TLDR

MARKET RECAP → Stocks largely fell on Monday as 10-year US Treasury yields jumped to 4.32%. This follows February PCE inflation data released last Friday (while the market was closed). Today, talks of "overbought conditions” ramped up. Right on queue.

TRUMP MEDIA TUMBLES → 🎢 In a financial freefall, Trump Media's (DJT) $58.2 million nosedive into the red pulls the rug under its stock, yet it bizarrely keeps a $6.5 billion market cap afloat, proving even in losses, Trump's brand is an investment roller coaster that defies gravity.

AT&T DATA LEAK DRAMA → 🌐 AT&T (T) investigates a dark web leak affecting over 73 million users, involving personal data sans financial info, with the company taking swift security measures and assuring minimal operational impact.

STOCK SPLITS AND EMPLOYEE SHARES → 📊 Walmart (WMT) and Chipotle's (CMG) stock splits aim to democratize employee share ownership, yet experts doubt a surge in worker investors despite efforts to enhance financial literacy and offer stock at a discount.

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MARKETS

Today’s S&P 500 Heatmap

Notable Earnings This Week

TODAY’S TOP NEWS

Trump Media Tumbles

📉 Share Price Plunge: Trump Media & Technology Group (DJT) reported a staggering $58.2 million net loss in 2023 on revenues of just $4.1 million, sending the company's share price lower by 22%. Despite this nosedive, the firm's market cap somehow remained above $6.5 billion after disclosing its results.

🏦 Financial Roller Coaster: From a 2022 net profit of $50.5 million on $1.47 million in revenue to just $2.7 million in cash by 2023's end, the trajectory of Trump Media's finances could be mistaken for a roller coaster designed by an economist with a cruel sense of humor. The company, famous for the Truth Social app, warned of enduring operational losses, casting a shadow over its financial future.

🚨 Unique Risks and Ownership: With Donald Trump owning a majority stake in the company and subject to earn more shares, Trump Media's valuation seems tethered to political winds as much as financial metrics. The company faces unique risks due to its association with Trump, including potential backlash against its social media platform, Truth Social, and an acknowledged weakness in financial reporting controls that remains unresolved.

TODAY’S TOP NEWS

AT&T Data Leak Drama

🕵️‍♂️ Massive Data Compromise: AT&T (T) is probing an incident that exposed millions of customers' data on the dark web, affecting 7.6 million current and 65.4 million former users. The breach, dating back to 2019 or earlier, involved personal details like names, addresses, and Social Security numbers but excluded financial data and call history.

🔒 Security Measures: In response, AT&T reset passcodes for impacted accounts and is advising affected customers to set up fraud alerts, monitor account activities, and check credit reports. The company is in the process of notifying all affected individuals via email.

🚫 Operational Impact Minimal: Despite the significant breach, AT&T asserts there's been no material effect on its operations. This incident follows a separate, extensive cellular outage in February, attributed to system issues rather than a cyberattack, for which AT&T offered customer credits.

TODAY’S TOP NEWS

Stock Splits and Employee Shares

📈 Innovative Employee Incentives: Walmart (WMT) and Chipotle (CMG) have embraced stock splits as a strategy to make share ownership more accessible to their employees, with Walmart executing a 3-for-1 stock split and Chipotle planning its first-ever split. This move is aimed at democratizing stock ownership among their workforces, enhancing employee investment opportunities.

💡 Challenges in Employee Participation: Despite the intention to broaden stock ownership, experts question the likelihood of a significant uptick in employee shareholders. Factors such as the promotion of Employee Stock Purchase Plans (ESPPs), the availability of financial education, and the financial priorities of lower-wage employees could influence participation rates.

🎓 Financial Education and Accessibility: Both companies are coupling their stock splits with efforts to promote financial literacy and offer ESPPs at a discount, aiming to encourage more employees to invest. However, the effectiveness of these initiatives may be limited by employees' immediate financial needs and a general preference for diversified investments like low-cost index funds.

KEEP READING

Gold prices hit another record high after fresh U.S. data spurs Fed cut expectations (CNBC)

Bitcoin could soar to $150,000 this year, hedge fund manager Mark Yusko predicts (CNBC)

How Maersk grew its shipping empire and how it’s evolving (CNBC)

In AI rivalry with the U.S., China is behind on a key asset: Its own OpenAI (CNBC)

King Charles shakes hands, chats with crowd at most significant public outing since cancer diagnosis (CNBC)

Generative AI ‘FOMO’ is driving tech heavyweights to invest billions of dollars in startups (CNBC)

Largest U.S. sportsbooks join forces to tackle problem gambling (CNBC)

What Happens to Unpaid Credit Card Debt After 7 Years? (ML)

How to Get Fast Small Loans to Build Credit (ML)

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