Brew Markets Daily (Morning Brew)

Episode: Activist Investors Cruise Into Travel Stocks & Snack Shares Sink
Date: February 17, 2026
Host: Ann Berry
Summary by Brew Markets Podcast Summarizer

Main Theme

This episode dives into the latest moves by activist investors in travel stocks (notably Norwegian Cruise Line and TripAdvisor), scrutinizes Medtronic’s AI surge and diabetes spin-out, and unpacks why consumers are ditching snacks—dragging down General Mills and Campbell’s. The team also covers the latest on media M&A drama and evolving US policies around prediction markets.

Key Discussion Points & Insights

1. Activist Investors Make Waves in Travel

(Starts at 00:32)

• Highlight: Two major activist funds (Elliott Investment Management and Starboard Value) made strategic plays in travel sector stocks, leveraging company turmoil and missed earnings to attempt shifts in corporate direction.

Norwegian Cruise Line (NCLH):

• Elliott builds a 10% stake right after CEO departure; new CEO hails from Subway Restaurants with no cruise experience (01:18)
• Norwegian, fourth-largest global cruise line, has underperformed S&P 500 peers, down 20% YOY versus competitors up over 20%
  • "Despite the voracious demand for cruise vacations... Norwegian's stock price is one of the worst performers in the S&P 500 over the past year."
    — Ann Barry (01:56)
• Elliott’s thesis: Expand private island portfolio to catch up with Carnival and Royal Caribbean and attract more hybrid land/sea travelers

TripAdvisor (TRIP):

• Starboard Value pushes for board control, as TripAdvisor misses earnings and faces AI-driven stock pressure (03:43)
• Owns Viator (activity booking) and The Fork (restaurant bookings); Starboard wants TRIP to sell both The Fork and the review site, focus on Viator
• Activists pounce during weak earnings and sector disruption, pressuring management for operational change
  • "The moment Starboard is choosing to make its recommendations is not an accident—software stocks like TripAdvisor have been hammered by the threat of AI."
    — Ann Barry (04:35)

Market Reaction:

• NCLH up ~13% and TRIP up ~12% on the day as markets cheer the activist pressure

2. Medtronic’s AI Pivot & Diabetes Business Spin-Out

(Starts at 06:42)

• Overview: Medtronic, a $123B med-tech giant, reported Q3 earnings. Shares fell over 3% despite beating revenue forecasts, disappointing with flat guidance.

Core Businesses:

• Cardiovascular: $3.5B quarter, up 11% YOY; Cardiac ablation solutions grew 80%, driven by effective afib treatment rollouts since 2024 (08:18)
• Neuroscience: Up 2.5% YOY
• Medical Surgical: $2.2B, up 2.7% YOY
• Diabetes: Up 8.3% YOY; continuous glucose monitors and insulin pumps central to division

Strategic Moves:

• Spinning off Diabetes Division as MiniMed (09:52)

  • "Once that business goes away, it'll give us a natural lift from a gross margin perspective."
    — John Croteau, quoting Medtronic CFO (10:08)
  • S-1 filed; IPO expected within months; MiniMed will be California-based and consumer-focused

• AI Investments & M&A:

  • Acquisition of Cathworks (3D angiography tech) for ~$500M, aiming for less invasive diagnostic solutions (11:37)
  • Medtronic also moving into heart valve treatment devices via Antares purchase (13:18)
  • FDA clearances for AI-driven surgery robots (Hugo, Stealth Axis) (15:04)

Shareholder Reflections:

• Ann Berry admits disappointment as a Medtronic investor: "Flat is the new down at the moment... my thesis when I bought Medtronic two or three years ago was that [AI adoption] will come... it hasn't happened yet. So I'm a disappointed shareholder as of now." (14:10)

Corporate Structure Quirk:

• Medtronic’s "tax inversion" to Ireland post-Covidien acquisition lowers its effective corporate tax, while remaining operationally US-centered (16:41)
  • John Croteau: "Even though its main operations... are in the United States, this $43B deal brought Medtronic headquarters to Ireland." (16:41)

3. Media M&A Drama: Warner Bros. Discovery, Paramount, Netflix

(Starts at 19:40)

• Ongoing acquisition saga: Paramount and Skydance given 7 days by Netflix for a "best and final" offer on Warner Bros. Discovery (WBD)
  • Netflix described Paramount’s bid as "antics" (20:35)
  • Market welcomes deal drama: "Shares in Warner Brothers Discovery were up 3.5% today. Shows that the market likes a bidding war to get the stock price moving." — Ann Barry (22:27)
  • Legal/strategic angle: Netflix’s move potentially heads off litigation—"a CYA down the road" (21:40)

4. Snack Stocks Suffer: General Mills & Campbell’s

(Starts at 22:43)

• General Mills (GIS): Shares down 8% after lowering FY26 sales outlook; CEO says snacks, cereal, dog food hit hardest—attributed to:

  • Higher inflation, reduced food aid (SNAP) benefits (23:02)
  • 18 states restrict SNAP purchases, especially on soda and processed/junk foods
  • "General Mills... lowered prices across roughly two thirds of its North American retail business in the face of shaky consumer sentiment."
    — Ann Barry (23:18)

• Campbell's (CPB): Shares down 7% for similar reasons—reduced SNAP impact and weak consumer spend (24:01)

• Pepsi also cuts prices (up to 15% on key snacks) amid sagging demand

5. Prediction Markets: Federal vs. State Regulation

(Starts at 24:21)

• CFTC asserts federal authority over prediction markets (DraftKings, FanDuel, Robinhood, Polymarket, Kalshi)
  • CFTC Chairman Michael Selig: "The CFTC will no longer sit idly by while overzealous state governments undermine the agency's exclusive jurisdiction..." (24:47)
  • Internal GOP split: Donald Trump Jr. is an investor in prediction markets; Utah Governor Spencer Cox trolls CFTC, quipping:
    "I don't remember the CFTC having authority over the, quote, derivative market of LeBron James rebounds." (25:50)

6. Quick Hits & Notable Quotes

• Ann Barry on activist investors:
  "Elliott Management and Starboard clearly share our view that consumer demand for experiences is ripe for optimization—whether in cruising at Norwegian or in touring through Viator." (05:01)

• John Croteau, recapping the market:
  "The S&P 500, the NASDAQ and the Dow all finished up nearly a tenth of a percent today." (19:49)

• On Medtronic’s robotic surgery future:
  "FDA approvals, but you have to wait to see how these are tested and adopted and rolled out." — John Croteau (15:04)

Timestamps for Key Segments

• Activist Investor Moves in Travel: 00:32 – 06:26
• Medtronic Earnings, AI Focus & Spin-Out: 06:42 – 19:11
• Media M&A: Warner Bros., Paramount, Netflix: 19:40 – 22:43
• Big Food & Snack Stocks Slide: 22:43 – 24:21
• Prediction Markets – State vs. Federal: 24:21 – 26:04

Memorable Moments

• Ann Barry on activist impact on stocks:
  "Signs that the market likes it when these activists rattle their sabers and force management teams to make some change. Fascinating to see how this pans out. We're going to keep on watching." (05:22)

• On Medtronic’s spin-out brand name: "Every time I see MiniMed, I think of Mini Me, the Austin Powers... The punchline." (10:37)

• Utah Governor Spencer Cox's viral quote:
  "I don't remember the CFTC having authority over the... derivative market of LeBron James rebounds." (25:50)

Tone and Language

Hosts deliver crisp, humorous, and savvy market analysis, blending deep investing expertise with an accessible, conversational style. Financial and business jargon is routinely explained, and the show’s tone oscillates between dry wit (pop culture references) and sharp market commentary.

Useful For:
Anyone seeking a digest of the day’s most important stock news, with special emphasis on how activism, earnings, AI, and shifting consumer trends are changing the investing landscape.