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Hey Snackers,
Fall is definitely in full swing, and that means it seems everyone is enjoying corn mazes, leaf peeping, and, of course, apple picking. Chances are, if you ask fellow travelers to the orchard what their favorite apple is, one answer will reign supreme: Honeycrisp. While they may be a “diva” variety for farmers, there’s a reason they’re known as “moneycrisps.” We charted the rise and fall of apple varieties, and we’re happy to see that America increasingly agrees that the Red Delicious is anything but.
Stocks shook off premarket regional banking jitters and bubble fears to end the week on a positive note after comments from President Trump seemed to assuage investors about the risks of trade war escalation with China. The S&P 500 and the Nasdaq 100 ended the day up 0.5% and 0.6%, respectively, while the Russell 2000 finished lower for the second session in a row, down 0.6%.
Quiz or treat: See if you can scare up a high score with our Snacks Seven Quiz! Here’s a non-trick question:Â
Which fast-food chain announced its first rebrand in 13 years, which includes a jingle by Shaboozey?
Check your answer.
YouTuber MrBeast has filed a trademark for a financial services venture. Great timing?
One of the recurring themes in the oeuvre of YouTube’s MrBeast is large sums of money, often rewarded by the thousands or even millions, to contestants that participate in his various viral challenges.
But rather than giving cash away for completing stunts like sitting in a bathtub of snakes or being trapped in a burning building, the 446 million-subscriber-strong content creator now seems to be exploring the idea of accepting deposits.
The internet sensation, real name Jimmy Donaldson, filed a trademark for “MrBeast Financial” with the US Patent Office earlier this week, Business Insider reported on Wednesday.Â
It was an interesting week to announce an interest in banking, to be sure, because meanwhile regional banks were cratering following more news of souring loans.
Zion Bancorp tanked after announcing that it’s taking a $50 million charge-off related to loans of more than $60 million made to investment funds that purchased distressed commercial mortgage loans.
Western Alliance Bancorp was also facing significant selling pressure, as it made a loan with an outstanding balance of nearly $100 million to the same investment funds.
JPMorgan CEO Jamie Dimon, a sober voice on such matters, remarked last Tuesday on a conference call with analysts that “when you see one cockroach, there are probably more. Everyone should be forewarned on this one.”Â
Exciting times.Â
So, what’s Donaldson’s angle? Per BI, these initiatives are very close to a pitch deck from the YouTuber’s company that was shown to investors back in February. This described “Beast Financial,” a fintech arm that would provide “customized offerings” — like student loans, credit insights, and insurance — supported by financial literacy content and targeted toward the vast, growing, and predominantly young MrBeast audience.
The Takeaway
Perhaps he does have an edge against existing banks; after all, what is leaving a guy in a burning house if not a slightly more rigorous due diligence than usual? Can you truly say you’ve appraised a property if you haven’t locked someone in it for 100 days? We, for one, cannot think of a more thorough version of Know Your Customer than filming them locked in a supermarket for seven weeks.Â
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Stories we’re obsessed with
Trump’s “fat loss drug” comment trims share prices: Novo Nordisk and Eli Lilly stocks both suffered last week after the US president said that GLP-1s will be less than $150 or “much lower” out of pocket. Dr. Mehmet Oz, administrator of the Centers for Medicare & Medicaid Services, quickly interjected that no deals with drugmakers have been struck yet, but it’s a reminder that even if Big Pharma can put tariff worries behind it, the administration’s push to lower drug prices could still sink stocks.Â
Why did Oracle’s stock drop Friday? The somewhat counterintuitive tumble came despite Wall Street analysts’ more or less favorable reaction to Oracle’s investor day presentation Thursday. Analysts at Jefferies pointed the finger at capex concerns, but a D.A. Davidson & Co. analyst suggested it could be disappointment over gross margins.
The Best Thing We Read Today
The revenue race between Anthropic and OpenAI is getting more heated
Though OpenAI’s valuation has soared, making it the world’s most valuable private company and currently far ahead of Anthropic’s figure, the two are closer on revenue than you might expect.
What Else We're Snackin'
Barclays jumped over “hold” and changed its rating from “overweight” straight to “underweight” for AST SpaceMobile
Meta struck a $30 billion deal with Blue Owl to finance its Hyperion data center
The CEO of Hims & Hers sold stock after the company’s menopause expansion announcement boosted shares
Monday Night Football: Traders on Robinhood’s* prediction markets are pricing a Detroit win around $0.70, with Tampa trading for $0.31. For the late game, the Seahawks have an edge and are trading at $0.64 to beat the Texans
*Robinhood Markets Inc. is the parent company of Sherwood Media, an independently operated media company subject to certain legal and regulatory restrictions.
Snack Fact Of The Day
JPMorgan estimates that the basket of stocks gauging AI’s market impact is now worth about 44% of the S&P 500’s total market cap.
This Week's Events
Earnings expected from Netflix, Coca-Cola, General Motors, Verizon, GE, Philip Morris, Mattel, and Texas Instruments
Earnings expected from AT&T, Seagate Technology, IBM, and Southwest Airlines
Earnings expected from Tesla, GE Vernova, T-Mobile, Intel, Ford, and Nokia
September CPI Data. Earnings expected from American Airlines, Procter & Gamble, and Western Digital
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