Hey Snackers,
Can't make this up. The Winklevoss twins of Facebook-ish fame have been busy running their own cryptocurrency exchange, which just made its 1st acquisition — a startup run by another set of twins.
Markets dragged down because Home Depot botched its own virtual renovation (more on that below).
Home Depot renovated its website... Looks terrible. The Atlanta-based chain's sales rose 3.6% last quarter — that's less than what investors expected, so shares fell 5%. Plus, Home Depot downgraded its outlook for the rest of the year. Strange, because yesterday we also learned that 1.3M homes began construction in the US last month. That should mean big Home Depot businesses.
Windows, not websites... One big reason for the miss was Home Depot's botched web development renovation (not exactly its specialty).
Home Depot's performance is ruled by an 80/20 rule... 80% depends on macro issues it can't control: the housing market, tariffs, and the price of lumber. The other 20% depends on HD's actual performance. Those percentages aren't exact, but you would've expected more from the current situation:
"The Warby Parker of Warby Parker"... is Warby Parker. The OG direct-to-consumer brand basically created the cut-out-the-middleman digital-first concept 9.5 years ago with eyeglasses. Then it noticed something: 40% of its customers also wear contact lenses. So it's launching Scout, its own brand of contact lenses.
Close one eye and read the letters on the chart... If you're still squinting to understand why Warby created Scout, just look at the prices — they un-blur the broader strategy:
We're calling this the "Sequel Strategy"... and we noticed it's trending with Warby's fellow direct-to-consumer unicorns. With a Sequel Strategy, companies spinoff their 1st long-lasting product with new shorter-term ones to snag consistent revenue from the same customers. Here's who's doing it:
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