $14.88B, a 58% increase YoY.
- Global Markets reported $3.99B in net revenues for Q4 and $22.08B in net revenues for 2021, a 4% increase YoY and the bank's highest in 12 years.
- Asset Management reported Q4 net revenue of $2.9B, a 10% drop increase YoY, and full-year net revenues of $14.92B, an 87% increase YoY.
- Consumer and Wealth Management reported $1.97B in net revenues for Q4, a 19% increase YoY and $7.47B in net revenues for 2021, a 25% increase YoY.
- Following the report, shares of the company fell 7% in premarket trading. It closed at $354.40, down ~7% for the day.
- Goldman Sachs shares rose 45% in 2021.
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 Microsoft is buying game developer Activision Blizzard for $69B in an all-cash deal. This is Microsoft's largest acquisition to date and the largest transaction in the gaming industry. It is also poised to be the largest all-cash purchase to date. In a statement, Microsoft CEO Satya Nadella noted that the gaming industry would play a vital role in developing metaverse platforms. Nadella also addressed Activision's ongoing sexual assault scandal, noting that Activision's new commitment to address the company's culture will determine the success of the deal. More: - Microsoft is paying $95 per share for Activision, a 45% premium on the company's closing price on Friday.
- The deal, when completed, would make Microsoft the world's third-biggest gaming company, behind China's Tencent and Japan's Sony.
- Microsoft makes gaming console Xbox.
- Microsoft is set to have about 11% of the world's gaming market share, according to data from Newzoo.
- Activision shares rose 30% in premarket trading; it closed at $82.31, up ~26% for the day.
- Microsoft shares dropped 2% on the announcement. It closed at $302.65, down 2.4% for the day.
Zoom Out: - Activision Blizzard, which counts "Call of Duty," "Candy Crush," and "World of Warcraft" among its products, has been embroiled in SEC investigations and sexual harassment scandals.
- In November, the Wall Street Journal reported that CEO Bobby Kotick had been aware of the sexual assault allegations and misconduct at the company for years.
- Later that month, over 1,000 Activision Blizzard employees signed a petition calling Kotick to resign as CEO.
- On Monday, the company announced it had dismissed over three dozen employees and disciplined 40 employees linked to the allegations.
- Kotick is expected to continue leading the company when the deal is completed.
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 A message from LOHIKA Learn Why Web3 Matters to Your Business. Web3 is the next evolution of the Internet. If Web 2.0 was about user-generated content and social media platforms, Web3 is about decentralized services powered by the blockchain. Smart contracts and NFTs are Web3 technologies that run on the blockchain. Lohika is hosting an online event with our friends from Refresh Miami. We gathered a panel of Web3 experts that will explain what blockchain, smart contracts and NFTs are, then discuss related business opportunities in the present and future. The panel: Join us on January 26, 2022 at 10am PT / 1pm ET. Register Here
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Canada's Shopify is partnering with China's JD.com to help brands access the Chinese market. As part of the deal, JD will help brands on Shopify sell in China by managing the logistics and price conversions. JD plans to open an accelerated channel for Shopify retailers that will allow them to start selling in as little as three to four weeks compared to the usual one-year timetable. JD plans to leverage its own network of warehouses and delivery infrastructure to cut down the setup time. More: - The companies will also work together to simplify the process to allow Chinese brands to access the U.S. market.
- JD is one of China's largest online retailers, with over 552 million active users as of Sept. 2021.
- Earlier this month, JD announced it had opened its first two physical stores, branded Ochama, in the cities of Rotterdam and Leiden in the Netherlands that are operated by robots.
- The company plans to open additional physical stores in Amsterdam and Utrecht.
In related news:
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 Top executives from U.S. airlines and shipping companies wrote a letter warning of the new 5G service's impact on air transportation and shipping services. The new C-Band 5G cellular service provided by Verizon and AT&T was expected to launch on Wednesday. The letter was signed by the CEOs of American Airlines, Alaska Air, Atlas Air, Delta Airlines, JetBlue Airways, Southwest Airlines, and United Airlines. The letter was addressed to FAA Administrator Steve Dickson, FCC Chairwoman Jessica Rosenworcel, White House National Economic Council director Brian Deese, and Transportation Secretary Pete Buttigieg. More: - On Monday, the FAA released information on its website warning that the new 5G service could affect certain types of flight radar altimeter equipment and restrict certain flight operations.
- The executives warned that the new 5G service, if deployed on Wednesday, would render many large aircraft unusable, leaving tens of thousands of U.S. citizens stranded abroad.
- The business leaders warned that if a solution isn't found by Wednesday, the U.S. commerce sector would essentially halt.
- The CEOs of UPS and FedEx also signed the letter.
- Verizon and AT&T have previously argued that C-Band 5G is in use in over 40 countries, and there has not been any air travel disruption or interference report.
In related news: - On Tuesday, Verizon and AT&T announced they would delay the rollout of the C-Band 5G service initially planned for Wednesday.
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The U.S. is reviewing Alibaba's cloud operations to determine if it poses a national security risk for U.S. users. The Biden Administration is investigating how Alibaba stores data, personal information, and intellectual property of U.S. users. There is concern regarding the Chinese government's ability to access user data and also block access of U.S. users to their data stored on the cloud. More: - News of the probe dropped Alibaba share 3% in early market trading. The company closed at $128.60, down 2.35% for the day.
- Alibaba's U.S. cloud business earns about $50M a year.
- If the investigation shows the business poses a national security risk, the U.S. government can bar U.S. citizens and businesses from using the service.
- The investigation is being conducted by the Office of Intelligence, housed under the Commerce Department.
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 Image: Matt Brown/AP Exxon Mobil has pledged to cut down its net carbon emissions to zero by 2050. This would impact the energy company’s oil, gas, and chemical business sectors. Exxon CEO Darren Woods noted that the company is developing a roadmap to reduce its greenhouse gas emissions from its global operations and is working its partners to achieve similar emission reduction results. More: - Exxon has scope 1 and scope 2 targets it will use to reach its goal. Details of these were not disclosed.
- In December, the company pledged to reach net zero carbon emissions in its U.S. Permian Basin operations by 2030.
- In November, the company announced it will invest up to $15B through 2027 on projects geared toward lowering its carbon emissions.
- Exxon plans to increase its oil production through 2030, estimating there will a global increase in demand for oil.
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- Investor Chamath Palihapitiya released a brief statement on Monday evening addressing the comments he made on the All-In Podcast regarding the treatment of the Uyghur minority group in Xinjiang, China.
- Activist investor Macellum Advisors GP LLC has asked retailer Kohl's to change its board or consider selling.
- The U.K. is planning to apply financial promotions rules to cryptocurrency ads.
- British autonomous vehicle startup Wayve has raised $200M in a Series B funding round led by Eclipse Ventures, D1 Capital Partners, and Linse Capital.
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Upcoming Events - January 19 - Music in the Metaverse with Jonathan Gray (Encore) (Register Here)
- January 25 - Need To Know NoCoder - Leon Young (Cogniss) (Register Here)
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- February 23 - Need to Know NoCoder: Derya Sousa (Kianda Technologies) (Register Here)
- February 24 - Alternative Investments (Register Here)
- March 03 - The $12B Appetite for Amazon Aggregators (Register Here)
- March 10 - NoCode's Impact on the Gig Economy (Register Here)
- March 23 - Need to Know NoCoder: Nichole Bestman (Bubble) (Register Here)
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 |  | Vanessa Omeokachie is a Researcher at Inside. Her interests include finance, tech, and startups. In her free time, she enjoys reading, hiking, attending music festivals, and traveling. Connect with her on Twitter @Ms_Omeo. |  | | Editor | Aaron Crutchfield is based in the high desert of California. Over the last two decades, he has spent time writing and editing at various local newspapers and defense contractors in California. When he's not working, he can often be found looking at the latest memes with his kids or working on his 1962 Ford. | |
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