An Apple Executive a Day...

Hi there! 

Welcome to FinSoar. Apple seems to be losing all its executives, consumer sentiment is rising, and Netflix just bought Warner Bros. Discovery for $82.7 billion in a deal that could forever change Hollywood: 

Apple is bleeding executives. AI chief John Giannandrea stepped down Monday after seven years struggling to catch up with competitors on generative AI. 

Days later, Meta poached design executive Alan Dye, who led Apple's user interface team since 2015 and designed everything from the Apple Watch to the Vision Pro headset to the divisive Liquid Glass interface that launched in June.

The departures aren't exactly isolated incidents. Apple has lost over a dozen AI executives and researchers in 2025, and one company has scooped up most of them. 

Meta hired nine former Apple employees this year, including distinguished engineers, senior directors, and research scientists. Mark Zuckerberg has been offering compensation packages worth hundreds of millions annually to win the AI talent wars.

In the meantime, Apple has repeatedly delayed upgrades to Siri, admitting in March the work needed "more time to reach our high-quality bar," according to software chief Craig Federighi. 

The Verge reported that CEO Tim Cook had "lost confidence" in Giannandrea's ability to oversee AI efforts. Apple Intelligence launched in June 2024 but features remain incremental compared to competitors. Google added real-time translation to headphones in 2017; Apple just added it to AirPods.

Other senior leaders are also heading for the exits: COO Jeff Williams retired last month, general counsel Kate Adams is retiring late 2026, and environment VP Lisa Jackson leaves in January. Bloomberg warns that "if 2025 was the 'benefit of the doubt' year for Apple, 2026 is the deadline for its Plan B."

Yet Apple stock hit a record $286.19 Tuesday, up 16% since mid-October on confidence about iPhone 17 sales. Shares have risen for seven straight days.

Apple also brought in Amar Subramanya from Microsoft to replace Giannandrea. Subramanya spent 16 years at Google working on Gemini before jumping to Microsoft in July. Apple also hired Meta's top lawyer Jennifer Newstead, who led the company through its FTC antitrust victory.

For now, Wall Street is betting the replacements can execute. 

But the exodus raises uncomfortable questions about whether Apple's legendary design cohesion can survive so many new faces during such a critical transition. 

Sources: Bloomberg, The Guardian, The Financial Times, Business Insider, Barron’s, The Verge

American consumers and business executives are both deeply pessimistic about the economy, but for the first time in months, they're starting to see glimmers of improvement. 

The University of Michigan's consumer sentiment index rose to 53.3 in early December from 51 in November, marking the first increase in five months. That's still down sharply from 71.7 in January. 

The survey director described the overall mood as "broadly somber" as consumers continue citing the burden of high prices.

However, the data reveals a strange paradox. Current economic conditions hit a fresh record low, but expectations for the future brightened. Personal finance expectations jumped 13% to the highest level since February, with improvements across all age groups, income levels, and education brackets.

Inflation fears are easing. Year-ahead inflation expectations dropped to 4.1% from 4.5%, the lowest since January. Five to ten year expectations fell to 3.2% from 3.4%. Consumers noted that the soaring inflation they feared during April and May's tariff chaos hasn't materialized.

But tariffs are still crushing consumers. The average U.S. tariff rate climbed from 2.4% in January to 16.8% last month, the highest since 1935, according to Yale University's Budget Lab. 

Trump has negotiated deals with Europe and Japan that brought rates down from threatened levels, but they remain punishingly high.

Business executives tell a similar story of contradictions. An AICPA survey found economic optimism dropped from 34% to 28%, with domestic economic conditions and inflation as top concerns. 

Yet confidence in their own companies improved from 37% to 41%. Revenue growth projections rose to 2% from 1.5%, while profit expectations jumped from 0.1% to 0.8%.

Tariff planning uncertainty eased to 49% from 58%. The 43-day government shutdown had minimal impact on most businesses. Still, 52% expect a recession by the end of 2026, with 17% saying we're already in one.

Sources: Morningstar, AP News, Bloomberg, ABC News, Reuters

Netflix announced Friday it will acquire Warner Bros Discovery's film studio and HBO Max streaming service for $82.7 billion, capping one of the messiest bidding wars in Hollywood history. 

The deal hands Netflix the studio behind Harry Potter, Batman, Superman, Game of Thrones, The White Lotus, and classics like Casablanca and The Wizard of Oz. Netflix will also gain control of TNT Sports UK & Ireland, which broadcasts Premier League and Champions League matches.

WBD shareholders get $23.25 cash plus $4.50 in Netflix stock per share. The deal closes after WBD spins off cable networks including CNN, TNT, and Discovery into a separate company called Discovery Global, expected in Q3 2026. 

Netflix pledged to continue theatrical releases for Warner Bros films and expects $2 billion to $3 billion in annual savings by year three.

Netflix beat out fierce competition from Paramount and Comcast. Paramount submitted a final bid of $30 per share, all cash with a $5 billion breakup fee, but accused Warner Bros of running an unfair auction with a "predetermined outcome that favors a single bidder." 

The letter from Paramount's attorneys called the process "myopic" and "tainted."

Politics looms large. Reports suggest Trump preferred Paramount to win because David Ellison already controls CBS, and Trump liked the idea of him also controlling CNN. 

Senator Mike Lee warned on X the deal "should send alarm to antitrust enforcers around the world" and could raise "serious competition questions." A Bank of America report stated bluntly: "If Netflix acquires Warner Bros., the streaming wars are effectively over."

Netflix offered a $5.8 billion breakup fee if regulators block the deal. Anonymous producers sent a letter to Congress warning Netflix "has no incentive to support theatrical exhibition" and voicing concerns about "monopolistic control."

Ted Sarandos acknowledged the acquisition surprised shareholders but called it a "rare opportunity" to set Netflix up "for decades to come." The company already has over 300 million subscribers; WBD had 128 million as of September 30.

Sources: CNBC, BBC, CNN, The Guardian, The New York Times

That’s all for today!