🤖Roomba Maker Might Go Bankrupt

Good afternoon! Skywatchers, get ready: A total lunar eclipse will grace the skies tonight, treating North and South America to a glowing "blood moon." The eclipse kicks off at 11:57 p.m. EDT on Thursday, with totality starting at 2:26 a.m. EDT on Friday. If you're on the West Coast, you'll want to step outside around 11:26 p.m. PDT. Unlike a solar eclipse, no fancy eyewear is required—just look up.

This is the first total lunar eclipse visible in the U.S. since 2022 and the last one until 2026, so make it count. The moon will take on a deep reddish hue as it passes through Earth's shadow, creating the iconic blood moon effect. Hawaii and parts of Alaska might miss the beginning, but otherwise, the whole continent is in for a late-night show.

MARKETS

• Stocks took a beating Thursday as tariffs and inflation teamed up for a one-two punch. The S&P 500 dropped 1.4%, sliding into correction territory after falling more than 10% from its February peak. The Nasdaq tumbled 2%, while the Dow shed 537 points (1.3%), extending its losing streak to four days. Wall Street hasn’t looked this shaky since the last round of trade wars.

• President Trump threatened 200% tariffs on EU alcohol imports after the bloc retaliated over U.S. steel and aluminum duties. If that escalates, happy hour could get a lot more expensive.

STOCKS
Winners & Losers

What’s up 📈

• Intel jumped 14.60% after the chipmaker announced the appointment of Lip-Bu Tan, former CEO of Cadence Design Systems, as its new CEO. Investors are hopeful that the leadership change will revive Intel’s struggling business. ($INTC)

• D-Wave Quantum surged 18.73% after the company claimed it achieved "quantum computational supremacy." Management’s bullish forecasts following strong earnings fueled investor optimism. ($QBTS)

• Dollar Tree climbed 6.59% in sympathy with Dollar General’s earnings beat. Dollar Tree investors are betting on strong future performance in the discount retail space. ($DLTR)

• Newmont Corp. rose 4.63% as tariffs on EU imports of steel and aluminum pushed gold prices to another record high. ($NEM)

• Barrick Gold added 2.13% on the back of rising gold prices. ($GOLD)

• Freeport-McMoRan increased 2.18% as gold and copper prices surged following news of new EU tariffs. ($FCX)

What’s down 📉

• UiPath tumbled 15.72% after its fourth-quarter revenue came in below estimates, and management warned of a slowdown ahead due to macroeconomic uncertainty. ($PATH)

• iRobot sank 24.75% after the maker of Roomba vacuum robots said it was reviewing strategic alternatives, including refinancing its debt and exploring a sale. The company also reported a wider-than-expected quarterly loss of $2.06 per share. ($IRBT)

• Adobe dropped 13.85% after issuing weak fiscal second-quarter guidance. The company forecast earnings between $4.95 and $5.00 per share on $5.77 billion to $5.82 billion in revenue, below the $5.00 EPS and $5.8 billion revenue analysts expected. ($ADBE)

• Super Micro Computer sank 7.98% as momentum stocks struggled. ($SMCI)

• Robinhood dropped 7.45% as market momentum faded and crypto-related stocks pulled back. ($HOOD)

• Reddit fell 7% after strong recent gains, as traders locked in profits. ($RDDT)

• DocuSign fell 6.78% ahead of its earnings report after the bell, with analysts expecting earnings of 85 cents per share on $761 million in revenue. ($DOCU)

• Ulta Beauty declined 4.48% ahead of its earnings release. Analysts expect the beauty retailer to report earnings of $7.12 per share on $3.46 billion in revenue. ($ULTA)

• SentinelOne slid 5.54% after the cybersecurity company reported a revenue beat but issued weaker-than-expected forward guidance. ($S)

TECH
One-Time Amazon Takeover Target iRobot Warns Doubt on Future

The Roomba maker may need more than a cleaning cycle to fix this mess. iRobot warned investors that it’s not sure it can stay in business, sending the stock plunging 36% Wednesday and today another 24.75%—its biggest drop since going public in 2005.

From Takeover Target to Takeover Trouble

Things were looking up for iRobot when Amazon announced plans to buy the company for $1.7 billion in 2022. But after European regulators blocked the deal last year over antitrust concerns, the bottom fell out. iRobot’s financial picture has only gotten darker since. In Q4, revenue dropped 44% to $172 million, falling short of Wall Street’s $180.8 million forecast. Losses piled up, with a net loss of $77.1 million ($2.52 per share), worse than analysts’ expected $1.73 loss.

The company’s board is now reviewing its options, including refinancing debt and a potential sale. iRobot already took out a $200 million loan from Carlyle Group last year to stay afloat, but the terms weren’t exactly friendly—9% over the Secured Overnight Financing Rate (SOFR). Now, iRobot owes an extra $3.6 million to amend that loan.

Amazon’s Ghost: The Amazon breakup hit iRobot hard. The deal was supposed to give iRobot a scale advantage to compete with rising competition from Chinese rivals like Ecovacs and Roborock. But without Amazon’s backing, iRobot’s market value has sunk to just $200 million—less than Amazon’s original offer.

CEO Gary Cohen tried to stay upbeat, touting the launch of eight new Roomba models aimed at reviving growth. But even he admitted there’s “no assurance” the new products will succeed, with tariffs, consumer demand, and competition still looming as threats.

Sweeping Changes Needed

Since the Amazon deal fell apart, iRobot has already laid off over 50% of its workforce and cut costs aggressively. But it may not be enough. Investors are bracing for more pain, with the stock now down more than 70% over the last year. iRobot needs a major turnaround plan—fast—or it may soon be swept into bankruptcy.

NEWS
Market Movements

• 🔋 Palantir expands into defense manufacturing: Palantir announced new partnerships with defense startups at AIPCon, including Archer Aviation, Saildrone, and Epirus, to improve manufacturing and scale production of aircraft, autonomous marine vessels, and anti-drone weapons. CEO Alex Karp emphasized the importance of strengthening U.S. industrial capacity. ($PLTR)

• ⚛️ Tech giants pledge to triple nuclear power by 2050: Amazon, Google, and Meta signed a pledge to support tripling global nuclear power capacity by 2050, joining 20+ governments and financial firms. The companies see nuclear as key to meeting AI energy demands. ($AMZN, $GOOG, $META)

• 🎧 Apple to add live translation to AirPods: Apple plans to introduce a live translation feature for AirPods as part of iOS 19, allowing real-time translation of conversations. The feature will work similarly to Google Pixel Buds and is part of Apple’s broader software overhaul this year. ($AAPL)

• 🚗 Tesla warns of trade war retaliation: Tesla cautioned that retaliatory tariffs from other countries could increase manufacturing costs and make its vehicles less competitive. The warning follows new tariffs from the Trump administration, which Tesla said could disrupt the EV and battery supply chain. ($TSLA)

• ✈️ Spirit Airlines emerges from bankruptcy: Spirit Airlines successfully exited bankruptcy, meeting its first-quarter target after reducing debt by about $795 million and securing a $350 million equity infusion. CEO Ted Christie said Spirit is ready to compete with Southwest as the latter introduces bag fees, which could push price-sensitive customers toward Spirit. ($SAVE)

• 💄 Ulta issues weak guidance despite beating earnings: Ulta reported stronger-than-expected earnings and revenue for Q4, but forecasted flat to 1% growth in comparable sales for 2025, below analyst expectations. New CEO Kecia Steelman cited rising competition and internal missteps as key challenges in a transition year. ($ULTA)

• 🛒 Dollar General beats estimates despite consumer weakness: Dollar General posted higher-than-expected earnings, revenue, and same-store sales growth, with net sales projected to grow 3.4%–4.4% in 2025. CEO Todd Vasos warned that inflation and economic pressures remain a challenge for low-income consumers. ($DG)

• 🚗 Tesla partners with Baidu on FSD in China: Tesla is working with Baidu to improve its Full Self-Driving (FSD) system in China after performance issues tied to local data laws. Tesla’s inability to train FSD locally has limited its success. ($TSLA)

• 🍎 RFK Jr. pressures Big Food over artificial dyes: HHS Secretary RFK Jr. warned major food CEOs, including those from PepsiCo, Tyson, Kraft Heinz, Kellanova, J.M. Smucker, and General Mills, to eliminate artificial dyes or face regulatory action. ($PEP, $TSN, $KHC, $K, $SJM, $GIS)

• ⚖️ FTC seeks delay in Amazon trial over Prime practices: The FTC requested a delay in its trial against Amazon over alleged deceptive Prime subscription practices, citing staff and budget shortages. The case, involving at least $1B in claims, is set for September. ($AMZN)

TARIFFS
Trump Threatens 200% Tariffs On European Alcohol

Pop that champagne while you can still afford it. President Trump has threatened to slap a 200% tariff on European wine, champagne, and spirits in retaliation for the EU’s decision to reinstate tariffs on American whiskey. The move marks another flashpoint in a trade war that’s already making Wall Street nervous.

Shots Fired

Trump’s threat came after the EU announced a 50% tariff on American whiskey as payback for Trump’s steel and aluminum tariffs that took effect this week. Trump fired back on Truth Social, warning that if the EU doesn’t back down, he’ll impose a 200% tariff on European booze, which he called “great for the Wine and Champagne businesses in the U.S.”

European liquor stocks didn’t take the news well. LVMH (which owns Moët and Veuve Clicquot) fell 2.2%, Remy Cointreau (known for Cognac) dropped 4.5%, and Pernod Ricard (behind Absolut and Jameson) lost 3.6%. Meanwhile, Brown Forman—the company behind Jack Daniels—rose 1.01%, proving that even trade wars have winners.

High Stakes Happy Hour

The EU’s retaliation stems from Trump’s metal tariffs, which were first imposed during his last term, briefly suspended under Biden, and now reinstated under Trump 2.0. Commerce Secretary Howard Lutnick confirmed that Trump was “totally annoyed” by the whiskey tariff and isn’t backing down. He also suggested that Trump’s upcoming “reciprocal tariffs,” set to hit a range of industries starting April 2, will pile even more pressure on global trade.

The potential fallout isn’t just confined to liquor shelves. Wall Street is already feeling the pain. The S&P 500 is down nearly 10% from its February high, teetering on the edge of a correction. Investors fear that an all-out trade war could drag down consumer spending and corporate earnings, putting more pressure on already jittery markets.

A Bitter Finish: Trump’s plan would effectively triple the price of imported champagne, turning that $15 bottle of Prosecco into a $45 splurge. That’s not exactly great news for brunch lovers or the U.S. hospitality industry. But Trump seems unfazed—he told reporters this week that the market selloff was a “buying opportunity” and that short-term pain is necessary to reset American industry.

The bottom line: Trump’s trade war is heating up fast. If the EU retaliates further, American exports could take a major hit—and so could consumer confidence.

Calendar
On The Horizon

Tomorrow

Markets are set for a quiet finish to the week, with Friday’s main event being a preliminary read on consumer sentiment for March. Usually a snoozer, this survey has gained new significance lately as Wall Street tries to figure out if American consumers are starting to buckle under economic pressure.

For years, U.S. shoppers have shrugged off everything from inflation to rising interest rates—but last month’s PCE report showed cracks forming. Consumers are spending less and saving more, signaling growing caution about the future. This sentiment report should offer some insight into how much the tariff fallout is weighing on confidence—and whether the spending slowdown is just getting started.

Before Market Open:

• Li Auto is navigating a rough patch as China's economy struggles, but recent promises of government support have sparked some hope. The EV maker still boasts strong margins and impressive revenue growth, and with its share price now looking undervalued, investors are hoping it’s primed for a turnaround. The big question: Can government aid and solid fundamentals offset broader economic weakness? ($LI)

• WeRide has been riding high since Nvidia took a stake in the robotaxi company back in February. Self-driving taxis represent a massive growth opportunity, and WeRide currently holds the pole position internationally. But the race is far from over—Tesla and other rivals are closing in fast, so shareholders will want to hear how management plans to stay ahead of the pack. ($WRD)

NEWS
The Daily Rundown

• 🎮 Saudi Arabia buys Pokémon Go for $3.5 billion: Scopely, a gaming developer owned by Saudi Arabia’s sovereign wealth fund, acquired Niantic’s mobile games division, including Pokémon Go, in a $3.5 billion deal. Niantic will retain its augmented reality technology and spin it off into a new AI mapping company called Niantic Spatial, backed by $200 million in funding. The acquisition gives Saudi Arabia control over one of the most popular mobile games and strengthens its foothold in the gaming industry.

• 🎧 Spotify hits record-breaking $10 billion in royalty payouts: Spotify paid out $10 billion in royalties to the music industry in 2024, the largest annual payout in the company’s history. Nearly 1,500 artists earned over $1 million each in royalties last year, reflecting the platform’s growing influence on global music earnings.

• 📚 Elite universities face hiring freezes as federal funding cuts loom: Harvard and other top universities, including Cornell, Emory, and Notre Dame, have announced hiring freezes as they brace for potential cuts to federal funding under the Trump administration. The Department of Agriculture suspended funding to the University of Maine for refusing to ban trans athletes from women's sports, and Columbia lost $400 million in funding over campus protests. The White House also revoked $800 million in grants to Johns Hopkins, raising concerns about the broader impact on research and local economies.

• 🌍 EU and Canada impose retaliatory tariffs on US goods: In response to Trump's increased tariffs on steel and aluminum, the EU and Canada announced tariffs on billions of dollars' worth of US products. The EU’s $28 billion in tariffs will hit goods like whiskey and motorcycles starting April 1, with a second round targeting poultry and soybeans later in April. Canada imposed 25% reciprocal tariffs on steel products and raised rates on tools, computers, and sports equipment, warning that the tariffs will remain until the US “shows respect.”

• 🦠 Measles outbreak expands across the US: More than 200 people, mostly unvaccinated children, have been infected in Texas and New Mexico, with two confirmed deaths—the first from measles in nearly a decade. The CDC said the outbreak is expanding rapidly, with 12 other states reporting isolated cases. Critics have pointed to Health Secretary RFK Jr.'s past anti-vaccine comments, raising concerns about the administration’s response.

• 🇨🇳 China pushes back on Walmart’s request for tariff relief: Walmart executives were summoned by Chinese officials after asking suppliers for discounts to offset the impact of Trump’s 20% tariffs on Chinese imports. Chinese suppliers have refused to budge, citing thin profit margins, and government-backed media warned Walmart of potential consequences. This puts Walmart at risk of both squeezed profit margins and strained relations with China, where its revenue grew 28% last quarter.

• 🚗 Tesla showcases its fleet at the White House: President Trump and Elon Musk staged a Tesla parade on the White House lawn to boost the company’s struggling stock price. Trump climbed into a Model S and marveled at its tech, commenting that “everything’s computer.” Tesla's stock has plummeted 45% this year, with drivers citing frustration over complicated interfaces and door handle issues.

• 🍽️ Wonder acquires Tastemade for $90 million: Food delivery startup Wonder acquired Tastemade, a media company focused on food and lifestyle content, to create a comprehensive "mealtime super app." The acquisition will allow Wonder to integrate food delivery, meal kits, and content, expanding its reach in the competitive food delivery market.

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