HAPPY MONDAY TO THE STREET.

European elites once paid thousands for pineapples. Then technology turned them into $2.50 produce aisle staples. Is gold next?

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STOCK HEATMAPS

S&P 500 Heatmap. Credit: Finviz

All Stock Heatmap. Credit: Finviz

Global ADR snapshot. Credit: Finviz

Market Movers

APPLE, SAREPTA, TERADYNE

$AAPL ( β–² 4.31% ) Low Expectations for Apple’s iPhone 17 Could Be Helping Boost the Stock. Here’s Why (Investopedia)

$SRPT ( β–² 7.0% ) BMO upgrades Sarepta on Elevidys uptake, pipeline prospects (Investing.com)

$TER ( β–² 12.79% ) Why Is Teradyne Stock Soaring Today (StockStory)

$BETR ( β–² 46.61% ) Better Home & Finance stock doubles after investor behind Opendoor rally calls it the 'Shopify of mortgages' (YF)

$SHOO ( β–² 3.56% ) Steven Madden upgraded on fashion rebound, Crocs cut on share concerns (Investing.com)

OVERHEARD ON THE STREET

CNBC: Spirit Airlines $SAVEQ ( β–² 0.43% ) will furlough 1,800 flight attendants and seek $100M in pilot savings amid its second bankruptcy.

FOX Business: Michelob Ultra $BUD ( β–Ό 1.3% ) has overtaken Modelo Especial $STZ ( β–² 0.42% ) as America’s top-selling beer.

WSJ: Pfizer $PFE ( β–² 0.04% ) will acquire weight-loss drug developer Metsera $MTSR ( β–² 60.8% ) for up to $7.3B, reentering the obesity drug market.

Reuters: Warren Buffett’s Berkshire Hathaway sold its remaining BYD stake after 17 years, locking in a more than 20-fold gain.

CNN: The FTC trial against Amazon $AMZN ( β–Ό 1.66% ) begins today, focusing on allegations it tricked customers into Prime signups and obstructed cancellations.

Tomorrow's Trade Idea, Today

PLAYING THE DOLAN DISCOUNT

Priced Below the Playbook

Sports franchises have commanded record valuations this year. The Boston Celtics sold for $6.1 billion, only to be topped by the Los Angeles Lakers at $10 billion.

Yet Madison Square Garden Sports $MSGS ( β–² 0.87% ), owner of the Knicks and Rangers, trades at just $215 a share, valuing the company at $5.2 billion plus debt. That’s less than half the estimated $11 billion worth of its two teams, based on Forbes’ latest figures.

Investors call this the β€œDolan discount.” CEO James Dolan, who controls the company through supervoting shares, has long said he would never sell. Without a transaction, the stock has lagged: down about 5% this year.

Ways to Unlock Value

Analysts and shareholders still see options. Citigroup’s $C ( β–² 0.79% ) Steven Sheeckutz initiated coverage with a Buy rating and a $285 target, implying 32% upside.

The analyst noted scope for the gap to close if MSG Sports sells a minority stake in the Knicks or Rangers. COO Jamaal Lesane said in August that the company doesn’t believe its value is β€œappropriately reflected,” adding that a partial sale is not off the table.

Others suggest splitting the franchises into separate companies, which could trade at a premium. A potential going-private deal has also been floated, particularly given tax-law changes in 2027 that could penalize public sports companies for deducting player salaries.

Waiting on the Whistle

Financial performance has been mixed. Adjusted operating income fell 78% last year, pressured by higher salaries, a luxury tax payment, and lower media rights fees.

Conditions could potentially improve as a new NBA TV deal kicks in, potentially adding $100 million in annual revenue.

Still, sports assets rarely trade on cash flow. The Knicks and Rangers remain iconic brands, but the path to realizing their full value may depend on how much pressure the Dolans feel to change.

Are you bullish or bearish on Madison Square Garden Sports (MSGS) over the next 12 months?

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ON OUR RADAR

NYT: A federal judge allowed Ørsted and BlackRock’s $5B Revolution Wind project to resume construction despite Trump’s stop-work order.

Axios: Fed governor Stephen Miran urged steep rate cuts, warning current policy risks layoffs and unemployment amid Trump’s Fed reshaping.

CNBC: Nike $NKE ( β–² 0.55% ) will launch its delayed NikeSKIMS activewear line with Kim Kardashian Friday, aiming to recapture market share from rivals.

FT: Treasury Secretary Scott Bessent said the US could mount a β€œlarge and forceful” intervention to stabilize Argentina’s markets.

Entrepreneur: Build-A-Bear posted record $253M revenue and raised its outlook, with shares up 60% despite tariffs.

STREET TWEET

Who relies on H-1B talent the most?

Tech dominates the list, with Amazon, Apple, Meta $META ( β–Ό 1.63% ), Microsoft $MSFT ( β–Ό 0.67% ), and Google $GOOGL ( β–Ό 0.86% ) among the top employers of H-1B visa holders.

It’s not just Silicon Valley though. Wall Street itself is particularly exposed, as well, with Deloitte and JPMorgan $JPM ( β–Ό 0.74% ) among the top 12 employers.

FRIDAY’S POLL RESULTS

Are you bullish or bearish on Nike $NKE ( β–² 0.55% ) over the next 12 months?

β–‡β–‡β–‡β–‡β–‡β–‡ 🐻 Bearish

β–‡β–‡β–‡β–‡β–‡β–‡Β πŸ‚ Bullish

And, in response, you said:

  • πŸ‚ Bullish β€”Β 

    • β€œJust Shoe It.”

  • 🐻 Bearish β€”Β 

    • β€œCompetitors are getting stronger. Example: Skechers Slip-On Walkers versus Nike Walkers.”

Reply

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