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Matt Davis — Need2Know Chedditor

News You Need2Know

• SpaceX files to go public in world's largest IPO e …

• Anthropic races to contain code leak behind Claude …

• Hershey says it will shift back to classic recipe …

• Private credit fund hit with huge redemption reque …

• A year later, here's where things stand on the pro …

What’s the stock market up to, eh?*

$SPX ( ▲ 0.11% ) $DJI ( ▼ 0.13% ) $NDX ( ▲ 0.18% )  

Companies mentioned in today’s newsletter

$SPACEX ( 0.0% )  $ANTHROPIC ( ▲ 1.34% )  $HSY ( ▲ 1.63% )  $OWL ( ▼ 1.61% )  $LNKD ( 0.0% )  $KKR ( ▼ 0.14% )  $ARES ( ▼ 3.19% )  $APO ( ▼ 2.91% )  $BLK ( ▲ 0.96% )  

SpaceX files to go public in world's largest IPO ever

Elon Musk's SpaceX has confidentially filed for an initial public offering that could become one of the largest in history. The rocket and satellite company is targeting a June debut, aiming to raise between $50 billion and $75 billion with a valuation exceeding $1 trillion.

Founded in 2002 with the ambitious goal of making humanity a multi-planetary species, SpaceX has evolved into a space-industry powerhouse. The company now dominates U.S. launches, accounting for five of every six trips to orbit, while its Starlink satellite internet service generated $8 billion in sales in 2024 alone.

The IPO proceeds would fund ambitious projects including orbital AI data centers, a lunar colony, and Mars missions. Some funds may also address, let’s say, debt from Musk's Twitter acquisition.

Not everyone is convinced the timing is right. Investment manager Ross Gerber called it "a terrible time to go public," talking to the New York Times, but acknowledged Musk's strategy: "Elon is saying, 'I have this window to fund all this craziness for a good period of time based on the SpaceX hype.'"

Others remain optimistic. Ark Invest's Brett Winton noted, "The amount is commensurate with the size of the opportunity."

A new world awaits in the off-world colonies!

Anthropic races to contain code leak behind Claude AI agent

Anthropic is facing an unexpected crisis after inadvertently exposing the proprietary instructions behind Claude Code, its popular AI coding assistant that has helped the company gain significant traction with developers and businesses.

The leak occurred Tuesday when a routine software update accidentally included files that linked to downloadable source code. An X user quickly spotted the exposure, and within hours, copies spread rapidly across GitHub. By Wednesday morning, Anthropic had issued copyright takedown requests — initially targeting over 8,000 copies before narrowing to 96.

"This was a release packaging issue caused by human error, not a security breach. We're rolling out measures to prevent this from happening again," an Anthropic spokesman told the Wall Street Journal, emphasizing that no customer data or the company's valuable AI model weights were compromised.

However, the leak did reveal commercially sensitive techniques Anthropic uses to make its AI models function effectively as coding agents. Programmers discovered intriguing features, including a memory consolidation process called "dreaming" and instructions for Claude Code to go "undercover" when publishing code.

The exposure gives competitors a potential roadmap to replicate Claude Code's functionality — a significant concern as Anthropic pursues a $380 billion valuation ahead of a possible IPO.

Dan Guido, CEO of cybersecurity firm Trail of Bits, offered a measured assessment: "The leak is embarrassing but not dangerous," he told the Journal.

Song of the Day: Yeat, Elton John, ‘Lose Control’

This song, from American rapper Yeat’s new double album, “A Dangerous Lyfe / A Dangerous Love” features a highly discussed collaboration with British pop and rock legend Sir Elton John. Critical consensus suggests that the track’s execution doesn’t quite match the massive and unexpected star power of its billing. Still, I rather like it.

Hershey says it will shift back to classic recipe for all Reese’s products after criticism

Hershey $HSY ( ▲ 1.63% ) announced Wednesday that all Reese's products will return to their original classic recipes by 2027, following public criticism from the grandson of the candy's inventor.

While Reese's Peanut Butter Cups have always featured real chocolate and peanut butter, some smaller products like mini Easter eggs had shifted to coatings containing less chocolate. That's about to change.

"Hershey is committed to making products consumers love and that means continually reviewing our recipes to meet evolving tastes and preferences," the company said in a statement.

The recipe reversal comes after Brad Reese, grandson of H.B. Reese who invented the iconic candy in 1928, sent a pointed public letter to Hershey's brand manager on Valentine's Day.

"How does The Hershey Co. continue to position Reese's as its flagship brand, a symbol of trust, quality and leadership, while quietly replacing the very ingredients (Milk Chocolate + Peanut Butter) that built Reese's trust in the first place?" Reese wrote on LinkedIn $LNKD ( 0.0% ) .

Rising cocoa prices had prompted Hershey and other manufacturers to experiment with reduced chocolate formulations in recent years.

Private credit fund hit with huge redemption requests

Private credit giant Blue Owl Capital $OWL ( ▼ 1.61% ) is grappling with a massive wave of redemption requests, as investors sought to withdraw approximately $5.4 billion from two flagship funds in the first quarter — raising serious questions about the health of the once-hot asset class.

The New York-based firm disclosed that withdrawal requests at its tech-lending fund surged to a staggering 40.7% of the fund's $3 billion value. Meanwhile, its marquee $20 billion direct-lending fund saw redemption requests hit 21.9%.

In response, Blue Owl capped withdrawals at 5% for both vehicles, a standard industry threshold that allows managers to effectively close the door on redemptions during periods of stress.

The exodus surpassed redemption levels at Blue Owl's major competitors, including KKR $KKR ( ▼ 0.14% ) , Ares Management $ARES ( ▼ 3.19% ) , Apollo Global $APO ( ▼ 2.91% ) , and BlackRock's $BLK ( ▲ 0.96% ) HPS Investment Partners, all of which have also limited withdrawals.

Craig Packer, Blue Owl's co-president, told the Financial Times the surge is due to "a period of heightened negative sentiment toward the asset class that has intensified as peers have reported tender results."

He maintained confidence in the underlying investments: "We continue to observe a meaningful disconnect between the public dialogue on private credit and the underlying trends in our portfolio."

The situation highlights the liquidity risks wealthy investors accepted when chasing higher yields in non-traded private credit funds.

Quote of the Day

A year later, here's where things stand on the promised U.S. manufacturing revival

One year after President Donald Trump promised that "jobs and factories will come roaring back" to America through his tariff policies, the numbers tell a different story. Manufacturing payrolls have actually declined by 98,000 jobs, including significant losses in auto and wood manufacturing, the very sectors his trade barriers were designed to protect.

Even supporters of the president's protectionist approach acknowledge the shortfall. "The effort is there, the action is there, but is it actually accomplishing the goal they set out to do?" said Nick Iacovella of the pro-tariff Coalition for a Prosperous America, talking to Politico. "I think in that respect there is still a lot of work left to do."

Critics are less forgiving. "There's no evidence that tariffs have had any positive impact on the economy," said Martha Gimbel, executive director of Yale's Budget Lab, talking to the same outlet.

The steel industry stands as a notable exception, with imports down 12.6% and jobs increasing. Brandon Farris of the Steel Manufacturers Association called the tariffs a "game changer."

However, ongoing policy uncertainty continues hampering broader investment. "The biggest reason companies aren't reshoring today is due to uncertainty around policy," explained Morgan Stanley's $MS ( ▼ 0.22% ) Chris Snyder.

United Autoworkers President Shawn Fain summed up labor's frustration: "We expect results. And after a year of big talk on trade from the president, we've still got plant closures ripping through our membership," he said.

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