…and LeBron trades in for a Fanatics card team-up
| You could be a W-2 too (Mark Boster/Getty Images) | |
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Yesterday's Market Moves | | Dow Jones
37,696 (+0.45%) | S&P 500
4,783 (+0.57%) | Nasdaq
14,970 (+0.75%) | Bitcoin
$46,926 (+1.82%) |
| Dow Jones
37,696 (+0.45%) | S&P 500
4,783 (+0.57%) | Nasdaq
14,970 (+0.75%) | Bitcoin
$46,926 (+1.82%) |
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Hey Snackers, Taylor Swift is a real fan of the millennial fave Le Creuset, but recent giveaways of the brand's colorful cookware — featuring an AI-generated "T. Swift" peddling the pots — were faker than clean cast iron. AI knew you were trouble. Stocks closed in the green yesterday as markets recovered from a long NYE hangover, while earnings szn loomed. Meanwhile, the SEC approved 11 applications for spot bitcoin ETFs (for real this time), clearing the path for institutional investors looking for crypto exposure. | |
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The Biden admin's rule on labor classifications is much bigger than just gig companies | Do you get déjà vu?… The Labor Department rolled out a rule that could force companies to classify more workers as employees rather than independent contractors. If this sounds familiar, it has similarities to the California Prop 22 battle waged (and won) by gig companies like Uber, Lyft, and DoorDash, all of which avoided having to reclassify drivers. The new rule, which is set to apply across the US on March 11, would require that workers be classified as employees when they're "economically dependent" on the company. Corporate response: There'll likely be legal battles. The rule's expected to raise costs for contractor-reliant industries like trucking, manufacturing, and healthcare. Labor response: Worker advocates said it'll provide necessary protections for folks who've been missing out on the pay and benefits they're owed after being misclassified by companies as contractors (sometimes intentionally).
A costly classification… Employees are more expensive than contractors because they get things like healthcare, paid time off, overtime, and sick leave. While the Labor Department doesn't expect that the rule will lead to many businesses reclassifying workers, it said the change would allow for stronger enforcement against companies that intentionally misclassify to save $$. Misclassification is common in lots of industries, notably construction and healthcare. Construction: As many as 30% of US construction workers are misclassified as contractors, sometimes on purpose. In one conservative estimate, between 10% and 20% of the construction workforce was misclassified or paid off the books in 2021. Healthcare: As of November 2022, the Labor Department found classification violations in 80% of its care-industry investigations, and had recovered nearly $29M in back wages and damages for ~25K workers.
|  | THE TAKEAWAY |
| It's not just gig companies… Gig cos get most of the attention when it comes to classification stories, but there may be bigger problems in less buzzy industries. The jobs most at risk of misclassification include truck drivers, home health aides, and landscapers. While Uber, Lyft, and other gig apps expressed concerns over the rule, they said they didn't expect it would lead to changes for their industry. | |
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Fanatics scores an MVP card deal with LeBron, spotlighting the power of celeb collectibles | Showing up Charizard…. Fanatics and LeBron James teamed up for an exclusive trading-card contract. Sports merch master Fanatics pays 300+ teams and brands for the right to sell official jerseys, caps, and koozies. In 2022, it bought trading-card legend Topps for a reported $500M to sell MLB, NBA, and NFL cards. LeBron and Fanatics' first card (signed by the MVP and his son Bronny) will kick off the collab when it goes on sale January 19. Demand's hot: Buzzer-beater: In 2021, a signed LeBron rookie card sold for $5.2M, while in 2022 a one-of-a-kind LeBron "Triple Logoman" card was auctioned for $2.4M. Switching sides: Though deal #s are under wraps, experts say Fanatics could be paying LeBron $5M/yr. It ends a long partnership between LeBron and trading-card biz Upper Deck, which began sponsoring the NBA star in 2003.
Collectibles score big… Sports trading cards have shattered sales records as fans piled into the hobby during the pandemic. Even as the collectibles market cools, six-figure sales for vintage sports cards surged 14% last year. It's not just sports fans adding to their trophy room: cards have become hot alternative investments. Michael Jordan's famous "Flu Game" sneakers sold for $105K in 2013, and a decade later were auctioned again for $1.4M. | | THE TAKEAWAY |
| "Blue chip" players can stay green for longer… Memorabilia featuring greats like Jordan and Babe Ruth can hold value more consistently since those MVPs already solidified their careers over decades, kind of like blue-chip companies. But legends still in the game, like LeBron, can keep gaining star power as they notch new milestones. The global market for sports memorabilia and trading cards is expected to 6x to $227B by 2030. | |
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What else we're Snackin' | Unbox: Fraudulent returns are up as consumers mail back brick-filled boxes and counterfeit luxury goods. Shoppers are expected to return $148B worth of holiday buys, and retailers think 17% of them will be fake. DisContent: Amazon said it's laying off hundreds of staff throughout Prime Video, Twitch, and MGM Studios. The biz had poured billions into Prime Video and acquired MGM for $6.5B as it tried to win the content race. BilliClub: TikTok is said to be the first app where users spent $10B+, mostly on tipping streamers. Analysts expect in-app purchases to jump 150% this year, as app spend shifts from mobile games to ice cream emojis. Duolayoff: Duolingo laid off 10% of its contract staff. The language-learning app is focusing on AI, using OpenAI's GPT-4 to power chatbots and create content (Duo said humans would still review AI's work). NoCap: A study found that a 33-ounce bottle of water has an average of 240K plastic particles, up to 100x more than previously estimated. The nanoparticles are small enough to enter people's bloodstream and organs.
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Snack Fact Of the Day | A record 58% of US households are invested in the stock market | | |
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Thursday | Authors of this Snacks own bitcoin and shares of: Amazon and Uber | |
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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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