Good Morning! Trump announced $1,000 government-funded accounts for American babies. Barclays is axing more than 200 investment banking jobs, and Warner Bros. is breaking up into two public companies.

Zuckerberg is personally hiring to create a new ‘Superintelligence’ AI team, Apple dropped its new software update with a translucent "Liquid Glass" design, and OpenAI is now making $10B a year in recurring revenue.

Plus: Hedge funds could make billions in a potential Fannie/Freddie spin-off, canned food is about to get a lot pricier, and can too much grit actually mess with your brain?

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SQUEEZ OF THE DAY

Wall Street Legend Says Adios

“Throughout the centuries there were men who took first steps down new roads armed with nothing but their own vision.” — Ayn Rand, the Fountainhead.

Yesterday, one of the greatest rainmakers in Wall Street history announced his retirement. There are few people in finance whose names are as synonymous with dealmaking as Ken Moelis.

He began as a banker on Wall Street some 40 years ago at Drexel Burnham Lambert under the tutelage of Mike Milken. The list of Drexel alumni who went on to accomplish financial greatness is absurdly long, but I know they are proud to count Moelis among their crew.

From Drexel he went to DLJ where he became head of corporate finance, then he eventually moved to UBS where he built out its U.S. investment banking franchise.

After finding a spark in Ayn Rand’s Atlas Shrugged in 2006, Moelis went on to found his eponymous bank Moelis & Co. in 2007. 

Focusing on advisory work, he went on a hiring spree during the GFC in a bet that soon to be called “boutique” banks would start to pull revenue away from the bulge brackets.

After only seven years, he took the Bank public in 2014 and has since seen his brainchild’s share price grow 124% to a market cap of $4.6B today. I wonder if he paid himself a fee for that one!

In April 2018 following a run in the Bank’s stock price, Ken Moelis officially reached billionaire status, a rare feat amongst bank CEOs.

Moelis is known for being tough and believing in meritocracy, like the good old days of investment banking. While some disagreed with the Bank’s culture, the Bank’s successes speak for themselves and prove that Moelis built more than a bank, he built a philosophy.

In just the past year, Moelis & Co. has advised on some of the most high-profile deals on Wall Street, including the following:

• Hailey Bieber’s Rhode on a $1B sale to e.l.f. Beauty

• The New York Giants on ownership strategy

• David Ellison’s Skydance Media in its $8B Paramount bid

• The Nordstrom family on governance issues

While it’s not clear what this signals for the future of boutique banking, Moelis indicated in his retirement address that he is bullish on the future of M&A, the lifeblood of his firm.

Not to worry, after advising firms for his entire career, Moelis knows that a smooth transition is a key step in the process. He is leaving the firm in the capable hands of his co-founder and long-time business partner Navid Mahmoodzadegan. Moelis will become executive chairman, while fellow co-founder and co-president Jeff Raich will become executive vice-chairman effective Oct 1.

Takeaway: While his retirement marks the end of an era, it is certainly not the end for Moelis & Co. Moelis is simply doing what he does best: taking a step down a new road, armed with nothing but his own vision once again.

From the team here at Overheard on Wall Street, we would like to extend a sincere bravo to Ken Moelis for a legendary 40+ years on the Street.

HEADLINES

Top Reads

• Trump announces $1,000 government-funded accounts for babies (CNBC)

• Barclays cuts more than 200 investment banking jobs to reduce costs (BB)

• Warner Bros Discovery to split off studios and streaming (YF)

• Zuckerberg personally hiring to create new ‘Superintelligence’ AI team (BB)

• Chipotle is releasing its first new dip in five years (CNN)

• One of the largest grocery distributors in North America has been hit by a cyberattack (TC)

• Apple introduces ‘Liquid Glass’ design and iOS 26 at WWDC 2025 (NYT)

• OpenAI hits $10B in annual revenue thanks to ChatGPT growth (CNBC)

• CEO recession expectations decline from April scare, survey says (CNBC)

• Qualcomm will acquire semiconductor firm Alphawave Semi for $2.4 billion (MW)

• New grads face toughest job market in years (BB)

• Hedge funds could make billions from a Fannie Mae or Freddie Mac spin (CNN)

• Canned food about to get really pricey (NYP)

• Threats to Tesla's revenue are piling up (Axios)

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CAPITAL PULSE

Markets Rundown

 Market Update

• U.S. stocks rose Monday as U.S. and China officials met in London for trade talks focused on technology and rare earth minerals. Additional negotiations are scheduled for today.

• Gains were led by consumer discretionary and materials stocks, while utilities and financials lagged.

• Asian markets were mostly higher despite China’s exports missing expectations; shipments to the U.S. fell 34%, the largest monthly drop since the pandemic.

• European equities traded broadly lower, while WTI oil extended recent gains.

• 10-year Treasury yield fell to 4.48%, as bond markets priced in two rate cuts this year amid rising deficit concerns.

Economic Data Highlights

• China Exports (May): Fell short of expectations; U.S.-bound shipments dropped 34% YoY, the steepest decline since 2020.

• 10-year Treasury yield: Declined to 4.48%, down 2 bps, as traders maintained bets on two Fed rate cuts this year.

• U.S. CPI Preview (May, due Wednesday): Headline CPI expected at +2.5% YoY, core CPI at +2.9% YoY; a modest rebound after three months of easing.

Reported Earnings

• Casey’s General Stores (CASY): Beat earnings expectations, driven by stronger fuel margins and in-store merchandise growth.

Earnings Today

•  J.M. Smucker (SJM): Reporting June 10 (Before Market Open). Focus on pet food segment and post-acquisition integration progress.

• GameStop (GME): Reporting June 10 (After Market Close). Investors watching cash burn rate and turnaround strategy.

• GitLab (GTLB): Reporting June 10 (After Market Close). Key watch areas include DevSecOps adoption and enterprise revenue growth.

Movers & Shakers

• (+) Topgolf Callaway ($MODG) +15% after an insider bought $2.5M worth of shares.

• (+) eToro ($ETOR) +11% because analysts such as Jefferies initiated coverage with a buy.

• (–) AppLovin ($APP) -8% after the company was not added to the S&P 500.

Private Dealmaking

• Qualcomm will acquire semiconductor firm Alphawave Semi for $2.4 billion

• Vantage Data Centers, an IT service management company, raised $820 million

• Mosanna Therapeutics, a sleep apnea biotech, raised $80 million

• Guardz, a cybersecurity startup, raised $56 million

• Arkestro, an enterprise procurement platform, raised $36 million

• mPower Technology, a space solar company, raised $21 million

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

BOOK OF THE DAY

Flying Blind

Description: A gripping exposé of how one of America’s most iconic companies lost its engineering soul—chronicling the corporate missteps, cultural shifts, cost-cutting priorities, and fatal oversights that led to the 737 MAX disasters.

Rating: 4.5 (Amazon) / 4.2 (Goodreads)

Book Length: 336 pages

Audible Length: 10 hrs 45 mins

Ideal For: Business readers, aviation enthusiasts, leadership skeptics, and anyone curious how corporate culture can crash more than planes.

“A compelling, deeply reported account… an indictment not just of one of America’s most celebrated companies, but of an entire era.” — Financial Times

DAILY VISUAL

M&A Activity Very Weak

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ENLIGHTENMENT

Short Squeez Picks

• Multi-millionaires all share these same 6 habits

• 4 ways high achievers use tech to get more done

• How to lead through overwhelm

• Can too much grit damage your brain?

• How small habits can lead to big benefits

MEME-A-PALOOZA

Memes of the Day

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