Good morning! Wall Street’s summer calm cracked as a selloff in big tech dragged stocks lower. Palantir tumbled as much as 12% (including after-hours), while Nvidia slipped 4%.

Labubus, meanwhile, are booming. The maker’s first-half revenues tripled to nearly $2 billion, with net profit soaring 400% thanks to Gen Z Americans. Sleep-tech firm Eight Sleep raised $100 million to fuel its retail expansion in 2026. And after 17 years at Moelis, Bill Derrough is heading to Jefferies as chairman of global restructuring.

Plus: Airline giants were hit by an AI-powered attack, Morgan Stanley says AI could save firms nearly $1 trillion a year, and “AI zombie deals” are quietly keeping Meta, Google, and others in business.

There's a new wave of luxury vacation home ownership coming. The leader? Pacaso and their tech for property ownership and management. Learn more.

SQUEEZ OF THE DAY

Swiss M&A Market Booming

Switzerland’s M&A market is booming, leaving the rest of Europe in the dust. Takeover volume targeting Swiss companies has surged 465% this year to $16.7 billion.

The key reason? Switzerland isn’t part of the EU, and the country is far more open to foreign investment than its neighbors. Most European countries impose stricter restrictions than even the U.S., but Switzerland offers fewer hoops and little risk of drawn-out litigation, making it one of the most attractive markets for global dealmakers.

Bankers are also impressed with how well-run Swiss companies are, with solid balance sheets and strong acquisition currency. Mid-cap firms are efficient but often lack global scale, while large corporates are looking to expand into new markets, simplify operations, and shed non-core units through spinoffs and divestitures.

At the same time, Swiss companies are bracing for new 39% U.S. tariffs on imports, the highest in the developed world. With margins under pressure, M&A is increasingly seen as a way to drive growth and diversify.

Private equity is also taking notice, with Advent’s $1.3 billion acquisition of chipmaker U-blox marking a major entry.

Domestic consolidation is also strong, with Helvetia’s merger with Baloise creating the country’s second-largest insurer, OC Oerlikon selling a unit to rival Rieter, and SoftwareOne buying Norway’s Crayon Group. ABB and Nestlé are preparing breakups, with robotics and water units on the block.

Takeaway: Global investors view Swiss M&A as a “safe risk with upside.” The market offers high-quality assets, disciplined management, and a welcoming environment for capital, while the rest of Europe remains bogged down by red tape and sluggish deal cycles.

Wall Street is watching closely, as a mix of domestic consolidation and inbound investment could turn Swiss companies into the next wave of multi-billion-dollar exits for both PE and strategics. The only question now: wen Blackstone Rolex LBO?

HEADLINES

Top Reads

• Nvidia-led tech slide cracks summer calm in stocks (BB)

• Palantir falls for a fifth straight day from record (CNBC)

• Crypto stocks tumble as investors go into risk-off mode (CNBC)

• How Pop Mart sold the ‘happy vibe’ of owning a Labubu (WSJ)

• Eight Sleep raises $100M, launches wearables (Axios)

• The race to dethrone Excel gains a new entrant (WSJ)

• Finance industry pushes for overhaul of global crypto banking rules (BB)

• Pimco outmaneuvers Apollo and KKR to snag $29B Meta financing deal (BB)

• Nvidia hit as U.S. - China chip fight escalates (CNBC)

• AI could save firms nearly $1 trillion a year, study finds (Axios)

• How “AI zombie deals” work between Meta, Google, and others (CNBC)

• American money floods European soccer as club valuations soar (CNBC)

• Moelis restructuring veteran William Derrough heads to Jefferies (WSJ)

• Wyoming is the first U.S. state to issue a stablecoin (QZ)

• Investors are now betting on an economic expansion (Axios)

• Bulls start hedging as risky bets look stretched (BB)

• Airline giants hit by AI-powered attack (Fox)

• Lululemon billionaire pledges stock for $500 million in loans (BB)

• Chipotle, Shake Shack, Sweetgreen may help solve an economic puzzle (BB)

• Trump’s tariffs reshape Gen Z job market (Axios)

• Goldman says this has been one of the best earnings seasons(CNBC)

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Major Investors Are Buying This “Unlisted” Stock

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That’s the case with Pacaso. Founded by a former Zillow executive, Pacaso’s bringing co-ownership to the vacation home market, a $1.3T opportunity. And it’s been a hit. Pacaso has already made over $110M in gross profits and added homes in 40+ destinations. 

They’ve even reserved their Nasdaq ticker, $PCSO.* 

But what makes Pacaso unique compared to companies like Airbnb and Uber is that they’ve opened up the opportunity for the public to invest in them as a private company. And more than 10,000 people have. 

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Become a Pacaso shareholder here.

CAPITAL PULSE

Markets Rundown

Market Update

• Tech giants led a sell-off, with NVIDIA and Meta sparking pressure and resulting in the S&P 500 and Nasdaq’s worst session since August 1. Still, over 300 S&P 500 companies gained, lifting the equal-weighted index.

• European markets rose modestly on optimism around a Russia–Ukraine peace breakthrough.

• U.S. Treasuries rallied, with the 10-year yield down ~3 bps to 4.31%, and Canadian bonds strengthened after softer inflation prints.

• The dollar strengthened against major peers; WTI oil declined, as markets priced in potential easing of sanctions on Russian oil.

Economic Data Highlights

• July housing starts rebounded, but a drop in permits suggests weak near-term activity.

• This week, markets await Flash PMI data and Powell’s remarks at Jackson Hole for signals on the Fed’s next move.

Reported Earnings

• Home Depot (HD) – Q2 comps up 1%, softer than expected; commentary highlighted continued caution on large-volume home improvements.

• Medtronic (MDT) – Delivered a strong beat.

• XPeng (XPEV) – Posted record Q2 results: revenue up 125% YoY, gross margin 17.3%, and a significantly narrowed net loss; guided for continued Q3 strength.

Earnings Today

• Target (TGT) – Tracking how consumer spend is holding up, especially vs. housing-related pullbacks.

• Lowe’s (LOW) – Observers look for demand trends in home improvement and relative performance to Home Depot.

• Baidu (BIDU) – Key to watch: AI cloud traction, ad recovery, and macro sentiment in China.

Movers & Shakers

• (+) Intel ($INTC) +7% after SoftBank made a $2B investment.

• (–) Palantir ($PLTR) -9% because investors are taking profits after the recent AI rally.

• (–) Viking Therapeutics ($VKTX) -42% after the weight loss pill missed expectations.

Private Dealmaking

• Nexstar agreed to buy Tegna for $6.2 billion

• Black Hills Corp. agreed to buy NorthWestern Energy Group for $3.6 billion

• Nexstar will buy Tegna for $3.54 billion

• Eight Sleep, a smart sleep products company, raised $100 million

• Seemplicity, a cybersecurity workflow platform, raised $50 million

• Functionize, a software testing startup, raised $41 million

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

BOOK OF THE DAY

Make Money Easy

Description: A heartfelt, practical guide that helps you realign your money mindset with your deeper purpose. Lewis Howes distills lessons from top financial experts, psychological insight, and his own journey to guide readers toward financial peace. You’ll learn to identify your Money Style, build a Money Map, and develop daily habits that bring financial clarity, empowerment, and abundance.

Rating:
Amazon 4.8 / 5
Goodreads 4 / 5

Book Length: 272 pages

Ideal For: Anyone tired of the paycheck-to-paycheck cycle—a great fit for purpose-driven professionals, personal development fans, and those ready to shift how they think about money.

“When you change your relationship with money, your entire life becomes richer.”

DAILY VISUAL

Companies, Who Run the World

Want more? Visualize the markets with Carbon Finance

PRESENTED BY VANTA

Why Leading Fintechs Choose Vanta for Security and Compliance

For high-growth fintechs, security and compliance aren’t optional, but managing SOC 2 workflows, ISO 27001, and other frameworks can take months of manual effort.

Vanta streamlines the process by automating up to 90% of security and compliance tasks, giving companies like Ramp and MoonPay the ability to scale while staying audit-ready.

Ramp, a Vanta customer, recently secured $500 million in funding at a $22.5 billion valuation. Vanta itself closed a Series D at a $4.15 billion valuation, proof that the platform delivers results for fast-growing teams.

With continuous monitoring, real-time risk visibility, and one unified platform, Vanta is the most efficient route to compliance.

Short Squeez readers get $1,000 off when booking a meeting with Vanta.

DAILY ACUMEN

Flow

In trading, “flow” is where the orders are, who’s buying, who’s selling, where liquidity pools.

In psychology, “flow” is the state where time dissolves and work feels effortless.

Both signal the same thing: alignment of energy and direction.

Traders blow up when they fight the flow of the market, insisting they’re right while liquidity moves against them.

People burn out when they fight the flow of their own skills, trying to force paths that don’t match their wiring.

The art is learning to sense where your natural edge lies, and then leaning into it so deeply that resistance disappears.

Mihaly Csikszentmihalyi described flow as the balance between challenge and skill, too easy, you get bored; too hard, you get anxious.

The market has the same rhythm: too obvious, there’s no money in it; too complex, no one survives.

The sweet spot is where difficulty matches capacity.

When you find your flow, whether in work, art, or markets… guard it.

That’s where compounding hides.

ENLIGHTENMENT

Short Squeez Picks

• 6 signals that make you instantly more trustworthy at work

• The FIRE movement’s new wave of early retirees

• 6 ways to build everyday courage at work

• McKinsey’s “box” is dead—here’s what’s next in consulting

• How to spot (and leverage) your hidden career strengths

MEME-A-PALOOZA

Memes of the Day

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