Pick a winner in this week’s world-famous-news-haiku-competition™ in today’s poll, below! 👇🏻

Matt Davis — Need2Know Chedditor

Table of Contents

• Voters Reject Data Centers in 47 Polls

• Shares of Truth Social’s Parent Co. Hit New Low

• High Gas Prices Boost Hybrid Giant Toyota's Stock

• Lockheed Pays $29.5M To Settle DEI Lawsuit

• What To Stream This Very Weekend

• Poll of the Day: It’s World-Famous-575™ Time

• Poll of the Day: Quelle Surprise!

What’s the Stock Market Up To, Eh?

$SPX ( ▼ 4.36% )  $DJI ( ▼ 3.44% )  $NDX ( ▲ 1.59% )  

Companies Mentioned in Today’s Newsletter

$DJT ( ▼ 10.47% )  $TM ( ▲ 9.35% )  $HMC ( ▲ 2.95% )  $TAETZZX ( ▲ 0.32% )  $LMT ( ▼ 3.17% )  

Voters Reject Data Centers in 47 Polls

American voters aren't thrilled about sharing their neighborhood power grid with gigawatt-guzzling AI server farms. In a midterm reality check for Big Tech, voters overwhelmingly rejected data center developments in 47 out of 50 local ballot initiatives across the country.

The bipartisan voter revolt sent shockwaves through political circles. Explaining lawmakers' sudden enthusiasm for regulating server farms, Raymond James policy analyst Ed Mills told the New York Post, “If they consistently see there’s an issue that voters support overwhelmingly, that is going to be their position.” Progressive lawmakers were quick to seize the moment, with Representative Greg Casar insisting that “AI company CEOs should be called to testify under oath.” Casar went further, calling the nationwide election result “just the early tremor of a much bigger AI earthquake upending American politics.”

So where do multi-billion-dollar tech giants turn when local zoning boards become an insurmountable wall of resistance? To orbit, obviously. Yes. To outer space. Meanwhile earthling voters have sent a clear message: AI can design the future, but tech titans will have to find somewhere else to plug it in.

Quote of the Day

Shares of Truth Social’s Parent Co. Hit New Low

If trading shares of Trump Media & Technology Group $DJT ( ▼ 10.47% ) is Wall Street’s barometer for Donald Trump’s popularity, then midterm election night was a catastrophe. A day after Democrats swept key midterm races, shares of Truth Social’s parent company fell 24%, closing at an all-time low of $4.49. That represents a loss of over 90% since the stock’s March 2024 debut, shrinking Trump’s personal stake from $6 billion to just over $500 million.

The downward slide has left former "true believers" nursing hangovers. Chad Nedohin, a part-time pastor and oil and gas engineer who was previously one of the company's biggest online cheerleaders, told the New York Times that he sold most of his shares and wants a securities lawyer to file a class-action lawsuit. Laments Nedohin, “The early shareholders did the right thing for the right reason, but it is devastating that Trump is not the person we thought.” (When asked to respond to the chaos, a Trump Media spokesman declined to comment).

Beyond the stock market meltdown, political and financial storm clouds are gathering fast. Newly empowered congressional Democrats are preparing investigations into Trump Media’s practice of selling early access to Trump’s posts to high-speed traders. Meanwhile, bondholders can demand their cash back on a $1 billion debt deal that fueled the firm’s $2 billion foray into crypto.

So how does management plan to save the day? By engineering a merger with TAE Technologies $TAETZZX ( ▲ 0.32% ) — a nuclear fusion startup whose own auditor warns is on the brink of running out of money. Could be tricky, I reckon. But: Best of luck!

High Gas Prices Boost Hybrid Giant Toyota's Stock

Never underestimate the power of an anxious commuter staring down a price hike at the gas pump. Remember when every CEO in Silicon Valley and Detroit vowed that all cars would be 100 percent battery-electric by next Tuesday? Toyota $TM ( ▲ 9.35% ) didn't get the memo, and right now, its executives are laughing all the way to the bank. As Middle East conflicts push gas prices higher at U.S. pumps, American drivers are sprinting away from pure EVs and straight into the arms of gas-electric hybrids.

The result? Toyota raised its full-year operating profit forecast to a whopping $24.7 billion, sending its stock surging over 16 percent in Tokyo — its biggest single-day leap in nearly 40 years. While rivals like Honda $HMC ( ▲ 2.95% ) suffered their first annual net loss in seven decades after over-pivoting to pure EVs, Toyota's "boring" hybrid bet is suddenly the hottest commodity on four wheels.

The demand is so overwhelming that dealerships can barely keep cars on the lot. As Sanshiro Fukao, an executive fellow at the Itochu Research Institute, told the New York Times, “inventories of hybrid vehicles are extremely tight — essentially, they sell like hot cakes even without discounting.” Fukao noted that this wild frenzy “is by far the biggest driver behind Toyota’s strong earnings.”

Of course, the victory lap might come with a speed bump. With Democrats taking back Congress in the midterms, federal EV tax credits could return, while low-cost Chinese EVs continue to squeeze Toyota in Asia. As Fukao warned, “Toyota’s current stellar earnings could be considered quite short-term,” adding that the ultimate test will be “how the Japanese auto industry will fare once we have to compete on battery EVs again.”

Song of the Day: After Louise, ‘Sometimes I Get Emotional’

This track by Los Angeles-based indie pop artist After Louise is a raw, alt-pop masterclass that trades manicured aesthetics for genuine emotional candor. It confronts the frustrating phenomenon of attempting to stand your ground during an intense argument, only to have your nervous system betray you with involuntary tears. So, it’s a lot like this newsletter.

Lockheed Pays $29.5M To Settle DEI Lawsuit

When you build stealth fighter jets and missile defense systems for a living, you’d think managing a basic employee bonus program wouldn't trigger a multi-million-dollar federal investigation. But. You know. Enter defense contractor Lockheed Martin $LMT ( ▼ 3.17% ) , which just agreed to pay $29.5 million to settle federal claims that its diversity-driven bonus scheme illegally discriminated against white employees.

The trouble began with a 2021 merit program designed to reward the top 20% of staff. According to the Justice Department, when automated "flags" popped up regarding the racial and sex composition of nominees, corporate personnel pressured managers to resolve the flags by removing non-minorities and adding racial minorities. That didn't sit well with former Vice President Tim Booher, who blew the whistle and resigned because he “felt that he could no longer be complicit in LMC’s illegal discrimination,” according to a suit brought against the firm by the Trump administration. (Booher is now walking away with a $4.4 million whistleblower payout under the Civil War-era False Claims Act).

Federal regulators were eager to declare victory. Celebrating the settlement, EEOC Chair Andrea Lucas stated, “Title VII protects every worker from employment discrimination on the basis of race — and that protection does not yield when discriminatory decisions are framed as diversity initiatives.” Booher’s attorneys similarly praised the “amicable conclusion that avoids prolonged litigation and ensures statutory compliance in federal contracting.”

For its part, Lockheed Martin denied all allegations, insisting to the New York Post that it “agreed to resolve this matter with the Department of Justice and the Equal Employment Opportunity Commission to avoid the distraction and expense of prolonged litigation.” The defense giant added, “We did not admit liability, determining it would be best for all involved to put these matters behind us so we can remain focused on our critical national security mission.”

Free Yourself From Advertising Forever!

What To Stream This Very Weekend

…from my colleague Lauren Babbage. Take it away, Lauren!

Nobody Wants This: Season 3 is back with an engagement, a divorce, a new love story, and all the good feels. Kristen Bell and Adam Brody return as the beloved rabbi and podcaster with a very quirky relationship. One of the best things about this show is how each season picks up RIGHT where the last one left off, making you feel like you're truly living alongside these characters and experiencing their day-to-day lives. This season, we've seen some really great character development from the supporting cast, and I love that the show seems to recognize when audiences connect with certain characters and gives them more room to shine. If you haven't watched the past 2 seasons, I highly suggest adding it to your binge list this weekend. 

Nocturne: If you haven't caught on by now, I love a good crime drama, and this one has all the makings of a great psychological thriller. Liev Schreiber plays a former cop who gets pulled back into a haunting serial killer investigation when a young boy mysteriously emerges from the woods after being missing for three years. The show has this dark, eerie atmosphere that makes you feel like something sinister is lurking around every corner, and just when you think you're starting to piece things together, another mystery unfolds. Every episode leaves you with more questions than answers, which is either the sign of a brilliant slow burn or a show that's setting us up for disappointment. Only three episodes are out so far, so I'm cautiously optimistic that all these loose ends will come together in one big, satisfying payoff. My one note: The first episode isn't great. We almost stopped watching. It just felt a little cheesy? We ended up trying the second episode, and it redeemed itself. 

Thanks, Lauren! And please, hit us up with your streaming recs. Thank you!

Should You Check Your 401(k) Today?

👎️ 

No.

Poll of the Day: It’s World-Famous-575™ Time

Poll of the Day: Quelle Surprise!

We asked: What about this week's midterm election results most shocked you?

You answered:

🟨⬜️⬜️⬜️⬜️⬜️ The GOP losin' Texas. (108)
⬜️⬜️⬜️⬜️⬜️⬜️ The first Democrat elected to the Senate from Kansas since 1932. (24)
⬜️⬜️⬜️⬜️⬜️⬜️ South Carolina's Darlene Graham losing her brother's old seat to the first Dem to win the seat since 1998. (13)
⬜️⬜️⬜️⬜️⬜️⬜️ Incumbent Maine Senator Susan Collins losing to Democrat Troy Jackson. (11)
⬜️⬜️⬜️⬜️⬜️⬜️ Michigan Democrat Abdul El Sayed defeating Republican Mike Rogers even after his primary opponent switched sides to endorse Rogers. (29)
🟩🟩🟩🟩🟩🟩 When Donald Trump said on Tuesday night that he was “absolutely willing” to accept the results of the midterm elections, and was prepared to work with Democrats. (314)
499 Votes via @beehiiv polls

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