In partnership with
Hey there weekday warrior,
Here’s what’s on tap today… Google has gotta spend money to make money, DoorDash is buying Instacart at a discount, and the Fed is still in wait-and-see mode.
Now, enjoy the next 3 minutes and 43 seconds of blue-chip news and commentary.
Keep on snapping necks and cashing checks,
Six feet Sundar
Alphabet $GOOG ( ▼ 12.29% ) got absolutely rekt yesterday…
Down how bad?
Sundar’s stonk shed over $500B in market cap after a 12% dip in one day.
And somewhere Michael Saylor is out there like…
ICYMI, the big swingin’ Gs posted a yuge miss on the top and bottom lines Wednesday, then buried disclosed that free cash flow rang in at a cool negative $9.07B.
Where’d all the money go? AI, obviously. $7.6B in operating loss can be attributed to “Alphabet-level activities,” so AI capex.
Oh, and apparently Search revenue grew 12% last quarter… which sounds great until you realize it was 17% in Q2 and 19% in Q1 because no one Google’s sh*t anymore.
But it wasn’t all bad news (just mostly)…
Google’s Cloud business brought in $30.7B, and Gemini dropped its latest model the morning of earnings, which clearly didn’t help.
Not Sure What to Believe About AI? Read This.
There's a flood of AI news right now, and most of it is written to scare you or hype something up. But what if there was a way to get the AI news without the spin?
That’s exactly what this free newsletter does. Every morning, they send you the AI news worth knowing and explain why it actually matters for your life and job. After one week of reading this, you'll know where AI really stands, where it's heading, and which headlines are actually worth paying attention to.
It’s called The Rundown, and over 2 million professionals from companies like Apple, Google, and NASA already read it daily.
+ There ain’t no such thing as a free lunch cash flow…
Amazon $AMZN ( ▼ 4.25% ) shares sank more than 7% after the bell yesterday on a double miss.
Turns out Jeff’s Andy’s ad business came in over $1B light for the quarter, but AWS beat expectations. So they’ve got that going for them, which is nice.
Free cash flow stayed negative for the 2nd consecutive quarter, with an outflow of $42.4B for the last 12 months.
AI capex is hodling at $220B.
+ Yuge news for overweight agoraphobics…
DoorDash $DASH ( ▲ 5.61% ) is buying Instacart $CART ( ▼ 2.24% ) for a cool $17B, 75% of that in straight cash, homie.
IC shares dropped on the news, which, sure. Mostly because…
Double D (not Novig) considered this same deal in 2021 at a valuation north of $40B, but backed off due to politics.
Good things come to those who wait… for delivery.
+ Whole economy is moving like a Georgia roller coaster…
Huge week for the Econ majors out there.
First, on Wednesday, the Fed decided to hold rates, with K-Woww just trying to take it all in.
Per Kev, “the period right in front of us is information rich. There is a lot that’s happening in the world. My colleagues and I are keen to take notice of it.” No sh*t.
Then yesterday, September PCE came in at 0.5% for the month (core at 0.3%). Quick math: that’s a 3.6% annual rate (core at 3.1%).
On the brighter side, Q3 GDP locked in 3.4% for the quarter, which basically blew everyone’s nips off.
Friendly reminder that 2027 will give us fewer Fed rate meetings.
> Starbucks international business disappoints but U.S. stores outperform // B. Nicc is absolutely unstoppable.
> Eli Lilly hikes sales outlook, as CEO says there’s room for ‘dramatic’ obesity market expansion // In other words, those numbers looking PHAT.
> (Wednesday) Chipotle shares rise 7% after CEO says same-store sales growth will continue // “For the first time this year, low-income consumers during the quarter outperformed the high-income cohort at its restaurants.” Somebody check on Taco Bell...
> (Wednesday) Wendy’s shares jump 15% as Nelson Peltz’s Trian offers $1.4 billion to buy burger chain // He can’t keep (not) getting away with it...
> (Tuesday) Robinhood shares fall as crypto slump weighs on profits // Justice.
> (Monday) FTC and 20 states sue Dollar General, alleging retailer overcharged shoppers // “It’s a dollar... generally...”
> (Monday) Apple responds to user reports of broken iPhone Duo screens on new foldable phone // No one saw this coming.
> (Monday) Microsoft offers voluntary buyouts to 60,000 employees as AI leads to efficiency push // JD Vance is NOT going to be happy...
On Friday, I asked, “Have you graduated to using an AI agent yet? Which one?”
80% of you said, “What’s an ‘agent’? (No.)” All jokes aside, I’m astonished.
Here’s what some of you guys had to say (and my response in italics)…
What’s an ‘agent’?: “Tyler’s might be too deep.” Chat, am I cooked?
Muse: “Muse does a nice job of identifying option plays based on parameters I provided it. I’ve only used it a week, but so far 4 for 4 on puts/calls.” *the degenerate has entered the chat*
What’s an ‘agent’?: “Chatgpt, what is an AI agent?” This was the overwhelming top response to this one.
Instinct: “Yall are still searching and scheduling your own dinner reservations? Chess vs checkers.” This guy’s going to Dorsia.
OpenClaw: “Yep, we are the techies...” Settle down…
Here’s today’s question(s)…
Since I'm apparently lost in the AI sauce... what % of your job is AI doing right now?
+ US stocks ground higher three days straight through Wednesday (S&P 500: +0.7% Mon, +0.6% Tue, +0.3% Wed) on a chip-stock rally and a Fed hold, then dipped Thursday (-0.3%) as AI jitters crept back in. AI giveth, AI taketh away.
+ The 10-year yield sat flat Monday, drifted higher midweek as the Fed held rates steady, then eased back below 5% Thursday after a strong GDP print.
+ Oil slid most of the week on US-Iran de-escalation hopes, popped Wednesday on reports the US would renew strikes after the midterms, then fell again Thursday as peace talk won out.
+ The “smart” money (prediction markets) thinks the Dems are about to sweep these midterms. (Polymarket)
Oh, and one more thing….
What did you think about today's newsletter?
Sent from my Amazon Fire Phone. Please excuse any mistakes and typos.
Pssst. Are you an AI bot? Click here to summarize TWC.
Do these look like the faces of guys you should take financial advice from?
No, they’re the faces of guys who just learned AI can make images. So, act accordingly...
This is not financial advice. Nothing in this newsletter is an investment recommendation. All content is created for entertainment, educational, or informational purposes only. Do your own research, or do yourself a favor and hire a professional.