
Amazon on the heels of Walmart & DOGE slowed down a bit
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Toby Howell
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Neal Freyman
Good morning, Brew Daily Show. I'm Neal Freyman.
Toby Howell
And I'm Toby Howell.
Neal Freyman
Today, from conspiracy theories to the color of the Gatorade shower, everything you need to know ahead of Super Bowl 59.
Toby Howell
Then a move over. Walmart, a new company has laid claim to the title of highest revenue generating business in the world. It's Friday, February 7th. Let's ride.
Neal Freyman
Good morning and Happy Friday. Look, if you're spending an entire paycheck on a carton of eggs these days, you might as well prepare them to perfection. And scientists now say they've discovered the recipe. To cook the best possible boiled egg, it'll just take you 32 minutes. In a study published Thursday in the journal Communications Engineering, the scientists recommend putting eggs in a steamer basket, then transferring them between two bowls of water every two minutes, one boiling and the other set to 86 degrees Fahrenheit, lukewarm until 32 minutes are up. That process, known as periodic cooking, yields a velvety yolk and a meaty but soft white. Toby. My deviled eggs for the super bowl party are about to blow people's minds.
Toby Howell
When I first heard about this study, I was like 32 minutes, way too long. But then I thought, a chalky yolk is one of the most tragic substances on earth. I would rather starve than eat a chalky yolk. So I am all in on this method. And I also happen to be a big fan of Gordon Ramsay's scrambled eggs cooking style, which also involves taking it on the heat, off the heat, back on the heat. So I've kind of already done this. If I'm willing to devote that much time to making scrambled eggs, why wouldn't I spend, you know, half an hour doing this method? We have to try it.
Neal Freyman
I will absolutely try it this weekend.
Toby Howell
It's been lofty, but that, that perfect texture, that velvet yolk, I think it's worth the extra time. Now a word from our sponsor, Wise business. Neil. Fun fact. I grew 6 inches my junior year of high school.
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Good God, how many pairs of pants did you go through?
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So many. But that is part of growth. You got to make changes.
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Six inches.
Toby Howell
Toby really my poor knees, man. Needed wise for growing pains. For international payments that grow alongside you, visit wise.com/business that's wise.com/business like a river overtaking the dam that once controlled its flow, Amazon is almost certainly set to bring in more revenue than its rival Walmart this past quarter for the first time ever. For a decade, Walmart has reigned as the world's biggest company by revenue, but analysts project Wally World will announce sales of $180 billion. It reports earnings later this month. While Amazon announced yesterday that it had brought in $187 billion in revenue in the fourth quarter, this was a long time coming. Amazon had been growing at a 12% clip year over year, while Walmart's revenue growth was just 6%. As the two have duked it out for the title of biggest retailer in the world, they have also grown more similar Amazon has invested heavily in groceries, while Walmart has dipped its toe in a prime like membership service, built out a robust e commerce operation and experimented with advertisement revenue. But Amazon still has an ace in the hole in the form of its cloud business. Amazon Web Services AWB revenue has more than doubled since 2020 and now accounts for 17% of its total sales. Neal despite reaching that $187 billion in quarterly sales to take it above its rival, Amazon did issue disappointing revenue forecasts, which caused its stock to slip. But isn't too much cause for alarm?
Neal Freyman
No. Amazon and Wal Mart. This is certainly one of the most interesting rivalries in business. If you look at Amazon's ace in the hole, as you said, it is Amazon Web Services. Walmart has nothing like it. This is a $100 billion business for Amazon and it's growing double digits every single quarter. Last quarter it grew 19%. Amazon also has an advertising business that's growing 18%. So if you look at where the growth is for Amazon, it is in advertising and it is nwc, and it is also in AI, something Walmart doesn't have. Amazon said it was going to spend $100 billion on AI, mostly on data centers and things like that over the next fiscal year. So Very interesting rivalry. Amazon has a few more cards to play, especially in the tech area. And that's why its market cap is so much bigger than Walmart's. Walmart is mostly a pure play retailer still and its market cap, despite a very good year last year on the stock market, is still around $800 billion. Amazon has zoomed past 2 trillion.
Toby Howell
It's interesting because, you know, Walmart gets the bulk of its sales from selling stuff and it's building up these side businesses like advertising, digital sales, etc. Whereas Amazon is competing in the retail sector just to, you know, competing on speed of delivery and competing on price. And then all their profit comes from these web based businesses, things like nwc. So it is interesting to see how they are both in the same arena. But like one just has this extra web based thing that really takes it to the next level. Let's talk about Amazon's AI investment because they kind of shocked investors yesterday when they reported earnings saying that they do plan on spending $100 billion on AI, which is bigger than any other of its big tech peers. And it makes you a little cautious if you're an investor because we just went through that whole deep seat debacle where this Chinese AI company proved that you could train these models for a lot less. So then when you hear we're going to spend $100 billion on AI, we're like, wait a second, I thought you would spend a little bit less because it's more efficient so we don't have to spend as much money. But that being said, Andy Jassy was like, listen, we see this big outlay as a good sign for us. We wouldn't do it if we didn't think that it would lead to more revenue generation. You got to spend money to make money even at the highest echelons of, you know, corporate America. So he still feels pretty confident that this is the right investment to make.
Neal Freyman
Yeah. And that was the common theme across big tech earnings. Amazon was the last big tech company of the magnificent Seven outside of Nvidia to report earnings over the past two weeks. And they sounded a very similar tone. Microsoft, Alphabet, Amazon and Metta, they all said, we are going to spend not only the same on CapEx for AI, we're going to spend even more. Their combined capital expenditure forecasts are totaling 320 billion. That's up from 246 billion in 2024 and that's up from 150 billion in 2023. They all said the same thing. We're going to continue to spend, never mind Deep Seek. So that Deep Seek revelation has not changed plans whatsoever. And we have Nvidia coming up in the next few weeks. And we'll see what they say. The blizzard of news keeps raging from Washington, D.C. and we're here to shovel it all up for you. First, that deadline for federal workers to take deferred resignations has been extended past yesterday's midnight cutoff by a federal judge who ordered a hearing on Monday to determine whether he'll block it indefinitely while litigation proceeds. That litigation came from the American Federation of Government Employees and other unions who in lawsuits alleged that what the government was doing offering employees the opportunity to resign while still being paid for eight months was illegal. Bloomberg reported that about 50,000 people have so far taken the deal, which is about 2.5% of the federal workforce. The Trump administration was targeting 5 to 10% of workers to opt in. Toby. The fate of federal workers now shifts to the courts, but they remain in a state of limbo.
Toby Howell
Yeah, definitely a state of limbo. The administration is looking at this pause in a different light. They don't see it as a pause. They're saying actually, what a great way to increase the number of resignations. So it is increasing that, you know, time people can reply to that fork in the road email and say, I do want to, you know, take this deferred payment. That being said, we still don't know if it will be legal. There's a lot of challenges that we've covered on the show already about the fact that Congress has not passed a budget for funding beyond mid March. So how can you guarantee that you will pay these employees beyond that date? So again, we have reached sort of a Trumpian limbo space where he issues an order, some court pushes back against it, and it leaves you in the lurch for, you know, a period of time. We are in that period of time right now.
Neal Freyman
Right. But the thing is, they might not wait for these people to take resignations before issuing sweeping layoffs. Reports out yesterday indicated that the Trump administration was preparing an order that would cut thousands of health workers. USAID also is reportedly going to be essentially gutted from more than 10,000 employees worldwide to about 290. And we already have reports of small businesses and contractors laying off workers across the economy. And of course, that is in focus because we have the jobs report coming out in two and a half hours at 8:30am Eastern. That won't show all of the chaos that's been enveloping Washington and federal workers and everyone all the 7.5 million employees across the country connected to the federal government. But it'll be, you know, it'll be a very important jobs report. And then the next one for February will be even more important. Okay, let's move across town to the Treasury Department where another court has curbed Elon Musk's access to the government payment system that distributes trillions of dollars each year. Following a legal challenge over Musk and Doge's reported entry into that system, a federal judge barred the U.S. treasury from handing over data from its payments portal to outsiders and limited access to two Doge staffers who can see Treasury Department data, quote, as needed and on a read only basis. Then, mere hours after that court ruling, One of those two Doge staffers who was granted access to treasury data, 25 year old Marco Ella's resigned after the Wall Street Journal found links to a deleted social media account that supported racism and eugenics. In one post, the account wrote, just for the record, I was racist before it was cool. What does Scott Besant, the newly confirmed Treasury Secretary, think about all this? In an interview with Bloomberg, he defended Musk's work in his department and said he and Elon are, quote, completely aligned in terms of cutting waste and increasing accountability and transparency for the American people. He described DOGE employees as highly trained professionals and not some roving band running around doing things.
Toby Howell
Remember, this was very sensitive data that these Doge employees did get. Access to. Stuff like Social Security numbers, your birth date, home addresses, telephone numbers, bank account information, which was why there was kind of this uproar. Even if it was read only access, which, well, I'll actually touch on in a second. You don't want two people that weren't elected, you know, combing through this, this data. But then Wired actually did report later that they probably didn't have only read only access. They had direct access to the treasury payment systems, this 25 year old engineer. So it is a little scary to have these unelected people coming in and digging through this system that covers nearly all payments made by the US Government and that has a lot of sensitive data on U.S. citizens.
Neal Freyman
Yeah, and that's why I think U.S. treasury Secretary Scott Bessant was saying, everything's kosher here. I'm overseeing everything. I'm in control in that interview with Bloomberg. But again, another push by the Trump administration and Doge that has been sued and blocked at least temporarily by the courts. There will be a more formal hearing in a few days to figure out what's going on. Over there. Finally, a spat is escalating over the Panama Canal, one of the world's key shipping routes, after Panama's president accused the US of lying about a deal over American military ships. Here's what's going down. On Wednesday, the U.S. state Department posted on X that Panama agreed to allow US Government ships to access the water way without paying a toll. Remember, Secretary of State Marco Rubio traveled to Panama over the weekend as part of the Trump administration's push to assert more control over the canal and get China to back off. But yesterday, Panamanian President Jose Raul Molino said, we never said your ships could pass through for free. Or in his words, I am incredibly surprised by yesterday's statement. They're making an important institutional statement from the entity that governs US Foreign policy based on a falsity, and that's intolerable. After the blowback, Rubio said, okay, maybe you're right. At a press conference, he said that the US Expects Panama to remove the fees, but acknowledged that Panama has a process of laws and procedures that they need to follow.
Toby Howell
Yeah, and actually that process is tied to a 1977 treaty, the treaty that actually originally handed over control of the canal to Panama. They have, there's a clause in that treaty that requires equal treatment of all canal users. So you can't do these carve outs for specific nations like Rubio and Trump are pushing for. What's ironic too is that over the past 26 years, the US has paid $25 million for warships and submarines to pass through. That comes out to less than $1 million a year. It is not a big chunk of change that we're talking about. It does seem to be more of like a symbolic victory that Trump and Rubio are pushing for because it just really isn't. I mean, look at the percent of the total ships that pass through each year. 0.5% are U.S. navy vessels. So it just doesn't affect that many things. Which is why it's interesting that kind of this administration is making such a big deal out of, you know, trying to get free passage for these ships. Up next, stock of the week, Dog of the week time.
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Toby Howell
Of the Week Dog of the Week time where Neil and I pick one stock that had a perfect sleep score and one stock that stayed up all night scrolling Instagram reels. Neil I won the pre show game of Ruin a movie by changing one letter in the title. So I am up first and my Stock of the Week is a Workday which saw its share price jump after it announced it was laying off 8 1/2% of its 20,000 plus employees. Workforce Workday is a workforce management software that you'd ironically probably use to figure out if you wanted to lay off employees at your own business. But the reason investors view its restructuring so positively is because its purpose is to increase its focus on AI investments. Workday is far from the only company rearranging their organizations to make room for AI. Most of big tech, from Metta to Google to Salesforce, have laid off employees to make room for the only two letters investors care about these days. So Neil, when you see an announcement of layoffs under the premise that a company will redirect those resources towards AI, it's pretty clear that the market will like it.
Neal Freyman
It's certainly a pattern. Earlier this week, Salesforce also announced it was going to lay off a thousand workers and hire a few in other positions. And that position is SalesPeople for its AI. Dropbox did this last year as well. The CEO Drew Houston said it was a really tough decision to let go of a lot of people and then make room for investments in AI. So it's all about making space for investments in AI. A lot of we just talked about Amazon spending $100 billion. A lot of these companies don't have infinite resources like Amazon does to, you know, spend $100 billion. So they need to make cuts elsewhere. And those cuts are human workers. The fears that many had about AI replacing human work and leading to a lower reduction in the amount of humans that need to work at these tech companies appears to be coming true in 2025.
Toby Howell
Yeah, Klarna is another big name that has cut a lot of employees to, you know, make space and replace them with AI. They say they've saved $10 million annually for using AI for its marketing needs. And then very ironically, Klarna also drastically, drastically reduced their usage of software platforms like Salesforce and Workday and replace them with AI. So it's not just humans. It also is, you know, the other software stack that usually are used to run, you know, these big organizations. So it is cuts all the way down. And it is interesting to see how like, these layoffs are just met so positively by the market. Whenever you, you say those magic words is like, we are cutting costs in this area, putting it towards this area being AI. Instead, the market usually tends to like that figures.
Neal Freyman
I get dog of the week because this one strikes at the heart of my identity. A millennial who grew up in the suburbs and wanted to dress like a skateboarder. Quicksilver, Billabong and Volcom, popular outdoor clothing brands for skaters, surfers and the wannabes, are closing virtually all of their stores across the country after their parent company, Liberated Brands, filed for bankruptcy. The silver lining, or I should say quicksilver lining, you can still buy those clothes. The brands will continue to make them just under a license from a different company, but it won't be from their namesake stores. More than 120of the locations will close in the coming weeks. What went wrong at Billabong? Liberated CEO blamed macro forces like a rise in interest rates, inflation and supply chain delays, while also criticizing the fast fashion industry for allowing shoppers to, quote, cheaply, quickly and easily order low quality clothing garments. Toby, a sad day. Quicksilver was always a must stop on the high school mall date.
Toby Howell
It absolutely was. It is kind of the end of an era too. So you can blame a lot of things. Obviously you can blame interest rates, inflation, supply chain delays, Those are all very valid. But the last thing that its CEO said was shifting consumer preferences, which I think you cannot ignore either. I really think that these brands kind of rode the wave of, you know, the board short era, the, you know, skateboard era. But now, if you go to the beach, for instance, you're seeing a lot of thigh out there, you know, five inches. I haven't seen it inseam longer than five inches in a long time. So I really think the thighs killed Billabong, killed Quicksilver, Volcom, these. These brands that kind of rose a very specific esthetic to prominence. But, yeah, they aren't going. They're not dying per se. You just won't see them in the malls anymore where you were taking all your dates. Neal.
Neal Freyman
Okay. Super Bowl 59 between the Chiefs and the Eagles is two days away. Here is a preview of the biggest business storylines around the game as you apply layers of 1 and 2 of the dip. Besides Patrick Mahomes and Saquon Barkley, the start of this year's super bowl will be the Caesars Superdome in New Orleans, which is celebrating its 50th year in existence as the home of the Saints. This is a remarkable building that, pound for pound, may have hosted more legendary sports moments than any other venue in the United States. Eight Super Bowls, counting this one, the most of any stadium. Final Four is college football championships, heavyweight boxing bouts. It's where college freshman Michael Jordan lifted North Carolina to a title over Georgetown, and Tom Brady became a household name with his first improbable super bowl win over the Rams. But time has run its course, and New Orleans may be ceding its crown as the top host for championships To Las Vegas, which hosted last year's super bowl and has emerged as the new epicenter for live sports events. So in a way, the super bowl feels like both a celebration of the Superdome, an absolute space age icon, but also a retirement party from heavy hosting duties. It's the fifth oldest home field in the NFL and the last remaining of its kind.
Toby Howell
It is iconic, though, and it is sad because it is aging and it recently went underwent a big renovation to try to modernize it. But, you know, New Orleans is one of the smallest cities that has an NFL team in the country. It's always punched above its weight when it comes to hosting events because the city is a very fun backdrop for, you know, things like a Super Bowl. That being said, it just might be over. You know, it's just over its head at this point because these events are so big. Now Vegas looks like it's a better place. You know, take that mantle because it's got more hotel rooms, it's more of a walkable city. It's, it's got multiple things within a certain radius as well. So New Orleans was, you know, kind of the de facto party hosting destination. Now it looks like maybe that time is coming to an end.
Neal Freyman
Yeah, after the last year's Super Bowl, Roger Goodell was like, you can bet we're coming back to Las Vegas. But the Superdome is a very important part of New Orleans and New Orleans history. It's called, quote, the city's living room because it not doesn't just host Saints games, but it hosts conventions, weddings, proms, hundreds of other events at the rnc. When Pope John Paul the Second came, he was at the Superdome. And then, of course, you can't talk about the Superdome without its role in Hurricane Katrina after that. That hurricane, you know, wiped out parts of the city. It served as a refuge for thousands of people. And perhaps the most iconic moment in the Superdome history was, was the first Saints game after Katrina when there was a blocked punt and the Saints romped at home. And just this feeling of celebration and coming together for that city just still gives me goosebumps.
Toby Howell
Another storyline heading into the big game is a switch up happening in the end zone. As Saquon pounds in his fifth touchdown of the game. You might notice that the NFL has switched out its on field slogan and racism for choose love instead. An NFL spokesperson said that the reason behind the change is tied to the New Year's terrorist attack in New Orleans, as well as other recent tragedies like the L A wildfires and the plane crash in D.C. however, NFL commissioner Roger Goodell did recently reaffirm the league's commitment to DEI in his annual super bowl address, including policies like the Rooney Rule, which require teams to interview minority candidates for coaching and executive positions. Now, this is the first time since 2021 that people watching will not see and racism stenciled on the field.
Neal Freyman
Yeah, the NFL certainly made a lot of headlines this week with the end zone change and also Roger Goodell's statements around die at a time when many Fortune 500 companies are backing away from DI. It's very interesting that the NFL has put its foot in the ground and said, no, this is very important to us. Goodell said, quote, we got into diversity efforts because we felt it was the right thing for the National Football League, and we're going to continue to do those efforts. That hasn't stopped criticism from coming into the from, you know, being late on the NFL for its coaching decisions. This year, seven of the 32 NFL teams have a have a head coach that are people of color, which, you know, critics say is not close to enough considering, you know, the amount of black and other people of color athletes who are participating in the NFL. And then in terms of the pipeline to head coaching positions, there were zero offensive coordinators people of color in the NFL this year. The offensive coordinator is, you know, the stepping stone to becoming a head coach. So you can say NFL is talking the talk they've had this Rooney role for since 2003, but it's not necessarily walking the walk. Moving on this year's super bowl is also a feast for people who dabble in conspiracies. A number of unexplained mysteries surround the game, making it fertile ground for unfounded but certainly fun speculation that the NFL follows a predetermined script. First, the super bowl logo for the for the third time in four years, the colors on the super bowl logo strangely appear to predict the teams that will be playing in the game, despite the logo being released many months before. The 2025 Super bowl logo, which was revealed last February, has red and green colors mirroring the Chiefs and the Eagles colors. This theory started back in 2022 when the logo included orange and yellow matching the Bengals and Rams who matched up in that Super Bowl. The next year, it was red and green for the Eagles and Chiefs, and now it is again for their rematch. The other conspiracy is a little more serious, and it suggests that the NFL and its refs are in the bag for the Chiefs, rigging the league so that they can win three championships in a row. And of course, there's some Taylor Swift voodoo thrown in since she's dating Chiefs tight end Travis Kelce. People noted how she may have sprinkled fairy dust on the Superdome when she played eras tour shows there last year, manifesting her boyfriend to be competing in the game months later. Toby, you buying any of these?
Toby Howell
I believe them all, especially the fairy dust sprinkling. I do want to talk about the Chiefs and the fact that, you know, the refs had to come out and say the league had to come out and say, no, the refs are not colluding. One thing that they pointed to is that there are 17 officiating crews across consisting of 138 officials that, you know, refereed Chiefs games. And they the league was like, do you really think they're all colluding to assist one team. That being said, though, there is some data that, you know, you could point to that, say, maybe the Chiefs do get more favorable calls, especially in the playoffs. If you look at the 2023 and 2024 postseasons, the Chiefs have been called for 16 fewer penalties for 160 fewer yards than their opponents. But what you have to look at is how much of those penalties add to the win probability of each game. And over those six games, their win probability has jumped 27% based off the calls that they have gotten. That is just behind the Green Bay packers amongst all teams. So it is interesting that you can point to their postseason runs since Patrick Mahomes really took over and look at how much win probability was added. The final thing I will say on this though, you can go Back to the 2013-2017 New England Patriots and they got even more lopsided treatment than the current Chiefs. They were getting called for 22 fewer penalties, 276 fewer yards than their opponents. So I think basically whenever some team is good, something happens where the refs kind of contribute to that in some way. So do I believe the conspiracy theories? No, but just. Just follow the data. That's all I'll say. Finally, sportsbooks are expecting $1.4 billion in legal wagers on Sunday's game, which would be a new record. And while a lot of those bets will likely be on the Chiefs for the Eagles to win, we want to surface some prop bets you should be aware of. Prop bets are those side bets that don't directly influence the outcome of the game, but are fun to root for nevertheless. Think what color will the Gatorade be? Will the coin toss be heads or tails? So, Neil, while I got you here, I'm going to get your thoughts on some of the more interesting prop bets this year. Up first, will the national anthem be longer or shorter than 120 seconds? Some background. It is being performed this year by John Baptiste, a soul jazz musical genius. Are you taking the over or the under?
Neal Freyman
I'm going over because John Baptiste is probably going to bring out his piano and I watched the tape. His he did the All Star Game for the NBA in 2017. He had the piano. He does a little flourishing that clocked in right at about 120 seconds. But this is a much bigger stage and when you're on the big stage, you got to soak it up. And there has been a trend of longer national anthems. Seven of the last 11 performances have been 120 seconds or more. So I think it's not going to come in that much over 120.5 at the over under. But I'm still going over because John Batese, he's going to. He's going to tickle the keys. It's going to be great.
Toby Howell
I love that pick. Unfortunately, I was going to pick everything opposite than you, but I do think John Baptist is going to put on a show. All right, up next, what color will Tom Brady's tie be? Remember, Tom is announcing the big game for the first time. He's in the booth instead of on the field. Here are the options. Blue is the favorite at plus 175. And then in descending order of how likely you have gray, no tie, red, black, green, pink, and then yellow at + 1200. What's your pick here?
Neal Freyman
Now I think blue is the way to go. Remember, this is the $375 million question. Because Tom Brady was signed to that massive deal. This is his coming out party as a. As a broadcaster. He has a minority ownership in the Raiders, which he certainly doesn't want to draw attention to. So you can basically eliminate gray and silver. No tie, you know, no. This is the Super Bowl. Red is also eliminated with green as well because you don't want to see, like, you're a homer for the Chiefs or the Eagles. So I'm going blue. I think it's going to either blue or black.
Toby Howell
I think. Yeah, that's why you got to go black, because there's so much better value there. Because blue and black, they're very similar, but black is plus 1200, while blue is only plus 175. I'm chasing that extra value. All right, up next, what song will Kendrick Lamar perform first at the Super Bowl? He is the halftime performer. People are very excited. Some of the favorites are Humble is the overwhelming favorite at minus 155. And then you have Not Like Us, you know, the summer anthem. That was a diss track to Gray, to Drake squabble up and then swimming pools drank. Any names standing out to you there?
Neal Freyman
I'm going chalk with Humble as well. I'm boring. Sorry. That's what I think is going to happen. I'm sorry. And then the last song, I think certainly will be Not Like Us. The. Maybe the more interesting bet is how many Drake diss tracks will be on there. At least two is minus 420. So the. The betting. Las Vegas definitely certainly thinks that there will be at least two Drake diss tracks. So. So poor one out for that.
Toby Howell
That's A lot.
Neal Freyman
It's going to be. It's going to be hard for him.
Toby Howell
Yeah, that's a lot of eyeballs looking at your diss tracks. Okay, I mentioned this one in the intro, but what color will the Gatorade be? Neil, you went very deep on this. The last two Super Bowls have been purple. Do you think purple? Three peats.
Neal Freyman
Yeah. It's very interesting. I did not know that purple was the last two. That's what the Chiefs. The Chiefs also won the last two, so I guess they've opted for purple. What I'm going to go with is clear. So clear has good odds at plus 900. And it had probably the most epic run of any Gatorade flavor. Flavor ever. 2005-2008. Those four super Bowls, it was clear or water. And I think we're in a nostalgic moment. We're going back to clear.
Toby Howell
So wait, clear is a flavor. It's not just water that we're talking about or it's.
Neal Freyman
It's a flavor. I don't know exactly what flavor, but you see Gatorade, there's. There's a few flavors that are clear, and I think we're going with that.
Toby Howell
Gotcha. Okay, I said that was the last one. But I have one more question for you, actually, Neil. Will Travis Kelsey propose to Taylor Swift on the field? As of Thursday, the odds for no proposal were far better. Minus 2000 compared to plus 800 for a proposal. Does Travis get down on Wendy?
Neal Freyman
I think he's classier than to do an on field proposal. Plus, they're going to lose, so, you know, it wouldn't be. It wouldn't be the right moment for them. Okay, let's wrap it up there. Thanks so much for starting your morning with us. And have a wonderful Friday and an even better weekend. For any questions, comments, or feedback, send an email to Morning Brew daily at Morning Broadcom. And if you're enjoying the show, share it with a friend, family member, or co worker. Don't worry if you're lacking ideas. Toby has been brainstorming all morning and he's got instructions for you.
Toby Howell
I want you to share the pod with someone you are watching the super bowl with. Here's the plan. You send them this podcast, tell them to listen to Neil's prop bet picks, then you bet the opposite on every single one of them. It's the fade meal parlay, and you might make millions.
Neal Freyman
All right, let's crawl the credits. Emily Milian is our executive producer. Raymond Lu is our producer. Olivia Graham is our associate producer. Nuchenoa Ogu is our technical director. Scoop Stardaris is on audio, hair and makeup is going on the record. Eagles 27, Chiefs 23. Devin Emery is our chief content officer and our show is a production of Morning Brew.
Toby Howell
Great show today, Neil. I wish you all well.
Morning Brew Daily: Amazon Dethroning Walmart? & DOGE Hits Snag in Treasury Overhaul Release Date: February 7, 2025
In this episode of Morning Brew Daily, hosts Neal Freyman and Toby Howell delve into significant shifts in the business landscape, government controversies, and a comprehensive preview of Super Bowl 59. Here's a detailed summary of the key discussions, insights, and conclusions from the episode.
[02:34 - 05:23]
Neal and Toby explore Amazon's recent achievement of surpassing Walmart as the highest revenue-generating company globally. For a decade, Walmart held this title, but Amazon reported a staggering $187 billion in revenue for Q4, compared to Walmart's projected $180 billion. This shift is attributed to Amazon's robust growth areas, including:
Amazon Web Services (AWS): AWS revenue has more than doubled since 2020, now constituting 17% of Amazon's total sales. Neal emphasizes, "AWS is a $100 billion business for Amazon and it's growing double digits every single quarter" (04:19).
Advertising and AI Investments: Amazon's advertising business is expanding at an 18% growth rate, and their commitment to AI is significant, with plans to invest $100 billion predominantly in data centers and related infrastructure (05:23).
In contrast, Walmart has diversified by investing in groceries, e-commerce, and advertising but lacks a counterpart to AWS. Neal notes, "Walmart is mostly a pure play retailer still," highlighting Amazon's technological edge as a critical factor in its market dominance (04:19).
Notable Quote:
"Amazon has a few more cards to play, especially in the tech area. And that's why its market cap is so much bigger than Walmart's." — Neal Freyman (04:19)
[05:23 - 11:58]
The hosts discuss a legal battle involving Elon Musk and DOGE staffers gaining access to the U.S. Treasury's payment systems. A federal judge restricted Treasury data access to outside parties, limiting it to two DOGE staffers on a read-only basis. However, controversy erupted when one of these staffers, Marco Ella, resigned after connections to a deleted social media account promoting racism and eugenics surfaced.
Key Points:
Notable Quote:
"You don't want two people that weren't elected... combing through this data." — Toby Howell (11:58)
[06:47 - 09:10]
Neal and Toby examine the Trump administration's initiative offering federal employees deferred resignations with continued pay. Legal challenges from unions have led to a federal judge extending the deadline for these resignations, leaving approximately 50,000 employees in uncertainty. Additionally, the administration is reportedly planning significant layoffs, including cuts to health workers and USAID personnel.
Key Points:
Notable Quote:
"We are in that period of time right now." — Toby Howell (08:24)
[09:10 - 14:18]
The episode covers tensions between the U.S. and Panama regarding passage fees for American military ships through the Panama Canal. The U.S. State Department claimed Panama agreed to allow free passage, but Panamanian President Jose Raul Molino refuted this, citing a 1977 treaty mandating equal treatment for all canal users.
Key Points:
Notable Quote:
"You can't do these carve outs for specific nations like Rubio and Trump are pushing for." — Toby Howell (14:18)
[16:00 - 19:35]
Stock of the Week: Workday
Dog of the Week: Quicksilver, Billabong, and Volcom
Notable Quote:
"Whenever you announce layoffs under the premise that a company will redirect those resources towards AI, it's pretty clear that the market will like it." — Toby Howell (17:02)
[20:20 - 32:14]
Neal and Toby provide an extensive preview of Super Bowl 59, highlighting business implications and entertaining conspiracy theories surrounding the event.
Key Topics:
Venue Shift:
End Zone Slogan Change:
Conspiracy Theories:
Prop Bets Discussion:
Notable Quotes:
"The Superdome is a very important part of New Orleans and New Orleans history... it served as a refuge for thousands of people." — Neal Freyman (22:18)
"It's going to be hard for him [Travis Kelce]." — Neal Freyman on Travis proposing to Taylor Swift (32:29)
The episode of Morning Brew Daily offers a comprehensive analysis of Amazon's rising dominance over Walmart, governmental challenges involving the Treasury and federal workforce, and an engaging Super Bowl preview infused with business insights and light-hearted conspiracy theories. Hosts Neal Freyman and Toby Howell adeptly navigate these topics, providing listeners with valuable information and entertaining discussions to start their day.
Notable Quotes with Timestamps:
For more insights and discussions, tune into the Morning Brew Daily podcast available on all major platforms and YouTube.