🍋 End of Big Business?

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Good Morning! April’s inflation numbers look better than expected, and the CPI index cooled for the 10th straight month. But one NYC restaurant (Mischa) is taking advantage of high inflation by debuting its new $29 hot dog.

Tucker Carlson’s plan to start a new show on Twitter erased $235 million in value from Peter Thiel-backed video platform Rumble. Carl Icahn is facing the heat after a short seller report and a federal probe. Bed Bath & Beyond’s competitors are trying to capitalize on the retailer’s demise. And First Citizens Bank announced it made $9.8 billion from the SVB deal.

Today’s sponsor, Zurp is changing the credit card game, offering perks such as festival passes and concert tickets, and even a cash account that pays up to 5% APY.

1. Story of the Day: End of Big Business?

Don’t worry, AI isn’t coming to take your job (at least not yet). But some economists think AI could still spell the end of big business in America. With AI firms like OpenAI revolutionizing the way work is done, companies with bloated bureaucracies and large workforces may struggle to keep up.

Big businesses have become an integral part of the American economic story for the past couple of centuries, and more Americans work for big companies than for small ones. But as AI startups continue to grow and develop, they're pointing towards a future where companies operate with leaner workforces and automation takes care of routine tasks.

Consider the contrast between OpenAI, a startup with only 375 workers, and Meta, a company that still has 60,000 employees even after massive layoffs. OpenAI relies heavily on automation and AI to streamline processes and increase efficiency, while Meta may be bogged down by its cumbersome structure.

Big Tech continues to lose its luster, we could see top talent gravitate toward lean and agile startups that use AI. Many of these startups are privately held and could become extremely lucrative.

Takeaway: Leaner workforces still have their challenges and are a little bit riskier. Leaner startups need to make sure they have a slam-dunk team that oversees the automated work. Sometimes that corporate bureaucracy and gridlock aren’t as bad as we think it is - it only lets the best ideas get implemented.

2. Markets Rundown

Stocks closed higher after a cooler-than-expected inflation report.

Movers & Shakers

• (+) Celsius Holdings ($CELH) +22% after the energy drink company announced record revenue.

• (–) Topgolf Callaway ($MODG) -13% as the Covid golf craze might be waning.

• (–) Icahn Enterprises ($IEP) -15% after the company disclosed a federal probe.

Private Dealmaking

• Syneos Health agreed to be taken private for $7.1 billion

• Orphan Biovitrum agreed to buy cancer drug developer CTI BioPharma for $1.7 billion

• 8fig, a provider of supply chain management tools, raised $140 million

• Ace Turtle, a supply chain platform, raised $34 million

• Hygieia, a digital diabetes therapeutics company, raised $22 million

• Slash, an online banking platform, raised $19 million

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3. Top Reads

• Why airline flyers are fuming (Axios)

• The inflation slowdown may have ended in April (NYT)

• Miami’s love affair with crypto is souring (WSJ)

• Here’s everything Google just announced (CNBC)

• NYC’s rental inflation surges by most in two decades (BB)

• The macroeconomics of crypto demand (Axios)

• What would happen if Social Security’s surplus ran out (YF)

• Airbnb sees record bookings despite recession fears (CNN)

• How inflation is still crushing consumers (YF)

• Private equity chief is worried about debt default, not AI (Axios)

4. Book of the Day: We Need To Talk About Inflation

From investors and monetary authorities to governments and policy makers, almost everyone had assumed inflation was dead and buried.

But now people the world over are confronting a poisonous new economic reality and, with it, the prospect of vast and increasing wealth inequality.

How have we arrived in this situation? And what, if anything, can we do about it?

Celebrated economist Stephen D. King—one of the few to warn ahead of time about the latest inflationary upheaval—identifies key lessons from the history of inflation that policy makers chose not to heed.

From ancient Rome through the American Civil War and up to the asset bubbles of today, inflation stems from policy error, sovereign greed, and a collective loss of faith in currencies.

We Need to Talk About Inflation cuts through centuries of bad judgment and misunderstanding, offering a means to intervene now—so we can begin to tackle the political and social upheaval unleashed by inflation.

“Everything you wanted to know about inflation but were afraid to ask.”

5. Short Squeez Picks

• Daloopa is giving Short Squeez readers access to ten financial models (any public company) if you sign up for a free account on their website

• 9 easy ways to make your life a little better

• Why can’t you get any work done?

• Wealth, happiness, and the pursuit of enough

• How to create a productivity plan

• What monks can teach us about paying attention

6. Daily Visual: Bed Bath & Beyond Competitors Seek to Capitalize on Retailer's Demise

Share of Bed Bath & Beyond shoppers who also shopped at other retailers

_{Source: Axios}

7. Daily Acumen

Instead of seeing challenges and setbacks as things that happen to you and hold you back, you can reframe them as opportunities for growth and learning.

Life is full of ups and downs, and it's easy to get caught up in negative thinking when things don't go as planned. But when you adopt the mindset that life is happening for you and not to you, you open yourself up to new possibilities and perspectives.

Every experience you have, whether good or bad, has the potential to teach you something valuable. The challenges you face can help you develop resilience, problem-solving skills, and a greater sense of empathy and compassion for others.

When you start seeing life as something that is happening for you, rather than to you, you take control of your own narrative. You become the author of your own story, and you have the power to shape your own destiny.

So, embrace the challenges and setbacks that come your way, and use them as opportunities to learn and grow. Remember that life is happening for you, and you have the power to make the most of every experience.

8. Memes of the Day

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_{¹ – It can take up to 60 days after your first repayment to report positive history related only to your Zurp Card activity, subject to your account remaining in good standing. On-time payment history can have a positive impact on your credit score, and late payment history may negatively impact your credit score. Even when we report positive credit history relating to your Zurp Card activity, your credit history and score may be impacted by your activity outside of your Zurp Card, as credit histories and credit scores are built by credit bureaus based on a number of factors, including the financial decisions you make with products outside of the Zurp Card.}

_{* Annual Percentage Yield (APY) may change at any time without notice. Valid as of 3/20/23. No minimum balance to open. Fees may reduce earnings. Cardholders must make at least five point of sale transactions or receive one direct deposit in the same calendar month to earn advertised APY. Your Cash Account will earn 5.00% APY on your Monthly Average Available Balance up to $2,000, and any Monthly Average Available Balance in excess of $2,000 and up to $250,000 will earn 4.27% APY. Please refer to https://zurp.com/terms for more information.}

_{** Banking services provided by First Pryority Bank, Member FDIC. Zurp, Inc is a financial technology company, not a bank. The Zurp card is issued by First Pryority Bank pursuant to license by Mastercard International®}