😳 Meta Pays $14 Billion For 49%

Good afternoon! Warner Bros. Discovery is splitting in two—but not before cutting one last check to McKinsey. The consulting firm was paid $155 million over three years to first advise the 2022 merger, then rebrand HBO three times, and now… recommend a breakup. That’s $63 million just to conclude the companies should’ve stayed separate all along.

By mid-2026, Warner Bros. Discovery will become two publicly traded firms: one for streaming (HBO, Max, DC Studios) and one for cable (CNN, TNT, Discovery). Executives say the split helps each side focus—streaming can chase growth while cable handles its debt-heavy legacy.

MARKETS

• Markets crept higher Tuesday as US-China trade talks entered day two with encouraging signals. Commerce Secretary Howard Lutnick said discussions were going “really, really well,” and traders seemed to agree—sending the S&P 500 up 0.55% and the Nasdaq up 0.63%.

• It marked a third straight win for both indexes. The Dow rose 105 points, while the small-cap Russell 2000 climbed 0.6%. With negotiations possibly stretching into Wednesday, investors are hoping all this goodwill turns into something concrete.

STOCKS
Winners & Losers

What’s up 📈

• Insmed exploded 28.65% after announcing strong Phase 2b trial results for its new pulmonary arterial hypertension treatment. ($INSM)

• SolarEdge surged 11.81% and Sunrun gained 7.13% after major tech firms began lobbying Congress to protect clean energy subsidies. ($SEDG, $RUN)

• Casey’s General Store jumped 11.59% after a massive earnings beat and a 14% dividend hike. ($CASY)

• Topgolf Callaway added another 4.12% to its rally following director share purchases. ($MODG)

• Tesla climbed 5.67% as Musk and Trump appeared to reconcile, and hype builds for the robotaxi reveal. ($TSLA)

• Comcast rose 2.95% after agreeing to sell its stake in Hulu to Disney. ($CMCSA)

• Disney gained 2.65% on the Hulu deal, taking full control of the platform. ($DIS)

• TSMC rose 2.65% after May revenue spiked 39.6% year over year. ($TSM)

What’s down 📉

• J.M. Smucker dropped 15.57% after posting mixed earnings and a soft outlook. ($SJM)

• Calavo Growers fell 16.26% after missing on both revenue and earnings. ($CVGW)

• Liquidia and United Therapeutics lost 16.87% and 14.32% respectively on news that rival Insmed had positive trial results. ($LQDA, $UTHR)

• McDonald’s slid 1.43% following its third downgrade in three days, this time to a sell on foot traffic and weight loss drug concerns. ($MCD)

STAKE
Meta to Pay Nearly $15 Billion for Scale AI Stake and Startup’s 28-Year-Old CEO

Meta is reportedly in talks to pour $14 billion into Scale AI and poach its CEO, Alexandr Wang, to helm a new “superintelligence” lab. The goal? To turn Meta’s sputtering AI effort into something worthy of the name. Think less Llama Drama, more AGI with fangs.

It would be Meta’s biggest outside bet yet and a sign that Mark Zuckerberg is tired of playing catch-up in a race he once thought he was leading. After Llama 4 flopped harder than a Threads update, Zuck went full founder-mode personally DM’ing AI researchers on WhatsApp, reorganizing desks at HQ, and naming his new pet project the “superintelligence team” like it’s a Marvel spin-off.

Why Wang? Why Now?

Scale AI doesn’t build models, it labels the data that trains them. It’s the backbone of the AI industry, quietly powering everyone from OpenAI to the Pentagon. In other words: not flashy, but essential. Wang’s rise as a 28-year-old unicorn founder made him a cult hero in tech circles. Meta’s hoping he’ll now be their AI messiah.

Meta’s AI ambitions have been chaotic at best. Llama 4 was supposed to be the flagship model, then it underwhelmed. Meanwhile, Meta’s internal AI teams reportedly don’t talk to each other. Bringing Wang in would effectively hand him the keys, letting him clean house and build a new AI lab with autonomy… and $14B in Meta cash.

Regulators Are Watching: The deal would give Meta a 49% stake in Scale AI, while Wang keeps control. But that structure won’t stop scrutiny. The FTC and DOJ have made it clear they’re not fans of tech giants quietly acquiring influence through minority stakes. And this isn’t just a business deal, t’s part of a broader AI power struggle playing out in real time.

Meta’s betting big. If it works, they may finally have a seat at the grown-ups’ table in AI. If it doesn’t, well… there’s always the metaverse.

NEWS
Market Movements

• 🚖 Tesla Gains on Robotaxi Momentum in Austin: Tesla shares rose 5.7% after the company was listed as an approved autonomous vehicle operator in Austin ahead of a June 12 robotaxi pilot. The positive momentum comes as Musk’s feud with Trump shows signs of cooling ($TSLA).

• ⚛️ Rolls-Royce to Build Modular Nuclear Plants in U.K.: Rolls-Royce received government backing to construct three small nuclear reactors expected to power 3 million homes by the 2030s ($RR.LON).

• 🎮 GameStop Slides on 17% Revenue Drop: GameStop reported first-quarter sales of $732.4 million, down 17% from last year, sending shares down 5.8% in after-hours trading despite a narrower operating loss ($GME).

• 📉 Google Offers Buyouts Across Core Divisions: Google is offering voluntary exit packages to U.S. employees in its search, ads, engineering, marketing, and research teams as part of ongoing cost-cutting efforts following 2023’s mass layoffs. Some teams are also requiring office returns for remote workers living near campuses ($GOOGL).

• ☕ Starbucks Launches AI Assistant with Microsoft: Starbucks unveiled a generative AI assistant built with Microsoft’s OpenAI tools to streamline barista tasks and improve service times. The "Green Dot Assist" platform will roll out in North America in fiscal 2026 ($SBUX, $MSFT)

• 🏈 FanDuel Adds $0.50 Fee on Illinois Bets: Flutter’s FanDuel is tacking on a $0.50 surcharge for bets in Illinois to offset the state’s steep new sports betting tax, with rival DraftKings considering similar moves ($FLUT, $DKNG).

• ⛽ Casey’s Surges on Strong Q4 Food Sales: Casey’s stock jumped 11.5% after beating revenue estimates with $3.99 billion in Q4 sales. Food led the charge with $582.4 million in gross profit, far outpacing fuel and even Domino’s recent results ($CASY)

• 🎬 Paramount to Cut 3.5% of U.S. Workforce: Paramount Global will lay off several hundred employees as part of cost-cutting measures ahead of its planned merger with Skydance Media ($PARA).

  📺 Disney Finalizes Hulu Buyout from Comcast: Disney completed its $438.7M purchase of Comcast’s 33% Hulu stake, clearing the way for full integration with Disney+ and ESPN streaming services ($DIS).

  🚕 Uber to Begin U.K. Robotaxi Trials with Wayve: Uber will trial fully driverless robotaxis in London starting next spring in partnership with AI firm Wayve, as part of the U.K.’s autonomous vehicle push ($UBER).

• 🧠 IBM Targets 2029 for Quantum Breakthrough: IBM announced plans to launch a practical quantum computer by 2029 and an advanced system by 2033, relying on new error-correction breakthroughs ($IBM).

• 💳 Walmart Launches Credit Cards via Fintech Arm: Walmart is rolling out new credit cards through its fintech unit OnePay, in collaboration with Synchrony ($WMT, $SYF).

AI
Snap to launch AI-powered AR glasses in 2026

Snap’s betting big on your face. The company just announced Specs, a new pair of consumer-focused augmented reality glasses dropping in 2026. Unlike its old Spectacles, which were glorified selfie cams, these are full-on smart wearables—lighter, sleeker, and stacked with AI.

Running Snap’s custom OS, Specs respond to hand gestures, pack a built-in assistant, and let you do everything from streaming Netflix to translating menus in real-time. Think AirPods for your eyes with more flair and fewer wires.

AR Gets a Reality Check

Snap’s been dabbling in wearables since 2016, but this marks its first serious swing at mass-market AR. With Meta’s Project Artemis not expected until 2027 and Apple’s $3,499 Vision Pro out of reach for most humans, Snap is aiming for the sweet spot: futuristic but affordable.

CEO Evan Spiegel says Specs will cost less than Apple’s headset (low bar) and won’t require an external battery. They’ll also come in black to start, with limited-edition drops likely to follow for the hypebeasts who AR in Balenciaga.

The Lenses Are the Secret Weapon

Specs will lean hard on Snap’s signature AR Lenses—those digital overlays you’ve seen on dog faces and cartoon halos. But this time, they’re going 3D. Developers have already built 4 million+ Lenses used 8 billion times a day, and Specs will add games, AI tools, and immersive experiences layered on your world.

Snap’s even teaming up with Niantic (of Pokémon GO fame) to anchor Specs to real-world locations using a visual positioning system. Think geotagged AR Mario Kart in Times Square, or Snapchat filters that know where you are—and what’s around you.

The Bigger Vision: Beyond the flash, Snap is framing Specs as a philosophical leap—a break from the tiny, tap-heavy rectangles we call phones. “The smartphone limited our imagination,” Spiegel said. Specs, he argues, let us look up again, engage hands-free, and live in the world—not just scroll through it.

It’s a lofty pitch. But if Snap can turn novelty into utility, Specs might just be the next big thing to live on your face. And hey, at least these glasses won’t fog up when you walk outside.

Calendar
On The Horizon

Tomorrow

Tomorrow’s CPI drop isn’t just another data point—it’s the market’s mood ring. With tariffs in the mix and whispers of inflation picking back up, investors are watching closely to see if the May numbers show real heat or just background noise. A surprise could move markets, and a cooler print might calm the recent rate hike chatter.

In April, headline CPI clocked in at 2.3% year over year, with core CPI (minus food and fuel) sitting at 2.8%. This time around, economists are penciling in slight bumps—2.5% for headline, 2.9% for core. Not wild moves, but enough to stir up fresh speculation about where prices—and the Fed—go next.

NEWS
The Daily Rundown

• 💼 CEOs Rally Behind Trump’s ‘Investment Accounts’ Plan: Top execs from Uber, Goldman Sachs, and Dell joined Trump to back his proposed “Trump Accounts”—$1,000 federally funded investment accounts for every newborn U.S. citizen. Supporters say it promotes financial literacy and savings; critics call it a re-election gimmick wrapped in policy clothing.

• 🌊 Greta Thunberg Deported After Gaza Aid Attempt: Climate activist Greta Thunberg was detained by Israeli authorities after trying to breach the Gaza blockade aboard the Madleen. Israel seized the vessel and deported the activists, citing maritime law. Thunberg called the move a violation of international law and condemned the humanitarian conditions in Gaza.

• 🎮 Microsoft Launches Xbox Handheld Consoles: Microsoft is entering the handheld gaming space with the Xbox Ally and Ally X, developed in partnership with Asus. The portable consoles feature 7-inch screens, cloud gaming support, and compatibility with Steam. The high-powered Ally X could compete with the Steam Deck—but expect a price tag near $800.

• 🎸 Music Legend Sly Stone Dies at 82: Sly Stone, the iconic frontman of Sly and the Family Stone, passed away from COPD at age 82. Known for trailblazing funk and soul fusion, Stone helped shape American music and was inducted into the Rock Hall in 1993. He’s remembered for hits like “Everyday People” and “Thank You (Falettinme Be Mice Elf Agin).”

• 🥗 Chipotle Adds New Dip to Menu: For the first time in five years, Chipotle is adding a new dip—Adobo Ranch—launching June 17. The chain hopes the 75-cent ranch side will revive sales after its first quarterly decline in same-store revenue since the pandemic. Rewards members can try it free on launch day.

• 💉 RFK Jr. Fires CDC Vaccine Panel: Health Secretary Robert F. Kennedy Jr. dismissed all 17 members of the CDC’s vaccine advisory board, accusing them of being too aligned with pharmaceutical companies. The controversial move was criticized by lawmakers and health officials who warned it could undermine public trust in vaccines. RFK Jr. says a new structure is in the works.

• ⚖️ California Sues Trump Over National Guard Deployment: Gov. Newsom filed suit against Trump for deploying troops to LA without the state’s request, calling it a dangerous abuse of power. The White House called the claim “baseless,” while Trump suggested Newsom should be arrested for obstruction of immigration enforcement.

• 📉 China’s Exports to U.S. Plunge 34.5%: Chinese exports to the U.S. fell by their steepest margin since the early pandemic, despite a temporary 90-day tariff truce. The data underscores the fragility of current U.S.-China trade talks in London, where each side is pushing for concessions on tech exports and rare earths access.

• 🏦 Ken Moelis Steps Down as CEO of Moelis & Co.: Investment banking veteran Ken Moelis is stepping aside from his namesake firm, handing the reins to co-founder Navid Mahmoodzadegan on October 1. Moelis will stay on as executive chairman, wrapping up a long-planned leadership transition.

• ⚖️ Justin Baldoni’s $400M Lawsuit Dismissed: A judge tossed actor-director Justin Baldoni’s massive defamation lawsuit against Blake Lively, Ryan Reynolds, and the New York Times, citing lack of evidence. Baldoni may refile parts of the case, which stemmed from misconduct allegations and media reporting.

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