M360 Roundup - Volume 86
May 12th - 16th, 2025
Cole LaCour
About 92% of S&P 500 companies have reported Q1 results, with 78% beating earnings estimates, pushing projected earnings growth to 13%—up from 7% in March
Despite downward revisions, S&P 500 earnings are still expected to grow 9% in 2025, supported by easing trade tensions and steady U.S. economic activity
The S&P 500 is up 1.95%, the Nasdaq is up 2.37%, and the Dow Industrials is up 1.05% WTD
The 10-Yr U.S. Treasury yield has increased +0.022% to a current yield of 4.422%, whereas the 30-Yr U.S. Treasury yield increased +0.053% to a current yield of 4.889%
Crude oil prices increased 0.70% to a current $61.82/bbl while bitcoin decreased 0.07% to a current $103,964.40/coin
Despite builders offering discounted mortgages and incentives, first-time home buyers remain largely priced out of the market due to high rates, rising home prices, and debt burdens—posing a growing risk to homebuilders reliant on this segment [WSJ]
UnitedHealth’s sharp decline appears driven by its own aggressive growth, regulatory exposure, and challenges within Optum, suggesting its blowup is more isolated than investors feared—despite broader medical cost pressures affecting the industry [WSJ]
Trump’s tough talk on drug prices may mirror his trade tactics—more bark than bite—with limited policy detail and likely negotiated concessions, making beaten-down pharma stocks potentially attractive for long-term investors despite ongoing regulatory pressure [WSJ]
As luxury sales slump in China and the U.S., brands are struggling to find new growth in markets like India, where cultural preferences, limited infrastructure, and high import taxes hinder local demand despite a large population and growing economy [WSJ]
M&A activity continues to remain mixed
Coinbase agreed to acquire crypto derivatives exchange Deribit for $2.9B
Real estate analytics firm CoStar agreed to acquire real estate portal Domain Holdings Australia at a $1.9B valuation
Japanese motor manufacturer Nidec withdrew its $1.8B hostile tender offer for machine tool maker Makino Milling Machine after facing strong resistance
UK engineering firm Smiths Group is pressing ahead with plans to sell its $1.3B electrical connectors unit in first step towards a break-up
French utilities Veolia will acquire the remaining 30% stake in its Water Technologies and Solutions unit from Canada's CDPQ for $1.75B
PE firm CVC is exploring an $8B take-private of Swiss duty-free retailer Avolta
Infrastructure investor I Squared Capital agreed to acquire a majority stake in the Matterhorn Express Pipeline alongside partners from Ridgemont and Devon at a ~$5B valuation, including debt
DoorDash agreed to acquire UK-based food-delivery platform Deliveroo for $3.9B cash, a 29% premium
DoorDash will also acquire hospitality software company SevenRooms for $1.2B cash
Japanese drugmaker Shionogi plans to acquire Torii Pharmaceutical for ~$1B via a tender offer and stake purchase from Japan Tobacco, which owns ~53%
Recent developments across four key industries highlight:
Energy & Natural Resources
NRG Energy is acquiring 18 natural-gas power plants from LS Power for $12 billion to double its generation capacity amid surging AI-driven electricity demand, boosting its presence in Texas and the East Coast and sending its stock up 26% [WSJ]
Eni is in exclusive talks to sell a 20% stake in its Plenitude low-carbon unit to Ares for up to €2.04 billion, valuing the business between €9.8 and €10.2 billion, following a competitive selection process [WSJ]
The IEA raised its global oil demand forecast due to lower prices and softer tariff impacts, now expecting 741,000 barrels per day growth in 2024 and a supply surplus in 2025 as production outpaces demand [WSJ]
Technology, Media, & Telecommunications
OpenAI has launched a research preview of Codex, a new AI coding agent built on its codex-1 model, designed to autonomously handle software engineering tasks and compete in the rapidly growing AI coding market [WSJ]
Apple is partnering with brain-interface startup Synchron to enable iPhone and device control via neural signals, aiming to enhance accessibility for people with disabilities and laying groundwork for broader brain-computer integration as the technology matures [WSJ]
Healthcare & Life Sciences
Novo Nordisk CEO Lars Fruergaard Jorgensen is stepping down amid shareholder pressure, market challenges, and a sharp stock decline, as the company loses ground to Eli Lilly in the weight-loss drug market [WSJ]
The House Judiciary Committee is investigating claims from a former Pfizer scientist, relayed by GSK, alleging Pfizer deliberately delayed its COVID-19 vaccine testing to avoid influencing the 2020 U.S. election—allegations Pfizer denies [WSJ]
Financial Services
In Q1 2025, Berkshire Hathaway was a net seller of stocks, cutting financial holdings like Citigroup and Bank of America, doubling its stake in Constellation Brands, holding steady on Apple, and raising its cash reserves to a record $333 billion [WSJ]
Walmart’s decision to raise prices due to tariffs signals broader inflation ahead, with economists warning of rising consumer costs as importers and manufacturers face growing pressure from tariffs and currency shifts [WSJ]