Brew Markets Daily — August 26, 2025

Episode Title: Spectrum Wars: AT&T, EchoStar & Musk plus Figma Falls and Quantum News
Host: Ann Berry
Podcast: Brew Markets
Date: August 26, 2025

Episode Overview

This episode covers key movers and stories from the day’s stock market, focusing on:

• Advances and partnerships in quantum computing
• The high-stakes battle for mobile spectrum, featuring AT&T’s $23B deal with EchoStar and commentary from SpaceX’s Elon Musk
• Figma’s post-IPO “quiet period” and its stock’s subsequent dip
• Major market headlines and the potential for increased US government stakes in defense tech companies

Quantum Computing: AMD & IBM Join Forces

[00:03–03:27]

• Quantum Computing Basics: Ann sets the stage by “jargon busting,” explaining that unlike classical computers, quantum computers can process massive amounts of data simultaneously (like the human brain’s synapses firing).

  • “The possibilities of quantum are huge,” Ann exclaims enthusiastically, emphasizing its potential in drug discovery, logistics, and, importantly, cybersecurity.

• Security Stakes: Ann recounts a conversation with a former NSA deputy director.

  • Notable Quote:
    • “What is the one thing that keeps you up at night? He didn’t miss a beat... quantum computing, because whoever advances there fastest is going to be able to do things ... in cryptology and untangling cybersecurity in a way that we’ve never seen before.” — Ann Berry [02:38]

• Industry News: IBM and Advanced Micro Devices (AMD) announced a partnership to integrate AMD chips with IBM quantum computers, targeting “hybrid” solutions combining present-day quantum capabilities and classical AI. Demo expected later this year.

• Market Reaction: AMD stock up 2%, IBM up modestly.

Spectrum Wars: AT&T, EchoStar, and Musk Enter the Fray

[03:56–11:29]

What Happened:

• AT&T announced it will buy spectrum licenses from EchoStar for $23B in cash, covering more than 400 US markets.

  • Spectrum powers mobile data; it's regulated, finite, and extremely valuable.

• Federal oversight: The FCC under a new administration is reviewing whether companies like EchoStar are making effective use of their allocated spectrum, with an emphasis on rural connectivity.

FCC & SpaceX vs. EchoStar:

• The FCC sent a formal letter to EchoStar questioning if it met build-out requirements for 5G, per Brendan Carr, FCC Chair.

  • “Build out obligations are one of the ways that the FCC can ensure ... Americans, including those living in rural communities, have a fair shot at next generation connectivity.” — Brendan Carr (as quoted) [06:27]

• SpaceX, led by Elon Musk, also lobbied the FCC, claiming EchoStar (owner of Dish) is squatting on spectrum and barely uses the AWS-4 band.

  • Notable Quote from SpaceX’s Letter:
    “Dish network owned by EchoStar barely uses the AWS-4 band ... Dish uses less than 5% of what would be expected from an actual wireless network operator ... EchoStar spectrum is ‘ripe for sharing among next generation satellite systems.’” [07:27]

Market Reaction:

• EchoStar stock skyrocketed 75%; AT&T dropped 1.5%.

  • EchoStar gains cash to cover $26B of debt, potentially transforming its balance sheet.
  • AT&T increases debt (from $10B on hand up to $23B payout); market is wary short-term despite long-term network advantages.
  • “Is the benefit of the growth opportunity here so good that it outweighs the fact that we’re going to see debt tick back on up again?” — Ann Berry [09:36]
  • AT&T reassures investors it will return to targeted debt levels in three years.

• EchoStar, for its part, saw an immediate balance-sheet windfall (“not bad for selling an asset that Elon Musk would say they weren’t using anyway”).

Figma’s “Quiet Period” Ends: What Happened to the Stock?

[11:29–16:00]

• Listener Question: Jared from Orlando asks why Figma’s stock dipped after its quiet period ended.

  • The quiet period is 25–40 days post-IPO in which analysts from underwriting banks can’t publish reports to avoid unfair hype.

• IPO Recap: Figma (digital design software) IPO’d in late July at $33/share, soared to $115 on day one—a huge initial pop.

• After the Quiet Period:

  • Most analysts published neutral ratings (not a “buy” or “sell”), even if some, like Goldman Sachs, wrote positive comments:
    “Figma is well positioned to maintain its industry leadership in digital design, where compelling UI and UX is increasingly viewed as a strategic differentiator.” — Goldman Sachs, as quoted by Ann [13:06]

  • Price targets were significantly below the trading price:

    • JP Morgan: $65,
    • Goldman Sachs: $48,
    • Morgan Stanley: $80.

  • Cautious tone and valuation worries cemented recent weakness—stock is now down 17% since IPO.

  • “These reports are not saying this is a screaming buy ... that’s what hit the Figma stock.” — Ann Berry [14:27]

Rapid Market Headlines and New Government Moves

[16:00–18:03]

• Major moves of the day:

  • S&P 500 and NASDAQ up 0.4%, Dow up 0.33%
  • Eli Lilly’s GLP-1 obesity pill successful in trials; stock popped 4%
  • Constellation Brands (Modelo, Corona) down 3.5% after Bank of America downgrade, with speculation that weight-loss drugs like GLP-1 may further dent alcohol sales

• Policy Watch:

  • US government took a 9.9% equity stake in Intel (covered in yesterday’s episode)
  • Commerce Secretary Howard Lutnick hints at more strategic government investments—in names like Lockheed Martin and Palantir
    • “We would like a piece of Palantir.” — Howard Lutnick, as quoted [16:44]
  • Ann notes these statements sometimes foreshadow real policy changes, so investors should keep an eye out.

Memorable Quotes & Moments

• Enthusiasm for Quantum:
  “The possibilities of quantum are huge.” — Ann Berry [02:10]

• National Security Stakes:
  “What is the one thing that keeps you up at night? ...quantum computing.”—NSA Deputy Director (via Ann Berry) [02:38]

• Spectrum in Focus:
  “Spectrum is gold... it’s a limited resource.” — Ann Berry [04:53], further highlighted by John

• AT&T’s Challenge:
  “Is the benefit of the growth opportunity here so good that it outweighs ... debt tick[ing] back on up again?” — Ann Berry [09:36]

• Figma Neutrality:
  “Most of the research that came out rated Figma stock neutral, which is Wall Street’s way of saying: don’t rush to sell, but don’t rush to buy either.” — Ann Berry [13:34]

• GLP-1 & Alcohol:
  “Perhaps the Eli Lilly story and the Constellation brand story aren’t exclusive.” — John [16:32]

• On Policy Shifts:
  “Sometimes these comments have been precursors to actual action ... always the possibility.” — Ann Berry [17:34]

Timestamps for Key Segments

• Quantum computing & IBM/AMD partnership: 00:03 – 03:27
• Spectrum wars (AT&T, EchoStar, Musk): 03:56 – 11:29
• Figma and the quiet period explained: 11:29 – 16:00
• Market headlines & US government tech investments: 16:00 – 18:03

Summary prepared for listeners and market followers wanting clear, insightful highlights and expert context from Brew Markets Daily, August 26, 2025.