The Week Ahead

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The week ahead of us 🔍

🟥 🟥 ALERT, ALERT. NVIDIA REPORTS EARNINGS ON WEDNESDAY 🟥 🟥 

The entire bull market is waiting in anticipation of NVIDIA’s performance guidance after the bell on Wednesday. Additionally, several major retailers are also reporting.

• Monday: Palo Alti, Sumitomo Mitsui, Mizuh, Zoom, Wix.com 

• Tuesday: Lowe’s, AutoZone, Toll Brothers, Macy’s, ViaSat

• Wednesday: NVIDIA, TJX, Analog Devices, Target, Snowflake, Williams-Sonoma, e.l.f. Beauty,

• Thursday: Intuit, TD Bank, Workday, Autodesk, Ross Stores, Dollar Tree, Deckers, Burlington, Ralph Lauren, BJ’s, RH, LionsGate

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The Main Story

• We heard news of another passing at Bank of America on Friday. First reported by us at Wall Street Gossip, we got a scoop on friday morning from a confirmed BofA employee that a junior passed away. Bloomberg later confirmed that Bank of America Credit Trader Adnan Deumic passed away suddenly during a client event playing soccer in London. This whole situation is deeply unsettling. But no one can directly attribute this to the hours one may have to work at a firm like Bank of America. We’re seeing people generally run with narratives with this story that are pretty disgusting.

• Without knowing the full stories, it’s hard to say more than encouraging wall street professionals to continue to take care of themselves. The ongoing passings at Wall Street firms though highlights how important it is to take care of yourself, make sure you’re living a healthy lifestyle, and to leave firms where the work-life culture is unsustainable and detrimental to your health.

Headlines 🔍

• There’s a Zyn shortage. Zyn, a Philip Morris company, is experiencing shortages in key markets like NY, NJ, and Florida. Smoke shops and wholesalers are running out of supply, and prices have been going up as a result:

• OpenAI dissolved their long-term AI risk team, one year after the team’s formation. OpenAI and Reddit also announced a deal where ChatGPT gets access to the social media platform

• The Meme Stock Runup has now officially cooled down. GameStop in particular tumbled on Friday after announcing a plan to issue up to 45mm new shares PLUS 1Q sales may be down roughly 28% y/y

• The Greenlight Spat: On Twitter on Friday, a spat broke out between Greenlight Hedge Fund Founder David Einhorn and a former employee, James Fishback, who was either a Macro Analyst or “Head of Macro”. Mr. Fishback refers to himself as the former Head of Macro at Greenlight, while Greenlight insists he never held that title and would litigate if he kept calling himself that. In particular, Fishback cites an old email by his Greenlight COO to GLG where he referred to Fishback as the “Head of Macro”.

  We had a thread that summarized the facts that have come up here. Overall, Twitter was full of chaos on Friday, with everyone making their best “Head of Macro” jokes

• The Leveraged Loan repricing wave is heating up: McAfee, Gray TV, GoDaddy, Epicor Software, and American Airlines are among the issuers with deals in the market last week

• Wayfair is opening their first ever brick and mortar store in Wilmette, Chicago. Despite the e-commerce tsunami, the internet has not fully replaced in-person shopping. Especially for big ticket items like furniture, brick-and-mortar drives digital growth – one study revealed that when a DTC brand opens a store, online sales spike ~14% in the following weeks.

• 777 Partners executives resigned after fraud allegations. For more than half a year, the investment firm with ownership in soccer teams across the world has been fighting to buy Everton F.C. (15^th in the Premier League). Now, with the help of a restructuring firm, 777 is struggling to survive.

• From Odd Lots, How to Succeed at a Multi-Strat Hedge Fund

• The Hollywood Stagehands Union is continuing their negotiations. A strike may occur later in June 2024 if an agreement can’t be reached between studios and representatives for 45,000 stagehands, editors, and other film workers.

• ECB governors stick to plan for multiple rate cuts despite global headwinds.

• Kendrick Lamar is buying a $40mm home in LA. After a month-long diss-track fueled feud with Drake, the Compton native’s planned purchase is one of the most expensive in a year defined by the introduction of a major new property tax that left the city’s ultra-lux real estate market swirling.

M&A Transactions💭 

AES Brasil (BVMF: AESB3), a company who engages in the production, transmission, and commercialization of energy, has reached a definitive agreement to be acquired for $640.00M by Auren Energia (BVMF: AURE3). Goldman Sachs and Itau BBA advised on the sale.

Yvon Building Supply, manufacturer and distributor of building products, has reached a definitive agreement to be acquired for $143.39M by Gypsum Management & Supply (NYS: GMS).

TrueContext, a company who is a leader in field intelligence, was acquired for $104.20M by Battery Ventures. Canaccord Genuity advised on the sale.

SP Plus (NAS: SP), provider of parking management, ground transportation, and other ancillary services, was acquired for $1.5B by Metropolis. Morgan Stanley advised on the sale.

Sellier & Bellot, manufacturer of ammunition, was acquired for $703.00M by Colt CZ Group (PRA: CZG).

Proteologix, operator of a biotechnology company focusing on immunology and inflammation diseases, has reached a definitive agreement to be acquired for $850.00M by Johnson & Johnson (NYS: JNJ).

Motional, developer of driverless technology, was acquired for $923.00M by Hyundai Motors Group.

KDI Wealth Management, provider of financial planning, was acquired for $750.00M by Bluespring Wealth Partners.

Innomotics, manufacturer of engine parts, has entered a definitive agreement to be acquired for $3.75B by KPS Capital Partners. BNP Paribas and Goldman Sachs advised on the sale.

D’Or Consultoria, provider of insurance and benefits services, has entered a definitive agreement to be acquired for $145.05M by MDS Group.

 Carrols Restaurant Group, a restaurant company who operates Burger King restaurants in the Northeastern, Midwestern, and Southeastern United States, was acquired for $1.00B by Restaurant Brands International (TSE: QSR). Jefferies and Westwicke advised on the sale.

Lumileds’ lamp and accessories business unit has reached a definitive agreement to be acquired for $238.00M by First Brands Group.

Private Placement Transactions 💭 

Alkira, operator of a network cloud company, has raised $100.00M of Series C funding led by Tiger Global Management.

Yendo, operator of a credit card platform intended to provide an asset-backed credit product, has raised $165.00M of venture funding. The transaction was supported by $150.00M of debt financing.

Vercel, developer of a cloud-based workflow platform, raised $250.00M of Series E venture funding led by Accel at a pre-money valuation of $3.0B.

Sigma, developer of a cloud data warehouse, has raised $200.00M of Series D venture funding led by Avenir Growth Capital and Spark Capital at a pre-money valuation of $1.62B.

Noteworthy Chart 🧭

How Palantir makes money

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