Good Morning! Jane Street’s 2,600 employees helped double the firm’s trading revenues to over $20 billion in 2024, with its trading volume accounting for more than 10% of U.S. equity market activity.

Harvard is weighing a $1 billion sale of private equity holdings, while Google jumped 5% after crushing earnings. Goldman Sachs sees further downside for the dollar, and Bridgewater is sounding the alarm on a potential recession.

Plus: Adam Neumann’s startup Flow doubled its valuation and is eyeing an IPO, and how to motivate yourself during a slump at work.

Zillow’s founders are back, this time unlocking luxury vacation homes across the globe. Here’s your chance to invest in a new model of luxury living. Learn more about their raise.

SQUEEZ OF THE DAY

Tariffs Coming For Botox

Botox might be getting hit with more than just needles, tariffs are coming for your favorite wrinkle-fighter. AbbVie, which acquired Botox maker Allergan for $63 billion in 2020, produces a large chunk of its Botox supply in Ireland.

That’s great for taxes, but not so great if pharma tariffs kick in.

While the Trump administration’s original tariff policy excluded pharmaceuticals, the Commerce Department has since launched a probe into pharma imports, a common precursor to new tariffs.

That has analysts worried AbbVie could be more exposed than its peers, especially since companies like Pfizer and J&J have been building billion-dollar factories in the U.S. to get ahead of potential trade fallout.

Botox makes up 8% of AbbVie’s $56.3 billion in 2024 revenue. But it’s already showing signs of strain. U.S. sales of cosmetic Botox dropped 5% last quarter, and inflation is still putting pressure on consumer demand.

To make matters worse, AbbVie’s recent changes to its Botox loyalty program frustrated some providers, leading to a loss in market share. The company has since had to offer discounts to try and win back business.

Takeaway: Between tariffs, inflation, and loyalty drama, Botox might need a little filler of its own. AbbVie’s strategy has looked smooth on the surface, but cracks may begin to show, unless it finally joins the U.S. factory facelift movement.

HEADLINES

Top Reads

• Jane Street took 10% of US equity market in 2024 (GT)

• Harvard University exploring $1 billion of private equity stakes sale (BB)

• Google jumps on earnings beat, dividend hike, $70 billion buyback (YF)

• Private equity firms splurging on pro sports (BB)

• Bridgewater hedge fund warns Trump policies could induce a recession (CNBC)

• Next deal for top tech banker is to drive more investments to the U.S. (WSJ)

• The world reckons with a risky dollar (Axios)

• Neumann’s Flow more than doubles valuation, eyes eventual IPO (BB)

• World’s largest sovereign wealth fund reports $40B loss in Q1 (CNBC)

• Private equity firm expands investments into oil and gas energy for investors (Fox)

• China stands firm in trade war: There are no talks, U.S. should move first (Axios)

• Dollar has further to fall, says Goldman Sachs chief economist (YF)

• Harvey Schwartz wants to supercharge a firm that’s fallen under pressure (BB)

• Tony Pritzker sets up new firm to back private equity funds (WSJ)

PRESENTED BY PACASO

Disrupting the $1.3T Vacation Home Market

When the team that co-founded Zillow and grew it into a $16b real estate leader starts a new company, investors notice. That's why top firms like SoftBank invested in Pacaso.

Pacaso is transforming the $1.3T vacation home market through a sleek co-ownership model, making second homes more accessible than ever. 

They’ve already generated $100M+ in gross profits and helped over 1,500 homeowners unlock luxury living.

Now, the company is focused on international expansion – achieving record-breaking sales in Paris, securing 7 homes in Cabo, and recently acquiring their most valuable European property yet in London.

The best part? You can join them as an investor for just $2.80/share right now. Grow with Pacaso as an investor today.*

CAPITAL PULSE

Markets Rundown

Market Update

• Stocks surged again: S&P 500 up over 1.5% for the third straight day, with a weekly gain of 3%, led by tech and communication services; consumer staples and utilities trailed.

• SPY closed at 548.37, up from 536.7 Wednesday, reflecting a 10% rally since April 8, though further gains may hinge on concrete trade deals.

• Asian markets mixed; European markets rose modestly after strong German business sentiment data.

• Durable goods orders beat expectations in March, driven by non-defense aircraft; initial jobless claims steady at 222,000, signaling a robust labor market.

• Bond yields fell; 10-year Treasury yield at 4.3%.

• Trump’s assurance on Fed Chair Powell’s term through 2026 eased independence fears; potential U.S.-China tariff reductions added optimism, but markets need solid trade progress to sustain momentum.

• S&P 500 Q1 earnings growth on track for 7%; economic growth slowing but not recessionary, per recent PMI data.

• Investors should stay diversified and long-term focused amid trade negotiation volatility.

Reported Earnings

• Alphabet (GOOGL): Beat expectations with strong ad revenue growth; stock surged after hours.

• Intel (INTC): Beat expectations on earnings but faced revenue challenges due to supply chain issues; stock reaction was mixed.

• T-Mobile (TMUS): Exceeded subscriber growth forecasts; stock rose modestly post-earnings.

Upcoming Earnings

• AbbVie (ABBV): Investors watching for drug sales performance and pipeline updates.

• Schlumberger (SLB): Focus on energy sector trends amid fluctuating oil prices.

• HCA Healthcare (HCA): Expected to reflect hospital performance and patient volume trends.

Movers & Shakers

• (+) Nvidia ($NVDA) +4% after executives say they see strong demand for data centers.

• (–) IBM ($IBM) -7% because of a loss of DOGE federal contracts; slowdown in mainframe business.

• (–) Fiserv ($FI) -19% after the financial intelligence company missed on revenue.

Private Dealmaking

• UPS acquired Andlauer Healthcare for $1.6 billion

• Electra, a green iron startup, raised $186 million

• Granite Bio, an immunology startup, raised $100 million

• Noxtua, an AI legal platform, raised $92 million

• Instrumental, a grant solution platform, raised $55 million

• Alpaca, a stock trading API developer, raised $52 million

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

BOOK OF THE DAY

A Story is a Deal

Using the latest findings from social psychology, evolutionary psychology, organizational psychology and neuroscience, A Story is a Deal argues that we won't unlock the true power of story if we treat it merely as something we read on a page, see on a screen or hear in a speech.

Storr shows how successful stories shape identities, which changes beliefs, drives action and achieves extraordinary results.

With examples ranging from Aztec rituals to Apple's legendary advertising successes (and long-forgotten fails), A Story is a Deal lays out a revolutionary new method for creating the most persuasive messaging: by harnessing the power of our storytelling brains.

“A fascinating insight into the human mind.”

DAILY VISUAL

Businesses are Paralyzed

PRESENTED BY DEEL

The Multi-Country Payroll Guide That’s Setting the Standard

Managing payroll across borders isn’t just about sending paychecks on time — it’s a strategic function tied to compliance, scalability, and operational resilience. So why are so many global teams still flying blind?

This Gartner® Market Guide (courtesy of Deel) maps out what today’s leaders need to know about multi-country payroll providers — who the major players are, key selection criteria, and how to avoid common implementation pitfalls.

Here’s what you’ll learn:

• Analyst-backed insights: See how providers stack up in 2024

• A risk-proof ops strategy: Understand the compliance implications of fragmented payroll 

• How to scale smarter: Discover tech that grows with your team, wherever they go

If you’re building a global team, this isn’t just a read — it’s required homework.

DAILY ACUMEN

Candy Valentino

Candy Valentino, born to teenage parents in a Pennsylvania trailer park, turned her gritty upbringing into a business empire.

Raised in her dad’s small auto shop, she learned entrepreneurship early, answering phones and handling clients amidst the grease and grime.

At 19, inspired by a spa visit and a book that challenged the need for college, she snagged an SBA loan—thanks to a panel of women who saw her potential—and launched her own spa in her small town.

It thrived, kicking off a stellar career where she started and sold two companies, built a real estate portfolio, founded a nonprofit, and became a bestselling author and podcast host.

Her secret?

Relentless hard work and a knack for financial acumen, diving into the numbers to drive revenue and profitability.

As a woman in business, she faced assumptions but turned being underestimated into her edge, leading with kindness and high expectations to inspire greatness in her teams.

She urges women to command their space with confidence, especially in male-dominated fields like finance.

ENLIGHTENMENT

Short Squeez Picks

• Upgrade your morning investing insights with Opening Bell Daily

• What to wear at a job interview in any industry

• 5 ways prioritizing happiness boosts productivity

• How to motivate yourself during a slump at work

• How to reparent your inner child

• In the age of AI emotional intelligence can’t be replaced

MEME-A-PALOOZA

Memes of the Day

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