sport football: 📊 Magnificent 7 Meltdown

It's Sunday.

Feeling pressure to keep up with AI? You're not alone.

Senior executives are thinking about it too.

The CEOs of Coca-Cola and Walmart both recently stepped down, citing the need for leadership with a deeper understanding of AI.

They believe the next phase of their companies will be shaped by how effectively AI is leveraged.

Many companies are recognizing this early.

Despite the uncertainty around leadership changes, faster adaptation may matter more in a rapidly changing environment.

Key Data Bites Over The Last Week:

Morningstar updated their list of the 9 most attractive AI stocks.
Macy's says users of its new AI chatbot spend 400% more online.
OnlyFans billionaire owner died of cancer at 43.
Meta is targeting a $9T valuation with new executive incentive program.
Average Wall Street Bonus jumped 6% to $246,900 in 2025.
Elon Musk's new Terafab project could cost $5T.
OpenAI is guaranteeing PE investors 17.5% minimum returns.
OpenAI plans to double headcount to 8,000 by year end.
Robinhood announced a $1.5B share buyback.
NASA will spend $20B over next 7 years to build moon base.
MercadoLibre will invest $11B in Brazil this year.
Federal Reserve posted an $18.7B loss in 2025.
Meta will fund 7 new natural gas plants to power its biggest data center.
Netflix is raising U.S. prices for 2nd time in less than 2 years.
U.S. will launch a $1T+ consortium for energy, minerals, and chips.

In today's newsletter:

🛩️ Most Valuable U.S. Airlines
🇯🇵 Warren Buffett Loves Japan
📉 Microsoft's Stock Plunge
🩸 Magnificent 7 Meltdown
💰 GameStop's Cash Pile

Let's jump right in.

📣 Together with Fiscal AI

There are thousands of investing platforms.

My absolute favorite? Fiscal AI.

This single terminal will save you hundreds of hours. Here's why:

Visualize fundamental data and KPIs
Screen for quality stocks
Track insider and institutional ownership
Browse earnings call transcripts and slides
And so much more.

You get a ton of access with a free account, and Pro is completely free to try for 14 days.

Signup For Free

Airlines are getting squeezed.

The war in Iran has pushed oil prices higher, driving a sharp increase in jet fuel costs across the industry.

The impact is already showing up.

American Airlines expects fuel to add about $400M to first quarter expenses.
Delta has also taken a $400M hit so far.

Meanwhile, United is cutting unprofitable routes as it prepares for a period of elevated oil prices.

CEO Scott Kirby warned that if oil stays above $100 through 2027, fuel costs could exceed more than twice the company's peak annual profit.

All that being said, demand remains strong.

Just last week, Delta, American, and JetBlue all raised first quarter revenue guidance.

Berkshire Hathaway keeps going back to Japan.

Six years ago, Warren Buffett began building positions in the country's largest trading houses, with a plan to hold them for decades.
That commitment has already grown to more than $40B invested.

And it continues to expand.

Berkshire, now led by Greg Abel, recently announced plans to invest $1.8B for a 2.5% stake in Tokio Marine, Japan's largest property and casualty insurer.

The deal will run through the company's reinsurance arm and opens the door to deeper collaboration and potential joint acquisitions.
The partnership will last for a decade, demonstrating Berkshire's commitment to the Japanese insurance market.

Microsoft is entering its deepest drawdown in years.

Shares are down about 31%, approaching the 36% decline seen during the 2022 tech selloff.

But this time, the concern revolves around AI, not interest rates.

Microsoft is pouring billions into infrastructure, with some estimates pointing to as much as $150B in spending this year.
At the same time, cloud growth has started to decelerate in recent quarters, despite the increased investment.

Additionally, its close ties to OpenAI, which accounts for a nearly half of remaining performance obligations, is increasing concerns.

Last but not least, there are also growing questions around AI monetization.

Competing AI tools, such as those from Anthropic, are increasingly viewed as superior, even within Microsoft's own ecosystem.

The market continues to ask whether the returns will match the scale of the investment.

The Magnificent 7 is selling off.

While Microsoft is leading the drawdown, it's definitely not the only member of the group taking a beating.
Most of the group has now entered bear market territory.

Meta is among the hardest hit, with shares down about 31% from recent highs.

Recent jury verdicts found Meta liable for designing addictive features and failing to protect minors.
The company was ordered to pay $4.2M in one case and $375M in another tied to user safety.

Investors now fear these rulings could open the door to a tsunami of lawsuits and challenge the engagement driven model behind its core apps.

GameStop is building a war chest.

The company's cash position has nearly doubled over the past year, reaching $9B in cash and equivalents.
For context, the company has a $10B market cap.
Even after accounting for debt, it holds roughly $5B in net cash.

Some investors, including Michael Burry, believe the company is now positioned for a major acquisition that could help reinvigorate the business.

Nonetheless, the core business remains under pressure.

Sales declined 14% on weaker consumer demand in the most recent quarter.
CEO Ryan Cohen continues to cut costs and streamline operations to improve profitability.

🏛️ Tech Council^↗ – Donald Trump appointed Mark Zuckerberg, Larry Ellison, and Jensen Huang to a new tech panel that will advise on AI policy.

💾 Memory Breakthrough^↗ – Google introduced TurboQuant, a new AI algorithm designed to reduce memory usage without impacting performance.

✂️ Cost Cutting^↗ – OpenAI shut down its short-form video app Sora as it cuts costs.

💸 Elliott Enters^↗ – Activist Elliott Management built a significant stake in chip-design software maker Synopsys.

🥊 Workplace War^↗ – Apple unveiled Apple Business to directly challenge Microsoft 365 and Google Workspace.

🔐 Cyber Scare^↗ – Cybersecurity stocks fell after reports that Anthropic is testing a more advanced AI model with security risks.

Notable Companies Reporting Earnings Week of March 29, 2026:

Major Trades Published 3/23 - 3/27. Trades may be those of family members. [Source: Capitol Trades]

Buys

Tim Moore (R)
- Company: LGI Homes ($LGIH)
  - Amount Purchased: $95K - $250K
- Company: Harley-Davidson ($HOG)
  - Amount Purchased: $15K - $50K
- Company: Cracker Barrel Old Country Store ($CBRL)
  - Amount Purchased: $15K - $50K
Chuck Fleischmann (R)
- Company: Unitedhealth Group ($UNH)
  - Amount Purchased: $15K - $50K
- Company: Accenture ($ACN)
  - Amount Purchased: $15K - $50K

Sells

Tim Moore (R)
- Company: Krispy Kreme ($DNUT)
  - Amount Sold: $15K - $50K

Major Trades Published 3/23 - 3/27

Buys

Palo Alto Networks ($PANW)
- Insider: Nikesh Arora (CEO)
  - # of Shares Purchased: 68,085
  - $ Amount: $9,999,977
  - SEC Forms: [1]

Sells

Broadcom ($AVGO)
- Insider: Henry Samueli (Director)
  - # of Shares Sold: 781,967
  - $ Amount: $250,000,302
  - SEC Forms: [1]
Crowdstrike ($CRWD)
- Insider: George Kurtz (CEO)
  - # of Shares Sold: 31,915
  - $ Amount: $13,145,098
  - SEC Forms: [1]

Disclaimer: The publisher does not guarantee the accuracy or completeness of the information provided in this page. All statements and expressions herein are the sole opinion of the author, paid advertiser, or partner and do not reflect the official policy or position of any other agency, organization, employer or company.

Carbon Finance is a publisher of financial information, not an investment or financial advisor. We do not provide personalized or individualized investment advice or information that is tailored to the needs of any particular recipient.

The information contained on this website/newsletter has been crafted with the assistance of an AI language model to enhance the content of this newsletter. We have made efforts to ensure the quality and reliability of the information presented, but we cannot guarantee its absolute accuracy. Therefore, readers are advised to exercise their own judgment and seek additional sources if necessary.

THE INFORMATION CONTAINED ON THIS WEBSITE/NEWSLETTER IS NOT AND SHOULD NOT BE CONSTRUED AS INVESTMENT ADVICE, AND DOES NOT PURPORT TO BE AND DOES NOT EXPRESS ANY OPINION AS TO THE PRICE AT WHICH THE SECURITIES OF ANY COMPANY MAY TRADE AT ANY TIME. THE INFORMATION AND OPINIONS PROVIDED HEREIN SHOULD NOT BE TAKEN AS SPECIFIC ADVICE ON THE MERITS OF ANY INVESTMENT DECISION. INVESTORS SHOULD MAKE THEIR OWN INVESTIGATION AND DECISIONS REGARDING THE PROSPECTS OF ANY COMPANY DISCUSSED HEREIN BASED ON SUCH INVESTORS' OWN REVIEW OF PUBLICLY AVAILABLE INFORMATION AND SHOULD NOT RELY ON THE INFORMATION CONTAINED HEREIN.

No statement or expression of opinion, or any other matter herein, directly or indirectly, is an offer or the solicitation of an offer to buy or sell the securities or financial instruments mentioned.

Any projections, market outlooks or estimates herein are forward looking statements and are inherently unreliable. They are based upon certain assumptions and should not be construed to be indicative of the actual events that will occur. Other events that were not taken into account may occur and may significantly affect the returns or performance of the securities discussed herein. The information provided herein is based on matters as they exist as of the date of preparation and not as of any future date, and the publisher undertakes no obligation to correct, update or revise the information in this document or to otherwise provide any additional material.

The publisher, its affiliates, and clients of the publisher or its affiliates may currently have long or short positions in the securities of the companies mentioned herein, or may have such a position in the future (and therefore may profit from fluctuations in the trading price of the securities). To the extent such persons do have such positions, there is no guarantee that such persons will maintain such positions.

Neither the publisher nor any of its affiliates accepts any liability whatsoever for any direct or consequential loss howsoever arising, directly or indirectly, from any use of the information contained herein.

Some of the links in this newsletter are affiliate links. This means that if you click on the link and purchase the item, we will receive an affiliate commission at no extra cost to you. All opinions remain our own.

By using the Site or any affiliated social media account, you are indicating your consent and agreement to this disclaimer. Unauthorized reproduction of this newsletter or its contents by photocopy, facsimile or any other means is illegal and punishable by law.