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Market Data Table

Breakfast News: Rhode Results Rattle e.l.f.

October 21, 2025

Monday's Markets
S&P 500 6,735 (+1.07%)
Nasdaq 22,991 (+1.37%)
Dow 46,707 (+1.12%)
Bitcoin 110,842 (+1.73%)

Person with a briefcase stands at the top of a hill and looks down over a cliff.

1) e.l.f. Disappoints With Rhode Update

e.l.f. Beauty (NYSE:ELF) closed almost 7% lower after the business released the first financial update regarding the purchase of Hailey Bieber's Rhode brand, which showed underwhelming revenue growth.

Sales for the quarter ended in June at $40.2 million below the expected run rate: Rhode's previously reported annual sales for the latest full year were $212 million, so the latest figures didn't excite investors. However, the brand's 33% operating margin vastly exceeds e.l.f. at 19%.
"e.l.f.'s brand remains ascendant in the cosmetics and skincare industry": Fool analyst Tim Green pointed out that "e.l.f. is going through a rough patch, but we're confident that better days are ahead."

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2) PYPL Eyes Europe E-Commerce Growth

Bloomberg reports that Hidden Gems rec PayPal (NASDAQ:PYPL) is increasing its stake in German digital commerce company Shopware, as it looks to further build on international expansion.

"This reflects our…commitment to supporting the growth of digital commerce in Europe": A PayPal spokesperson didn't confirm the transaction details. The company initially invested $100 million along with Carlyle (NASDAQ:CG) back in 2022 but is now reportedly increasing the stake from 11% to 41%.
Germany offers a key e-commerce gateway: Shopware is the most widely used shop system in Germany, with the marketplace being the largest in the European Union, representing an area of growth for PayPal.

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3) Trump Agrees on Australian Rare-Earths Deal

President Donald Trump signed a landmark deal with Australian Prime Minister Anthony Albanese to increase U.S. access to rare earths and minerals, easing pressure from the existing Chinese export curbs on the materials.

"In about a year from now, we'll have so much critical mineral and rare earths that you won't know what to do with them": Trump detailed how the joint investment in Australian mines will enhance production significantly, benefiting a wide range of sectors, ranging from electric vehicles (EVs) to semiconductors.
Indirectly reducing trade tensions with China: Both countries pledged to protect their domestic markets from unfair trade practices, a thinly veiled nod to China, the largest producer globally.

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4) NFLX Reports Alongside TXN, MMM, and GE

Netflix (NASDAQ:NFLX) is set to report after the market closes, as is Texas Instruments (NASDAQ:TXN), with the latter under scrutiny due to the semiconductor exposure to China.

Beating earnings estimates for the past four quarters: 3M (NYSE:MMM) should release earnings before the market opens, aiming to build on a strong previous quarter, with a focus on whether management will be divesting parts of the industrial division.
More information on tariff mitigation expected: GE Aerospace (NYSE:GE) is slated to put out quarterly results before the opening bell, with profit due to grow, thanks in part to strong demand for spare parts.

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5) Your Take

Netflix is up 99.08% over the last five years. Across the same period, the S&P 500 is up 94.35%. But will Netflix be a market-beater over the next five years? Debate with friends and family, or become a member to hear what your fellow Fools are saying!

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