"Don't bother me while I'm Revenge Spending"
Hey Snackers,
Best company name of 2020: DoNotPay. The robot lawyer startup just raised $12M to robo-cancel your unused gym membership, get an airline refund, and appeal your parking ticket. And of course, to help you DoNotPay. So unsubtle that it's borderline subtle.
Markets continued to inch up Tuesday, and the Nasdaq hit an all-time high thanks to the big tech stocks it's comprised of. Apple stock hit a record high after the company showed off new features at its developer conference. More on that below.
Biggest fashion rebel of 2020... TJ Maxx. Discount retail giant TJX is the company behind the "affordable splurge" trifecta: TJ Maxx, Marshalls, and Homegoods. Now, it's also the unexpected rebel of the corona-conomy:
The magnetic pull of the "treasure hunt"... TJX is confident in the joy its customers derive from the "treasure hunting" experience. Finding a $27 Michael Kors bag under a shoe rack is not only fun, but also something to brag about. TJX knows this can only be achieved at its physical stores.
Ecommerce isn't always the solution... Online shopping operations can be expensive to implement and maintain. Shipping and returns make it hard to turn a profit on heavily discounted goods. And brands like Ralph Lauren don't want you to see their items selling for $12 online. Plus, ecommerce reduces the number of shoppers at stores. Since TJX thrives on the in-person shopping experience, it's one of the rare companies that can sidestep ecommerce.
Sounds like a pro wrestling match... WWDC 2020 is Apple's annual developers conference, where it shows off its latest software goodies. App developers eagerly await the week in June, crossing out days on their iCals. Apple says there are now over 1 Trillion ways to customize your identity with Memoji. But there's only one way to hold a massive event during a pandemic: online.
iSpy some changes... Meet the new iPhone operating system: iOS 14. Some of our Snacks highlights:
The "new new" hype is crucial... to Apple's sales growth. It obviously doesn’t want us holding onto our Macs for 5+ years. Apple had to pay a $500M fine over a lawsuit that alleged it was purposely slowing down older iPhones to make you buy a new one. But these annual shows are a positive way for Apple to stoke enthusiasm over its latest products. The novelty factor is key. TBD if Apple can come up with cool new features indefinitely.
When the FIFA match goes better than expected... Electronic Arts is the video game company behind FIFA, Madden, NBA Live, and 2000s legend The Sims (unforgettable).
The stock also rises... EA stock ticked up after it leveled up its forecast. Some game publishers were expecting 2020 to be a down year, since upcoming new gaming consoles haven't been released yet.
Content is king... in media. That goes extra for video games right now. We've seen media snatch up content/IP: Netflix is on a media buying spree (including signing GoT's writers) and Spotify struck deals with Joe Rogan, Kim Kardashian, and Batman. EA bought the rights to make games featuring major sports teams like the NFL, NHL, and NBA. Its pipeline of new content for games will be key to continued growth.
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Disclosure: Authors of this Snacks own shares of Apple, Spotify, and Square
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