Brew Markets — January 8, 2026

Episode: The Apple Card Breakup & Beer: Don’t Call it a Comeback
Host: Ann Berry
Summary by Section, Notable Quotes, and Timestamps

Main Theme & Purpose

This episode unpacks three standout stock market stories:

1. The Apple Card's transition from Goldman Sachs to JP Morgan and its broader significance in banking and consumer finance.
2. Constellation Brands’ (parent of Corona and Modelo) earnings—exploring if beer is truly making a comeback and how beverage trends are shifting.
3. Alphabet (Google’s parent company) overtaking Apple in market cap, plus real-world advances in AI for consumers.

Host Ann Berry, together with producer John, brings context and insight, spotlighting underlying market strategies, earnings nuances, and how macro trends—like tariffs, cultural shifts, and technology—are moving major companies and sectors.

1. The Apple Card Breakup: Goldman Sachs Hands Off to JP Morgan

[00:01 - 05:00]

• Background

  • In 2019, Apple and Goldman Sachs launched the Apple Card, a no-fee, daily cashback credit card integrated into Apple devices.
  • Goldman Sachs, typically an investment bank, had ventured into consumer finance starting in 2016, expanding to savings and personal loans.

• Why the Split?

  • Goldman’s traditional strengths lie in large-scale corporate finance, not everyday consumer banking.
  • Managing consumer credit portfolios (now $20B with Apple Card) proved a poor fit, resulting in credit losses and a drag on Goldman’s share price.
  • Ann Berry:

    “Figuring out consumer credit and its associated losses up to 6, $7 billion worth is a totally different beast.” (03:49)

• Enter JP Morgan

  • Unlike Goldman, JP Morgan’s Chase brand has a 85+ million-strong consumer base.
  • By taking over Apple Card, JP Morgan’s U.S. credit card loan book now stands at $255B, surpassing Capital One.
  • The move positions JP Morgan to cross-sell into Apple’s audience and further solidifies it as America’s largest bank.

• Market Reaction

  • JP Morgan's stock surged, market cap hit $910B.
  • Goldman’s market cap slid to $280B, despite long-term share gains.
  • Apple’s stock lagged slightly as Alphabet overtook it in market cap.

2. Beer’s Uncertain Comeback: Constellation Brands Earnings

[05:00 - 18:05]

• Headline: Numbers Beat Low Expectations

  • Constellation (ticker: STZ, $25B market cap) shares up 8% at open, 4% overall.
  • EPS: $2.88 (down 15% YoY, but beat estimates)
  • Net sales: $2.2B (down 10% YoY, but beat estimates)
  • Beer: Net sales down just 1% YoY (improving from -7% in prior quarter), now 90%+ of business.
  • Wine: Sales down 50%
    Spirits: Sales down 32%

• Strategic Reshuffle

  • Constellation is selling lower-end wine/spirits (e.g., Woodbridge, Cook's), focusing on high-end brands (Robert Mondavi, The Prisoner, Kim Crawford).
  • Divestitures explain part of the sales decline outside beer.

• Tariffs, Costs, & Headwinds

  • 85% of Constellation's volume is imported from Mexico, exposing it to U.S. tariffs, especially on aluminum for cans.
  • High marketing costs, lower volumes, and strategic uncertainty added to the market’s wariness pre-earnings.

• Nostalgia & Trends

  • Svetka Vodka—sold to new owners, bringing back its famous "robot" mascot (08:24).
  • Constellation’s foray into non-alcoholic beverages with the launch of an NA version of Modelo’s Chelada line (09:40).

    “The first non alcoholic version of their bestseller Modelo. … Limon Isal has been a fan favorite in our Ready to Drink Shalada lineup.” (09:40)

• Younger Consumers: Is Alcohol Really in Decline?

  • Ann cites Pew Research, challenging the “Gen Z is dry” narrative:

    “It is actually is not definitive data. It doesn't look quite as clear cut as some of the coverage... would suggest.” (12:13)

  • Reality: Data shows less of a generational cliff than the media portrays.

• Impact of Immigration & Demographics

  • 50% of Constellation’s customer base is Hispanic; volumes are sensitive to immigration policy changes and uncertainty.
  • CEO William Newlands on the earnings call (quoting at 13:23):

    “You see a lot of volatility state by state, depending on what's going on with immigration policy in particular markets.”

• Analyst Sentiment & Management Focus

  • 60% of analysts still have a “buy” on STZ, given faith in management’s restructuring skills and cost-cutting ($200M annual savings goal by 2028).
  • CEO Newlands:

    “By focusing on factors within our control, we are confident we're positioning the company in the long term.” (15:56)

  • Ann Berry on why this matters:

    “That's the kind of sound bite that despite the, you know, poor headline numbers tends to get a positive reaction. … It screams execution, it screams focus.” (16:13)

  • Constellation also repurchased $820M in stock and declared a quarterly $1+ dividend.

• Looking Forward: Events & Catalysts

  • The upcoming World Cup in North America is a major beer moment.
    • Constellation earnings call:

      “Sporting elements tend to be big beer moments. It's also a sport that over indexes in the Hispanic community. All these things therefore over index into our business.” (17:44)

  • America's 250th anniversary this year is another potential catalyst.

3. Alphabet Overtakes Apple & AI Hits Your Inbox

[18:06 - 22:00]

• Market Moves

  • S&P 500 flat; Nasdaq slightly down; Dow up—a noisy day, partly due to defense stocks yo-yoing after high-profile government spending and political headlines.

• Alphabet Surges Past Apple

  • Alphabet (Google’s parent) becomes the world’s most valuable company.
  • The driver: More AI features (Gemini) rolled out in Gmail, like one-click suggested replies and thread summaries.
  • Ann:

    “It’s a very specific, tangible example of how AI can be used at a moment when there have been concerns that Google’s been exposed with the threat to its search model from the likes of OpenAI.” (21:04)

  • Gmail’s 3B+ users mean instant, broad exposure to AI.

• Alphabet is More Than Google

  • Host highlights the company’s diversity—YouTube, Waymo, Cloud, and more—rewarded in the market.
    • “Google is more than search is what this proves… Alphabet also owns YouTube, it owns Waymo, it's got a bunch of stuff going on in the cloud.” (21:37)
  • Alphabet was the top “Mag 7” performer in 2025 (+65%) and continues to drive product-centric innovation.

4. Brief Bonus Segments & Notable Moments

[20:26 - 20:42, 17:27 - 17:55]

• Costco’s December Blowout
  • Costco shares jumped 5%+ after stellar holiday sales (+8.5% YoY in December).
• World Cup & Beer
  • Constellation exec on beer sales:

    “Sporting elements tend to be big beer moments. It's also a sport that over indexes in the Hispanic community. All these things therefore over index into our business.” (17:44)

5. Memorable Quotes & Fun Banter

• Ann on industry transitions:

  "It almost sounds like a throwaway comment, right? It sounds like a platitude in many ways. But…that to them screams execution, it screams focus." (16:03)

• John on Spedka Vodka nostalgia:

  “It had this robot woman that sold the product... over the summer just the headline, Svetka is bringing back the robot.” (08:24)

• Ann’s research hobby:

  "I like to go there and sort of peruse the [Pew] website sometimes because they do really interesting thought pieces." (11:26)

Key Timestamps

| Segment | Timestamp | |----------------------------------------------------|-----------| | Apple/Goldman/JP Morgan Card Deal Breakdown | 00:01-05:00| | Constellation Brands Earnings/Beer Market | 05:00-18:05| | Non-Alcoholic Trends, Immigrant Demographics | 08:42-13:53| | Analyst Sentiment, CEO Focus, Investment Themes | 15:42-17:27| | World Cup, America’s 250th—Cultural Catalysts | 17:27-18:06| | Market Wrap (Defense, Costco, Alphabet, AI) | 18:41-22:00|

Conclusion

Ann Berry and producer John deliver a fast-paced, insightful recap of the day’s most talked-about stock stories. They dig into the real impact behind headline numbers, the unique risks and opportunities in consumer finance and beverages, and the ever-expanding reach of Big Tech—showing listeners how business strategies, social trends, and policy all interconnect on Wall Street.

Next up: Tomorrow marks Brew Markets’ 100th episode and a special guest—Jamie Siminoff, inventor of the Ring Doorbell (22:46).