🍋 Blackstone 🤝 Jersey Mike's

Sandwich chain Jersey Mike's weighing an $8B sale to Blackstone, plus Amazon's $150B plan for AI cloud dominance.

Together With

“Wrong decisions are part of life. Being able to make them work anyway is one of the abilities of those who are successful.” — Warren Buffett

Good Morning! Hope everyone had a nice weekend and those in the Northeast are safe following the earthquake. March’s jobs report was as good as it gets - and stocks rallied on the news. But Tesla is struggling after scrapping plans for a low-cost car. Sandwich chain Jersey Mike’s is considering an $8 billion sale to Blackstone. Junior bankers say they’ll quit after bonuses fall, plus a deep dive into the debate between investment banking and private equity.

If you are interested in getting in front of a smart, young audience of business leaders, bankers, investment professionals, policy influencers of over 600,000 people, then fill out this form, we’ll be in touch.

SQUEEZ OF THE DAY

How Amazon’s Taking on The AI Wave

Amazon’s gotten burned from making some bad bets, like the Fire Phone or the Just Walk Out stores. But the company sees an opportunity in the AI craze. Amazon is getting ready to drop $150 billion on the data centers that will power the AI boom and help the company keep its cloud computing crown fastened against rivals like Microsoft and Google. 

Despite Amazon Web Services (AWS) experiencing a slowdown in sales growth last year, Amazon is starting to sense a revival with demand for AI poised to skyrocket.

Over the past two years, Amazon has earmarked $148 billion for global data centers, plotting expansions in the usual tech hotspots and also venturing into new territories like Mississippi, Saudi Arabia, and Malaysia. This is significantly more than the commitments from cloud rivals Microsoft and Google, who are a bit more secretive about their data center spending.

Amazon's CFO hinted at opening the spending floodgates once more, and these data centers might be Amazon’s ticket to the generative AI gold mine. If Amazon can become the dominant, go-to AI data center company - they could be poised for a large slice of the AI revenue pie.

But Amazon's data center ambitions haven’t been problem-free: securing enough power remains a challenge. With data centers using so much energy, regions like Virginia are starting to feel the strain. Local opposition is mounting, and the energy demand from data centers is expected to nearly double in the coming 15 years.

Takeaway: Amazon Web Services has consistently been a powerhouse for Amazon, and its aggressive investment strategy to expand its data center operations underscores its belief in AI's potential. Despite the challenges, particularly in managing energy demands, Amazon's track record of resilience and adaptability suggests it's well-equipped to navigate these hurdles.

PRESENTED BY RAD AI

Add AI to Your Portfolio

Marketing is an art, not a science — or, at least, it was. 

Dubbed “essential AI” for brands, RAD AI decodes the language of the internet into actionable, highly valuable insights. These findings can be used to deliver outsized ROI, and sometimes, help brands avoid disaster.  

RAD AI is disrupting the $633B marketing technology industry and its potential is evident by the numbers…

  • $27M raised from 6,500+ investors, including VCs, and execs at Google, Amazon and Meta, and is also backed by the Adobe Fund for Design.

  • ~3x revenue growth from 2022 to 2023 — while landing major clients, including Hasbro, Skechers, Sweetgreen and more.

HEADLINES

Top Reads

  • 4.8 magnitude earthquake strikes NYC region (CNBC)

  • March jobs report was as good as it gets (YF)

  • Jersey Mike’s considering $8B sale to Blackstone (WSJ)

  • Junior bankers say they’ll quit after bonuses fall (NYP)

  • Tesla scraps low-cost car plans amid Chinese competition (YF)

  • Private lender Blue Owl pushes into insurance (WSJ)

  • Government pensions have investments in TikTok owner ByteDance (Axios)

  • Inside Big Tech’s underground race to buy AI training data (Reuters)

  • U.S. states where everyday Americans earn the most money (CNBC)

  • KISS deal could spark an NIL deal for other artists (Axios)

CAPITAL PULSE

Markets Rundown

Tech stocks lead a market surge after a jobs report blowout. 

Movers & Shakers

  • (+) Krispy Kreme ($DNUT) +7% because Piper Sandler says the McDonald’s deal will be a game changer.

  • (–) Altice USA ($ATUS) -5% after the communications company was downgraded by Wells Fargo.

  • (–) Enphase Energy ($ENPH) -7% after the solar energy company was downgraded by Citi.

Private Dealmaking

For more PE, VC & M&A deals, subscribe to our Buysiders newsletter.

BOOK OF THE DAY

Talk Money To Me

Everyone talks about the pillars of a healthy relationship: Compatibility, chemistry, honesty, loyalty, and respect, but too many overlook one of the most critical pillars…finances! Many cohabitating Americans feel uncomfortable discussing finances with their partner.

This is a huge problem because arguments about money are the second leading cause for divorce, right behind infidelity!

In this practical and no-holds-barred follow-up to his Wall Street Journal bestselling book The Restart Roadmap, host of the Trading Secrets podcast Jason Tartick will teach you the eight numbers you need to discuss with your partner and why.

From investing, managing cash flows, emergency funds to credit scores, Tartick will help you gain a comprehensive view of you and your partners financial compatibility

Net worth is not self-worth. Whether you're making six figures or deep in debt, being open about your finances and coming up with a plan of action together is the best way to ensure a healthy, lasting relationship.

“Financial compatibility is equally as important as emotional compatibility, and the only way to find out if you and your partner are a match is to TALK MONEY.”

DAILY VISUAL

Tesla Used Car Prices Have Fallen Significantly

Source: Apollo

DAILY ACUMEN

Road Less Traveled

Taking the road less traveled can be a powerful shortcut to success and fulfillment in life. By doing things differently than most people, you can gain significant advantages and accelerate your progress.

For example, being more consistent and persistent than others allows you to eventually reach a tipping point where your efforts compound into what looks like "overnight success" to everyone else.

Studying a topic in great depth rather than just superficially enables you to develop true mastery and expertise much faster. And combining your unique strengths and interests into a "hybrid value" offering sets you apart and increases your perceived worth.

The key is having the courage to deviate from the conventional path that most follow. While it may feel uncomfortable at first, the personal and professional rewards of these "life shortcuts" can be immense for those willing to embrace them.

In the end, your willingness to be different can become your greatest competitive edge.

ENLIGHTENMENT

Short Squeez Picks

  • Investment Banking vs Private Equity - which is better?

  • Why it's smart to build a 'me fund’

  • 4 habits to manage impulsive spending

  • 40 unconventional pieces of advice most people ignore

  • 15 simple lunch recipes that aren’t sandwiches or wraps

  • How to fall back asleep in the middle of the night

MEME-A-PALOOZA

Memes of the Day

 

 

What'd you think of today's edition?

Login or Subscribe to participate in polls.

Join the conversation

or to participate.