Elon Musk's SpaceX just crushed Microsoft to claim fourth largest US company spot
Pizza Hut dumped for $2.7 billion by Yum Brands in shocking portfolio cleanup
Hello Capitalists!
Get the edge on what you need to know today:
Musk and SpaceX just crushed Microsoft to claim 4th largest US title
SpaceX seals stunning $60 billion Cursor AI acquisition in Musk power grab
Oil crashes to three-month lows as Iran peace deal shocks energy markets
Yum Brands dumps Pizza Hut for $2.7 billion in shocking portfolio cleanup
Robinhood slashes 10% workforce in ruthless streamlining blitz
BOJ stuns traders with aggressive rate hike to 1% amid inflation surge
Ferrari selloff from Luce EV drama has gone way too far, bank warns
Support The Capitalist, become a paid subscriber today:
Today’s Markets + Assets
🔴 CBOE VIX Volatility: 15.94 (🔽 1.60%)
🔴 Bitcoin: $65,722.90 (🔽 1.34%)
Sponsored by Finance Buzz
Elon Musk’s SpaceX just crushed Microsoft to claim fourth largest US company spot
SpaceX shares surged 13 percent Tuesday pushing market capitalization past Microsoft to $2.94 trillion dollars and claiming fourth place among American companies after its blockbuster IPO debut.
Skyrocketing share performance: Shares climbed 20% on first full trading day now around $229 dollars briefly topping Microsoft at $2.93 trillion and Amazon at $2.66 trillion.
Ambitious revenue vision: Musk projects nearly $1 trillion dollars in annual revenue by 2030 from just $18.7 billion dollars posted last year.
Analyst caution issued: CFRA launched sell rating with $115 dollar target citing ambitious plans elevated valuation and ongoing capital demands.
Strategic AI expansion: Same day brought $60 billion dollar acquisition announcement of AI coding tool Cursor.
Sponsored by Finance Buzz
Insane Cards Charging 0% Interest Into 2027 (Some With Welcome Bonuses Up To $250)
Tackle your credit card debt by paying 0% interest until 2027
If you have outstanding credit card debt, getting a new 0% intro APR credit card could help ease the pressure while you pay down your balances.
Our credit card experts identified top credit cards that are perfect for anyone looking to pay down debt and not add to it!
Some are even offering generous welcome bonuses up to $250! Click through to see what all the hype is about.
SpaceX seals stunning $60 billion Cursor AI acquisition in Musk power grab
SpaceX confirmed its $60 billion dollar all stock purchase of AI coding assistant Cursor accelerating enterprise ambitions following successful IPO and amid rapid growth of the target platform.
All stock transaction: Deal expected to close third quarter pending approvals after earlier option for partnership or full buy at premium.
Rapid target growth: Cursor boasts $2.6 billion annualized revenue with surging enterprise sales from advanced code editor features.
Stock momentum continues: Shares rose further with options trading debut enhancing investor access post massive public offering.
Enterprise AI focus: Move positions SpaceX deeper into software development tools complementing its broader tech ecosystem.
Magnificent Seven era ends as SpaceX storms the Fab 10 club
Investors are shifting from the Magnificent Seven to a new Fab 10 group featuring SpaceX alongside OpenAI and Anthropic as frontier AI leaders reshape portfolios.
Performance highlights noted: SpaceX trading above $200 dollars with nearly $3 trillion valuation alongside Tesla strength.
New tech cohort: Analysts say SpaceX joins frontier AI leaders signaling end of Mag 7 dominance for next decade investments.
Market reaction positive: Shares continued climbing with options trading debut adding momentum as SpaceX market cap nears Microsoft levels.
Strategic positioning clear: Move underscores broader enterprise AI push post record IPO.
Oil crashes to three-month lows as Iran peace deal shocks energy markets
Oil futures dropped to lowest levels since March as investors digested signed US Iran peace framework promising to reopen Strait of Hormuz to shipping this week.
Price movement details: Brent crude fell 1.25% to $82.13 while WTI slid below $80 dollars.
Agreement timeline set: Provisional deal Sunday extends ceasefire sixty days with full reopening Friday free of tolls and signing in Geneva.
Shipping response mixed: Hapag Lloyd hopes ships pass this weekend but major tanker operator expects weeks before comfortable resumption requiring real security.
G7 focus shifts: Peace push dominates leaders meeting in France with more memorandum details coming later this week impacting energy markets.
The Capitalist is a reader-supported publication, we exist for you, because of you!
Yum Brands dumps Pizza Hut for $2.7 billion in shocking portfolio cleanup
Yum Brands agreed to sell its Pizza Hut chain to LongRange Capital and Yum China for $2.7 billion dollars ending portfolio ties with the pizza brand.
Deal breakdown revealed: Approximately $1.5 billion to private equity and $1.2 billion to Yum China yielding net proceeds of two point three billion after adjustments.
Pizza Hut scale: Nearly 20,000 locations in 108 territories generated $12.8 billion system sales last year with US forty percent.
Strategic rationale given: Caps struggles against delivery competitors like Domino’s providing tailored ownership structure to maximize shareholder value after years weighing performance.
Closing outlook stated: Transactions expected third quarter close with details on July earnings call and $85 million one time expenses.
Robinhood slashes 10% workforce in ruthless streamlining blitz
Robinhood Markets is cutting about 10% of its workforce roughly 290 roles to flatten management structure and create leaner more efficient team amid strong trading volumes.
Cost impact noted: Move will result in approximately $28 million dollars in charges mostly severance and benefits.
Leadership changes: CEO said action eliminates management layers to improve agility and focus resources on growth priorities.
Business context strong: Platform benefits from elevated trading activity and expanding user base supporting the efficiency drive.
Timing immediate: Reductions effective immediately with affected employees notified this week.
BOJ stuns traders with aggressive rate hike to 1% amid inflation surge
Bank of Japan raised its policy rate to 1% the highest level since 1995 as officials monitor weak yen and persistent inflation pressures.
Vote breakdown clear: Decision passed seven to one with one dissent amid ongoing concerns.
Inflation context cited: Producer price index rose 6.3% in May fueling rate adjustment.
Yen weakness highlighted: Currency remains under pressure contributing to import cost worries.
Policy stance maintained: Officials continue monitoring data for further moves while supporting growth.
Ferrari selloff from Luce EV drama has gone way too far, bank warns
Morgan Stanley declared Ferrari stock selloff overdone after Luce electric vehicle launch criticism citing resilient 40% margins strong special model demand and raised price target to 380 euros.
Performance decline noted: Shares down 26% year to date amid EV transition skepticism.
Margins remain robust: Approximately 40% levels support valuation despite recent pressure.
Demand outlook positive: Special models continue strong sales offsetting broader model concerns.
Target adjustment made: Price target lifted to $380 euros with buy recommendation reaffirmed.
Read our deep dive on Ferrari’s highly risky push into the EV market here:
Support The Capitalist by getting the SubStack App
Let us know your thoughts in the new Capitalist chat portal.
Ole Cherokee Warren to go off the rails of human intelligence again
Good for Elon. I think Gates has gone woke.