House of yards (Scott Olson/Getty Images) |
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Hey Snackers, Two California shoppers are suing Hermès, accusing the luxe brand of not letting them buy Birkins and illegally reserving its iconic bags for the biggest spenders. And we thought Trader Joe's mini totes were hard to get. After notching fresh highs last week, stocks cooled yesterday. Investors are waiting for the Fed's fave inflation gauge on Friday, though US markets will be closed for Good Friday. |
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Cul-de-sac mania… America's largest homebuilders nailed earnings beats this month as they cranked out new builds to ease low inventory. Last week, KB Home said its quarterly revenue grew 6% and net new-home orders surged 55%. Rival Lennar's home deliveries jumped 23% while revenue grew 13%. But with spring here, the housing market isn't all sunshine and roses. |
- Closed house: New-home sales dipped slightly in February as mortgage rates ticked up, though the median sale price for a new home fell to $400K from $415K in January.
- Open hand: Homebuilders are dishing out more perks to lock in cash-strapped buyers (think: covering $500 inspection fees). KB Home said that last quarter over half its deals came with concessions.
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Escrow anxiety… Last year, low housing inventory and 23-year-high interest rates contributed to the lowest existing-home sales in nearly three decades. But even as builders like Lennar and KB ramp up production, the US market is still short up to 7.2M homes. Most first-time homebuyers now spend over 40% of their monthly income on home payments. Would-be buyers need to earn nearly $50K more than they did prepandemic to afford a new pad. Even those who earn enough may have a hard time finding their dream home. |
- Golden cuffs: A lot of homeowners are unwilling to give up the low mortgage rates they locked in during the pandemic. Recently, nearly 70% said they didn't plan on moving anytime soon.
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 THE TAKEAWAY
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There's less spring in housing's step… Spring is historically the housing market's sweetest szn thanks to higher inventory and better weather (picture: sun-soaked gardens in full bloom). But Americans are facing the least affordable housing market since 1984, and while rate cuts could spark a home-buying spree later this year, they may also drive up prices by boosting demand. |
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🤌A tasty investment opportunity |
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🤌A tasty investment opportunity |
Imagine how well a great-tasting pasta with just 9 calories and zero net carbs would sell. You don't have to imagine: It's Skinny is already the top-selling pasta on Amazon. And you can share in their growth as an early investor. The growth potential is enormous too. Over 50 million people can't find a pasta that fits their dietary needs. Now, It's Skinny is on a mission to scale in the $131B global pasta market by expanding to 20,000+ stores. Their growth potential is a key reason legendary investors like Tim Draper back them. But time's running out to join them. This opportunity ends on March 28. Become an It's Skinny shareholder today. |
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Hot chocolate… Satisfying a sweet tooth is becoming more expensive than getting a root canal. As bad weather has killed crops this year, cocoa prices have doubled, hitting a record high of more than $9K/ton just yesterday. That makes cocoa costlier than copper, and the chocolatey powder's 12-month gain has even outpaced bitcoin's. Sugar's on a high, too, reaching prices not seen since 2011. Mixing cocoa + sugar = higher sweet-treat prices ahead of Easter. |
- Brittle beans: Heatwaves in West Africa (where 70% of cocoa is produced) have damaged crops, and dry spells in India and Thailand (major sugar exporters) have destroyed harvests, fueling the price surges.
- Wonkanomics: US shoppers paid 9% more for sugar and sweets last year and can expect another 6% hike this year. As cocoa costs climb, chocolatiers are shrinking the size of bars and testing lower-chocolate recipes.
- Sweetspiracy: A batch of federal antitrust lawsuits filed last week against US sugar companies — including United Sugars, Domino, and Cargill — accused producers of conspiring to inflate sugar prices since 2019.
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Bittersweet symphony… Chocolate and candy cos have successfully passed their higher costs on to consumers. Hershey's profit margin ticked up to 17% last year, while Cadbury and Oreo maker Mondelez's rose to 14%. Last month, Tootsie Roll reported a 23% jump in profit over the past year. Still, sales volumes are melting across the industry (Hershey's fell 7% in the most recent quarter) as prices got too rich for shrinkflation-weary shoppers. Easter candy spending is expected to dip 6% this year to $3.1B. |
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THE TAKEAWAY |
Maybe don't save room for dessert… Extreme weather (expected to shrink cocoa harvest output for the third straight year) and incoming EU climate rules could exacerbate the cocoa shortage. And popular weight-loss drugs like Ozempic could further drag down sugar-packed sales. All this could keep candy and chocolate prices elevated. |
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- Parachute: Boeing's CEO and other senior leaders are stepping down. US gov't agencies are investigating the troubled jet-maker's standards after a door plug flew off a Boeing Max 737 and other safety issues.
- Cali: State Farm is cutting insurance coverage for 72K California homes as the state's wildfire risks rise. Insurers are fleeing (or limiting coverage) in disaster-prone states like CA, FL, and LA.
- Tsk: EU regulators said they're investigating whether Apple, Google, and Meta failed to comply with the new Digital Markets Act. At issue: anticompetitive tactics and ad targeting.
- Booked: Traders on prediction market Polymarket are betting that Sam Bankman-Fried will get 20+ years in prison. The disgraced FTX founder, convicted of stealing $8B, is set to be sentenced Thursday.
- ExtraCred: Some US states have passed laws (and others are considering policies) to raise minimum teacher salaries, which have remained mostly stagnant since 1990. Fewer folks are becoming teachers and lots are quitting.
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The most popular dog breed in America last year was the French bulldog |
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- Earnings expected from McCormick and GameStop
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Authors of this Snacks own bitcoin and shares of: Alphabet and Apple Advertiser's Disclosure: This is a paid advertisement for Its Skinny REG CF offering. Please read the offering circular and related risks at https://invest.itsskinny.com. Equity crowdfunding investments in private placements, and start-up investments in particular, are speculative and involve a high degree of risk and those investors who cannot afford to lose their entire investment should not invest in start-ups. Companies seeking startup investment through equity crowdfunding tend to be in earlier stages of development and their business model, products and services may not yet be fully developed, operational or tested in the public marketplace. There is no guarantee that the stated valuation and other terms are accurate or in agreement with the market or industry valuations. Further, investors may receive illiquid and/or restricted stock that may be subject to holding period requirements and/or liquidity concerns. DealMaker Securities LLC, a registered broker-dealer, and member of FINRA | SIPC, located at 105 Maxess Road, Suite 124, Melville, NY 11747, is the Intermediary for this offering and is not an affiliate of or connected with the Issuer. Please check our background on FINRA's BrokerCheck. |
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