Profit Rejected, Power Secured: OpenAI Defies Wall Street as Skechers Goes Private

Money Masters' Market Movers 19

May 07, 2025

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Dear Money Master,

OpenAI just shocked Silicon Valley, slamming the brakes on a full pivot to profit and doubling down on its nonprofit roots. In pharma, Novo Nordisk is taking aim at copycats eating into its blockbuster drug sales, while AMD is dodging regulatory landmines to keep its AI chip empire intact. Over in Europe, Philips is sounding alarms over tariffs that are already slicing into profit margins.

Add in Skechers' surprise decision to abandon the public markets. Find out more about this acquisition deal in our app.🪙💼

📰 Your Daily Financial Digest - May 7th, 2025

🌍 Economics & Finance:

  1. China Cuts Rates, Frees $138.5B to Revive Growth 💴 Read More
    The PBOC lowered its 7-day repo rate to 1.4% and slashed the reserve requirement ratio by 50 basis points, adding major liquidity amid trade strain.

  2. Student Loan Collections Resume After 5 Years 🎓 Read More
    Borrowers in default face benefit garnishments starting June, marking a sharp policy shift under the Trump administration’s education strategy.

  3. Hispanic Consumers Pull Back on Spending 🛒 Read More
    Coca-Cola and Colgate note declining sales among Hispanic shoppers as economic pressures and immigration fears weigh on this key demographic.

💻 Technology:

  1. SpaceX Gets FAA Green Light for 25 Annual Launches 🚀 Read More
    The Starbase site in Texas can now handle 5X more launches after an FAA review deemed no major environmental impact, boosting Musk’s space agenda.

  2. Most Trump Coin Investors in the Red 💸 Read More
    Over 750K wallets lost money on the $TRUMP meme coin, while just 58 wallets cashed in over $10M each. Top holders get a dinner with Trump on May 22.

  3. OpenAI Scraps For-Profit Plans, Stays Under Nonprofit Control 🧠 Read More
    OpenAI will restructure as a Public Benefit Corporation under its nonprofit board. The shift preserves mission-first governance while enabling it to pursue a $30B investment, reportedly tied to SoftBank.

💹Earnings:

  1. Novo Nordisk Trimmed Outlook 💊 Read More
    Wegovy sales jumped 83%, though below forecasts. With compounded rivals set to phase out by May 22, Novo expects regained momentum in H2 2025.

  2. AMD Beats Q1 Estimates, Flags $1.5B Export Headwind 🖥️ Read More
    AI demand drove a 36% revenue surge, but export controls on chips to China will cost AMD $700M next quarter. Data center sales rose 57% YoY.

  3. Philips Cuts Profit Margin Forecast on Tariffs ⚙️ Read More
    Despite beating Q1 sales estimates, Philips lowered its EBITA margin outlook by 100 bps as U.S.-China tariffs and macro uncertainty weigh on profits.

🔍 Deep Dive: Why Skechers Just Sold Itself Off

Skechers is ditching Wall Street and going private in a $9.4B takeover by 3G Capital. But why now and what’s really behind the timing? Our latest article breaks down the acquisition deal.

TLDR:

  • Skechers is being acquired for $63/share—30% above market price.

  • The footwear giant is retreating from public markets amid retail chaos.

  • 3G Capital sees long-term upside despite global trade headwinds.

  • Trump-era tariffs and supply chain shocks may have accelerated the exit.

📲 Read the full story on the Money Masters app.

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