Hey there weekday warriors,

Today we’re getting into Disney’s earnings, TikTok’s case against Uncle Sam, and a whole lot more. Enjoy the next 4 minutes and 10 seconds of blue-chip news and commentary.

Keep on snapping necks and cashing checks,

- tyler

+ US stocks “finished close to where they started Tuesday but largely built on a string of gains amid growing hopes for rate cuts later this year.” (Yahoo! Finance)

+ The 10-year Treasury yield was “lower on Tuesday as investors considered the outlook for Federal Reserve monetary policy following the latest economic data and remarks from central bank officials." (CNBC)

+ Oil “edged higher on Tuesday after the U.S. government resumed buying oil for its strategic reserve, but the market was pressured by easing supply concerns and signs of weakening demand.” (Reuters)

+ Bitcoin was mostly flat on the day.

+ The three most talked about stocks on WallStreetBets in the past 24 hours were: 1) Palantir -15.1% 2) Nvidia -1.7% 3) ALTC Acquisition Corp. -4.0%

The market moves you need to know about…

+ Have yourself a day, Lyft. Shares of the ride-sharing company popped 6.3% after hours on news of an earnings beat and a healthy outlook.

+ Shares of International Paper rose 5.2% on news that Brazilian paper giant Suzano has made a $15B all-cash offer. IP has already said ‘thanks, but no thanks’… because who settles for the first offer?

Putting the plus in Disney+

“You did it, you crazy son of a bitch, you did it.” - Disney investors to Bob Iger (probably)

After nearly 5 years of lighting billions of dollars on fire, Disney (-9.5%) has finally done it. Disney+ and Hulu turned a small profit ($47M) for the first time. Compare that to a loss of nearly $600M in the same quarter last year.

To be fair, when you add in ESPN+ the collective streaming services lost $18M. But that’s a rounding error for Disney. And it shows the progress the House of Mouse has made in making its streaming biz profitable. Probably not a coincidence that it happened the same quarter the Taylor Swift Eras Tour movie dropped on the service…

Oh, so how much did Disney stock jump?

Funny story. It actually fell ~10% on the day. And not because of an earnings miss. The company beat the Street’s estimates on the top and bottom lines.

Markets got caught up on a handful of data points. Like, the fact that ESPN+ is bleeding money, and we’re still a few quarters away from that ESPN/Fox/Warner Bros. sports super app (and the standalone ESPN streaming service).

Hinting that the streaming arm of Disney will flip to a loss next quarter, but probably make money again in Q4, might’ve made investors uneasy too.

Oh, and it turns out that theme parks that charge F1 Miami Grand Prix prices for Mickey-shaped ice cream could be negatively impacted by an economic downturn. The company predicted weakness in its parks division this year.

Or, of course, maybe it was because another earnings call has gone by with no CEO successor announcement…

+ The vultures are circling…

That’s what happen when a $50B smart fitness startup turned pandemic darling flirts with a two-comma valuation. Following a series of unfortunate events, Peloton (+15.5%) is barely clinging to a $1B market cap.

Shares of Peloton mooned on reports that PE shops are kicking the tires on taking the stationary bike maker private.

And now parting ways with its CEO, laying off 15% of its workforce, and looking to cut costs by $200M make a whole lot more sense…

+ China: *commits egregious human rights violations on the regular*

A company controlled by the Chinese government: “Stop violating our First Amendment rights!”

As expected, TikTok is suing the US government, claiming its proposed forced sale (or ban) of the app violates its First Amendment rights.

TikTok claims that the US government can’t simply cite a “national security threat” and goes on to challenge Uncle Sam to prove it. How well does “because America, that’s why” hold up in a court of law?

The legal wrangling could take years, which means day in the life vids of overpaid tech employees will live to fight another day.

+ The amount of loss p*rn among Reddit shorts is going to be legendary tomorrow…

Reddit (+2.3% // +14.7% after hours) just reported earnings for the first time as a publicly traded company. And the glorified message board put on a clinic. It beat on the top and bottom lines and hiked revenue guidance for the current quarter.

What might be most impressive is that revenue jumped 39% in the most recent quarter. That’s well above its biggest competitors. Looking at you, Zuck. If only it could figure out how to actually turn a profit…

+ And the crowd goes… mild.

Tim Cook really looked us in the eyes and called yesterday “the biggest day for iPad since its introduction.”

Apple (+0.3%) unveiled new iPad Pros and Airs, marking the first iPad update since 2022. The biggest change is that the new iPads will be powered by Apple’s M4 chips. Shares barely budged following the announcement.

+ I spent 18 months and $34,000 traveling the world but was burnt out and unhappy—this was my No. 1 mistake (Read)

+ Highly successful people use this mental shift to get ahead of stress at work, says neuroscientist (Read)

Yesterday, we were keeping an eye on earnings reports from Disney, Lyft, Reddit, and Celsius.

+ Celsius (-1.7%) shares fell after reporting a rare top-line miss.

+ Check out results from Disney, Lyft, and Reddit above…

Here's what we’re keeping an eye on today...

+ Uber, AB InBev, Shopify, and New York Times report this AM

+ Arm, Airbnb, Hubspot, Robinhood, Instacart, Duolingo, and AMC report after the close

+ Crude oil inventories report drops

Here’s today’s question…

In honor of Celsius’ earnings…

Oh, and…

Does this look like the face of a guy you should take financial advice from?

No, it’s the face of an individual who is financially irresponsible/dumb enough to be talked into spending money on a family photo shoot that he could have just done with his iPhone. So, act accordingly...

This is not financial advice. Nothing in this newsletter is an investment recommendation. All content is created for entertainment, educational, or informational purposes only. Do your own research, or do yourself a favor and hire a professional