• Finance Wrapped
  • Posts
  • Tesla Pivots, Capital One Merges While Stock Market Goes Up This Week

Tesla Pivots, Capital One Merges While Stock Market Goes Up This Week

In partnership with

Hundreds of investing and finance newsletters hit my (and maybe your) inbox every week. This is the best of the best.

This week:

  • 🏦 Capital One and Discover Seal the Deal

  • 📉 Verizon Bleeds Lines Yet Boosts Net

  • ✈️ Boeing Rally Clears Clouds

  • 🚘 Tesla Profit Lag Sparks Musk Refocus

  • 🧭 Anthropic Charts AI Ethics

  • 🇪🇺 DMA Hammer Falls on Tech Twins

  • 🤔 3 stocks to consider

With how quickly the market and investment climate is changing right now, we can’t afford to not stay up to date… You can always read the latest and most relevant finance news & updates at FinanceWrapped.com.

Pay No Interest Until Nearly 2027 AND Earn 5% Cash Back

Some credit cards can help you get out of debt faster with a 0% intro APR on balance transfers. Transfer your balance, pay it down interest-free, and save money. FinanceBuzz reviewed top cards and found the best options—one even offers 0% APR into 2027 + 5% cash back!

🏦 Capital One–Discover Merger Gets Final Approval

Regulators have signed off on Capital One’s $35.5 billion acquisition of Discover, clearing the way for the largest US banking merger since 2008.

Discover shareholders will own 40% of the new entity, giving Capital One a stronger foothold in the credit card market and positioning the combined company to better compete with Visa.

📉 Verizon Loses Subs Despite Broadband Growth

New Q1 results revealed 289,000 postpaid phone subscribers have walked away. Verizon blamed part of the churn on reduced federal spending under President Trump.

The company’s broadband business, however, continues to shine, adding 339,000 new internet customers as it chips away at cable’s market share.

✈️ Boeing’s Turnaround Gains Altitude

After a brutal 2024, Boeing is showing signs of recovery with better-than-expected Q1 earnings and an 18% revenue jump.

The company delivered 56% more planes than last year, helping narrow its gap with Airbus and lift investor sentiment, despite geopolitical headwinds.

🚘 Tesla Q1 Earnings Miss, Musk Pivots Back

Tesla's first-quarter earnings fell short of diminished Wall Street expectations after recent vehicle price cuts and lower delivery volumes.

CEO Elon Musk stated he will decrease his time allocation to DOGE significantly starting next month to refocus efforts on Tesla. Despite the weak quarter, Musk affirmed that plans for launching robotaxis and developing less expensive vehicles are proceeding.

🧭 Anthropic Maps AI's Moral Compass

AI research firm Anthropic has mapped the operational values of its AI model, Claude, by analyzing hundreds of thousands of real-world user interactions.

The study identified over 3,300 unique values expressed by the AI, categorizing them into five main types. Researchers noted that values like helpfulness and professionalism were common.

🇪🇺 EU Hits Apple and Meta With First DMA Fines

The European Union levied its first penalties under the new Digital Markets Act (DMA), targeting Apple and Meta. Apple was targeted for its restriction of third-party app stores, while Meta is facing fines for its “pay to consent” model of data usage.

Both companies face a 60-day deadline to comply with the rulings or risk additional fines, though appeals are anticipated.

Stock ideas

Here are three of my favorites from this past week.

Analysis provided by public.com.

Remember to always DYOR.

LifeMD, Inc. (LFMD)

Bullish Case

  • Successful Transformation & Profitability: LifeMD has evolved from a supplement company to a multi-specialty telehealth provider with impressive margins.

  • Strong Financial Growth: Q4 2024 EPS beat estimates by 520%, with the GLP-1 weight management segment driving 40% of total revenue.

  • Undervalued Compared to Peers: Trading at just 1.4x LTM telehealth revenue with a $262.5M market cap, LifeMD offers significant value in the GLP-1 market.

Bearish Case

  • Competitive Pressures: LifeMD faces intense competition in the telehealth space, including potential long-term threats from Amazon and other well-funded players.

  • Regulatory and Supply Risks: The company remains vulnerable to potential regulatory changes in telehealth and GLP-1 medication supply fluctuations.

Fabrinet (FN)

Bullish Case

  • Strong Earnings Performance: Fabrinet’s Q2 2025 EPS beat estimates by 4.82% with significant growth over the same quarter last year.

  • AI Infrastructure Opportunity: As a key manufacturer in the optical networking space, Fabrinet is positioned to benefit from the ongoing AI infrastructure buildout.

  • Supply Constraints Advantage: Fabrinet's manufacturing capabilities become increasingly valuable in a supply-constrained market.

Bearish Case

  • Cyclical Tech Investment Risk: Despite the current massive AI capex spending from tech giants, there's a risk of overbuilding data centers.

  • Competitive Manufacturing Landscape: As more manufacturing shifts onshore with government support, Fabrinet could face increased competition from new entrants.

PubMatic, Inc. (PUBM)

Bullish Case

  • Exceptional Value Metrics: PubMatic trades at just 1.38x sales with an 18.25% free cash flow yield, despite being a Rule of 40 tech company.

  • Strategic Growth in Streaming: The company is capitalizing on growth in ad-supported streaming platforms like Roku Channel and Tubi.

  • Aggressive Capital Return: Management has spent over $140 million on share buybacks in 2023-2024, reducing outstanding shares by 8%.

Bearish Case

  • Big Tech Competition: PubMatic faces fierce competition from Google, Amazon, Microsoft (Xandr), and other advertising giants with significant data advantages.

  • Customer Concentration Risk: The company's relatively small scale compared to competitors creates vulnerability to customer concentration.

💙 That’s a wrap

Share this newsletter with your friends & family to make sure they’re keeping up with the rapidly-changing investment climate.

Disclosures

  • There are affiliate links above; we'll get a couple of bucks if you take action after you click.

  • Nothing above is financial advice