Silver banana goes to…

In this issue of the peel:

• 📦 Nike’s stock leaps after shifting production away from China to dodge tariffs and reassure investors amid rising trade risks.

• 🤖 CoreWeave rekindles talks to acquire Core Scientific, eyeing AI infrastructure dominance and a multibillion-dollar energy-backed partnership.

• 🏠 U.S. new home sales tumble as 7%+ mortgage rates freeze buyers out of the market and dampen housing demand.

Market Snapshot

Banana Bits

• Tesla vs. Waymo: The robotaxi race heats up as Elon Musk preps for a major August unveiling.

• Canada’s economy may have shrunk again in May, following a 0.1% contraction in April GDP.

• Consumer sentiment rebounded in late June, but long-term inflation expectations remain stubbornly elevated.

• U.S. new home sales fell 11.3% in May, with 7%+ mortgage rates scaring off buyers.

• Sanctioned Russian steelmaker sells North American plants to U.S. firm, raising geopolitical and regulatory questions.

• Blackstone scoops up $2 billion more in discounted commercial real estate loans, betting on a rebound.

The Daily Poll

Previous Poll:

Can Nvidia compete with Big Tech in cloud?

Yep: 55.6% // Maybe: 25% // Unlikely: 13% // No chance: 6.4%

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Macro Monkey Says

Trade Turmoil, No Problem for U.S. Economy

Despite escalating trade tensions and a series of tariffs, the U.S. economy continues to demonstrate moderate resilience. Recent data indicates that consumer sentiment remains robust, and job growth has held expectations, suggesting that the economy is weathering the trade storm better than anticipated.

However, annualized growth in gross domestic product is likely to average 0.8% over the first two quarters of 2025, according to S&P Global Market Intelligence, down sharply from 2.5% in 2024. 

And although U.S. jobless claims fell by 10,000 to 236,000 last week, below expectations, economists still expect the unemployment rate to rise to 4.3% amid sluggish hiring and economic uncertainty fueled by ongoing tariffs. 

While certain sectors, such as manufacturing, have felt the pinch of increased tariffs, the overall economic momentum has not significantly faltered. Analysts attribute this endurance to modest domestic demand and a tight labor market, which have helped offset some of the negative impacts of the trade disputes. 

However, concerns linger about the long-term effects of sustained trade barriers, including potential inflationary pressures and disruptions to global supply chains.

The Takeaway?

The U.S. economy showcases moderate resilience amid ongoing trade tensions, with robust consumer sentiment and a tight labour market offsetting some negative impacts. While certain sectors experience challenges, overall momentum remains positive. However, prolonged trade disputes pose risks of inflation and supply chain disruptions, warranting close monitoring by policymakers and investors.  

Career Corner

Question

As I’ll start my internship in 10 days, do you suggest I reach out to folks in the firm for an early catch-up?

Answer

Maybe the person who is directly managing you, but besides that, you will have plenty of time for coffee chats throughout your internship.

Head Mentor, WSO Academy

Check out WSO Academy!

What's Ripe

Nike Inc. (NKE) 15.2% 

• Nike shares surged 15.2% on Friday, following the company's announcement of a strategic shift in production away from China to mitigate the impact of impending U.S. tariffs. The move aims to reduce the percentage of U.S.-imported footwear made in China from 16% to single digits by fiscal 2026. 

• Despite anticipating a $1 billion financial hit due to tariffs, Nike's proactive approach and slightly better-than-expected quarterly earnings boosted investor confidence.

Snap Inc. (SNAP) 7.1% 

• Snap shares climbed 7.1% on Friday, driven by positive market sentiment and the company's recent advancements in augmented reality (AR) technology. Investors are optimistic about Snap's upcoming launch of new lightweight, immersive Spectacles in 2026, which are expected to enhance user engagement and open new revenue streams. 

• The stock's performance reflects growing confidence in Snap's innovation strategy and its potential to capture a larger share of the AR market. 

What's Rotten

Palantir Technologies Inc. (PLTR) 10.6%

• Palantir shares dropped 10.6% on Friday, as investors engaged in profit-taking following a significant year-to-date gain of 90%. The data analytics company, known for its defense and intelligence solutions, had previously seen its stock soar amid rising geopolitical tensions. However, concerns over its high valuation and the sustainability of its growth trajectory led to a sharp decline on Friday. 

Astera Labs Inc. (ALAB) 7.1%

• Astera Labs experienced a notable decline of 7.1% on Friday. This drop appears to be driven by profit-taking activities and broader market volatility affecting high-growth tech stocks. Despite the company's strong financial performance, in Q1 and optimistic Q2 projections, investors seem to be reassessing valuations in the tech sector, leading to a pullback in stock prices. 

Thought Banana

AI Push Drives CoreWeave Back to the Table

In a strategic move reflecting the escalating demand for AI infrastructure, CoreWeave, a leading AI-focused cloud provider, is reportedly in advanced discussions to acquire Core Scientific, a prominent b*tcoin mining and hosting firm. This development follows a previously rejected $1.02 billion bid by CoreWeave in June 2024, which Core Scientific deemed undervalued. 

The renewed talks are underpinned by a significant 12-year agreement established last year, wherein Core Scientific committed to supplying approximately 200 megawatts of infrastructure to support CoreWeave’s high-performance computing services. This partnership is projected to generate billions in revenue, highlighting the synergistic potential of the merger.

News of the acquisition talks propelled its stock by over 30%. Meanwhile, CoreWeave, which went public in March 2025, boasts a valuation of approximately $75 billion and counts tech giant Microsoft among its major clients. 

This potential acquisition underscores the intensifying competition in securing energy resources essential for AI operations. As AI applications proliferate, the demand for robust, energy-intensive infrastructure becomes paramount, making collaborations like this pivotal in shaping the industry's future.

The Takeaway?

CoreWeave is in renewed acquisition talks with Core Scientific, aiming to bolster its AI infrastructure capabilities. The move follows a previously rejected bid and is supported by a substantial 12-year hosting agreement between the two firms. As AI demand surges, securing energy-intensive infrastructure becomes crucial, positioning this potential merger as a strategic alignment to meet the industry's evolving needs.

The Big Question: Is CoreWeave’s AI ambitions driving smart consolidation or just an expensive energy land grab?

Banana Brain Teaser

Previous

There are 8 teams in a certain league, and each team plays each of the other teams exactly once. If each game is played by 2 teams, what is the total number of games played?

Answer: 28

Today

In a box of 12 pens, a total of 3 are defective. If a customer buys 2 pens selected at random from the box, what is the probability that neither pen will be defective?

Send your guesses to [email protected]

How Would You Rate Today's Peel?

Happy Investing,
Chris, Vyom, Ankit, Mithun, Colin & Patrick

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