Palo Alto Networks acquires CyberArk in a $25B deal, Starbucks’ turn-around plan update

Business news update for Thursday, July 31st

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Welcome to Capital Currents—where the flow of business news and market trends keeps you ahead of the tide. I am your watchdog and today is Thursday, July 31st.

In today's episode, I’ll get you ready for a big Fed meeting and tell you when investors are expecting a rate cut. Then, a big acquisition in the cybersecurity space. Finally, let’s check in on Starbucks and their turnaround plan.

After six straight days of gains, the market hit a speed bump yesterday, with the S\&P and Nasdaq both dropping about 0.3%. Looking ahead, the Fed wrapped up its meeting yesterday, and as expected, no rate cuts—despite pressure from President Trump. Investors will tune in to Jerome Powell’s press conference for any clues of a potential September rate cut. Markets are currently pricing in a 60% chance, and those odds could shift based on Powell’s tone.

One reason the Fed hasn’t cut yet? Tariffs. They fear inflation could flare back up. But recent data shows tariffs haven’t had much effect. And with trade clarity improving, a September cut may be back on the table.

But that’s not the only big thing today—Microsoft and Meta earnings are out too. So, tomorrow’s episode will be loaded.

Let’s run through some headlines, starting with cybersecurity. Palo Alto Networks is acquiring Israeli identity security firm CyberArk in a \$25B deal. CyberArk is a leader in privileged access management—basically the digital bouncer for enterprise systems. Shareholders get \$45 a share, a 26% premium from Friday’s close.

This is the second big cybersecurity M\&A this year—Google bought Wiz for \$32B in March. Palo Alto’s CEO called this a strategic move to prepare for threats from agentic AI. Wall Street isn’t loving the price tag though—Palo Alto shares are down 8% today. But analysts like Dan Ives are calling it a home run, predicting more consolidation across the sector. Names like Zscaler, CrowdStrike, and Checkpoint could be next. Get ready for more six-factor authentication soon.

Now to Starbucks. They just reported earnings—and it’s still lukewarm. Q2 sales and profits missed expectations. Comparable sales fell 2% and profits came in at \$0.50 a share, well below the \$0.65 expected. That’s six straight quarters of same-store sales declines.

New CEO Brian Nickel, formerly of Chipotle, is leading the turnaround. He’s revamping stores to reduce wait times and bring back that “warm, human” Starbucks vibe. Mobile-only stores are being phased out, and \$500M is being spent to boost staffing. The numbers haven’t popped yet—but investors liked the tone. Shares are up 5% today.

There was also good news from China, Starbucks’s #2 market. Sales rose 2%, the first growth there since early 2024. Lower prices and sugar-free drinks helped.

Now to stocks. Harley-Davidson is revving up—shares are up 20% after reports they may sell their financing unit for \$5B. They’re in talks with KKR and PIMCO. This unit makes up 20% of revenue and provides loans to dealers and buyers. Harley just missed on earnings and declined to give annual guidance. Revenue fell 19% as demand and tariffs hit hard. But investors love the financing exit.

On the flip side, Mondelez—the maker of Oreos—is down 5% this morning. North American sales dropped 3%, and they blame economic anxiety and earlier price hikes tied to cocoa costs. Cocoa prices spiked earlier this year, and while supply has improved, the damage is done. They still expect a 10% drop in earnings this year. A Hershey’s collab might help—Reese’s-flavored Oreos are coming this fall.

That’s all for today’s show. Keep navigating those waters—and see you tomorrow.