Good Morning! Congrats to Scottie Scheffler on winning his 2nd Masters title. Stocks had a rough end to last week, and Jamie Dimon thinks the chance of a bad economy is higher than you might think. Meanwhile, JPMorgan and Citi both disappointed investors with lower guidance and falling profits, respectively. StubHub is eyeing a summer IPO at a $16.5 billion valuation. Plus why 60/40 looks attractive again and the best career advice for climbing the corporate ladder.

Our limited edition Wall Street shirt is now available for order. Shop here.

_{SQUEEZ OF THE DAY}

RIP Ghost Kitchens

It seems like ghost kitchens are finally living up to their name in 2024. That is, they’re finally disappearing.

You might remember ghost kitchens from the pandemic when desperate restaurants across the country switched to ‘delivery-only’ mode. And some of these ghost kitchens expanded into other cuisines too, so you might see one restaurant opening up to four or five of these ghost kitchens. 

For example, you might have had your local Italian restaurant opening up an additional ‘taco restaurant’ on UberEats or GrubHub - and you’d probably never realize it. Or maybe your local pizza joint started making burgers. It was pure chaos - but it was a way for these restaurants to survive during a challenging time for the industry.

And as ghost kitchens boomed during the lockdowns of 2020, some investors saw ghost kitchens as the model of the future. They poured billions of dollars into the space, and some corporate giants like Kroger and Wendy's got in on the hype, too. In 2021, CBRE predicted ghost kitchens would account for over 20% of restaurant sales by 2025.

But fast forward a few years, and it seems like consumers just never made that same connection with virtual kitchens. And making matters worse, since the pandemic, UberEats and DoorDash have pulled 8,000 ghost kitchens because the food was of either poor or inaccurate quality. 

Takeaway: Let’s also not forget Mr. Beast’s infamous lawsuit against his ghost kitchen partner for ‘inedible burgers’. During the pandemic, we saw restaurants venturing into wild ghost kitchen spin-offs. But now, they’re slowly retreating back to sticking with what they know best.

_{PRESENTED BY RAD AI}

Invest In The AI Disrupting A $633B Industry 

Most marketing strategies are little more than estimations and guesswork, resulting in billions of missed opportunities and wasted resources everyday. 

The solution? RAD AI. Dubbed “essential AI” for brands, RAD decodes trillions of internet interactions into highly-valuable, actionable insights. These findings then inform marketing strategies with hard data to deliver outsized ROI. 

The numbers speak for themselves: 

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

• ~3X revenue growth from 2022 to 2023, all while landing major clients like Hasbro, Skechers, MGM Resorts, Sweetgreen and more.

Don’t miss out–RAD AI’s investment round closes in 2 weeks.

_HEADLINES

Top Reads

• Jamie Dimon says chance of a bad economy is ‘higher than other people think’ (CNN)

• StubHub eyes summer IPO, seeks $16.5 billion valuation (CNBC)

• Citi profit falls on severance costs from reorganization while stock slides (Reuters)

• Big banks are in a race to get AI right (Axios)

• High-interest rates are getting challenging even for the biggest banks (YF)

• Why 60/40 looks attractive again (Axios)

• Goldman says time to take tech profits and invest elsewhere (YF)

• Private equity firms probed for withholding information in deal review (YF)

• Equity hedge funds fail to beat benchmark despite tech boost (BB)

• VC in crypto ticks up as optimism returns (Axios)

• New Swiss bank laws could derail UBS' challenge to Wall Street giants (CNBC)

_{CAPITAL PULSE}

Markets Rundown

S&P 500 suffered worst day since January as inflation woes erupt.

Movers & Shakers

• (+) Globe Life ($GL) +20% after the life insurance stock rebounded from the short seller report.

• (–) JPMorgan ($JPM) -6% because net interest income level could fall short of analysts’ expectations.

• (–) Arista Network ($ANET) -9% after the network equipment company was double-downgraded by Rosenblatt.

Private Dealmaking

• Factorial, an HR management software company, raised $80 million

• Auradine, a Bitcoin miner maker, raised $80 million

• Luminance, an AI startup for the legal market, raised $40 million

• ViaLase, a glaucoma treatment developer, raised $40 million

• Symbolica, a foundation model startup, raised $33 million 

• Windfall Bio, a methane capture startup, raised $28 million

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

_{BOOK OF THE DAY}

The Ritual Effect

Our lives are filled with repetitive tasks meant to keep us on track—what we come to know as habits. Over time, these routines (for example, brushing your teeth or putting on your right sock first) tend to be performed automatically.

But when we’re more mindful about these actions—when we focus on the precise way they are performed—they can instead become rituals. Shifting from a “habitual” mindset to a “ritual” mindset can convert ordinary acts from black and white to technicolor.

Think of the way you savor a certain beverage, the care you take with a particular outfit that gets worn only on special occasions, the unique way that your family gathers around the table during holidays, or the secret language you enjoy with your significant other.

To some, these behaviors may seem quirky, but because rituals matter so deeply to us on a personal level, they imbue our lives with purpose and meaning.

Drawing on a decade of original research, Norton shows that rituals play a role in healing communities experiencing a great loss, marking life’s major transitions, driving a stadium of sports fans to ecstasy, and helping us rise to challenges and realize opportunities.

Compelling, insightful, and practical, The Ritual Effect reminds us of the intention-filled acts that drive human behavior and create sur­prising satisfaction and enjoyment.

“An eye-opening window into why we swear by certain routines—and how we can build more enriching ones.”

_{DAILY VISUAL}

More Demand for Travel Driven by Wealth Gains

A record-high share of the population is planning to go on vacation to a foreign country within the next 6 months

_{PRESENTED BY PERCENT}

Don’t Miss the “Golden Era” for Private Credit

Private credit is now a $1.9 trillion asset class and still growing. 

AllianceBernstein and Goldman Sachs are calling it a “key component of a diversified investment portfolio” and “the biggest opportunity set across the alternative space”. 

That’s because private credit can offer higher yields, less correlated returns, and liquidity compared to public markets–while also hedging against inflation and rising interest rates.

You can take advantage with Percent. They’ve already funded over $1 billion in private credit deals, giving investors access to: 

• Attractive yields: Percent’s weighted average APY was 18.83% in 2023

• Recurring interest income: Investors earned $17M in interest in 2023 

Don’t wait–new investors can score up to $500 with their first investment today!

_{DAILY ACUMEN}

Create More Luck

Luck isn't just a random force outside your control - you have the power to create the conditions for good fortune in your life. By expanding your "luck surface area", you open yourself up to more positive opportunities.

Do more things, tell more people about what you're working on, and put yourself out there. Cultivate the right mindset by being open to chances others miss, preparing your mind to capitalize on them.

Work hard at what you do best until opportunities seek you out. Most importantly, take an active approach rather than passively waiting and hoping for luck to find you.

With the right combination of effort, attitude and positioning, you can manufacture your own luck and achieve greater success.

_{ENLIGHTENMENT}

Short Squeez Picks

• 13 ways to temper a harsh inner critic

• Why people are going to PowerPoint parties

• 3 tips to help you navigate pre-hiring tests

• 5-step guide to improving your employer brand

• The best career advice for climbing the corporate ladder

_{MEME-A-PALOOZA}

Memes of the Day