Podcast Summary: Brew Markets

Episode: "NVIDIA Insists It’s Not Enron & Smucker’s Billion-Dollar Sandwich"
Date: November 25, 2025
Host: Ann Berry
Producer/Co-host: John Cotto

Episode Theme

This episode of Brew Markets dives into the day’s standout stock market stories: NVIDIA’s pushback against Enron comparisons, Smucker’s surprising billion-dollar frozen sandwich business, and the latest on Dick’s Sporting Goods’ Footlocker acquisition. Plus, a quick tour through major earnings movers, including Abercrombie & Fitch and a timely lawsuit at TSMC. Ann Berry and John Cotto approach the topics with a conversational, insightful tone, making sense of market implications for investors.

Key Discussion Points & Insights

1. NVIDIA’s Enron Comparison & Market Jitters

(02:00-04:50)

• Background: A surprising headline in Barron's sparked market nerves: “Nvidia says It’s Not Enron in Private Memo.”
  • Context given on Enron's historic fraud (collapsed in 2001, led to Sarbanes-Oxley Act).
• Trigger: Michael Burry, famed for predicting the 2008 housing market crash, questioned Nvidia’s accounting:
  • Burry suggested Nvidia and clients are overstating useful GPU life; expects 2-3 years, not 6.
  • If companies under-depreciate assets, it could overstate their value.
• NVIDIA’s Response:
  • Memo to Wall Street analysts:

    “Nvidia does not resemble historical accounting frauds because Nvidia's underlying business is economically sound. Our reporting is complete and transparent and we care about our reputation for integrity.” – Nvidia Memo (03:45)

  • On strategic investments: These account for a small slice of revenue. Companies backed by Nvidia mainly earn from third parties, not Nvidia itself.
• Burry’s Retort:

  "I am not claiming Nvidia is Enron. It is clearly Cisco." (03:53)

  • Cisco is used as a dot-com cautionary tale—no fraud, but suffered a historic stock tumble after the tech bubble burst.
• Industry Ripples:
  • Meta is reportedly negotiating massive Google TPU orders (potential long-term supplier shift).
  • Nvidia stock slid 4% on competitive news.

2. Smucker's: More Than Jam — The Uncrustables Empire

(05:25-11:35)

• Company Overview:
  • Market cap: $11 billion (smaller than General Mills and Kraft Heinz).
  • Family-run since 1897; Mark Smucker is current CEO.
  • Five divisions: coffee, frozen handheld & spreads, pet food, sweet baked snacks (Hostess), and international.
• Earnings Insights:
  • Net sales up 3% to $2.3B; coffee led the way, helped by price hikes due to tariffs.
  • Costs rose 5%, gross profit decreased 2%. Guidance for FY26 was narrowed, not lowered.
  • Dividends up for consecutive years, but share price still down for the year.
• Coffee Division:
  • Brands: Folgers, Dunkin’. Tariffs pressured profits, but recent tariff relief from Brazil will lessen future price hikes.
• Pet Food:
  • Milk Bone (dog treats) and Meow Mix. New "Peanut Buttery Bites" (mixing Milk Bone with Jif peanut butter) are a hit.

    "They are making pet food snacks that sound more delicious than even some human snacks." – Ann Berry (09:11)

• Uncrustables:
  • The frozen PB&J sandwich is unexpectedly huge: On track to top $1B sales this year.

    "Executives expect Uncrustable sales to accelerate to a double-digit growth rate... and to top $1 billion in sales for a frozen handheld sandwich." – John (10:06)

  • Expanding into convenience stores, adding protein varieties.
  • NFL players and podcasts have even popularized them.
• Trader Joe’s Lawsuit:
  • Smucker’s suing Trader Joe’s over "distinct peripheral undulated crimping" (pie-like sandwich design).

    "Sort of poetic description. Let's say that again. Distinct peripheral undulated crimping." – Ann (10:24)

  • Smucker’s claims over $1B invested in Uncrustables’ development and brand equity.
• Investor Takeaways:
  • Shares down 3% today, 7% on the year—legacy brands aren't benefiting from modern "bougie" food trends.

3. Dick’s Sporting Goods & the Footlocker Acquisition

(12:43-16:59)

• Recent Deal:
  • Dick’s ($19B market cap, 700+ stores) bought Footlocker ($1B per quarter revenue, 2,400 stores internationally) for $2.5B.
• Earnings Review:
  • Dick's: Quarterly revenue $4.1B (1/4 from Footlocker), gross profit $1.4B. EPS $2.78 (beat estimates). Same-store sales +5.7%.
  • Guidance raised for comparable sales.
• Merger Focus:
  • Ed Stack, Executive Chairman:

    “Expands our reach and creates a global platform at the intersection of sport and culture.” (14:16)

• Integration Strategies:
  • “Cleaning out the garage”:
    • Closing underperforming stores, slashing inventory.
    • In 11 Footlocker stores: reduced products by 20%, revamped the iconic “shoe wall.”

      “If you'd walk into a Footlocker store before you looked at the footwear wall, it was nothing but a run on sentence...” – Ed Stack via John (15:51)

  • Ann Berry’s take:

    “Doesn't this seem a bit obvious...the first thing you do is go and walk around, take stock (pun intended) of what's going on visually...I wasn't really convinced by this to be totally honest.” (16:05)

  • Dick’s shares down 7.5% YTD; mixed market reaction to deal.

    “Clearly the market was saying, oh, big sigh of relief for Footlocker shareholders... But for Dick's not so convinced that this is going to be a good outcome.” – Ann (16:59)

4. Quick Headlines: Abercrombie’s Comeback & a TSMC Lawsuit

(18:00-20:36)

Abercrombie & Fitch

• "Return of the preppy brand": Shares surged 30% on a strong quarter.
• Hollister, not Abercrombie, is driving growth: +16% sales, while Abercrombie’s namesake brand is flat.
  • CEO Fran Horowitz credited for turnaround.

    “This headline was incredible. Flashed across CNBC, Abercrombie shares soar 30%...” – Ann (18:35)

TSMC v. Intel

• TSMC (Taiwan Semiconductor) sued ex-SVP Wei Yen Lo, accusing him of leaking secrets to Intel.
• Intel CEO Lip Bhutan denied wrongdoing, stressed respect for IP rights.
• TSMC shares down 1%, Intel flat.

  “This sort of industrial espionage… is really intriguing.” – Ann (20:36)

Notable Quotes & Memorable Moments

• Ann Berry on Migration to American Culture:

  "I discovered this thing called Twinkie eating competitions. And that to me was as eye opening as keg stands..." (06:40)

• On Smucker’s Lawsuit:

  "Sort of poetic description. Let's say that again. Distinct peripheral undulated crimping." (10:24)

• On Uncrustables' Growth:

  "Executives expect uncrustable sales to accelerate to a double digit growth rate for the remainder of the fiscal year and to top $1 billion in sales for a frozen handheld sandwich. That's amazing." – Ann (10:06)

• Ann on Dick’s/Footlocker Integration:

  "Doesn't this seem a bit obvious that you'd be in a footlocker store... I wasn't really convinced by this, to be totally honest." (16:05)

• John on Abercrombie’s Nostalgia:

  "When you say Abercrombie. Yes, I can smell that store." (19:38)

• Ann on Market Drama:

  "Never a dull moment in food. There's always something going on." (10:31)
  "This sort of industrial espionage… is really intriguing." (20:36)

Timestamps for Major Segments

• NVIDIA vs. Enron narrative: 02:00–04:50
• Smucker’s, Uncrustables, and lawsuit: 05:25–11:35
• Dick’s and Footlocker Acquisition: 12:43–16:59
• Abercrombie & Fitch resurgence: 18:00–19:44
• TSMC lawsuit against Intel: 19:44–20:36

Conclusion

This episode of Brew Markets is packed with sharp analysis and real-talk on big market movers, from tech’s existential worries (NVIDIA’s valuation drama) to comfort-food surprises (Smucker’s billion-dollar Uncrustables), retail transformations, and spicy lawsuits in both consumer goods and semiconductors. Ann and John keep it fast-paced and candid, layering business news with context, investor implications, wit, and memorable observations—making even frozen sandwiches a stock market headline worth following.