Good Morning! Meta reportedly spends $23 million annually on Mark Zuckerberg’s security, more than any other publicly traded company. Billionaires have been underperforming the S&P 500. Trump says he won’t remove Jerome Powell and senate DOGE chief vowed to axe Biden's 'WFH' extension for federal employees.

Another bribery case cost McKinsey $122 million, TikTok is one step closer to a U.S. ban, and investment bankers are expecting a blockbuster 2025.

Plus, health insurance backlash grows, Starbucks’ CEO wants customers to get their coffee order in less than 30 seconds, and it’s never been more expensive to visit New York City.

Need the perfect gift idea? Shop Italian-made luxe gifts like cashmere shirts, leather jackets, wool trousers, and more from Luca Faloni. See the Holiday Gift Guide here.

_{SQUEEZ OF THE DAY}

No IPO? No Problem

An IPO was once every startup’s dream, a pathway to visibility, capital, and massive payouts for employees and investors. But today, IPOs are losing their shine due to stringent regulations, disclosure requirements, and market risks. Just take a look at the state of the IPO market since the Fed signaled it would start raising rates in 2021:

Companies are now staying private longer, with the median IPO age now 10 years, up from 6 in 2000. This has left employees and early investors searching for liquidity without the wait.

The solution? Tender offers—private stock sales to pre-selected investors. These deals have exploded in popularity, with over $6 billion in shares traded this year, nearly double last year’s total.

SpaceX, a leader in the trend, holds biannual offers, while companies like Fanatics and Canva have embraced the model. Fanatics recently allowed employees to sell $100 million worth of stock.

For startups, tender offers are a game-changer. They let employees and investors cash out while avoiding the chaos of an IPO, and companies retain control over their operations.

But critics argue these deals are risky and exclusive, shutting out ordinary investors and limiting transparency. Some lawmakers are pushing to open private markets to retail buyers, but for now, tender offers remain an insider’s game.

Takeaway: Tender offers are rewriting the playbook for private companies, giving them the perks of an IPO without the downsides. As the trend grows, debates around access and fairness are heating up, but startups and employees are reaping the rewards for now. Why go public when you can just go private... and richer?

_{PRESENTED BY LUCA FALONI}

Italian-Made Luxury Gifts For Men

The best gift is one he didn’t even realize he wanted. 

So give him something luxurious from Luca Faloni. Timelessly sophisticated and proudly Italian, these wardrobe essentials will please any guy in your life (or yourself). 

• Best sellers: Cashmere sweaters, cotton shirts, and leather jackets

• Denim jeans, cashmere joggers, and wool trousers

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Act now, and you’ll score complimentary gift wrapping with a personalized note + 10% off your first order when you sign up for the newsletter. 

Shop Luca Faloni’s Gift Guide and find the perfect gift.

_HEADLINES

Top Reads

• Meta spends more than any U.S. public company keeping Zuckerberg safe (Sherwood)

• Payrolls increased 227,000 in November, more than expected (CNBC)

• Investment banks eye 2025 income boom as Trump drives deal rebound (YF)

• Trump says he will not try to replace Fed's Powell (YF)

• Senate DOGE chief vowed to axe 'WFH' extension for federal employees (Fox)

• Federal appeals court upholds law requiring sale or ban of TikTok in the US (CNN)

• Bribery claims cost McKinsey $122M (YF)

• Omnicom, IPG near ad megamerger (WSJ)

• Billionaires underperform the S&P 500 (Axios)

• UnitedHealthcare’s claim-denial tool under fire (Fox)

• Google CEO thinks AI development is finally slowing down (CNBC)

• Citi traders didn’t know the rules (BB)

• Starbucks says goal is for customers to get coffee in less than 30 seconds (NYP)

• Robinhood’s new hot tech bet - the desktop computer (WSJ)

_{CAPITAL PULSE}

Markets Rundown

Tech Leads as S&P 500 Hits New Highs

The S&P 500 posted a fresh record high, rising for the third consecutive week, fueled by gains in tech stocks despite broader sector declines. Tech giants continued their dominance, with the Nasdaq outperforming as investors cheered the latest jobs report.

Meanwhile, consumer discretionary stocks shined, while sectors like energy and utilities lagged. Seven of the 11 S&P sectors fell, highlighting uneven market participation beneath the index's surface.

Jobs Report Fuels Rate-Cut Hopes

The November jobs report showed 227,000 jobs added, beating estimates of 218,000 and bouncing back from October’s hurricane-disrupted figure. Manufacturing and leisure sectors led gains, though unemployment rose to 4.2%, and the household survey recorded a surprising drop of 355,000 jobs.

Average hourly earnings climbed 0.4% monthly, stoking optimism for strong consumer spending. The mixed report reinforced hopes for a December rate cut, with traders pricing an 85% probability.

Consumer Discretionary Tops, Energy Sinks

Consumer discretionary stocks led the market, driven by robust earnings from companies like Lululemon, which soared nearly 16% after beating forecasts and raising its outlook.

In contrast, energy stocks slumped as WTI crude oil fell to a three-week low, closing at $67.16 per barrel, following bearish sentiment around OPEC’s supply decisions. Defensive sectors like utilities and real estate also faltered, reflecting a "risk-on" environment.

Market Technicals and Broader Trends

The RSI for the S&P 500 touched 70 this week, signaling overbought conditions that could slow gains. However, analysts noted the current market "melt-up" lacks signs of excess, supported by bullish seasonality and easing bond yields.

The 10-year Treasury yield dropped to 4.15%, marking a six-week low, which helped keep sentiment upbeat. Broad market participation weakened, with only 59% of S&P stocks trading above their 50-day moving averages.

Looking Ahead: CPI and PPI Awaited

This week’s focus shifts to inflation, with CPI on Wednesday and PPI on Thursday expected to shape the Fed's December decision. Analysts anticipate 0.2% headline growth for CPI and 0.3% core growth, matching October's readings.

Durable goods demand, highlighted in the improved Michigan Consumer Sentiment report, may further impact inflation trends. Markets remain optimistic, with traders betting on at least one more rate cut by year-end.

Movers & Shakers

• (+) Docusign ($DOCU) +28% after beating Q3 expectations; Morgan Stanley raised its price target.

• (+) Lululemon ($LULU) +16% after an earnings beat; raising its outlook for the holiday season.

• (–) AMC Entertainment ($AMC) -9% after the meme stock entered a deal with Goldman to sell 50 million shares.

Private Dealmaking

• PSG invested $175 million into Element451

• Vector Capital bought Bigtincan, an enterprise sales software provider, for $119 million

• Amp Robotics, a trash-sorting robots developer, raised $91 million

• Zopa, a British neobank, raised $87 million

• Mintifi, a B2B supply chain financing firm, raised $79.9 million

• Axiado, an AI security platform, raised $60 million

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

_{BOOK OF THE DAY}

Breaking The Age Code

The often-surprising results of Levy’s science offer stunning revelations about the mind-body connection. She demonstrates that many health problems formerly considered to be entirely due to the aging process, such as memory loss, hearing decline, and cardiovascular events, are instead influenced by the negative age beliefs that dominate in the US and other ageist countries. It’s time for all of us to rethink aging and Breaking the Age Code shows us how to do just that.

Based on her innovative research, stories that range from pop culture to the corporate boardroom, and her own life, Levy shows how age beliefs shape all aspects of our lives. She also presents a variety of fascinating people who have benefited from positive age beliefs as well as an entire town that has flourished with these beliefs.

Breaking the Age Code is a landmark work, presenting not only easy-to-follow techniques for improving age beliefs so they can contribute to successful aging, but also a blueprint to reduce structural ageism for lasting change and an age-just society.

“Yale professor and leading expert on the psychology of successful aging, Dr. Becca Levy, draws on her ground-breaking research to show how age beliefs can be improved so they benefit all aspects of the aging process, including the way genes operate and the extension of life expectancy by 7.5 years.”

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_{WHAT ELSE TO READ}

The Best PE, VC & M&A Newsletter

Buysiders is our deals newsletter to bring y’all the best insights on deals around Wall Street.

Every month, you get insider details on the month’s top 3 deals. For this month’s edition, we cover the following deals:

1. Blackstone Acquires Jersey Mike’s for $8 billion

2. Peabody Energy Acquires AngloAmerican’s Australian Coal Mines for $2.7 billion

3. Amcor Acquires Berry for $8.4 billion

Read the full edition here and subscribe to the newsletter below.

_{DAILY ACUMEN}

Bayes’ Theorem

Picture this: You’re playing poker, eyeing your opponent who just raised the stakes. Are they bluffing, or do they have a killer hand? Enter Bayes’ theorem, the secret weapon you didn’t know you needed. It’s like having a cheat code for smarter decisions in uncertain situations.

Bayes’ theorem is all about updating your beliefs when new evidence shows up. It says: take what you already know (your prior), mix in fresh clues (the likelihood), and boom—you get a clearer sense of what’s likely true (the posterior). In our poker game, your “prior” belief might be that your opponent bluffs 30% of the time. But now they’re sweating bullets. That new evidence tweaks your odds. Maybe the bluff likelihood jumps to 50%.

It’s not just for poker. Doctors use Bayes to refine diagnoses, investors to predict market moves, and even weather apps to warn about rain. The magic lies in changing your mind intelligently. Instead of stubbornly sticking to first impressions, Bayes reminds you: every piece of info counts—if you know how to weigh it.

Want to level up your thinking? Start asking: “How does this new clue change the odds?” Whether you’re solving mysteries or just deciding between tacos and sushi, Bayes makes you a master of the game.

_{ENLIGHTENMENT}

Short Squeez Picks

• It has never been more expensive to visit NYC

• 5 ways to boost your happiness in just 10 minutes

• Try Pomodoro 2.0 to focus on deep work

• Toxic productivity habits to avoid

• How to give your home office a makeover

_{MEME-A-PALOOZA}

Memes of the Day