👀 Hottest New IPO... Disappoints

Good afternoon! Trevor Milton, the controversial founder of Nikola, is officially off the hook. President Trump granted him a full pardon this week, wiping away a 2022 securities fraud conviction that accused Milton of misleading investors about Nikola’s electric and hydrogen truck capabilities. The former CEO had been sentenced to four years in prison but remained free while appealing his case—one that prosecutors say caused hundreds of millions in investor losses. Now, thanks to a presidential signature, Milton won’t pay a dime in restitution either.

The pardon has raised eyebrows, especially after Milton made sizable donations to Trump-aligned political groups in 2024. But Trump defended the move, claiming Milton was “persecuted” for being a supporter. With Nikola in bankruptcy and Milton freshly exonerated, the saga blends politics, fraud, and a reminder that sometimes, who you know still matters a lot.

MARKETS

• Wall Street got body-slammed Friday as inflation reared its ugly head again and spending stats left economists clutching their coffee. The S&P 500 fell nearly 2%, with the Nasdaq plunging 2.7% as the “Magnificent Seven” stocks crumbled—Amazon and Alphabet alone dropped more than 3%. Tech, once the market’s MVP, suddenly looked like the benchwarmers.

• Meanwhile, the Dow dropped 716 points and capped off its fifth losing week in the past six. The inflation-plus-weak-demand combo revived stagflation fears, a buzzword no one missed from the ‘70s. With President Trump’s tariff crusade still looming over markets, it’s safe to say investors are officially nervous.

STOCKS
Winners & Losers

What’s up 📈

• Argan surged 19.86% after posting a blowout Q4 earnings report that nearly doubled analyst forecasts. ($AGX)

• W.R. Berkley jumped 7.53% after Japan’s Mitsui Sumitomo agreed to purchase a 15% stake in the company. ($WRB)

• AppLovin rebounded 4.08% following its worst day on record, as management defended its ad practices against short seller allegations. ($APP)

• Braze gained 2.21% after exceeding analyst expectations on both revenue and earnings in Q4. ($BRZE)

• Rocket Lab rose 1.09% after being listed as one of the launch providers in the U.S. Space Force’s pool of vendors. ($RKLB)

What’s down 📉

• Lululemon plunged 14.19% after issuing disappointing 2025 guidance and citing lower U.S. foot traffic. ($LULU)

• Bausch + Lomb fell 5.80% following a voluntary recall of implantable eye lenses, which also triggered a downgrade from Wells Fargo. ($BLCO)

• Oxford Industries dropped 5.72% after providing full-year revenue guidance that missed analyst expectations. ($OXM)

• Robinhood declined 4.71% despite unveiling new cash delivery services as part of a broader fintech push. ($HOOD)

• Tesla slipped 3.51% ahead of its Q1 deliveries report next week, which analysts expect to disappoint. ($TSLA)

• Infinity Natural Resources slipped 2.68% after posting a Q4 net loss versus the expected profit. ($INFY)

• Reddit lost 2.29%, extending its steep decline to 50% from its February peak amid rising short interest and ad revenue struggles. ($RDDT)

IPO
CoreWeave’s IPO Fizzles out

It was supposed to be the splashiest tech debut since 2021. But CoreWeave, the buzzy AI cloud provider backed by Nvidia, stumbled out of the gate Friday after downsizing its IPO and pricing shares well below expectations.

The stock opened at $39—2.5% below the IPO price—and whipsawed throughout the day before closing right at $40. CoreWeave had originally aimed to raise up to $2.7 billion with shares priced as high as $55. Instead, it settled for $1.5 billion at a $23 billion valuation, down from the hoped-for $32 billion.

AI Darling, but With Baggage

CoreWeave made its name renting out Nvidia GPUs to AI giants like Microsoft and OpenAI. But the company’s growth comes with a red flag: 62% of its $1.92 billion in 2024 revenue came from just one customer—Microsoft. Combine that with a net loss of $863 million, $13 billion in debt, and a business model that lives or dies by the AI boom, and you get investor skepticism.

Even Nvidia’s $250 million anchor investment couldn’t fully calm nerves. Half the IPO shares went to just three investors, and 90% landed with the top 15. Without that concentrated support, the offering might not have happened at all, CoreWeave’s CEO admitted.

Timing Is Everything—And This Wasn’t It

CoreWeave’s timing couldn’t have been worse. The Nasdaq slumped nearly 3% on Friday, tech stocks are down double digits this year, and Bank of America just warned that AI infrastructure might be overbuilt. Microsoft recently canceled some data center leases, hinting at cooling demand.

Still, CoreWeave insists demand remains "relentless." But with GPU rental prices plunging from $5.50 per hour to just $1.55, the margins may not hold up for long.

What This Means for Other IPO Hopefuls

CoreWeave’s rocky debut may slam the brakes on what many hoped would be a resurgence of tech IPOs. Startups like Klarna, StubHub, and Discord have been lining up behind the scenes. Now, they might think twice before diving into public waters.

The AI hype isn’t over—but Wall Street’s patience may be. After all, even the biggest boom can’t outrun market math forever.

Today’s Fastest Growing Company Might Surprise You

🚨 No, it's not the publicly traded tech giant you might expect… Meet $MODE, the disruptor turning phones into potential income generators.

Mode saw 32,481% revenue growth, ranking them the #1 software company on Deloitte’s 2023 fastest-growing companies list.

📲 They’re pioneering "Privatized Universal Basic Income" powered by technology — not government, and their EarnPhone, has already helped consumers earn over $325M!

Their pre-IPO offering is live at just $0.26/share – don’t miss it.

Invest Now

*Mode Mobile recently received their ticker reservation with Nasdaq ($MODE), indicating an intent to IPO in the next 24 months. An intent to IPO is no guarantee that an actual IPO will occur.
*The Deloitte rankings are based on submitted applications and public company database research, with winners selected based on their fiscal-year revenue growth percentage over a three-year period.
*Please read the offering circular and related risks at invest.modemobile.com.

NEWS
Market Movements

• 🤖 Elon Musk Merges xAI and X in $33B Valuation Deal: Elon Musk announced that his AI startup xAI has acquired social media platform X in an all-stock transaction valuing X at $33 billion and xAI at $80 billion. The companies will now operate as one, combining data, compute power, and talent to expand the reach of xAI’s technology, including its Grok chatbot. Musk said the merger will "unlock immense potential" and deepen integration between AI and social distribution.

• 🏎️ Ferrari to Raise Prices by Up to 10% on U.S. Models: Ferrari plans to hike U.S. prices by as much as 10% starting April 2 in response to Trump’s tariffs. The increase could add up to $350,000 to the sticker price of its most exclusive cars. The company reaffirmed its 2025 outlook but acknowledged that profit margins could take a hit. ($RACE)

• 🛍️ Alibaba Gains $100B in Value Amid AI Push and Leadership Changes: Alibaba shares have surged nearly 60% year-to-date, adding more than $100 billion to its market cap. The rally is fueled by a reinvigorated AI strategy, leadership turnover, and Jack Ma’s return to the spotlight. Investors are betting on a turnaround after a rough few years. ($BABA)

• 🧠 EU Rejects Eli Lilly’s Alzheimer’s Drug Kisunla: European regulators denied approval for Eli Lilly’s Alzheimer’s drug, citing insufficient benefits compared to the risks. The decision delays the drug’s rollout across the continent and weakens Lilly’s expansion plans. The company will pursue a second review. ($LLY)

• 🎮 Ubisoft Rises on $1.25B Tencent Investment: Ubisoft shares jumped after Tencent agreed to invest $1.25 billion for a 25% stake in a new unit. The division will house major gaming franchises including Assassin’s Creed and Far Cry, valuing the unit at $4.3 billion. The deal strengthens Tencent’s foothold in Western gaming. ($UBI)

• 💊 Novo Nordisk Falls on Wegovy Copycat Worries: Novo Nordisk shares fell after the company said compounded versions of its blockbuster drug Wegovy are eating into sales. To fight back, Novo is increasing supply and launching a cheaper online pharmacy. The move is part of a broader strategy to maintain its lead in the weight-loss market. ($NVO)

• 🕹️ GameStop to Close More Stores and Invest in Bitcoin: GameStop is continuing its retail downsizing after closing 1,000 stores last year, with additional closures on the way. The company announced plans to allocate part of its cash into bitcoin, boosting its stock 16% in premarket trading. The move signals a deeper pivot toward digital assets. ($GME)

INFLATION
Core Inflation In February Hits 2.8%, Higher Than Expected

Consumers tapped the brakes in February, but inflation hit the gas again—just in time for Trump’s new tariffs to loom large over your wallet.

Inflation-adjusted consumer spending inched up only 0.1% last month, even as the Fed’s preferred inflation gauge—the core PCE index—rose 0.4%, its biggest monthly jump in a year. On an annual basis, core PCE hit 2.8%, higher than economists expected and still well above the Fed’s 2% target.

That’s not great news for anyone hoping for cheaper groceries or smoother Fed rate cuts anytime soon.

Trump’s Tariffs Are the Wild Card

Just as inflation shows signs of heating up again, President Trump’s new round of tariffs—set to begin on “Liberation Day” next week—is poised to throw even more fuel on the fire. His trade agenda is expected to raise prices on a wide range of goods, from cars to consumer staples, at a time when households are already tightening their belts.

The report also revealed something surprising: Americans actually pulled back on spending in the services sector for the first time in three years. Think less dining out, fewer Uber rides, and a noticeable dip in pet care. Instead, some consumers appear to be rushing to buy durable goods—like cars—before those tariff-driven price hikes hit.

The Fed’s Balancing Act Just Got Trickier

Chair Jerome Powell and company are already walking a tightrope between fighting inflation and avoiding a recession. With inflation creeping up and growth showing signs of fatigue, the central bank may be forced to wait longer than expected before cutting rates—despite market bets on a July pivot.

Meanwhile, long-term inflation expectations have surged to a 32-year high, consumer sentiment is tanking, and households are saving more—a classic sign of caution. The personal saving rate rose to 4.6%, the highest since June.

The message from the Fed? They’re watching and waiting. The message from consumers? They’re worried—and starting to act like it.

Calendar
On The Horizon

Next Week

Next week eases in with a slow start, but don’t get too comfortable—things pick up fast. Tuesday brings fresh JOLTS data and construction spending figures, but the real action begins Wednesday with the ADP employment report, followed by initial jobless claims on Thursday, and capped off with the big one: Friday’s monthly jobs report.

Also on deck: President Trump’s much-hyped reciprocal tariffs are set to take effect Wednesday, and all eyes will be watching for ripple effects. And just in time for the weekend chaos, ByteDance has until Saturday, April 5, to offload TikTok, setting the stage for a noisy end to the week.

Earnings:

• Monday: PVH ($PVH)

• Wednesday: BlackBerry ($BB), UniFirst ($UNF), and RH ($RH)

• Thursday: ConAgra Brands ($CAG), and Lamb Weston Holdings ($LW)

NEWS
The Daily Rundown

• 🍗 Hooters to Rebrand as Family-Friendly, Ends ‘Bikini Night’: The restaurant chain is ditching its more provocative events in favor of a family-focused strategy. CEO Neil Kiefer said the brand needs to evolve with shifting consumer values and dining expectations. The revamp includes menu upgrades and service improvements to broaden its appeal.

• 📚 New Hunger Games Book Sells 1.5M Copies in One Week: Sunrise on the Reaping, the latest installment in Suzanne Collins’ hit series, doubled the opening sales of its predecessor. The novel also tripled Mockingjay’s debut week numbers from 2010. A film adaptation is already in development, with the franchise having grossed over $3.3 billion.

• 🎨 OpenAI’s Ghibli-Style Image Generator Sparks Copyright Backlash: ChatGPT’s new image tool went viral for mimicking Studio Ghibli's animation style so well that it strained OpenAI’s servers. While Altman praised the tech, critics pointed out that the style is closely tied to living artist Hayao Miyazaki, who has spoken out against AI art. A judge also just ruled that the NYT’s lawsuit over OpenAI scraping content can move forward.

• 🚘 Trump’s Auto Tariffs Could Add $15K to New Car Prices, But Tesla Stands to Gain: President Trump’s 25% tariff on imported cars and parts is aimed at boosting U.S. manufacturing, but experts warn it will hurt both domestic and foreign automakers. Tesla is the rare winner, since it builds all of its U.S.-sold vehicles domestically, avoiding the brunt of the tariffs. Meanwhile, Detroit’s Big Three, European, and Asian brands are expected to raise prices or cut production as costs soar.

• 💉 RFK Jr. Plans to Cut 10,000 More Health Department Jobs: Health Secretary Robert F. Kennedy Jr. announced sweeping cuts to the federal health workforce, on top of 10,000 prior voluntary buyouts. Critics warn the downsizing could cripple efforts to manage disease outbreaks and slow drug approvals. The restructuring includes consolidating key departments like communications and policy.

• 🇺🇳 Trump Withdraws UN Ambassador Nomination to Keep House Majority: President Trump pulled Rep. Elise Stefanik’s nomination to the UN to avoid triggering a special election that could flip her seat. The GOP’s razor-thin 218–213 majority in the House makes each seat critical. The decision underscores political trade-offs in staffing key diplomatic posts.

• 🏀 March Madness Loses Cinderella Charm Amid Transfer Portal Surge: For the first time since 1985, the Sweet 16 features only power conference schools as underdog programs lose top talent to bigger teams. Players are increasingly transferring for better NIL deals, changing the structure of the NCAA tournament. Only three teams have more than three starters who began their careers at the same school.

• 📺 Paramount and NBCUniversal Battle Over ‘Yellowstone’ Spinoff Rights: A fight is brewing between the two media giants over streaming rights to upcoming Yellowstone spinoffs. Both companies claim exclusivity, highlighting the intensifying competition for franchise content. The legal dispute could delay releases and reshape distribution deals.

• 🎬 Sundance Film Festival Relocating to Boulder in 2027: After decades in Park City, the Sundance Film Festival will move to Boulder, Colorado, to better accommodate its growing footprint. Organizers say Boulder offers a more scalable infrastructure and vibrant cultural scene. The move is set to reshape one of film’s biggest annual events.

• 🕵️ Attorney General Bondi Won’t Investigate Signal Chat Leak: Pam Bondi said she’s unlikely to pursue a probe into the national security breach involving leaked Signal messages among U.S. officials. She dismissed concerns about the platform’s use for sensitive discussions. Critics argue the leak warrants a full investigation given the potential national security implications.

RESOURCES
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