Welcome to Black Swan Street!

GameStop is becoming a hedge fund, Elon Musk's newest venture raises $1 billion, Alaska Airlines and Hawaiian Airlines $1.9 billion deal, GTA 6 trailer, The Premier League sells streaming rights for $8.4 billion...

It was an action-packed week, so let’s get into it:

• GameStop The Hedge Fund🎮

• Elon Musk’s ‘xAI’ To Raise $1 Billion🤖

• Earnings Summary💰

• Headline Roundup🗞

• Next Week In The Stock Market🔮

Read time: 6 minutes

GameStop The Hedge Fund🎮

In the weirdest turn of events…

GameStop is becoming a hedge fund?

Well, Kinda. Let me explain.

This week, GameStop released its quarterly report. In it, GameStop announced that the company's cash can now be used to buy equities instead of just short-term debt and that CEO Ryan Cohen is in charge of the investments.

In the filing, “Mr. Cohen directs the investment activity of the company in public and private markets pursuant to authority granted by the Board of Directors. Depending on certain market conditions and various risk factors, Mr. Cohen, in his personal capacity or through affiliated investment vehicles, may at times invest in the same company in which the company invests”.

This screams: Ryan Cohen front-loads shares, then ‘GameStop” dumps millions from its cash reserves into the same companies, and then Cohen escapes with an old-fashioned pump and dump.

Talk about a conflict of interest.

Who knows. Maybe I’m wrong and GameStop becomes the next Citadel. I’d love to hear your opinion on this ↓

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Elon Musk’s ‘xAI’ To Raise $1 Billion🤖 

In the past, Black Swan Street has covered Elon Musk’s newest venture and what ‘xAI’ is, and their flagship product ‘Grok’ is - Read it here

Well news broke that ‘xAI’, is looking to raise up to $1 billion in an equity offering, with more than $134 million already sold - according to an SEC filing.

The company said it has “entered into a binding and enforceable agreement for the purchase and sale” of the remaining ~$866 million.

The valuation for the fund-raising is said to be likely between $4 billion and $10 billion.

Earnings Summary💰

In-Depth Earnings Dive:

Headline Roundup🗞

• Alaska Airlines agrees to buy Hawaiian Airlines in $1.9 billon deal - CNBC

• Spotify to cut 1,500 jobs (~17% of workforce) in third round of layoffs this year - NYT

• Twilio lays off of 5% of employees - CNBC

• Uber, Jabil, and Builders FirstSource to join S&P 500 - BBG

• GM will raise $3 billion through a two-part bond sale after signing a term loan agreement last week - BBG

• Tiger Global’s biggest venture fund has 18% loss after markdowns - BBG

• Wells Fargo CEO warns of severance costs of nearly $1 billion in fourth quarter as layoffs loom - CNBC

• Procter & Gamble to record up to $2.5 billion in charges in Gillete write-down - RT

• U.S. JOLTs Job Openings: 8.733M, from previous 9.35M, and below with 9.30M forecast - Lowest in more than 2.5 years

• Apple’s market cap closes above $3 trillion - CNBC

• San Francisco is building to bring residents back - WSJ

• Mastercard to buy back up to $11 billion of Class A shares - RT

• Amazon is no longer offering Venmo option for customers at checkout - BBG

• Elon Musk’s SpaceX valued at $175 billion or more in tender offer - BBG

Next Week in the Stock Market🔮

Earnings Calendar Next Week:

What the swan is watching:

Monday: Oracle

Tuesday: Johnson Controls

Wednesday: ABM Industries, Adobe

Thursday: Jabil, Costco, Lennar

Friday: Darden Restaurants

Economic Calendar Next Week:

The Swan’s Picks🦢

⚽️Premier League sells UK rights for €6.7 billion: One of the most recognized soccer leagues in the world - The Premier League - just sold four years of UK broadcast rights to Sky Sports and TNT Sports for $8.4 billion.

🎬Beyoncé’s steals number 1 at the box office: The concert film of Beyoncé’s ‘Renaissance’ tour topped the box office with a $21 million opening weekend in North America. Not accounting for inflation, it’s the first time in 20 years a film has opened over $20 million on the weekend after Thanksgiving.

🎮Grand Theft Auto 6 trailer is here: One of the most anticipated games of the decade - GTA 6 - released its official trailer this week. If you haven’t been keeping track, it has been a whole 10 years since the previous installment in the series - GTA 5 - was released.

⭐️Taylor Swift continues her year of dominance: Everyone knows that Taylor Swift has been in the spotlight this year. In terms of accolades she’s been killing it. And she just added a new one, Taylor Swift is the Time ‘Person of the Year’.

The Wrap-Up🔄

That’s it for this week of Black Swan Street!

Let us know what you thought ⬇

Black Swan Street Review of the Week ❤️