RJ Hamster
🦉 The Night Owl Newsletter for December 9th
Unsubscribe Elon’s Terrifying Warning Forces Trump To Take Action (From American Hartford Gold)Consumers Got Coal, But Santa Dropped Off Big Gains for These 2 RetailersWritten by Dan SchmidtSanta Claus might be coming to town, but that hasn’t stopped pouting and crying from seeping into consumer sentiment this holiday season. The University of Michigan’s Survey of Consumers continues to show that Americans aren’t feeling very optimistic about their finances or the job market. The K-shaped economy has been a hot topic in the market news cycle, and that’s earned the retail sector extra scrutiny.One area you’d expect to suffer in a K-shaped economy is the department store model, but that hasn’t been the case—at least for these two companies. Let’s examine why Dillards Inc. (NYSE: DDS) and Macy’s Inc. (NYSE: M) are experiencing outsized success in 2025, despite operating in very different ways.Dillards: A Department Store with a Clear IdentityDillards is the last of a dying breed: a traditional brick-and-mortar department store that isn’t getting its clock cleaned by e-commerce.How has the company managed to stave off the onslaught of online merchants? By leaning into its affluent customer base, maintaining tight inventory, and adopting strategies that aggressively reward shareholders.Dillard’s appeals to upper- and middle-income consumers, which not only benefits sales in the current economic environment but also helps the company maintain margins through effective inventory management.Unlike many of its department store peers, Dillard’s doesn’t chase sales and rarely runs promotions. Instead, it carefully matches inventory with demand projections, maintaining high margins and avoiding forced, unprofitable clearance sales.Dillard’s also has a few shareholder-friendly practices that keep investors’ spirits bright.First, unlike most department stores that lease their buildings, Dillard’s actually owns a significant portion of its real estate outright. The company’s real estate holdings make it a frequent buyout target, a factor that puts a floor under its share price.Second, Dillard’s makes share buybacks and dividends a key component of operations. Most retailers initiate buybacks only when cash flow is strong. Still, Dillard’s has built the practice into its long-term strategy, creating constant demand for its stock and preventing EPS from sinking during economic slowdowns.  Thanks to these strategies, Dillard’s has consistently beaten earnings expectations in each quarter so far this year, particularly in Q3 2025, when comparable sales (comps) increased 3% year-over-year (YOY), and gross margins rose to 45.3% from 44.5% in Q3 2024. Revenue and earnings per share (EPS) have also posted strong growth throughout the year, driving the stock’s year-to-date (YTD) increase by more than 55%.The stock also received a boost on the technical side recently when shares bounced firmly off the 50-day simple moving average (SMA) and triggered a new wave of upward momentum. DDS is pricey for a department store at 18x earnings, but investors (like Dillard’s customers) are willing to pay up for a quality company.Macy’s: “Bold New Chapter” Is Rewriting the NarrativeMacy’s has been a thorn in the side of retail sector investors for several years, as most department store models have faded into obscurity. And while the former mall anchor still has a winding road ahead, the early returns from its Bold New Chapter initiative appear promising.Drastic turnarounds often require a slash-and-burn approach from management, and Macy’s has adopted this strategy with its aggressive store rebranding and closure policy. The Reimagine 125 strategy is a key component of the Bold New Chapter initiative, which involves closing underperforming stores and revamping existing outlets.Macy’s announced plans to close 150 cash-draining locations and focus on rebranding 125 profitable stores to cut costs while increasing comp sales. The company rebranded 50 stores in 2024, with the remaining 75 stores set to undergo facelifts in 2025. Now that this rebrand is in full force, Macy’s earnings show it’s been a successful pivot.On Dec. 3, Macy’s reported its fiscal Q3 2026 earnings, which beat EPS and revenue projections for the fourth consecutive quarter. Comp sales grew 3.2% YOY, a number that was boosted by the Reimagine 125 locations (2.7% comp growth) and Bloomingdale’s (9.0% comp growth).Stores falling outside the Reimagine or Bloomingdale’s umbrellas reported weaker 2% comp sales. Bloomingdale’s comp sales growth was its highest in 13 quarters, highlighting the continued strength of the upper-income consumer. Additionally, the 20 basis point tariff hit to gross margins was less consequential than expected, and management raised guidance projections across the board, including boosts in total 2025 sales, comps, and adjusted EPS. Macy’s lean mean restructuring plan, buoyed by high-margin subsidiaries like Bloomingdale’s and Bluemercury, has been the catalyst for a 30% YTD stock gain. A 30% advance in 2025 would have stunned even the most optimistic executive this time last year, and the stock has fundamental and technical tailwinds in place to keep the rally going.The stock is trading above its 50-day and 200-day SMAs, and the Relative Strength Index (RSI) isn’t flashing any warning signs just yet. Macy’s demonstrates what investors want to see from a modern retailer: ruthless efficiency, high-end brand appeal, and effective tariff mitigation strategies.Additionally, a 3.5% dividend yield from a retailer trading at just 9.5x forward earnings is also a notable benefit. READ THIS STORY ONLINENEW LAW: Congress Approves Setup For Digital Dollar? (Ad)Trump Ally Says Congress Approved the Setup for a Digital Dollar 2.0But according to Rep. Marjorie Taylor Green, it’s a bill that contains “the entire setup, groundwork and infrastructure to move from cash to digital currency.” >>> CLICK HERE BEFORE IT BECOMES LAW.10X Gains? These 3 Robotics Stocks Could Explode by 2035Written by Bridget BennettAs robotics technology evolves from research to real-world use, investors are exploring where the next wave of automation may deliver meaningful returns. In a recent MarketBeat interview, engineering expert and FinTek Media creator Kuran highlighted three robotics stocks that reflect distinct areas of innovation: Symbotic (NASDAQ: SYM), Alphabet (NASDAQ: GOOGL), and Hyundai Motors (OTCMKTS: HYMLF).Symbotic: Delivering Real Revenue From Warehouse RoboticsSymbotic automates warehouse operations with robotics that handle inbound shipments, storage, picking and outbound logistics. The company builds end-to-end systems tailored to controlled environments—making automation more accessible to companies that lack the scale of Amazon (NASDAQ: AMZN).“This is probably the most useful in the short term because they’re actually making profit-creating robots for logistics companies,” Kuran said. He also emphasized the opportunity presented by Symbotic’s volatile stock movements: “The market doesn’t know what this stock should be worth… that can offer us an opportunity to buy the stock at a discount.”Symbotic’s strength lies not only in its physical systems but also in its integration of third-party technologies, including NVIDIA’s (NASDAQ: NVDA) Jetson Thor platform, positioning it to stay at the forefront of warehouse automation.Alphabet: Building the AI Operating System for RoboticsWhile not a robotics hardware company, Alphabet, Google’s parent company, is creating the AI infrastructure that will likely power the next generation of robotics applications. Through Gemini Robotics and DeepMind, Google is developing AI models that allow robots to reason, plan, and take action autonomously.“Google is now making it so that robots can solve problems they’ve never seen before,” said Kuran. “This alone could be a multi-trillion dollar business for Google in 10 to 20 years.”Alphabet’s robotics ambitions extend beyond software. Through its autonomous vehicle unit Waymo, the company is investing in robotic mobility—a sector estimated to be worth trillions in the long term. “There was a Forbes article recently that estimated that Waymo could be a trillion-dollar company all on its own,” Kuran noted.The long-term vision is clear: to become the Android of robotics. “Their bet is that all these companies will build this really cool hardware, and then they’ll come to Google to create the operating system for that hardware,” he explained.While it may not move Alphabet’s stock in the short term, robotics represents a massive future growth opportunity embedded within one of the world’s largest tech platforms.Hyundai: Industrial Robotics at Scale Through Boston DynamicsFor investors seeking exposure to industrial robotics, Hyundai Motors offers a unique path via its ownership of Boston Dynamics—one of the most advanced robotics hardware companies in the world.“Hyundai is a great way to invest in what’s happening in the robotics market in Asia while getting access to this American company, Boston Dynamics,” Kuran said.Asia accounted for 74% of global industrial robot installations last year. As Boston Dynamics transitions from R&D to commercialization, Hyundai plans to deploy 10,000 of its robots across its own production lines—potentially generating $750 million in revenue.While Hyundai’s core auto business faces near-term headwinds, including tariffs and slowing global demand, its robotics division is gaining strategic importance. Kuran added: “Ultimately, the market will recognize the value.”He also noted that Hyundai’s structure leaves open the possibility for a future spin-off: “My expectation if Boston Dynamics got big enough is that Hyundai would actually spin them off as their own company in the future.”Robotics Exposure Across 3 Investing TimeframesEach of these companies offers a distinct way to invest in robotics:Symbotic provides near-term logistics automation with real revenue and active deployments.Alphabet supports long-term robotics AI infrastructure with the potential to become a category-defining platform.Hyundai offers long-term exposure to industrial robotics through Boston Dynamics, with optionality in the Asian market.Kuran emphasized that understanding the technology—not just chasing headlines—is critical to identifying lasting value: “If we just follow the data… we can still do really well in the market. The main focus is understanding how technology is bringing value.”Among the three, Hyundai Motors stands out as a contrarian robotics investment—one that may not deliver immediate results, but could unlock significant upside as industrial automation scales globally and Boston Dynamics continues to commercialize its technology.As robotics adoption accelerates across logistics, AI systems and manufacturing, these companies represent strategic entry points into one of the most transformational trends of the next decade. READ THIS STORY ONLINEElon’s Terrifying Warning Forces Trump To Take Action (Ad)For the everyday American who’s worked hard to build their nest egg, Trump preserved a IRS loophole that allows you to protect your retirement savings before billions in American wealth are lost. Download Your Free 2026 Wealth Protection Guide and execute the simple steps to protect your future. GET THE FREE GUIDEAnheuser-Busch Buys BeatBox to Win Over Younger DrinkersWritten by Jeffrey Neal JohnsonAnheuser-Busch InBev (NYSE: BUD) is confronting a major shift in the alcohol industry. A new generation of consumers is increasingly choosing ready-to-drink (RTD) cocktails over traditional beers, fundamentally altering market dynamics. In a decisive move to capitalize on this trend, the beverage giant announced a deal to acquire an 85% majority stake in BeatBox Beverages for approximately $490 million.For investors, this transaction is a critical indicator of the company’s forward-looking strategy. It is not merely a defensive reaction to market changes but an offensive play to capture future growth. With Anheuser-Busch’s stock trading around $60.48, the acquisition could serve as a catalyst, directly addressing concerns about legacy beer volumes by integrating a high-velocity growth asset into its portfolio.BeatBox Offers a High-Velocity Growth EngineTo grasp the logic behind the nearly half-billion-dollar investment, investors must examine the asset itself. BeatBox is not a speculative startup; it is a proven category leader with a dedicated consumer base.The brand, famous for its high-alcohol (11.1% ABV) Party Punch in distinctive, sustainable Tetra Pak cartons, has carved out a profitable space in the market.The brand’s powerful financial metrics justify the premium valuation. In the last year alone, BeatBox generated over $340 million in retail sales. Sales volume surged by an astounding 90% in 2024 and is on track for another 34% expansion in 2025.By acquiring a controlling stake, Anheuser-Busch is buying a pre-built growth engine, avoiding the risk of developing a new brand from scratch. This move allows the company to immediately tap into a fast-scaling product line that resonates with younger consumers.The Beyond Beer PlaybookThe BeatBox acquisition is a key move in a much larger corporate strategy: insulating the company from the volatility of the legacy beer market. While Anheuser-Busch remains the world’s top brewer, its most recent quarterly results highlighted the industry’s challenges. In the third quarter of 2025, global beer volumes declined by 3.7%, impacted by unseasonable weather in the Americas and a softer consumer landscape in China.This is precisely where its Beyond Beer portfolio proves its strategic value. Anheuser-Busch has diligently built a collection of non-beer assets, including the successful Cutwater Spirits canned cocktails and NĂśTRL vodka seltzer. This segment is delivering stellar results—in Q3 2025, the Beyond Beer portfolio’s revenue grew by a healthy 27%.By integrating BeatBox into this high-performing division, Anheuser-Busch creates an even stronger, more diversified revenue stream. This strategy provides a powerful hedge, allowing the company to capture growth and maintain financial momentum even when its core beer business faces temporary market pressures.The Best of Both WorldsWhile Anheuser-Busch is aggressively pursuing growth, it does so from a position of immense financial strength. The company’s recent capital allocation decisions demonstrate a balanced and shareholder-friendly approach, proving it can fund strategic acquisitions while also returning value to investors.The company is not just chasing sales; it is becoming more profitable. Through a strategy of premiumization, focusing on higher-value products, Anheuser-Busch is expanding its margins. In the third quarter, revenue per hectoliter increased by 4.8%, and overall EBITDA margins expanded by 85 basis points. This operational efficiency generates powerful cash flow, which the company is strategically deploying to:Buy Back Stock: The board recently authorized a new $6 billion share buyback program to be executed over the next 24 months.Pay Down Debt: The company is redeeming approximately $2 billion in bonds, proactively managing its balance sheet and clearing all major debt maturities through 2026.Reward Shareholders: Management confirmed an interim dividend for 2025, contributing to a total estimated annual payout of around 97 cents per share.This disciplined approach shows that Anheuser-Busch has the financial firepower to invest in its future without compromising its commitment to its stockholders.A Cautiously Bullish OutlookWall Street has taken note of this strategic pivot, with the consensus rating for Anheuser-Busch stockstanding at a Moderate Buy. Analysts have set an average 12-month price target of approximately $72, representing a potential upside of nearly 19% from its current trading level.The bull case, supported by firms like Jefferies, is that this strategic evolution is precisely what the company needs to drive future earnings.The bear case, highlighted by Deutsche Bank’s recent downgrade to Hold, suggests that structural headwinds in core beer markets and the manufacturing sector overall may temper short-term growth.For investors, the BeatBox acquisition is a tangible sign that Anheuser-Busch is not just surviving the industry shift but is positioning itself to lead it.With a reasonable valuation, as reflected in a price-to-earnings ratio (P/E) of around 19.7x, and a management team actively creating shareholder value, the stock presents a compelling case for those looking to invest in a legacy company successfully building its next chapter. 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