Hey Snackers,
A window into the wild housing market: after five cash offers, a Virginia home sold above asking price in less than a week — despite the stranger living rent-free in the basement. “Selling Sunset” would never.
In the markets, volatility has become the new normal: stocks ticked up after a choppy trading sesh, a day after the techy Nasdaq had its largest daily drop since 2020. Big Tech earnings are in full swing (so far — not encouraging). Apple and Amazon report today.
Oh, Zuck... Even legless metaverse avatars can't distract from this reality: Meta posted its slowest quarterly revenue growth since going public as Facebook in 2012. In the previous quarter, Meta reported a $1B profit hit and its first-ever dip in daily users (cue: TikTok smirk). The latest: users actually ticked up last quarter, but financials… weren’t great.
FAANG may be losing its teeth... Meta isn't the only Big Techie with slacking growth. Last week Netflix tanked on news that it lost 200K subscribers last quarter — and expects to lose millions more. On Monday, Google reported slowing sales growth and profits. Investors also ghosted Snap, which disappointed on earnings as ads faced pressure.
Revenue diversity is winning... Between Covid, inflation, and war, the economic situation is too fragile to rely on one $$ stream (think: Meta with ads). Even Netflix has cracked the door open to ads, after years of renouncing them. Microsoft crushed earnings thanks to strong demand not only for its software but also for its cloud and cybersecurity services (yep, it has a $15B cyber biz). And even though Google ads slowed, growth in cloud, hardware, and services saved the day.
Splurging on a new Tulum fit… or three. Credit-card companies are racking up profits as you go on a pre-summer swipe spree. Last quarter, Visa’s sales jumped 25%, from a 2% decline a year ago. Now it expects to top pre-pandemic levels this year. FYI: Visa makes up over half of the US payments market.
Dusting off the passport… As most pandemic-era restrictions have now been lifted, consumers are making up for lost time when it comes to travel. More than 80% of Americans will take at least one trip with family and friends this year, and at least half plan to spend more than before the pandemic. For tourists visiting the US, Visa execs say there’s “plenty of recovery” to come.
Consumer spending is in a U-turn… People aren’t spending less — they’re spending differently. Think: moving dollars from DoorDash and Netflix and into restaurants and delayed vacays. But it’s TBD how long the spree can last: concerns are rising that the global economy might be in for a significant slowdown that could hit consumers just as they’re venturing back into their pre-Covid routines.
Authors of this Snacks own: bitcoin and shares of Google, Snap, Microsoft, Apple, Netflix, and Amazon
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