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📈 Block's Bitcoin Banking Bonanza
Tesla Axes Dojo AI Team, Trade Desk Shares Tank Hard, Expedia Jumps on Beat, Pinterest Plunges After Miss, Toyota Warns Tariff Profit Hit
Evelio Silvera
August 08, 2025
Good morning.
⚡ The Fast Five → Tesla Axes Dojo AI Team, Trade Desk Shares Tank Hard, Expedia Jumps on Beat, Pinterest Plunges After Miss, Toyota Warns Tariff Profit Hit
🔎 Market Trends → Large trade seen behind US Treasury yield spike that fueled speculation; US Futures Rise as Trump Unveils 100% Chip Tariff
🚨 Thanks to some great subscriber feedback we will be sending your Bull Street Daily Briefing at 6am EST starting next week.
And now…
⏱️ Your 5-minute briefing for Friday, August 8, 2025:
MARKET BRIEF
Before the Open
As of market close 08/07/2025.
Pre-Market
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Fear & Greed
Markets in Review
Futures Edge Higher as Tariff Jitters Give Way to Selective Optimism
The Dow Jones slipped 224 points (-0.5%) Thursday, its second loss in three days, while the S&P 500 edged down 0.08% and the Nasdaq Composite added 0.4%. Futures ticked higher late evening, with all three major contracts up 0.2%.
The Big Picture:
Investors absorbed another volley of Trump’s “reciprocal” tariffs, which took effect at midnight—41% on Syria, 40% on Laos and Myanmar—but the market’s focus stayed on U.S.-based semiconductor production, which remains exempt from the president’s 100% chip tariff.
That exemption fueled a morning rally, as traders bet that domestic manufacturing names could be policy-backed winners in the quarters ahead.
Adding to the macro mix, Trump tapped Stephen Miran, current CEA chair, for a Federal Reserve Board seat—another signal the administration is aligning monetary policy minds with its growth-focused trade strategy.
Market Movers:
Expedia Group (EXPE) soared +16% after-hours after crushing Q2 earnings and revenue estimates—travel demand shows no sign of slowing.
Block (SQ) jumped nearly +6% post-close after hiking full-year gross profit guidance to $10.17B, a bullish sign for fintech adoption.
Sweetgreen (SG) plunged -25% after cutting its full-year outlook, a reminder that consumer discretionary still faces margin pressure.
What They’re Saying:
“There’s less turbulence with tariffs, but there’s still plenty of questions… It’s still the most important thing that just has to be worked out.” — Thomas Martin, Globalt Investments
WHAT WE’RE WATCHING
Events
There are no events scheduled for today.
Earnings Reports
Today: Under Armour, Wendy’s, fuboTV
Monday: Rumble, Barrick Gold, Monday.com, U.S. Cellular, Archer Aviation
MARKET BRIEF
Leading News
Block's Bitcoin Bet and Banking Blitz Signal Fresh Growth Momentum
Photo Credit: Clay Banks
Why it matters:
Block (XYZ) isn't just processing payments anymore—it's building the financial infrastructure for a generation that treats bitcoin like cash and expects banking to be as seamless as sending a text message.
Zoom Out:
The company's 14% gross profit growth acceleration from Q1's anemic 9% suggests something clicked in the second quarter. When a fintech can simultaneously grow merchant volumes 10% while expanding consumer banking to 8 million active users, you're witnessing the rare dual-engine growth that Wall Street adores.
Block's recent S&P 500 inclusion wasn't just ceremonial—it signals institutional recognition of a company that's quietly becoming the Swiss Army knife of financial services. The raised full-year guidance to $10.17 billion in gross profit (up from $9.96 billion) tells investors management sees this momentum continuing.
What's particularly intriguing is how Block is threading the needle between growth and risk. Short-term lending originations surged 95% to $18 billion annualized, yet margins held steady—suggesting their AI-powered underwriting is scaling intelligently.
Key Insights:
Bitcoin integration accelerating: Square merchants will soon accept bitcoin payments settling instantly in crypto or fiat—potentially unlocking a massive new revenue stream as crypto mainstreaming accelerates
AI-powered product velocity: Block's internal AI agent "goose" is helping developers ship products faster, while Square AI gives merchants conversational insights—both competitive moats in a crowded fintech space
Mid-market momentum: Sellers processing over $500K annually now represent 44% of Square's volume, growing 17% year-over-year as Block successfully moves upmarket
Market Pulse:
"We believe that we're returning to taking share again across the Square business," CFO Amrita Ahuja told analysts—a pointed reference to rival Fiserv's struggling Clover platform.
Bull’s Take:
Block's transformation from payment processor to comprehensive financial ecosystem is accelerating at precisely the right moment, as both consumers and businesses demand integrated solutions. The bitcoin integration alone could unlock billions in new transaction volume as crypto becomes everyday money.
Headlines
Tesla shuts down Dojo supercomputer team, reassigns workers amid strategic AI shift (link)
The Trade Desk shares plunge after posting Q2 revenues of $694 million (link)
Expedia Stock Jumps As Travel Company Beats Q2 Estimates, Raises Guidance (link)
Pinterest stock falls 10% after earnings miss (link)
Toyota, world’s biggest carmaker, warns of unprecedented $9.5 billion profit hit from tariffs (link)
CRYPTO
Fear & Greed
Headlines
*Hat-tip to GamblingMemez
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