Hey Snackers,
We know you love Snack Facts. So in honor of Black History Month, we'll be featuring facts and stories covering the intersection of race, finance, and the economy. Have a fact to share? Hit us up on Twitter at @RobinhoodSnacks.
Stocks spiked yesterday after some strong earnings, and the S&P 500 closed out its best January since 2019. Now, all eyes are on the Fed, whose expected rate announcement today should give clues about future policy.
When shuffle plays your fave song… Bingo. Spotify shares popped 12% yesterday after the Swedish streamer reported expectation-beating quarterly revenue and upbeat user growth. Spotify had its largest spike ever in monthly active users, with listeners up 20% to a whopping 489M. Ad-free paid subscribers jumped 14% to 205M.
Put it on mute… Spotify said its big growth was driven by podcasts. But big pod investments have also fueled big losses. ICYMI: Spotify has splurged $1B+ on pod-related purchases like The Ringer and Parcast, plus exclusive shows like “The Joe Rogan Experience” (reportedly for $200M+) and “Call Her Daddy” (reportedly for $60M). Pricey pod-vestments fueled growth, but also burned a hole in Spotify’s pockets.
“Growth at all costs” comes at a cost… and many aren’t willing to pay it anymore. In this uncertain economy, the focus has shifted from supercharging growth to cutting costs and maximizing profits. Ek summarized it thus: “You go for growth first and then you seek efficiency. Generally, you will see us focus on efficiency… not just growth at all costs.”
Waiting 30 mins for the McRib… worth it. McDonald’s served up hearty earnings after more fast-food lovers headed to the Golden Arches last quarter. McD’s same-store sales in the US jumped 10%, thanks in part to the “farewell tour” of its cult fave McRib. Abroad, same-store sales spiked ~13% — and make up over half of all quarterly revenue — thanks to stronger demand in countries like the UK, France, and Germany.
Unwrapping deals… Inflation’s finally cooling, but many consumers are trading down from full-service restaurants as budgets stay tight. Nearly a quarter of consumers say they’ve turned to fast-food since it can sometimes be cheaper than cooking at home. But not all combos are created equal:
Consistency is king… but surprise is queen. McDonald’s has been relatively consistent with its low prices and classic McMenu items, but it has also sprinkled in spontaneity with buzzy promos. While rivals have leaned on higher prices to raise revenue, McD’s leans on cult faves and fresh tastes to juice demand. Last year, McD’s celeb-inspired meal collabs with stars like Travis Scott, BTS, and J. Balvin were key in driving digital sales.
🖊️ Like taking a Sharpie to a digital dollar bill…
The OG crypto is playing catch-up. A recent addition to bitcoin lets people add text, images, or video to individual “satoshis” (think: the smallest unit of BTC). It essentially creates bitcoin-native NFTs. Dubbed "ordinals," the new protocol and its on-chain digital artifacts have sparked a mini controversy, with some in the crypto community saying they'll drive up transaction fees.
Authors of this Snacks own bitcoin and shares of: GM, Snap, Match and Exxon
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