🥊 Netflix's Mike Tyson Vs. Jake

Good afternoon! California’s “Operation Bear Claw” uncovered an insurance scam that’s almost too ridiculous to believe. Four LA residents claimed a bear broke into a Rolls-Royce and two Mercedes, causing $142,000 in damages. Their smoking gun? Video evidence of the “bear,” which a state biologist determined was clearly someone in a costume. Spoiler alert: detectives later found the bear suit at their house.

Real bears might break into trash cans or take dips in pools, but this stunt took things to a whole new level. Insurance companies flagged the claims after spotting some, let’s say, un-bear-like behavior in the footage. Now, the suspects are facing charges, and California has one less “bear attack” to worry about.

MARKETS

• Stocks hit a rough patch Friday, with the post-election rally losing steam. The Dow dipped 305 points (-0.7%), the S&P dropped 1.3%, and the Nasdaq led the slide with a 2.2% drop, as tech stocks took a heavy hit.

• Jerome Powell’s steady-handed comments on rate cuts and surprisingly strong retail sales data left investors rethinking the odds of a December cut. The week wrapped with all major indexes firmly in the red, putting a damper on the market’s recent momentum.

STOCKS
Winners & Losers

What’s up 📈

• Bloom Energy surged 59.19% after announcing an agreement to provide 1 gigawatt of fuel cells to utility company American Electric Power. ($BE)

• Palantir jumped 11.14% following news that it will move its listing from the NYSE to the Nasdaq, with eligibility for the Nasdaq-100 Index likely upon completion. ($PLTR)

• Rocket Lab rose 9.45% as space stocks rallied, driven by the so-called “Trump-Elon trade” due to the connection between President-elect Trump and SpaceX CEO Elon Musk. ($RKLB)

• Disney gained 5.46%. ($DIS)

• Super Micro Computer rose 3.16% ahead of its Monday deadline to file year-end reports or face Nasdaq delisting. ($SMCI)

What’s down 📉

• AST SpaceMobile fell 9.59% after reporting a larger-than-expected Q3 loss of $1.10 per share on revenue of $1.1 million, missing analyst estimates. ($ASTS)

• Unity Software declined 7.96%. ($U)

• Applied Materials dropped 9.20% despite beating top and bottom-line expectations, as weaker revenue guidance for the current quarter worried investors. ($AMAT)

• Adobe slid 5.00%. ($ADBE)

• Amazon declined 4.19%. ($AMZN)

• Ulta Beauty slipped 4.60% after Berkshire Hathaway revealed it sold nearly all its shares in the beauty retailer. ($ULTA)

• Moderna declined 7.34%, Pfizer dropped 4.7%, and BioNTech shed 3.7%, following the announcement that vaccine skeptic Robert F. Kennedy Jr. would be appointed as health secretary. ($MRNA, $PFE, $BNTX)

SPORTS
Netflix’s Heavyweight Gamble: Tyson vs. Paul

A Punch at Streaming’s Future

Netflix is stepping into uncharted territory tonight as it streams a high-profile boxing match between 58-year-old Mike Tyson and 27-year-old influencer Jake Paul.

While the spectacle promises millions of viewers, it’s also a trial run for Netflix’s live-streaming chops ahead of broadcasting two NFL games on Christmas Day. For a platform that once dismissed live sports, this is a pivotal moment to prove it can handle the pressure—or risk being knocked out of the game.

Betting Big on Live Events

This fight isn’t just about punches—it’s about ad dollars.

Of Netflix’s 283 million subscribers, 70 million are on the ad-supported tier, offering prime real estate for advertisers during live events. If the Tyson-Paul bout performs well, Netflix could command premium ad rates, mirroring the cable TV playbook.

With live NFL broadcasts already sold out, Netflix is betting on its ability to leverage sports content for future growth.

Streaming vs. Traditional Sports Networks

The event also marks a shift in boxing’s media landscape. Once dominated by HBO and Showtime, the sport is now migrating to streaming platforms like Netflix, DAZN, and Amazon Prime.

Tyson and Paul’s fight is Netflix’s way of signaling its intent to compete in live sports broadcasting, even as it diversifies with long-term deals like the WWE’s Rawand the NFL’s holiday matchups.

The Real Test: While the buzz around the fight is undeniable, the real winner tonight could be Netflix—or not. If the platform falters under the strain of millions of viewers, it could undermine confidence in its ability to handle future live events.

But if Netflix pulls off a seamless broadcast, it will solidify its place as a new heavyweight in the live sports arena, setting up a much larger bout: its battle against traditional sports networks.

NEWS
Market Movements

• 📈 Palantir Jumps 11% to Record High: Palantir shares surged 11% on news that the company will transfer its stock listing to the Nasdaq from the NYSE. This continues a strong run for the company, with shares up 45% since its recent earnings beat. ($PLTR)

• 🚀 Space Stocks Soar Amid Post-Election Rally: Space-focused companies saw major gains this week, with Rocket Lab climbing 41%, Intuitive Machines up 28%, and Spire Global gaining 26%. Analysts attribute the rally partly to optimism surrounding a Trump administration expected to prioritize space initiatives. ($RKLB) ($SPIR)

• 🌌 Musk’s SpaceX Plans $135/Share Tender Offer: SpaceX is preparing a tender offer in December at $135 per share, valuing the company at over $250 billion. With Trump’s election, Musk’s influence could shift national priorities to focus more on Mars and space exploration.

• 🇪🇺 Meta's E.U. Troubles Deepen: The European Union fined Meta $840 million for integrating its Marketplace into Facebook, allegedly disadvantaging rival classified services. Meta plans to appeal the fine and has also cut European ad-free subscription prices for Facebook and Instagram by 40% to comply with regulations. ($META)

• ⚖️ Musk Adds Microsoft to AI Lawsuit: Elon Musk expanded his lawsuit against OpenAI to include Microsoft and venture capitalist Reid Hoffman, alleging that their partnership unfairly stifled competition and harmed Musk’s xAI. ($MSFT)

• 🇺🇸 TSMC Completes $6.6B Grant: The Biden Administration finalized a $6.6 billion grant for Taiwan Semiconductor to build three factories in Arizona, part of a $39 billion effort to boost U.S. chip production. ($TSM)

• ✈️ Boeing Hires Northrop Exec for Defense Unit: Boeing has tapped Colin Miller from Northrop Grumman to lead its Phantom Works division, tasked with revamping its military unit following significant losses on Pentagon contracts. ($BA) ($NOC)

• 🎲 Billionaire Tilman Fertitta Ups Wynn Stake: Landry's CEO Tilman Fertitta increased his stake in Wynn Resorts to 9.9%, surpassing co-founder Elaine Wynn as the largest individual shareholder. Shares climbed 9% following the announcement. ($WYNN)

• 🏨 Hilton Expands Stock Buyback: Hilton Worldwide authorized an additional $3.5 billion stock buyback, raising its total repurchase capacity to $4.8 billion. Its stock has gained 38% year-to-date. ($HLT)

BIG TECH
Meta To Face Us Antitrust Trial Over Acquisitions Of Instagram and Whatsapp

Meta’s decade-old acquisitions of Instagram and WhatsApp are finally getting their day in court.

A federal judge ruled that the FTC’s antitrust lawsuit against Meta will go to trial, alleging that the company overpaid for these platforms to eliminate competition. If the FTC wins, Meta could be forced to part ways with its prized assets, reshaping the social media landscape.

However, Meta scored a minor victory with one claim—relating to access for third-party developers—dismissed.

Regulators Everywhere, All at Once

The hits don’t stop there for Meta. The European Union just slapped the company with an €798 million ($840 million) fine, claiming Facebook Marketplace unfairly leveraged its dominance in social networking to outmuscle rivals.

Meta says it’ll appeal, but the penalty adds to a growing list of regulatory headaches that have investors questioning Big Tech’s resilience.

What’s at Stake?

Meta’s empire is under siege. A breakup of Instagram and WhatsApp would mean a significant shift in its revenue streams and market power. Meanwhile, fines and lawsuits across the globe are hitting the balance sheet.

For a company already navigating fierce competition from TikTok and others, the uncertainty around regulatory outcomes could stymie its future growth.

A Global Reckoning for Big Tech

Meta isn’t alone in the hot seat. Antitrust cases against Amazon, Google, and Apple are ramping up, marking a bipartisan push to rein in tech monopolies.

The stakes are high: these trials will set the tone for how governments worldwide handle Big Tech, creating ripple effects across the sector. Investors, brace yourselves—this is just the beginning.

Calendar
On The Horizon

Next Week

Next week’s shaping up to be all about housing, with the home builder confidence index kicking things off Monday, housing starts dropping Tuesday, and existing home sales wrapping it up Thursday. Toss in initial jobless claims that same day and Friday’s PMI reports for services and manufacturing, and you’ve got a full economic plate.

With over 91% of the S&P 500 companies reporting earnings, the season is just about over. But there are still a few late-game players set to announce, so don’t tune out just yet.

Earnings:

• Monday: Bit Digital ($BTBT), Trip. com ($TCOM), and, ironically, a company called Mondee ($MOND).

• Tuesday: Walmart ($WMT), Lowe’s ($LOW), Medtronic ($MDT), and Valvoline ($VVV).

• Wednesday: Nvidia ($NVDA), Snowflake ($SNOW), Palo Alto Networks ($PANW), Target ($TGT), TJX Companies ($TJX), NIO ($NIO), Williams Sonoma ($WSM), and Wix. com ($WIX).

• Thursday: Baidu ($BIDU), Deere & Co. ($DE), BJ’s Wholesale Club ($BJ), Intuit ($INTU), Ross Stores ($ROST), and The Gap ($GPS).

• Friday: Nothing Notable.

NEWS
The Daily Rundown

• 📰 The Onion Takes Over Infowars: The Onion acquired Alex Jones’s Infowars in a bankruptcy auction, planning to transform it into a parody site. The satirical publication aims to strip Jones of his platform after his $1.4 billion defamation ruling over Sandy Hook conspiracy claims.

• 🚗 Advance Auto Parts to Close Over 700 Stores: Advance Auto Parts plans to shutter more than 700 of its 5,000 locations as part of a strategy to enhance sales performance and adapt to changing consumer habits. CEO Shane O'Kelly detailed the closures—523 corporate stores, 204 independent stores, and four distribution centers—during a third-quarter results briefing. Despite these cuts, the company plans to open at least 60 new market hub stores by mid-2027 as it shifts focus to a new three-year financial plan emphasizing asset productivity and shareholder value.

• 👗 Burberry Unveils Major Brand Overhaul: Burberry announced a comprehensive brand overhaul, shifting back to heritage designs and statement pieces while moving away from niche products. The new strategy focuses on outerwear and diversified pricing while maintaining luxury appeal. This comes after a 20% revenue drop to £1.1 billion, an operating loss of £53 million, and mounting net debt of £1.4 billion in the first half of fiscal 2025.

• 🚨 Teen Pleads Guilty to Extensive 'Swatting' Attacks: Alan Filion, a teenager behind nearly 400 "swatting" incidents targeting schools, politicians, and places of worship, has pleaded guilty and could face up to 20 years in prison. Swatting involves false emergency calls intended to provoke a large police response, creating significant public safety risks.

• 🚙 Ford Fined $165 Million for Recall Delays: Ford has been fined $165 million by the National Highway Traffic Safety Administration for failing to recall defective vehicles in a timely manner. This marks the second-largest penalty ever issued by the agency and highlights the importance of prompt action on vehicle safety issues.

RESOURCES
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