🧬 23andMe In Bankruptcy

Good afternoon! Boeing wants a do-over on its guilty plea for defrauding the FAA before two fatal 737 MAX crashes. The company is negotiating with the Justice Department to either withdraw or lighten the terms of a Biden-era deal that required a $243 million fine, $455 million in safety upgrades, and hiring an independent monitor. If successful, it would mark one of the Trump administration’s most significant shifts toward easing white-collar penalties.

The original deal followed a probation period that was about to expire when a door panel blew off an Alaska Airlines 737 MAX in January, triggering fresh scrutiny. Families of the 346 victims from the 2018 and 2019 crashes have pushed for harsher penalties, arguing Boeing should admit to causing the deaths. A judge has given both sides until April 11 to propose changes — but backing out entirely could face serious pushback.

MARKETS

• Stocks jumped Monday as reports surfaced that Trump’s next round of tariffs might be more targeted than expected. The S&P 500 rose 1.8%, the Dow gained 1.4%, and the Nasdaq climbed 2.3% as investors welcomed signs of a softer trade stance.

• Tech stocks led the rally, with Tesla up 12% and Amazon and Nvidia adding over 3%. Microsoft and Apple also posted gains, helping the Nasdaq notch its best day in weeks.

STOCKS
Winners & Losers

What’s up 📈

• Tesla soared 11.93%, making it the top performer in the S&P 500 after the FBI unveiled a Tesla threats task force. ($TSLA)

• ViaSat jumped 14.42% after Deutsche Bank upgraded the stock to buy, citing multiple monetization opportunities. ($VSAT)

• AZEK surged 17.32% after James Hardie agreed to acquire the outdoor products manufacturer for $9 billion in cash and stock. ($AZEK)

• FedEx gained 5.21% after Jefferies upgraded the stock to buy, citing strong cost-cutting measures that could boost profitability. ($FDX)

• Pinterest climbed 5% following an upgrade from Guggenheim to buy, which said the stock’s recent pullback offers an attractive entry point. ($PINS)

• Steel Dynamics rose 3.25% after UBS upgraded the stock to buy, citing tariff protection as a catalyst for higher prices. ($STLD)

• Nucor added 4.42% following a UBS upgrade to buy, highlighting benefits from U.S. steel tariffs. ($NUE)

• Generac advanced 4.68% after Bank of America reinstated coverage with a buy rating, citing increased demand for backup power. ($GNRC)

What’s down 📉

• 23andMe plummeted 59.22% after the DNA testing company filed for Chapter 11 bankruptcy and CEO Anne Wojcicki resigned. ($ME)

• James Hardie sank 17.18% after announcing the acquisition of AZEK in a cash and stock deal worth around $9 billion. ($JHX)

• Bayer dropped 7.07% after a Georgia jury ruled against its subsidiary Monsanto in a Roundup weedkiller lawsuit, awarding $2.1 billion to plaintiffs. ($BAYRY)

BANKRUPTCY
23andMe’s DNA Test Comes Back Negative — For Profitability

23andMe’s DNA test just confirmed its worst fear: bankruptcy. The once high-flying genetic testing company has filed for Chapter 11 after failing to secure a buyer, with only 550,000 paying subscribers left on board — a far cry from the 10 million customer goal it pitched to investors back in 2021. Despite gathering genetic data from over 15 million people, the company never found a way to turn one-time test kit buyers into long-term customers. Now, 23andMe is hoping to sell off its assets — including that treasure trove of DNA data — through a court-supervised auction.

The SPAC Hangover: 23andMe’s rise and fall is a classic SPAC cautionary tale. The company went public at a $3.5 billion valuation in 2021 via a special-purpose acquisition company (SPAC) — essentially a shortcut to going public without the usual IPO hurdles. But like other SPAC darlings (WeWork, Virgin Orbit, and Nikola, to name a few), 23andMe quickly realized that a public listing doesn’t magically create a sustainable business model. Its attempt to pivot from genetic testing to drug development failed to generate meaningful revenue, and the subscription-based model never gained traction.

Hacking, Lawsuits, and a Leadership Shake-Up
The road to bankruptcy wasn’t just paved with bad business decisions. A 2023 data breach exposed information from around seven million customers, leading to more than 35,000 legal claims. Meanwhile, Anne Wojcicki, the company’s co-founder and longtime CEO, tried to take the company private earlier this year — but the board rejected the offer. Wojcicki has since stepped down as CEO, though she’ll stay on the board.

Will Your DNA End Up On the Auction Block?
Here’s the part that makes customers sweat: that DNA database is one of 23andMe’s most valuable assets — and it could be sold to the highest bidder. The company insists that any buyer will have to follow existing privacy laws, but that’s cold comfort when you’re wondering whether your genetic blueprint will soon belong to a Big Pharma giant or a data mining firm. If you’d rather not take that risk, now might be the time to hit “delete.”

From Genetic Goldmine to SPAC Cautionary Tale: 23andMe’s fall isn’t just about flawed business strategy — it’s about the broader SPAC boom that turned into a bust. Nearly half of the 450 companies that went public via SPACs after the pandemic have seen their valuations crater by over 90%. 23andMe’s genetic data may still be valuable — but as far as investors are concerned, the company’s future looks like a recessive trait.

NEWS
Market Movements

• 🏭 J&J Boosts U.S. Investment by 25%: Johnson & Johnson plans to increase U.S. investment by 25% to over $55B through 2029, including four new factories, as it shifts production domestically amid tariff threats. ($JNJ)

• 🚀 SpaceX Poised for Federal Contract Windfall: SpaceX is set to gain billions in new federal contracts under the Trump Administration, including expanded Starlink access, defense work, and potential NASA missions to Mars. Meanwhile, Italy’s negotiations with SpaceX have stalled.

• 🍎 Disney’s Snow White Opens with $87.3M: Disney's Snow White remake topped the box office with $87.3M globally on opening weekend despite poor reviews. However, the film’s performance fell short of expectations given its $270M+ production cost. ($DIS)

  📡 Verizon raises $2.25B in bond sale: Verizon sold $2.25B in investment-grade bonds to fund the redemption of $985M in notes due next year. The company priced 10-year debt at 0.95 percentage points above Treasuries, down from initial talks of 1.25 points. ($VZ)

• 💧 Saratoga Water sees sales spike after viral video: Saratoga Spring Water’s parent company reported $71M in 2024 sales following a viral "morning routine" video. The stock climbed sharply on renewed consumer interest.

• 🚗 Tesla Protests Stretch Into 5th Week: Protests at nearly 90 Tesla showrooms have entered their fifth week as demonstrators push for stock and vehicle boycotts over Elon Musk’s federal role. Shares have dropped 48% from their December peak but rose since Friday. ($TSLA)

• 📌 Pinterest pops on record user growth: Pinterest reported a record 553M monthly active users, driving a stock surge. Wall Street upgraded the stock on expectations of stronger ad revenue. ($PINS)

• 🚙 Volkswagen and BMW outsell Tesla in Europe: Volkswagen and BMW sold more fully electric vehicles than Tesla in Europe last month, despite Tesla's 44% year-over-year sales drop. Tesla's market share in Europe has fallen to 8%, down from 18% last year. ($VWAGY, $BMWYY)

EUROPE
Novo Nordisk Gets EU-Surped as SAP Takes Top Spot in Europe

Novo Nordisk has been dethroned as Europe’s most valuable company — and weight-loss drug disappointment is to blame. The Danish pharma giant’s stock has been in a steady decline since last summer, capped off by the underwhelming trial results for CagriSema, its next-generation obesity drug. In a recent study, patients without Type 2 diabetes on CagriSema lost 22.7% of their weight, down from the 25% expected — while those with Type 2 diabetes shed just 15.7%. That’s not exactly the blockbuster performance investors were hoping for.

Novo’s stock has fallen 18% this year alone, erasing billions in market value and leaving the door wide open for a new king of European markets. Enter SAP.

SAP Rides the AI Wave
German software giant SAP has taken the crown with a market cap of around $339 billion, thanks to a 40% surge in its stock price over the past year. CEO Christian Klein’s strategy of shifting from traditional software licenses to subscription-based cloud services has paid off, especially with AI-driven products driving higher margins. SAP’s cloud-based model provides the kind of predictable, recurring revenue that Wall Street loves — and it's working.

SAP’s success has also fueled Germany’s DAX index, which is up almost 19% year-to-date. In fact, SAP alone is responsible for nearly 40% of the index’s gains this year. The company is projecting a 12% revenue increase in 2025, which would be its fastest growth rate in over a decade.

Novo’s New Strategy
Novo isn’t sitting still. The company announced it's spending up to $2 billion to license a Chinese-made weight-loss drug that could rival Ozempic — a clear sign it’s looking to reinforce its position in the weight-loss market. But investors aren’t convinced just yet, and the company’s market cap now sits just under SAP’s.

Tech vs. Pharma: SAP’s rise underscores the broader shift in market sentiment toward tech over pharma. While Novo’s weight-loss dominance made it the darling of European markets in 2021 and 2022, AI is now the hot commodity. Novo could still make a comeback if it delivers better results with its next round of drug trials — but for now, SAP is sitting comfortably on top.

Calendar
On The Horizon

Tomorrow

Tomorrow brings a pulse check on housing and consumer sentiment. The Case-Shiller home price index will offer insights into the state of the real estate market, while the Conference Board’s consumer confidence report will reveal how optimistic (or not) Americans are feeling about the economy.

After Market Close:

• GameStop’s latest rally seems more about Bitcoin buzz than business fundamentals. Rumors are swirling that the company plans to buy bitcoin, which shareholders will want clarity on tomorrow.

  Beyond crypto, GameStop faces a bigger threat from tariffs. The gaming industry leans on cheap overseas electronics, and with game studios increasingly favoring digital sales over physical copies, GameStop’s retail-heavy model could take a serious hit. ($GME)

NEWS
The Daily Rundown

• 💸 Social Security Won’t Shut Down Despite Legal Dispute: Acting Social Security Commissioner Leland Dudek said the agency will remain open after a judge ruled it violated laws by sharing records with Elon Musk’s DOGE team. Dudek initially claimed the ruling would require cutting off all agency access, but the judge rejected that claim. Over 70 million Americans rely on Social Security benefits each month, making disruption a major political risk.

• 🔥 Wildfires Spread Across the Carolinas, Prompting Evacuations: Four wildfires are burning in Polk County, North Carolina, with the largest spanning over 2,000 acres. A separate fire in South Carolina’s Blue Ridge Mountains remains uncontained. Drought conditions and debris from Hurricane Helene have complicated containment efforts. A South Carolina sheriff said a negligent act by a group of teens likely started the Table Rock Fire.

• 🥊 George Foreman Dies at 76 After Selling Over 100 Million Grills: George Foreman, the two-time heavyweight champion, died at 76. Foreman became known for his George Foreman Grill, which has sold over 100 million units since its launch in 1994. Foreman sold the rights to his name in 1999 for $137 million and reportedly earned over $200 million from the product.

• 📉 Americans Worry About Recession Despite Strong Data: Americans are pointing to pop culture moments like Lady Gaga’s new album and Will Smith’s return to music as signs of an impending recession. Consumer sentiment dropped 11% this month, marking the steepest three-month decline since 2020, and Google searches for “recession” spiked on March 11. President Trump said he wouldn’t rule out a recession this year, with tariff uncertainty weighing on business confidence. However, strong employment and manufacturing data suggest the economy remains stable despite consumer anxiety.

• 🗳️ Canada’s New PM Calls for Snap Elections Over Trade War: Canadian Prime Minister Mark Carney called for early elections on April 28 to gain a mandate for responding to President Trump’s trade policies. Trump’s tariff threats and comments about making Canada the 51st US state have narrowed the race between Carney’s Liberals and the Conservatives. Carney framed the election as a fight to protect Canada’s economic independence.

• ✝️ Pope Francis Makes First Public Appearance After Hospitalization: Pope Francis, 88, appeared publicly for the first time since being hospitalized for double pneumonia in February. Despite looking frail, he thanked the public for their support and plans to continue resting on doctors' advice.

• 🎥 Sydney Sweeney to Star in Film Based on Reddit Story: Sydney Sweeney will star in and produce a film based on the viral Reddit post "I Pretended to Be a Missing Girl So I Could Rob Her Family." Oscar-winning screenwriter Eric Roth will write the script, highlighting Hollywood’s growing interest in online content.

• 🛴 Segway Recalls 220,000 Scooters Over Safety Issues: Segway is recalling 220,000 Ninebot Max G30P and G30LP scooters due to a malfunction in the folding mechanism that can cause the handlebars or stem to collapse. The defect has resulted in 68 reported incidents and 20 injuries. Consumers are advised to stop using the affected scooters and contact Segway for a free repair kit.

• 🏫 Columbia University on Track to Regain Federal Funding: U.S. Education Secretary Linda McMahon said Columbia University is on track to restore nearly $400 million in federal funding that was withdrawn over allegations of antisemitism. The university has revised its disciplinary processes, enhanced campus security, and appointed new oversight for its Middle Eastern studies programs.

• 🏅 University of Maine Found Compliant With Title IX Regulations: The U.S. Department of Agriculture concluded that the University of Maine System complies with Title IX requirements, allowing it to continue receiving federal funds. The review was initiated over concerns about transgender athletes participating in women’s sports.

• 🇬🇱 Second Lady Usha Vance’s Greenland Visit Sparks Controversy: Greenland's Prime Minister criticized an upcoming visit from Usha Vance, wife of U.S. Vice President J.D. Vance, and National Security Adviser Mike Waltz, calling it "aggressive American pressure." The visit includes stops at a U.S. military base and Greenland’s national dogsled race, raising concerns about U.S. intentions in the region.

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