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- Public Rec | June 7th, 2024
Public Rec | June 7th, 2024
| Market | Day | Month | Year |
|---|---|---|---|
| Dow | ▲0.00% | ▼0.13% | ▲15.63% |
| S&P | ▼0.02% | ▲3.22% | ▲24.93% |
| Nasdaq | ▼0.09% | ▲5.07% | ▲29.28% |
| Bitcoin | ▲0.82% | ▲14.13% | ▲169.95% |
| 10-Year | ▲0.00% | ▲1.20% | ▼3.33% |
GOOD MORNING
Here's everything you need to know today: Tesla shareholders face a critical decision as they prepare to vote on reapproving Elon Musk's $45 billion compensation package. The outcome could determine whether Musk remains at the helm of the company, with significant implications for Tesla's stability and future growth.
In a major move, Robinhood has announced the acquisition of cryptocurrency exchange Bitstamp for $200 million, positioning itself for dominance in the growing digital asset market. This strategic expansion comes despite ongoing regulatory scrutiny from the SEC.
Meanwhile, the return of Keith Gill, famously known as "Roaring Kitty," has sent GameStop shares soaring. Gill's upcoming livestream, where he plans to discuss his $300 million position in the company, has reignited speculation of a renewed short squeeze, reminiscent of the 2021 frenzy.
Let’s dive into more detail below.
MUSK
Tesla CEO Elon Musk Could Walk if $45 Billion Compensation Proposal is Denied by Shareholder Vote
Shareholders face critical decision: approve Musk's 2018 package or risk Tesla's stability and future growth
BREAKING NEWS
Is Elon Musk, the renowned CEO of Tesla, poised to leave the company he founded 21 years ago? Perhaps.
Tesla's board is urging shareholders to reapprove Musk's contentious 2018 compensation plan or risk his departure.
This renewed push for the $45 billion package, previously invalidated by a Delaware court, underscores the board's belief that retaining Musk, even at an exorbitant cost, is vital for Tesla's sustained success and growth.
WHAT HAPPENED
Tesla's board, chaired by Robyn Denholm, is appealing to shareholders to reapprove Musk's 2018 compensation package. Central to this decision is a critical dilemma for Tesla's shareholders: is ensuring Musk's continued leadership, despite the staggering cost, essential for the company's long-term growth and dominance in the electric vehicle and AI sectors? Conversely, what would Tesla be without Elon Musk? As the company's figurehead, his potential departure raises questions about who could replace him.
The shareholder vote could solidify Musk's control and propel Tesla to new heights or trigger uncertainty and volatility, affecting investor confidence and the company's future direction if Musk decides to leave.
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CRYPTO
Bitstamp Joins Robinhood in $200 Million Deal, Aiming for Crypto Market Domination
Despite SEC scrutiny, Robinhood's $200 million Bitstamp deal strengthens its position in the growing digital asset market
WHAT HAPPENED
Robinhood Markets, a popular trading app, has agreed to acquire Bitstamp, a leading cryptocurrency exchange, for approximately $200 million in cash. The acquisition is Robinhood's biggest-ever deal, marking a significant expansion into digital assets and positioning the company to compete directly with industry giants such as Binance and Coinbase.
Bitstamp, founded in 2011, holds 50 active licenses and registrations globally. Its core spot exchange offers over 85 tradable assets, including products like staking and lending. The deal is expected to close in the first half of 2025. Johann Kerbrat, Vice President and General Manager of Robinhood Crypto, stated that the acquisition of Bitstamp will accelerate the company's global expansion.
WHY IT MATTERS
One key benefit of the acquisition is the opportunity for Robinhood to leverage Bitstamp's global network of 50 active licenses and registrations. This will enable the platform to expand its operations internationally, particularly in regions like Europe and Asia, where Bitstamp has a strong presence. This expansion will diversify Robinhood's revenue streams and provide a platform for the company to tap into the growing popularity of Bitcoin and other cryptocurrencies.
Investors looking at $HOOD should note that Robinhood's crypto division, which significantly contributed to its impressive first-quarter earnings, received a Wells Notice from the U.S. Securities and Exchange Commission (SEC). This notice indicates potential enforcement action, reflecting ongoing tensions between crypto firms and the SEC over regulatory classifications.
Despite this, the growing popularity of Bitcoin and crypto among institutions and retail investors is likely to continue, ultimately benefiting Robinhood, given the acquisition. The platform's user-friendly interface and competitive fees have already made it popular among retail traders, and the addition of Bitstamp's core spot exchange and other products will only enhance its offering.
MEME STOCKS
Keith Gill's $300M GameStop Gamble Will Go Live Friday on YouTube and Could Trigger Another Short Squeeze
A convergence of factors, including Gill's insights and GameStop's transformation, could trigger a market response for the MEME stock ages
BREAKING NEWS
Roaring Kitty (aka Keith Gill) is back, and this time, he is going on camera. GameStop shares surged over 30% today, fueled by speculation surrounding a scheduled livestream.
The anticipation surrounding Gill's first public appearance in years has reignited the fervor that once captivated Wall Street, sending shockwaves through the market and leaving investors wondering if history is about to repeat itself.
WHAT HAPPENED
According to the FDIC's latest Quarterly Banking Profile report, banks are grappling with more than $517 billion in unrealized losses, a $39 billion increase from the previous quarter. These losses stem from the difference between the purchase price of securities and their current market value, particularly affecting residential mortgage-backed securities.
The sustained rise in mortgage rates, ranging from 7% - to 6% 30Y/15Y, has put downward pressure on these securities' prices, further exacerbating the situation. Although banks can hold these securities until maturity without marking them to market, the need for liquidity can transform these paper losses into significant liabilities.
The number of banks on the FDIC's Problem Bank List rose from 52 in the fourth quarter of 2023 to 63 in the first quarter of 2024, reflecting heightened financial and operational challenges.
There has been one bank failure so far in 2024. Republic First Bank, based in Philadelphia, Pennsylvania, failed on April 26, 2024. The bank had approximately $6 billion in assets and $4 billion in deposits.
YESTERDAY | Here’s what you missed |
1. FDA reverses US marketing halt on Juul vaping products
The FDA announced it is lifting the marketing ban on Juul vaping products, although the company’s products will continue to undergo review for approval. This decision allows Juul to resume selling its products in the U.S. market while regulatory scrutiny continues.
2. Elon Musk's xAI selects southern city for 'world's largest' supercomputer site
xAI, the artificial intelligence company founded by Elon Musk, has chosen Memphis, Tennessee, as the site for what is planned to be the world's largest supercomputer. This move is part of the company’s ambitious plans to lead in the AI and supercomputing sectors.
3. Rivian says its updated electric pickup and SUV are faster and have more range than the Cybertruck
Rivian has unveiled updates to its R1T pickup truck and R1S SUV, boasting increased power and range compared to Tesla’s Cybertruck. The new models include a Tri-Motor version, enhancing the vehicles' performance and appeal in the competitive electric vehicle market.
4. Costco to stop selling books in surprise blow to publishers
Costco will cease offering books for sale consistently starting in January, delivering a significant setback to the publishing industry. This decision, conveyed to publishing executives, will impact both publishers and authors who rely on Costco for significant sales volume.
5. eBay will no longer accept American Express cards over “unacceptably high” fees
eBay announced it will stop accepting American Express cards due to their high fees. The online marketplace will continue to accept other payment methods, including wire transfers, to provide alternatives for its users.
6. Billionaire Frank McCourt's TikTok bid wins key backer as he looks past app's prized algorithm
Billionaire Frank McCourt has secured a significant backer for his bid to acquire TikTok, focusing beyond the app's valuable algorithm. This development comes as ByteDance faces pressure from U.S. legislation to sell the app or face a ban.
7. The Snowflake Attack May Be Turning Into One of the Largest Data Breaches Ever
The Snowflake data breach is escalating, with the number of alleged hacks targeting its customers increasing significantly. This breach could become one of the largest data breaches in history, raising serious concerns about cloud storage security.
8. Mortgage rates tick down, back below 7%
Mortgage rates have dipped back below 7%, with the 30-year fixed-rate mortgage falling to 6.99%, according to Freddie Mac. Despite this decrease, rates remain high, continuing to affect the housing market and homebuyers.
9. Eric Schmidt Is Secretly Testing AI Military Drones In A Wealthy Silicon Valley Suburb
Eric Schmidt, former Google CEO, has been testing AI-powered military drones through his company, White Stork, in a wealthy Silicon Valley suburb. This secretive project has also involved collaboration with the Ukrainian Ministry of Defense.
10. NIO Earnings: NIO Falls as Q1 Results Disappoint
NIO's stock dropped in pre-market trading following the release of disappointing Q1 earnings. The Chinese electric vehicle manufacturer reported an adjusted loss of RMB2.39 ($0.33) per share, falling short of market expectations.
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