…and US high-speed rail gains steam
| Life's like pharma prices: you never know what you're gonna get (Jeff Greenberg/Getty Images) | |
|
|
Yesterday's Market Moves | | Dow Jones
36,054 (-0.19%) | S&P 500
4,549 (-0.39%) | Nasdaq
14,147 (-0.58%) | Bitcoin
$43,820 (-0.60%) |
| Dow Jones
36,054 (-0.19%) | S&P 500
4,549 (-0.39%) | Nasdaq
14,147 (-0.58%) | Bitcoin
$43,820 (-0.60%) |
|
|
|
Hey Snackers, 2023 has gone down the can: YouTube named Skibidi Toilet, a series about an army of toilets with singing heads, as a top trend. The series got mentioned in the same breath as a $1B+ blockbuster: "From original series like Skibidi Toilet to the release of Barbie…" Skibidi dom dom dom yes yes 🎶. The S&P 500 ticked down for a third straight day yesterday. Private-sector job creation continued to slow last month, while wages grew at the slowest pace in over two years. 👋 We'd love to get to know you! Help us make Snacks better by taking our 10-minute survey. | |
|
|
CVS revamps its drug-pricing process as healthcare disruptors push for transparency | Buy now, rebate later… CVS, America's largest drugstore chain, is revamping how it pays pharmacies to fill prescriptions in an effort to simplify drug pricing. Usually pharmacy benefit managers (PBMs) act as intermediaries between drugmakers, insurance providers, and pharmacies to set medication prices. One problem: those drug-pricing formulas often come with inconsistent fees and markups. Now… Long line: CVS' new "CostVantage" model will kick off in 2025 using its own Caremark PBM service (the largest in the US) to ensure pharmacies get paid the original drug price plus a small fixed markup and service fee. Small print: While the policy won't affect consumers right away, CVS says it should eventually help lower more prescription prices for Americans, employers, and health insurers.
Full bottle, clear price… can't lose. Pricey medications are among the biggest healthcare headaches. Over 60% of US adults take at least one prescription med and pay $1.2K/year, on average, to get them filled — more than in any other country. The industry's notorious for its lack of pricing transparency, which has created opportunities for discount-drug disruptors like Mark Cuban's Cost Plus Drugs and Amazon's $5/month unlimited meds subscription. The newcomers are off to a strong start: |  | THE TAKEAWAY |
| Competition creates comparisons… The rise of discount-drug suppliers has ignited a shift in the healthcare industry, prioritizing price transparency. Now legacy drug providers like CVS are having to adapt or risk being replaced. A shoppable marketplace for healthcare services could create up to $81B in savings for consumers, employers, and insurers by 2025. | |
|
|
| | 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.* |
|
|
Billions of $$ in gov't funds show a light at the end of the tunnel for US high-speed rail | Choo choo (2X speed)… The Biden admin pledged $6B to a pair of high-speed-rail projects this week, injecting optimism into what supporters see as the future of public transportation. $3B was awarded to Brightline West, a project that aims to connect Los Angeles and Las Vegas with a two-hour train ride. Another $3.1B will go toward a publicly funded effort to connect LA and San Francisco. Local motion: The 500-mile LA-to-SF project was approved by voters in 2008, and was expected to wrap up in 2020 for $30B. Over a decade later, the new funding will help complete a 119-mile segment, with the full route likely completed in 2033 for $100B+. Desert crossing: Brightline's LA-to-Vegas train line is set to start punching tickets in time for the 2028 LA Olympics. Speeds are expected to reach at least 186 mph, and supporters say the system will remove about 3M vehicles from roads.
Finally leavin' the station… 26 countries have high-speed-rail systems, but the tech has stalled in the US (while traffic gets worse). Now new projects are full steam ahead. Last year, Brightline completed a high-speed line connecting Orlando and Miami in two hours. Brightline's ridership has more than doubled this year, and it expects 4.3M high-speed passengers/year by 2025. Amtrak is exploring offering high-speed-rail service in Texas, and train builder Alstom has poured $600M into a US supply chain for its fast trains. | | THE TAKEAWAY |
| It's not as simple as layin' tracks… Train lines are huge infrastructure projects, made more difficult by lengthy construction timelines and multiple jurisdictions. Heavy lobbying by transportation-industry rivals (like airlines) applies even more brakes. But just as trillions in highway funding expanded car ownership, the $66B earmarked for US rail could make high-speed-train travel mainstream. | |
|
|
What else we're Snackin' | Tepid: Campbell's profits cooled last quarter as higher prices failed to make up for shrinking sales. The pantry staple said shoppers were overlooking single-serve soups and buying "stretchable" meals (think: chicken leftovers). GeminAI: Google said its new genAI, dubbed Gemini, is its best yet, and will be available to the public next year. The tech titan's racing to catch up with OpenAI, which announced ChatGPT updates last month. Flush: While overall toy sales have fallen this year, sales of plushies are rising as kids and kidults buy cuddly toys like Squishmallows and Beanie Babies. Take it from Ty founder Ty Warner: "Soft sells." McWorld: McDonald's wants to open nearly 9K locations and add 100M loyalty members in the next five years. The burger boss, which has been hiking prices, said the goal is to meet customers where they live. Treats: Chewy swung to a loss as its quarterly sales growth slowed to 8%. The pet-products retailer cut its outlook, and investors tucked their tail on the weak guidance, sending the stock down 10%.
| 🍪 Thanks for Snacking with us! Want to share the Snacks? Invite your friends to sign up here. | |
|
|
Snack Fact Of the Day | Brenda Lee's "Rockin' Around the Christmas Tree" has topped the Billboard Hot 100 chart for the first time since its 1958 release | | |
|
|
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 | |
|
|
