DORK Stocks Resurge, Crypto Rebanking, and the Late Show's Fate | Slate Money

The Return of Meme Stocks: DORKs

• 💡 The resurgence of "meme stocks" is highlighted by the acronym DORK, representing four companies: Krispy Kreme (DNUT), Opendoor (OPEN), Rocket Mortgage (RKT), and Kohl's (KSS).
• 🎯 Opendoor, a real estate company that buys and sells homes, was particularly struggling with high interest rates and a declining housing market, facing potential delisting before a Reddit-driven surge.
• 🚀 The stock's rise was partly fueled by a post from investor Eric Jackson, known for a successful bet on Carvana, who believes the immediate catalyst for a stock's rise is simply the stock rising.
• 📈 While the stock saw significant gains, it has since come down from its peak frenzy, illustrating the volatile nature of meme stock investing.

Crypto Rebanking and Regulatory Shifts

• 🏦 The crypto industry is experiencing a "rebanking" trend, with regulatory obstacles seemingly evaporating, allowing new ventures to emerge despite existing laws.
• 🔍 Fintech companies like Meow, Mercury, and Brex are now banking crypto companies, a shift from previous reluctance due to concerns about reputational risk and illegal activities like fraud and money laundering.
• ⚠️ Historically, banks avoided crypto due to high instances of fraud and the need for costly enhanced due diligence (EDD), a burden that made banking crypto less profitable.
• 📉 The collapse of Silvergate bank, which claimed to perform EDD but allegedly didn't, raises questions about the thoroughness of current practices, especially with newer, smaller fintechs.
• 🌐 There's a concern that a future where everything is tokenized and less regulated could lead to systemic risk, though current big banks remain cautious about direct crypto involvement.

The Late Show's Cancellation: Financial or Political?

• 📺 CBS has announced the cancellation of The Late Show with Stephen Colbert, citing financial losses of $40 million per year.
• 🧐 The decision's timing, coinciding with Paramount's settlement with Donald Trump, has fueled speculation about political motivations, given Colbert's criticism of Trump.
• 📊 Despite being the highest-rated show in its time slot among the major networks, the show struggled to monetize its audience effectively, indicating business-side challenges.
• 💰 While Colbert's reported $20 million annual salary is high, media companies often retain flagship programs for prestige and viewership, even if not directly profitable.
• ⚖️ The acquisition of Paramount by Skydance, led by David Ellison (son of Trump-friendly Larry Ellison), adds another layer of complexity, though Ellison was reportedly not consulted on the cancellation.
• 📈 The broader trend of deregulation in the financial industry, whether through neglect or active policy, is seen as a potential risk, echoing past crises like the one leading to the 2008 financial meltdown.