💰 5 Fact Friday: Quantum Computing Gets A Reality Check

MEDIA
1. Disney & Fubo Tie The Knot 🤝

Disney and Fubo are teaming up to create the second-largest online pay-TV platform—behind only YouTube TV. The merger puts Hulu + Live TV, minus Hulu’s on-demand streaming service, under the Fubo umbrella.

Disney’s game plan? Offload its broad live TV bundle while unlocking Venu Sports, its specialized joint venture with Fox and Warner Bros.

Under the deal, Disney gets roughly 70% of the new company, while Fubo’s management keeps the steering wheel. Fubo’s stock soared over 250% on the news—an eye-popping reaction for a once-struggling streamer.

Here’s how it shakes out:

• No More Legal Drama: Fubo will settle its antitrust case for a cool $220 million payout from Fox, Warner, and Disney. Plus, Disney is ponying up a $145 million term loan for good measure.

• Bigger Together: The merged company will control 6.2 million North American subscribers and $6 billion in revenue—making it a serious threat to legacy cable and other streamers.

• Still Separate: You’ll continue to see Fubo and Hulu Live as stand-alone services. But behind the scenes, they’ll become one entity—sharing deals on sports rights (yes, ESPN is included) and distribution muscle.

Why it matters:

Traditional TV is hemorrhaging subscribers, and mega-streamers are jockeying for the best sports content. By snapping up a majority stake in Fubo, Disney isn’t just hedging against cord-cutting—it’s doubling down on streaming and sports, the niches with the biggest growth potential.

Some analysts predict this might be the first domino in a 2025 consolidation wave, as other media giants race to keep pace.

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ECONOMY
2. Rising Yields Keep Markets On Edge ⚠️

The 10-year Treasury yield touched 4.73% on Wednesday, its highest mark since April 2024, before settling around 4.69%.

That’s more than 100 basis points (1%) above last September’s low—despite the Fed cutting short-term rates by a full percentage point.

If you need more proof that demand for Uncle Sam’s debt is waning: the latest $38 billion auction of 10-year notes came in at a 4.68% yield, the steepest since 2007. Translation? The price for the government to borrow money is higher than it’s been in years.

Why it matters:

• Mortgage Rates: With the benchmark 10-year yield rising, the average 30-year mortgage climbed above 7%, crushing mortgage demand.

• Dollar Strength: Higher yields tend to strengthen the greenback, making imports cheaper and exports pricier—potentially clashing with President Trump’s manufacturing goals.

• Equity Pressure: If you can nab nearly 5% risk-free, there’s less incentive to chase Tesla at a stratospheric 100x forward P/E. History shows these rate spikes often coincide with market drawdowns.

Bottom line? Yields are the market’s puppet master—dictating moves in housing, currencies, and stocks alike.

As Mike Wilson, Morgan Stanley’s Chief Investment Officer, aptly put it: "The combination of these factors makes rates the most important variable to watch in early 2025."

REAL ESTATE
3. The Hottest Housing Markets Of 2025 🏠

If bidding wars are your thing, look no further. Zillow’s latest forecasts show which cities are leading the pack with demand so strong, even rising rates can’t cool the fire.

Why these markets? It comes down to a few key drivers:

Jobs vs. Permits: Buffalo has the most new jobs per new home permitted in the country. That means builders are struggling to meet demand, fueling fierce competition and propping up prices. This imbalance keeps Buffalo at #1 for the second straight year.

Inventory Squeeze: Hartford’s homes sold faster than anywhere else in 2024. Tight inventory pushed buyers to act decisively, supporting home values.

Affordable Alternatives: Providence, Hartford, and Philadelphia are magnets for those escaping sky-high costs in New York and Boston. These cities offer relative affordability without compromising on proximity to major job hubs.

Demographic Shifts: Millennials are flocking to mid-sized cities with job opportunities and cheaper housing. Meanwhile, Boomers are staying put, reducing resale inventory and intensifying demand.

Jobs, affordability, and inventory are the trifecta driving these markets. For buyers and investors, these metros may offer room to grow—even as the broader housing market cools.

MARKETS
4. Quantum Computing Gets A Reality Check 💻

In front of 6,000 attendees at the Consumer Electronics Show, Nvidia CEO Jensen Huang declared that “very useful quantum computers” are likely 15–30 years away.

His words triggered a quantum stock sell-off, with Rigetti Computing (-45%), IonQ (-39%), and D-Wave Quantum (-36%) bearing the brunt of the fallout.

Here’s what’s happening:

• Quantum’s Big Promise: Faster drug discovery, cracking encryption, advanced weather modeling—quantum is supposed to do it all.

• The Big Problem: The tech isn’t there yet. Scaling qubits (the building blocks of quantum computers) is brutally hard, and error correction is still a giant hurdle.

Not everyone’s buying Huang’s timeline though. D-Wave’s CEO clapped back, saying they’re already delivering real-world results.

But investors are skeptical—D-Wave reported less than $2 million in revenue last quarter. That’s couch-cushion money compared to Nvidia’s $35 billion.

As Baird’s tech strategist Ted Mortonson put it: “This whole quantum group is in the speculation overexuberance stage.”

Investor Takeaway

Remember that the winners in emerging tech aren’t always the first movers. Google wasn’t the first search engine, Amazon wasn’t the first online retailer, and Facebook wasn’t the first social network.

For now, portfolio managers suggest sticking with mega caps like Alphabet, Amazon, and IBM—companies with diverse revenue streams and cash to invest in quantum without betting the farm.

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STOCKS
5. Guess That Stock 🕵️‍♂️

Can you solve this week’s mystery? Here are five clues about a tech giant making big changes in its marketplace, moderation policies, and political positioning:

1. Despite a high-profile 2021 rebrand focused on immersive tech and virtual connections, advertising still accounts for over 95% of the company’s revenue.

2. Poised to benefit from a potential TikTok ban, the company is rumored to be mending ties with Trump’s incoming administration. This may also be damage control—after all, the president-elect once labeled it “an enemy of the people.”

3. The business is dropping its fact-checking program for a “community-driven” model, mirroring Elon Musk’s strategy on X. Advocates see this as empowering free speech, while critics worry it could fan the flames of misinformation.

4. The company just welcomed UFC CEO Dana White to its board, signaling a push for more balanced leadership.

5. Its marketplace is now testing eBay listings in the U.S. and Europe, as part of a broader effort to comply with EU antitrust mandates.

Got a guess? Tap here to reveal the answer → 

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