…and e-scooter biz Bird gets its wings clipped
| Jinglin' to checkout (Jessica McGowan/Getty Images) | |
|
|
Yesterday's Market Moves | | Dow Jones 37,404 (+0.87%) | S&P 500 4,747 (+1.03%) | Nasdaq 14,964 (+1.26%) | Bitcoin $43,964 (+0.71%) |
| Dow Jones 37,404 (+0.87%) | S&P 500 4,747 (+1.03%) | Nasdaq 14,964 (+1.26%) | Bitcoin $43,964 (+0.71%) |
|
|
|
Hey Snackers, Scientists identified a star formation they're calling the "Christmas Tree Cluster" because, well, it looks like a pine tree covered in twinkling lights. The tree at Rockefeller Center must be having an existential crisis. Markets got knocked down Tuesday, but they got up again yesterday with all three major indexes closing higher. Today, investors expect the Fed's fave inflation measure to come in on target, a sign of a soft landing. 🧠 Merry Quizmas: It's the most wonderful time of the week… time to take the Snacks Seven Quiz. Try out the first Q: BTW: We'll be back in your inbox on January 2 with a futuristic edition to ring in the new year. Happy holidays! | |
|
|
Walmart brings BNPL to self-checkout as payment plans pick up for the holidays | Big cart, small receipt... Walmart's now offering buy now, pay later options at self-checkout kiosks at 4.5K+ of its US stores. The new service expands on an existing partnership between the nation's largest retailer and Affirm, which already provides BNPL options on Walmart's website and at 4K+ of its Supercenters. Now eligible shoppers can use Affirm's app or website to self-check-out with a payment plan, no associate necessary. 25 days of payments… With Americans already facing a record $1T+ in credit-card debt, one in five US shoppers is expected to use buy now, pay later services to fulfill their holiday wish lists. It's a trend: BNPL users spent a record $940M on Cyber Monday this year, up 43% from 2022. Pay-later financing on Black Friday also surged, by 47%, compared to last year. Some estimates suggest that global use of BNPL loans is expected to more than double to 900M+ people by 2027. | | THE TAKEAWAY |
| Convenience can be too easy… BNPL demand had been cooling over the past few years, but uncertain economic times may've helped turn that around. Because many pay-later plans aren't reported to credit bureaus, consumers can finance big buys without necessarily dinging their credit scores. But analysts say BNPL can also make it too easy to rack up debt: nearly 43% of pay-later users have overdrawn a bank account in the past year. | |
|
|
| | Lithium: The Next Gold Rush? | Charged: Lithium is essential to almost all technology — from smartphones to electric vehicles. In 2021, 105 tons of lithium was produced, but as the economy grows increasingly reliant on renewable energy, the demand for lithium is projected to soar to 450,000 tons in 2035. That's why demand for lithium is projected to 20X by 2040. Energy re(de)fining: EnergyX is aiming to unlock lithium supply with refining technology that can extract 300% more lithium than current methods. Investors can join GM, who's leading $50M financing in EnergyX, to capitalize on the surging demand for lithium. You can become an EnergyX shareholder today.* |
|
|
Bird, once e-scooting's biggest wheel, files for bankruptcy as micromobility tumbles | Scooting to bankruptcy court… Bird, an electric-scooter rental once valued at $2.5B, filed for bankruptcy this week. It's an Icarus-like plunge for a startup that reached a $1B valuation in just eight months — the fastest ever to achieve the milestone at the time. But controversies, increased competition, and a growing global movement against e-scooters clipped the company's wings. Breaking a few eggs: Bird and rival Lime started the e-scooter craze, but public perception fell as accidents and abandoned scooters piled up. In two months last year, Bird racked up $385K in parking fines. Road bump: Pandemic-era shutdowns hit Bird hard. It laid off 30% of its workforce in March 2020. Tipped over: Bird shares fell 97% this year, and the biz was delisted from the NYSE. Its attempts to recoup revenue — including asking former users to pay back debts under a dollar — were unsuccessful.
The e-scooter biz may be underwater… Despite getting $5B+ in venture capital over the past six years, the e-scooting industry hasn't been great at zooming past mounting obstacles. Folks soured on scooters because of sidewalk clutter and safety issues — micromobility-related injuries have climbed 23%/year since 2017 — and Paris banned the rentals this year, joining more than a third of the top 100 cities (from Philly to Sydney) that've done the same. | | THE TAKEAWAY |
| Winning over VCs is only half the battle… you also need customers to get on board. Bird pitched a vision of smooth rides and greener cities. Now with e-scooting's safety problems worsening and its environmental claims facing scrutiny (studies show that e-scooters replace walking and public transportation at a higher rate than cars), people increasingly aren't buying that vision. That downward spiral may keep going as cities continue to ban the two-wheelers. | |
|
|
| ⚖️ Judgy… A judge rejected a request from Sam Bankman-Fried's lawyers to delay the former crypto kingpin's sentencing (scheduled for March). He's facing a potential prison sentence of 100+ years, along with charges related to bribery allegations. 🌶️ Spicy… A hacker stole 54 high-profile NFTs (think: Bored Apes) worth nearly $3M, but returned them after getting a $267K ransom. It's the latest example of hack to return, a trend that's seen thieves return stolen loot for payment. 🪙 Coins… The solana blockchain is having a moment, with traders' renewed interest sending the price of solana-native memecoin bonk inu up nearly 1,000%. The chain was all but declared dead earlier this year because of its association with SBF. | |
|
|
What else we're Snackin' | Buffering: Warner Bros. Discovery and Paramount execs have talked about merging, Axios reported. The move could shore up the companies' streaming and cable businesses, and inspire other media giants to team up. InTransit: Ikea said deliveries will be delayed because cargo ships are being rerouted to avoid attacks in the Red Sea. $80B+ of goods have been diverted from the critical trade route, tying up global supply chains. McSquish: McDonald's is adding a mini version of one of the hottest toys, Squishmallows, to its Happy Meals. TikTok's favorite plushies are popular with kids and toy-collecting kidults. MarketFit: VR goggles are finding fans in hundreds of nursing homes across the US as older folks explore potential therapeutic benefits. But overall sales have sunk as shoppers sour on the tech. FlyDeal: Southwest Airlines and its pilots' union made a tentative deal that includes 50% raises and boosted retirement benefits. It'd bring Southwest's pilots' pay in line with those from other airlines.
| 🍪 Thanks for Snacking with us! Want to share the Snacks? Invite your friends to sign up here. | |
|
|
Snack Fact Of the Day | The McCallisters in "Home Alone" would need to make $665K+ to afford their house today | | |
|
|
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 | |
|
|