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Luke Kawa8/25/25

Keurig Dr Pepper tumbles after announcing $18 billion acquisition and planned split-up of coffee business from other drinks

Keurig Dr Pepper is admitting that soft drinks and coffee don’t mix.

The beverage company announced a plan to buy Dutch-based JDE Peet’s NV for 15.7 billion euros (or roughly $18.4 billion) in an all-stock deal and then cleave itself in two, separating the newly combined company’s coffee and other refreshment drinks into stand-alone entities.

This reverses the move from about seven years ago, when the closing of the merger between Dr Pepper Snapple Group and Keurig Green Mountain created the diversified beverage giant in the first place.

Shares of Keurig Dr Pepper are down nearly 7% as of 8:25 a.m. ET, the worst performer among S&P 500 constituents.

“Upon separation, Global Coffee Co., with approximately $16 billion in combined annual net sales, will be the world’s largest pure-play coffee company,” the company said in a press release.

Management anticipates $400 million in cost savings stemming from this acquisition, and expects the deal will be additive to its bottom line in the first year of the union.

This purchase “to essentially help it divest its struggling Keurig coffee business (23% of sales) is a positive move to add focus to its strong cold beverages business,” Bloomberg Intelligence senior industry analyst Kenneth Shea wrote.

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Tasha Matsumoto

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J. Edward Moreno3h

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Micron jumps after rare double upgrade by BNP Paribas Exane, which lifts price target to Street high of $270

Micron, the best-performing member of the VanEck Semiconductor ETF this year, is jumping on Monday thanks to converting its biggest doubter on Wall Street into its biggest fan.

BNP Paribas Exane analyst Karl Ackerman went through with a rare double upgrade of the memory chip specialist to “outperform” from “underperform.” In the process, he more than doubled his price target on the stock to $270 — the highest among analysts surveyed by Bloomberg — from $100, which had previously been the lowest price target on the Street.

“We now fully embrace high-bandwidth memory (HBM) as a sustainable, separate growth vector, and we beleive we are in the early innings of a memory supercycle,” he wrote.

Separately, analysts at Evercore ISI also boosted their price target on Micron to $137 from $100.

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IonQ soars after announcing “significant advancement in quantum chemistry simulations”

IonQ is ripping higher in early trading after the quantum computing company announced “a significant advancement in quantum chemistry simulations.”

In particular, this demonstration, performed in collaboration with a major automotive manufacturer, was more accurate than classical computing in calculating “nuclear forces at critical points where big changes occur.”

Knowing how different compounds behave and respond to force has potentially very useful commercial applications because it helps us discern how those materials can best be designed and utilized for different purposes.

“This research demonstrates a clear path for quantum computing to enhance chemical simulations that are foundational to decarbonization technologies,” said Niccolo de Masi, chairman and CEO. “Our work goes beyond academic benchmarks. It demonstrates a practical capability that can be integrated into molecular dynamics workflows used across pharmaceuticals, battery, and chemical industries.”

IonQ is the most commercially advanced pure-play quantum computing company, generating over $52 million in revenues over the past 12 months, well more than D-Wave Quantum, Rigetti Computing, and Quantum Computing combined.

Now, is this the reason why IonQ (and its peers) are on a tear today? Maybe. There’s a big rebound in most speculative pockets of the market after Friday’s tariff threat induced a tumble.

At the very least, this is a useful excuse. Traders have been exceedingly happy to bid up shares of quantum computing companies on their long-term potential, often (ironically) through short-term call options.

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Matt Phillips7h

Rocket Lab may be “alternative to SpaceX in the making,” says Morgan Stanley

Rocket Lab surged early Monday after Morgan Stanley analysts lifted their price target on the stock to $68 from $20, making them the high bidder among analysts covering the popular, but still money-losing, commercial space launch company.

The $68 target — right around where the shares are currently trading — is the highest among the 17 analysts tracked by FactSet.

And while Morgan Stanley analysts couldn’t bring themselves to upgrade the stock to a “buy,” leaving their rating at “equal weight,” they gave the stock a pretty bullish review, writing:

“We see a potential alternative to SpaceX in the making. The company is mirroring SpaceX’s footsteps in a number of respects, including scaling up rocket lift capacity, embracing booster reusability, and ultimately moving out on a constellation of its own (ala Starlink). Meanwhile, successive Electron launches and a growing manifest reinforce the company’s already-impressive track record. The market, in our view, is now taking valuation cues for RKLB from SpaceX’s implied valuation, which has grown from a reported ~$100bn at the end of 2021 to ~$400bn today.”

Rocket Lab shares have emerged as a favorite of retail traders this year, thanks to their gain of more than 150%. The stock is up roughly 600% over the last 12 months.

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