Good Morning! Happy Election week to all those who celebrate. Private equity is spending heavily on the US election. Nvidia is officially joining the Dow Jones index, replacing Intel. October jobs report widely missed estimates, coming in at 12k vs 100k expected. Warren Buffett offloaded more Apple stock. AI investments are finally paying off for Big Tech, TGI Fridays filed for bankruptcy, and Benioff is looking to sell Time Magazine.

Plus, Apple is acquiring the AI photo editing app Pixelmator, Wendy’s will close more than a hundred locations, and the art of being single.

ANNOUNCEMENT: Later this week, we’ll be sharing an exclusive venture capital deal as a thanks to you for being a Short Squeez subscriber. This and all future deals will be communicated in our Buysiders newsletter. This week’s deal is led by a founder who previously scaled a company to over $100M in revenue and a multibillion-dollar valuation in just six years. Click here to make sure you’re on the distribution list as we look for the next Uber, Netflix, or OpenAI.

_{SQUEEZ OF THE DAY}

Private Equity Hipsters Buying Apps

Bending Spoons is an Italian technology company… but it might operate a lot more like a private equity buyout firm than a traditional tech company. Bending Spoons has an unusual strategy - they buy up apps and make them ‘better’ through the traditional private equity playbook of cutting costs, raising prices, and enhancing existing products.

And unlike typical buyout firms that seek exits, Bending Spoons prefers a “buy and hold forever” model.

The strategy seems to be working so far. With a $2.6 billion valuation, Bending Spoons has over 5,000 apps in its pipeline and eyes a potential IPO in 2025. 

Its portfolio includes notable acquisitions like Evernote, WeTransfer, and Meetup, and it boasts high-profile backers, including Ryan Reynolds, Andre Agassi, and The Weeknd.

Bending Spoons targets subscription-based, cash-flowing apps and revamps them, often cutting staff and raising fees. For instance, after acquiring Evernote, they laid off half the team and increased subscription prices by 63%. This aggressive strategy has worked, making Evernote profitable for the first time in years.

Takeaway: Bending Spoons’ CEO, Luca Ferrari, compares himself to Warren Buffett and Charlie Munger, even if his “buy forever” strategy isn’t completely aligned with Berkshire Hathaway. And it’s simple economics on Bending Spoons’ part - they’re trying to test how much customers are willing to pay for their favorite apps.

So far, it’s working - Bending Spoons has 200 million active users across its apps and has seen sales surge to over $700 million this year. Just don’t be surprised if one day they buy your favorite app, and double the price to remind you how much you “love” it.

_{PRESENTED BY RYSE}

Missed Investing in RYSE? You Have Another Chance

RYSE is on the cusp of making automated smart shades a staple. And if you missed investing in their company, you have another chance.

Along with their recent launch in Best Buy retail stores, they’ve just opened a new public offering. You can invest in their company at just $1.75/share.

Best Buy has a knack for picking the up-and-coming tech products that go on to dominate the market. Their early bets on household items like Ring (acquired by Amazon for $1.2B) and Nest (acquired by Google for $3.2B) have a proven record of paying off. 

And now, they’re lifting the curtain on their latest find, launching RYSE’s SmartShades in over 120 retail stores. RYSE has already hit $8M+ in lifetime revenue with over 40,000 units sold, and the numbers are rising (along with the window shades). 

RYSE shareholders have seen their value increase 40% year-over-year, with strong upside remaining as the smart home industry continues its projected double-digit growth until 2033.

Invest in RYSE at just $1.75/share before it becomes a household name. 

_HEADLINES

Top Reads

• Private equity spends heavily in 2024 election (WSJ)

• Nvidia to join Dow Jones Industrial Average, replacing rival chipmaker Intel (CNBC)

• Buffett slashes Apple stake (CNBC)

• U.S. economy added 12,000 jobs in October, below estimate of 100k (CNBC)

• Disney forms business division for AI (YF)

• Intel upbeat despite $16.6B loss (CNBC)

• TGI Fridays files for bankruptcy (Axios)

• IRS announces 401(k) contribution limits for 2025 (CNBC)

• Private equity spends heavily in 2024 election (WSJ)

• CEOs are dodging questions about the election (YF)

• Marc Benioff looks to sell media company Time Magazine (CNBC)

• Apple is acquiring the popular image editing app Pixelmator (Verge)

• Prime Video bets on Black Friday (Variety)

• AI tech giants see AI bets starting to pay off (WSJ)

• Wendy’s announces it's closing more than a hundred locations across US (Fox)

• Amazon, Google show profit growth can quiet fears over heavy AI spending (YF)

• Private equity firms stick fund investors with ESG bills (WSJ)

• Trump loses $2.4B in net worth, social media stock implodes before election (CNN)

_{CAPITAL PULSE}

Markets Rundown

Stocks rise to start November: U.S. equities gained on Friday, lifted by tech earnings and expectations of a Fed rate cut next week. A weaker-than-expected jobs report, impacted by strikes and hurricanes, briefly pushed yields lower, but the 10-year Treasury yield later hit a four-month high.

Amazon rose 6% on strong earnings, and Intel gained 8% on positive guidance, while Apple faced caution over its revenue outlook. Defensive sectors lagged, contributing to positive overall sentiment.

Jobs report highlights mixed signals: October saw just 12,000 new jobs, below the forecast of 100,000, due to disruptions like the Boeing strike. Unemployment held steady at 4.1%. This suggests a labor market that is cooling but stable, supporting potential continued Fed rate cuts.

October recap: The month saw a dip in stocks after five months of gains, with Treasury yields climbing on strong economic data and inflation. Election uncertainty and rising VIX levels also added caution. Despite this, strong economic indicators and lower recession risks suggest potential opportunities in any election-driven market pullbacks.

Movers & Shakers

• (+) Avis Budget ($CAR) +11% after boosting its outlook on rental car demand.

• (+) Amazon ($AMZN) +6% after posting strong quarterly results.

• (–) Super Micro Computer ($SMCI) -11% after the fallout from firing its auditor.

Private Dealmaking

• Insider, a Turkish marketing platform, raised $500 million

• Noma, a cybersecurity startup, raised $32 million

• Spot AI, a video monitoring startup, raised $31 million

• Glow, a blockchain solar company, raised $30 million

• Flower, an energy storage software provider, raised $28 million

• BondBloxx, an income-focused ETFs provider, raised $27 million

For more PE, VC & M&A deals, subscribe to our Buysiders newsletter.

_ELECTIONS

US Election Forecast

Kamala is Klimbing and narrowed Trump’s lead to 4-points on the prediction market Kalshi, with just 2 days left until the election.

Get $20 to trade the election when you deposit $100 or more. See live odds and bet now.

_{BOOK OF THE DAY}

The Successor

An heir apparent to the first global media dynasty, Lachlan Murdoch has been waiting to run his father Rupert’s empire all his life. In this riveting first biography of a little-understood but hugely influential figure, acclaimed journalist Paddy Manning asks: can the dutiful son hang onto the empire, or will the third generation of Murdoch moguls prove the last?

Despite a life in the spotlight, Lachlan’s personality, politics, and business acumen remain enigmatic. Is he the ultra-conservative ideologue media reports maintain, or a free-thinking libertarian, as some friends suggest?

After emerging victorious from the Murdoch family’s turbulent succession wars, Lachlan is stepping up at a time of unprecedented instability. What can we expect from his time at the helm, and does he have what it takes to chart a future for this century-old company?

This is a book about the good, the bad, and the ugly of the global media world, and about America in the age of Trump and Murdoch.

“A book about power, apprenticeship, and succession in the first family of media.”

_{DAILY VISUAL}

86% US firms with Revenues > $100M Are Private

_{PRESENTED BY JKBX}

How Major Lazer Can Help Your Portfolio Perform Better

But not with investment advice–we’re talking about music royalties. Cha-ching!

You see, JKBX (pronounced “jukebox”) is changing the game by letting you buy shares of the biggest songs today, such as Major Lazer’s hit “Lean On,” with over 2 billion streams on Spotify, the 76th most-streamed-song of all time. 

What does that mean for you? The potential for consistent, predictable royalty payments.

(Another reason this asset class is so valuable around Election Day: Music royalties are a low-correlation asset, offering portfolio diversification without high volatility.)

Turn your playlists into a high-performing portfolio with JKBX today.*

_{DAILY ACUMEN}

Negative Thinking

Negative thinking is something we all experience, but it doesn’t have to dominate our thoughts. By paying attention to where we direct our mental energy, we can foster more positive emotions and balance in our lives.

Consider viewing yourself as a "work in progress" instead of a "finished product"—shifting your internal dialogue to embrace growth and possibility. Finding humor in difficult situations can also reduce stress and offer a new perspective.

Try to see setbacks as temporary challenges rather than catastrophic events, and talk to someone you trust for new insights.

Practicing daily gratitude by noting a few things you're thankful for can significantly boost positivity.

Lastly, take moments to pause and breathe throughout the day, expressing gratitude to foster relaxation and a positive mindset. These shifts can gradually strengthen healthier mental habits and promote greater well-being.

_{ENLIGHTENMENT}

Short Squeez Picks

• 7 ways to be an unforgettable panelist for corporate events 

• How to create a quality life while working a 9-to-5

• The art of being single

• What the best leadership teams do right

• 5 keys to fostering a mindset of accountability

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Memes of the Day