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Finance
February 11, 2025

Starbucks faces the heat

Hi Enthusiast,

We couldn’t dough-nut mention this: a baby was just born at a Krispy Kreme DNUT $8.95 (-2.32%), making history as the first to have the iconic donut shop listed as their birthplace. The Alabama location sweetened the deal by offering to host the child’s birthday parties every year—practically guaranteeing playground popularity.

Meanwhile, the Nasdaq rebounded 2% yesterday, bouncing back from Monday’s DeepSeek-induced panic as investors seized the dip. Today, all eyes are on the Fed, which is expected to keep interest rates unchanged, along with earnings reports from heavyweights like Microsoft MSFT $412.51 (-0.98%), Meta META $701.59 (1.16%), and Tesla TSLA $389.01 (-5.13%).

Starbucks Hopes New CEO Can Steer a Comeback

Bitter brew… Starbucks SBUX $108.18 (0.46%) is struggling to regain its former buzz, reporting a 23% drop in profit last quarter and marking its fourth consecutive quarter of declining same-store sales. Despite these setbacks, its stock edged up after surpassing investors’ low expectations. The coffee giant has faced backlash over long wait times as baristas juggle an influx of complex mobile orders, leading to widespread employee strikes last year. Now, Starbucks is banking on new CEO Brian Niccol—formerly of Chipotle CMG $59.78 (-0.02%)—to turn things around.

Brewing changes… Since taking over in September, Niccol has been working on a revival plan, though results have yet to materialize. Analysts expect a noticeable shift within a few quarters, not years. To bring back its signature coffeehouse experience, Starbucks has rolled out new initiatives, including handwritten names on cups, the return of self-serve condiment bars, free refills on select drinks, and no extra charge for alternative milks. The company also introduced a "Coffeehouse Code of Conduct," requiring non-paying visitors to make a purchase to stay.

Espresso overhaul… Niccol is bringing in two former Taco Bell YUM $131.50 (0.75%) executives to help revamp operations, with potential layoffs looming in March. His leadership track record is strong—he led Chipotle to 7x profits and previously revitalized Taco Bell. Starbucks is betting big on him, offering a $96M compensation package—far exceeding that of his predecessor—along with the perk of working remotely from California while commuting to Seattle via private jet. But just like an overpriced macchiato, he’ll have to prove he’s worth the investment.

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America's top homebuilder invests in "off-market" disruptor

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Where traditional homes take over 7 months to build, BOXABL factories can mass produce their signature Casita home in nearly four hours, plumbing, electrical, HVAC, and all. 190,000+ potential buyers already reserved one1 and they’re just getting started.

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Crypto Moves in Lockstep with Stocks as Traders Brace for Fed Decision

Following the leader… This week, crypto prices largely echoed stock market trends as investors reacted to the DeepSeek-driven market shake-up and speculation that the Fed will hold interest rates steady. The CoinDesk 20 index—tracking major cryptocurrencies like Bitcoin BTC $100,789.27 (8.54%), Ethereum ETH $2,803.84 (14.22%), and XRP XRP $2.72 (26.75%)—dipped over the weekend before making a partial recovery Monday, mirroring the S&P 500’s 1% gain after its own early-week slide.

Risk-on, risk-off… Bitcoin has increasingly moved in tandem with tech stocks, a trend solidified by its record-high correlation with the Nasdaq last weekend. While crypto often reacts to industry-specific events like Bitcoin halvings, broader economic signals—including Fed decisions and labor market reports—have also played a growing role in price movements. Even seemingly unrelated news, like DeepSeek’s AI debut, has sent ripples through the digital asset space.

A shifting narrative… Bitcoin’s $2T market cap and liquidity have fueled its reputation as "digital gold," but its stock-like behavior suggests it may still be more of a speculative asset than a true hedge. The line between crypto and traditional finance is blurring further as major institutional players like BlackRock BLK $1,023.75 (-5.76%) and MicroStrategy MSTR $348.99 (3.70%) deepen their crypto investments.

Quick Signal:
  • GM GM $49.08 (-3.17%) saw its shares drop 9% despite posting strong earnings, as investors grow concerned about potential tariffs on imports from Mexico, where 900,000 GM vehicles were produced last year.
  • X announced a partnership with Visa V $346.01 (1.18%) to enable peer-to-peer payments and transfers through its upcoming financial platform, X Money, set to launch this year.
  • Google GOOGL $203.55 (-1.37%) revealed it would rename "Gulf of Mexico" to "Gulf of America" on Google Maps following an executive order from Trump. The company also reportedly reclassified the U.S. as a “sensitive country,” placing it alongside China and Russia.
  • Boeing BA $177.17 (-0.35%) marked its sixth consecutive year in the red, losing roughly $12 billion in 2024. However, shares surged after the company announced it would ramp up production.

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Boxabl baby box

BOXABL Announces New $20,000 House

When the biggest names in your industry take an interest, you know you're onto something.

That's the story with BOXABL. They're bringing assembly lines to home construction, gaining the attention of investors like D.R. Horton. Where traditional homes take 7+ months to build, BOXABL is capable of producing their signature “Casita” in 4 hours.And they’re just getting started. BOXABL just announced a new $20,000 housing unit called “Baby Box”. It’s a turn-key home designed for affordability and versatility, with applications spanning workforce accommodations to tiny homes.

Now, everyday investors can join them too. When BOXABL last opened a Reg A investment opportunity, they maxed out the $75M regulatory limit. BOXABL believes their new $20,000 house is the key to unlocking even greater potential.

Become an investor today.1

Advertiser's disclosures:

¹ The minimum investment is $1,000. This is a paid advertisement for the Boxabl Inc. Regulation A offering. Please read the offering circular and related risks at StartEngine’s Boxabl Website.

Investing in private company securities is not suitable for all investors because it is highly speculative and involves a high degree of risk. It should only be considered a long-term investment. You must be prepared to withstand a total loss of your investment. Private company securities are also highly illiquid, and there is no guarantee that a market will develop for such securities.

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