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Forbes
17 hours ago
- Business
- Forbes
Forbes Daily: Shake Shack's Founder Secures A Fast Food Fortune
When it comes to cybersecurity, human error is often the biggest risk. But the training offered by IT departments is typically easy to ignore and not tailored to staff needs. Cybersecurity startup Fable aims to change that by using AI to identify which employees need help with security practices and offer customized advice. For instance, if an employee isn't using multi-factor authentication, they may receive information about tools they can use to protect their accounts, and IT can keep an eye on whether workers take corrective steps. The firm is emerging from stealth today with $31 million in funding, valuing the business at $120 million. The New York Police Department responds to reports of an active shooter at 51st Street and Park Avenue on Monday. Barry Williams/New York Daily News/Tribune News Service via Getty Images At least four people were killed in Manhattan on Monday evening, including a New York City police officer, after a gunman carrying an M4 rifle opened fire inside a Midtown skyscraper before taking his own life. New York Police Commissioner Jessica Tisch identified the gunman as Shane Tamura from Las Vegas and said he had a 'documented mental health history.' The 27-year-old had a suicide note claiming he suffered from CTE, CNN reports, and the building where the shooting took place is home high-profile tenants including the NFL and investment firm Blackstone Group. Legislation introduced Monday by Senator Josh Hawley (R-Mo.) would provide tariff rebate checks of at least $600 to American families, after President Donald Trump signaled last week that his administration was 'thinking about a little rebate' that would impact 'people of a certain income level.' However, it's possible that such rebate checks could lead to higher inflation. The Covid-19 stimulus checks approved in 2020 and 2021 injected about $814 billion into the economy, contributing to inflation reaching a 41-year high by June 2022. This is a published version of the Forbes Daily newsletter, you can sign-up to get Forbes Daily in your inbox here. Photo bySpirit Airlines' woes continued, as the budget carrier announced its third round of pilot furloughs and demotions since last September. The airline industry is taking a hit from lagging consumer confidence, but on top of that, Spirit hasn't been profitable for six years, and declared Chapter 11 bankruptcy last November. WEALTH + ENTREPRENEURSHIP Shake Shack founder Danny Meyer. Photo byDanny Meyer got his start with upscale restaurants in New York City, but he's now a burger billionaire thanks to hamburger and frozen custard chain Shake Shack. Meyer, who founded the chain that has 585 locations and $1.3 billion in revenue, is part of a growing list of fast food billionaires, including Jersey Mike's Peter Cancro, Panda Express' Andrew and Peggy Cherng, and, recently, Chipotle founder Steve Ells. TECH + INNOVATION An electric Waymo vehicle testing in Boston. Photo by Craig F. Walker/The Boston Globe via Getty Images Waymo plans to launch its autonomous ride service in Dallas next year, its second market in Texas, where it's partnering with Avis to keep its growing fleet of electric vehicles in service. The news comes a week after Alphabet CEO Sundar Pichai said Waymo could soon triple the number of cities it's operating in, and the steady expansion draws a sharp contrast with Tesla, which remains in test mode despite CEO Elon Musk claiming his company is leading in the technology. MONEY + POLITICS Photo by ROBERTO SCHMIDT/AFP via Getty Images President Donald Trump has insisted that the jet he was controversially given from Qatar was 'free,' but a new report from the New York Times found the Pentagon appears to be using an over-budget missile project to pay for its renovations. The Pentagon classified the cost of the renovations, according to the Times , but a recent $934 million transfer from the budget for a notoriously costly nuclear missile program to an unnamed classified project has raised eyebrows. Trump asked a judge to order News Corp founder Rupert Murdoch to testify immediately in his defamation lawsuit over the Wall Street Journal' s reporting on Trump and Jeffrey Epstein, with the president citing the 94-year-old media mogul's age to justify the request. Trump and Murdoch, both billionaires, have had a complicated relationship over the years, and it remains to be seen if the case will go to trial, as legal experts have been broadly skeptical of the president's defamation arguments. TRENDS + EXPLAINERS The One Big Beautiful Bill Act has created uncertainty for students beyond just loan forgiveness: New work requirements could impact the millions of undergraduate and graduate students relying on Medicaid for health coverage. While students who attend school more than half-time should meet the mandate, it's not clear what constitutes half-time enrollment, which will need to be clarified through federal regulations or guidance before the work requirement takes effect in 2027. DAILY COVER STORY Inside Robinhood's Crypto-Fueled Plan For World Domination Robinhood cofounder and CEO Vlad Tenev Guerin Blask for Forbes First Robinhood cofounder and CEO Vlad Tenev blew up the brokerage industry's fee model. Now, thanks in part to his full-on crypto embrace, he is embarking on a global financial services takeover. The upstart brokerage that blossomed from the ashes of the global financial crisis and Occupy Wall Street movement has grown up, and now aims to be a one-stop financial firm for tech-native generations who prefer transacting digitally. Within the next 20 years, according to Cerulli Associates, they are expected to receive some $124 trillion in assets, mostly from their Boomer parents. Tenev plans to dominate next-generation investors in three phases he calls 'arcs.' First, win the active trader market, where the ROI is immediate, as evidenced by Robinhood's current strong results. Medium-term, around five years, he wants to serve the entirety of his customers' wallets, from credit cards to crypto, mortgages and IRAs. Third arc: Build the number one global financial ecosystem, presumably with Robinhood's blockchain as its backbone. Already, Robinhood's stock is trading at $111 a share, an all-time high and 384% above last year's levels, vaulting the brokerage firm's market cap to nearly $98 billion and into the ranks of the world's 250 most valuable companies. In 2024, it generated $1.4 billion in profit on nearly $3 billion in revenue and now holds $255 billion in assets. Tenev's personal fortune has jumped sixfold in a year to $6.1 billion. WHY IT MATTERS 'When it comes to retail financial services, inertia is second in power only to compound interest,' says Forbes deputy editor Nina Bambysheva. 'Customers are inherently sticky, but Tenev knows that the old giants of the financial world, including Fidelity, Schwab and Merrill Lynch, are vulnerable as trillions in Boomer assets are bequeathed to their digital-native off-spring. In fact, he thinks his biggest competition will come not from firms like Fidelity, or even the crypto-native Coinbase, but from the Anthropics and OpenAIs of the world: 'They're the ones moving the fastest and doing the most interesting stuff.'' MORE Crypto Goes Corporate As A New Wave Of Public Companies Buy Bitcoin FACTS + COMMENTS Travelers faced thousands of flight delays Monday amid extreme heat blanketing the U.S. High temperatures, especially when combined with humidity, not only increase the likelihood and severity of thunderstorms, the heat also forces airlines to reduce the weight carried on planes: Over 7,000: The number of flights within the U.S. that were delayed as of Monday evening About 16%: The percentage the delays represent among the total number of flights managed by the FAA on an average day 1,165: The number of delays on Southwest Airlines, the airline with the most delays among the 'big four' carriers STRATEGY + SUCCESS When you receive a full-time job offer, even if you're early in your career, don't forget that you still have the power to negotiate—it can set a precedent for your long-term growth and show employers you understand your value. First, treat the negotiation as a collaboration, and don't apologize for discussing salary. Even if you can't nudge your compensation higher, the practice of asking will likely help throughout your career. VIDEO QUIZ An Arizona woman was sentenced to more than eight years in prison for her role in a scheme involving IT workers who infiltrated and defrauded hundreds of U.S. businesses. Which country did the scheme generate illicit revenue for? A. Russia B. North Korea C. Iran D. China Check your answer. Thanks for reading! This edition of Forbes Daily was edited by Sarah Whitmire and Chris Dobstaff.
Forbes
7 days ago
- Business
- Forbes
Forbes Daily: General Motors Takes A More Than $1 Billion Tariff Hit
The housing market may be tipping back toward buyers, but a new proposal endorsed by President Donald Trump Tuesday could give sellers a financial boost. Trump suggested he supports legislation that would eliminate taxes on capital gains from home sales. Currently, single filers are exempt from the taxes on gains of $250,000 or less if they sell their primary residence, or up to $500,000 for married couples filing jointly. But those caps haven't been updated in more than two decades, and proponents of the policy argue the exemptions haven't kept up with rising costs. More than a third of homeowners, or 29 million, own enough equity in their home that they could exceed the $250,000 cap, the National Association of Realtors recently found. President Donald Trump with Japanese Prime Minister Shigeru Ishiba AFP via Getty Images The U.S. and Japan reached a trade agreement under which the U.S. trading partner will face a 15% tariff—down from a previously threatened 25%—President Donald Trump announced on Tuesday. Japanese Prime Minister Shigeru Ishiba called the deal a 'new golden era' in the relationship between the two countries, and Japanese automakers and U.S. stock futures rose after the announcement. General Motors took a more than $1 billion tariff-induced hit to its profits last quarter, the company said in its latest earnings report, following similar losses reported by Stellantis, which produces Chrysler and Jeep vehicles. GM projects to lose between $4 to $5 billion from the import taxes for the year, and expects that the third quarter will see a greater impact due to 'indirect tariff costs.' This is a published version of the Forbes Daily newsletter, you can sign-up to get Forbes Daily in your inbox here. Assembly of glass Coca-Cola bottles at a site near Paris AFP via Getty Images After pressure from President Donald Trump, Coca-Cola said it would make a version of its signature drink with cane sugar rather than corn syrup, as the 'Make America Healthy Again' movement has criticized the use of artificial ingredients. But the soda giant isn't fully replacing corn syrup in its products, a move that would have had a major impact on U.S. agriculture as the country produces 7.3 million tons of corn syrup each year, according to Reuters. The Trump Administration's trade deal with China that lowered the tariff rates on most Chinese goods will likely be extended past its August 12 deadline, Treasury Secretary Scott Bessent said Tuesday, but higher levies on other countries are still expected to take effect on August 1. The China trade deal reduced the combined 145% tariff rate down to 30%, a rate Bessent suggested the administration will likely keep. WEALTH + ENTREPRENEURSHIP Before Jeffrey Epstein's second arrest and death in prison, the convicted sex offender owned a property empire stretching from Paris to New Mexico, where many of the alleged crimes took place. Between 2021 and 2023, those properties were all sold for roughly $160 million, with Epstein's estate seeming to have kept roughly $50 million, and the rest being paid out to a fund set up to financially compensate his victims. Controversial crypto businessman Justin Sun will be the next billionaire to launch into space, as one of six crew members on a Blue Origin mission after paying $28 million for a seat. Sun, who helped finance the Trump family's crypto venture World Liberty Financial, is facing civil charges in the U.S. for fraud and market manipulation, but his SEC lawsuit was halted earlier this year. TECH + INNOVATION Forbes Under 30 alum Neil Parikh turned mattress company Casper into a billion-dollar business, and now, his new startup Slingshot AI is building a chatbot designed to replicate the experience of talking to a therapist. As many people face limited access to mental health care, Slingshot officially launched its AI-powered therapy bot called Ash Tuesday, and announced a fundraising round that brings its total funding to $93 million. MONEY + POLITICS As the Trump Administration faces continued pressure to release information about Jeffrey Epstein, House Speaker Mike Johnson is sending the chamber to summer recess early, canceling Thursday's votes before Democrats could force another on releasing the remaining files on the disgraced financier. Johnson accused Democrats of playing 'political games,' but he still faces a new bipartisan proposal that could force a vote when the House returns from recess in September. SPORTS + ENTERTAINMENT Ozzy Osbourne performs during half-time of the game between the Los Angeles Rams and the Buffalo Bills in September 2022. Getty Images Legendary Black Sabbath frontman and solo artist Ozzy Osbourne died at 76, his family confirmed, just weeks after his final performance with his old heavy metal band. The family didn't share the cause of his death, but Osbourne revealed he had been diagnosed with Parkinson's disease in 2020. DAILY COVER STORY Vibe Coding Turned This Swedish AI Unicorn Into The Fastest Growing Software Startup Ever Lovable CEO Anton Osika (right) and CTO Fabian Hedin Sebastian Nevols for Forbes Lovable, Sweden's new AI unicorn, has become the world's fastest-growing software startup by using AI to enable millions of non-coders to instantly turn their ideas into websites, apps and online side hustles. In June alone, around 750,000 projects—apps, websites, entire businesses—were built, hosted and launched with a handful of descriptive sentences and a few clicks on Lovable. This isn't like the clunky website builders of yesteryear, responsible for zillions of personal sites; nor are they sketches or wireframes that might look cool but aren't functional. Lovable projects, spun up in minutes thanks to generative AI, are actual working products with features ranging from email newsletters to payments via Stripe. The company hit $100 million in subscription revenue (on an annualized basis) in just eight months since its launch last November, eclipsing other rocketships like Israeli cloud security startup Wiz and San Francisco-based HR platform Deel. Now, a $200 million fundraising round that values the 45-person firm at $1.8 billion should help Lovable fend off competition in the so-called 'vibe coding' market from well-funded startup rivals and AI giants like OpenAI and Google alike. WHY IT MATTERS Cofounder and CEO Anton Osika, who started Lovable in September 2023, can't do much about this competition other than to stick to building products that humans love and hop between AI models for the best and cheapest. 'Humans understand humans,' he says, 'and Lovable is this enabling tool to make ideas come to life in minutes.' MORE AI 'Vibe Coder' Lovable Is Sweden's Latest Unicorn FACTS + COMMENTS A 'heat dome' is already affecting tens of millions of people across the South and Midwest, and it's expected to linger for weeks. The phenomenon could cause temperatures to surpass triple digits in a number of cities: More than 60 million: The number of people under hot weather advisories 19: The number of states with heat advisories, with more intense extreme heat watches in Wisconsin, Iowa and Illinois More than 2,300: How many people died of causes tied to heat in 2023 STRATEGY + SUCCESS If you're anxious about switching to a new industry in your career, the transition might be less intimidating than you think. Take time to reflect on what you truly want, and focus on building connections with people in that industry. Think about which of your skills could be considered transferable—such as problem solving and collaboration—and be sure to highlight them on your résumé. VIDEO The U.S. continued to slide in the rankings of the world's most powerful passports, falling to No. 10. Which country ranks first? A. Japan B. Singapore C. Germany D. Norway Check your answer. Thanks for reading! This edition of Forbes Daily was edited by Sarah Whitmire and Chris Dobstaff.
Forbes
18-04-2025
- Business
- Forbes
Forbes Daily: Inside Trump's Escalating Feud With Fed Chair Powell
The nation's largest health insurer went 0-for-3 on its latest earnings report, and Wall Street responded accordingly. UnitedHealth stock fell 22.4% Thursday after reporting it missed targets for revenue, earnings per share and future earnings outlook. It was otherwise a mild day for stocks, but UnitedHealth's historic loss (its worst since 1998) weighed heavily on the Dow, which fell by 1.3%. We want to thank everyone who took the time to weigh in on our reader survey, your feedback is truly helpful. If you'd still like to share your thoughts on the Forbes Daily newsletter, the survey will be open through the weekend. Photo by Michael M. Santiago/Getty Images A federal judge ruled Thursday that Google violated antitrust laws to maintain a monopoly in the publishing ad server and ad exchange markets, a decision that comes after a separate August ruling that found the tech giant illegally maintained a monopoly with its search engine. Thursday's ruling could allow prosecutors to request Google break up its advertising products, though the company says it will appeal. While fears of a sharp economic downturn due to President Donald Trump's tariff policies are pervading Wall Street, the head of the International Monetary Fund said Thursday that the border-spanning organization does not project a recession this year. Still, Kristalina Georgieva, managing director of the United Nations agency IMF, said the fund made 'notable markdowns' to its global economic growth forecasts due to trade disruptions, warning that 'high uncertainty raises the risk of financial market stress.' President Donald Trump and Jerome Powell in 2017. President Donald Trump notably escalated his long-running feud with Federal Reserve chair Jerome Powell on Thursday, calling for his 'termination' in a Truth Social post, which suggests a faster timeline for the end of the top-ranking central banker's term than its scheduled conclusion in May 2026. While Trump originally tapped Powell for the Fed chief role in 2017, he quickly soured on him, and wanted to remove him as early as 2018. Treasury Secretary Scott Bessent has reportedly advised Trump that firing Powell risks upending financial markets, according to Politico. In a move historically reserved for travel to China, some international business travelers are bringing burner phones to the U.S. to protect their information from surveillance by a hostile country—which, in the view of some Europeans, is what the U.S. has become under the second Trump Administration. Many countries have issued new travel advisories for their citizens traveling to the U.S., including Canada, China, France, Germany and Denmark. In just the past month, the Trump Administration has revoked more than 1,300 student visas, and it appears poised to restrict new visa approvals. And while a drop in foreign student enrollment on U.S. campuses will impact colleges' cash flow, it also endangers a large ecosystem of businesses that bring those students to the country—including recruiting firms, travel services, insurance providers and businesses that evaluate international academic credentials. MORE: Homeland Security Secretary Kristi Noem announced the department would terminate $2.7 million in grant funding for Harvard University on Wednesday, and also wrote to the university demanding 'detailed records' on known illegal or violent activity by Harvard's foreign student visa holders. Noem also threatened to pull the school's certification to enroll international students. Secretary of State Marco Rubio warned that the Trump Administration is prepared to abandon efforts to negotiate a peace deal between Russia and Ukraine if no significant progress is made in the next few days. Meeting with European and Ukrainian leaders in Paris, Rubio said that the president has 'dedicated a lot of time and energy to this,' but there were other 'really important things' which deserve 'just as much, if not more attention.' Precision Neuroscience, a company created by a cofounder of Elon Musk's Neuralink, cleared an important hurdle Thursday as the FDA approved a core component of the company's brain implant. Precision says it will now expand its research program for the implant—which the company claims could assist patients with severe paralysis—and a spokesperson told Bloomberg the company expects to bring its device to market in 2026. Illustration by Philip Smith for Forbes In just the past month, the Trump Administration has revoked more than 1,300 student visas, and it appears poised to restrict new visa approvals. And while a drop in foreign student enrollment on U.S. campuses will impact colleges' cash flow, it also endangers a large ecosystem of businesses that bring those students to the country—including recruiting firms, travel services, insurance providers and businesses that evaluate international academic credentials. MORE: Homeland Security Secretary Kristi Noem announced the department would terminate $2.7 million in grant funding for Harvard University on Wednesday, and also wrote to the university demanding 'detailed records' on known illegal or violent activity by Harvard's foreign student visa holders. Noem also threatened to pull the school's certification to enroll international students. 'A lot of people are threatened by us because they don't understand how we are doing it,' says James Kim, Stiiizy's CEO. 'That's the missing piece from the corporate guys—they don't know the consumer.' When Stiiizy was founded in 2017, it launched in California's gray market days before the state legalized recreational marijuana. Today, the once-scrappy startup has grown into a legal unicorn worth $1.5 billion—and it's not only California's biggest cannabis retailer, it's the best-selling weed brand in the U.S. The early start is what set Stiiizy apart, according to Daniel Yi, their former chief marketing officer. 'They had the advantage of huge momentum, and seemingly endless cash reserves.' But with success, came legal troubles and rumors of black-market operations. Stiiizy vapes began showing up in New York's unlicensed market, and were even spotted south of the border in Mexico City. Cannabis investors and executives who have worked in California's industry for over a decade say the rumors of Stiiizy diverting products into the illicit market are so pervasive that it has become an 'open secret.' 'They are not the best rule followers in the world,' says one cannabis executive who asked to remain anonymous. Tak Sato, Stiiizy's president, denies the allegations and says that the company '100%' does not operate illegally, adding that when Stiiizy products are found in unlicensed stores or on the black market that they are either counterfeits or smuggled from California by people who buy them in licensed dispensaries. All of the notoriety has not hurt Stiiizy's sales. In fact, its outlaw reputation seems to have had the opposite effect. Stiiizy is for stoners, not soccer moms and the so-called 'canna-curious.' While many weed brands have been developed in boardrooms, or by former corporate consultants, and look like something sold at Whole Foods, Stiiizy came of age in the unregulated weed world of Downtown LA, giving the company just the right amount of outlaw attitude. 'I think a lot of people are threatened by us because they don't understand how we are doing it,' says CEO and cofounder James Kim. 'I don't even know how we're doing it, but I think I just know the consumer. That's the missing piece from the corporate guys—they don't know the consumer.' WHY IT MATTERS With nearly $400 million in sales in California alone last year, Stiiizy controls about 7% of the Golden State's $5 billion legal cannabis industry. 'They are an insane brand, the consumer passion for them is just mind-blowing,' says Kyle Sherman, the CEO and founder of cannabis dispensary software company Flowhub. 'They have executed better than any other brand in the industry.' MORE Cannabis 42.0 2025 Eli Lilly revealed that a clinical trial of its once-daily weight loss pill showed effectiveness similar to injectable GLP-1 weight loss drugs, such as Novo Nordisk's Ozempic. Orforglipron is the first GLP-1 drug in pill form to successfully complete a phase III trial: 16 lbs: Study participants who had the highest dosage lost this much weight on average, over the 40-week trial 14%: The increase to Lilly's share price Thursday 8%: The decrease to competitor Novo Nordisk's share price Thursday The 'Great Wealth Transfer' is underway, sort of. Broadly, it is estimated that the Baby Boomer generation will transfer more than $53 trillion to its heirs through 2045, but generational dynamics will certainly play out differently in every family. Some Boomers subscribe to a 'Die With Zero' philosophy, while others want to stay prepared for rising healthcare costs, living expenses and longer lifespans. And of course, not all Boomers are flush—26% have less than $50,000 saved. After a blockbuster earnings report Thursday afternoon, which company appears to have established itself as a potential safe haven stock amid fears of an economic slowdown? A. Anheuser-Busch InBev B. Netflix C. Spotify D. Roku Check your answer. Thanks for reading! This edition of Forbes Daily was edited by Chris Dobstaff and Caroline Howard.
