Morning Brew Daily Podcast Summary
Episode: AI Music is Catching On & Businesses Have a Penny Problem
Date: October 31, 2025
Hosts: Neal Freyman and Toby Howell
Episode Overview
On this lively Halloween episode, Neal Freyman (as Buzz Lightyear) and Toby Howell (as Woody) dive into the penny shortage impacting American retailers, dissect Apple and Amazon’s latest earnings reports, explore the rapid rise of AI-generated music, and discuss the shifting landscape of obesity rates thanks to new drugs. In classic Morning Brew fashion, the hosts blend sharp business insight with wit and trending cultural commentary.
Big Tech’s Weekly Earnings: Apple and Amazon
Apple’s Q4 Surge—But With China Trouble
- Apple reports $103 billion in quarterly revenue, up 8% YoY, with iPhone 17 sales leading the charge (02:09)
- Apple projects 10–12% growth next quarter (higher than Wall Street’s expectations)
- Major growth in Apple’s services division, breaking $100 billion in annual revenue for the first time
- Concern: Revenue in China fell by $500 million YoY
- Odd stock reaction: Initially fell due to China concerns, rebounded after Tim Cook praised iPhone 17 demand
- Quote: “People are loving the iPhone 17. They were absolutely gobbling it up.” — Neal (03:34)
- The new iPhone 17 "Air" model is not gaining traction; Pro and Pro Max are the big sellers
- Apple is behind in the AI race but hints at investing more, possibly through M&A
- Tariff update: Apple expects a $1.4 billion tariff hit due to China, but overall tariffs are trending down
Amazon’s Comeback Quarter
- Amazon’s revenue rose 13% to $180 billion; blew past investor expectations with help from Amazon Web Services (AWS) (05:41)
- AWS revenue was up 20%, its best growth in nearly three years
- Quote: “Amazon is humming on all cylinders.” — Neal (06:55)
- Amazon claims to be facing capacity constraints, not demand woes, due to the AI boom
- Project Rainier (new data center initiative) comes online to meet surging demand
- Amazon’s E-commerce also performs well, credited to faster delivery through more local warehouses
- Stock jumped 13% in after-hours trading
The Penny Shortage: Retailers Feel the Pinch
Background
- In February, then-President Trump halted penny production due to cost (they cost 3.7 cents to make but are worth only 1) (08:41)
- By late summer, retailers and banks ran out of pennies, causing chaos at checkout
- Some stores (like QuickTrip) round down cash purchases, costing millions in lost revenue
- Retailers and banks want Congress to pass the "Common Cents Act," allowing them to legally round transactions to the nearest nickel
- Quote: “Retail and banking industry groups say they are happy with the decision to stop producing the penny, but they’re also frustrated that it happened so suddenly and without any support or guidance from the government.” — Neal (08:41)
- Rounding up is illegal in some states, adding further confusion
- Quote: “People are pushing for clarity. We just want to know what to do—can we go up to the nickel, can we go down to the nickel?” — Toby (09:54)
- Signs posted at retailers ask customers to pay with exact change—haven’t been seen since COVID coin shortages
Stock of the Week: Suno (AI Music Takes Off)
- Suno, an AI-generated music platform, quadrupled revenue to $150M/year and seeks a $2 billion valuation (12:55)
- Allows anyone to create songs via text prompts; premium features attract paying musicians
- Quote: “It is a sticky product… As soon as you make one song, you definitely want to make another.” — Toby (13:20)
- Rival Udio and Suno face lawsuits from Universal, Sony, and Warner over copyright; music giants both threaten and court the AI upstarts
- Experts split: Supporters (like Imogen Heap and will.i.am) hail new creative tools, while critics warn of streaming services being flooded with “infinite slop”
- On streaming service Deezer, 18% of uploaded songs daily are now AI-generated
- Quote: “We don’t know how much AI music really is out there because Spotify and other streaming services don’t disclose how much AI music is on their platforms.” — Neal (14:25)
Dog of the Week: Peak Obesity?
- Obesity rates have dropped in the US: 37% in 2025 from a high of nearly 40% in 2022 (18:09)
- Quote: “According to a new survey… the share of obese U.S. adults fell to 37% in 2025, down from a high of nearly 40% in 2022.” — Toby (18:09)
- The decline correlates with skyrocketing use of GLP-1 drugs like Ozempic and Mounjaro (12.4% of adults now users, double last year)
- Eli Lilly’s profits soar on these drugs; a “bidding war” underway with Novo Nordisk to lead the next wave of obesity drugs—especially the highly anticipated “pill” format
- Quote: “There is a huge arms race right now to develop the weight loss pill.” — Neal (21:20)
- The pharma battle mirrors the AI arms race in Big Tech
Quick Hits & Culture
- NYC Mayor He Said/He Said: Times of London mistakenly quoted a Long Island wine importer named Bill de Blasio instead of the former mayor (21:55).
- Quote: “I get all this hate mail…he literally said, ‘Dude, you are killing me’…” — Toby (23:09)
- Flight Turns Around for Lost Laptop: United flight returns to Dulles after a passenger’s laptop (with flammable lithium battery) slipped behind a panel (24:05)
- Quote: “The pilot comes on the intercom—yeah, the guy in 14C, he let his laptop slide in the cargo hold. Now all your travel days are ruined. Blame him.” — Toby (24:56)
- Daylight Saving Ends / NYC Marathon: Reminder to set clocks back Sunday; extra sleep but much earlier sunsets. Marathon runners get a built-in excuse if it's “too hot” (26:10)
- Quote: “If you are an early riser because it’s been getting later and later nowadays…with daylight saving time ending, the sun will start coming up around 6:30am.” — Neal (27:03)
Notable Quotes [with Timestamps]
- “People are loving the iPhone 17. They were absolutely gobbling it up.” — Neal [03:34]
- “Amazon is humming on all cylinders.” — Neal [06:55]
- “People are pushing for clarity. We just want to know what to do—can we go up to the nickel, can we go down to the nickel?” — Toby [09:54]
- “It is a sticky product… As soon as you make one song, you definitely want to make another.” — Toby [13:20]
- “According to a new survey… the share of obese U.S. adults fell to 37% in 2025, down from a high of nearly 40% in 2022.” — Toby [18:09]
- “There is a huge arms race right now to develop the weight loss pill.” — Neal [21:20]
- “The pilot comes on the intercom—yeah, the guy in 14C, he let his laptop slide in the cargo hold. Now all your travel days are ruined. Blame him.” — Toby [24:56]
Tone and Highlights
- Fast-paced, bantering, and rife with pop culture references (Buzz Lightyear/Woody costumes)
- Clear, digestible coverage of business headlines with a humorous edge
- Several memorable “real world” stories to ground the business news (NYC mayor mix-up, airplane laptop incident)
- Engaging for business-interested listeners and casual podcast fans alike
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