Hey Snackers,
Pet food company Pedigree wants you to foster a pup… in the metaverse. Its Fosterverse lets Decentraland property owners foster avatars of real rescue dogs, and (hopefully) help them in real life too.
The S&P 500 ticked down yesterday after a raft of earnings, but was still on track for its best January since 2019. Tesla unveiled strong numbers after hours. Today all eyes are on fourth-quarter GDP. The US economy’s expected to have grown last quarter, despite big rate hikes.
Google’s bread-and-butter ad biz… could be toast. This week the Department of Justice filed an antitrust suit targeting Google’s golden goose: advertising. The goal is to break up its digital ad biz, which makes up 80% of the search leader’s sales. The suit alleges that Google abuses its role as one of the largest buyers, sellers, and brokers of digital ads and hurts competition.
Google can buy itself flowers… but it’ll need to buy lots of lawyers, too, to deal with regulatory break-up tensions. This suit isn’t the only legal drama Google’s dealing with: in 2020 the DOJ filed a suit targeting its search dominance (think: how it’s the default in Safari). That case is expected to go to trial in September. Google’s facing three additional antitrust suits from state AGs. Oh, and in September the EU fined Google $4B after ruling it had broken competition rules — the EU’s second win in a trio of cases.
Tech’s biggest threat isn’t deceleration… it’s regulation. Growth slowdowns have been dominating headlines. But while macro trends can be temporary, regulatory crackdowns change a biz forever. Scrutiny has intensified in recent years: the FTC’s suing to block Microsoft’s $75B Activision acquisition, and it slapped Meta with two antitrust suits. The DOJ’s investigating Apple, while the EU has opened cases against Meta, Google, and others. Meanwhile, President Biden has urged lawmakers to rein in tech titans with legislation.
Glancing at the news... the job market looks rough — especially for tech workers. More than 57K layoffs were announced in the tech sector this month alone: IBM said yesterday it would cut nearly 4K jobs, Microsoft axed 10K, Salesforce said goodbye to 8K, and Amazon laid off 18K. Before that, Meta and Snap had let go of a combined 12K+ employees.
Dominating your LinkedIn feed… While tech layoffs turn heads, they pale in comparison to the jobs added during the industry-wide pandemic hiring spree. Google, which just laid off 12K employees, had added 37K jobs over the past year alone. California, where many tech cos are headquartered, gained 16.2K nonfarm payroll jobs in December, and the unemployment rate in the greater San Francisco area sat at just 2% last month. Meanwhile, Chicago is working hard to recruit laid-off foreign tech workers.
The tech market ≠ the job market… The "information" sector employs only 2% of US workers. Despite doom-and-gloom headlines, the overall unemployment rate is at historic lows and economists aren’t worried — so far. Just this week: Walmart, America’s largest private employer, said it's upping its minimum wage for store staff to retain and attract workers in a competitive labor market. We'll see whether that strength held up into the new year when January's employment numbers drop next week.
Authors of this Snacks own shares: of Apple, Amazon, Google, Microsoft, Snap, Tesla, and Walmart
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