“Investors are learning to reward disciplined capital allocation over growth at any cost.” – 03:17
Evelio Silvera, Co-Founder of Bull Street Media, joins Remy Blaire to discuss the latest developments in the stock market, focusing on major players such as Apple, Google, and Macy’s.
Evelio explains that Google has successfully navigated the antitrust challenges with only modest restrictions, which the market has responded to positively, resulting in a 6% surge in after-hours trading. He likens the situation to Microsoft’s 2001 antitrust settlement, suggesting that the ruling alleviates regulatory concerns while preserving Google’s core business model, including its valuable data harvesting capabilities through Chrome.
The conversation then shifts to Macy’s, which is showing signs of recovery after years of decline. Remy asks Evelio if this marks a new chapter for the iconic department store. Evelio describes Macy’s recent sales growth as a “bold new chapter,” emphasizing their strategic decision to close underperforming stores while simultaneously increasing sales. He refers to this approach as the “art of elegant decline,” suggesting that fewer stores can lead to higher sales and improved margins. Evelio draws parallels to Starbucks’ past store closure strategy, indicating that Macy’s could be on a similar path to long-term success.
Finally, Remy and Evelio discuss American Eagle’s recent marketing strategy, which has generated both controversy and impressive earnings results. Evelio highlights how the brand’s ability to create conversation—regardless of whether it is positive or negative—can drive retail sales in today’s attention-driven economy. He notes that American Eagle’s stock surged 20% after hours, showcasing the effectiveness of their authentic brand engagement.