Hey there weekday warriors,
We just witnessed the biggest breakup in golf since the PGA/LIV debacle.
Enjoy the next 4 minutes and 27 seconds of blue-chip news and commentary.
Keep on snapping necks and cashing checks,
+ US stocks (well, not the Dow) “fell for a second straight session in a lackluster start to September.” (CNBC)
+ The 10-year Treasury yield “dropped Wednesday as investors assessed the outlook for the economy along with the spread between the 2-year and 10-year note yields.” (CNBC)
+ Oil “fell by more than $1 a barrel on Wednesday in see-saw trading, with traders worried about demand in coming months as crude producers offered mixed signals about supply increases.” (Reuters)
+ Bitcoin’s woes continued…
+ The three most talked about stocks on WallStreetBets in the past 24 hours were: 1) Nvidia -1.6% 2) AST SpaceMobile +1.5% 3) C3.ai -1.8% // after hours -16.6%
The market moves you need to know about…
– Name a worse time to report earnings if you’re an AI company… I’ll wait. Less than 24 hours removed from Tuesday’s bloodbath, C3.ai dropped earnings. Despite beating on the top and bottom lines, shares fell 16.6% after hours. Turns out the company missed the Street’s expectations for subscription revenue (spoiler: its largest and most important business).
+ Do you think Verizon is paying a premium for Frontier’s ticker symbol (FYBR)? Frontier Communications mooned 37.9% on news that Verizon was planning to make an all-cash offer. Verizon fell 3.3%, because, obviously.
– Not unlike Dollar General last week, Dollar Tree got rekt following its earnings report. Shares tumbled 22.1% after reporting a brutal quarter and sharing that consumers had turned their back on dollar stores.
Hate it or love it…
C3.ai: Do you hate it or love it over the next 12 months? Vote below (I’ll share the results tomorrow)…
Yesterday, 77.3% of you indicated that you Love Nvidia over the next 12 months. “I am shocked.” - no one ever.
Top spin
Source: Giphy
Big win for gold purists who really wish the LIV Tour wouldn’t allow players to show any ankle…
In what has to be the biggest breakup in golf since Elin chased Tiger with a 9-iron, TopGolf and Callaway (+4.2% // +2.3% after hours) are calling it quits.
Quick history lesson…
You might recall that back in 2021 golf club and apparel maker Callaway bought the rest of TopGolf that it didn’t own at a roughly $2B valuation.
TopGolf fit in at Callaway about as well as the first female minority at Augusta National. This was the kinda merger where 1+1= less than 1. TopGolf has underperformed majorly. To be fair, Callaway didn’t exactly put the team on its back.
It probably doesn’t help the situation that Callaway overpaid some McKinsey consultants to recommend the company rename itself TopGolf Callaway.
The back nine…
If the tax-free spinoff gets shareholder approval, Callaway will house the company’s golf equipment, Toptracer, and lifestyle businesses. And TopGolf will house the TopGolf biz… and presumably, the massive insurance policy the company has to carry because you and your buddies do stuff like this…
Callaway CEO Chip Brewer (which sounds a lot like the name of Shooter Mcgavin’s biggest competitor until Happy Gilmore joined the tour) pointed out that the deal “will be well understood and valued by the market.”
Perhaps he was onto something… shares popped after the news broke.
+ Bad news for the haters… Nvidia (-1.6%) didn’t receive an antitrust subpoena from the DOJ as reported yesterday after the close by Bloomberg. The company said “We have inquired with the U.S. Department of Justice and have not been subpoenaed. Nonetheless, we are happy to answer any questions regulators may have about our business.” Honestly, after that smug a** response, I kinda hope the DOJ makes it rain subpoenas on Jensen Huang…
+ “That’s gonna be a no for me dawg.” - Joey Politics
Rumor has it that the White House is set to give the US Steel (-17.4%) and Nippon Steel tie-up the Dikembe Mutombo finger wag. POTUS won’t allow the Japanese steelmaker to buy its US competitor for $14B, citing national security risks.
Not that it comes as much of a shock. A mutual disdain for the deal might be the only thing Democrats and Republicans have seen eye-to-eye on in the past decade.
Joe Biden publicly criticized the deal. And earlier this week Kamala Harris said US Steel should remain under American ownership. Meanwhile, Trump vowed to block it outright.
+ Boy, I bet Nordstrom (the company) feels pretty stupid right about now…
It appears that the Nordstrom (-0.1%) family may be about to get a deep discount on the store their great-grandfather founded (… which they proceeded to run into the ground).
You see, back in 2018, the Nordstrom family offered Nordstrom (the company) $8.4B for the department store. The company told the family to respectfully go f*ck itself… which probably made things weird at the holiday party since Blake Nordstrom was CEO at the time…
Well, yesterday the family made the company another offer. This time it was for $3.76B. The bidders probably didn’t have to do a lot of due diligence. The group includes CEO Erik Nordstrom, President Peter Nordstrom, and Mexican retailer El Puerto de Liverpool.
+ Charlie Munger Warned About Inflation and Told Us How to Protect Against It – 'Most People are Going to Suffer.’ Spoiler: it had nothing to do with crypto…
+ It might be time to put your savings into a high-yield account before it’s too late. Friendly reminder: the smart money expects a rate cut in September…
+ Goldman Sachs just said investors should 'go for gold' as Fed rate cut looms - is it time to shield your wealth with gold? Wu-Tang said it best: Protect ya neck.
+ 4 simple steps to ‘make yourself indispensable’ at work, says bestselling author: ‘It actually works’. #2: Start sleeping with your boss & use it to blackmail them.
🔥 This type of retirement account is a ‘golden egg’ for young people, says CFP—here’s why. “The Chase Bank money glitch.”
FYI, TWC might be compensated if you click on the links above. So, what are you waiting for? Start clicking.
⏪ Yesterday, Hormel Foods, Dollar Tree, and Dick's reported ahead of the open. Casey's General Store, C3.ai, and ChargePoint dropped earnings after the bell.
⏩ Today we’re keeping an eye on…
+ Nio reports before the open
+ Broadcom, DocuSign, UiPath, Smartsheet, and Smith & Wesson drop earnings after the bell
+ ISM and S&P drop a bunch of services data, which could certainly f*ck up our day (see: Tuesday’s manufacturing data)
+ ADP employment report
+ Allbirds reverse stock split goes into effect if you're looking for a way to more efficiently light your money on fire…
Yesterday, I asked, “You can only drink one of Constellation Brands' brands for the rest of your life. Which is it?”
Modelo
Corona
Svedka
Here’s what some of you guys had to say (and my thoughts in italics)…
Modelo: "I'm sure it's not the best wine, but you get variety by mixing it up with whites, rose, and reds. Probably would have voted for Kim Crawford if you could guarantee me the chicks from the ads would be drinking with me." Calling the horny police.
Svedka: "Who the fuck is Kim Crawford?" Exactly the response I'd expect from someone who drinks Svedka for the rest of their lives…
Corona: "That commercial of the palm tree in Christmas light is literally timeless. Name another ad from the 90s that still gets run?" Ok... the M&M’s Christmas one (“They do exist!”)
Modelo: "What pairs best with hotdogs? Modelo is the only answer” Can't tell if this is a sexual joke or...
Here’s today’s question…
What's the best type of golf?
Oh, and one more thing…
What did you think about today's newsletter?
Does this look like the face of a guy you should take financial advice from?
No, it’s the face of an individual who is financially irresponsible/dumb enough to be talked into spending money on a family photo shoot that he could have just done with his iPhone. 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.