Warby Parker and TKO are Ripping

Hope you new members of the Macke Portfolio family got long the whole basket last week; we’re having a great day with more to come. 

Here’s the rundown. 

Target’s $110 Million "Goodbye" to City Center

Target is officially cutting the cord on its legacy footprint in downtown Minneapolis. The retailer just paid $110 million to terminate its lease at City Center, a massive 1-million-square-foot space it technically vacated back in 2021.

This in addition to previously announced changes in the executive suite, an already visible uptick in the store energy levels and appearance and new 148k footprint stores / DC centers. Fiddelke is off to exactly the kind of start I wanted when I made Target my Turnaround of the Year play back in December.

Buckle up for Investor's Day on Tuesday. 

TKO Group: Up 8% to New ATH

TKO Group Holdings (TKO) reported a messy-looking GAAP miss (EPS of -$0.08 vs. $0.14 expected), but the market is looking right past the noise. TKO isn't about EPS. This company is the top arms dealer in an endless war for streaming content. It's a cash-generation maching with the buyback to prove it. It'll dip again. Buy that dip. 

• The Reaction: Shares up 8% on $1B buyback, big margins and lucrative location fees for events, as well as 12% revenue beat ($1.04B) and a massive 2026 guidance raise.

• The Alpha: The "Respect" here is coming from the cash. TKO generated $1.16 billion in Free Cash Flow for 2025 and just authorized another $1 billion share buyback. With the Netflix/WWE deal kicking in, they are projecting 2026 revenue to climb as high as $5.78 billion.

   

Warby Parker: Up 16% on a Miss

Warby Parker (WRBY) is today’s volatility king. They reported a significant Q4 EPS miss (-$0.05 vs. $0.05expected), but the stock shook it off during the call as the company laid out it’s conservative guidance and enthusiasm over Google and Samsung deals. 

The 10% short base doesn’t hurt. My favorite catalysts are “Large, murky and in the future”. Investors looking past mediocre numbers and buying the WRBY shares hand over fist today isn’t just a short squeeze. It’s a chilling portent of doom for those who dare bet against the hardware side of the AI story. No one is going to Vibe Code glasses that bring AI to your face.