Hey Snackers,
The world’s next big boy band could be a Bored Ape group. A pair of Grammy-winning producers signed on to create music for an “NFT band” of cartoon apes. We’re expecting hits like “That’s What Makes You Fungible.”
Stocks had their worst day of the year yesterday after August inflation came in too hot. Tech led the plunge with the Nasdaq tanking 5%.
Seeing red… Stocks had a no good, very bad day after August inflation numbers came in hotter than expected. Lower gas prices helped slow the pace of inflation for a second straight month, but the TL;DR is that it’s still ridiculously high, with consumer prices up 8.3% from last year.
No rest for JPow… Before this bummer report dropped, investors were gaining confidence that inflation could be slowing for real (which could compel the Fed to cool its ’flation-fighting crusade). Now there’s a lower chance of a Powell pause (aka: a Pow-se).
Inflation’s a Grinch… The holidays are months away, but more than half of Americans are already stressed about buying gifts this season. While ’flation erodes spending power, rate hikes make borrowing pricier (think: credit-card debt). That could put a dent in major retailers’ biggest splurge season of the year.
Zoom sweats > Gucci-blazer rental… Rent the Runway is falling out of fashion as more users ditch designer rentals. RTR offers clothes from 800+ designers for one-time rental, monthly membership, and discounted purchase. Last quarter the “shared closet” biz notched record revenue of $76M and shrank its quarterly loss from last year. But that didn’t keep the stock from tanking nearly 40% yesterday.
Hangin’ by a thread… As consumer prices skyrocket, even trendsetters are cutting back on discretionary buys (think: new $2K Moncler puffer). Thanks to the rise of hybrid work, the number of Americans wearing business-formal fits has dropped by half since prepandemic. For companies like RTR that means shifting inventory to include more casual and social fits.
Past performance ≠ future results… Despite RTR’s record quarter, investors tanked the stock because they’re always looking to the future, and the future may not look as bright for retailers. Instead of splurging on new styles every season, consumers are saving by buying fewer outfits that are good for lots of occasions. That shift in shopping patterns is starting to squeeze results for retailers like Target and Amazon.
Authors of this Snacks own: ethereum and bitcoin and shares of Amazon, Apple, and Rent the Runway
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