…and Shein's factory influencer flop
| Do not collect $200 (Leonardo Munoz/Getty Images) | |
|
|
Yesterday's Market Moves | | Dow Jones
34,122 (+0.80%) | S&P 500
4,396 (+0.45%) | Nasdaq
13,591 (-0.00%) | Bitcoin
$30,415 (+1.08%) |
| Dow Jones
34,122 (+0.80%) | S&P 500
4,396 (+0.45%) | Nasdaq
13,591 (-0.00%) | Bitcoin
$30,415 (+1.08%) |
|
|
|
Hey Snackers, Brands should be careful what they wish for: McDonald's newest dessert, a limited-edition purple shake inspired by its Grimace mascot, went viral with people pretending to die while slurping sips. No word on if the Hamburglar robbed their graves. Stocks were mostly up yesterday, with a strong showing from big banks. Meanwhile, the Commerce Department said the US economy grew substantially more in the first quarter than previously thought. BTW: US markets close early on Monday and are closed for July Fourth. We'll be back in your inbox on Wednesday. Till then, happy Independence Day! | |
|
|
Advertisers push back against Google after a report accused the tech titan of faulty video-ad placements | 3-minute vitamin ad… no skip button. Google is facing intense scrutiny after an ad-analytics biz said the Silicon Valley giant repeatedly broke its own policies for video-ad placements. FYI: Google's YouTube alone takes in 8% of the $47B spent yearly on US digital ads, and name-brand advertisers shell out big bucks for prime YouTube and webpage placement. But this week research firm Adalytics dropped a bombshell report alleging that Google has violated the fine print of its video-ad deals 80% of the time — which potentially costs advertisers billions. ICYMI: The report said the ads ran in muted, auto-playing formats or appeared on undesirable webpages (like: clickbait). VIPs: Adalytics said ads from Macy's, Disney+, and American Express — plus gov't agencies like Medicare and the Social Security Administration — were possibly affected. Google disputed the findings in the report, saying it "makes many claims that are inaccurate." But that hasn't stopped some businesses from asking for their $$ back.
Ad dilemma… While ad-placing platforms like Meta and Google have rules against deceptive ad practices, it's an ongoing battle. Last year Google said it blocked (or removed) 142M ads that broke its misrepresentation policy (picture: false advertising, brand impersonation). And last year Meta got fined $414M after EU regulators said it forced users to accept personalized ads. |  | THE TAKEAWAY |
| One spark can start a fire… and Google has its eyes on several. As recently as 2021, advertising made up 80% of its revenue. Now sales have dropped for the past two reported quarters. Moreover, EU regulators are calling to break up Google's ad biz entirely. The build-up of problems could threaten Google's ad reign just as the industry slows. Growth in digital-ad spend is forecast to dip below 10% this year for the first time in 14 years. | |
|
|
Shein's sponsored influencer trip backfires as consumers call out fast fashion's labor record | #Sponcon fail… Shein invited six influencers to its factory in Guangzhou, China, where the social-media stars posted content praising the fast-fashion giant's working conditions. The posts went viral as TikTokers called out the "vacation" as a PR gimmick that glossed over alleged labor-rights abuses. Concerns: Last month US lawmakers asked for an independent audit of Shein over allegations that the retailer relies on Uyghur forced labor. Ongoing issues: One investigation said Shein employees worked 18-hour shifts in unsafe environments for as little as $20/day. Failing score: The Fashion Transparency Index, which measures brands' sustainability and working conditions, rated Shein 2.2%... out of 100.
Fast fashion's factory problem… The $106B fast-fashion industry makes its money by quickly turning #trends into affordable 'fits. Shein's not the only fashion co that's gotten supply-chain side-eye. In 2013 a Bangladesh clothing factory collapse killed more than 1K people. Forever21 landed in hot water after accusations that it underpaid workers. Now Zara and Uniqlo are being sued in France over allegations related to Uyghur forced labor. | | THE TAKEAWAY |
| You can't influence your way out of structural problems… The internet didn't buy the squeaky-clean narrative Shein's influencer field trip presented, and now conversations about the brand's labor practices dominate its hashtags. As it reportedly prepares to IPO, Shein may benefit from focusing on its supply chain over its socials. | |
|
|
| 🤔 Sus… Binance founder Changpeng "CZ" Zhao, who apparently splits time between Paris and Dubai, has reportedly been sticking to Dubai. French authorities were recently said to be investigating Binance in connection with money laundering. 🌶️ Spicy… FTX is actively working to relaunch its international crypto exchange. If successful, a reborn FTX exchange would find a stricter regulatory landscape reshaped by FTX's own implosion last year. 💰 Spendy… MicroStrategy said it bought nearly $350M worth of bitcoin over the past two months. BTC is up 82% in the past six months as regulators crack down on altcoins like solana and matic.
| |
|
|
What else we're Snackin' | Wagon: Polestar said it'll adopt an EV-charging standard developed by Tesla. With Ford and GM announcing similar moves, more EVs will soon have paid access to Tesla's charging network. Scrape: A lawsuit filed in San Francisco federal court says OpenAI stole data from the web to train its viral ChatGPT. The tool started a genAI gold rush with investors pouring billions into startups. Swoosh: Nike reported earnings yesterday, notching a $1B profit (a decrease from last year). The apparel industry's seen tighter margins as shoppers pull back on discretionary buys and manufactures up ad spend. A+: The Fed said big banks (think: JPMorgan, Wells Fargo) passed its annual "stress test." Bank stocks climbed following the news, which suggested the industry is resilient despite earlier midsize-bank failures. Strike: Port workers on Canada's West Coast, who handle $225B in cargo yearly, voted to strike starting tomorrow. One issue: port automation. A strike could affect US automakers and Midwest manufacturers.
| 🍪 Thanks for Snacking with us! Want to share the Snacks? Invite your friends to sign up here. | |
|
|
Snack Fact Of the Day | Wall Street intern pay has jumped 20% this year | | |
|
|
Friday | Authors of this Snacks own bitcoin | |
|
|
Sherwood Media, LLC produces fresh and unique perspectives on topical financial news and is a fully owned subsidiary of Robinhood Markets, Inc., and any views expressed here do not necessarily reflect the views of any other Robinhood affiliate... See more | |
|
|
