Core Viewpoint - Capital One Financial Corporation has agreed to acquire Brex for $5.15 billion, combining cash and stock, with the deal expected to close by mid-year pending regulatory approvals [1][2]. Group 1: Acquisition Details - The acquisition is valued at $5.15 billion, significantly lower than Brex's peak valuation of $12.3 billion during its 2022 funding round, reflecting market pressures on fintech valuations [4]. - The deal will maintain Brex's operational independence, with co-founder and CEO Pedro Franceschi continuing to lead the company under Capital One's umbrella [5]. - Capital One views this acquisition as a strategic fit to enhance its business payments segment rather than a cost-cutting measure [6]. Group 2: Strategic Implications - The partnership aims to leverage Brex's AI-driven platform for corporate cards and expense management alongside Capital One's substantial resources, including $900 billion in annual card volume [2]. - This acquisition is expected to drive innovation and expand services to underserved businesses across the U.S. [2][9]. - The deal may signal a trend of consolidations in the fintech sector as traditional banks seek to integrate innovative technologies amid economic changes [6]. Group 3: Financial Insights - Brex has raised $1.7 billion in funding since its inception in 2017, supporting its growth from a niche startup to a service provider for tens of thousands of clients [3]. - Tax strategist Nick King highlighted potential tax benefits for early Brex stakeholders, including gains exceeding $100 million tax-free through Qualified Small Business Stock (QSBS) provisions [7]. - Strategies such as "trust stacking" and QSBS rollovers can help maximize tax outcomes for investors and founders involved in the acquisition [8].

Core Insights - The acquisition represents the largest bank fintech deal in history, highlighting a unique synergy between Brex and Capital One that is expected to create significant value [2][3] Valuation and Market Context - Brex's previous valuation in 2022 was $12 billion, but the current acquisition is at a steep discount of $5.15 billion, which is a 57.1% decrease [1] - The acquisition is priced at a 13 times multiple, which is a premium compared to public market comps that are trading between 8 to 11 times [4] Growth Opportunities - Capital One sees a massive growth opportunity in building a leading financial platform for businesses in the U.S., combining Brex's technology with Capital One's scale and distribution [5][9] - The collaboration is expected to enhance product development and accelerate market entry, creating a more robust offering for businesses [3][11] Strategic Decisions - The decision to pursue this acquisition rather than remaining private is based on the belief that aligning with public market realities is crucial for long-term success [6][8] - Brex has transitioned to a cash flow positive company and has made strategic decisions to accelerate growth, which positions it well for this partnership [7] Resource Synergy - Capital One's substantial marketing budget of $6 billion, compared to Brex's less than 1%, will significantly enhance distribution capabilities [10] - The combined R&D budgets of both companies will allow for accelerated product development and a more ambitious roadmap, benefiting customers with improved offerings [11]

It's been a tricky year uh in some respects for financials, hasn't it. Yeah. You know, they they kick off earnings season, the stocks look pretty good going into that and now they're pacing for the third negative week of the past four.Uh you can maybe hang on some headlines that have come out obviously some of the social media posts and some of the planned executive orders or the like that has weighed on on names here. Some of the credit card ones for obvious reasons. Bin, speaking of your new buy is Capita ...

Core Viewpoint - The acquisition of Brex by Capital One signifies a strategic move to enhance corporate card offerings while integrating advanced software and automation technologies into financial operations [1][2] Group 1: Acquisition Details - The acquisition of Brex, a corporate card and expense management company based in San Francisco, is expected to close in mid-2026, subject to regulatory approval and customary conditions [1] - Brex CEO and cofounder Pedro Franceschi will continue to lead the company under Capital One [1] Group 2: Brex's Business Model - Brex has established its reputation by providing corporate cards to startups without requiring personal guarantees, along with tools that simplify expense tracking and approvals [3] - The company has evolved into a comprehensive platform that integrates payments, spend management, and banking services, utilized by over 25,000 companies, including notable clients like DoorDash, Robinhood, Zoom, and Plaid [3] Group 3: Industry Implications - The deal represents more than just an expansion into corporate cards; it highlights the growing importance of software, automation, and artificial intelligence in transforming financial operations within companies [2]

Key Takeaways COF shares fell in after-hour trading as Q4 adjusted EPS of $3.86 missed estimates despite strong y/y growth.Capital One's performance was dampened by higher expenses and credit provisions, partly offset by NII gains.COF agreed to buy fintech Brex for $5.15B in a stock-and-cash deal, targeting a mid-2026 close.Shares of Capital One (COF) lost 2.9% in after-hour trading following the announcement of worse-than-expected fourth-quarter 2025 results. Adjusted earnings of $3.86 per share missed the ...

Group 1 - Capital One Financial Corp's shares have decreased by 4.2%, trading at $225.61, following a fourth-quarter profit miss and the announcement of acquiring startup Brex for $5.15 billion [1] - Despite the recent decline, analysts remain optimistic, with 18 out of 22 maintaining a "buy" or better rating, and a 12-month consensus target price of $278.91, indicating a 24.2% upside potential from current levels [2] - The stock has experienced a 23.5% gain over the past nine months, although it has retreated from its all-time high of $259.63, breaking below the 100-day moving average [3] Group 2 - Options trading volume for Capital One is significantly high, at three times the typical amount, with 12,000 calls and 8,023 puts traded, indicating increased market activity [4] - The most active options contract is the weekly 1/23 232.50-strike call, with new positions being opened, suggesting a strategic move by investors [4] - The current Schaeffer's Volatility Index (SVI) for Capital One is at 33%, which is higher than 84% of readings from the past year, indicating that options are affordably priced [4]

Market Overview - The U.S. stock market opened with mixed sentiment as investors reacted to corporate earnings and easing geopolitical tensions [1] - Major indices showed modest movements, with a notable rotation from mega-cap technology stocks towards small-cap companies [1] Major Market Indexes - The S&P 500 rose 0.05% to 6916 points, recovering from earlier losses, but is down 0.4% for the week [2] - The Dow Jones Industrial Average (DJIA) closed at 49,384.01 after a 0.6% increase, nearing the psychological 50,000 mark [3] - The Nasdaq Composite, after a 0.9% gain to close at 23,436.02, experienced a subdued open, indicating a shift in investor focus [4] Small-Cap Performance - Small-cap ETFs have led the market rally with year-to-date gains exceeding 7%, contrasting with the flat performance of mega-cap tech ETFs [4] - The Invesco S&P 500 Equal Weight ETF (RSP) climbed 3.3%, attracting significant fresh capital, signaling broader market recovery interest [4] Upcoming Earnings - The fourth-quarter 2025 earnings season is underway, with S&P 500 companies expected to report an earnings growth of 8.8% year-over-year, potentially reaching around 12% [6] - Key companies reporting today include Schlumberger Limited, Ericsson, and Capital One Financial, among others [6][7] Economic Indicators - Today's focus includes preliminary PMI data and final January Consumer Sentiment figures, with further insights expected next week [8] - The Personal Consumption Expenditures (PCE) index is projected to show a 0.2% month-over-month increase, with year-over-year readings at 2.8% [9] Corporate Developments - Intel shares fell 13% in premarket trading after a weaker-than-expected first-quarter outlook, despite surpassing fourth-quarter earnings estimates [14] - TikTok finalized a deal to avert a U.S. ban, involving a joint venture with Oracle and retaining a 19.9% stake for ByteDance [14] - Capital One Financial's shares declined after announcing the acquisition of fintech startup Brex for $5.15 billion while missing fourth-quarter earnings estimates [14] - Amazon is reportedly planning layoffs across various divisions, although its shares remained relatively unchanged [14] - Microsoft is noted for its sluggish performance, contributing to the drag on traditional market-cap-weighted indices, while Nvidia remains a focus for investors [14]

Market Overview - US stock index futures are all down, with Dow futures down 0.23%, S&P 500 futures down 0.11%, and Nasdaq futures down 0.18% [1] - European indices show mixed performance, with Germany's DAX down 0.04%, UK's FTSE 100 up 0.04%, France's CAC40 down 0.40%, and Europe's Stoxx 50 down 0.41% [2][3] Commodity Prices - WTI crude oil increased by 1.89% to $60.48 per barrel, while Brent crude oil rose by 1.81% to $65.22 per barrel [3][4] Investment Trends - A new wave of "Sell America" is emerging, with global funds flocking to Asian tech stocks and gold, driven by tensions between the US and various sovereign governments, leading to significant selling pressure on dollar assets [5] - Emerging markets, particularly in Asia, are attracting global capital, with a focus on South Korea, China, Taiwan, and India [5] Company News - Schlumberger (SLB.US) reported Q4 net income exceeding expectations, driven by strong North American market demand, with revenue up 5% year-over-year to $9.75 billion [8] - Ericsson (ERIC.US) nearly doubled its Q4 profit, exceeding expectations, and announced a historic SEK 15 billion stock buyback plan [9] - Intel (INTC.US) reported Q4 revenue down 4.1% year-over-year to $13.7 billion, with guidance for Q1 2026 lower than analyst expectations [10] - Alcoa (AA.US) reported Q4 revenue of $3.4 billion, exceeding market consensus, driven by rising aluminum prices [10] - First Capital Credit (COF.US) reported Q4 revenue of $15.583 billion, a 53% year-over-year increase, but adjusted EPS fell short of analyst expectations [11] - Amazon (AMZN.US) is preparing to lay off thousands of employees, following a previous announcement of 14,000 job cuts [13] - Tesla (TSLA.US) has launched a fully autonomous taxi service in Austin, marking a significant milestone in its operations [14]

Let's get Kramer's mad dash as we count down to the bell. >> I feel very counterintuitive today. We talked about Phil Leau and GE Larry Culp.That stock was down. We talked about Lip Boo and why Intel is down and that Intel is good. I want to address Capital One.This was an amazing conference call. They bought this terrific company Brex. I didn't nearly even know how much business that Brex does.That's for corporate. They want to go directly against American Express. Yes.Did they disappoint in the quarter. D ...

Weather Impact on Retail - A winter storm is expected to affect a significant portion of the U.S., potentially impacting consumer behavior and retail sales [2][3] - Costco (COST) is anticipated to benefit from increased sales as consumers engage in pantry-loading ahead of the storm, similar to past events [4] - Anecdotal evidence shows crowded Costco stores in states like Texas and Florida, with shares up 13% year-to-date [5] Restaurant and Retail Sector Challenges - Dine-in restaurants and discretionary retail are likely to face revenue headwinds due to consumers staying indoors during the storm [5][6] - Several restaurant companies have previously reported traffic declines during severe winter weather [6] Capital One Acquisition - Capital One (COF) has announced the acquisition of fintech company Brex for $5.15 billion, with the deal structured as 50% cash and 50% stock [7][8] - This acquisition aims to enhance Capital One's capabilities in serving corporate clients through Brex's technology for corporate cards and expense management [8] Intel Earnings Report - Intel (INTC) reported stronger-than-expected Q4 results but provided a Q1 outlook that fell below analyst expectations, leading to a 12% drop in premarket shares [9][10] - The company expects Q1 revenue between $11.7 billion and $12.7 billion, with adjusted earnings per share projected to break even [10]