🍋 New Gig for Tech Bros
Business school enrollment has been dwindling over the past few years, and many top programs are counting on tech bros to save the day. MBA programs are eager to scoop up laid-off tech workers who are now facing a crossroads in their careers.
Good Morning! SVB Financial sent shockwaves through the finance world yesterday when they announced they will sell $1.5 billion in stock to cover outflow requests. SVB funds nearly 40% of American tech startups, and the news caused its stock price to tank by 60%. This sparked a broader sell-off in financial stocks, causing the four biggest U.S. banks to lose $52 billion in market value on Thursday.
Uber is considering spinning off its Uber freight unit, and Citadel’s CEO says he wants to use ChatGPT across the firm. And the budget report released yesterday calls on Congress to nearly double the capital-gains tax rate.
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1. Story of the Day: New Gig for Tech Bros
Business school enrollment has been dwindling over the past few years, and many top programs are counting on tech bros to save the day. MBA programs are now eager to scoop up laid-off tech workers who are now facing a crossroads in their careers.
Some top programs like Northwestern and Dartmouth are waiving GMAT test scores, and application fees, and even extending the deadlines for those who've been laid off since August. NYU, MIT, and Duke are also providing special accommodations.
Some experts think this is a savvy business move by business schools to boost enrollment during a time of dwindling applications. Others think it’s a bit sketchy and reeks of desperation, targeting vulnerable workers and encouraging them to take on massive debt.
Takeaway: Some current and former MBA students don’t think the move is fair. They say it took them over a year to apply for business school, and that programs have gotten too generous with trying to woo over laid-off tech workers.
2. Markets Rundown
Stocks closed lower after a rout across financial stocks.
Movers & Shakers
(+) General Electric ($GE) +5% on an optimistic outlook for airline margins.
(–) Silvergate Bank ($SI) -42% after the bank announced it will liquidate.
(–) SVB Financial ($SIVB) -60% after the bank announced a stock sale over liquidity concerns.
HNI Corp. will buy Kimball International, a commercial finishings company, for $485 million
CVC Capital Partners will invest $150 million for a stake in the Women's Tennis Association
Rapport Therapeutics, a drug developer for neurological disorders, raised $100 million
Temporal, a startup that helps companies write and run cloud applications, raised $75 million
Ghost Autonomy, an automated driving startup, raised $45 million
N2F, an expense management software provider, raised $26 million
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3. Top Reads
How we went from record savings to record debt in two years (NPR)
Even the ‘smart money’ traders are using Reddit for stock tips (CNN)
Why recession odds just spiked after Powell addressed Congress (YF)
Pre-owned Rolex, AP, Patek watch investments top S&P return over past 5 years (YF)
Powell changed everything this week on market’s view of interest rates (CNBC)
Wall Street’s most successful hedge fund politely told Powell to shut up (YF)
Elon Musk is planning on building his own town (WSJ)
Banks tumble as SVB ignites broader fears about the sector (Reuters)
Wall Street’s favorite trade hammered in bank stock meltdown (BB)
4. Book of the Day: Good Power
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Ginni Rometty led one of the world's most iconic companies, and in Good Power she recounts her groundbreaking path from a challenging childhood to becoming the CEO of IBM and one of the world's most influential business leaders.
With candor and depth, Rometty shares milestones from her life and career while redefining power as a way to drive meaningful change in positive ways for ourselves, our organizations, and for the many, not just the few—a concept she calls "good power."
Rometty's "memoir with purpose" combines the experiences that defined her life—personal hurdles, high-stakes decisions, passionate advocacy—with the actionable advice of a coaching session to highlight lessons that shape authentic leadership.
Behind-the-scenes stories and practical guidance offer us a blueprint for how we can all use good power to advance our careers, inspire our teams, improve our companies, and create healthier societies.
The book begins with raw, vivid memories from Rometty's youth and early professional years as she recalls the trauma and the role models that formed her belief that how we lead is as important as what we achieve.
She learns early on that good power is a choice available to everyone, even to those without money, status, or impressive titles.
“Ginni Rometty delivers a powerful combination of memoir, leadership lessons, and big ideas on how we can all drive meaningful change.”
5. Short Squeez Picks
6. Daily Visual: Annual US Discretionary Spending
7. Daily Acumen: Cooking Stuff
Steeping minutes: Green at 3, black at 4, herbal at 5. Good tea is that simple!
Food actually can be both cheap, healthy, tasty, and relatively quick to prepare. All it requires is a few hours one day to prepare many meals for the week.
Cooking pollutes the air. Opening windows for a few minutes after cooking can dramatically improve air quality.
Food taste can be made much more exciting through simple seasoning. It’s also an opportunity for expression. Buy a few herbs and spices and experiment away.
When googling a recipe, precede it with ‘best’. You’ll find better recipes.
8. Memes of the Day
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