Hey Snackers,
This may be the best summer job yet: British wine retailer Majestic says it’ll pay someone to determine whether wine really tastes better on vacation… by drinking wine… on vacation.
Stocks lost their early gains yesterday after Nvidia’s profit warning, ending the day barely changed. July’s consumer inflation numbers drop tomorrow, and investors have their fingers crossed for signs of deflation, which could calm the Fed’s rate-hiking crusade.
Never disappoints on the quirky decks... Japanese investment giant Softbank is famous for its simple but poetic earnings decks, which include pictures of unicorns falling into the "Valley of Coronavirus" (slide 50) and a powerful slide that just says "Many Regrets" (11). To understand the mood of Softbank's latest earnings, check out this frown on slide 4.
The decks are still iconic... but Softbank’s investments have soured. Rising interest rates have crushed high-flying valuations, while China’s regulatory crackdown on tech pummeled Softbank’s investments in Asia. Now Softbank is selling to raise cash and soothe losses:
It can be hard to see the downside… when the upside is so in your face. Softbank was riding high when tech was booming. For 2020, it posted a record $46B profit — the highest for a Japanese company, and $5B more than Google earned that year. CEO Masayoshi Son said he’d become "somewhat delirious" when prices soared, and regrets all the $$ he funneled into startups. Now Softbank is imposing discipline to weather the markets’ ups and downs.
Forget the aux cord… Soon you’ll be able to control music in Lyft rides without nervously asking your driver — but you’ll have to watch ads. Yesterday, Lyft announced Lyft Media, a new unit focused on advertising. Ride-hailing demand has roared back to life, and Lyft wants to monetize users’ eyeballs:
Wienermobile ETA… Two years ago, Lyft bought Halo Cars, a startup that makes car-top screens. Since then, Lyft has grown its marketing biz by putting ads on car roofs, bike-sharing docks, and in its app. Think: Oscar Mayer Wienermobiles moving on the Lyft map instead of a car. It’s good timing to appeal to advertisers:
The route less traveled by may make the difference… While Lyft has stayed narrowly focused on rides, Uber has grown its Eats biz into one of the largest food deliverers (and has expanded to everything-delivery). But now Lyft could capitalize on its strength: riders’ eyeballs. While Uber also sells ads, it hasn’t built an ecosystem like Lyft’s. But this month Uber said it planned to expand its ad biz — and that it could hit $1B in revenue by 2024.
Authors of this Snacks own: shares of Nvidia, CVS, IAC, Uber, Amazon, and Google
Correction: An earlier version of this newsletter misstated that the consumer price index was dropping on August 9, 2022. It was set to drop on August 10.
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