📈 OpenAI's CEO Saga

Sam Altman shock: fired Friday as OpenAI’s CEO, Mira Murati then Emmett Shear each named interim CEO over the weekend (developing), Blackstone is frontrunner in Signature Bank property-loan sale, S&P 500 flirts with quickest comeback in 10 years, and President-elect Milei vows to open a new era for Argentina...

November 20, 2023

☕️ Good Morning.

The Fast Five → Sam Altman shock: fired Friday as OpenAI’s CEO, Mira Murati then Emmett Shear each named interim CEO over the weekend (developing), Blackstone is frontrunner in Signature Bank property-loan sale, S&P 500 flirts with quickest comeback in 10 years, and President-elect Milei vows to open a new era for Argentina…

Your 5-minute briefing for Monday:

BEFORE THE OPEN

As of market close 11/17/2023. Bitcoin as of 11/19/2023.

MARKETS:

  • S&P 500 rises in third consecutive winning week.

  • S&P 500 up 0.13%, Dow up 0.01%, Nasdaq up 0.08%.

  • All three major averages secure their third straight positive week.

  • S&P 500 gains 2.2%, Nasdaq jumps 2.4%, Dow advances 1.9% for the week.

  • November sees S&P 500 up 7.6%, Dow up 5.7%, Nasdaq surging 9.9%.

  • Gap shares surge 30% on better-than-expected Q3 results; ChargePoint falls 35% after C-suite shake-up and lower Q3 revenue forecast.

EARNINGS

  • What we're watching this week:

    • Today: Zoom

    • Tuesday: Nvidia, HP, Lowe’s, Autodesk, Medtronic, Abercrombie & Fitch, Best Buy, Nordstrom

    • Wednesday: Deere

    • Thursday: Royal Bank of Canada

  • Full calendar here

NEWS BRIEFING

OpenAI Board Taps Former Twitch CEO Shear to Succeed Altman (Read More)

OpenAI Turmoil: Sam Altman Suddenly Fired as CEO Friday — Microsoft, Investors Urged OpenAI Board to Swiftly Restore Altman [weekend timeline] (Read More)

  • OpenAI Saga:

    • 🚨 Microsoft to Appoint Sam Altman CEO of New In-House AI Team (Read More)

    • OpenAI shakeup has rocked Silicon Valley, leaving some techies concerned about future of AI (Read More)

    • OpenAI board urged by Microsoft, investors to restore Altman (Read More)

    • A timeline of Sam Altman’s firing from OpenAI — and the fallout (Read More)

    • Who’s on the OpenAI board — the group behind Altman’s ouster (Read More)

  • Wall Street’s ESG craze is fading (Read More)

  • Huawei is giving Apple stiff competition in China (Read More)

  • Tesla beat lawsuit claiming it monopolizes repairs, parts (Read More)

  • Apple’s in-house technologies team still has plenty of work to do (Read More)

  • Inside Bob Iger’s roller coaster year at Disney (Read More)

  • S&P 500 flirts with quickest comeback from correction territory in 10 years (Read More)

  • Argentina elects 'shock therapy' libertarian Javier Milei as president (Read More)

    • Milei vows swift measures to pull Argentina out of crisis (Read More)

  • Bayer ordered to pay $1.56B in latest US trial loss over Roundup weedkiller (Read More)

  • Blackstone is frontrunner to win Signature Bank's $17 billion portfolio of property loans (Read More)

CRYPTO

  • The SEC deferred making a decision again on two more spot Bitcoin ETF applications (Read More)

  • Fidelity is seeking to create an ether ETF (Read More)

BULLISH BITES

🎁 Holiday gift guide: 96 luxury gifts that delight all six senses

🥃 Cheers: Prohibition-era bottle of Macallan whisky sells for a record $2.7 million Sotheby's auction

💡 Get it: Want a brilliant side hustle or business idea? Stop waiting for a 'lightbulb moment,' experts say

🕺 Forever young: Dancing to Rihanna and matching tattoos. Senior living is taking over TikTok

🤝 Like a pro: Struggling to get a constant flow of customers? Let ClickFunnels do the heavy-lifting!

FEATURED TRADES

SAVE - JBLU merger arbitrage

Jet Blue and Spirit Airlines are both airlines that have agreed to a merger that is currently being challenged in court.

Ticker: SAVE | Price: $12.43 | Price Target: $30 (+141%) | Timeframe: ~3 months

🛩️ Airline | 🚨 Event Driven | 📈 Bullish Idea

Spirit Airlines ($SAVE) has seen a significant 40% drop in its stock price from $16 to $9.50 within two weeks, attributed to modest changes in expected outcomes rather than fundamental business issues. The primary focus is on the pending acquisition by JetBlue Airways ($JBLU), with a potential upside of $30 per share if the acquisition is successful, translating to a 200% upside from the current price. Despite some uncertainty, the odds of the acquisition's trial success are assessed at 70%, with a slight risk of JetBlue attempting to renegotiate or break the deal, and a low probability of government intervention blocking the merger. Factoring in these risks, the expected outcome is a 60% chance of success, equating to an expected profit of $12.30 per share. On the downside, if the acquisition fails, the stock might drop to around $4, leading to a potential loss of $2.20 per share. This scenario presents a high-risk, high-reward investment opportunity, with an expected return exceeding 100% in about three months, but also carries the risk of a significant loss, potentially up to 60%, based on future developments and news updates

Read the full article here. Read time: 4 min

DAILY SHARES

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