Public.com | March 22nd, 2024

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GOOD MORNING

Here’s everything you need to know today. Chipotle is chopping its share price into bite-sized pieces with a historic 50-for-1 stock split.

Disney's embroiled in a royal rumble as Nelson Peltz seeks a throne in the boardroom, heralding a possible plot twist in the epic of corporate governance.

Apple finds itself in the DOJ's crosshairs, accused of playing gatekeeper a little too zealously in the smartphone kingdom.

Meanwhile, Trump's financial escapades could either be a game of 4D chess or a blockbuster flop, as he eyes a triumphant stock market debut amid a storm of legal and regulatory dragons.

And finally, Reddit, the town crier of the internet age, has made a grand entrance onto Wall Street's stage, soaring in its NYSE debut and hinting at a renaissance in the tech IPO realm. Buckle up, dear readers; we got a big day ahead.

Let’s dive into more detail below.

Chipotle Mexican Grill is stirring up Wall Street with news of its first-ever stock split—a colossal 50-for-1 move. This bold strategy is set to make Chipotle shares more accessible, potentially lowering its share price from a towering $2,900 to a more approachable $58, inviting a wave of new investors to the table.

This significant split is not just about slicing shares; it's about expanding the investor family, making Chipotle's success story more accessible to both employees and a wider range of investors. It echoes past strategic moves by tech giants like Alphabet and Amazon but stands out in its magnitude, signaling Chipotle's confidence in its continuous growth and its desire to be more inclusive in its stock ownership.

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In a groundbreaking move that has sent ripples through the corporate and financial worlds, Nelson Peltz, backed by Institutional Shareholder Services (ISS), has launched a significant challenge for a seat on The Walt Disney Company's board.

This move intensifies the ongoing struggle over Disney’s strategic future, leadership succession, and its embrace of new technologies.

At the heart of this confrontation is ISS’s recommendation favoring Peltz, suggesting a shift in Disney's trajectory might be imminent. Trian Fund Management, alongside Peltz and Blackwells Capital, seeks to revamp Disney’s board, criticizing the company’s readiness for the post-Iger era and its sluggish technological adaptation. Conversely, Disney contends that its current trajectory under Bob Iger’s leadership is setting the stage for a prosperous future.

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The U.S. Department of Justice, along with 15 states and D.C., has filed a lawsuit against Apple, marking a critical juncture in the ongoing tension between government bodies and the tech sector. The allegations suggest Apple's practices have stifled competition, elevated consumer costs, and entrenched its monopoly in the smartphone market.

The 88-page lawsuit accuses Apple of employing anticompetitive and exclusionary tactics to maintain its stronghold over smartphone markets, detrimentally affecting prices, developer fees, and innovation. The government's case centers on Apple's business model, which has evolved from a minor player in the personal computer industry to a behemoth dictating the terms of the smartphone ecosystem.

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In the world of high finance and politics, Donald J. Trump's latest move reads like a blockbuster script. The former President's leap into public trading with Trump Media & Technology Group, amid a whirlwind of legal bills and regulatory hurdles, is set to catapult his net worth by a cool $3 billion. It's finance, it's politics, it's... Trump.

Trump Media, eyeing a stock market debut through a merger with Digital World Acquisition Corp, faces a six-month sales ban for major shareholders. Yet, Trump's history of defying constraints suggests he might just find a loophole. The stakes? A hefty $454 million legal bill and the potential to influence stock market dynamics in unprecedented ways.

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Reddit, the vast online forum community, has made a spectacular entrance onto the New York Stock Exchange. Trading under the "RDDT" ticker, the company's shares surged up to 70% in their debut and then settled end of day at $34 per share, marking the most significant initial public offering for a social media platform since Pinterest in 2019.

This landmark event not only celebrates Reddit's 19-year journey from an online bulletin board to a central hub of internet culture but also signals a potential thaw in the tech IPO freeze that's characterized the market since the heady days of 2021.

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1. Dow Closes More Than 250 Points Higher as Major Averages Surge to Fresh Records

Stocks soared, pushing major averages to new heights, buoyed by optimism over the Federal Reserve's future rate cuts.

2. Micron Technology Soars on Strong Earnings

Micron Technology's shares leaped 14% following robust earnings, marking its best performance since December 2011 and boosting the semiconductor sector.

3. Megacap Tech Stocks Lead Gains; Apple Falls on DOJ Lawsuit

Major tech stocks contributed to market gains, with Reddit surging in its market debut. However, Apple saw a decline following an antitrust lawsuit by the Justice Department.

4. Industrial Stocks Boost S&P 500

Industrial shares jumped, significantly contributing to the S&P 500's advance, with standout performances from companies like Stanley Black & Decker.

5. Fed Maintains Rate; Signals Future Cuts

The Federal Reserve held interest rates steady while indicating three potential rate cuts by the end of the year, despite ongoing inflation concerns.

6. Five Below Faces Sharp Decline on Earnings Miss

Five Below's stock plummeted 15%, marking its worst day since March 2020 due to disappointing fourth-quarter earnings and forward-looking guidance.

7. BlackRock Highlights Dichotomy in Inflation Trends

Rick Rieder of BlackRock pointed out the stark differences between goods and services inflation, suggesting it's time for the Fed to reduce rates.

8. Piper Sandler Emphasizes High-Quality Stocks for 2024

Piper Sandler recommends focusing on high-quality stocks with strong momentum and high free cash flow yield for the upcoming year.

9. Boeing CEO's Tenure Under Scrutiny

Speculation arises about Boeing CEO David Calhoun's potential departure in the coming months amid growing discontent among airline executives.

10. Semiconductors Shine Following Fed Announcement

The semiconductor industry saw significant gains, with the VanEck Semiconductor ETF climbing 3% as the Fed maintained its dovish stance.

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Today's insights are courtesy of Public.com. Public.com has just launched options trading, and if you activate your account by March 31, you can earn an $0.18 rebate on every single options trade.

Learn More About Public.com ➔