The Rollup is now The Wall Street Rollup

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Welcome! We’re excited to reintroduce The Rollup as The Wall Street Rollup. The full introduction is posted here but here’s a quick rundown.

We’re obsessed with finance, so whether you work at Goldman Sachs, or you’re just starting to learn more about business and finance, we want to be there for you and help level the playing field. Our thesis beyond The Wall Street Rollup is driven by our belief that the individual and professional investor deserves a higher quality short-form finance newsletter. We also want to maintain continuing to source articles from non-traditional sources, as opposed to exclusively from large publications.

We’re going to iterate different ways to give you the best 2x/week short-form newsletter we can, so without further ado, let’s get into it:

The week ahead of us 🔍

• Tuesday: McCormick and GameStop report earnings.

• Wednesday: Jefferies, Paychex, and Carnival report earnings.

• Thursday: Walgreens reports earnings.

The main story 📰

Is the high end consumer weakening? Some of your favorite athleisure names took a beating on Friday. Late last week, Lululemon and Nike both had disappointing earnings. Nike shares fell -7% on the day after warning sales will decrease by low single digits over the next six months. Meanwhile, Lululemon shares fell -16% on the day after warning that U.S. store visits so far this year are off to a soft start. Lululemon still expects 11%-12% full year sales growth but this sales growth was below the pace Wall Street was used to. While this isn't enough to call for a slowdown across the board, this could imply weakness across more discretionary categories.

Noteworthy insider trade 🚨

There was some modest selling among homebuilder executives. The Toll Brothers ($TOL) CFO sold 5k shares for $619k, lowering his position -12% to 44.7k shares. The Chair of D.R. Horton sold 22k shares for $3.4mm, although he still owns 984k shares.

A Message From Our Sponsor

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Headlines and Articles 

• Why the AI boom is no Dot-Com Bubble

• The inverted yield curve failed as a recession indicator

• Gucci owner, Kering, is facing a demand slowdown

• US to boost scrutiny of United Airlines after safety incident

• Edwin Dorsey is doubling down on his Hershey short

• Fed’s Bostic scales back to a single rate cut on the year, versus two previously

• Apple scraps in-house effort to make watch displays, cuts jobs

• Can ESPN survive as Cable fades?

• Kyla Scanlon: Why we don’t trust each other anymore

• How to Get Netflix, Hulu and Other Streaming Services to Recommend Better Shows

Transactions 💭 

Splunk, a cloud first software company that focuses on analyzing machine data, was acquired for $28B by Cisco Systems (NAS: CSCO). Equiniti Group, Morgan Stanley, Qatalyst Partners, and Woodside Capital Partners advised on the sale.

Karuna Therapeutics, a clinical-stage biopharmaceutical company focused on developing novel therapies to address disabling neuropsychiatric conditions, was acquired for $14B by Bristol-Myers Squibb (NYS: BMY). Goldman Sachs advised on the sale.

Encavis (ETR: ECV), an independent solar park operator, entered into a definitive agreement to be acquired for EUR 2.81B by Elbe Bidco, Viessmann Group, and Kohlberg Kravis Roberts. Lazard and Goldman Sachs advised on the sale.

Equitrans Midstream (NYS: ETRN), a provider of gathering, transmission, and water services to Appalachian producers in Pennsylvania, West Virginia, and Ohio, reached a definitive agreement to be acquired for $5.5B by EQT Production Company (NYS: EQT). Barclays advised on the sale.

Run:AI, developer of a cluster management platform designed for orchestrating and accelerating artificial intelligence infrastructures, entered into a definitive agreement to be acquired for $1B by Nvidia (NAS: NVDA).

Noteworthy Chart 🧭

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Best Short Video ⌚️

Last week, Neuralink’s first patient shocked the world:

Meme Cleanser 😆 

In Other News

• Check out some Wall Street Merch Here

• Our Newsletter is completely free! To support our content, make sure you check out the placements of our Newsletter Sponsors

Thank you for reading our first edition. For existing readers, feel free to reply what you would like maintained as we pivot to this new newsletter format.