8 Stories We Are Following Today 4-30-25 - Becker Private Equity & Business Podcast

Summary

Becker Private Equity & Business Podcast: Episode Summary
Title: 8 Stories We Are Following Today
Host: Scott Becker
Release Date: April 30, 2025

Introduction

In this special episode of the Becker Private Equity & Business Podcast, host Scott Becker delves into eight pivotal stories currently shaping the business and financial landscapes. Recorded in person at the Becker's Healthcare Annual Meeting, Scott is joined by Jeremy Core, founder and CEO of Executive Podcast Solutions, and Chanel Bunger, a top-tier podcast producer. Their in-depth discussion provides listeners with valuable insights into recent market movements, corporate performances, and economic indicators.

1. China Export Orders Plunge

Timestamp: [02:15]

Scott begins by highlighting the significant decline in China’s export orders, a direct consequence of ongoing tariffs. This downturn marks the first substantial economic impact resulting from the ongoing trade war.

“China has been hit hard by the tariffs so far. Their economy showed its first big signs of damage from the trade war.” — Scott Becker [02:15]

The decline in export orders signals broader concerns about China’s manufacturing sector and its ability to sustain economic growth amidst international trade tensions.

2. Starbucks Shares Drop Over 7%

Timestamp: [04:30]

Next, Scott discusses Starbucks' recent stock performance, which has fallen by more than 7%. The drop reflects investor uncertainty regarding the company's future under the leadership of Brian Niccol.

“Investors are betting on the talents of Brian Niccol to move Starbucks in the right direction. However, same store sales were down about 2%, which is a bad sign.” — Scott Becker [04:30]

Despite an increase in order sizes, the overall decline in same store sales indicates that customers are increasingly opting for cheaper alternatives like Dunkin’ and McDonald's, posing a challenge for Starbucks to maintain its market position.

3. Snapchat’s Stock Decline

Timestamp: [06:45]

Snapchat is another company experiencing a significant stock decline, shedding approximately 13% on the day discussed.

“They met their earnings, but they couldn’t give guidance for next quarter. Whenever a company stops providing guidance, it really scares investors.” — Scott Becker [06:45]

The inability to project future earnings has heightened investor anxiety, contributing to the sharp decline in Snapchat’s stock price.

4. Hims & Hers Surges 23% with Novo Nordisk Deal

Timestamp: [09:20]

In contrast to the previous declines, Hims & Hers saw a remarkable 23% jump following their partnership with Novo Nordisk.

“Hims & Hers jumped on the news that they and some others will be distributing Novo Nordisk’s weight loss and diabetes drugs, such as GLP-1s.” — Scott Becker [09:20]

This collaboration leverages Novo Nordisk’s competitive edge over rivals like Eli Lilly, enhancing Hims & Hers’ market position in the pharmaceutical distribution sector.

5. Market Volatility and Economic Concerns

Timestamp: [11:50]

Scott addresses the current state of the markets, which saw an uptick yesterday but faced significant declines today due to several economic factors.

“The economy contracted for the first time in a few years in the first quarter this year. New jobs added were very low last month, and inflation, while lower, remains hot for the quarter.” — Scott Becker [11:50]

These indicators have fueled investor concerns about the economic trajectory, contributing to the market's volatility and downward trend.

6. Decline in Mergers and Acquisitions Activity in the US

Timestamp: [14:10]

The episode also covers the downturn in mergers and acquisitions (M&A) activity within the United States, contrasting with global trends.

“In the US, M&A activity was really down in the first quarter. People are feeling uncertain and thus being cautious about investing too heavily in big deals.” — Scott Becker [14:10]

This cautious approach among US investors contrasts with increased activity in other parts of the world, reflecting a more conservative investment climate domestically.

7. Amazon and Palantir’s Diverging Performance

Timestamp: [17:05]

Scott compares the performances of Amazon and Palantir Technologies, highlighting their divergent trajectories for the year.

“Amazon is down nearly 16% year to date, performing okay compared to some of the other Magnificent Seven, but still down 15%. On the other hand, Palantir Technologies is up a staggering 53% year to date after being relatively flat for a while.” — Scott Becker [17:05]

While Amazon struggles with negative growth, Palantir's substantial gains underscore its robust market presence and investor confidence.

8. Hertz’s Financial Struggles and Debt Reliance

Timestamp: [19:40]

Lastly, Scott discusses Hertz’s ongoing financial challenges, particularly its reliance on debt financing.

“Hertz dropped 13% yesterday after announcing plans to tap the debt market again. The company already has $86 billion in debt and is seeking an additional $500 million.” — Scott Becker [19:40]

The continued issuance of high-yield junk bonds in December exacerbates concerns about Hertz’s financial stability. Scott emphasizes the precarious nature of heavy debt reliance, stating:

“Companies, countries, and families can all be severely impacted by excessive debt. Debt kills companies, countries, and families.” — Scott Becker [19:40]

Conclusion

Scott Becker wraps up the episode by thanking Jeremy Core, Chanel Bunger, Grace Keller, and the rest of the Executive Podcast Solutions team for their in-person participation. He underscores the importance of staying informed about these key stories to navigate the complex landscape of private equity and business.

“Thank you very much for joining us.” — Scott Becker

This comprehensive overview provides listeners with a clear understanding of the significant developments discussed in this episode of the Becker Private Equity & Business Podcast. From international trade impacts and corporate performances to market dynamics and financial strategies, Scott Becker offers valuable perspectives essential for investors and business enthusiasts alike.

Transcript

Unknown Host (0:00)

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Scott Becker (0:15)

This is Scott Becker with the Becker Private Equity and Business Podcast. This is a special day of recording. We're going to talk to you about eight stories that we're following today. But I get the great pleasure of recording in person at the Becker's Healthcare annual meeting. I'm sitting with Jeremy Core, the founder and CEO of Executive Podcast Solutions, and Chanel Bunger, the the best producer in the business. So for me, it's a special opportunity to visit with our team from Executive Podcast Solutions in person, the best in the business in terms of podcast production, recording and so forth. So, so here are the eight stories that we're following today. First, China export orders plunge. China has been hit hard by the tariffs so far. Their economy showed its first big signs of damage from the trade war. The Wal Journal reported that today. Second, Starbucks is down more than 7% today. Lots of investors are, are sort of betting on the talents of Brian Nicole to move Starbucks in the right direction. In the first quarter, visitors were down, order size was up. Everything's become so expensive there and overall same store sales were down and that's a bad sign. Their comparable same store sales were down about 2% as they say investors or coffee drinkers were going to cheaper alternatives like Dunkin and McDonald's and others. Third, Snapchat's also way down today. Snapchat. You know, I always worry when people in the household are using Snapchat too much. But in any event down 13% or so. They met their earnings, but they said they couldn't give guidance for next quarter. And whenever a company says that they're no longer give guidance, that scares people a great deal. Fourth, hims and hers jumped 23% yesterday. They signed a deal for distribution with Novo Nordisk. Novo Nordisk makes Way Govi, which competes with Manjiro and Ozema Olympic and these other things. But, but the gap that Novo Nordics has compared to Eli Lilly is getting larger and larger. But Hims and hers jumped on the news that they and some others will be distributing Novo Nordex, you know, weight loss, diabetes drugs, GLP1s and and so forth. Fifth, the markets rose yesterday, but they're down significantly today. Some challenging news in the market today. The economy contracted for the first time in a few years in the first quarter this year. Jobs, new jobs added were very low in this last month. Inflation was lower in April, but still hot for the quarter. So a number of things are driving the markets down today as people have concerns about where things are going. Six, mergers and acquisitions activity which so many banks, investors, lawyers, consultants, accounts, what so closely was really down in the first quarter. Throughout the rest of the world it was up. In the US it was down. You know, people just feeling uncertain and so being cautious about investing too hard in big deals. Finally, seventh, we've got one more after seven. Amazon is down nearly 16% year to date. It's performing okay compared to some of the other Magnificent Seven, but still that's, that's down 15% year to date. Palantir Technologies remains hot. It's up 53% year to date. After being relatively flat for a while. It is just, it's just been surging. It's up 53% year to date. Finally, Hertz, Hertz dropped 13% yesterday. Is announced plans to again tap the debt market. It already has 8, 6 billion dollars in debt. It's going to tap the markets for another 500 million. The company also issued 500 million in high yield junk bonds in December. So it's continuing to rely on debt heavily to make its cash flow and operations work and so forth. And it's always scary for companies. We say often debt kills companies, countries and families. Companies, countries and families. That's what we say. Thank you for listening to the Becker Private Equity and Business podcast and thank you again to Jeremy Core and Chanel Bunger for being here in person along with Grace Keller and the rest of their team. Thank you very much for joining us.