Hey Snackers,
Gambling. It's not legal in New York — so New Yorkers are hopping on the train to Jersey, betting on the platform, then riding back to Manhattan in time for dinner.
Markets dipped Tuesday on worries of fresh US/Iran tension — Today, they may react to Iranian attacks on two US bases in Iraq.
As you Musk know... Tesla shares hit full speed lately — they're up 38% in just the last month. Now Tesla's officially become the most valuable American car company in history. Here's how that value got calculated:
Here's the crazy thing... Tesla's 2019 profits and car deliveries pale in comparison to GM and Ford's:
Investors care less about today, more about tomorrow... Stocks can rise as shareholders believe a company's profits will grow in the years to come. Tesla's cars scream "future" (electric + cyber), while Ford and GM's preach the past (trucks/SUVs + gas). Investors think 17-year-old Tesla has better profit potential than 112-year-old GM and its even older Ford brother.
We've got no beef with pork... Impossible Foods, the privately-held alt-meat startup and Beyond Meat rival, just launched a new plant-based meat: Impossible Pork. At the risk of not saying pork enough times, Impossible's not porking around here:
"The most significant science project and business endeavor in the world"... That's according to Impossible's CEO, whose environmental concerns back his boasting. Pork is Earth's #1 consumed meat, and Impossible thinks beef is so 2019. Plant-based meatopians love to remind us: pea/soy burgers require 99% less water, 93% less land, and create 90% less greehouse gas than their real beef brethren.
Impossible chose research over production... Resources are limited, and companies need to choose where to invest their time/cash. Impossible chose to focus on a new product (pork) rather than more of its existing product (beef). Now, rival Beyond Meat may snag that lucrative plant-based spot in McDonald's burger buns. That's why Beyond shares jumped 12% even though Impossible revealed a new product and partnership.
Classic case of rich company, poor stock… Over the last 3 years, Goldman Sachs’ shares have barely budged. Meanwhile, its big bank buddies pop bottles — JPMorgan and Bank of America stocks both rose over 50%. So here’s Goldman’s self-diagnosis: severely un-transparent corporate reporting structure. Now it’s changing:
This is how bad it got… Want to know how Goldman’s Apple Card did last quarter? Good luck. Goldman's consumer banking performance was buried in its “Investing & Lending” division, along with a bunch of big loans and venture investments. Like a box of chocolates, investors couldn’t tell what was inside Goldman behind all that corporate structure scar tissue.
Investors reward transparency… and that’s why Goldman’s transparent-izing itself. This new corporate structure could reveal to investors critical Goldman insights — like how’s its 3-year-old, millennial-obsessed, digital consumer bank Marcus is actually doing. Investors are more down to reward Goldman stock if they can actually see what’s in it.
Disclosure: Authors of this Snacks own shares of Beyond Meat, Tesla, Uber, JPMorgan Chase, and Starbucks
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