πŸ“² HQ Trivia. Back from the dead.

Tuesday, March 31, 2020 by Snacks
_Sneakily cleaning out Walmart's entire egg section_

Sneakily cleaning out Walmart's entire egg section

Yesterday’s Market Moves
Dow Jones
22,327 (+3.19%)
S&P 500
2,627 (+3.35%)
Nasdaq
7,774 (+3.62%)
Bitcoin
$6,438 (+8.22%)
10-Yr US Treasury
0.703%

Hey Snackers,

"Is she the most sensible person, or is she just a nutter?" A bemused onlooker referring to a British woman who went grocery shopping inside of a plastic zorb ball. It's one way to self-isolate... She was asked to leave before entering the candy aisle.

US stocks continued rising Monday on fresh optimism for a COVID-19 treatment.

Vaccinate

1. 1 billion COVID-19 vaccines: Johnson & Johnson plans human trials by September

The race to a COVID-19 vaccine... is heating up quickly. Healthcare giant Johnson & Johnson just announced a lead vaccine candidate for COVID-19, and expects to start human clinical trials by September 2020. J&J will then try to churn out over 1B doses of the vaccine by the end of 2021. The first batches could be widely available for emergency use by early next year.

  • A speed of light time-frame (in vaccine years): It usually takes around 6 years of research before a vaccine candidate is even considered for approval. This took less than 3 months.
  • J&J started researching in January, so the early 2021 batch-ready date is extremely ambitious. FYI, the Ebola vaccine was finally just approved in December β€” the virus broke out in 2014...

How is this even possible... An earth-shattering pandemic coupled with a looming global recession tends to push some limits. In other words, "the impediment to action advances action." That's why J&J and the US Dept of Health are expanding their partnership to commit over $1B to the vaccine's research/development.

  • Rapid Scaling: J&J will use some of this $$$ to quickly expand its global vaccine manufacturing capacity. 1B doses by the end of 2021 means going 0 to 100 (real quick).
  • Not-for-Profit: This is key β€” The vaccine will be sold on a not-for-profit price (to make it globally affordable).
THE TAKEAWAY

The biggest non-profit puppy ever?... J&J is just one of the many companies racing to develop a COVID-19 vaccine β€” the big difference from most others is that J&J's isn't for-profit.

Crack

2. Cal-Maine reports sunny-side up earnings β€” are eggs the new (perishable) TP?

I like eggs... Not just Debbie from Nickelodeon's "The Girls Room." America's largest egg producer, Cal-Maine, reported expectation-beating earnings β€” but sales actually fell 10% last quarter (that was pre-full on corona-conomy). Now it's warning that egg prices might get a little crazy as the pandemic intensifies, which would be good for Cal-Maine. On that note:

  • Egg sales soared 44% in America for the week ending March 14 (compared to last year). Americans are starting to hoard eggs as more cooking/baking goes on at home.
  • Retailers are ordering 6X more eggs than usual and paying extra to secure massive egg purchases β€” wholesale egg prices have jumped 180% since March 1.
  • Walmart is (Cal-Maine's biggest customer) and has had to implement shopper limits on egg purchases.

Wholesale price controls retail price... 90% of Cal-Maine's biz is selling eggs wholesale to big retailers like Walmart. After completing 22 egg-quisitions, it now produces around 1 of every 5 eggs you consume from hoarding destinations like Costco. The CEO is now eyeing the rising wholesale prices. Which could mean...

THE TAKEAWAY

Your morning scramble won't get pricier β€” until retailers say so... When demand for a product surges, your wallet might not feel it immediately (or at all). But Cal-Maine might raise prices on Walmart after the chain buys 6X more eggs than usual β€” then, Walmart may pass some or all of that added costs onto us consumers. Most retailers haven't. Yet.

Return

3. HQ Trivia is mysteriously back, during the best time possible for HQ Trivia

Viral app, shutdown app, resurrected app... The timeline of HQ Trivia's virtual life. After launching in 2017, HQ surged to App Store fame with cash giveaways, Black Mirror-like live setup, and host Scott Rogowsky. At its peak, it had 2.8M players on one game. Then people forgot about it. Back in Feb, we got word that the app was shutting down. Now, it's been resurrected β€” here's how it made a comeback:

  • The Message: On Sunday, those who still had the HQ app on their phones were notified via push notification that a new game would go live that night (like a surprise text from a forgotten fling inviting you to dinner).
  • The Return: HQ was acquired by a mysterious, anonymous private investor, according to The Verge. The app is officially back in business, and will start airing shows regularly (though the schedule still hasn't been confirmed).

Timing is everything... Because of social distancing, lockdowns, and "stay-at-home" orders, this is probably the best time for HQ to make a comeback. There's only so much scrolling you can do on Insta and Netflix while stuck at home β€” HQ provides an alternative fun distraction. Plus:

  • Live sports are cancelled, so people are looking for adrenaline-inducing live things to watch.
  • And that means no gambling on live sports either.
  • Our social interactions are limited, and HQ offers something vaguely social β€” there's a live comment section and you can play with your co-quarantiners.
THE TAKEAWAY

HQ Take #2 should probably try subscriptions... HQ version 1.0 monetized its users through ads, but now the fact that no one's shopping means companies are cutting back on marketing spend β€” the corona-conomy is creating an ad-pocalypse. If HQ could swing offering a $1/month subscription (while maintaining millions of users), it might be better positioned to grow and not shut down (again).

What else we’re Snackin’

  • Closed: Macy's will furlough most of its 125K employees after having to close all 775 of its stores (which include Bloomingdale's and Bluemercury).
  • Produce: Ford and GE plan to produce 50K ventilators over the next 100 days β€” the corporate giants are "working closely" with the gov to fulfill crucial demand.
  • Another: Yet another Carnival-owned cruise ship is facing a coronavirus outbreak β€” 4 people have died on the ship now anchored off the Panama coast.
  • Save: Airbnb is reportedly halting all marketing and most of its hiring β€” the cash-strapped company will likely also withhold employee bonuses as bookings plunge.
  • Strike: Instacart delivery workers plan to strike for extra pay and better safety measures β€” some Whole Foods employees are expected to stage a "sick out" for similar reasons.

Tuesday

Disclosure: Authors of this Snacks own shares of Walmart and Carnival

ID: 1135507

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