What you Need to Know for May 13

Welcome back!

After an insane rally in Semis, things finally cooled down a bit following U.S. Iran war tensions rising, CPI that came in hot (3.8% y/y, 0.6% m/m) due to the jump in oil prices, and rate cut odds going lower. Semis cooled off a bit, although Micron is remarkably still up 79%+ in the past month.

We have a jampacked newsletter, so let’s get right into it.

Here’s a look at the remaining earnings for this week.

• Wednesday: Cisco, AES Corporation, Alibaba, Manulife, Nebius, Tower Semiconductor, Birkenstock, Wix.com, StubHub, Jack in the Box, USA Rare Earth

• Thursday: Applied Materials, Brookfield Corp, Klarna, YETI, Nano Nuclear Energy, Canadian Solar, Canada Goose

• Friday: RBC Bearings

Here’s a look at economic data this week (estimates are in quotations).

• Wednesday: Producer price index (0.6%), Core PPI (0.3%), PPI year over year, Core PPI year over year

• Thursday: U.S. retail sales (0.5%), Retail sales minus autos (0.6%), Initial jobless claims (205,000), Import price index (1.0%), Import price index minus fuel, Business inventories (0.9%)

• Friday: Empire State manufacturing survey (6.5), Industrial production (0.2%), Capacity utilization (75.8%)

Earnings Corner 💸 

• Simon Property Group $SPG ( ▲ 2.32% ) top and bottom line beat with revenue at $1.76B, driven by strong leasing demand, higher rents, resilient occupancy, and continued strength in luxury, athleisure, and Gen-Z focused brands across its mall portfolio. Higher rent spreads and strong outlet traffic supported profitability despite softer restaurant spending and some tourist market weakness. The company raised full year guidance and increased its dividend.

• Constellation Energy $CEG ( ▼ 2.03% ) revenue beat at $11.12B and EPS beat at $2.74, driven mainly by the Calpine acquisition, stronger power pricing, and demand for clean/reliable electricity from data centers. Earnings also benefited from nuclear production tax credits and higher capacity prices, but shares were pressured because full year EPS guidance was only reaffirmed at $11-$12, with the midpoint slightly below expectations.

• AST Space $ASTS ( ▼ 11.62% ) revenue missed at $14.7M vs. $40M and EPS missed with a loss of $0.66, as delays in launching and deploying satellites into orbit slowed network activation and pushed out early commercial revenue. The company maintained 2026 revenue guidance of $150M-$200M as it focuses on scaling to 45 satellites in orbit by year-end and converting its $1.2B+ contract backlog into future direct-to-phone broadband revenue.

• On Holding $ONON ( ▼ 0.62% ) top and bottom line beat, driven by continued premium sneaker demand, strong China growth, and momentum in apparel and wholesale channels as consumers continued spending on higher end athletic brands despite macro uncertainty. The company raised its profitability outlook as margins improved, though D2C sales slightly missed expectations, while slowing overall growth and the recent CEO transition remain areas of focus.

• Fox $FOX ( ▼ 2.8% ) revenue beat at $4B while adjusted EPS rose 20% to $1.32, driven by strong distribution growth, record Fox News advertising revenue, and continued momentum at Tubi, where revenue climbed 23%. Advertising revenue declined due to the absence of last year’s Super Bowl broadcast, but underlying ad trends remained strong, while Fox One subscriber growth, sports viewership gains, and upcoming NFL and World Cup events supported outlook.

• Him & Hers $HIMS ( ▼ 14.1% ) revenue missed at $608M vs. $617.5M and reported a loss of $0.40 per share vs. expectations of -$0.03 to +$0.04, , as the company’s shift away from compounded GLP-1s toward branded weight-loss drugs created restructuring and inventory write-down costs. The Novo partnership expands its long-term weight loss opportunity, but the transition is pressuring near term margins and guidance.

On The Move 📈 📉

• ZoomInfo $GTM ( ▼ 32.78% ) plunged despite beating Q1 estimates after cutting FY guidance by $62M and laying off 20% of its workforce as AI competition intensifies.

• BuzzFeed $BZFD ( ▲ 90.44% ) surged after Byron Allen agreed to acquire a 52% controlling stake for $120M, rescuing the company from looming debt defaults and potential bankruptcy.

• Under Armour $UAA ( ▼ 17.0% ) dropped after missing Q4 estimates and warning that tariffs and inflation are driving up costs.

• GitLab $GTLB ( ▼ 9.98% ) slid after announcing a sweeping AI-driven restructuring that includes layoffs, cutting its global footprint by 30%, and removing up to three management layers.

IPO Roundup 📍 

• Innio filed for an IPO targeting a $15B valuation, led by Goldman Sachs, JPMorgan, and Morgan Stanley. The Advent and ADIA backed manufacturer generated $668.6M in Q1 revenue and is capitalizing on surging data center energy demand.

• KKR backed GMR Solutions priced its IPO at $15 per share, below expectations, but ultimately raising $479M at a $3.3B valuation. They were initially trying to price at $22-$25/share with a total raise of nearly $800mm. KKR, Ares, and BlackRock’s HPS are buying $500M in concurrent private placement warrants. The largest U.S. emergency medical services provider is set to price on May 13.

• Lincoln International filed for a U.S. IPO looking to raise $421M at $18-20 per share, led by Goldman Sachs and Morgan Stanley. The Chicago based mid-market M&A advisory firm is set to price next week.

• Cerebras latest: The AI chipmaker upsized its IPO to $150-$160 per share, now targeting up to $4.8B in financing and a valuation of $48.8B, but bankers are guiding towards the stock trading higher once it goes public tomorrow.

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Today’s Headlines 📖🍿 

• Anthropic eyes $30B in funding at $900B valuation: Anthropic is in talks for one of the largest private funding rounds ever, as the AI arms race drives escalating demand for compute infrastructure. The raise would come just months after the company was valued at $380B alongside massive existing commitments from Google and Amazon.

• Spirit Airlines bankruptcy fees top $80M: Advisors, including Davis Polk, FTI, PJT, and Jefferies, have collected more than $80M as Spirit liquidates following a failed restructuring tied to surging fuel costs. Combined costs across the airline’s two bankruptcy processes now exceed $110M.

• eBay rejects GameStop’s $56B takeover bid: The company called GameStop CEO Ryan Cohen’s unsolicited $125/share offer “neither credible nor attractive,” citing financing uncertainty and operational risk.

• Blackstone begins fundraising for Core Private Equity Fund III: The third iteration of its long-term buyout strategy will write $800-$1B checks across 8-10 companies. The fund is designed with a 20 year investment horizon and prior funds have net IRRs of 15-16%, with Fund II raising $8B in 2020.

• CommScope faces a $150M+ lawsuit from lenders: The group alleges its $10.5B January sale to Amphenol triggered an event of default, with lenders also claiming the company manipulated its senior note terms to avoid required premium payment. The company has since rebranded to Distance Networks.

• AMC bets on live entertainment to offset box office volatility: CEO Adam Aron raised his 2026 domestic box office growth outlook to +$1.2B YoY and launched “Arena One at AMC,” a live concert initiative with ticket prices ranging from $40-$75, aiming to lower the box office threshold to reach free cash flow breakeven.

• Kevin Warsh clears Senate vote for Fed board seat, paving the way to replace Jerome Powell as chair, as markets brace for a potentially more dovish regime.

• ServiceNow’s $4B bond sale drew $32B of investor demand with spreads tightening across all tranches despite $NOW ( ▼ 2.72% ) stock down 42% this year amid broader concerns of AI disruptions. The proceeds will refinance debt tied to the company’s $7.7B acquisition of cybersecurity firm Armis.

• Mamdani drops proposed 9.5% NYC property tax hike after Gov. Kathy Hochul secured ~$8B in state funding to help close the city’s budget gap, removing a potential hit to middle-income homeowners.

  • However, the Ken Griffin, controversial “pied-à-terre“ tax is part of the NYC spending plan, with $500mm of new tax revenue expected to be generated from luxury second homes.

  • Notably, there is also nearly $2.3B in pension restructuring.

M&A Transactions💭 

Voi, provider of shared micro-mobility services, has reached a definitive agreement to be acquired for $1.2B by Uber (NYS: UBER).

Udemy, operates a marketplace platform at the center of a vibrant knowledge network, was acquired by Coursera (NYS: COUR) in a $2.5B merger. Morgan Stanley advised on the sale.

Recognition Music Group, provider of intellectual property investment and song management services, has reached a definitive agreement to be acquired for $4.0B by Sony Music Publishing, GIC Private, and Sony Bank. Shot Tower Capital advised on the sale.

Emerald Holdings (NYS: EEX), a B2B event organizer, has entered into a definitive agreement to be acquired for $1.5B by Apollo Global Management.

Artemira, manufacturer of aluminum beverage cans, has entered into a definitive agreement to be acquired for JPY 130.0B by MBK Partners. EV/Revenue was 0.61x.

Cantaloupe, a technology leader powering self-service commerce, was acquired for $888.61M by 365 Retail Markets. EV/EBITDA was 33.46x and EV/Revenue was 2.77x. J.P. Morgan advised on the sale.

Payable, provider of digital payment infrastructure, was acquired for $200.0M by Surge Global.

EHWA Diamond, manufacturer of diamond tools, has entered into a definitive agreement to be acquired for KRW 400.0B by IMM Holdings.

The Azstarys Business of Corium International was acquired by Collegium Pharmaceutical (NAS: COLL) for $785.0M. The company will receive a contingent payout of $135.0M if AZSTARYS achieves certain future commercial and manufacturing milestones. Centerview Partners advised on the sale.

Cloopen (PINX: RAASY), a multi-capability cloud-based communications solutions, has reached a definitive agreement to be acquired for $162.89M by Trustbridge Partners, Dmall, Novo Holdings, Tencent Holdings, Image Frame Investment, Flawless Success, and Mr. Changxun Sun. EV/Revenue was 2.19x. Kroll advised on the sale.

Viper Energy, a Diamondback subsidiary, announced a $522.0M deal to acquire Riverbend Oil and Gas IX’s Mineral and Royalty Interest in the Permian Basin.

Tomoro AI, provider of AI consulting and engineering services, has reached a definitive agreement to be acquired by OpenAI for an undisclosed amount.

Private Placement Transactions💭 

Syncromune, developer of intratumorally immunotherapy, raised $144.83M of Series A venture funding from Wasatch Health and other undisclosed investors at a pre-money valuation of $122.17M.

Cowboy Space, operator of an aerospace company, raised $275.0M of Series B venture funding led by Index Ventures at a pre-money valuation of $1.73B.

Photonic, developer of a distributed quantum computing system, raised $200.0M of Series E venture funding led by Planet First Partners at a pre-money valuation of $1.8B.

Isomorphic Labs, operator of a digital biology company, raised $2.1B of Series B venture funding led by Thrive Capital.

Elliptic, developer of a blockchain analytics and compliance platform, raised $120.0M of Series D venture funding led by One Peak Partners at a pre-money valuation of $550.0M.

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