…and retail's big lobby walks back theft claim
| Peely won, but Google's appealing (Jakub Porzycki/Getty Images) | |
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Yesterday's Market Moves | | Dow Jones
36,578 (+0.48%) | S&P 500
4,644 (+0.46%) | Nasdaq
14,533 (+0.70%) | Bitcoin
$41,227 (-0.01%) |
| Dow Jones
36,578 (+0.48%) | S&P 500
4,644 (+0.46%) | Nasdaq
14,533 (+0.70%) | Bitcoin
$41,227 (-0.01%) |
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Hey Snackers, Inflation may be cooling, but companies still have a few tricks up their sleeves. Introducing * drumroll please * flavorflation — when brands cheap out on ingredients. Shoppers are shouting about crumblier Ritz crackers, Twix with less caramel, and Breyers that's more ice than cream. As if shrinkflation weren't bad enough. Stocks rose yesterday after November's consumer price report showed that our old friend inflation ticked up from October, but kept cooling year over year. The Fed's expected to hold rates steady at its meeting today. Traders aren't expecting cuts till May. | |
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"Fortnite" maker Epic Games' win against Google could shift the balance of app-store power | Searched and found… meet found and lost. On Monday Google lost its three-year courtroom battle royale against "Fortnite" maker Epic Games. A jury ruled that the search giant violated antitrust laws and used anticompetitive moves to keep "monopoly power" for its Play app store. Google said it plans to appeal. Quick history: in 2020 "Fortnite" got booted from Google's and Apple's app stores after it directed players to its own discounted payment system to skirt the "app tax" (a 15-to-30% fee app-store owners skim off purchases). Epic retaliated by suing both tech titans and releasing a #FreeFortnite video parodying a famous Apple ad. This win's bigger than Epic… The verdict means Google could be forced to change its app-store rules in favor of thousands of Android developers. At risk: Google's power to collect billions in fees. Going forward, Google may need to allow competing app stores or make it easier for companies to bypass its fees. A judge will decide next month which actions Google has to take. But Apple's case had a different outcome: In April, Apple declared "victory" in its Epic court battle after 9 of 10 of the video-game company's claims were decided in Apple's favor. Different circumstances: During the Google trial, Epic emphasized that Google had reached agreements with top game developers like Nintendo and Activision for smaller fees. Meanwhile, Apple applied its App Store fee evenly.
|  | THE TAKEAWAY |
| One win can change the game… Google's Android controls 70% of the global mobile OS market, while Apple's iOS has nearly 30% (almost every phone app goes through their stores). Now billions in app fees are on the line. While Apple mostly won its case, there was one important caveat: the ruling said Apple can't bar developers from steering users to off-app purchasing pages to skirt fees. Coupled with Google's win, it could mean big changes are downloading. | |
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| | Invest in a company that is democratizing the multi-billion dollar advertising industry | #Cashtag: Thumzup is democratizing the multi-billion dollar advertising industry with an app that pays users cash for posting about businesses on social media. By streamlining the marketing process and connecting users directly to businesses and advertisers with an easy-to-use dashboard, Thumzup is disrupting social media marketing. #Sponsored: Investors who hope to profit from the rapidly expanding market for social media advertising can invest in Thumzup. Investors in this Reg A+ offering can earn bonus shares for investing $10,000 or more if they act now, the offering closes soon. Invest Thumzup today.* |
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The main US retail lobby retracts its organized-theft stat as cracks appear in the shrink narrative | Checkin' the receipts… Recent headlines, smash-and-grab videos, and company earnings calls have spotlighted what appeared to be a spike in "organized retail crime." But public crime stats haven't always matched up to the retail industry's claims. Now the National Retail Federation (US retail's biggest lobby) has retracted its claim that organized theft was behind nearly half of the ~$95B in merch that disappeared in 2021. The real figure was closer to 5%. Shrink grows: Inventory losses from theft, damage, and poor tracking are all wrapped up in a single term: shrink. It cost retailers $112B last year, and dozens of cos including Target, Walmart, and Dick's Sporting Goods blamed shrink (and specifically theft) for profit hits and store closures. Closin' time: This fall, Target said it would shutter nine stores, citing "organized theft" and violent robberies. Meanwhile, stats showed that areas where stores were closing weren't hit any harder by shoplifting/robberies than areas where stores were staying open. Actually, since 2019, the #s have dropped 7% in most major cities.
Skeptics take a bite outta crime… Though "organized retail crime" is happening, there's debate around how big a bite it's really taking out of retailers' carts. Some analysts have accused retailers of using theft as a cover for underperformance and unpopular cost-cutting measures (closing less-trafficked stores, trimming inventory). Earlier this year, Walgreens said it might've "cried too much" over theft's effect on its biz after SF police data didn't match some of its statements. | | THE TAKEAWAY |
| Organized or not, the theft crackdown is here… Whether or not retailers are overstating theft's impact, it appears to be working on officials. At least nine states have passed laws cracking down on organized retail crime. Now the bipartisan Combating Organized Retail Crime Act is making its way through Congress, and the NRF says it helped write the bill. Time'll tell if such measures help curb retailers' shrinkage. | |
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What else we're Snackin' | Tweak: As the holiday shopping szn reaches its peak, Play-Doh parent Hasbro said it'll lay off 1.1K workers. The Monopoly and My Little Pony maker said toy sales have been tumbling from pandemic highs. Dash: Ford is said to have halved its 2024 production goal for the electric F-150. Last month the truck powerhouse said it would delay $12B in EV factory investments as electric growth cools. ScAIndal: Sports Illustrated owner Arena Group fired its CEO after Futurism said that some SI articles were bylined by fake authors with AI headshots. Publications like Gannett are debating AI's place in the newsroom. Check: The SEC is reportedly probing investment advisers on how they use AI for financial guidance. The inquiry comes as banking biggies including BlackRock, JPMorgan, and Goldman Sachs ramp up AI research. Shock: Argentina's new prez, Javier Milei, devalued the country's currency and started slashing gov't spending to rein in the country's 140%+ inflation and pay back its big debts. Latin America's No. 3 economy is the IMF's biggest borrower.
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Snack Fact Of the Day | From January to June, non-English content accounted for 30% of all Netflix viewing | | |
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Wednesday | Authors of this Snacks own shares of: Alphabet, Apple, and Walmart *Advertiser's disclosure: This is a paid advertisement for Thumzup's Regulation A+ Offering. Please read the offering circular and related risks. | |
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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 | |
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