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Like the smartest kid in class getting a “B” on the test, Delta’s earnings might be an omen for the rest of the industry.

Yesterday, the most profitable US airline cut its full-year guidance and reported lower-than-expected earnings as surging fuel prices courtesy of the Iran war strained its otherwise booming business. It was the first time in two years that the airline missed estimates.

“All of it’s fuel,” CFO Erik Snell told reporters as he explained the changes. The carrier said it paid $500 million more on fuel in Q3 than projected in July, which brought its gas bill to $4.1 billion, a 62% increase from last year.

To offset some fuel costs, Delta — like its rivals — honed in on wealthy flyers, as revenue from premium seating rose 18%. Investors will get a better idea of how this strategy worked for others when United, Southwest, American, and more report later this month.

Even in the face of strong travel demand that’s expected to continue through the holidays, Delta couldn’t shake the oil shocks. Despite this, it still has something the rest don’t: It’s the only major US carrier that owns its own oil refinery.

📸 : Getty by @brewmarkets

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2 days ago

“Can you hear me now?”

For the first time in a long time, there could be a new major player in the wireless carrier market. On Thursday, Elon Musk’s SpaceX struck an $8 billion deal to purchase a nationwide spectrum portfolio, the Wall Street Journal reported.

For those who don’t speak telecom, a spectrum portfolio is a collection of cellular licenses for specific frequencies over certain geographic areas — i.e., the airwaves a future SpaceX service would run on.

The licenses SpaceX has agreed to buy, from tech and communications investment firm Grain Management, are in the 800-megahertz band. The low-band portfolio is intended to improve SpaceX’s indoor mobile coverage.

Though the deal still needs FCC approval, SpaceX, in its own announcement, said that the move addresses “one of the key remaining technical gaps” for Starlink Mobile, the wireless network it plans to launch in late 2027.

With SpaceX stating its intentions so plainly, the news sent telecom giants into a historic rout. Verizon closed down 8.8% for its worst day since 2002, T-Mobile fell 13.3% for its worst day since 2013, and AT&T fell 9.8% for its worst day since 2000. SpaceX shares, meanwhile, rose a modest 1.3%.

📸 : Getty by @brewmarkets

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3 days ago

What is Brian Niccol cooking?

A little more than two years after the Starbucks CEO jumped from Chipotle to the coffee chain, it appears the boss is interested in acquiring his old stomping grounds. The Financial Times (FT) reported this morning that Starbucks has explored purchasing the fast-casual Mexican chain.

Following the news, shares of Chipotle rose as much as 8% before closing up 6.2%. Meanwhile, Starbucks tumbled nearly 6% before paring those losses ahead of the bell to finish down 0.4%.

Since Niccol’s departure from Chipotle, both chains have seen shares lag behind the broader S&P 500. Starbucks’ stock has risen around 20% since announcing Niccol’s hiring in August 2024, while Chipotle has seen shares crater more than 40% over that same period.

Though FT reported that Starbucks has been working with advisors on a potential proposal, it remains unclear how serious the coffee giant is about its interest.

📸 : Getty / Starbucks / Chipotle by @brewmarkets

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4 days ago

Elon can launch rockets into space, but can he get a $40 billion AI deal off the ground?

SpaceX is angling to raise that lofty sum, split between $10 billion in bank loans and $30 billion in investment-grade debt, to buy Nvidia chips for its AI ambitions, the Financial Times reported.

If Elon secures the bag, the deal would be among the largest-ever debt financings for an AI buildout. Potentially closing in 2027, it’s being led by Apollo, with bond-fund giant PIMCO also weighing whether to join.

Wall Street was immediately wary as SpaceX shares slid 2.5%, and with good reason: SpaceX would be borrowing as much as it’s expected to generate in revenue this year ($44.5 billion). It also doesn’t help that the company has shopped the deal around without many takers, reportedly passing out a two-page memo with a picture of outer space and an arrow promising to build data centers “somewhere in the universe.”

Still, SpaceX’s two Memphis data centers are firing on all cylinders, while the company’s AI business is expected to generate $60 billion in sales in 2027, up from July’s $38 billion estimate.

📸 : Getty / SpaceX by @brewmarkets

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5 days ago

The nuclear renaissance rolls on.

Announced today, Google has signed a $4.3 billion deal with Constellation Energy, operator of the US’s largest nuclear power fleet, to bring 890 megawatts of nuclear energy online.

The two-decade power purchase agreement will upgrade 11 reactors across six plants in Illinois, New Jersey, and Pennsylvania, with an additional 15-year energy supply deal between the two unlocking another 2.7 GW of power. As for the reason behind the deal? Yep, you guessed it: AI.

It’s the latest in a line of rewards Constellation continues to win as Big Tech pursues nuclear power to drive its AI buildout. Amazon previously inked a deal with the energy provider, and then came back for more last week. Two years ago, Microsoft also signed a 20-year agreement with the company, and Walmart struck a 15-year deal back in June.

Today’s news promptly sent energy stocks surging, powering a sector-wide rally. Constellation itself finished the day up 12.25%, while others like Talen Energy, Vistra, and reactor developer Oklo all rose alongside it.

📸 : Getty by @brewmarkets

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6 days ago

Trump Accounts are designed to give kids an early start on investing.⁣
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We break down how they work with our sponsor, State Street Investment Management. #ad by @brewmarkets

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6 days ago

Bloomberg Terminal Bros 1, Scott Bessent 0.

Less than a month after declaring himself “the house,” Treasury Secretary Scott Bessent has softened his tone. In an interview with Axios published Saturday, Bessent walked back his bravado, conceding, “I can’t control the bond market,” before adding, “What I can do is try to get people to slow down and think.”

Between Bessent’s comments, Treasury yields soared, with both the 30- and 10-year hitting two-decade highs. Bessent went on to defend his remarks, pinning the bond blowout on oil prices and flatly rejecting the idea that markets “slapped back” following the Treasury Department’s August plan to increase its buybacks.

“The house doesn’t win every hand. The house plays the percentages,” Bessent said, as he maintained his stance that the US bond market is still the strongest in the world. Dialing it back further, the Treasury boss explained he was only trying to make the point that he held “superior information” regarding policymakers’ thinking.

📸 : Getty by @brewmarkets

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10 days ago

Safe to say Mr. Burry is bearish on AI.

In his latest shot at the industry, the investor of ‘The Big Short’ fame wrote on X yesterday that it would be “for the benefit of humanity” for equities to tank and keep AI giants Anthropic and OpenAI from going public.

The post came in the wake of Burry’s latest Substack article, published Monday, in which the former hedge fund manager wrote that he was “more confident than ever” in the AI bubble bursting “sooner than later.” He went on to detail his latest positions, in which he swapped out shorts for puts on AI names like Nvidia, Palantir, Micron, Nebius, and Oracle—all of which expire between June and December of 2027.

Burry has argued that the spending on AI infrastructure has reached an unsustainable level, noting that the cash being used on new data center projects is “increasingly debt, with strings attached.” As the debt pile continues to grow for names like CoreWeave and Oracle, Burry wrote that “if the spending stops or slows, it all comes apart.”

Appearing to solidify the belief in his latest big bet, Burry’s musings came just as Anthropic’s leaked IPO prospectus flashed shaky numbers.

📸 : Getty / Paramount Pictures by @brewmarkets

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12 days ago

Anthropic’s IPO prospectus was spooky in more ways than one.

The Claude maker’s leaked filing, reviewed by Reuters, spends a large part of its 261 pages outlining all that could go wrong with AI, including “catastrophic or existential risks to humanity.” For investors thinking about buying in, the scarier read might be the 48 pages on the actual business.

Inside its financials, the company revealed revenue of $4.6 billion, losses totaling $42 billion, and $518 billion in future spending. If that weren’t enough, the firm also disclosed that just two customers accounted for nearly a quarter of revenue, and that many aren’t locked into long-term contracts.

It’s quite the filing, full of shaky numbers—leaving some to suggest that if the company’s name weren’t Anthropic, going public would be out of the question. Despite this, the company is still expected to make its market debut in November after the midterms, later than previously planned—but still ahead of OpenAI, which already delayed its IPO until early 2027.

📸 : Getty by @brewmarkets

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13 days ago

Zuck’s hunt for talent claims another.

Less than a year after taking charge of database service provider MongoDB, CEO and President Chirantan ‘CJ’ Desai has left to join Meta as its Chief Enterprise Platform Officer.

The hire comes alongside the launch of Meta’s new business unit, Meta Enterprise Platform, which plans to bring its full tech stack—including Muse agent, Meta Business Agent, Muse API, and Muse Code—to businesses and developers.

The exit sent MongoDB shares as low as 21% this morning before closing down 18.5%. Per CNBC, Zuckerberg made Desai the offer directly—enough for him to drop his MongoDB pay package and severance.

Last fall, Desai took over as CEO after stints at Cloudflare and ServiceNow. Dev Ittycheria—who served prior to Desai for 11 years—was named interim CEO by MongoDB’s board. Company shares are now down over 16% this year.

Meanwhile, Meta’s aggressive AI push rolls on. Since launching Muse on September 8th, company shares have surged nearly 20%, with the AI assistant’s downloads and partnerships exploding.

📸 : Getty / MongoDB / Meta by @brewmarkets

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14 days ago

Dave & Buster’s had a rough quarter and entertainment sales are on the decline. ⁣
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Can more games fix its stock problem? by @brewmarkets

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