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This week, we bring you
- Temu Needs a New Way In
- Waffle House Cracks a Few Eggs
- Rare Earth Metals – Champions of the Tech Revolution
- DOGE Fetches Treasury Data
- ByteDance’s DeepFake Dystopia
- UBS Looks Like It’s Old Self
- The US Tries DIY Wealth
- 3 Stocks To Consider
Thanks for reading.
Table of Contents
New Bill Ends Duty-Free Loophole
President Trump has eliminated the $800 “de minimis” exemption that allowed Chinese ecommerce giants like Shein and Temu to dominate the US market with ultra-low prices. While American consumers may face higher prices and longer delivery times, Shein and Temu have been preparing by establishing US distribution centers and Mexican manufacturing facilities.
Waffle House Adds 50-Cent Egg Surcharge
Waffle House has implemented a temporary 50-cent per egg surcharge at its roughly 2,100 locations across the US due to the ongoing egg shortage caused by bird flu. The chain, which serves around 272 million eggs per year, hopes the price fluctuations will be short-lived and is continuously monitoring egg prices to adjust or remove the surcharge as market conditions allow.
Rare Earth Metals – The Hidden Champions of the Tech Revolution
In a world increasingly dependent on high-tech solutions, rare earth metals are becoming the unsung heroes of our technological future. These 17 elements, known as neodymium, dysprosium, and terbium, are critical components in everything from smartphones to electric vehicles to military defense systems.
DOGE Gets Into Treasury Payment Systems
The Treasury Department confirmed that Elon Musk’s DOGE team has been granted “read-only” access to federal payment systems. Tom Krause, a DOGE member and technology executive, was given top-secret security clearance to review the system. Despite concerns from Democratic lawmakers, the Treasury asserted that this access has not impacted critical payments like Social Security and Medicare.
ByteDance Unveils Realistic Deepfake Videos
ByteDance researchers unveiled OmniHuman-1, an AI system that generates highly realistic deepfake videos from just a single reference image and audio input.
The system, trained on 19,000 hours of video, can create convincing videos of any length and style while handling diverse inputs and maintaining motion characteristics. Despite laws against AI impersonation in 10 US states, detection and regulation remain major challenges.
UBS Stock Up 80% Post Credit Suisse Deal
Nearly two years after its government-backed rescue of Credit Suisse, UBS has seen its stock skyrocket nearly 80%.
However, looming Swiss regulatory reforms threatened the bank’s ambitious plans, causing shares to tumble 7% despite crushing its Q4 profit forecast.
CEO Ermotti warned about a Swiss government “overreaction” that could force UBS to choose between returning cash to shareholders or maintaining its “source of stability and strength.”
The US Announces A Sovereign Wealth Fund
President Donald Trump signed an executive order for the United States to launch its first-ever sovereign wealth fund, aiming to have it operational within 12 months.
This move positions America to invest directly in domestic companies, joining over 90 countries globally that collectively manage more than $8 trillion in sovereign wealth fund assets.
What I’m reading
I get a lot of mail asking where I find all this good stuff. Here are a few of my favorite newsletters, all of which are free to subscribe to:
The most important tech news and insights. Join 80,000+ early adopters staying ahead of the curve, for free.
5-minute reports on AI, Crypto, and more for those looking to start their own business.
2-minute rundowns of exciting startups every Monday morning.
Stock ideas
Here are three of my favorites from this past week.
Analysis provided by public.com.
Remember to always DYOR.
Ammo Inc. (POWW)
Bullish Case
- Strategic Transformation: POWW sold its low-margin ammunition manufacturing segment for $75 million to focus on its high-margin online marketplace.
- Market Leadership: GunBroker.com ranks #1 in web traffic among online firearms retailers, with a proven 5-6% transaction fee model and strong repeat purchase rates.
- Growth Initiatives: Recent platform upgrades include multi-cart selection and integrated payments. Cross-selling opportunities for accessories abound.
Bearish Case
- Regulatory and Compliance Risk: POWW faces NASDAQ scrutiny over FY2020-23 accounting issues and executive compensation disclosures.
- Capital Allocation Concerns: Management’s handling of the $75 million from the ammunition segment sale remains uncertain.
Curiosity Stream (CURI)
Bullish Case
- AI Revenue Growth: Hyperscaler licensing deals announced for 2025 will increase licensing revenue from $5 million to $20 million+.
- Strong Balance Sheet: The company holds $40 million in net cash and potential $20-40 million worth of investments in Nebula and Spielberg.
- Streaming Business Turnaround: Partner subscription revenue grew from 13.7% to 20% of sales, while domestic web traffic stabilized.
Bearish Case
- Revenue Decline History: Sales dropped nearly 30% from 2021 to 2023, with recent revenues down 12.2% in the first 9 months.
- Execution Risk: The company’s turnaround strategy depends heavily on successful closure of AI licensing deals and stabilization of the direct-to-consumer business.
Magnite (MGNI)
Bullish Case
- Investment Strategy Focus: Crossroads Capital demonstrated strong performance with 14.7% annualized returns net of fees over five years.
- Value-Driven Growth Model: The fund targets undervalued companies with clear catalysts for transformation, particularly in the inefficient small and mid-cap space.
- Long-Term Performance Track Record: The fund’s flexible mandate and focus on both “compounders” and special situations created consistent returns since 2016.
Bearish Case
- Market Cap Limitations: Focus on small and mid-cap stocks may restrict growth potential as the fund’s assets under management increase.
- Short Position Exposure: The fund maintains 5-25% short positions, which could impact returns in strong bull markets.
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Cheers,
Wyatt
Disclosures
- There are affiliate links above; we’ll get a couple of bucks if you take action after you click.
- Nothing above is financial advice. DYOR, you filthy animal.
