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Meta looks to replace Llama with Avocado next year. (0:15) Americans are very reluctant to quit. (2:12) Office Depot/Office Max public journey ends. (2:50)
This is an abridged transcript of the podcast:
Our top story so far, it looks like the time is ripe for Avocado.
Meta Platforms (META) is preparing to launch a new large language model in early 2026 as it ramps up competition with Google, OpenAI and Anthropic. That’s according to CNBC.
The model — code-named Avocado — is viewed internally as the successor to Llama. Unlike Llama, which Meta open-sourced, Avocado is expected to be proprietary, marking a significant strategic shift after months of internal debate over whether Llama was falling behind rival systems.
Back in June, Meta executives — including CEO Mark Zuckerberg — discussed “de-investing” in Llama in favor of more advanced external models. Two months later, the company reorganized its AI division to speed product development and better position itself in the generative-AI race.
Meta has also been expanding its AI bench. This summer, it paid nearly $15B for a stake in Scale AI and named CEO Alexandr Wong as Meta’s Chief AI Officer.
Also in the AI space, OpenAI’s (OPENAI) ChatGPT continues to reach new milestones, with the number of weekly active users reaching 900M, which represents an increase of 100M in less than two months, according to The Information.
Among active stocks, Home Depot (HD) is lower after releasing a preliminary outlook for 2026 that didn’t bode well for a housing recovery next year.
Home Depot expects total sales growth of around 2.5% to 4.5% (estimate of about 5% growth), and comparable sales growth of flat to 2% (estimate +2.1%).
Toll Brothers (TOL) is sliding after the company’s fiscal Q4 earnings fell far short of the Wall Street consensus, due to the delayed closing of the sale of its stake in the Apartment Living business.
CEO Douglas C. Yearley Jr. said given “soft demand across many markets, we remain focused on running our business in a disciplined manner” and guided 2026 deliveries of 10,300-10,700 units vs. consensus of 10,886.
And AutoZone (AZO) is lower after missing fiscal Q1 revenue and profit estimates. Same-store sales rose 5.5%, falling short of the consensus xof 5.9%.
Looking to the economy, the delayed JOLTS numbers hit. The number of job openings ticked up to 7.67 million in October from 7.66 million in September – two months at the same time, given the shutdown delay.
But beneath the headline, the report points to a cooling labor market — marked by fewer hires and more layoffs. The private sector quits rate fell to 2%, its lowest level since May 2020.
Pantheon Macro’s Samuel Tombs says that the drop signals a shift — if companies want to control labor costs, “they’ll have to pivot to active layoffs, lifting unemployment, rather than rely on natural attrition.”
In other news of note, everyone still needs a three-hole punch, right?
Atlas Holdings’ buyout of ODP Corporation (ODP) is set to close before Wednesday’s open.
Under the agreement signed in late September, an Atlas affiliate will merge with ODP, taking the Office Depot/OfficeMax parent private in a deal valued at roughly $1B. Shareholders will receive $28 per share in cash.
Once private, ODP will focus on its B2B distribution platform and supply-chain infrastructure, as well as its Office Depot and OfficeMax retail footprint — but without the short-term pressure of quarterly earnings.
ODP’s shift has been more than a decade in the making. The company — born from the Office Depot–OfficeMax merger in 2013 — has steadily moved away from a big-box retail model as Amazon and mass merchants like Walmart, Costco and Target ate into its core categories. That pushed ODP toward an integrated business-solutions and omnichannel strategy, with a smaller but still national store network.
And in the Wall Street Research Corner, Goldman Sachs says investors shouldn’t overlook what it calls a “sweet spot” in the consumer landscape: companies tied to middle-income households.
The bank expects real income growth for this group to pick up meaningfully in early 2026, helped by cooling tariff-driven inflation, renewed tax refunds, and a steadier labor backdrop.
Yet the stocks most levered to these consumers are trading well below the market — the median name sits at just 15× forward earnings, a steep discount to the S&P 500.
Among the names with sweet spot middle income exposure are Nike (NKE), Starbucks (SBUX), TJX (TJX), Dick’s Sporting Goods (DKS) and Tractor Supply (TSCO).
Check out all 39 stocks here.
