Brew Markets: "Petco Woos Pet Parents and The Irony: AI Threat Saves Google’s Chrome"
Date: September 3, 2025
Host: Ann Berry (A)
Co-host/Producer: John Gratto (B)
Episode Overview
In this episode of Brew Markets, Ann Berry and John Gratto dig into the day's most compelling stock stories, including Google's legal victory in keeping its Chrome browser, the evolving pet industry with a focus on Petco's attempted turnaround, and the rise of new stock exchanges in Texas. The show intertwines macro trends, company-specific updates, and musings rooted in both personal and economic insight––with a special focus on how generative AI's rise shifted the competitive (and legal) landscape for Google.
Key Discussion Points & Insights
1. Google's Chrome Victory: Saved by the AI Threat
Timestamps: 00:01–04:21
- Backstory: Alphabet (Google's parent company) stock surged 7% after a court decision allowed Google to retain its Chrome browser, sidestepping the biggest threat from an ongoing Justice Department antitrust suit.
- Context: The antitrust case began in 2020, with prosecutors alleging Google used anticompetitive tactics to dominate U.S. search (90% share), fueled by default agreements that locked out rivals.
- Legal Fallout: A court did rule “Google is a monopolist and has acted as one to maintain its monopoly,” demanding Google end restrictive contracts and share more data. However, the most feared remedy––forcing the sale of Chrome––was avoided.
- Market Impact:
- Chrome's importance: Over 3 billion users, essential for $250B in ad revenue, and a key funnel for Gmail and Google Docs.
- Value estimates for Chrome reach up to $200B.
Memorable Moment & Quote:
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Ann, reading from the legal ruling (03:28):
"The emergence of Gen AI changed the course of this case... Artificial intelligence technologies, particularly generative AI, may yet prove to be game changers. Today, tens of millions of people use Gen AI chatbots like ChatGPT, Perplexity and Claude to gather information they previously sought through Internet search."
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Insight:
- The irony: Google's legal reprieve was justified by the threat that generative AI will erode their search dominance.
- Ann’s perspective (04:00):
“Google shareholders should take the victory lap today... but remember this win comes from the threat that AI poses. It's a double-edged sword.”
2. Petco and the Booming Pet Industry
Timestamps: 05:05–14:26
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Macro Overview:
- 62% of U.S. households own pets; Americans will spend over $157 billion on pets this year (food, vet, toys, accessories).
- Cultural shift to "pet parents" and the humanization of animals is driving industry growth.
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Spending Comparison:
- Average spend: $22,000 per child per year vs. $2,000 per pet.
- Ann: “The gap is closing... Ten years ago, no one was even doing that comparison.” (06:56)
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Petco’s Recent Struggles and Efforts:
- Petco's stock (WOOF) down 87% since COVID peak, despite increased pet spending.
- The company’s missteps: Over-invested in premium/“bougie” health and wellness products, removing lower-cost/budget options just as post-pandemic inflation hit consumers.
- John: “At the time they went bougie.” (07:56)
- Ann: “They went too bougie too quickly.” (08:18)
- Shift to reintroduce budget options and focus on emotional connection with customers.
- Petco’s efforts to boost in-store experience: clean layouts, curated events (pet food tastings, ‘Meet the Critters,’ hamster races, bearded dragon scavenger hunt).
Notable Quotes:
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Petco CEO Joel Anderson (clip, 09:18):
"It quickly became obvious we needed to bring back a more emotional element to how we go to market and connect with pet parents."
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Ann (10:53):
“There’s not just the hamster wheel event, there’s a Dragons Are Real event... drop into Petco for a fun bearded dragon scavenger hunt. Meet them and bring one home.”
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Veterinary Services Trend:
- Ten years ago, no in-store vets; now roughly 300 store clinics with plans to double.
- Integration of vet services and retail cited as a data gold mine—enabling personalized upselling (food, health, birthday reminders).
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Financials:
- Despite a 1.4% drop in same store sales, Petco made a profit this quarter, quadrupled adjusted EBITDA, and raised its 2025 outlook.
3. The Rise of Texas Stock Exchanges
Timestamps: 14:27–17:43
- Listener Q&A:
- Question from Jules in Columbus about reports of New York Stock Exchange listings in Texas.
- Facts:
- NYSE has launched a Dallas location, reflecting Texas's outsized importance (home to more NYSE-listed companies than any state; $3.7T in market cap).
- The Texas Stock Exchange, backed by BlackRock, Citadel, Charles Schwab, is rolling out as a tech-forward, low-fee competitor aiming to lure IPOs and public companies.
- Nasdaq is also opening a Dallas office.
- Texas’s economy—if a country, 8th in the world—and proximity to southern capital pools is leveraging the trend of corporate relocations and financial decentralization from New York.
Notable Quote:
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Ann (15:52):
“If Canada and Australia and Brazil can have their own stock exchanges, then why can’t Texas? Because its GDP is bigger than any of those nations.”
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AT&T, long a NYSE staple, is cited as a founding member of the NYSE’s Dallas outpost—good marketing and a nod to its 24,000 Texas employees.
4. Rapid Market Wrap
Timestamps: 17:54–19:16
- Market Summary:
- S&P up 0.5%, Nasdaq up 1%, Dow flat.
- Macy’s stock jumped up to 20% after beating earnings and showing the first positive same-store sales in 12 quarters.
- Campbell’s Soup beat profit forecasts as Americans cook at home more.
- Ann’s Reaction:
- Surprised by Macy’s comeback: “I’ve been deeply cynical on that business’s ability to get the engine humming again... But they’re figuring out something.”
5. Netflix Moves Into Viral, Short-Form Content
Timestamps: 19:16–21:19
- Netflix Innovation:
- Announcement: Update to ‘moments’ feature allows viewers to clip and share segments of shows, emulating TikTok/Instagram virality.
- Part of broader efforts: ad-supported subscriptions, password sharing crackdown, and a redesigned app experience.
- Ann’s Take:
“We’re seeing this continued convergence of the streamers, the social platforms, and traditional media trying to go digital... The markets are going to keep looking for signs of where the puck is heading.” (20:55)
Memorable Quotes (with Timestamps)
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Ann on AI's role in saving Chrome:
“The emergence of Gen AI changed the course of this case...” (03:28)
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John on Petco’s missteps:
“At the time they went bougie.” (07:56)
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Petco CEO Joel Anderson on emotional retail:
“We needed to bring back a more emotional element to how we go to market and connect with pet parents.” (09:18)
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Ann on Texas’ economic might:
“If Canada and Australia and Brazil can have their own stock exchanges, then why can’t Texas?” (15:52)
Timestamps to Key Segments
- Google’s Chrome & AI Antitrust Ruling: 00:01–04:21
- Pet Industry Stats & Petco Woes: 05:05–09:08
- Petco's Turnaround Tactics & Emotional Retail: 09:08–14:26
- Texas Stock Exchange Explainer: 14:27–17:43
- Market Summary (including Macy’s & Campbell’s): 17:54–19:16
- Netflix’s Viral Content Strategy: 19:16–21:19
Final Takeaways
- The episode skillfully ties together seemingly disparate trends—antitrust and generative AI, pet industry humanization, regional finance hubs, and the evolution of digital media—drawing broader lessons about market adaptation and the unforeseen consequences of technology and culture on business.
- The conversational, slightly playful tone (pets, retro music, quirky in-store events) balances deep dives into financial and strategic subjects, making for both informative and relatable listening.
For Listeners Looking to Dive Deeper...
Check out the full episode for more color commentary, anecdotes (like Ann's first visit to a Petco), and evolving sector analysis.
