| | Good morning. Want Goldman Sachs as your bank? Anthropic's latest Claude model may soon handle client vetting. CNBC reported Friday that the Wall Street titan has been working with Anthropic to make AI agents that can evaluate and onboard clients, as well as automate accounting for trades and transactions. Marco Argenti, Goldman's chief information officer, told CNBC that the agents, which he likened to a "digital co-worker," will launch "soon." It follows the October kickoff of a multiyear strategy, dubbed "OneGS 3.0," to retool some of the bank's operations "to fully benefit from the promise of AI." CEO David Solomon emphasized later that month that, while he believes AI will change "the way analysts, associates and investment bankers work," Goldman's total headcount will not decline. As for the rest of us, there's always a chance AI will hallucinate a better credit score for you. | | | | | | | | If you had to pick a soundtrack for Spotify shares in 2026, a Baroque lament or a mopey darkwave number might work best, considering their 27% drop. As the music and podcast streaming giant prepares to report its fourth-quarter and full-year 2025 earnings tomorrow, its vaunted pricing power and the business potential of new offerings will face the music. More optimistic analysts are keeping the faith that it will be a mix heavy on sunshine pop. Take a Hike Spotify's stock has slid lower amid a broader tech sell-off. Markets, therefore, will be listening closely to what executives say about the streaming service's outlook as they seek out value in the wake of the dip. One major consideration will be price hikes, which Spotify has used to drive revenue growth in recent years. In November, executives said past hikes led to only a "small amount of churn." Spotify had 713 million active users at the end of the third quarter, during which time the number of paid subscribers increased 12%. Meanwhile, the company plans to keep testing its pricing power: This month, the US Premium subscription fee went up $1 to $12.99 per month. Another consideration for investors will be the earnings potential of new offerings: - Last week, Spotify entered the physical book business, partnering with online retailer Bookshop.org to let audiobook listeners buy books in its app. That puts it toe-to-toe with e-commerce giant Amazon, whose business was built on a foundation of online bookselling.
- Last month, Spotify expanded its creator monetization program and added new video tools for podcasters, pitting it against YouTube. That followed another encroachment on the Google-owned video giant's market share in December, when Spotify made music videos available to its Premium subscribers in the US and Canada.
With Spotify shares at $422 as of Friday, many analysts are bullish on its buy-the-dip potential. Goldman Sachs upgraded the company's rating to "buy" last month and has a $700 price target, implying significant upside. The bank said the company's gross margin, which came in at 32% in the third quarter, could rise by 80 to 100 basis points annually over the next four years thanks to booming ad revenue, modest podcast costs and a strong position to negotiate royalty payments. Citi ($650 price target), UBS ($800) and Wells Fargo Securities ($710) feel much the same.   Ghost in the Machine: Spotify recently said that it accounts for 30% of global music industry revenue, having paid $11 billion to the industry last year, a 10% increase. That money, however, goes to a combination of rights-holders, including labels, distributors and publishers, and does not give a clear picture of how much goes to artists, who are often subject to low earnings in the streaming era. Written by Sean Craig | | | | | | | | | Photo via Fisher Investments | Your dream retirement isn't going to fund itself — that's what your portfolio is for. When generating income for a comfortable retirement, there are countless options to weigh. Muni bonds, dividends, REITs, Master Limited Partnerships — each comes with risk and opportunity. The Definitive Guide to Retirement Income from Fisher Investments shows you ways you can position your portfolio to help you maintain or improve your lifestyle in retirement. It also highlights common mistakes, such as tax mistakes, that can make a substantial difference as you plan your well-deserved future. Use this guide as you're navigating life's next phase! Download your free copy today.  | | | | | Shoppers appear to be checking out on PayPal. Checking out on using it at checkout, that is. The cash register, both online and in-store, has become a crowded space for payment platforms. The Venmo parent is up against giants like Apple Pay and Google Pay, e-commerce companies such as Shopify and new buy-now-pay-later providers like Affirm and Klarna, and it's not winning. Its most recent earnings report shows slowing growth in its branded checkout business, which lets customers choose PayPal at checkout. Growth in online branded checkout decelerated to 1% in the fourth quarter from 6% a year ago. The disappointing figures weighed on the company's revenue ($8.68 billion, compared with the $8.79 billion analysts expected, according to FactSet) and guidance (a mid-single-digit percentage decline in earnings per share in 2026, versus Wall Street's expectation of an 8% increase). Downgrades and Dismissal Why the slowdown for branded checkout? The company said weakness in US retail, international headlines and tough comparisons to previous results are partly to blame. But PayPal has also been doing some self-reflection, leading to the replacement of its CEO. HP's former president and CEO, Enrique Lores, is taking the reins on March 1, replacing Alex Chriss, who had held the top role since September 2023. "Our execution has not been where it needs to be, particularly in branded checkout," Jamie Miller, chief financial and operating officer who is serving as interim CEO until Lores starts, said in a statement. The weak guidance and surprising executive shuffle have analysts rethinking PayPal's strength: - Analysts at HSBC downgraded the stock to hold from buy, reflecting their lower confidence in the company's ability to fix branded checkout and improve results.
- TD Cowen analysts lowered their price target for the stock to $48 from $65. While PayPal has made progress in some initiatives, including Venmo and BNPL, "the Street is left to debate structural concerns in PYPL's core Branded online checkout business and await the potential for new strategic initiatives as PYPL changes its CEO," they wrote.
No More Mojo: PayPal's former president, David Marcus, who has also served as Meta's head of crypto and now runs payments company Lightspark, said his alma mater has "lost its mojo, its product edge, and its ability to compete in a market that's being rewired and reinvented in front of our eyes." He opined on X that the company made a "fundamental miscalculation" by optimizing for payment volume rather than margin and differentiation, and by leaning into unbranded checkout rather than branded checkout. When asked for comment, PayPal pointed to its earnings statement and call. Written by Mallika Mitra | | | | | | | | | | | Even Don Draper would have trouble selling a $3 can of Coke. For years now, Coca-Cola has wielded some of the strongest pricing power in the entire consumer business, steadily raising the prices of Coke and its other sodas while hardly shedding customers. But as the company nears its fourth-quarter earnings report this week, executives, analysts and other onlookers are beginning to wonder if shoppers are finally nearing their breaking point. Fizz-ures Make no mistake: All pop producers have benefited from raising soda prices. The average price of 12-packs and 2-liter bottles effectively doubled between 2020 and 2025, according to one analysis of Bureau of Labor Statistics data, far outpacing the national inflation rate. Coca-Cola, specifically, has fattened its operating margins from around 24% to 32% over that same span, according to its earnings reports. Meanwhile, its penchant for dividends has made it a defensive stock mainstay (there's a reason Warren Buffett has been a longtime fan). Its share price is now at record highs, trading at around $79. But there are now signs that the company has pushed it too far and lower-income consumers are starting to trade down to cheaper store-brand alternatives. Volume growth has flattened, and even turned negative, in major markets. The trend has prompted industry peers to start slashing prices: - Following a dust-up with activist Elliott Investment Management, PepsiCo said in December it would cut prices by about 15% across a host of items starting this month.
- On the other hand, Coca-Cola has somewhat offset falling flagship sales by pivoting to premiumization, finding stronger demand for health-oriented offerings like its protein-packed Fairlife milk.
"The US consumer continues to be robust, continues to spend, is resilient," CEO James Quincy said on CNBC in January. "It's not the best of times, it's not the worst of times." Going Flat: Consumers, it seems, more or less agree. In the latest consumer sentiment report from the University of Michigan, published Friday, optimism rose to its highest point in six months. This Friday will deliver the latest consumer price index report from the US Bureau of Labor Statistics for January, which will show which way the inflation winds are blowing. Written by Brian Boyle | | | | | - Unplugged: Shares in Jeep- and Chrysler-maker Stellantis fell 24% after the company said it was taking over $26 billion in charges for a "reset" that will involve rolling back electric vehicle plans amid weakening demand.
- Playing Monopoly? The Justice Department is investigating whether Netflix has engaged in monopolistic behaviour as it reviews the streamer's proposed acquisition of Warner Bros. Discovery's studios and HBO Max.
- Biotech Is Making Money Again. After a volatile period, the sector had an extraordinary comeback, outperforming the S&P 500 and broader market index and closing out 2025 with its best annual returns since the COVID-19 pandemic. Dig into Mizuho's 2026 Biotech Outlook.*
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