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Gen Z says, "Show me the money."
A recent study shows recent graduates are less inclined to apply to jobs that don’t disclose salary. Plus, these three states just passed salary transparency laws.
US stocks finished higher Thursday ahead of today’s key inflation data.
• Restoration Hardware (RH) saw its shares stumble after missing Wall Street’s fourth quarter expectations, reporting earnings per share of $2.88 compared to the $3.34 estimate. The luxury furniture company guided its full-year revenue below projections, leading analysts, including Citigroup (C), to lower the company’s price target.
• EV charging network operator EVgo (EVGO) posted a smaller-than-expected loss of $0.06 per share compared to the $0.16 prediction. The company also saw a 283% increase in revenue from a year ago, at $27.3 million.
• The number of Americans filing for first-time unemployment benefits rose by 7,000 to a total of 198,000 in the week ending March 25. While slightly above market expectations of 196,000, the figure remains historically low and highlights a tight labor market.
What to be on the lookout for today
• Wall Street will get insight into how consumers are faring with the release of personal income and spending reports. In January, personal income rose 0.6% while spending jumped 1.8%.
• Core PCE prices, which rose 0.6% month-over-month in January, will be released. This inflation metric excludes food and energy and is the index of choice by the Federal Reserve.
4 Things to Understand About Market Value
Have you heard the term “market value” but wondered how it impacts you? At a high level, it’s something investors should consider and evaluate when making investment decisions. Here are four things to understand:
1. What is market value? The price investors will pay for an asset. This could be $1M for small businesses or $1T for large corps.
2. Which factors determine market value? There are several, but here are a few key ones to note:
a. Company profitability
b. Company debt levels
c. Overall market sentiment and trends
d. Company performance
e. Long-term growth potential
f. Valuation ratios such as earnings per share, etc.
3. How is market value calculated? A few different ways, including the Income Method, Assets Method, and Market Method. Read more here.
4. What are its limitations? There are several, but two especially relevant ones are:
a. Fluctuation — market value is incredibly dynamic, changing day by day
b. Precedent data — new businesses don’t have historical pricing data, so determining their value is harder than for established businesses
For more tips on valuing a business, check out these seven methods.
Stay on top of what’s moving the market and how business news may impact your investing through SoFi’s one-stop-shop for bite-sized news: On the Money.
Today’s top stories
Humanoid robots could be entering the workforce as soon as 2025. After a flurry of recent announcements, the Age of Robotics may finally be on the horizon. Read more >> Friday Funding: DataDome raises $42 million to help keep the internet bot-free. Bots constituted 42% of all internet traffic in 2021. Here’s how DataDome plans to change that. Read more >> Are you looking for a daily flow of cash into your bank account? Check out these 19 jobs, from taking surveys to copy editing, that pay daily. Read more >>Not-So-Breaking News
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United Airlines (UAL) is investing $15 million in a startup that’s developing carbon capture technology. This tech captures CO2 emissions from industrial sites and compresses them for reuse producing sustainable aviation fuel.
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Cup Noodles launched a breakfast-flavored cup of microwaveable noodles. The instant ramen brand’s decision came after a year of skyrocketing prices for eggs and other breakfast staples.
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The Center for AI and Digital Policy has called on the FTC to investigate OpenAI and ChatGPT. The nonprofit hopes to initiate a half-year pause on training new generative AI systems.
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Bestselling author Brandon Sanderson will list his most recent audiobooks on Spotify (SPOT) rather than Audible (AMZN). The fantasy author claims that Amazon’s audiobook service treats authors “very poorly” and has no real competitors.
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Vermont Senator Bernie Sanders questioned Starbucks (SBUX) CEO Howard Schultz over the coffee company's attempts to shut down unionization during a Senate hearing. Nearly 300 Starbucks locations have voted to unionize since December 2021.
Financial planner tip of the day
“Roth IRA contributions are made with after-tax money, which means you won’t receive an income tax deduction for contributions. But your balance will grow tax-free and you’ll be able to withdraw the money tax-free in retirement.”
Brian Walsh, CFP® at SoFi