Retail Is Retreating, Drug Prices Are Falling, and Xbox Is in Trouble!

In partnership with

Dear Money Master,

This week starts with Big Pharma taking center stage, after several major drugmakers agreed to cut drug prices in exchange for tariff protection, showing how government influence is now directly shaping pricing and long-term strategy.

In retail, two opposing moves reveal where the industry is headed. The Honest Company is shutting down its direct-to-consumer business and mobile app, while Pacsun is doubling down on physical stores after reporting strong, double-digit foot traffic growth.

Tech and entertainment faced tougher scrutiny. Xbox’s future as a hardware player is increasingly questioned amid layoffs and studio closures, while Disney’s latest Avatar installment fell short of opening expectations. In autos, Lucid’s high-stakes Gravity SUV launch underscores how execution now matters more than hype in an increasingly competitive EV market.

On the earnings front, investors found clear bright spots, Carnival delivered a phenomenal year as consumers continue spending on experiences, and Nike beat expectations despite ongoing weakness in China🌍💼

📰 Your Daily Financial Digest - December 22th, 2025

🌍 Economics & Finance:

1. Pharma Giants Agree to Lower Drug Prices 🩺
   Major drugmakers accepted voluntary price cuts tied to international benchmarks, gaining a three-year exemption from planned pharmaceutical tariffs while committing to expand U.S. manufacturing investments. Read More

2. Pacsun Plans Biggest U.S. Store Expansion in Two Decades 🏬
   After double-digit foot traffic growth, the retailer opened nine stores in 2025 and signed leases for 2026, targeting 20–35 new U.S. locations over three years. Read More

3. The Honest Company Shuts Down DTC Sales 💻
   Online sales and its mobile app will end Dec. 28, pushing the brand toward wholesale partners like Walmart, Target, Amazon, and Kroger for future growth. Read More

💻 Technology:

1. Xbox Faces Existential Questions Amid Layoffs 🎮
   Former Microsoft insiders question the company’s commitment to console hardware, as layoffs, studio closures, and strategy shifts fuel doubts about Xbox’s long-term future. Read More 

2. Lucid’s Gravity SUV Enters a High-Stakes Market ⚡
   The $79,900 three-row Gravity marks Lucid’s move into the SUV segment, with future plans for a $50,000 model as it navigates supply chain and scaling challenges. Read More

3. Avatar: Fire and Ash Misses Opening Expectations 🔥
   The film’s $88 million domestic debut lagged forecasts, but long theatrical legs could still mirror prior Avatar releases that gained momentum after opening weekend. Read More

💹Earnings:

1. Carnival Cruises Delivers a Standout Year 🚢
   Adjusted EPS topped estimates while revenue hit a record, with management forecasting $3.5 billion in adjusted net income for fiscal 2026, above both last year and analyst expectations. Read More 

2. Nike Beats Expectations Despite China Slump 👟
   Earnings and revenue topped forecasts, powered by North America growth, though Greater China sales fell sharply and net income declined 32% year over year. Read More

3. Lamb Weston Sees Margin Pressure in Q2 🥔
   Higher volumes were offset by weaker pricing, leading to lower adjusted EBITDA despite rising net sales and foreign currency tailwinds. Read More

Find customers on Roku this holiday season

Now through the end of the year is prime streaming time on Roku, with viewers spending 3.5 hours each day streaming content and shopping online. Roku Ads Manager simplifies campaign setup, lets you segment audiences, and provides real-time reporting. And, you can test creative variants and run shoppable ads to drive purchases directly on-screen.

Bonus: we’re gifting you $5K in ad credits when you spend your first $5K on Roku Ads Manager. Just sign up and use code GET5K. Terms apply.

Use code GET5K now

To your financial empowerment, The Money Masters Team

P.S. Stay connected! Don't forget to follow us on social media! 📱🌐

DISCLAIMER: This information is for educational purposes only and does not constitute financial advice. The publisher does not accept any responsibility for any losses incurred as a result of actions taken based on the information provided. Always conduct your own research or consult with a financial advisor before making any investment decisions.