Hey Snackers,
It’s “The Suite Life on Deck” IRL: a luxury cruise ship will let residents live on the sea permanently. A 237-square-foot studio starts at $1M, plus a $2.6K/person monthly "living fee.” Seasick.
Stocks were back in the red yesterday with the Dow notching its lowest close in two months. Energy prices tumbled after the US narrowly avoided a major rail strike. Despite steaming-hot ’flation, retail sales grew 0.3% last month (largely thanks to car purchases).
5 fits and a pair of combat boots… Chinese shopping app Shein is expanding its US footprint as sales boom in its #1 market. The online-only retailer has thousands of trendy fits at ultralow prices (think: $10 wool pants). Shein was last valued at $100B, and in Q2 it surpassed Amazon as America’s most downloaded shopping app.
Not-so-fast fashion… Social media has supercharged demand for new fits to fill the feed. But for all of Shein’s popularity, its shipment times have lagged fast-fashion standards. While rivals like Zara, H&M, and Amazon can deliver in two biz days, Shein packages can take up to two weeks (they all come from Asia). While ETAs haven’t dulled Shein’s shine, delays could be getting in the way of its next big venture:
The price must be right, but so does the time… To command higher prices, Shein can’t just be a fast-fashion brand — it has to be a fast-delivering fashion brand. By setting up shop where its top customers are, it can cut down delivery times by three to four days.
Just went Photo-shopping… picked up a multibillion-dollar startup. Adobe, the Microsoft of the creative world, agreed to buy design-software company Figma for a cool $20B — its largest acquisition by far. Figma’s cloud-based software helps engineers and designers collab on web interfaces in real time (think: a digital whiteboard). Investors weren’t impressed:
Doing some Acrobat(ics)… Adobe has snatched up companies, including Workfront ($1.5B) in 2020 and Frame.io ($1.3B) in 2021. Previously, its largest splurge was Marketo in 2018 ($4.7B). Now Adobe is making a purchase four times that size at a time when dealmaking has slowed big time. See: inflation, econ uncertainty, volatile markets. Adobe says Figma’s customers will expose it to a new user segment and a total addressable market of $16B.
When under threat, you might overstretch… Adobe’s splurge may be more of a need-driven move than a smart buying opportunity. Figma competes toe to toe with Adobe’s XD program. Instead of sparring with it, Adobe’s eating it. Investors worry it’s overpaying out of desperation to quash competition, and yesterday the stock had its worst day since 2010.
🤖 Techy… The ethereum Merge succeeded, moving the chain from proof of work (energy hog) to proof of stake (efficient). The switch also means ETH holders can earn coins via staking, which incentivizes investors to scoop up ether.
🤔 Sus… South Korea issued an arrest warrant Wednesday for Do Kwon, the founder of failed stablecoin TerraUSD. The coin went to near $0 in June — wiping out $42B of investors' money — and investors accused Kwon of fraud.
🤹♀️ Quirky… Out with Picasso, in with the punks. NYC’s MoMA plans to sell $70M worth of paintings and sculptures to fund a digital-art gallery (picture: framed NFTs). Renoir and Rodin will compete with Bored Apes.
Authors of this Snacks own: ethereum and shares of Amazon, and Microsoft
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