🌏 Target’s Costco strategy

Good morning, Quartz readers!

Here’s what you need to know

Target (TGT) is following Costco (COST) and Walmart’s (WMT) lead on tariffs. The retailer is reportedly asking Chinese suppliers to absorb some of the costs of U.S. tariffs. 

… Meanwhile, Goldman Sachs (GS) warned tariffs could lead to higher inflation and greater recession risks. The bank’s outlook followed Trump’s more hawkish stance on trade.

Those same tariff concerns led to a major slide in the Magnificent 7 stocks. Reports of a more aggressive approach to tariffs by the Trump administration sparked the market decline.

Ahead of Trump’s new tariff announcement on Wednesday, Quartz has compiled an explainer on reciprocal tariffs.

Elon Musk admits his DOGE involvement has been costly for both him and Tesla (TSLA). Tesla became a target for protesters upset by Musk’s political ties to Trump.

Elsewhere in leadership, vaccine stocks took a hit after a top Food and Drug Administration regulator resigned. Peter Marks, head of the FDA’s Biologics Center, stepped down last week, spooking investors.

Jeff Bezos’s lavish wedding has sparked concerns — but Venice says locals need not worry. As residents grow frustrated with swarming tourists, the billionaire’s big day isn’t an issue.

Microsoft’s turning 50. What’s next?

Microsoft (MSFT) is turning 50 — but is it ready to lead the next technological revolution?

After pouring billions into AI, the tech giant’s bold gamble is now facing a harsh reality: That the AI gold rush might be slowing down. Microsoft’s stock is struggling while competitors like Google (GOOGL) and Amazon (AMZN) surge ahead. As Microsoft retreats from ambitious AI plans, insiders wonder if the company has lost its edge.

Can Microsoft reinvent itself once again, or has the AI revolution already passed it by? Quartz’s Jackie Snow ponders this question.

Costco’s Kirkland became a huge financial success. How come?

Costco’s gamble on Kirkland paid off big. What started as a bold move 30 years ago has now become a financial powerhouse.

Today, Kirkland contributes billions to Costco’s annual revenue. This success is driven in part by Costco’s focus on quality over quantity — offering just 4,000 items, a stark contrast to Walmart’s 140,000.

How much does Kirkland generate in sales, and what’s the story behind its name? Quartz’s Francisco Velasquez breaks it down.

More from Quartz

🫧 Does CoreWeave’s disappointing IPO signal an AI bubble?

🪙 The ETF strategy built to thrive during market volatility, according to a fund manager

❗ The worst stock market hit from tariffs could still be coming, strategist says

🤖 Amazon wants its new AI agent to do stuff on the web for you

🐱 Trump’s childhood home sells for a 61% loss — feral cats not included

♥️ Eli Lilly and Novo Nordisk are tackling heart health next

🤘 Amer Sports will continue to see double-digit growth in 2025, CEO says

🚙 Tesla deliveries are likely to miss the mark, analysts say

🚀 Rocket’s $9.4 billion takeover of Mr. Cooper sends its stock down

🏘️ 6 of the most over-the-top celebrity homes you can rent

🔺 China’s top 10 chip companies

💚 The 5 greenest cities in the world

Did you know we have two premium weekend emails, too? One gives you analysis on the week’s news, and one provides the best reads from Quartz and elsewhere to get your week started right. Become a member or give a membership as a gift!

Our best wishes on a safe start to the day. Send any news, comments, Costco hotdogs, or wedding invitations to [email protected]. Today’s Daily Brief was brought to you by Francisco Velasquez and Kevin Ryan.