✈️ Activists take on airlines

…and the WNBA’s logo shot   Goin’ south (Sherwood)   Sponsored by Yesterday’s Market Moves   Dow Jones 38,747 (-0.31%) S&P 500 5,375 (+0.27%) Nasdaq 17,344 (+0.88%) Bitcoin $67,406 (-3.01%) Dow Jones 38,747 (-0.31%) S&P 500 5,375 (+0.27%) Nasdaq 17,344 (+0.88%) Bitcoin $67,406 (-3.01%) Hey Snackers, Some weddings are lavish, but this one’s nuts: the winner of a [contest]( run by Planters and Miller High Life will get a free wedding where Mr. Peanut walks them down the aisle. The lucky couple will arrive in a Planters Nutmobile (exactly what you think it is). Stocks were mixed yesterday ahead of today’s one-two punch of the May inflation report and the Fed’s latest interest-rate decision. Apple stock [closed at a record]( yesterday for the first time this year after the company’s [AI announcements](. Reroute Elliott Management takes a $2B stake in Southwest, but lifting off could mean changing course Check your baggage… Southwest Airlines stock had its best day in more than two years on Monday after [news]( that activist hedge fund Elliott Management took a nearly $2B stake in the carrier. [Activists]( often use their stakes in companies to force change to try to boost returns. Elliott — which now owns ~11% of Southwest — wrote a letter to the company’s board on how to create a “stronger Southwest.” Part of its plan: replace long-time CEO Bob Jordan, its exec chairman, and some board members. Southwest doesn’t love the flight plan: - Long haul: The airline replied by saying it already has the “right strategy, the right plan, and the right team” to boost its long-term value. Since 2019, shares are down 45%. - Nonstop: Since launching, in 1977, Elliott has only lost money during two years, and has earned solid annualized returns with activist plays in companies including AT&T, PayPal, and Pinterest. Now it hopes to boost Southwest’s shares. Losing altitude… After Southwest lost $3B in 2020, its income is still far lower than prepandemic levels ([check out this chart](. Southwest’s struggles deepened in December 2022 after bad weather and faulty scheduling software resulted in 16K+ canceled flights and millions of stranded passengers (Southwest got fined $140M for the holiday meltdown). Now it’s dealing with a delay in 737 jet deliveries from Boeing, its exclusive plane supplier. Last quarter, the airline posted a $231M loss and cut its annual capacity and revenue expectations. THE TAKEAWAY A new pilot can reroute a business… Southwest is known for having only one class and limited premium perks. Meanwhile, rivals like Delta and United have forecast record summer demand as they benefit from surging first- and business-class revenue. While an activist overhaul could help Southwest boost profits, it could also mean nixing perks that’ve made Southwest flyers loyal, like free checked bags and unassigned seats. [Read this online]( Sponsored by Global X The AI race is on. Alexa, invest $2.75B in Anthropic. Amazon just added to its already sizable investment in AI startup Anthropic, bringing the total stake to $4 billion.1 As Amazon’s largest external venture investment, Anthropic has a valuation of $18.4 billion — and meanwhile, AI juggernaut Nvidia just unveiled its most powerful AI processor yet. Eyes on the prize: Generative AI could represent a $1.3T opportunity by 2032,2 as the world’s tech heavyweights all angle for the next AI breakthrough. Individual investors can place their bets on one — or potentially, [back the field](. [Global X’s Artificial Intelligence & Technology ETF (AIQ)]( invests in companies that potentially stand to gain from the expansion of AI. With $1B+ in assets, its top holdings include Magnificent 7 stocks Nvidia, Meta, and Amazon, plus tech luminary IBM.* [Discover more about investing in AIQ]( This content is not intended to provide legal, tax, or investment advice. 3-POINTER The WNBA scores record viewership as women’s sports take center court Hard in the paint… The Women’s National Basketball Association just made a logo shot: the league said that May was its best attended opening month in 26 years, with more than half of all games selling out (up 156% on the year). Out of the stadium and into the living room, the WNBA said the start of this season was its most watched ever. Games averaged 1.3M+ viewers across major networks like ABC, ESPN, and CBS — up 3x from last season. - With the assist: The league credited stars Caitlin Clark, Angel Reese, Cameron Brink, and Kate Martin with driving more interest. - Interest = $$: The WNBA said merch sales have more than tripled on the year. Puttin’ points on the board… Women’s sports are boomin’ beyond the WNBA. Last year’s women’s college volleyball attendance set records, and for the first time there will be an equal # of men and women competing in the Summer Olympics. Last year, global consulting biz Deloitte said women’s elite sports were expected to generate a record $1B in revenue this year, a 3x jump from 2021. In November, the National Women’s Soccer League announced a four-year media deal worth $240M with networks including CBS and ESPN. In January, ESPN sealed an eight-year, nearly $1B deal with the NCAA to show 21 women’s (and 19 men’s) events. THE TAKEAWAY Everyone loves a winner… Analysts expect both collegiate and pro women’s sports to continue to see climbing viewership, sponsorship deals, and earnings. That could spin up a flywheel effect, with more money drawing in more athletes, sponsors, and fans, which draws in more investment. Rinse, repeat. [Read this online]( Tesout Americans don’t like Teslas unless they own one YouGov data found that Americans have a [negative view]( of Tesla. The only people who rated the EV maker highly? Tesla customers. The gap in brand perception is huge. [Check it out](. What else we're Snackin' - [In-N-Up]( “Animal-style” icon In-N-Out raised its prices in California again after the state passed a $20/hour minimum wage for fast-food workers. A Double-Double burger meal now averages $10 before tax. - [Unlocked]( The primary passage into the Baltimore port has been restored, two months after the deadly collapse of the Key Bridge. The US Army Corps of Engineers cleared the channel of 50K tons of wreckage. - [LowBatt]( GM cut its EV-sales forecast for the year as electric adoption slows among Americans. The Chevy maker expects EVs to make up 8% of all US car sales this year (lower than industry outlooks of 10%). - [Max]( Boeing said it delivered 24 commercial jets in May, down 50% from a year earlier. The beleaguered plane maker said it’s slowed production to improve quality after its 737 Max [doorbacle]( in January. - [Beep]( UAW President Shawn Fain is under investigation by a federal court monitor after two union leaders accused him of retaliating against them. Fain led last year’s contract wins against the Big Three carmakers. Snack Fact Of the Day Over a quarter of Gen Zers said they follow a vegetarian or vegan diet [Read more]( Wednesday - US Fed’s interest-rate decision - US consumer price index - World Day Against Child Labour - Earnings expected from Broadcom and Dave & Buster’s Authors of this Snacks own shares of: Apple, Delta, GM, and Tesla Important Information: ¹CNBC. (2024, March 27). Amazon to spend $2.75 billion on AI startup Anthropic in its largest venture investment yet. ²Bloomberg, Jun 2023 *Holdings are subject to change. For current holdings, visit [( **Investing involves risk, including the possible loss of principal. The investable universe of companies in which AIQ may invest may be limited. The companies in which the Fund invests may be subject to rapid changes in technology, intense competition, rapid obsolescence of products and services, loss of intellectual property protections, evolving industry standards and frequent new product productions, and changes in business cycles and government regulation. International investments may involve risk of capital loss from unfavorable fluctuation in currency values, from differences in generally accepted accounting principles or from social, economic or political instability in other nations. Emerging markets involve heightened risks related to the same factors as well as increased volatility and lower trading volume. AIQ is non-diversified. Carefully consider the Fund investment objectives, risks, and charges and expenses. This and other information can be found in the [Fund summary]( or [full prospectuses](. Please read the prospectus carefully before investing. AIQ is distributed by SEI Investments Distribution Co. 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