It Girl Identity: Issue 25

It Girl Identity Newsletter

What’s Moving Markets

Wall Street extended its losing streak, with the S&P 500 logging its fourth consecutive down last week. Recession fears triggered the year’s biggest selloff, sending the S&P down nearly 3% and the Nasdaq tumbling 4%. Inflation reports came in softer than expected, but uncertainty around tariff decisions and the upcoming Tuesday Federal Reserve meeting kept investors on edge.

What’s Up

• Intel (INTC): Surged 17% on strong AI chip demand and optimistic forward guidance.

• Super Micro Computer (SMCI): Gained 10% as investor confidence in AI infrastructure spending remained high.

• The AES Corporation (AES), ConocoPhillips (COP), Vistra (VST): Each rose 9% on strong sector performance in energy and utilities.

• Crown Castle (CCI): Surged 10.37% after announcing the sale of its fiber optics unit for $8.5 billion.

• Ulta Beauty (ULTA): Jumped 13.68% after beating earnings expectations despite weak forward guidance.

• DocuSign (DOCU): Climbed 14.81% following a positive fiscal outlook.

• Rubrik (RBRK): Soared 27.77% as management reassured investors about economic resilience.

• PagerDuty (PD): Gained 17.75% on a strong earnings forecast.

• Peloton (PTON): Rallied 16.14% after Canaccord Genuity analysts called it a “turning point” for the company.

• Quantum computing stocks saw massive gains after D-Wave Quantum’s solid earnings:

  • Rigetti Computing popped 28.23%

  • Quantum Computing climbed 29.14%

  • D-Wave Quantum surged 46.89%

What’s Down

• T-Mobile (TMUS): Fell 1.20% after a Citi downgrade.

• Teradyne (TER): Plummeted 20% following weak earnings guidance and sector-wide semiconductor selloff.

• Delta Air Lines (DAL), United Airlines (UAL): Down 12% and 11%, respectively, as rising fuel costs and recession fears weighed on travel demand.

• Adobe (ADBE), Expedia Group (EXPE): Both fell 12% on disappointing earnings and cautious outlooks.

• Top S&P 500 Losers (Last Week): Teradyne (TER) -20%, Delta Air Lines (DAL) -12%, Adobe (ADBE) -12%, Expedia Group (EXPE) -12%, United Airlines (UAL) -11%.

Markets & Economy

• Tariffs & Inflation: Goldman Sachs expects U.S. tariffs to rise by 10 percentage points, which could push consumer prices higher and raise core inflation to 3%. While tariffs are a one-time cost increase, they may also affect inflation expectations. Slower economic growth is expected, leading Goldman to cut its 2025 U.S. GDP forecast from 2.2% to 1.7% due to lower consumer spending, tighter financial conditions, and delayed business investment.

  European Tech & IPOs: Europe's tech sector has grown rapidly, producing 350 unicorns in the last decade. More public listings are expected, with about 10% of these unicorns likely to go public within five years. Global tech IPOs are expected to return to pre-pandemic levels.

  European Stocks Outlook: European stocks have outperformed U.S. markets, and Goldman expects them to rise another 7% in the next year. Germany’s economy is projected to grow 2% by 2027, driven by higher government spending. Key growth areas include defense, healthcare, telecom, and infrastructure.

  Nasdaq & Tech Stocks: Despite recent declines, investors remain optimistic about tech. At Goldman Sachs’ Disruptive Technology Symposium, 70% of respondents predicted the Nasdaq would stay flat or rise over the next 12 months.

  Goldman Sachs remains cautious about trade policies, economic uncertainty, and sector-specific risks affecting global markets.

What are the 3 Financial Statements?

This week we’ll be spilling what the 3 financial statements are, how they are connected, and which one is the most important to look at!

The three key financial statements are the income statement, balance sheet, and cash flow statement. Together, they show a company’s financial health.

Income Statement: Shows profitability, including revenue, expenses, and net income. It's recorded on an accrual basis (revenue is recognized when earned, not when cash is received) and reflects a period of time.

• Revenue example: Sales from products or services

• Expense example: Salaries, rent, and marketing costs

• Formula: Revenue - Expenses = Net Income

Balance Sheet: Shows what a company owns (assets) and owes (liabilities), along with the owner's equity. It’s a snapshot at a specific point in time, not over a period like the income statement.

• Formula: Assets = Liabilities + Owner’s Equity

• Examples:

  • Assets: Cash, inventory, equipment

  • Liabilities: Loans, accounts payable

  • Owner’s Equity: Retained earnings, common stock

Cash Flow Statement: Tracks a company’s cash inflows and outflows in three sections:

1. Operating Activities: Cash from core business (customer payments)

2. Investing Activities: Buying/selling assets (equipment purchases)

3. Financing Activities: Raising/repaying funds (loans, dividends)

Most Important? The cash flow statement because it shows actual cash movement, unlike the income statement, which includes non-cash items.

How They Connect

• Income Statement → Cash Flow Statement: Net income (last line of income statement) is the first line of the cash flow statement’s operating activities.

• Cash Flow Statement → Balance Sheet: Every cash item on the balance sheet updates the cash flow statement as an inflow or outflow. The bottom line (net cash flow) updates the cash balance on the balance sheet.

• Income Statement → Balance Sheet: Net income updates retained earnings in the owner’s equity section of the balance sheet.

Disclaimer: Information shared here is for educational purposes only. Consult a financial advisor for personalized advice.

It Girl Recommendations

What better than reading about finance but listening about it! Here are some of our favorite finance podcasts:

• Market MakeHer: Learn about markets and investing from two women—a beginner investor and a 15-year finance expert. (Jessica Inskip & Jessie DeNuit)

• Private Equity Deals: Hear interviews with top money managers in private markets, diving deep into deals, companies, and the global economy. (Ted Seides)

• Word on the Street: Stay updated on financial markets with insights from Barclays. (Barclays)

• Wall Street Breakfast: Get daily market news and analysis from Seeking Alpha. (Seeking Alpha)

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See you next Monday, It Girls!

With Love,

It Girl Identity