Hey Snackers,
Please turn your electronic devices to airplane mode. We're about to set a subsonic record. A British Airways flight notched a record speed, making it from New York to London in just 4 hours and 56 minutes (almost 2 hours earlier than scheduled).
Markets jumped on a stellar January jobs report (+225K jobs) and word that China's cutting tariffs on US goods.
PS: Valentine's Day is Friday (breadstick bouquets are in).
"Three-opoly" is our favorite made-up word... Perfect for an industry that loves making up words (supercalifragilisticexpialidocious, for example). The music biz is dominated by 3 labels: Universal Music, Sony Music, and Warner Music. The first two are owned by much bigger conglomerates (Vivendi and Sony), but the last one just filed to become a publicly traded stock. Here's what Warner Music does for a living:
The music industry was dead. It's almost back... thanks to streaming. The industry was popping platinum bottles in the year 2000, aka "Peak CD."
You can own a piece of your favorite music... Wondering why Taylor Swift can't do what she wants with her music? It's owned by her record label. As one of the top labels, Warner Music's stock (ticker symbol is TBD — we're hoping for "JAM") will let investors benefit from the continued rise of the streaming industry... or suffer if the revenue comeback dies.
Keep the Baby Yoda memes coming... Disney already has over 28M US subscribers for its new streaming service, Disney+ — for CEO Bob Iger, that launch exceed "even our greatest expectations." It took Netflix 5 years to reach 28M subs (it now has 167M globally), but Mickey only needed a few months. That's thanks to a combo of a much-loved brand, nostalgic content, pixie dust, and free year for Verizon subscribers.
Who pressed 'Ludicrous Mode'... on Tesla stock? Tesla surged 54% and added $56B to its market value in just a few days last week — that makes it #2 most valuable carmaker on Earth (after Toyota). And it's worth almost double GM and Ford combined... despite being unprofitable and producing barely 3% of the number of cars that GM and Ford did last year. Investors think Tesla's future profit potential is bigger than Detroit's. But the ludicrous rally was possibly driven by a short squeeze coupled with FOMO buyers.
It was all a dream... Casper stock has fallen an anti-climactic 28% since the mattress icon went public Thursday. A month ago, Casper was valued privately at $1.1B. When it woke up Friday post-IPO, it was worth $346M as a public company. A charming brand and cut-out-the-middleman biz model hasn't saved Casper from unprofitability (investors aren't into the $80M lost on returned/refunded/discounted mattresses). Now other D2C startups (Warby Parker, Glossier, Allbirds) might second-guess the IPO life.
Less high... Aurora Cannabis. The Canadian pot-company's stock fell 13% after the founder/CEO Terry Booth announced his departure and 500 employees were laid off. When weed was first legalized in Canada and some US states, producers went into full-hype mode building production facilities. But demand's been lower than expected, so overproduction has dropped pot prices. Aurora shares are down 80% since March and other pot producers have fallen over 50% on average in a year.
Disclosure: Authors of this Snacks own shares of Beyond Meat, Amazon, and Alibaba
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