Mood: watching Elon and Miley on SNL [DigitalVision via GettyImages]
Hey Snackers,
We hope your mothers enjoyed some nice flowers, brunches, and Mother's Day appreciation cards. Elon Musk's mom apparently received Dogecoin.
Tech stocks fell for the week, while the Dow and the S&P 500 soared to fresh highs. Investors were relieved by the Fed's pledge to continue its easy monetary policy — especially after that bummer April jobs report.
Much wow, such coin... Crypto "mainstreamification" has reached a level that goes far beyond just Bitcoin. 14% of the US population now invests in cryptocurrency, and American crypto owners could double in 2021. This year, Bitcoin has nearly 2X'd in value – and altcoins have seen even bigger rallies: Ethereum is up ~400%, and Dogecoin has soared 13,000%. According to a Gemini survey: two-thirds of US adults who don't own crypto are "crypto curious.” ~60% of people who do own crypto rate their knowledge level as low.
Not just Elon... A few factors seem to be contributing to "coin crowding" — aka: people pouring into various crypto coins.
“Coin crowding” is here... In January, Bitcoin made up 70% of total crypto value (which was $1T). As altcoins like Doge and Ethereum have rallied, Bitcoin now makes up less than 50% of crypto market cap — which has doubled to over $2T. Now, smaller altcoins like DigiByte, VeChain and SafeMoon are gaining traction. But the Fed just warned that asset prices are vulnerable to significant declines if investor sentiment shifts. And it's possible that out of hundreds of coins, only a few might survive over time. It's a new, culturally-driven phenomenon with high volatility risk – and the long-term outcomes are still unclear.
Mickey's back... Disney reports earnings on Thursday, two weeks after The Happiest Place on Earth reopened in CA. For a year, Disney has been a tale of two earnings: sales of its profit puppy Parks & Experiences plunged, because the only park we experienced was in a car. Meanwhile, streaming thrived thanks to Disney+, which hit 100M subs (half a Netflix). Investors want to know if Mickey can keep up strong subscriber growth.
Google Meet me in Miami... Airbnb doesn't do room service, but it's worth more than Marriott and Hilton combined (its IPO was a bigger blockbuster than Wonder Woman). Airbnb was resilient last year, despite the travel-pocalypse. US travel is picking up, and the work-from-anywhere life has you Zooming in from forest cabins. Airbnb's "single priority" now is prepping for a travel rebound. In Thursday's earnings, we'll see if that's panning out.
Bad timing... Last week, Pfizer and Moderna reported chunky Covid vaccine earnings. Also: the Biden admin supported a proposal to temporarily waive IP protections for Covid-19 vaccines. Vax-makers' recipes would be public. Pharma companies say that won't help curb rising global Covid cases short-term, because of production challenges. Pfizer's CEO said patent-sharing would discourage innovation. On Friday, EU countries pushed back on the proposal, too.
Broke the streak... After falling for nearly 12 months straight, the US unemployment rate unexpectedly jumped to 6.1% in April. 266K jobs were added last month — economists were expecting 1M (womp). Millions of Americans are unemployed, but companies in industries like construction, manufacturing, and restaurants still can't find enough people to hire. Potentially holding workers back: child-care burdens, Covid fears, and boosted unemployment benefits.
Authors of this Snacks own: Bitcoin and shares of Disney
ID: 1640847