Jul 05Β β’Β 6 min read
ποΈ Breaking up pays
July 5, 2026 ποΈ MRKTcapBrought to you by
π₯³ Happy Sunday. β πΊ why an old media giant is breaking itself in pieces βοΈ how one AI bill turned into a brand new business idea β‘ why one car company beat expectations and still got dragged Plus, the nicotine pouch story that went from health claim to Washington lunch table drama. β Market Crowdβ *As of market close on Thursday, July 2nd. Pre-Market Playβ
πΊ Comcast and NBCUniversal are splitting up...And Wall Street just fell in love with the idea. Comcast (CMCSA) just announced it's spinning NBCUniversal and Sky off into their own company on the stock market, separate from the cable and internet side of the business. CMCSA jumped 23% on the announcement. Makes sense when you know CMCSA had dropped 30% over the past year, as streaming rivals kept eating into cable TV subscribers. Splitting them up gives each side a cleaner story for investors, and keeps cable from getting dragged down by the streaming wars. The deal closes in about a year, and Comcast shareholders walk away with shares in both companies. Leadership is getting reshuffled too. Comcast's co-CEO Mike Cavanagh is sliding over to run NBCUniversal, while former CFO Michael Angelakis becomes the new Comcast CEO. Comcast keeps up to 19.9% of NBCUniversal for about a year, then sells that piece. And this isn't even their first spinoff in 2026. Earlier this year, they cut loose their cable TV channels, including CNBC, into Versant Media (VSNT). Charter Communications (CHTR) jumped 10% on the same news, with investors already sniffing out a possible Comcast-Charter cable merger. Roberts shut it down fast: βAbsolutely not.β Big picture: Paramount and Warner Bros. Discovery (WBD) just won DOJ approval for a $110 billion mega-merger, and Fox agreed to buy Roku for $22 billion. Old-school media is going through a full identity crisis. β βοΈ Sitting on $145 billion worth of servers...Zuck just figured out they're actually a product. Meta (META) is building a cloud business to sell its unused AI computing power to outside customers. The company's been pouring $145 billion this year into data centers and the chips needed to run AI at scale. Now it wants to rent out what it's not using. Meta is still deciding whether it'll sell access to its AI models or just raw computing power, but either way, investors liked it. META went up 10% on the news. The competition felt it immediately. CoreWeave (CRWV), which already does this for a living, sank 13%. Ouch. Nebius Group (NBIS), another cloud player, fell 15%. Meta would be jumping into a market dominated by Amazon, Microsoft, and Google, the three names that have been printing money from cloud services while Meta spent billions trying to make AI work. Zuckerberg had been telegraphing this for months. βIt's definitely on the table,β he told shareholders in May, when asked about selling excess compute. And there's a playbook to follow: Elon Musk's SpaceX started selling its leftover computing capacity this year. Anthropic agreed to pay $1.25 billion per month for it. Google signed on for $920 million a month. Not bad for a side business. β β‘ Tesla came correct...And Wall Street still had notes. Tesla (TSLA) delivered 480,126 vehicles in Q2. That's about 74,000 more than analysts expected and a 25% jump from the same time last year. That's coming off two straight years of declining annual sales. Quite a comeback... but not the stock market kind. TSLA still fell about 3% on the day those numbers landed. And yeah, context matters here... Tesla CEO Elon Musk's political moves turned off buyers in the U.S. The federal EV (electric vehicle) tax credit is gone. Chinese automakers like BYD keep releasing cheaper, tech-packed cars. And American buyers are shifting to hybrids over fully electric. That's a lot of open wounds for one strong delivery quarter to close. The European sales boost this quarter came partly from gas prices spiking during the Iran war (which pushed more buyers toward electric). With a truce now in place and oil near pre-war levels, that lift may not carry into Q3. Tesla's Energy division also had a strong quarter, deploying 13.5 GWh of battery storage versus 9.6 GWh a year ago. β π« TMYK When implied volatility drops sharply right after an earnings report, traders call it ______. Click your answer below: Gimme some mo' πΎ Three chip stocks just ran the table β β β β π€³πΎ Let me check my palm pilot
Monday 7/6: None
Market Outlook Data provided by Swingset. Trend of the Week Procter & Gamble (PG) has a trend of going up over the next week. β
To wealth in every sense of the word, Tela Holcomb
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