HAPPY SATURDAY TO THE STREET
And welcome back to Street Tweets from The Street Sheet!
Meta (META) may not yet be the lead robot-maker in the AI race. But does seem the closest to being lead by a robot.
Mark Zuckerberg published a 6,500-word manifesto last week promising AI agents that will improve your relationships, your career, and your hobbies.
His flagship example: he asked an AI to pick a personalized recipe so he could bake with his daughter.
Sounds like something you wouldn’t need a data center and megawatts of power to figure out. A little emotional intelligence and lived experience should do the trick.
But hey. Must just not be how the fatherboard is wired.
— Brooks & The Street Sheet Team
MARKET REVIEW & PREVIEW
It was a week of mixed news, so only fitting that it was a mixed week for the major indexes, too. To start the week, Federal Reserve officials warned of repeated rate hikes to bring inflation to heel. But then core CPI printed 2.5%, its lowest reading since April 2021. All told, the S&P 500 and Nasdaq Composite both ticked up slightly, while the Dow slid a little more than 0.5%.
Wednesday brings the FOMC minutes from last month's hold. Housing starts also land Tuesday, where analysts expect a middling 1.3M, after pending home sales fell 5.4% and the 30-year fixed mortgage climbed to 6.70%.
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Most restaurant executives spent this earnings season blaming the consumer. Inflation squeezed budgets, traffic thinned, and guidance came down with it.
But one chain went the other way. It raised prices and customers kept showing up anyway, leading it to recently post its 22nd consecutive quarter of same-store sales growth. That’s the formula Warren Buffett credits for turning See’s Candy into a 100-bagger. Wall Street calls it pricing power.
The name and full breakdown sit inside in this week's Street Sheet Research report. Subscribe today.
Backed by a 90-day money-back guarantee.
The Year of the Overhyped IPO.
SpaceX: $250B in demand chasing a $75B raise, the largest offering in history, at roughly 4x oversubscribed.
Cerebras: $111B in demand chasing a $5.55B raise, the biggest AI chip IPO of the year, at more than 20x oversubscribed.
Unitree: $1.2 trillion in demand chasing a $900M raise, oversubscribed by a whopping 8,289x.
Guess that’s one way to generate infinite hype: a reasonable valuation!
Depends what dependent means.
Northwestern Mutual asked Gen Z if they feel financially dependent, and got 72%.
Bank of America (BAC) asked if they actually receive money, and got 34%.
The Bank of Mom trades with a very wide spread.
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No one picks stocks like Warren Buffett. But if you were to try, a good place to start might be a stock that checks his biggest boxes:
Empirical pricing power. Same-store sales rose 3.5%, and 2.0% of that came from more people walking in, rather than from higher prices.
Costs it hands straight to the customer. One key category of costs climbed 60 bps last quarter, and the crowd paid them without blinking.
Material momentum. The firm opened 16 new company-operated locations last quarter, its strongest quarter of unit growth ever.
Buffett also cares what he pays, and this one is not cheap. Shares trade at 66x forward earnings. That’s why the latest Research report covers the entry point as well as the name.
90-day money-back guarantee. Cancel anytime.
Robber Barron?
Yahoo Finance estimated Barron Trump’s net worth at $150 million, ahead of even Melania.
That $150M rests on an estimate that Barron holds 10% of the family crypto vehicle. The token behind it trades more than 80% below its 2025 high.
Even nepotism gets marked to market.
Simpler times.
A nickel in, instant settlement, and a house edge you could see through the glass.
