🦢Black Swan Street Weekly Stock Market Summary (April. 1st - April. 5th 2024)

Welcome to Black Swan Street!

Welcome back to another edition of Black Swan Street!! This week was filled with billion dollar rumors, prison sentencing, and much more…

So let’s just dive straight into it:

• Google’s Potential Bid For HubSpot💼

• The Swan’s Selections🦢

• In Other News🗞️

• Next Week In The Stock Market🔮

• The Swan’s Story Of The Week🦢

Read time: 7 minutes

Google’s Potential Bid For HubSpot💼

What Happened: The second the internet found out that Alphabet, the parent company of Google, was in talks to make a bid for the marketing software company Hubspot…

Well… let's just say investors ran to purchase some shares. 

Background: HubSpot, based in Cambridge, Massachusetts, had a market cap of around $32 billion before the news was leaked by Reuters. The company provides businesses with marketing and customer service software.

Company Synergies: Many corporations track their SEO and Google Analytics data through HubSpot to see how well their site and the blogs or articles within it are performing over time, so the synergies are definitely present between the two companies. 

Potential Implications: Alphabet must be careful as it has faced some major antitrust scrutiny over the past year.

• The U.S. Department of Justice recently filed its second antitrust suit against Google’s ad business.

• The first antitrust lawsuit, filed in October 2020, accused Google of unlawfully obtaining a monopoly in the search market.

Bottom line: If the acquisition were to go through, it would be the largest in Alphabets history and allow for its mega pile of cash to be put to use, currently at $110.9 billion as of the end of December.

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The Swan’s Selections🦢

🚘Tesla Deliveries Fall As It Rolls Out Free FSD Trials. Tesla has missed its mark massively, handing over only 386,810 vehicles in the first three months of 2024, falling well short of analysts’ average estimate for 449,080 deliveries. This comes while also promoting its controversial FSD assistance system.

👮‍♂️Sam Bankman-Fried Sentenced To 25 Years. Sixteen months after the collapse of FTX, SBF was finally convicted and sentenced to a quarter of a century in prison. A turn of events since that time has caused some people to question the verdict. Was his sentence justified now that FTX is able to repay its former users?

📁McKinsey Is Paying Managers Not To Work? That's right. McKinsey has decided to stray away from the traditional path of mass layoffs by offering their senior managers an interesting proposition: 9 months paid leave to look for a new job and leave the company.

💼UK PE Cashed Out. A group of 3,000 UK private equity dealmakers earned €5 billion in carried interest in the 2022 tax year. This is a +47% increase when compared to the €3.4 billion in 2021. What is carry? Carried interest is a percentage of the profits earned in a fund that is paid out as compensation.

🏀Biggest Betting Event Of All Time In Women’s Sports. As you know at Black Swan Street, we like to talk money. And we can’t talk money without mentioning this: This week’s matchup of Iowa and LSU in the women’s March Madness bracket was the biggest betting event of all time for women’s sports, according to FanDuel. Interestingly enough, only 26% of bettors are women.

In Other News🗞

• Walgreens records a $5.8 bilion impairment charge on VillageMD bet - RT

• Home Depot will acquire professional building-projects supplier ‘SRS Distribution’ in an $18.3 billion deal - WSJ 

• OpenAI and Microsoft plan a $100 billion data-center project - TI

• Citi to cut 430 jobs in IB, TMT, and ECM - BBG

• U.S. manufacturing grew for the first time in 1.5 years - RT

• BlackRock launched its first active equity ETFs in Europe - FT

• Advent International will take Canadian payments processor ‘Nuvei’ private in a $6.3 billion all-cash deal - WSJ

• Regulators probe BlackRock and Vanguard over huge stakes in U.S. banks - WSJ

• Intel disclosed a $7 billion operating loss in its semiconductor manufacturing (foundry) business - CNBC

• Taiwan hit by strongest earthquake since 1999 - RT

• Paramount Global agreed to enter exclusive merger discussions with Skydance, favoring the media company over Apollo Global’s recent $26 billion cash offer - WSJ

Next Week in the Stock Market🔮

Earnings Calendar Next Week:

What the Swan is watching:

Wednesday: Delta Airlines

Thursday: CarMax, Constellation Brands, Fastenal

Friday: JPMorgan Chase, Wells Fargo, BlackRock, Citigroup, Progressive, State Street

Economic Calendar Next Week:

The Swan’s Story Of The Week🦢

🛏️A $2.6B+Mattress Startup Is Disrupting Silicon Valley

The only thing Mark Zuckerberg and Elon Musk can agree on is a $2.6 billion mattress company. 

The rich have always been obsessed with optimizing their health. These days, billionaire antics feel more extreme than ever, from the cold plunge craze to billionaires trying to reverse their aging.

However, one mattress startup seems to be the biggest winner for billionaire health purchases. - (BSS)

The Wrap-Up🔄

🎊🎉 That’s it for this week 🎉🎊

Per usual, let us know what you thought⬇️

Black Swan Street Review of the Week🖤