What You Need To Know For September 11th

Welcome back,

Today we remember those who lost their lives on September 11th, 2001. Every September 11th, we point back to the brave story of the Man in the Red Bandana. Welles Crowther worked on the 104th floor of the World Trade Center as an equity trader. During his final hours, Welles, masked in his red bandana, found and directed people towards the emergency exit, going back up and down the stairs to make sure survivors were getting out of the building. Today we honor the bravery of those who made the ultimate sacrifice to save lives.

Onto the piece:

Earnings Corner 📈 📉

Oracle $ORCL ( ▲ 35.95% ) The company came in light with a revenue miss at $14.9B vs. $15.0B and an EPS miss at $1.47 vs. $1.48. However, none of that mattered, the stock rose higher after the company reported a massive 359% surge in backlog to $455B, driven by four new multibillion-dollar AI contracts. Cloud infrastructure revenue jumped 55% YoY, with fresh partnerships from OpenAI, Google, Meta, and xAI. Management also unveiled plans for an “AI Database” to let customers run models directly on their Oracle data. OpenAI will be a top customer after signing a contract to purchase $300B in computing power over roughly five years from Oracle, one of the largest cloud contracts ever signed. The company guided OCI to $18B this year, charting a path to $144B by 2030, while raising capex to $35B to secure GPUs and expand datacenters. It was Oracle’s best day gain since 1999, and Larry Ellison’s net worth spiked + $105B to $397B, officially making him the world’s richest person at 81.

Nebius $NBIS ( ▼ 2.43% ) Beat on revenue coming in at $105M vs. $97M. The company announced a $17.4B multi-year Microsoft deal (expandable to $19.4B), cementing its role as a core AI cloud provider. Additionally, Nebius launched a $1B public share offering and $2B in convertible notes to finance datacenters, GPUs, and strategic land buys. The two moves give Nebius long-term visibility and the capital needed to scale aggressively into hyperscaler demand.

Chewy $CHWY ( ▼ 16.6% ) Beat on both revenue and EPS, but guidance and margins underwhelmed. Sales rose 9% to $3.1B and EPS came in at $0.33, with Autoship now driving over 80% of revenue. Management raised its full year sales outlook and guided Q3 roughly in line. But they cautioned Q2 was the peak for gross margin and flagged heavier spending in the back half, leaving little short term upside. At roughly 45x earnings, expectations were high and with only steady guidance, the Street judged the results as just okay and dumped the stock.

Gamestop $GME ( ▲ 3.31% ) Beat on both revenue and EPS. Sales rose 22% to $972.2M and adjusted EPS came in at $0.25 vs. $0.16. Collectibles jumped 63%, hardware/accessories up 31% to $592M, while software slipped 27%. The Nintendo Switch 2 launch helped drive demand. GameStop also disclosed $528M in Bitcoin holdings and announced a special warrant dividend. No formal guidance was given.

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Today’s Headlines 🍿 

• Jobs shock: The U.S. economy added 911,000 fewer jobs from March 2024 to March 2025 than initially reported, marking the largest downward revision on record. The data revision comes weeks after President Trump fired BLS Commissioner Erika McEntarfer, intensifying scrutiny of the agency and fueling political clashes over the true strength of the labor market

• August PPI: Wholesale prices unexpectedly fell last month, dropping 0.1%, well below the estimated 0.3% gain. This marks a 2.6% gain y/y and paves the way for a Fed cut next week

• Charlie Kirk was assassinated: Conservative activist Charlie Kirk was shot while speaking at a Utah Valley University event. Kirk passed away shortly after. Charlie is survived by his wife and two young children.

• Apple’s latest launch: Apple debuted a new array of products, including an ultrathin iPhone Air, Apple Watch Series 11, and AirPods that can translate speech in real time. However, the stock $AAPL ( ▼ 3.23% ) fell as investors were underwhelmed by the lack of innovation and AI integration

• Sydney Sweeney doubles down with Jimmy Choo: The actress is starring in the shoe brand’s Fall 2025 campaign, sending a boost for $CPRI ( ▲ 0.14% ) which owns the brand

• Klarna pops in NYSE debut: Shares jumped 30% to open at $52 after the BNPL giant priced its IPO above range, raising $1.37B at a $15B valuation. The listing delivers big wins for early backers like Sequoia, though SoftBank’s stake remains far underwater from its 2021 bet at a $46B valuation

• When PE buys your block: Private equity firms have become major players in single-family rentals, drawing fire for outbidding homebuyers while offering more affordable suburban rentals. Studies show the model can reduce segregation and expand access to good schools, but it also pushes up home prices for families on the cusp of ownership

• AI is rewriting the PE playbook: Firms like Carlyle are embedding generative AI into deal sourcing, diligence, and credit work, cutting tasks that once took weeks down to hours. Surveys show nearly all major managers expect material gains within five years, with AI shifting from pilot projects into core strategy

• PE raids Wall Street as talent wars heat up: Fundraising and investor-relations roles are in highest demand as private equity firms overpay to secure capital-raising expertise. Global megafunds are also poaching junior bankers years in advance, forcing Wall Street to tighten retention rules amid the scramble for dealmaking talent

• Dropbox credit line expands to $2.7B: Blackstone has upsized its private credit loan to Dropbox by $700M. The company authorized a $1.5B stock buyback alongside the deal, while eyeing repayment of convertible notes due 2026

• Samsung Life buys into Hayfin: Samsung Life is taking a minority stake in European private credit giant Hayfin, joining Mubadala and AXA IM Prime as shareholders after a management-led buyout. Hayfin manages about €34B and is one of Europe’s largest direct lenders, with the private credit market forecast to hit $2.8T by 2028

• $3.6B in private credit powers data center deal: Blackstone and Ares are leading a financing package to back Warburg Pincus’ acquisition of Park Place Technologies. The firm plans to merge the data center services company with portfolio peer Service Express to build a larger platform in the sector

• A judge has blocked Trump from firing Lisa Cook, granting her a temporary court order to keep her seat on the Fed’s board while the lawsuit challenging her firing proceeds. The judge says Cook is “substantially likely” to succeed on her claim that Trump violated the Federal Reserve Act’s ‘for cause’ provision

• Trump’s tariff warning: Trump told European officials he is prepared to slap new tariffs on China and India to pressure Putin into Ukraine peace talks — but only if the EU joins in and institutes 100% tariffs. The proposal comes as Washington and Brussels also weigh fresh sanctions on Russia’s oil tankers, banks and energy firms while Moscow intensifies its bombing campaign

• Mexico Seeks to Raise Tariffs on Cars Made in Asia to Up to 50% - The country is increasing tariffs from a prior level of 20% to protect local jobs as Chinese cars are entering the Mexican market below the country’s “reference prices”

• Dimon’s warning: The JPMorgan CEO said the full impact of tariffs, immigration, and geopolitical tensions on the US economy has yet to be felt. He cautioned that expected Fed rate cuts will have little effect and predicted more bank consolidation ahead while ruling out overseas acquisitions

  • Wells Fargo CEO Charles Scharf echoed a similar sentiment, stating that companies and top earners are in great shape, but there are signs of stress among low earners. When looking at spending and jobs data across the wealth spectrum, Scharf says “there’s probably more downside than upside”

• Scott Bessent wants to fight: Bessent told top housing finance official Bill Pulte “I’m going to punch you in your f***ing face” for privately badmouthing him to Trump

• Subprime auto lender collapse: Tricolor Holdings, which specialized in selling used cars and issuing loans to undocumented immigrants, has filed for Chapter 7 liquidation with between $1B and $10B in liabilities The filing lists 25,000 creditors, including JPMorgan, Fifth Third, and Barclays, which face hundreds of millions in potential losses; the company had made over $1B in auto loans last year and securitized nearly $2B since 2022

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M&A Transactions💭 

FAW Bestune, manufacturer and provider of electric vehicles, was acquired for CNY 5.42B by China FAW Group (SHE: 0008000) and FAW Equity Investment.

Sonoco ThermoSafe, manufacturer of temperature-controlled packaging solutions, has entered into a definitive agreement to be acquired for $725.0M by Arsenal Capital Partners. Morgan Stanley advised on the sale.

VideoVerse, developer of a video technology platform, was acquired for $283.0M by Minute Media.

Treatt (LON: TET), operates in the fragrance and FMCG industries, has reached a definitive agreement to be acquired for GBP 159.09M by Exponent Private Equity. EV/EBITDA was 8.61x and EV/Revenue was 1.16x. Peel Hunt Advised on the sale.

Teck Resources (TSE: TECK.B), a metals miner, reached a definitive agreement to be acquired for CAD 18.358B by Anglo American (LON: AAL). EV/EBITDA was 11.73x and EV/Revenue was 2.99x. Ardea Partners, BMO Capital, and Scotiabank advised on the sale.

Profertil, manufacturer of agricultural fertilizers, has reached a definitive agreement to be acquired for $600.0M by Adecoagro (NYS: AGRO) and TPF (BUE: YPFD). Bank of America advised on the sale.

Mediobanca (MIL: MB), an Italian investment bank, was acquired for EUR 16.0B by Banca Monte dei Paschi di Siena (MIL: BMPS). Centerview Partners and European Investment Bank advised on the sale.

Foot Locker, operator of footwear and apparel retailers, was acquired for $5.184B by Dick’s Sporting Goods (NYS: DKS). EV/Revenue was 0.66x.

FirstBank, provider of banking and financial services, has reached a definitive agreement to be acquired for $4.1B by The PNC Financial Services Group (NYS: PNC). Morgan Stanley and Goldman Sachs advised on the sale.

Canvas Energy, operator of an independent oil and natural gas company, has reached a definitive agreement to be acquired for $500.0M by Diversified Energy Company (LON: DEC). Bank of America and Evercore Group advised on the sale.

Warehouse REIT (LON: WHR), operates a closed-ended investment company, was acquired for GBP 489.0M by Blackstone. EV/Net Income was 12.4x and EV/Revenue was 6.23x. Peel Hunt and Jefferies advised on the sale.

Private Placement Transactions💭 

ElevenLabs, developer of AI audio platform, has announced a $100.0M employee tender offer, enabling team members to realize liquidity at a company valuation of $6.6B.

Y-Combinator-backed Motion raises fresh $38.0M to build the Microsoft Office of AI agents. The Series C round was led by Scale Venture Partners at a post-money valuation of $550.0M.

X Square Robot, provider and developer of foundation model designed for general-purpose robots, raised $100.0M of Series A1 venture funding led by Alibaba Group and CAS Investment Management.

Supabase, developer of an open-source backend platform, raised $202.29M of Series D venture funding led by Accel.

Kin, operator of an online insurance platform, completed a $145.0M debt refinancing round and concurrently, the company raised $50.0M of Series E venture funding led by QED Investors and Activate Capital Partners at a pre-money valuation of $1.95B.

Hesta, developer of residential projects across England, was formed as a $202.4M joint venture between Countryside Homes and Homes England.

Databricks, developer of a data analytics platform, raised $1.0B of Series K venture funding led by Andreessen Horowitz and Insight Partners at a pre-money valuation of an estimated $99.0B.

Cognition, developer of an AI software engineer, raised $400.0M of Series C venture funding led by Founders Fund at a pre-money valuation of $9.3B.

Torus, developer of renewable energy technology, raised $200.0M of venture funding from Magnetar Capital.

Mistral AI, developer of a configurable AI platform, raised EUR 1.7B of Series C venture funding led by ASML Holding at a pre-money valuation of EUR 10.0B.

Alchemab Therapeutics, developer of a natural protective antibodies, raised $114.0M of Series A venture funding led by SV Health Investors, RA Capital Management, and Lightstone Ventures.

Odds of the Day 🍒 

Is Musk going to win back his crown by year-end? Kalshi traders are now pricing in a 39% chance of Ellison being the wealthiest person in the world still at year-end.

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Video of the day

Here is the SportsCenter video remembering Welles Crowther.

Until next time.

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