9 stories we are following this morning.
1. The markets point decidedly down pre market.
“US stock futures fell early Monday as investors prepared for another week of developments on President Trump’s fast-moving tariff policies and for the kickoff of Big Tech earnings reports.”
2. Apple’s market cap has fallen below $3 trillion after closing in on $4 trillion last year. The stock is down 21% year to date.
3. NVIDIA’s market cap has fallen to $2.47 trillion after once being above $3.5 trillion. See “Nvidia’s stocks falls. How CEO Jensen Huang is trying to ease trade war fears”. Barrons.
4. Microsoft’s market cap is at $2.73 trillion and down nearly 13% year to date.
5. Private Equity World Engulfed by Perfect Storm. The Wall Street Journal. Essentially the article says PE firms were struggling before the tariff battles and now deals have moved to a standstill. The three largest buyout firms are down more than 20% year to date. Blackstone, Apollo Global Management, Inc. and KKR.
“The longer the deal logjam lasts, the harder it will be for firms to hand money back to clients such as pensions and endowments. The amount of unrealized value the funds owe their investors has hit record levels, according to an analysis by credit-ratings firm Moody’s Ratings. That makes it tougher for the firms to raise new funds.”
6. Investors in PE funds keep making commitments to new funds and funding capital calls. Yet the return of capital and profits from the last two or so vintage funds is moving very very slowly if at all.
7. Netflix stock rises. Barrons.
“Netflix stock was rising Monday after a strong first-quarter earnings report helped it shrug off a slump for the broader market. Shares climbed 3% to $1,001.96 ahead of the opening bell.”
Netflix is up nearly 10% year to date.
8. “Pope Francis, history’s first Latin American pontiff who charmed the world with his humble style and concern for the poor but alienated conservatives with critiques of capitalism and climate change, died Monday. He was 88.” AP.
9. Excited to interview Jennifer June VMG Health, Elizabeth Hutson EGH, and Chris Felderman Palm Tree LLC on the Becker Private Equity and Business Podcast.