🦢Black Swan Street Weekly Stock Market Summary (Nov. 6th - Nov. 10th 2023)

Welcome to Black Swan Street!

Welcome to Black Swan Street, the financial newsletter that makes staying up-to-date easier than 1-2-3…

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

• Elon Musk’s Newest AI Venture🤖

• Apple Designers Attack Apple📱

• Earnings Summary💰

• Headline Roundup🗞

• Next Week In The Stock Market🔮

Read time: 5 minutes

Elon Musk’s Newest AI Venture🤖

Tesla, SpaceX, Neuralink, X, The Boring Company, and now something else?

This week, Elon Musk announced ‘Grok’; the first technology out of his newest AI company ‘xAI’.

Grok? This sounds like a villain from Lord of the Rings.

Grok is an AI chatbot, similar to ChatGPT, but it’s trained on data from social media platform X, giving it access to real-time data. Grok is also willing to answer politically sensitive and controversial questions the other AI chatbots aren’t. For example, the recipe for c*caine.

The goal of Grok is to “empower research and innovation” and “assist in the pursuit of understanding”.

How powerful is Grok?

A series of evaluations that’s designed to measure math and reasoning abilities is below:

GSM8k: Middle school math word problems

MMLU: Multidisciplinary multiple choice questions

HumanEval: Python code completion task

MATH: Middle school and high school mathematics problems written in LaTeX

As you can see, Grok is pretty interesting. When comparing these evaluations to other language models, it scored pretty strongly.

How can you try Grok?

You can join the waitlist here.

Apple Designers Attack Apple📱

Former Apple designers, Imran Chaudhri and Bethany Bongiorno, announced the launch of a new AI Pin to be released on November 16th.

The AI Pin is the first product launch from Humane, a five-year-old artificial intelligence startup.

The Humane AI Pin allows the user to make calls, send texts, and look up information through voice controls. It also includes a laser display that turns your palm into a mini screen that can show things like the time, date, or what’s nearby.

The Pin is worn on your lapel and it intended to replace your smartphone.

The AI Pin is set to cost $699 and require an additional $24-per-month data subscription to T-Mobile.

Humane has raised over $200M from the likes of Microsoft, Tiger Global, Sam Altman, and Salesforce CEO Marc Benioff.

Earnings Summary💰

Headline Roundup🗞

• Hilton Grand Vacations to buy Bluegreen Vacations for $1.5B, or $75/share, a 100% premium from previous closing price - INV

• Align Technology to buy back $100M of its common stock - MW

• PepsiCo CFO, Hugh Johnston, to leave PepsiCo and become Disney’s new CFO - CNBC

• Bain Capital to acquire consulting firm Guidehouse for $5.3B in private M&A deal - WSJ

• NRG Energy announces $950M share repurchase agreement - YF

• Kinder Morgan to purchase NextEra Energy Partners’ Texas pipeline for $1.8B - WSJ

• Citigroup fined $25M for discriminating against Armenian-Americans - WSJ

• Eli Lilly wins FDA nod for obesity drug that rivals Ozempic - BBG

• Warren Buffett’s Berkshire Hathaway sits on record $157B cash pile - WSJ

• South Korea to ban short-selling of stocks until June 2024 - BBG

• OpenAI announces GPT-4 Turbo, its most powerful AI yet - CNBC

• American Airlines offering $250,000 bonuses to poach FedEx and UPS pilots - NYP

Next Week in the Stock Market🔮

Earnings Calendar Next Week:

What the swan is watching:

Monday: Tyson Foods

Tuesday: Home Depot

Wednesday: Target, Cisco, Advance Auto Parts, TJX, JD.com, Palo Alto Networks

Thursday: Alibaba, Walmart, Ross Stores, Applied Materials, Macy’s, Gap

Economic Calendar Next Week:

The Swan’s Picks🦢

🐥Chick-Fil-A reaches 3,000 stores: Everyone’s favorite fast-food restaurant is set to open its 3,000th restaurant this week. To celebrate this moment, they’ve also pledged to donate $300k to “help fight food insecurity and support education in local communities”.

🍫Nestle says goodbye to Caramac bars: After a long 64 years, Nestle has decided to retire the caramel bar ‘Caramac’.

🎮GTA VI is finally on the way: Gamers rejoice! The long-awaited ‘Grand Theft Auto VI’ trailer is set to be released this December. This also coincides with the 25th anniversary of the maker of GTA - Rockstar Games. The last game in the series, ‘GTA V’, was released back in 2013 and did $800M in global sales on its first day.

❌WeWork bankruptcy is official: After lots of talk, WeWork did it… Chapter 11 bankruptcy. The company went from being valued privately at $47B to losing 99% of its value and filing for bankruptcy.

The Wrap-Up🔄

… And that concluded another week of Black Swan Street!

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