Hundreds of investing and finance newsletters hit my (and maybe your) inbox every week. This is the best of the best.
This week:
📉 The Street Bleeds Green to Red
📞 Bezos Gets an Unexpected Call
🚫 Tariff Talk Stops at Walmart
🍹 Economic Outlook on the Rocks
🛫 American Files and Flies Solo
🗑️ WM Cleans Up the Market
🤔 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.
📉 Wall Street’s 100 Days of Pain
President Trump's second administration has set an unwanted record with the worst stock market performance during a president's first 100 days in half a century.
Major indices have struggled with aggressive tariff policies, as investors waffle with inflation and supply chain disruptions. Wall Street analysts remain divided on whether this represents a temporary adjustment period or deeper structural flaws.
📞 Trump Phones Bezos Over Amazon's "Hostile Act"
President Trump personally called Amazon founder Jeff Bezos after reports surfaced that the company considered displaying tariff costs separately on product listings.
The White House labeled the potential move a "hostile and political act," questioning Amazon’s intentions. Following the call, President Trump told reporters that Bezos "solved the problem very quickly" and "did the right thing."
🚫 Walmart Rejects Itemized Tariff Surcharges In Turn
Retail giant Walmart has firmly rejected the idea of applying an itemized surcharge to account for increased tariffs, distancing itself from Amazon's brief consideration.
A Walmart spokesperson emphasized that the retailer does "not itemize what goes into the cost of goods on our website" and is "working hard to keep prices as low on as many products as possible", despite tariff uncertainties.
🍹 Barclays Mixes Tequila with Economic Discussions
Barclays is raising eyebrows with an unusual event promising "a lively discussion on the current macro outlook while we enjoy thoughtfully curated food and tequila."
Mexico has swung from tequila surplus to shortage over the past six months, partly due to on-off tariffs that prompted stockpiling by hospitality companies.
🛫 American Airlines Breaks Hearts and Sues JetBlue
American Airlines has officially terminated discussions with JetBlue Airways regarding a potential new partnership and initiated legal action seeking over $1 million in damages.
The failed talks followed the collapse of their Northeast Alliance (NEA), which allowed the carriers to coordinate routes and share revenue in the competitive New York market before being ruled unlawful in May 2023.
🗑️ WM Stock Turns Trash Into Treasure
Waste Management ($WM) shares are defying broader market trends, climbing 14% this year compared to the S&P 500's 6% drop.
The company's defensive nature and solid Q1 results are holding strong. CEO Jim Fish highlighted a 30% EBITDA margin streak and steady progress on strategic priorities.
Stock ideas
Here are three of my favorites from this past week.
Analysis provided by public.com.
Remember to always DYOR.
Brookfield Corporation (BN)
Bullish Case
Significant Undervaluation: Brookfield trades at an estimated 38% discount to its sum-of-the-parts value.
Core Asset Strength: The company's 73% stake in Brookfield Asset Management (BAM) anchors its value.
Diverse Growth Engines: Expansion of Wealth Solutions, substantial carried interest realizations (projected at $20 billion+ over 10 years), and stable distributions.
Bearish Case
Structural Complexity: Brookfield’s holding company structure can perplex investors, contributing to its valuation discount.
Real Estate Exposure Risks: Performance remains sensitive to interest rates, occupancy levels, and the broader commercial real estate market recovery.
Backblaze, Inc. (BLZE)
Bullish Case
Cloud Storage Market Niche: Backblaze operates in the growing cloud storage and data backup market, offering solutions designed for ease of use and affordability.
Focus on Scalability: The company provides services allowing developers to build applications and businesses to store data.
Aggressive Pricing Advantage: Backblaze positions itself as a cost-effective alternative to larger hyperscalers and direct competitors like Wasabi.
Bearish Case
Financial Instability and Accounting Questions: Backblaze has reported consistent losses since its IPO, coupled with an 80% increase in share count.
Insider Selling and Leadership Concerns: Founders offloaded stock en masse after the IPO lockup expired, and the former CTO resigned following these sales.
WPP Plc (WPP)
Bullish Case
Successful Transformation Progress: CEO Mark Read’s restructuring has simplified WPP, integrating agencies and consolidating technology.
Proactive AI Integration: WPP has invested heavily in AI capabilities, embedding proprietary Brains and third-party tools within WPP Open to enhance creativity.
Attractive Valuation and Outlook: WPP trades at a discount to peers despite progress and achievable medium-term targets for growth and margin improvement.
Bearish Case
Challenging Industry Dynamics: The advertising and marketing industry faces ongoing disruption from digital platforms capturing ad spend growth.
AI Disruption Narrative: While WPP invests heavily in AI, some industry voices argue that AI could automate and devalue traditional agency functions.
💙 That’s a wrap
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