Hey Snackers,
“Touching base” with your coworkers is getting literal: as MLB attendance declines, the Seattle Mariners hosted a “Work from the Ballpark” day featuring WiFi access, lunch, and in-park café seating. All 150 of the $50 WFB passes sold out.
Stocks inched up yesterday after Tuesday’s wipeout, with the Nasdaq gaining 0.7% after its worst day in two years.
Googling "how to delete apps"… Yesterday the European Union ordered Google to pay a massive $4B after the tech titan lost an appeal challenging an antitrust ruling. Back in 2018, the search giant was fined $5B over accusations it forced manufacturers to preinstall Google apps (think: Chrome, Search) on Android phones. FYI: about 70% of smartphones in Europe run on Google’s Android.
The EU’s antitrust arsenal… is stacked. Earlier this year, EU policymakers approved laws aimed at regulating tech juggernauts. Under the Digital Markets Act, companies can be fined up to 10% of their global revenue for breaking the rules — and up to 20% for repeat offenses. It could all add up for techies caught in the crosshairs:
“Hot Antitrust Summer” may be over… but a chilly antitrust fall may be dawning. Antitrust crackdowns abroad could push policymakers to increase pressure in the US, where tech regulation has largely stalled. It’s already starting: yesterday California regulators sued Amazon, alleging it prevents merchants from offering lower prices through competitors’ sites.
It’s BB szn… Big businesses are buying back shares by the boatload. This past week, Comcast, Johnson & Johnson, T-Mobile, UBS, and Starbucks all announced plans to buy back billions worth of their own shares. Refresher: Some companies regularly buy back shares to boost prices and reward investors (think: fewer available shares + similar earnings = higher earnings per share). Two reasons for the buyback bonanza:
Buyback brouhaha… Buybacks have boomed in recent years. In the first quarter of this year, S&P 500 buybacks hit a record $281B (though the index itself had its worst performance in years). Biden’s 1% tax is projected to raise $74B in the next decade, but critics say the tax will reduce investment and innovation and hurt investors. Over the past 20 years, big buybackers have outperformed others by 60%.
The big buyback era probably isn’t ending… because the benefits still outweigh the costs. Experts say buybacks are unlikely to disappear, since a tax would have to be 10% to persuade companies to ditch buybacks altogether. Apple, Alphabet, Meta, Microsoft, and Bank of America — the “buyback monsters” — accounted for 25% of all buybacks in the past year, and they’re likely to keep splurging on themselves.
Authors of this Snacks own: ethereum and shares of Google, Apple, Microsoft, Walmart, Amazon, Starbucks, Uber, and Netflix
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