Revenge of the Bob (Charley Gallay/Getty Images) |
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Hey Snackers, As Americans get hyped for Monday's total solar eclipse, brands are basking in marketing opportunities. The rare event has inspired eclipse-themed Krispy Kreme donuts, a SunChips flavor, and a blackout Sonic slushy. Stocks were mostly flat yesterday after Fed Chair Jerome Powell reiterated that the US central bank still expects to cut rates this year. ADP data showed that the US private sector added a better-than-expected 184K jobs last month. |
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The ride of a lifetime… has been bumpy lately. Yesterday, Disney finally fended off hedge fund Trian's attempt to take over two seats on Mickey's board. Shareholders voted for Disney's board picks, ending an aggressive "proxy fight" (when shareholders force a vote for control). It's the culmination of a battle between Trian founding partner Nelson Peltz and Disney CEO Bob Iger, who've been trading barbs for over a year (Trian owns 2% of Disney shares). Peltz has blamed Iger's management for Disney's failure to return to its record high 2021 stock price. |
- Spendy: Disney vs. Trian is thought to have been the most expensive proxy fight ever. To sway shareholders, Peltz shelled out $25M and Disney spent $40M (it even enlisted Donald Duck's uncle for PR).
- "Succession" vibes: As an activist investor, Peltz tries to influence changes by leveraging his stake in a company (in this case Disney). He'd previously led (and lost) a proxy fight against Procter & Gamble.
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All it takes is (losing) faith and trust… and a little proxy dust. Peltz has had a long list of grievances with Disney and Iger. In a 133-page white paper, Peltz called for a clear succession plan after Iger, a path to streaming profitability, and a shake-up of Disney's creative teams. Meanwhile, Iger's been trying to restore the magic his own way. And it seems to be working: |
- Beauty and the beat: Last quarter Disney beat profit expectations and lifted its guidance after narrowing streaming losses.
- Iger announced plans to make streaming profitable by September, launch an ESPN streamer next year, invest $1.5B in "Fortnite" maker Epic Games, and release a "Moana" sequel.
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 THE TAKEAWAY |
Everyone can live happily ever after… Trian failed to win two seats on Disney's board, but its heated push for change may've lit a fire under Disney's caboose. While Disney shares haven't reclaimed their peak price, they're up 50% over the past six months, and Iger projects earnings per share will rise 20% this year. |
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Your AI investments, rolled into one |
Ground to gain? The possibilities and applications for generative AI are limitless. With the market forecast to grow to $1.3tn by 2032*, the opportunity is clear to see — and for investors, Global X Artificial Intelligence & Technology ETF (AIQ) is a powerful way to access the potential of AI. Can't choose just one? AIQ seeks to invest in a range of companies that stand to benefit from AI's development and utilization. Top holdings include household names such as Nvidia, Meta and Netflix**, as well as some you haven't heard of… yet. Global X Artificial Intelligence & Technology ETF (AIQ) could offer a simplified, efficient, and transparent way to tap into the market of the moment — and the future. Discover the fund here. *Bloomberg, June 2023. |
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Your AI investments, rolled into one |
Ground to gain? The possibilities and applications for generative AI are limitless. With the market forecast to grow to $1.3tn by 2032*, the opportunity is clear to see — and for investors, Global X Artificial Intelligence & Technology ETF (AIQ) is a powerful way to access the potential of AI. Can't choose just one? AIQ seeks to invest in a range of companies that stand to benefit from AI's development and utilization. Top holdings include household names such as Nvidia, Meta and Netflix**, as well as some you haven't heard of… yet. Global X Artificial Intelligence & Technology ETF (AIQ) could offer a simplified, efficient, and transparent way to tap into the market of the moment — and the future. Discover the fund here. *Bloomberg, June 2023. |
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Hamburger and a hammer… DoorDash added Lowe's to the list of retailers on its app, partnering with the home-improvement chain to offer delivery from its 1.7K stores across the US. Users scrolling for late-night tacos can add screwdrivers, gardening kits, and other DIY tools to their cart thanks to DoorDash's first foray into home improvement. The team-up is a win for both brands: DoorDash earns $$ from your last-minute home-repair needs and Lowe's gains exposure to a bunch of new customers. Don't call 'em food-delivery apps… They want to be "everything delivery" apps. DoorDash started with restaurants before expanding to groceries, and now it's making a big push into retail. Lowe's is just the latest addition, joining dozens of DoorDash retail partners including Sephora, Best Buy, Target, Petco, Victoria's Secret, and CVS. It's a trend: |
- Uber Eats added retailers like PetSmart, Big Lots, and Office Depot. It also launched services including package-return drop-offs and flower deliveries.
- Everything transportation: Since starting non-food deliveries in 2020, Uber said it's gained 100K+ merchant partners in retail, grocery, and other new verticals.
- The more the merrier: Delivery apps like DoorDash and Grubhub earn a cut of each order they facilitate, so the more products they have on their apps, the better.
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THE TAKEAWAY |
Delivery apps are stepping into Prime turf… Amazon is the go-to for fast delivery convenience, but food-delivery apps are encroaching on its territory (and beating its ETA) with their push into retail partnerships. For time-sensitive purchases, they have a leg up: if you need dog kibble or mascara ASAP, you might be more inclined to order it on DoorDash than wait a day to get it through Prime. |
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- Note: 200+ artists (including Stevie Wonder, Billie Eilish, and Nicki Minaj) signed a letter asking AI developers to stop infringing on their music. AI "copycats" have duped artists' voices to avoid royalties.
- Rx: Costco's selling members a $179 weight-loss program that includes prescriptions for drugs like Ozempic (but not the shot itself). Costco joins companies like WeightWatchers in offering access to the high-demand drugs.
- Swish: Sportsbooks including FanDuel and DraftKings said Monday's LSU-Iowa March Madness rematch was their biggest women's sports-betting event ever. $2.7B is expected to be wagered on the bball tourneys.
- Amped: Spotify is hiking prices for the second time in a year in five markets. The up-to-$2 hikes could hit the US this year as Spotify tries to offset royalty costs (last year it paid out $9B to the music industry).
- Runny: Cal-Maine (the #1 US egg producer) halted production at a Texas plant after it found chickens infected with bird flu, shortly after a Michigan lab detected it in a poultry facility. That could lift prices.
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| The odds of NC State making the men's March Madness Final Four this year were 1 in 23,512 |
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- Earnings expected from Conagra, Lamb Weston, and Simply Good Foods
- 75th anniversary of NATO formed
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Authors of this Snacks own shares of: Amazon, CVS, Disney, Lamb Weston, and Uber **All ETFs are subject to risk, including possible loss of principal. Technology-themed investments tend to be more volatile than the overall market, and are subject to rapid changes in technology, intense competition, rapid obsolescence of products and services, loss of intellectual property protections, evolving industry standards and frequent new product productions, and changes in business cycles and government regulation. Holdings listed are as of 03/19/24 and are subject to change. For current holdings and prospectus, visit https://www.globalxetfs.com/funds/aiq/. Carefully consider the fund's investment objectives, risks , charges, and expenses before investing. This and additional information can be found in the fund's summary or full prospectus. Read it carefully before investing. Global X Funds are distributed by SEI Investments Distribution Co. |
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