Hey Snackers,
The banker who drops bangers is back. Goldman Sachs' CEO David Solomon, aka DJ D-sol, opened for the Chainsmokers at a Hamptons party (casual). Crowds gathered to watch DJ D-sol spin his bankable EDM tracks. Now the concert is being investigated for overcrowding. Doesn't get better than this, folks.
Tech stocks led the market surge yesterday, all while Big Tech CEOs were getting grilled by Congress. Also market-moving: the Fed decided to keep interest rates low to continue stimulating the economy. Earnings from Amazon, Apple, and Google drop today.
Major plot twist... Three months ago, AMC banned all Universal movies from its theaters after some Trolls drama. TLDR: Universal made bank releasing Trolls World Tour direct to streaming, and said it'll do both digital and theatrical releases going forward. AMC reacted by excommunicating Universal. Now the two have struck a game-changing truce:
An Oscar-worthy win for streamers... and a loss for theaters. The window has long been key to theaters' sales. Even though the first three weekends make up the bulk of those, slashing the window from 2.5 months to 2.5 weeks encourages people to wait for digital releases (manageable FOMO).
This could become the status quo... AMC is the world’s largest theater chain and Universal is a major studio. Others could follow their major league window-slashing. By the time the pandemic is over, homebound consumers might be used to saving money by watching new movies at home. Short windows might keep getting shorter (or even become non-existent).
Grab the popcorn... The latest season of Big Tech vs. Congress dropped yesterday. Besides a few screaming matches and some technical difficulties, important questions were raised around anti-competitive activities of Big Tech companies. Highlights from the stars:
Grab the PR flashcards... All four CEOs took the stance that they do face real competition, and that everything they do is to improve products for their customers. Overall, the whole thing was often Congresspeople making their statements without actually listening to answers, and CEOs trying to waste as much time as possible by circumventing questions. Niiice.
Will anything actually come from these Congressional TV dramas?... The biggest thing would be a change in competition laws. Overall though, these hearings have rarely affected regulation. Buuut: a rare bipartisan unity clearly emerged around hostility to Big Tech (though the reasons varied). This hearing likely serves more as a slap on the hand than a game-changer.
Varsity Blues... Meal kit company Blue Apron has been sitting on the bench as its rival HelloFresh scores all the points. It was worth $2B when it IPO'd in 2017 — now it’s worth just $160M. Then the pandemic lifted the tide for all at-home-cooking ships, and Blue Apron finally got its shot in the game. It delivered:
But no one was cheering... Sigh. Despite the profit win, Blue Apron stock plunged 15% because:
Blue Apron still has a shrinkage problem... It didn't make a profit because it's growing — it made a profit because the highly unusual pandemic made home-cooking spend surge. Despite its higher ARPU, Blue Apron's customer count is actually getting smaller. It now has 396K customers, down from 449K last year. Investors think the profit was a one-hit pandemic wonder. Since investors are all about future growth, they plunged the stock.
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Disclosure: Authors of this Snacks own shares of Amazon, Apple, Spotify, and Shopify
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