Silver banana goes to…

In this issue of the peel:

• 🔮 The Fed remains in "wait and see" mode, leaving markets as uncertain as a fortune cookie prediction.

• 🚀 Tencent Music and ThyssenKrupp hit high notes while Warby Parker and Reddit take a dive.

• 🛡️ Google drops $32B on cybersecurity firm Wiz—brilliant strategy or just an expensive magic trick?

Market Snapshot

Banana Bits

• Check out Nvidia’s new Rubin AI and Blackwell Ultra chips, being released soon.

• Alphabet jumps into the cybersecurity game with its acquisition of Wiz.

• While a rate cut is completely off the table, investors will be hanging on to every word from Powell.

• Remember those two NASA astronauts who got stuck for six months in space? Well, they’re back!

• Even Taco Bell is getting in on the AI race, partnering with Nvidia to speed up its AI usage program.

• New Yorkers may be able to go back to those bacon, egg, and cheese bagels if egg prices continue falling.

• Pepsi looks to rebrand itself to younger consumers through its acquisition of Poppi.

The Daily Poll

Previous Poll:

If bond yields keep falling, what should the Fed do?

Stay hawkish: 17.0% // Cut rates ASAP: 27.8% // Wait and watch: 26.8% // Fed has no clue: 28.4%

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Macro Monkey Says

The Fed’s Fortune Cookie: Vague, Confusing, and Probably Wrong

Watching the Fed is like waiting for a text from your ex that will likely never come. As the goon squad wraps up its two-day policy meeting, investors and economists alike are out here playing economic weatherman—forecasting storms, sunshine, or just more Fed-fueled turbulence. 

The consensus? A firm "No." With interest rates currently lounging between 4.25% and 4.5%, the Fed seems content to play the waiting game, adopting a "let's see what happens next" approach. 

Guess what’s making markets nervous this time? If you said President Trump's trade policies, congrats—you’ve been paying attention! The ongoing tariff drama has businesses and consumers alike clutching their wallets like they just saw the price of avocados.

And now, the finance world is whispering the dreaded "S" word—stagflation. Yep, the fear is that these trade tensions might slow down growth while keeping prices annoyingly high. So basically, it's a worst-of-both-worlds situation. Fun times ahead!

The Fed has spoken—or rather, not spoken—because their plan is to wait and watch. In Fed-speak, that translates to: "We're not touching those rates until we have a clearer picture." Basically, they’re treating this economy like a suspicious email attachment—better to hold off and see what happens.

And can you blame them? One moment, we’ve got strong job growth, and the next, consumer sentiment is in freefall. The Fed’s patience makes sense—because right now, guessing the economy’s next move is like playing the lottery, but with way worse prizes.

So, as we await the Fed's latest economic projections, complete with the much-anticipated "dot plot," let's remember that in the world of economics, as in life, sometimes the best course of action is to hurry up and wait. After all, when the crystal ball is this foggy, it's best not to make any sudden moves.

Career Corner

Question

Most job descriptions have "must obtain series 7 and 63 in 90 days". What happens if you don't? Does the company fire you?

Answer

Yes, typically, you need to get licensed, and it will be a condition of employment. Depending on the role and org, it may be the SIE, S79, S7, and S63.

Head Mentor, WSO Academy

Check out WSO Academy

What's Ripe

Tencent Music (TME) 15.5%

• Shares jumped after the company posted solid Q4 earnings of $268 million. Sounds great, right? Well, not when you compare it to last year’s $1.31 billion. But investors still cheered, thanks to a shiny new $1 billion share buyback plan. Sometimes, it’s the little things.

ThyssenKrupp AG (TKAMY) 15.4%

• Defense stocks have been rock-solid lately, and ThyssenKrupp is riding the wave. The company’s stock rose after confirming plans to spin off a minority stake in its warship division, ThyssenKrupp Marine Systems, and list it on the Frankfurt stock exchange. Investors seem thrilled—because nothing says “smooth sailing” like a warship business going public.

What's Rotten

Warby Parker (WRBY) 12.4%

• Shares of the trendy eyewear retailer took a nosedive. Investors squinted at the company's latest earnings report, which revealed a slowdown in sales growth and shrinking profit margins. Perhaps it's time for Warby Parker to refocus its vision.

Reddit (RDDT) 12.3%

• The front page of the internet found itself on the back page of investors' minds as shares fell profoundly. Analysts at Redburn Atlantic initiated coverage with a "sell" rating, citing concerns over slowing user growth and overreliance on Google's search algorithm changes. Looks like Reddit's karma took a hit.

Thought Banana

Google’s $32 Billion Magic Trick 

In a move that has tech analysts reaching for their thesauruses to find synonyms for "colossal," Alphabet Inc., Google's parent company, has announced its intention to acquire cybersecurity wunderkind Wiz for a cool $32 billion. Yes, you read that right—billion with a "B." ​

So, who is this mysterious Wiz that has Google ready to part with a sum that could fund a small country's GDP? 

Founded in 2020 by a quartet of cybersecurity mavens, all alums of the elite Unit 8200, Wiz has quickly ascended the tech ladder, offering cloud security solutions that make other companies green with envy—and possibly a little bit of fear. ​

But why the hefty price tag? Well, in the high-stakes poker game of cloud computing, security is the ace up the sleeve. 

With this acquisition, Google isn't just buying a company; it's buying peace of mind for its cloud customers, aiming to outmaneuver rivals like Amazon and Microsoft in the process. ​

Of course, no magic trick is complete without a bit of suspense. The deal is set to face regulatory scrutiny, especially under the watchful eye of the Trump administration's antitrust policies. Will the acquisition pull a rabbit out of the hat, or will it disappear in a puff of regulatory smoke? Only time will tell. 

In the meantime, as Google prepares to welcome Wiz into its fold, tech enthusiasts and market watchers alike are left pondering: Is this a masterstroke in cybersecurity strategy, or just another expensive magic trick? Either way, it's clear that in the world of big tech, the only constant is change—and a penchant for headline-grabbing acquisitions.

The Big Question: How will regulators view this deal—an essential step for cybersecurity innovation or another tech monopoly power grab?

Banana Brain Teaser

Previous

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?

Answer: 6/11

Today

At a certain fruit stand, the price of each apple is 40 cents, and the price of each orange is 60 cents. Mary selects a total of 10 apples and oranges from the fruit stand, and the average (arithmetic mean) price of the 10 pieces of fruit is 56 cents. How many oranges must Mary put back so that the average price of the pieces of fruit that she keeps is 52 cents?

Send your guesses to [email protected]

How Would You Rate Today's Peel?

Happy Investing,
Chris, Vyom, Ankit & Patrick

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