Hey Snackers,
"Hiring parties." Taco Bell's throwing them — And it's why you should care about the latest jobs report.
With record employment (196K new jobs last month, 3.8% unemployment), it's harder to find workers. But the econ update just helped deliver stocks their first 7-day win streak in over a year.
Highs
Who's up...
Snapchat's into gaming... Shares rose 6% last week after Snap's first "Partner Summit." The highlight: The new "Bitmoji Party" you can play with your avatar-ized buddies. And it's got 5 more multi-player smartphone games hitting the app soon. It's all about user engagement and re-finding Snap's mojo since user-growth stalled.
Not Lyft... (and that's OK). Two IPOs last week showed you don't have to be an app — just be yourself. First, Tradeweb Markets, an electronic trading platform, jumped 33% on its first day of trading (kinda meta). Then Silk Road Medical surged 81% on excitement for its stroke-prevention medical treatments. FYI, Lyft swung down before finishing the week above its IPO price.
What happens in Vegas... doesn't really matter compared to Macau. The government authority in China's gambling mecca announced the highest monthly gaming revenues of the year so far. Count it as a win for US gambling stocks — 69% of Wynn's biz comes from Macau and MGM just dropped a $3.4B resort there.
Lows
...And who's down
Streaming is a side-hustle... for Apple and Amazon. But it's full-hustle for Roku. The TV streamer's shares fell 4% last week on word Big Tech will compete more in its media space. Bright side: At least Roku now says its system will be ready for Game of Thrones.
"Put your reasonableness pants on"... That's what a judge just told Elon. And that was the least concerning issue for Tesla shareholders. They were more worried about its production report showing 63K Teslas delivered last quarter — a 31% drop from the previous quarter. Blame how long it takes to ship cars to China and Europe, and (maybe) less demand from buyers.
No good deed goes unpunished... Boeing decided to pour more resources into figuring out what went wrong with its 737 Max jets. Humanity likes that. But shares fell Friday because it means Boeing's cutting production of those jetliners by 20% from 52 to 42 per month.
Swipe
Bumble launches physical magazine — Its future IPO differentiator
Big first move... The dating app where ladies initiate, Bumble already revealed its IPO interest last fall. Now it's just launched Bumble Mag: A 100-page, coffee-table worthy, lifestyle advice-packed, physical magazine (remember those?). Our favorite numbers from the Mag:
- Issue #1: Bumble advisor Serena Williams quilled a story, with interviews from female founders like Man Repeller's Leandra Medine.
- 50M: Bumble's total userbase (who can request a copy of the mag in-app).
- 2: Pull-out posters in the mag that can be used as backdrops for new profile pics in the dating app.
Online just defined the relationship with offline... After digging into Bumble Mag, we were shocked at the number of digital brands with a thing for analog publications. In an app-first era, disconnected engagement now drives connections with digitally-native brands:
- "Wooly": Mattress-in-a-box pioneer Casper explores "comfort, wellness, and modern life" for $12 per magazine.
- "Here": Suitcase icon Away is on issue #7 of its travel print.
- "Grow": Yes, Facebook has a quarterly magazine for business leaders who love "thought leadership," "synergies," and buzzwords.
- "Airbnb Mag": That Wes Anderson-inspired movie theater apartment in Ontario? Airbnb curates its most obscure experiences at $18 for 6 issues.
This is Bumble's anti-Tinder strategy... Match Group dominates online dating with over 45 apps (including Tinder and Hinge). Bumble CEO and founder Whitney Wolffe is open to IPO, and knows a lifestyle brand is Bumble's differentiator — Its "Hives" (physical Bumble clubs for talks, socializing, and networking) were part of that strategy. So is its Mag.
Scoreboard
The 1st quarter earnings season kicks off Friday (with one worry)
It's the most wonderful time of the year... Happy earnings season, as companies give the gift of their financial and strategy updates, starting with big banks (Wells Fargo and JPMorgan). But this season's different — Slowing global economies and shrinking impacts from 2017's US tax cut have investors worried about the first quarterly profit decline in two years.
2018. Good year. Maybe too good... The huge tax cut passed in December 2017 boosted 2018's profits for S&P 500 companies by 20%. Twenty-percent (that's crazy strong growth). Analysts aren't getting the same vibes for 2019. They predict first quarter profits will fall by 3.9% compared to last year.
Don't be shocked by profit shrinkage... Companies already showed their cards — Many CEOs have recently warned us through "guidance," a heads-up on what to expect. And 73% of guidance lately has been simple: Profits will be less than last year. Walgreens did it just last week, and its shares are down 14% since.
What else we’re Snackin’
- Work: How to write an email with military precision
- Life: 26 things we didn't know Google Calendar could do (just used #2)
- Money: An NFL player's "Life 101" money advice classes
- Venture: "The Anti-Portfolio" — The Venture Capital firms that passed on Lyft, Facebook, and Snapchat
- Crypto: 4 tax tips for filing your Bitcoin moves
This Week
- Monday: Pinterest begins its IPO roadshow.
- Tuesday: The first quarterly earnings report for Levi's since its IPO. Israel's election.
- Wednesday: Earnings from Bed Bath & Beyond and Delta. The European Union holds a last-minute summit on Brexit.
- Thursday: Earnings from Rite Aid. India's (36-day) election begins.
- Friday: Earnings from JPMorgan and Wells Fargo. Brexit's scheduled to happen (with or without a deal).
Disclosure: The author of this Snacks owns shares of Roku and Tesla.
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