Morning Brew Daily – Episode Summary

Episode: ‘Big Short’ Investor Calls it Quits & Cannabis Products Up in Smoke?
Date: November 14, 2025
Hosts: Toby Howell & Ann Berry

Episode Overview

This witty, fast-paced episode of Morning Brew Daily dives into several hot business and economic topics:

• Why famed investor Michael Burry of "The Big Short" has shut down his hedge fund
• How a new government spending bill could spell disaster for the booming hemp and cannabis products industry
• Surging stocks (and fallen "dogs") in the era of AI and quantum hype
• The launch of "naked" Doritos & Cheetos, Robinhood’s on-demand cash withdrawals, Uber’s ski service, and a revealing study on podcast host gender diversity

Key Discussion Points & Insights

1. Michael Burry Shuts Down Scion Capital (03:00–07:15)

• Background: Michael Burry, known for his legendary bet against the housing market in 2008, has terminated his investment fund, Scion Capital.
• He recently disclosed big short positions against AI giants like Nvidia and Palantir, bucking the most bullish trend of the decade.
• Possible Reasons for Fund Closure:
  • Burry may be avoiding the quarterly spotlight and scrutiny required by SEC filings. “He might have shut things down completely and liquidated the fund. More likely though is he's trying to do away with public reporting...” (05:00, Toby).
  • The AI hype train is relentless; his recent shorts have taken “paper losses.”
  • Short sellers are having a tough time. “Right now the environment is just hostile to bears in general. Tech optimism is overwhelming. It's not a fun time to be a bear right now.” (06:38, Toby).
• Ann’s Commentary: Even with a relatively small fund ($150M), Burry’s every move attracts outsized attention. Palantir’s astronomical valuation (P/E ~230) is a major outlier. “He’s not alone in saying maybe it’s getting a little nosebleedy up there.” (04:50, Ann)
• Memorable Quote:
  • “There’s a saying that the market can stay irrational longer than you can stay solvent.” (05:46, Toby)
• Wrap-Up: Scion is closed, but Burry hints on X that he’ll be “onto much better things.”

2. Cannabis & Hemp Products Face a Crackdown (07:20–10:56)

• The Policy Shift: New government shutdown-avoidance legislation included a buried provision that cracks down on hemp-derived products, narrowing federal THC limits.
• Implications:
  • The $28B hemp industry faces an “existential crisis.” Jobs at risk: 300,000 (farmers, manufacturers, logistics, retail).
  • Previously, hemp products with ≤0.3% THC were legal; now, the law moves to a strict 0.4mg/container cap—effectively banning most edibles and beverages.
  • “Going from 0.3% THC by weight to 0.4 milligrams per container is a big deal.” (08:53, Toby)
• Origins & Interests:
  • Ann queries how the change got into the bill. Toby traces it to Sen. Mitch McConnell, who originally supported hemp for Kentucky jobs but grew concerned over legal loopholes (09:55).
  • Big Alcohol lobbied for the change—cannabis beverages have been eating into their market share.
  • “That is one group that's feeling actually quite pleased about this outcome.” (10:32, Ann)

3. Stock of the Week: Cisco – AI Mania Returns to Old Tech (11:00–14:26)

• Highlight: Cisco, iconic for riding the dot-com bubble, nears its previous all-time stock price, propelled by surging demand for AI infrastructure.
• Cisco’s newest all-in-one AI racks drive $1.3B in recent AI-related revenue. But at $77.38/share, it just missed its 2000 peak.
• “It's a wave of AI related demand that is powering it to similar heights...” (11:32, Toby)
• Ann’s Reflection: Is it a sign of mania to celebrate a 25-year-old high?
  • “This is where I start to have some sympathy for Michael Burry... sort of a sign of an extraordinary time.” (12:03, Ann)
• Cisco’s Play: Infrastructure, not chips. Their AI rack is a “plug-and-play solution if you don’t want a mess of wires... it's an infrastructure play, not necessarily one of the... sexier names” (13:19, Toby).
• Subplot: The Industrial Internet of Things (IIoT) segment is benefiting from the reshoring of manufacturing per Cisco’s management.

4. Dog(s) of the Week: Quantum & Speculative Tech Stocks (16:07–19:06)

• Summary: High-flying AI, quantum computing, and energy stocks are plummeting. Names like oclo, D Wave, Coreweave, Rigetti, Bloom Energy have lost ~one third of value in a month.
• Why the Crash?
  • Earnings season exposed the lack of fundamentals—many of these pre-revenue companies can’t compete with S&P 500 companies beating on earnings.
  • “These are companies that had insane run ups... a lot of them are close to zero revenue, pre revenue, but with, you know, multibillion dollar valuations.” (17:05, Toby)
  • Ann notes IBM is now being viewed more glamorously, while “pure play” quantum names fade.
• Reality Check:
  • Rumors of government support for quantum plays fizzled, popping narrative-driven bubbles.
  • “Their stock chart looks crazy because it does go very, very high. But then it's kind of precipitously comes down...” (18:51, Toby)
  • Private company values (e.g., OpenAI) haven’t yet been hit—lag expected.

5. Rapid-Fire Headlines (19:19–26:07)

PepsiCo Introduces “Naked” Cheetos & Doritos (19:19–20:59)

• Pepsi’s new “Simply NKD” line ditches artificial dyes and the signature (messy) powder.
• Despite no consumer demand, Pepsi is aiming for a healthier image.
• Quote: “No one asked for this, no one wanted this, but they're testing it out anyway.” (20:49, Toby)

Robinhood Offers On-Demand Cash Withdrawals via GoPuff (21:00–22:58)

• Robinhood and GoPuff introduce $6.99 same-day cash delivery to your doorstep in select cities.
• Hosts question the utility and safety—but it’s another step in Robinhood’s attack on legacy banks.

Uber Ski & Luxury Experiences (23:12–24:44)

• Uber launches “Uber Ski” for trips to major ski resorts; even allows Epic Pass purchases and large vehicle booking.
• Ann: “Uber’s getting really, really bougie.”
• Toby notes brands are catering to high-income consumers in a “K-shaped economy.”

Gender Dynamics in Podcast Hosting (24:44–26:07)

• New USC/Annenberg study: Only 33% of top podcasts have female hosts; just 8% in business/tech.
• Ann wryly: “Trying not to read too much into this. It's true crime.”
• Toby: “What do you call a group of guys talking? It’s a podcast.”
  • Top podcast slots show more gender parity, but the field is broadly male-dominated.

Notable Quotes & Memorable Moments

• On Burry’s Fund Closure:
  • “There’s a saying that the market can stay irrational longer than you can stay solvent.” (05:46, Toby)
• On Wild Hemp Market Shift:
  • “Hemp farmers were like, no, this completely undermines our entire business.” (08:57, Toby)
• On Cisco’s ‘Comeback’:
  • “If you look at its stock chart and you zoom out, you're like, oh, it is so close peak that it once inhabited.” (12:38, Toby)
• On Quantum Stock Hype:
  • “Holding the bags of these companies that are not making any revenue and don't even forecast revenue within the next decade.” (17:18, Toby)
• On "Naked" Snacks:
  • “No insight would ever suggest removing color from Doritos or Cheetos because these are fan favorites.” (20:49, quoting Pepsi exec)
• On FTC Podcast Gender Study:
  • “What do you call a group of guys talking? It's a podcast.” (26:13, Toby)

Timestamps for Major Segments

| Segment | Timestamps (MM:SS) | |---------|---------------------| | Michael Burry shuts down Scion Capital | 03:00–07:15 | | Hemp industry crackdown in gov’t bill | 07:20–10:56 | | Stock of the Week: Cisco & AI | 11:00–14:26 | | Dog(s) of the Week: Quantum/Spec Tech | 16:07–19:06 | | Rapid-Fire Headlines (Snacks, Robinhood, Uber, Podcasts) | 19:19–26:07 |

Tone & Takeaways

The episode blends sharp business analysis and financial insight with playful banter and fresh takes on current trends. Ann and Toby maintain a lively, tongue-in-cheek style while spotlighting real market risks and regulatory shifts behind the headlines.

For a deeper dive into stocks, check out Ann Berry’s podcast, Brew Markets.
For quick, informative news (with a side of fun), Morning Brew Daily remains essential weekday listening.