Zaid Admani
๐ค SpeakerAppearances Over Time
Podcast Appearances
I don't know.
I guess we'll see if the platform changes over time.
Let's talk about some stocks making moves today.
Natural gas prices and companies are jumping as a major winter storm is expected to impact a big part of the US this weekend, including here in Texas.
the way is expected to get 14 inches of snow according to our new york city resident and weather correspondent producer mike so yeah because of this upcoming freeze natural gas prices are up 75 over the last five days because natural gas is the dominant heating source in the u.s accounting for about 47 of residential heating demand i'm just hoping that the power grid holds up here in texas over the weekend we've had some issues in the past with some previous winter storms
Now, on the flip side, Capital One shares are falling after the credit card giant reported mixed earnings and announced that they're buying the fintech startup Brex.
Capital One is acquiring Brex for $5.15 billion in a mix of cash and stock as it looks to push
deeper into the business payments and expense management space.
Now, Brex is known for combining corporate cards with software that helps companies track spending in real time.
Now, what's interesting, though, is that Brex was once valued at 12.5 billion dollars at its peak.
So this deal represents a pretty steep markdown.
Meanwhile, you have Brex's main rival, Ramp, which was founded two years after Brex.
They're now valued at around 32 billion dollars.
Now, beyond the acquisition, Capital One's earnings were pretty mixed.
Their revenues beat expectations, but their profits came in lighter than expected.
The other issue for Capital One is the political attention on credit card rates right now.
See, Capital One's net interest income was up 54% in Q4 thanks to rising credit card interest rates, but President Trump is now pushing for a 10% cap on rates.
If this cap actually becomes policy, it would hit Capital One especially hard given how dependent its business is on credit card lending.
So investors aren't loving the combo of the acquisition along with the mixed earnings and the rising regulatory risk.
And that's why Capital One stock is down more than 3% in pre-market trading.