What You Need To Know for May 29th

Together With

Welcome back - in a shocking move, a significant amount of tariffs have been blocked. Naturally, futures are jumping higher (although Nvidia is also a driver).

Last night, the U.S. Court of International Trade blocked the bulk of Trump’s Liberation Day tariffs including the 10% baseline tariffs, the reciprocal tariffs, the 30% tariffs on China, and the fentanyl tariffs. So yeah, that’s the bulk of the tariffs we were threatening other countries with. This will officially go into effect within a 10 day window.

There’s still some tariffs remaining in place: These include the tariffs from 2018 that were on China, the 25% tariffs on autos & auto parts, steel, and aluminum imports, non-USMCA-compliant goods from Canada and Mexico, and pre-existing tariffs on countries like Russia. Trump is going to look to appeal this ruling - but any briefing and arguments would be pretty far down the road.

This drastic change comes, funny enough after Trump was questioned by a reporter over the 'TACO trade' label yesterday. Analysts have coined the term "TACO trade" —short for "Trump Always Chickens Out" —to describe Trump's pattern of announcing steep tariffs only to later retract or delay them. There were some worries that this was going to spark another round of tariff increases, but that option is off the table now.

I’m sure there’s going to be a massive amount of headlines and analysis related to the ruling over the next few days, so we’ll consolidate everything for you guys on Sunday night.

Let’s get into it.

Earnings Corner 📜 

Trending Up 📈 

NVIDIA Corp $NVDA ( ▼ 0.51% ): NVIDIA posted a blockbuster beat. Revenue soared 69% y/y to $44.1B (up 12% from Q4) and EPS topped estimates despite a multibillion-dollar hit from new U.S. chip export restrictions to China. AI infrastructure demand remains "incredibly strong," with hyperscalers ramping up orders of Blackwell GPUs. 2Q guide was a touch light, but the investors largely looked through it. Shares are up 4.9% after hours

Salesforce Inc $CRM ( ▼ 0.42% ): Salesforce beat across the board and raised full-year guidance, pointing to strong execution and growing AI adoption. Revenue rose 7.6% y/y, and the company announced an $8B deal to acquire Informatica, its largest deal since Slack. Management highlighted internal AI tools driving $50M in cost savings and reaffirmed 9% subscription growth.

Trending Down 📉 

Retail Roundup: Retail earnings this week pointed to a resilient but cautious consumer. While some brands saw strength from higher-income shoppers and standout categories like footwear, others brands flagged weaker customer flow and a more promotional environment. Several companies, including Dick’s Sporting Goods, noted improved margins or pricing strategies helping offset cost pressures. Overall, results suggest consumers are still spending, but more selectively, with higher prices playing a key role in sustaining revenue growth.

HP $HPQ ( ▼ 4.02% ): Revenue edged past estimates, but EPS missed at $0.71 vs. $0.80 expected and guidance missed across the board. Management blamed tariff related costs and is shifting production out of China by 4Q to offset pressure.

Together With Pacaso

Zillow’s co-founder has a big new idea

Spencer Rascoff co-founded Zillow, scaling it into a $16B real estate giant. But everyday investors couldn’t invest until after the IPO, missing early gains.

"I wish we had done a round accessible to retail investors prior to Zillow's IPO," Spencer later said.

Now he’s doing just that. Spencer teamed up with fellow Zillow exec Austin Allison to launch Pacaso. Pacaso’s co-ownership marketplace is disrupting the $1.3T vacation home market. They’ve already surpassed $110M in gross profit and $1B in transactions.

Unlike Zillow, you can invest in Pacaso as a private company. Pacaso’s already reserved their Nasdaq ticker PCSO. But you don’t have to wait for a public listing to invest. 

Invest in Pacaso at $2.80/share before midnight PST tonight.

_{This is a paid advertisement for Pacaso’s Regulation A offering. Please read the offering circular at invest.pacaso.com. Reserving a ticker symbol is not a guarantee that the company will go public. Listing on the NASDAQ is subject to approvals. Under Regulation A+, a company has the ability to change its share price by up to 20%, without requalifying the offering with the SEC.}

Today’s Headlines 🍿 

• Consumer confidence rebounds sharply: After five consecutive months of decline, U.S. consumer confidence surged in May. The Conference Board's index rose by 12.3 points to 98.0, surpassing expectations and indicating renewed optimism about business conditions and employment prospects

• Japanese bond market faces turbulence: Weak demand at a recent 40-year government bond auction has led to rising yields, prompting concerns over Japan's fiscal health. The Ministry of Finance is considering reducing super-long bond issuance to stabilize the market

• Blackstone acquires $5B in PE stakes: In what might be the largest secondaries deal ever, New York City’s pension system is entering into the secondaries market for the first time. NYC's five pensions sold positions in over 125 funds managed by 74 different firms, with BX acquiring over 95% of the portfolio

• The Latest on what Elon is up to:

  • Elon is off DOGE and spilling the tea: The richest man in the world is not happy with Congress. Musk spoke to CBS and said how he is disappointed with the big, beautiful bill and talked about how it undermines the DOGE mission

  • Musk is expanding autonomous driving into Austin effective June 12th. The initial rollout will be limited, with plans to expand the fleet in the following months

  • Musk tried to block OpenAI’s $500B AI data center project unless his startup xAI was included. Despite Musk’s efforts and his influence within the Trump administration, the White House approved the deal, which involves major U.S. tech firms and aims to bolster AI collaboration with the UAE

  • Tesla's European sales plummet amid backlash: Tesla experienced a 49% y/y drop in European sales in April. The decline is attributed to consumer backlash over Elon’s politics and a competitive EV space

• Sound Point says Private Credit Spreads aren’t off that much: Sound Point Capital’s Tom Newberry said since “Liberation Day”, spreads are 25-50bps wider for borrowers with $10-$50mm of Adj. EBITDA

• McKinsey trims 10% of staff amid industry slowdown: Over the past 18 months, the consulting giant has reduced its global workforce by more than 10%, decreasing from over 45k at the end of 2023 to ~40k. This marks one of the largest downsizing efforts in the firm's nearly century-long history. The cuts include 1,400 back-office roles and 400 data and software specialists

• LATAM Private Credit: Patria Investments, one of Latin America’s largest asset managers ($46B AUM), has raising a $314mm private credit fund. Private Credit is relatively underpenetrated in Latin America, and the fund is 80% focused on direct lending, with a ~20% mezz and secondaries mix

• Einhorn goes net long Europe: The Greenlight Capital Hedge Fund Manager is no Head of Macro - but he is going long Europe, particularly industrials, due to government stimulus and potential peace in Ukraine

• Portland’s tallest office tower sold at a steep discount: The U.S. Bancorp Tower, once a premier business address in Portland, is being sold for approximately $70 million—over 80% less than its 2015 value. The building’s decline reflects broader challenges in Portland’s downtown, including high vacancy rates, crime, and homelessness, leading to an exodus of major tenants.

• DoorDash plans $2B convertible bond offering: DoorDash announced its intention to raise $2B that will be used to support general corporate purposes and potential acquisitions

• Deal Flow Latest:

  • Vista Equity is in talks to acquire Acumatica, a $2B software provider owned by EQT

  • BP’s lubricant product, Castrol, is gaining buyout interest from Apollo, Lone Star, and Reliance Industries - at a ~$8-$10B potential sale price

• Distressed Market Latest:

  • At Home is preparing for a bankruptcy filing

  • Hudson’s Bay will be liquidating, impacting over 8,000 employees

  • Everstream, a Texas based Fiber-network provider, filed for bankruptcy. Bluebird Fiber is a stalking-horse bidder, at $285mm, in exchange for the majority of the company’s assets

• IPO Latest:

  • Shein is evaluating a Hong Kong IPO after a London IPO stalled out

  • Only 5 biotech companies have IPO’ed this year - with a slump expected into 2026

• Apple to rebrand operating systems with year-based names: Apple is set to rename its operating systems to reflect the release year, with upcoming versions labeled as iOS 26, macOS 26, watchOS 26, and so on

• Trump pushes Harvard to cap foreign students at 15%: President Trump has called for Harvard to limit international student enrollment to 15%, down from the current 31%, arguing that more spots should be available for U.S. students

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M&A Transactions💭 

Udinese Calcio, operator of a professional football club, entered into a definitive agreement to be acquired for EUR 150.0M by Undisclosed Investors.

Acrisure, an insurance broker, is acquiring Heartland Payroll Solutions, a unit from Global Payments for $1.1B

E2open (NYS: ETWO), an end-to-end and cloud-based supply chain management SaaS platform, reached a definitive agreement to be acquired for $3.16B by WiseTech Global (ASX: WTC). EV/Revenue was 5.21x. Bank of America, Gresham Partners, Macquarie Group, and Rothschild & Co. advised on the sale.

SiteOne Therapeutics, developer of novel pain therapeutics, has reached a definitive agreement to be acquired for $1.0B by Eli Lilly (NYS: LLY). Centerview Partners advised on the sale.

Silvus Technologies, developer and manufacturer of mobile communications datalinks, has reached a definitive agreement to be acquired for $4.4B by Motorola Solutions (NYS: MSI). Additionally, under the terms of the transaction, the company has the potential to receive an earnout of up to $600.0M in the aggregate based on business performance over consecutive twelve-month periods ending in 2027 and 2028. Morgan Stanley advised on the sale.

The Mission Training and Satellite Ground Network Communications Software Business of Northrop Grumman (NYS: NOC) was acquired for $327.0M by Serco Group (LON: SRP). Robert W. Baird & Co. advised on the sale.

InterRent Real Estate Investment Trust (TSE: IIP.UN), an open-ended real estate investment trust, has reached a definitive agreement to be acquired for $3.202B by Carriage Hill Properties Acquisition. EV/Revenue was 18.05x. BMO Capital Markets advised on the sale.

Informatica (NYS: INFA), provides AI enabled data management products, has reached a definitive agreement to be acquired for $9.857B by Salesforce (NYS: CRM). EV/EBITDA was 17.4x and EV/Revenue was 5.95x. Goldman Sachs advised on the sale.

Geost, provider of optical collection systems, has reached a definitive agreement to be acquired by Rocket Lab USA (NAS: RKLB) for $325.0M. An additional amount of $50.0M in potential additional cash earnout payments is tied to revenue targets. Robert W. Baird & Co. advised on the sale.

Accu-Fab, provider of sheet metal fabrication and contract manufacturing, reached a definitive agreement to be acquired for $140.5B by Mayville Engineering Company (NYS: MEC). EV/EBITDA was 10.04x and EV/Revenue was 2.3x.

The Workwear Business of Rentokil Initial entered into a definitive agreement to be acquired for EUR 410.0M by H.I.G. Capital. EV/EBITDA was 8.11x and EV/Revenue was 1.43x. Goldman Sachs advised on the sale.

Heartland Payment Systems, provider of credit card processing services, entered into a definitive agreement to be acquired by Acrisure by $1.1B. Goldfinch Partners advised on the sale.

Antylia Scientific, manufacturer and distributor of scientific laboratory equipment, was acquired for $1.34B by Brookfield Asset Management. Goldman Sachs and Jefferies advised on the sale.

Rhode, operator of a personal care products and Hailey Bieber’s brand, has reached a definitive agreement to be acquired for $1.0B by E.L.F. Beauty (NYS: ELF). $800.0M of the transaction is in cash and stock and the remaining $200.0M is in the form of an earnout.

Private Placement Transactions💭 

Neurvati, operator of a biotechnology company, raised $140.0M of Series D venture funding from Angelini Pharma and Blackstone Life Sciences.

Neuralink, developer of an implantable brain-machine interface, raised $600.0M of venture funding from SaxeCap, 1802 Ventures, and Neman Ventures at a pre-money valuation of $8.4B.

GlycoEra, operator of a biotech company, raised $130.0M of Series B venture funding led by Novo Holdings.

D-Robotics, provider and manufacturer of the humanoid robot, raised $100.0M of Series A venture funding from Lishi Capital, Hermitage Capital, Hillhouse Investment Group, and HPR Capital.

Odds of the Day 🍒 

Kalshi traders are pricing in a 62% chance of the Knicks starting a comeback.

*New Traders on Kalshi receive a $20 bonus of trading credit when depositing $100+ with the code “HYH”.

Noteworthy Chart 🧭

Per Bloomberg and PitchBook, PE Fundraising is slow so far this year:

Meme Cleanser 😆 

Until next time!

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