Stay up to date on the latest market news with daily analysis of the investing landscape, served up Brew-style.

Brew Markets

Stock Market News

Lucy Brewster

brewmarkets.com

There are people out there giving bad investing advice—and then there are those who keep proselytizing even after being convicted of securities fraud.

Martin Shkreli, the infamous executive who made a name for himself by raising the price of a life-saving medication by 5,000%, has been touting a bunch of bets against pharmaceutical companies on X. Even stranger, his track record is actually…pretty good so far?

While Shkreli’s drug-pricing antics spurred a ton of headlines and hate for him, that incident is not what got him convicted of securities fraud. That little hiccup had to do with manipulating the stock of his pharma company Retrophin and 

Apparently, his experience at the helm of a pharmaceutical company has given him some insight into spotting fellow pharma frauds. Back in November 2024, Shkreli announced he was shorting Cassava Sciences, arguing that he doesn’t think the company’s Alzheimer’s treatment works. Its stock has fallen 24% this year.

He also shorted INmune Bio at the end of June, again noting that its hit drug “basically doesn’t work.” Shares immediately plunged 56% the next trading day, and remain down 21.34% over the last month.

More recently, at the end of July he announced he was 

. He warned that the company had “some of the worst data I've ever seen,” and said shares will fall 80% in the next four to six weeks. The stock has dropped 78% over the past month.

: None of that means you should take your investment advice from the Pharma Bro. It’s more likely that, in a world of meme stocks and internet cache, Shkreli has garnered enough of an investor following that retail traders are backing up his calls with big money, making his predictions a reality.

Then again, the former pharma exec also dropped another piece of news today on X: He’s shorting 

. Shkreli isn’t the only one worried about OpenDoor’s valuation—for once, the majority of analysts 

Pharma Bro is at it again

Martin Shkreli is shorting a pharmaceutical company, and people are listening to him for some reason.

Pharma Bro declares pharma no-no

Mark Reeth

Have you noticed that restaurants are crazy for chicken lately? It’s not just in your head: The return of Taco Bell’s crispy chicken nuggets saved Yum Brands last quarter, while McDonald’s highlighted how the Snack Wrap helped 

. Even grilled-chicken chain El Pollo Loco is giving in and rolling out 

 later this year to arrest its sales slowdown.

The chicken bonanza has a lot less to do with a love of all things wings, and a lot more to do with economics. The price of poultry has remained stable lately, rising just 4.5% in the last 12 months, according to the latest CPI report. Beef prices, however, have soared 17.5% in the same period. The problem is shrinking herds: Barron’s reports that US cattle inventory has fallen to its 

The result is falling profit margins for burger-focused restaurants in the fast-food industry, as well as steak-centric sit-down chains like Texas Roadhouse. Many restaurants have turned to low-margin poultry offerings to help boost the bottom line, while others are focusing on 

, like Shake Shack, which is rolling out a french onion soup burger that sounds kind of great, actually.

The point is, as beef prices continue to climb, we have yet to reach 

—leaving major chicken suppliers like Tyson Foods and Pilgrim’s Pride sitting pretty.

Beef prices push restaurants to chicken

The cost of beef is cutting into company profits, forcing restaurants to pivot to poultry.

Where's the beef?

The White House isn’t the only one playing hardball.

Beijing just announced it’s launching two major probes into the American semiconductor sector—right as representatives from the US and China meet in Madrid to work out a trade deal.

 related to American chipmakers, essentially accusing US companies of pricing analog chips below fair market value and therefore hurting China’s domestic business. The ministry also launched a separate anti-discrimination probe regarding the US’s policies against China’s chip sector.

Semiconductor companies potentially affected by the two new probes fell: Texas Instruments dropped 2.41%, while Analog Devices lost 0.12%, and ON Semiconductor dropped 0.31%.

On top of that, China’s market regulator 

 on its assertion that the king of all semiconductor companies, Nvidia, violated Chinese antitrust law. Beijing first opened the probe into Nvidia late last year after the firm acquired Israeli company Mellanox back in 2020.

The news could seriously kneecap Nvidia if China continues to bar the semiconductor giant from selling its chips there. Over the past four quarters, Nvidia’s China revenue was $13.5 billion, or 

—down from 21% a year prior, according to Barron’s. The company forecast no Chinese revenue in its last quarterly guidance, which it acknowledged will cut its sales by between $2 billion and $5 billion this quarter.

 Semiconductors have become a point of tension in the ongoing geopolitical beef between the US and China. The US government sees China’s AI development as a threat to national security and to its domestic AI dominance, and the White House has been trying to thwart China’s progress by enacting export restrictions. China’s newest investigations come right after the US added 23 Chinese firms to its “entity list”—which imposes restrictions on companies deemed national security risks.

Today’s discussion between the US and China is nominally about tariffs, but think of it kind of like when a couple is fighting about a dish left in the sink—it’s clear the issue is about 

But one piece of news today showed that the talks may result in a solution after all: US and Chinese negotiators announced they worked out the beginning of a framework for how to deal with TikTok. The WSJ reported that the escalation of the probe into Nvidia was a cover for the TikTok deal so China wouldn’t look like it was 

Maybe all the relationship therapy books are wrong, and calculated power moves, not open communication, are the way to resolving conflict.—

A semiconductor chip with US flag being made

China and US trade dispute disrupts chip stocks

Nvidia and fellow semiconductor stocks stumble as geopolitical giants duke it out.

Loaded trade talks

Tesla’s new big investor is…Elon Musk.

The CEO of the EV maker bought $1 billion worth of Tesla shares through a revocable trust last week. That marks the first time Musk has purchased Tesla’s stock in the open market since 2020, according to Bloomberg.

The reveal of Musk’s purchase comes on the same day Tesla Chair Robyn Denholm 

 a massive $1 trillion pay package for the CEO. Denholm reassured Bloomberg TV that the giant compensation plan is meant to account for an “outsized proportion” of Musk’s time over the next decade.

Shares of Tesla rose 3.62% today, finally popping into positive territory for the year after soaring 25% over the last three months.

Tesla shareholders’ logic seems pretty straightforward: If the CEO of the company is buying that much stock, that’s an indicator the people at the tippy top see positive things ahead for the business. Shareholders are also hoping that Musk’s decision to pivot the EV maker into an AI and robotics company has his full attention, and that this recent purchase underscores his newfound commitment to the company’s next evolution.

In addition to that basic dynamic, Tesla investors have a unique relationship with Musk, viewing him as synonymous with the company’s success instead of just another CEO.

“Musk is driving this vision and is now in a ‘wartime CEO’ mode which is music to the ears of Tesla bulls with this AI Arms Race happening across the tech world,” wrote Wedbush analyst and Tesla bull Dan Ives in a rather dramatic note yesterday.

 right now: It’s currently trading at roughly 168 times its estimated 2026 earnings, compared to the rest of the Mag 7, which is only trading at an average of 28 times future earnings.

Investors’ optimism doesn’t seem to match reality. Last year, Tesla’s US EV market share dropped to 40%—its lowest point since 2017—partially due to backlash surrounding Musk’s foray into right-wing politics.

Despite his purchase of Tesla stock seeming to indicate that Musk is focused on the company, it’s clear to anyone with an X account that he may remain more distracted than shareholders would like.—

Tesla's newest investor: Elon Musk

Musk bought $1 billion of Tesla shares in a vote of confidence for the EV company.

Tesla finally drives into the green

Remember a few weeks back when we warned that September is historically 

 for the stock market? Well, this September is bucking the trend.

The S&P 500 has enjoyed 24 record closing highs as of yesterday, which, as the analysts at Bespoke Research pointed out, is above the annual average of 18—but still a far cry from 2024’s 57 record highs. Regardless, the market’s recovery after the Liberation Day selloff has been nothing short of phenomenal, and stocks have really 

 in September: The S&P 500 has reached a new record high in 4 of the 10 trading days this month.

Of course, the market’s massive surge has many worried that the rally may be about to run out of steam. Labor market and inflation data point to a possible oncoming recession, while the market’s massive concentration in Mag 7 stocks leaves it vulnerable to a slowdown in the AI trade.

But one Wall Street bigwig still sees good things ahead. Morgan Stanley CIO Mike Wilson recently said that the US has been in a “rolling recession” since 2022, in which different parts of the economy slow at different times but the overall market 

. He believes that a “rolling recovery” now lies dead ahead.

“Bottom line, a new bull market for equities began with the trough in the rolling recession that began in 2022,” Wilson said. “It’s still early days for this new bull, which means dips should be bought.”

The "rolling recession" is over: Morgan Stanley

September has been a great month for stocks, and Morgan Stanley thinks the rally will continue.

The bull market keeps rolling

It’s only been a few weeks since Paramount and Skydance finally joined forces after a dramatic on-again, off-again merger process filled with regulatory scrutiny and unwanted attention from President Trump. But the newly combined home of CBS, MTV, and Nickelodeon has wasted no time making its next move—and it’s a big one.

The Wall Street Journal reported today that Paramount Skydance is preparing 

 for Warner Bros. Discovery. Shares of Warner Bros. Discovery skyrocketed 28.95%, on the news, while Paramount Skydance jumped 15.55%.

Earlier this year, Warner Bros. Discovery announced plans to separate into 

: Warner Bros., focused on studios and streaming with Warner Bros. Motion Picture Group, DC Studios, and HBO; and Discovery Global, focusing on Discovery+ and TV networks like CNN and TNT Sports.

Warner Bros. Discovery’s management team touted the proposed separation as a way for each individual company to “leverage their strengths and specific financial profiles.” But apparently 

, which owns 100% of Skydance Paramount, feels that bigger is better: The WSJ reports that Paramount Skydance’s takeover attempt would be a majority cash bid for the entire company as it currently exists.

In a world where streaming services are a dime a dozen, it could make sense to join forces and tout more offerings on a single platform than competitors can muster. Or perhaps there’s some synergy to be found across the two companies’ various studios and channels that can lead to cost-cutting and higher profits.

Whatever the case may be, everything will be just fine as long as they don’t cancel 

Paramount Skydance and Warner Bros. Discovery logos

Paramount Skydance to acquire Warner Bros. Discovery

The majority cash bid could see two entertainment behemoths join forces.

Will we call it Paramount Warner Bros. Skydance Discovery?

Robinhood started out as a retail trading platform in the meme stock heyday of the pandemic years, and has transformed into a crypto, sports betting, and even credit card company. Now, it’s a social media app, too.

, where users can post their trades live, follow other traders, talk to each other, and tout their investment ideas, the company said.

“Robinhood is no longer just where you trade—it’s your financial superapp,” said Robinhood CEO Vlad Tenev in a statement.

The new product—dubbed “Robinhood Social”—will be launched by invitation only next year, with expectations to eventually roll out the product to more users. Unlike other social platforms, posting will be relegated to focusing on 

Robinhood Social will also include avatars that track the 

 like Nancy Pelosi and Mark Zuckerberg, according to Axios.

Shares are up 216% this year thanks to strong customer growth and the stock’s forthcoming addition to the S&P 500.

Social media sites have famously played a huge role in the proliferation of meme stock mania. The subreddit r/WallStreetBets now has roughly 20 million followers, where users post trades, ideas, and information about companies on a daily basis.

It isn’t just Reddit: Momentum on X (formerly Twitter) has undoubtedly fueled the most recent meme stock wave that boosted shares of companies like Kohl’s, Opendoor, and American Eagle.

Concentrating all that noise into one platform where users can actually trade could certainly expand Robinhood’s base of 26.5 million customers, if done successfully. If not, it may just lead to more retail trading chaos.—