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- 📈 AutoZone's 13% Earnings Jump
📈 AutoZone's 13% Earnings Jump
SoftBank to acquire Ampere Computing for $6.5B, DoorDash announces Buy Now Pay Later, Perplexity interested in buying TikTok, James Hardie to acquire AZEK for $8.75B, New Car sales Fall is AutoZone jump
Evelio Silvera
March 24, 2025
Good morning.
⚡ The Fast Five → SoftBank to acquire Ampere Computing for $6.5B, DoorDash announces Buy Now Pay Later, Perplexity interested in buying TikTok, James Hardie to acquire AZEK for $8.75B, New Car sales Fall is AutoZone jump
🔎 Market Trends → Wall St Week Ahead Dow Transports index slump poses trouble spot as investors seek stocks stability; US Stock Futures Slip on Friday
And now…
⏱️ Your 5-minute briefing for Monday, March 24, 2025:
MARKET BRIEF
Before the Open
As of market close 03/21/2025.
Pre-Market
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Fear & Greed
Markets in Review
Wall Street Holds Steady as Fed Flags Foggy Forecast
The Nasdaq gained 0.5% to 17,784.1, while the S&P 500 and Dow eked out 0.1% gains to finish at 5,667.6 and 41,985.4. Communication services led sector winners, real estate lagged.
The Big Picture:
Markets ended the week on a cautiously optimistic note as Fed officials acknowledged persistent macro uncertainty—without sounding any alarms. Investors leaned into the idea that rates may eventually drift lower, while earnings and deal activity offered select bright spots.
Fed Presidents John Williams and Austan Goolsbee echoed the same theme: policy flexibility is key amid swirling uncertainty from tariffs, fiscal policy, and geopolitics. Yet, neither saw cause for immediate tightening. Translation: no rush, no panic.
President Trump’s Friday comment that there will be "flexibility" on upcoming tariffs gave investors a further breather, despite his hesitation to allow exemptions.
Market Movers:
Nike (NKE) fell 5.5%, the worst Dow performer, after signaling pressure on revenue and margins due to tariffs and restructuring costs.
FedEx (FDX) tumbled 6.5% after slashing its fiscal 2025 outlook. Slower-than-expected Q3 growth left analysts cold.
Boeing (BA) rose 3.1% on news it secured a multibillion-dollar contract to design a new Air Force fighter jet, beating Lockheed Martin (LMT), which dropped 5.8%.
Super Micro Computer (SMCI) surged 7.8% after JPMorgan upgraded the stock, citing improved growth visibility and raising its target.
What They’re Saying:
“If we can continue to make progress on inflation… rates 12 to 18 months from now will be lower than today,” said Chicago Fed President Goolsbee.
WHAT WE’RE WATCHING
Events
Today: S&P Global - Flash Manufacturing Purchasing Managers' Index (PMI) - 9:45am
Why You Should Care: It's a leading indicator of economic health - businesses react quickly to market conditions, and their purchasing managers hold perhaps the most current and relevant insight into the company's view of the economy.
Today: S&P Global - Flash Services Purchasing Managers' Index (PMI) - 9:45am
Why You Should Care: It's a leading indicator of economic health - businesses react quickly to market conditions, and their purchasing managers hold perhaps the most current and relevant insight into the company's view of the economy.
Earnings Reports
Today: KB Home, Toro, Intuitive Machines, Rekor Systems, Westport Fuel Systems
Tomorrow: GameStop, Smithfield Foods, McCormick & Company, Movado Group, Canadian Solar, 3D Systems, Rumble
MARKET BRIEF
Leading News
AutoZone: 13% Earnings Jump Coming as America's Cars Age Past 12 Years
Photo Credit: Haotian Zheng
Why it matters:
While new car prices remain stubbornly high at $48,000+, AutoZone (AZO) offers investors a recession-resistant business model with Ferrari-like 50%+ gross margins in an increasingly aging vehicle market.
Zoom Out:
The average American car is now over 12 years old – practically geriatric by automotive standards. This aging fleet creates a perfect tailwind for AutoZone, whose commercial segment (serving repair shops) grew a robust 7% last quarter despite headwinds.
Market jitters about tariffs have created a buying opportunity in a stock that's weathered recent volatility better than most. When you peek under the hood, AutoZone's international growth (nearly 10% comps on constant currency) and stellar distribution capabilities reveal a well-oiled machine.
Key Insights:
Share buyback machine: AutoZone has reduced its share count by a staggering 50% over the past decade, creating a powerful EPS tailwind that shows no signs of slowing.
Amazon-proof business: Unlike many retailers, AutoZone's sophisticated distribution network provides the speed and expertise that keep it insulated from e-commerce threats.
Earnings acceleration ahead: After a two-year lull, EPS is projected to jump nearly 13% in fiscal 2025, followed by another 10%+ the following year.
Market Pulse:
"This is a defensive, resilient distribution business you can buy at a market multiple with the chance for earnings acceleration," says Andrew Choi, portfolio manager at Parnassus Investments.
Bull’s Take:
At 23x forward earnings, AutoZone offers both defensive protection and offensive upside in uncertain times – a rare combination that should drive the stock to Raymond James' $4,000 target while you collect compounding returns from its relentless buyback program.
Headlines
SoftBank to acquire Ampere Computing for $6.5B in AI push (link)
Trump Picks Boeing Over Lockheed Martin For $20 Billion Fighter Contract (link)
DoorDash Announces ‘Buy Now, Pay Later’ Partnership With Klarna (link)
AI startup Perplexity confirms interest to buy TikTok (link)
James Hardie Agrees to Buy AZEK for $8.75 Billion (link)
Yahoo sells TechCrunch to investment firm Regent (link)
CRYPTO
Fear & Greed
Headlines
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On the Socials
*Hat-tip to WorkDieRetire