…and the hangover "cures" biz is growing
| Pacifiers and onesies in the IRL cart (Randy Shropshire/Getty Images) | |
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Yesterday's Market Moves | | Dow Jones
35,417 (+0.24%) | S&P 500
4,555 (+0.10%) | Nasdaq
14,282 (+0.29%) | Bitcoin
$37,886 (+1.73%) |
| Dow Jones
35,417 (+0.24%) | S&P 500
4,555 (+0.10%) | Nasdaq
14,282 (+0.29%) | Bitcoin
$37,886 (+1.73%) |
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Hey Snackers, Spain's newest social-media celeb is a pink-haired model named Aitana — an AI model, that is. Aitana's designers said the AI-generated fitness influencer has earned them up to $10K/month in brand deals. She even posts stories of her aesthetic breakfast toast, like a real influencer. Stocks rallied after a Fed official suggested that America's central bank could (finally) be done with rate hikes. Oil prices jumped as investors waited to see whether OPEC+ would continue supply cuts at its meeting tomorrow. | |
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Part of Bed Bath & Beyond's biz returns as brick-and-mortar shops make a comeback | Back from beyond… Bed Bath & Beyond went under in April, but its baby-products retailer, Buybuy Baby — which had been a bright spot — is staging a comeback. BB&B sold off Buybuy Baby this summer after going bankrupt, and its future was as uncertain as a toddler's sleep schedule. Now Buybuy Baby's new owners have reopened 11 stores with plans for 100+ new US locations over the next three years (international expansion is also in the cards). Despite BB&B's bankruptcy, Buybuy Baby has reason to bet on brick-and-mortar: Take it for a stroll: Buybuy Baby's CEO said stores let shoppers test out products like strollers and cradles while getting help from associates. Buybuy more: He added that folks rack up bigger — and pricier — baby registries in actual stores versus online. If out of sight = out of mind, then in sight = in the cart.
Brick's back, baby… IRL stores are making a postpandemic comeback as retailers invest in physical presences to boost sales. In the US, retailers are on pace to open 1K net new stores this year. Wild stat: American retail real-estate availability hit an 18-year low of 4.8% last quarter, even as rent prices spiked. Online-native brands like Princess Polly and Casper have been opening up physical shops as well. |  | THE TAKEAWAY |
| Online, variety rules — IRL, specialty is key… People go to sites like Amazon and Shein for volume and variety, but a physical store that provided that same selection would be overwhelming (you'd be in a warehouse). Bed Bath & Beyond failed in part because it was trying to compete with Amazon with a slew of cheaper private-label brands. But for specialty bigger-ticket buys like strollers, mattresses, Nespresso machines, and Warby Parker prescription glasses, physical stores may have an edge. | |
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| | Crossing the finish line with index options. | |
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Hangover "cures" are a growing niche in the functional food & bev market | Beyond aspirin and Gatorade… So-called functional food and beverages like vitamin-packed energy drinks, electrolyte-boosted water, and spirulina powders are booming, including a niche in the category: products that claim to cure hangovers and counter the effects of boozy brunches. The market for supposed hangover remedies was valued at $2B last year, and is predicted to grow 15% yearly. Options: Such anti-hangover products include powders like Liquid IV and bevs like Pedialyte, patches like The Good Patch, and tablets/capsules like Blowfish. Not to mention hangover IV services, some of which cost $1K a jab. Different approach: There's hype and skepticism for Safety Shot, which claims to lower people's BAC. Its stock has climbed 1,000% since it was acquired by Jupiter Wellness in July, and the shot hasn't even gone on sale yet.
On shaky ground… Most hangover-targeted products are unproven, falling under the category of "nutraceuticals" or dietary supplements, whose health-benefit claims aren't established. They don't usually get FDA approval before being sold to the public. But regulators can step in when they deem the products unsafe. The FDA sent warnings in 2020 to seven companies that claimed their products cured or otherwise remedied hangovers — saying that the only cure is to drink less. An advertising watchdog in New Zealand recently filed complaints against companies making similar claims, while Singapore's health agency (btw, Asia is the niche's most lucrative market) has said there's no single cure for hangover symptoms.
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| The placebo effect sells… Whether "functional products" actually work is often debated. Health professionals and scientists remain skeptical at best. Still, plenty of consumers are snapping up quick fixes to address their ailments. From calm-inducing chocolates and CBD drinks to collagen powders and focus gummies — and Goop's * checks notes * shame-preventing essence blend — buying "solutions" can feel like a solution in itself. | |
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What else we're Snackin' | Stitch: Shein reportedly filed to go public and could list in the States as soon as next year. The fast-fashion titan faces scrutiny from US lawmakers over accusations of forced labor, which could set back its debut. DuFeat: A federal court said millions of Ohioans couldn't collectively sue 3M and DuPont over their manufacturing of toxic "forever chemicals." It's a big win for the companies, which faced potential legal liability. Spark: Amazon introduced an AI chip it hopes will bolster its AWS cloud-computing business as competition heats up with Microsoft. The biz said the chips are 4X as fast as the previous model, and 2X as eco-friendly. Exit: 200+ companies including Coke and Amazon are said to be considering halting spending on X after owner Elon Musk endorsed an antisemitic post. The social platform could lose $75M by year's end. Broke: Chinese authorities launched a criminal probe into the banking powerhouse Zhongzhi Enterprise. The biz, which offered high-yield investments, may be insolvent, and investors could lose $56B.
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Snack Fact Of the Day | US gas prices have fallen or remained steady for about 10 weeks straight | | |
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Wednesday | Earnings expected from Foot Locker, Dollar Tree, Petco, Hormel Foods, Snowflake, Salesforce, Okta, and Victoria's Secret
Authors of this Snacks own shares of: Amazon and Microsoft *Advertiser's disclosures: There are important risks associated with transacting in any of the Cboe Company products discussed here. Before engaging in any transactions in those products, it is important for market participants to carefully review the disclosures and disclaimers contained at https://www.cboe.com/us_disclaimers.
Under section 1256 of the IRS tax code, profit and loss on transactions in certain exchange-traded options, including SPX options, are entitled to be taxed at a rate equal to 60% long-term and 40% short-term capital gain or loss, provided that the investor involved and the strategy employed satisfy the criteria of the tax code. Investors should consult with their tax advisors to determine how the profit and loss on any particular option strategy will be taxed. Tax laws and regulations change from time to time and may be subject to varying interpretations. | |
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