1. California Imposes $1 Billion Levy on Insurers；
2. Coca-Cola’s Profits Exceed Expectations；
3. Lyft Q1 Revenue Forecast Falls Short；
4. KKR Raises $14 Billion for New Buyout Fund；
5. Super Micro Shares Surge After-Hours；
6. iPhone to Integrate Alibaba AI；
7. China May Allocate $20 Billion to Support Vanke
1. California Imposes $1 Billion Levy on Insurers
California Insurance Commissioner Ricardo Lara stated in an interview that wildfires have destroyed 16,000 buildings, with total damages potentially reaching $75 billion. The FAIR Plan, California’s state-backed insurance fund, will impose a $1 billion levy on private insurers to cover claims.
Unlike private insurers, FAIR Plan is required to provide coverage for homeowners who cannot obtain policies elsewhere, while private firms can choose to deny claims.
Reports indicate that FAIR Plan has received 3,469 wildfire-related claims and has already paid out $914 million in compensation.
On Tuesday, major California insurer Travelers estimated that wildfire-related losses could reach $1.7 billion.
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2. Coca-Cola’s Profits Exceed Expectations
Coca-Cola reported adjusted Q4 earnings per share of $0.55, beating analyst estimates of $0.52.
Despite a slowdown in grocery spending, demand for Coca-Cola remained stable, with the company consistently raising prices over the past few quarters.
In Q4, Coca-Cola’s average product prices increased by 9%, while sales volume grew by 2%, helping profits exceed forecasts.
CFO John Murphy expects inflation to stabilize in 2025, with annual EPS growth projected between 2% and 3%, and organic revenue growth of 5% to 6%, below analysts’ 7.1% forecast.
Coca-Cola’s stock rose 4% following the news but remains up only 8% over the past year, compared to the S&P 500’s 21% gain.
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3. Lyft Q1 Revenue Forecast Falls Short
Rideshare company Lyft announced that Q1 gross bookings are expected to range between $4.05 billion and $4.2 billion, below analysts’ forecast of $4.23 billion.
Adjusted EBITDA is projected between $90 million and $95 million, slightly below expectations. Lyft warned that cold weather could impact ride-hailing and bike rental demand.
Although Lyft announced its first-ever $500 million stock buyback program, its stock plunged 11% after hours.
CFO Erin Brewer noted that Q1 is typically the slowest quarter for the company.
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4. KKR Raises $14 Billion for New Buyout Fund
Since June 2023, New York-based private equity giant KKR has been raising capital for its new $20 billion buyout fundand has already secured $14 billion from investors.
The first funding round is set to close this month, after which KKR will begin deploying capital. Its previous buyout fund raised $19 billion, and the new one could set a record.
With high interest rates limiting leveraged buyouts, deal activity has slowed. Traditional fundraising from U.S. investors has become more challenging, prompting private equity firms to seek capital from the Middle East and Asia.
In 2024, KKR’s private equity business generated a 14% return.
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5. Super Micro Shares Surge After-Hours
Super Micro Computer announced that its fiscal year revenue, ending June 2026, could reach $40 billion, far exceeding analysts’ $30.7 billion estimate.
Additionally, the company expects to meet Nasdaq’s filing deadline after resolving audit-related delays.
Last week, the San Jose-based company stated that new products using NVIDIA’s Blackwell B200 chips had reached full production capacity.
Following the announcement, Super Micro’s stock surged over 20% after hours, with a year-to-date gain of 27%.
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6. iPhone to Integrate Alibaba AI
According to The Information, Apple is partnering with Alibaba to introduce AI features for iPhones in China, pending approval from Chinese cybersecurity regulators.
Following the news, Alibaba’s stock surged up to 8.6%, marking its biggest gain since September. Rival Baidu’s stock, meanwhile, dropped by 3%.
Alibaba recently achieved strong AI model test results, and investors believe a partnership with Apple could significantly boost Alibaba’s AI growth potential. Year-to-date, Alibaba’s stock has risen over 30%.
Alibaba, as China’s largest e-commerce platform, holds vast amounts of user data that Apple could leverage.
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7. China May Allocate $20 Billion to Support Vanke
Sources indicate that China is considering a $20 billion (140 billion yuan) special local government bond issuance to purchase unsold housing and land from Vanke, enabling the company to repay public and private debt due this year.
Vanke could also pursue additional financing options, such as issuing new bonds or securing bank loans to refinance existing obligations.
In 2024, Vanke faces $4.9 billion in maturing bonds, while weak housing sales have led to liquidity concerns.
Vanke stated that it will raise funds by selling assets, accelerating home sales, and exiting non-core businesses.
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This content is sourced from Financial Times, Bloomberg, and The Real Deal, among other financial news outlets.