Hey Snackers,
If you thought your Trader Joe's haul was pumpkin-extreme, think again: a man just won the "Pumpkin Super Bowl" with a 2,350-pound gourd named Tiger King. A lot to digest there.
Stocks ticked down yesterday as stimulus deal talks continued without any concrete progress (as usual). The White House is aiming to have some kind of deal done by tomorrow.
Who didn't get corona-ghosted last quarter... Snap stock soared ~30% to an all-time high after the little ghost reported expectation-smashing earnings. You probably noticed more ads appearing every 5 seconds as you tried to watch “Kylie sizzles on Capri beach” and "Oddly Satisfying."
Zucking revenge... Snap's growth slowed big time after Facebook's Instagram copied its game-changing Stories back in 2016. But last quarter, Snap profited off FB's misfortune: earnings were boosted by the FB ad boycott, as marketers shifted spend to Snap. Also: since TikTok was banned in India, Snap more than doubled its users in the world's 2nd most populous country.
Snap got lucky... with the FB boycott and the TikTok ban saga. Now the question is: can it keep up the growth and users it gained last quarter? Snap's CFO said that it's not clear whether pumped-up ad demand will stick. But investors ignored that, boosting the stock on the surprising growth.
Just like Emily in Paris... Netflix's quarter didn't go as planned. Netflix added just 2.2M subscribers in its third quarter, less than the 2.5M it forecast and waaay less than the 3.6M analysts expected. Netflix stock dropped 7% because in the markets, everything is relative:
The boom is over... Netflix saw explosive growth during the first half of the year, as we hibernated with our laptops and instant ramen. It became a utility (gas, electric, and Flix) — but that also led to more subscripturation (aka: subscription saturation).
Netflix needs to get creative to reach non-streamers... It has 200M paying subscribers, but its next 100M will probably be streaming virgins — everyone else is over-subscribed. That's why Netflix is looking to emerging markets like India and Brazil for future growth. It's even offering a free, 48-hour streaming event in India — and it probably won’t even ask for payment info.
Are We There Yet?... Like the 2005 Ice Cube family classic, the mid-2000s were filled with gas-guzzling cars that could fit entire football teams (RIP Lincoln Navigator). Now GM is bringing bulky back by reviving the Hummer, which it discontinued in 2009 when it went bankrupt. But now it's the opposite of a gas-guzzler:
Smells Musky... GM has made big moves in the EV world, and is now competing against Tesla with the Hummer. It's set to go on sale in a year – likely ahead of Elon’s Cybertruck.
This is a mainstream milestone for EVs... Everyone's talking about Tesla, but EVs were just 2.6% of global car sales in 2019. GM's sustainable version of its nostalgic, ultra-unsustainable car could lure more non-EV people to the electric side.
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Disclosure: Authors of this Snacks own shares of Snap, Tesla, and Disney
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