Hey Snackers,
Our thoughts go back to 18 years ago. September 11th is also a day of service — here are 4 ways to act on that.
Markets were distracted Tuesday, scrolling through blog updates on Apple's big product event as stocks nudged up.
Today's Snacks: Apple unveils iPhone 11 — Ford gets downgraded to "junk" — NextDoor is the anti-Facebook social network.
The Touch screen. The no-headphone-jack. Siri... Apple has evolved over the course of its annual new iPhone product unveils. The stage and dark lighting haven't. Here's what we get with the new iPhone 11:
Forget iPhone — Apple TV+ is the star... and it arrives Nov. 1 at a ridiculously low-priced $4.99/month. Netflix ($12.99), HBO Now ($14.99), and even Disney+ ($6.99 starting in November) aren't happy about this price war aggression. Tim Cook also showed off original Apple TV+ shows (there aren't many of 'em, but they star Steve Carell and Reese Witherspoon) and a $4.99/month video game "Arcade" pass.
Apple's thinking about the whole customer... New colors, a 3rd camera, and the A13 chip aren't forming fanboy lines outside glass-plated Apple Stores anymore. So it's focusing on prices: Lower some prices, offer some freebies, and hope to make $$$ on sales every few years (with monthly service subscriptions in between):
An $11B makeover... Ford wants one. It's all part of the car company's aggressive turnaround plan to become more sexy, electric, and self-driving. So to pay for the new look, Ford issues billions in IOUs (bonds). Before you invest in bonds, a credit ratings agency jumps in:
Ford was created in 1903... But this situation goes back to 2009. The Big 3 Detroit car companies needed a bailout — except Ford. It even gave its blue oval logo as collateral for a loan to stay bailout-free. Since surviving the car-pocalypse, Ford's bonds have been rated "investment grade." Then it fell behind rival GM's innovation and Ford is now worth less than Tesla. Junk happens.
"Junk" makes almost everything Ford does more expensive... Even though Ford's enjoying huge profits ($22B over the past four years), the credit ratings agencies are worried about where Ford will be 10 years from now. Because of this downgrade, investors will demand a higher interest rate from Ford because its debt is considered riskier.
Her majesty, queen of internet... Venture capital icon Mary Meeker just handed an internet company a $170M check. Must be nice, Nextdoor. The SF-based app is now worth $2.1B as it scales across ~~continents~~ neighborhoods. By connecting you with humans who live nearby, it introduces people online who might meet up offline.
Who might acquire Nextdoor?... It's selling shares at a healthy unicorn valuation and could IPO someday, like its roll-ish model Facebook did. Or business could turn south and it could fail. Or... it could get acquired. Here's how Nextdoor could have strategic value to a bigger buyer.
Tweet us who you think could acquire Nextdoor @RobinhoodSnacks
Disclosure: Authors of this Snacks own shares in Alibaba and Amazon
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