
Micron Joins the $1T Club & The Knicks Send MSG Shares Soaring
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Consider this comparison. PwC data found the percentage of CEOs who report revenue gains or cost reductions from AI is almost equal to the percentage who say they're still stuck. What separates these two groups? PwC points to a clarity issue. Even for CEOs, it's hard to tell what's AI hype, what's reality, and where this tech can make a tangible difference. Learn where AI can actually make an impact and what successful adoption looks like at pwc.com us brewai that's pwc.com/us/brewai good
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morning Brew Daily Show. I'm Neal Freyman.
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And I'm Toby Howell.
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Today, why Gen Z has gotten really into tanning beds Then there's a new
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entrant to the trillion dollar market cap club Micron. It's Wednesday, May 27th. Let's ride.
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The Oklahoma City Thunder are one win away from reaching the NBA Finals, but they're not even the best sports franchise in the state. The UV Okies, a WE bowling team from a senior living center in Tulsa, went viral on Instagram this week after revealing they've gone undefeated for the last five seasons. And their 2026 campaign has gotten off to a hot start as well, recently beating up on Town Village to go two for two this year. Toby, people are already asking where they can bet on this and I'm going to guess it's at Bingo night.
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Their Instagram page is hilarious because most posts, Most content gets 5 likes, maybe 50 likes if it really pops off. This one we bowling clip gets 44,332. Imagine being the social media manager and having to explain to your boss that hey, we're going viral on Instagram. But unfortunately it's because people really want to bet on Deborah rolling a perfect game. I will be the one to say it to It's a little suspicious that the UV Okies added another undefeated season to their trophy cabinet right after the enhanced games started letting athletes perform on steroids and performance enhancing drugs. Someone's got to test the Okies because this level of dominance is not natural.
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I'm going to guess they're on a lot of medication, not just taking a step.
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It's something I don't deserve to do.
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Spend $250 on your first campaign on LinkedIn ads and get a $250 credit for the next one. Just go to LinkedIn.com mbd that's LinkedIn.com mbd Terms and conditions apply. So it's Wednesday, but the market can't stop setting new all time highs. So we're going to bring you an emergency stock of the midweek segment because there's two companies that deserve it. The first is Micron, which just entered the 4 comma club. After a mega 18% run up yesterday, the market cap of the memory chip maker briefly touched $1 trillion thanks in large part the to a single analyst forecast, UBS more than tripled its price target from $535 a share to $1625 based on its assessment that memory demand is here to stay powered by hungry AI companies. What's crazy is that 12 months ago Micron was worth just $70 billion. But after a 75% jump in May alone, it's more than 3x so far this year to add that extra comma to its valuation. NEAL the trillion dollar market cap club used to be a very exclusive place, but now, now it's kind of like Soho House. They're letting anyone in. Micron is now the 10th American company to join in the 13th overall.
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And Andrew Lloyd Weber had it right. This is all about memory. The next stage of the AI race is agents. And agents require a lot more memory. Agents, remember are those AI systems that will take over your computer and do everything for you and they just do a lot of work and require a lot of CPU and memory. So a lot of these companies that produce memory chips like Micron are just going ballistic. I mean, just looking at a stock char, it's, it's a literal hockey stick. So if you invested in Micron a long time ago, you are sitting on absolute riches. Another big tailwind for the stock possibly is President Trump speaking of meme stocks and the president endorsing particular companies. On Friday, he said Micron. He was at a rally in New York and he said Micron. Boy, Micron's great. They're investing hundreds of billions of dollars. And it's true, Micron is investing $100 billion over 20 years. They're building the largest semiconductor factory in the US up in upstate New York. So this company is just a rocket ship right now, thanks to the memory crunch.
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Yeah, memory chips as a business used to be a little bit of a boom and bust sort of cycle. But right now what analysts are so excited about is that it looks like the demand is here to stay. It looks like it's going to be persistent shortages that will be able to charge elevated prices for the chips that they do have in companies. Hyperscalers like Meta, Microsoft, Amazon, all these big tech companies are willing to pay a premium just to get their hands on memory because there is such a supply crunch right now. And when you have that better visibility into demand, then you can start valuating the evaluating the company properly and saying like, hey, earnings are going to keep going up on a consistent trajectory. And now this company looks very undervalued actually. And we were talking before the show, Micron, despite this crazy run up, is still trading at a pretty low forward price to earnings ratio. It's just about 8.4% right now. A lot of analysts think that it's actually going to get closer to 15x. And there's no reason that Micron should trade at a discount quote, unquote, to what Nvidia trades, at which Nvidia is the most valuable company in the world. So in a lot of ways, despite it reaching $1 trillion, it still looks undervalued compared to some of its peers.
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Yeah, The S&P 500 trades at a price to earnings ratio of 21. So Micron is just at 8. And this memory chip shortage and memory chip surge among companies is not just an American story. Even though 10American companies are worth $1 trillion. In South Korea just this morning, SK Hynix, which is a huge memory chip maker, also reached $1 trillion market cap. In Samsung earlier this year, another memory chip maker that also makes your Phone also reached $1 trillion. So it's boosting the South Korea stock market as well because those two companies account for 40% of that entire market.
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That is insane. I do remember when a trillion dollars used to mean something in this business. Like it was a big deal and you know, Apple cross it when Saudi Aramco cross it. These were like news stories that, I mean, I guess we're still covering it right now, but the fact that there's double digits trillion dollar companies just shows, I guess the law of compounding returns right there. Because again, it used to be like, wow, four commas is crazy. Now it's just another day of the week. Our second half of the emergency stock of the Week segment belongs to Madison Square Garden Sports Group, AKA the owner of the New York Knicks. Turns out that investors like when Mikhail Bridges can't miss and Jalen Brunson turns into the best point guard in the league. The stock jumped over 4% yesterday following the Knicks booking their ticket to the finals and is now up 41% so far this year. While the basketball narrative is fun to point to and does contribute to its bottom line, MSG is more than just a place for Karl Anthony Towns to show off his range as a passing big man. There's a plan that investors love to split up the Knicks and the NHL's Rangers and into two separate publicly traded companies. Right now, owning stock in MSC means you own a piece of both franchises. But many analysts think that the market currently undervalues the franchises when bundled together. But also the basketball does help the cheapest seats to get into Game three of the finals at the world's most famous arena are 30$700. Some courtside seats are pushing $150,000. I don't know if even Timothee Chalamet can afford it if the series goes to seven games. Might have to ask Kylie for a loan. Neil the Knicks in the Finals. A speculative stock market boom around a burgeoning technology. Is it 1999 again?
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Sure seems like it, except I'm a little older and wiser. This is James Dolan, the CEO of msg, just going up to the plate like Babe Ruth calling his shot and then hitting a home run. Back in January he gave his first media appearance in two years and said yeah, we want to get to the finals and we should win the finals. This is sports, this is business and anything can happen. But getting to the finals we absolutely got to do and the Knicks have done it in New York is in an absolute tizzy because of it.
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I think that the pent up demand for the finals is something people are sleeping on because not going to the finals in, you know, the world's biggest media Market Since 99 means not only is the casual fan raring to go and ready to go to these watch parties outside of msg, but you have celebrities as well. You have all these wealthy corporate buyers that are willing to splash out hundreds of thousand dollars on seats because a lot of these people have gone their entire adult lives without seeing something like this. So even though, you know it's been a well written narrative that New York is rare in for a championship, I still think people are underestimating demands. The other part of why Wall street is pretty high on MSG right now is that obviously the playoff run boosts short term ticket revenue, short term sponsorships, merchandise, all the things that happen when a lot of people show up to a game. But I think a lot of analysts are saying that, hey, sports franchises are this very valuable commodity. Even in recent years they realize how big and how, you know, short the the pool is to own a team like this. We've seen valuations just absolutely explode across Major League Baseball, across the NBA. So the fact that you could get the Knicks potentially and the Rangers in one company is something that a lot of people are kind of their eyes are as big as saucers because those are two very scarce assets right there.
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And I'm circling the date of June 16th on the calendar now. If the Knicks and whoever wins the Western Conference finals play in a Game six, it'll be in New York. At the same time, there's going to be a World cup game over at MetLife Stadium in New Jersey between France and Senegal, which is one of the most hyped first round for group stage matchups of any. So Madison Square Garden sits right on top of Penn Station, and that's where you need to go to if you want to get to the France Senegal match. So there's going to be 80,000 people going to that match, as well as 20,000 people, a lot commuting into Penn Station to go to the Knicks game. So that's going to be the cluster of all clusters at Penn Station that day on June 16th. So whatever happens, I don't know if I care who wins the NBA Finals, but I just want there to be a Game six to see what happens at Penn Station that day.
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Neil's in it for the logistics. All right, moving on. One of the central promises of the AI revolution is that it's going to make businesses and employees more productive and efficient. Single workers can take on 10x the tasks with AI by their side. But that premise is running into cold, hard economic reality, headlined by what's going on at Uber? Uber's operations chief Andrew McDonald admitted over the weekend that the company can't clearly prove that AI spending is actually leading to a better product. It's been an expensive realization to come to Uber engineers are chewing through so many AI tokens that the company has burned through its entire 2026 Claude code budget already in May. But this is what lies on the other side of the token maxing philosophy many companies adopted where higher AI usage was treated as inherently good. Most companies spent the Last few years acting like AI was basically free because venture capital subsidized everything. But now the bill is arriving, and it turns out running AI at the enterprise level is, is expensive as heck. Like when the check finally shows up after a night out this earnings season, Salt, Metta, Pinterest, Shopify, Spotify and others admit that, yeah, this whole AI thing is dragging on margins rather than enhancing them. Neil, to recap, costs are hitting margins, prices are going up, and ROI is difficult to prove. Not great, Bob.
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It sure is expensive. 45% of companies surveyed by the cloud cost firm Cloud Zero said they spent more than $100,000 a month on AI in 2025, which was up 20 from 20% the year before. And as McDonnell, the Uber executive, said, I can seem free if you're, quote, just a user sitting there coming up with interesting use cases. So if you're just a regular Uber software developer and you're a software engineer at any company, you're just using AI and you're saying, okay, this is what my company provides for me. But then when you're the CFO or CTO of a company, you're looking at the bill and what you're paying for in terms of enterprise software, and you're seeing, oh, I'm paying for cloud code for my employees. And actually, we just used up our license by May. And then the CEO comes to you and says, so, sir, you know, what do we have? What do we have to show for all of this token maxing? And they're like, actually, I don't know, if we made the Uber app even better, then that's a huge quandary.
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And the quandary for the AI companies themselves, like OpenAI and Anthropic, is that cheaper models are arriving and all of a sudden maybe this product that we've building is a commodity. It's not actually something that has a defensible moat. Because a lot of Chinese AI companies are coming to companies and saying, hey, we can do 90% of what Claude Code does, but at literally 9x cheaper the cost. And that really undermines, you know, the whole AI revolution, essentially. If someone can come in and say, yeah, maybe we can't do the upper, upper levels of the, what advanced reasoning models can do, but if we can do the bulk of 90% of what you need, then at a much cheaper cost. And that is, you know, a very scary thing for a lot of companies. And we've seen even Google's Sundar Pichai saying that, hey, we understand you're blowing through your token budgets way too quickly. They've been highlighting their Gemini Flash model rather than their, you know, top of the line Gemini model, saying that this is the lower cost alternative. So maybe we're reaching a phase where lower cost is the value prop rather than more powerful.
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The question is, how much does this ripple across corporate America? Uber cto, this is kind of big news because he was the first executive to come out and say, we're not seeing much ROI on AI, but we'll see how other companies respond. And usually there is a herd mentality. CEOs are a little bit of sheeple and they'll say, if somebody goes first, then they give me license to say. But we're already seeing some rumblings. Duolingo is walking back its decision to use tokens and AI usage as a metric on employee review. The CEO said it felt like rather than being held accountable for the actual outcome, we were trying to just push something that in some cases did not fit. We have Microsoft reportedly canceling some of its cloud code licenses and going to the cheaper alternative. GitHub, Copilot CLI and Nvidia executive just said, for my team, the cost of compute is far beyond the cost of the employees. So here we have Mark Zuckerberg and other executives saying, yeah, we need to cut. We need to cut 10% of our workforce because we have to pay for all this AI stuff. And then we have an Nvidia guy coming in saying, look, this is way more expensive than our human employees. So it kind of undermines that case as well. But this is really crucial for OpenAI and Anthropic, whose $800 billion valuations are underpinned by them selling enterprise AI to these companies. So we'll see what other companies have to say about their AI usage and whether they can see any return on this investment.
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I think it's a delicious irony, too, that Uber is the company saying that, hey, I used to be cheap. It used to be subsidized by. By venture capitalists. Now we got to turn on the monetization channels. That's literally what Uber did throughout the entire, you know, 2010. There was the golden era where you could get a $4 Uber ride, and everyone's like, this is awesome. Then they layer on the costs. A similar thing is happening on in AI right now. All right, we're going to take a quick break and come back with the story about tanning right after this.
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Toby, what if I told you you had to pay me $1,000 right now?
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I'd be in deep trouble.
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Great, because all my investments are of the emotional variety.
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No, I missed that. I usually meditate during our team meetings.
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Start at PLA AI/BREW use code BREW for 10% off anyone else notice the use are looking extra bronze these days. It's a real trend. According to the New York Times, Gen Z has gotten very into tanning, both from the sun and tanning beds. And it's worrying dermatologists who've drawn a direct link from UV exposure to skin cancer. But younger adults seem to be shrugging it off. In a new survey on sun habits from the American Academy of Dermatology, 25% of Gen Z respondents said they were concerned about developing skin cancer in their lifetime, much lower than 39% of the general population. 20% said getting a tan is more important than avoiding skin cancer, compared to 14% of the general group. And in a 2024 survey, one quarter of Gen Z said looking good now was worth it, even if your looks deteriorated later on in life, surging interest in getting your tan on is driven from the top of American society down and bottom up. At the top, Health and Human Services secretary and snake wrangler RFK Jr. Frequents tanning beds and recently pulled an FDA rule that would ban minors from using them, citing bodily autonomy. And from the bottom up, a growing number of social media influencers promoting tan maxing and decrying sunscreen have made being dangerously tan cool to their peers. Toby as the Times points out, this is very curious. For a generation that cares deeply about sleep, doesn't drink or smoke, wants to eat clean, they're adopting what experts consider a very dangerous passion for being barraged by UV light.
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I had no idea how powerful tanning beds were. I mean I knew as a concept like how they worked. But UVB exposure is roughly equivalent to equatorial noon sunlight. So that is going to the most sun exposed place on earth and sitting there, UVA exposure is roughly 15 times stronger than anything naturally found on earth. And that's what you're getting hit with when you're laying in a tanning bed. The World Health Organization classifies tanning beds as a Group 1 carcinogenic that is in the same category as tobacco, asbestos and plutonium. That's a tanning bed that the youth are going to. But psychologically, one explanation for this is sort of what you were describing there, that a lot of people are willing to have good looks now and sacrifice down the line. One therapist described Gen Z as a generation as having a reduced sense of agency over the future. They feel like, you know, climate change is spiraling out of control. Why should we care about anything 20, 30, 40 years down the line when it's all about the here and now? It's kind of like a YOLO mentality. So fascinating the psychological component, but also fascinating at just how dangerous of a pastime this actually is.
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Moving on. As beef prices skyrocket, some of Texas's most storied barbecue joints are getting smoked. According to the Washington Post, the effect of higher meat costs has been, quote, close to cataclysmal for the more than 3,000 barbecue restaurants across the state. And not even the most beloved spots can survive the bloodbath. The Brett's to the west of Houston, Kirby's, Sauber and Fort Worth and right on Taco and barbecue in East Texas have all shut their doors recently because the economics just doesn't add up. The Post reported the only thing that saved Brotherton's Barbecue near Austin was when the owner begged fans on Facebook to lend a hand. They wrote, we were hoping it wouldn't come to this, but we desperately need your help. The hard truth is that we are on the brink of having to close our doors for good. And fans showed up in force. In the past year, brisket prices have shot up 28% to over 550 a pound, forcing pitmasters to make the painful decision to raise prices for customers or close entirely. And while brisket is the most important cut in Texas barbecue, every part of the cow is getting pricier. Steak prices were up 17% in the past year and ground beef is up 19% to reach a new record of 690 per pound, frustrating meat eaters not just in Texas, but across the country. Toby it's survival mode out there in the barbecue world.
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Mean, I'm looking at the chart of the price per pound for a pound of beef, and it looks like micron at this point, it really just has accelerated as that cattle herd has shrunk to a 75 year low in the US and it's really bad for Texas, as you were describing, because Texas brisket is, you know, the name of the game down there. That is what people go to. It's the centerpiece of most menus. And a lot of restaurant tours are saying now they cringe when someone orders brisket because they know that the margins on that are so razor thin for them. So it is, it is fascinating that you don't want people to order what the main event is on your menus. That makes it really hard to run a profitable business.
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Yeah, they're getting creative. I mean, first of all, here's what you can do. You can raise prices. So it's not crazy to see brisket now at a Texas barbecue joint for $40 a pound. I mean, some are going to $38, but we're starting to see that $40 barrier being breached. Another thing you can do is just limit brisket to one day a week, which is some, what some places are doing as well. And then others is, yeah, you just can't use brisket. They're moving to other cuts of the animal, like beef cheek, which is traditionally used for barbacoa. It mimics the fatty texture of a brisket. So restaurants are just having to get creative because they just can't afford to put brisket at them on the menu at prices that people can afford.
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And the issue too is this is political because you want cheaper beef, but you don't necessarily want to import. Trump has been trying to lower beef Prices. But a lot of cattle states are saying like, hey, we do not want to allow low tariff beef imports. We do not want to, you know, undermine our livelihood just to push down beef prices. So it's a little bit of a catch 22 where everyone doesn't, no one wants $40 brisket. But also you don't want foreign cattle coming in as well. So that's part of the issue. My final say on this is I don't like brisket that much.
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Well, how do you had it in Texas?
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I guess not. I have, I've been to, what is it, Terry Black's in Austin. But I don't even think I ordered brisket because I love pulled pork. So maybe I'm actually the ideal customer for them because I don't go in going for the expensive brisket. I really just want a great pulled pork sandwich. I am saying this so someone puts out a place and says, you need to go here.
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I'll tell you right now, Lockhart, Lockhart, south of Austin, on the way to San Antonio, kind of. And it just has the best brisket in the world. So that's where you go. Lockhart, Texas. There's a bunch of places there. And go get yourself some brisket. And I think you will be converted.
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Look at that. I achieved my goal right here with my own co host.
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Let's bring to the finish with some final headlines. Heart disease, you've been put on notice. A new experimental gene editing treatment from Eli Lilly lowered cholesterol levels dramatically in a new study, raising hopes that a one and done treatment could help prevent the leading cause of death in the United States. It was a small phase 1 trial, but it turned heads in 35 patients with genetically high levels of LDL cholesterol, the bad kind. Those who got the highest dose saw their LDL levels plunge by up to 62%. While there are plenty of medicines out there for high cholesterol, the main problem is that patients don't stay on them because at least for statins, you need to take them every single day. Sec. Theorese and the former CEO of verb, which is the company Lilly scooped up for this particular treatment, estimates that just one half stay on their meds for less than a year. That's why some cardiologists are calling this one shot wonder a game changer while cautioning lots more data is needed before declaring victory.
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So the way this works is you get an infusion where a gene editing machine, as they call it, wrapped in fatty particles, delivers into your bloodstream via the Liver and it changes one DNA letter that just totally disables this problematic gene that comes to, that comes into play when you have these elevated LDL cholesterol levels. The difference between how that works versus what the other, you know, medicines on the market currently do is that a lot of these statins just repeatedly block that gene over and over again. This one just turns it off altogether. Which is why the one and done approach has a lot of people their ears perking up. Because again, even though that there are plenty of treatments out there, if, if you don't stay on the treatments, then they're not as effective. So one and done leads to endless possibilities, leads to the fact that maybe this just becomes part of primary care. You just get your shot, you never have to really think about it again. That is why, you know, a lot of people have some verve for verve therapeutics and Eli Lilly in general right now. So gene editing has always been kind of this on the forefront technology. When you get studies like this, you start to realize how it could impact daily lives going forward. Moving on. If you're really, really good at monkey bars and Olympic gold medal could be in your future. The Olympics is adding an obstacle course event to the modern pentathlon in a bid to make one of the game's weirdest events even weirder. So the modern pentathlon is a bizarre mashup of fencing, swimming, running, shooting and horseback riding in 1912. That mashup represented what modern soldiers were supposed to be good at at the time. But in the years since, the equestrian portion has become a controversial headache, with athletes at the Tokyo Olympics complaining about unfair horse assignments and a coach appearing to punch a horse mid competition. Enter Ninja Warrior. The Olympic obstacle course will be designed and licensed from the Japanese broadcaster behind the original competition. So you're going to get something very similar to what you'd see on tv. Sort of cool. They are way cooler than horse riding, I think.
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Way cooler than breakdancing at the Paris Olympics. I can't imagine that someone with the skill level of ray gun would be allowed on this obstacle course. I am pumped for these Olympics. I mean we're getting new sports like flag football, which is going to be so fun and squash. And now we realize that we're going to get a ninja warrior there too. I mean this is going to be awesome.
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I think this is the Olympic committee realizing that entertainment value is better than staying true to like the events core. Because again, the modern pentathlon was just bizarre. No one even knew why any of Those events were smushed together. They're like, what if we just added a super entertaining thing that has already been proven out on other television programs? Maybe more people will watch it. So I do like that approach. Like, let's just have world class athletes doing the coolest things possible and people will turn in.
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And finally, we close out every Wednesday show with suggestion box where Toby and I offer some recs to help you live a more interesting life. Toby, why don't you go first?
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All right, I'll go first. My recommendation comes as I've reached the point in my life as I've started to accumulate stuff. And since I live in a 500 square foot apartment, that stuff becomes a little overbearing at times. So I'm looking to declutter. There's obviously the Marie Kondo method of getting rid of anything that doesn't spark joy, but I like the poop method instead. Imagine an object covered in poop. Would you still want it? Would you go through the trouble of trying to clean it and save it? If the answer is no, get rid of it. If the answer is yes, poop on it. No, I'm just kidding. Don't poop on it. Just keep it. So if you want to declutter, use the poop test.
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I thought poop was going to stand for, like an acronym for something.
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Just. I have no idea where I saw this, by the way. It's just been floating around social media, but whoever originally came up with it, it completely works. It works very well with clothes too. I really don't like this that much. Like, if this got a stain on it, it's going in the garbage. So don't use Marie Kondo. Use the poop method.
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Okay. Mine is only slightly less disgusting. It's more of a conversation starter. And it's Bryce Harper's unique way of applying toothpaste. Is it deranged or genius? You tell me. So Bryce Harper, a great baseball player for the Phillies, posted a viral TikTok of him brushing his teeth in the bathroom. And somehow that's the least bizarre thing about all of this. Instead of applying the toothpaste to the brush like a normal person, he casually squeezes it from the tube into his mouth, then starts brushing from there. I did some digging to see if he was the only person who brushed his teeth this way and did find some Reddit posts of people asking, am I weird? Because I squeeze the toothpaste into my mouth first. So of course I had to try this last night and it worked. I'm not sure it's better than the traditional way, but you just kind of eat toothpaste, then start brushing.
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This has me in a blender because I saw that same TikTok and the caption basically was, you are not prepared for how Price is going to apply the toothpaste. And I absolutely was not prepared. I'm trying to think of the cleanliness aspect because, I mean, I share a bathroom in a toothpaste bottle with my fiance. Is it grosser to put it in my mouth or is it grosser to actually, like, rub it on my bristles itself? I immediately said that I thought it was going to be grosser to put in my mouth, but maybe it is cleaner going forward. I am in a blender on this and I guess I'm going to have to try it.
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Try it. The. I guess the only advantage besides cleanliness, which I didn't even think about, is that you lose some toothpaste residue if you put it on the brush potentially and you pour water on it to rinse it, and then maybe some toothpaste falls off. Does that ever happen?
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Does he have water in his mouth first? Because if not, you're just injecting. Oh, that.
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What I did was put it up to my mouth and just, like, eat it. Like you just, like, suck it in, like a little dab and then you rinse your toothpaste and then you start brushing and it works. But I just don't know if it's better than the regular method. I'll try it again tonight and you should as well let me know. Yeah, I also so think I hit it. That is all the time we have. Thanks for starting your morning with us. Have a wonderful Wednesday. To share your thoughts on the episode or anything else, send an email to Morning Brew daily at Morning Broadcom or DM us on Instagram @me Daily Show. Let's roll the credits. Emily Milian is our supervising producer. Raymond Lu is our senior producer. Our producer is Olivia Graham and our associate producer is Olivia Lake. Technical direction by Nina Miller. Hair makeup is practicing to unseat the W.E. bowling dynasty. Devin Emery is our president and our show is a production of Morning Brew. Toby, did you take the elevator to our floor this morning? I did.
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You could say I was elevated here.
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Those are pretty sweet perks for just a $395 annual fee.
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The sweetest smart business. Better travel terms apply. Go to capital1.com Morning Brew.
On this energetic Wednesday morning episode, hosts Neal Freyman and Toby Howell break down two major stock market stories: Micron's meteoric rise into the trillion-dollar club and the impact of the New York Knicks’ playoff run on Madison Square Garden Sports stock. The hosts also tackle the skyrocketing costs (and questionable ROI) of enterprise AI, Gen Z's tanning trend (and its health concerns), the economic struggles of Texas barbecue joints, cutting-edge gene editing for cholesterol, and more. Their trademark witty banter and sharp analysis makes for an engaging mix of business news, pop culture, and life tips.
Micron's Stock Soars: The memory chip company Micron makes headlines with an 18% stock jump, momentarily touching a $1 trillion valuation after UBS analysts tripled their price target, predicting robust, sustained demand due to AI agents needing more memory.
Industry Context: Micron is now the 10th US company to cross the trillion mark. Globally, SK Hynix and Samsung (also memory makers) recently joined the club, symbolizing the massive AI-driven demand for memory chips.
Playoff Hype Lifts MSG Stock: Madison Square Garden Sports (MSGS), owner of the Knicks and Rangers, sees its stock jump 41% YTD after the Knicks clinch a Finals spot—driven by both game excitement and a possible split of its two teams into separate companies.
Scarcity Value and Market Enthusiasm: Investors are drawn by the rarity of owning marquee sports franchises. A corporate split could unlock higher valuations for each team.
New York Sports Fever: The prospect of overlapping Knicks and World Cup games in NYC on June 16th has Neal anticipating total logistics chaos at Penn Station.
AI Productivity Hype Meets Budget Reality: Uber's COO admits they can’t link AI investment to product improvement, and they've already blown through their AI budget just five months into the year.
VC Subsidies Are Gone: As AI shifts from being venture-subsidized to a real cost center, companies like Meta, Pinterest, Spotify admit margins are taking a hit.
Low-Cost Competitors & Commoditization Risk: Cheaper AI models from Chinese firms threaten to turn foundational AI into a commodity, pressuring US leaders like OpenAI and Anthropic.
Shifting Attitudes: Some companies (Duolingo, Microsoft) are walking back their AI spending metrics. A possible "herd mentality" might take root if more execs publicly question AI ROI.
More Tanning, Less Concern: New data shows Gen Z is embracing tanning (outdoors and beds) while expressing less concern than other groups about skin cancer—only 25% are worried, compared to 39% of all ages.
Danger of Tanning Beds: Toby details how tanning beds expose users to UV levels equivalent (or worse) than the most extreme sunlight, with the World Health Organization rating them as severely carcinogenic.
Psychological Factors: Some experts think Gen Z’s "YOLO" mentality is driven by a lack of faith in the future, making them prioritize present appearance over long-term health.
Barbecue Crisis: Rising beef prices are forcing famed Texas barbecue joints to close, with brisket up 28% YoY, steak up 17%, and ground beef up 19%. Some spots limit brisket sales or pivot to less pricey cuts.
Political Angle: Domestic cattle producers resist pressure to lower tariffs on beef imports, leading to a supply squeeze and price spikes.
Hosts’ Preferences: Toby confesses a preference for pulled pork over brisket, prompting brisket recommendations from Neal.
Gene Editing for Cholesterol: Eli Lilly's experimental one-time gene editing treatment slashes LDL cholesterol by 62% in early trials, promising a future of "one-and-done" heart disease prevention.
Olympic Modern Pentathlon Adds Ninja Warrior-Style Obstacle Course: To replace the controversial equestrian segment, the new challenge will look like Japanese TV’s "Ninja Warrior."
Decluttering with the “Poop Test”:
Bryce Harper’s Viral Toothpaste Hack:
On the proliferation of $1T companies:
On corporate herd mentality and AI spending:
On Gen Z’s approach to risk:
On Texas barbecue economics:
On decluttering:
On brushing teeth like Bryce Harper:
Witty, light, and fast-paced, the show blends sharp business and tech analysis with pop-culture punchlines, anecdotal commentary, and lively co-host interplay. The hosts never miss a chance for a sly joke, a viral reference, or a friendly jab at one another.
For business, tech, or sports fans—or anyone with an interest in daily news and cultural trends—this episode packs expert commentary with a side of wit, providing both useful insights and entertaining listening.