Google’s parent company Alphabet has reported a large earnings beat, posting a 32% year-on-year revenue increase, and an earnings-per-share of $30.69 vs $27.34 expected. More recently, Alphabet also announced a rarely-seen stock split at 20-for-1 in the wake of its massive earnings report, sending Alphabet stock up over 7% during trading on Wednesday. The split at current Alphabet share prices will bring the cost of Alphabet stock down from about $3000 to $150 per share, making it more accessible to investors. Meanwhile, existing investors holding Alphabet shares will receive 19 more shares for each one they hold, should the split happen.
US Fed to hike rates in March
After weeks of anticipation and expectations, the US Fed has finally announced that it will be raising interest rates in March. The move comes after an extended period of dovishness in an attempt to combat the ravages of the Covid-19 pandemic. In order to combat growing inflation, which is currently at a four-decade high, the Fed has taken a hawkish turn. The US central bank has indicated its intention to raise interest rates at its March 15-16 meeting, although it gave no direction for further plans. The bank is also expected to cut its $9 trillion balance sheet at some point after raising interest rates.
Russia’s Chamber of Commerce head pushes for crypto mining
Two weeks in from a proposed ban on cryptocurrencies by the Russian central bank, Russia’s head of Chamber of Commerce, Sergey Katyrin, asked that Bitcoin mining be excluded from the ‘gray zone’, adding that current views on cryptocurrencies should be changed through significant regulation. Last week, Russian President Vladimir Putin said in an online conference that the country’s “surplus energy and well-trained workforce” can be harnessed for crypto mining.