Forbes Daily: Look Out New York, Texas Could Get Its Own Stock Exchange (2024)

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Good morning,

You probably tip at restaurants, but what about for takeout? Or when you check out at a local corner store? The etiquette around tipping has been upended by Covid-19, and more than a third of Americans think tipping culture has gotten out of control, according to a recent survey.

The survey found older generations have more negative attitudes about tipping than younger ones, but in some situations, Gen Zers and Millennials are tipping less consistently than older generations. It also revealed that pre-entered tip screens can also result in a smaller tip.

The bottom line is, you’re not alone if you feel like tipping is everywhere now. Bankrate senior industry analyst Ted Rossman called tipping “a hidden tax” in a press release.

Let’s get into the headlines,

FIRST UP

Françoise Bettencourt Meyers, the vice chair of French cosmetics giant L’Oréal, became the first woman to be worth $100 billion or more on Wednesday, with a net worth of $100.1 billion, per Forbes’ calculations. Her fortune was boosted as L’Oréal’s stock reached record highs, and she holds a nearly 35% stake in the beauty giant that she owns with her husband and two sons.

The , on the back of yet another surge from companies tightly linked to the artificial intelligence boom. The indexes’ apexes came as two of their three most valuable stocks surpassed $3 trillion market capitalizations, with Nvidia topping the milestone for the first time ever and Apple passing the mark for the first time since January.

BUSINESS + FINANCE

A group backed by more than two dozen investors—including Citadel Securities and BlackRock—is planning to start its own stock exchange in Texas, it said Wednesday, in an attempt to compete with the New York Stock Exchange and Nasdaq. The Texas Stock Exchange (TXSE) has raised $120 million in capital and plans to register with the SEC later this year, and seeks to expand access to markets for all investors and those seeking access to public capital, according to a press release.

The FTC is probing Microsoft’s recent deal with artificial intelligence startup Inflection AI to examine if the tech giant deliberately structured it in a manner that would avoid an antitrust review, The Wall Street Journal reported Thursday. In the deal, Microsoft did not gain any equity in Inflection AI or acquire any of its intellectual property, but the startup’s co-founder and CEO, along with nearly all of its employees, were hired by Microsoft.

WEALTH + ENTREPRENEURSHIP

Bernard Arnault, the French billionaire and CEO of luxury conglomerate LVMH, overtook Elon Musk to become the world’s richest person on Thursday after shares in his company surged nearly 1.5% in morning trading in Europe. Arnault’s wealth rose $7.7 billion Thursday, with his net worth reaching $210.1 billion, compared to Musk’s fortune of $208.6 billion.

Tesla shareholders will decide next week whether to reinstate Musk’s unprecedented $50 billion pay package, a decision Wall Street classifies as a pivotal moment for the carmaker that is at an inflection point in its history. The company’s CEO seeks to reverse a January ruling from a Delaware judge striking down the award as Tesla simultaneously seeks to switch its state of incorporation from Delaware to Texas.

TECH + INNOVATION ​​

Workers at Google are urging the company to offer 401(k) options that don’t include investments in fossil fuel companies like ExxonMobil, Shell and Chevron, according to a letter to management viewed by Forbes. A report published in April suggests that divestment would have a significant financial benefit for Google employees, estimating they have collectively lost out on $1.15 billion over the last decade because of the underperformance of fossil fuel investments.

Creators of artificial intelligence models have a vision for “multimodal” AI interfaces that can see, hear and speak to humans, but to do these things, models require a faster, more efficient type of network infrastructure—one provided by three-year-old startup LiveKit. This week the company announced it has raised a $22.7 million series A investment led by Altimeter Capital with participation from Redpoint Ventures.

SPORTS + ENTERTAINMENT

The NBA is close to signing new rights deals with Disney, Amazon and NBC that would bring in nearly $76 billion over the next 11 years, The Wall Street Journal reported Wednesday, a move that could shake up basketball fans’ viewing habits by moving a number of games to streaming services. If the deals go through, Warner Bros. Discovery’s TNT would lose its NBA broadcasting rights.

SCIENCE + HEALTHCARE

Shares for companies focused on psychedelic medicines plummeted during premarket trading on Wednesday after independent experts advised the Food and Drug Administration against approving psychedelic and stimulant drug MDMA, commonly known as ecstasy or molly, for post-traumatic stress disorder. It marks a major setback for companies and clinicians in the U.S. hoping to harness the therapeutic potential of psychedelics.

An FDA expert panel voted Wednesday to manufacture new Covid-19 vaccines to specifically target the JN.1 variant lineage—which makes up the most dominant strains circulating in the U.S. Pfizer, Novax and Moderna each said their updated vaccines will be available this fall ahead of the 2024-2025 flu season.

TRENDS + EXPLAINERS

A proposed settlement would allow the now-bankrupt FTX, formerly one of the largest crypto trading exchanges in the world, to whittle down its tax claim with the IRS to just $885 million. The IRS initially filed a tax claim against FTX for more than $44 billion, which was later amended to $24 billion.

DAILY COVER STORY

Meet The Billionaire Owners Facing Off In The 2024 NBA Finals

When Wyc Grousbeck took ownership of the Boston Celtics, his primary goal wasn’t to get richer—though the Celtics are now the fourth-most valuable team in the NBA. Grousbeck even gave his fellow owners that same pep talk. “I said to everybody, ‘You’re coming in for love, and we’re going to be paid in enjoyment,’” he recalls. “That was the only goal—to win a championship, not to make money.”

The Celtics did just that, winning the title in 2008, and the team can add a record-breaking 18th championship to their illustrious history when they tip off against the Dallas Mavericks Thursday night in the 2024 NBA Finals.

But even if making a lot of money wasn’t Grousbeck’s intention, that hasn’t stopped the franchise from doing just that. The Celtics are the 18th most profitable team in sports, generating an estimated $269 million in operating income combined over the last three seasons. By Forbes’ estimate, Boston is now worth $4.7 billion, including debt, a roughly 1,200% increase over the price Grousbeck and his partners paid. That exponential growth has also translated into considerable wealth; Forbes estimates the family of Irving Grousbeck, Wyc’s father, is worth $1.8 billion.

They’re not the only ones getting rich off the NBA’s rapid growth this century. Mark Cuban bought the Dallas Mavericks for $280 million in 2000 and, in October, Forbes valued the franchise at $4.5 billion, three spots behind the Celtics. The 65-year-old billionaire reportedly cashed out at a considerably lower price, selling most of his ownership stake last year to Miriam Adelson, widow of Las Vegas Sands chairman and CEO Sheldon Adelson, and her family at a $3.5 billion valuation.

Since 1998, when Forbes started tracking the values of sports franchises, NBA teams have appreciated at a 2,200% clip on average. The Celtics and Mavericks are among the 10 teams to experience the most growth during that period. And regardless of which team hoists the Larry O’Brien trophy this year, that growth shows no signs of slowing down.

WHY IT MATTERS “Even though these are two franchises with very different legacies—the Celtics have won more titles than anyone in the sport and the Mavericks only first broke through in 2011—both offer a rare snapshot of the NBA's explosive growth over the past 25 years,” says Forbes staff writer Justin Birnbaum.

“Grousbeck's group and Cuban got in at very similar times, at very similar prices and have seen very similar returns. And this could be the beginning of another bull run for the NBA. The NBA is reportedly on the verge of more than doubling its media rights fees, locking in a very bright future for the league.”

MORE The Most Valuable NBA Teams 2023

FACTS + COMMENTS

The national average price for a gallon of gasoline dipped below $3.50 for the first time since March on Wednesday. It’s a welcome sign for motorists at the pump, even as demand ticks up heading into the summer:

$3.49: The national average price per gallon, according to data from GasBuddy

Over $1.50: How much cheaper the current average gas price is compared to what it was in June 2022

Over 9 million: U.S. demand for gasoline in terms of barrels per day, as of last week, just shy of 9.18 million barrels per day at the same time last year

STRATEGY + SUCCESS

As we enter a new era of employee benefits, one idea is gaining traction: offering dating services as a company perk. Members of the modern workforce are increasingly looking for benefits that address their holistic well-being, including their personal lives. Personal relationships play a key role in a person’s happiness and mental health, which directly impact their performance in the workplace.

QUIZ

Lily Yohannes is the youngest athlete to play for the U.S. women’s national soccer team in more than two decades. How old is she turning next week?

A. 17

B. 15

C. 18

D. 16

Check your answer.

BEYOND THE NEWSROOM

Early access rates for the 2024 Forbes Under 30 Summit have been extended! Join the world’s top young leaders, founders and creators for a life-changing four days of connecting, learning, teaching and building. Don't miss out—register today before rates increase on June 10.

Forbes Daily: Look Out New York, Texas Could Get Its Own Stock Exchange (2024)

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