…and Abercrombie's high-waisted quarter
| Drilling in the USA (David McNew/Getty Images) | |
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Yesterday's Market Moves | | Dow Jones
38,442 (-1.06%) | S&P 500
5,267 (-0.74%) | Nasdaq
16,921 (-0.58%) | Bitcoin
$67,624 (-1.02%) |
| Dow Jones
38,442 (-1.06%) | S&P 500
5,267 (-0.74%) | Nasdaq
16,921 (-0.58%) | Bitcoin
$67,624 (-1.02%) |
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Hey Snackers, There's an Uber for everything, so why not a Shazam for babies? AI "baby translators" are popping up, claiming they can decode cries. But how legit are they? Find out. Stocks fell for the first time in three trading days as US Treasury yields rose to four-week highs. Rising yields on relatively safe US gov't bonds can put a damper on riskier investments like stocks. | |
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ConocoPhillips is buying Marathon Oil as US production greases the merger wheels | Add more oil… ConocoPhillips yesterday agreed to buy its significantly smaller rival Marathon Oil. The deal — valued at more than $17B — would help Conoco keep pace with larger competitors who've been on a buying spree. US oil titans have struck record profits in recent years, giving them plenty of cash to scoop up sought-after oil fields owned by smaller players in regions like the Southwest's Permian Basin and the Gulf of Mexico. Drinking their milkshakes: The value of oil and gas industry M&A deals in the US last year reached $250B (the highest level in a decade). The trend has continued with $51B in deals last quarter. 60% of those were in the Permian Basin. Slick moves: Chevron's $53B Hess acquisition was just approved by Hess shareholders. Diamondback Energy bought Endeavor in February for $26B, outbidding Conoco. And Exxon Mobil snatched up Pioneer Natural Resources last year for $60B.
Why you gotta be so crude?… For the past six years, the US has been pumping more crude oil than any other country (45% more than Saudi Arabia). Drilling has picked up under President Biden: as of last fall, his admin had approved more oil and gas drilling permits on public lands than former President Trump had at the same point in his presidency. During his 2020 campaign, Biden promised to end drilling on public lands, but the White House recently finalized a rule making the practice about 10x more expensive. The US is expected to be responsible for more than a third of oil and gas production increases between now and 2035. |  | THE TAKEAWAY |
| Oil's doubling down on oil… The International Energy Agency said oil demand would peak by 2030, but Big Oil's buying up fields as if the boom will last. The acquisition spree represents a big bet on future fossil-fuel demand, and it doesn't mesh with climate goals: experts say eliminating greenhouse-gas emissions by 2050 is crucial to preventing the worst effects of the climate crisis. | |
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| | ✅ The Future of Marketing and AI Strategic Buyouts | The AI era… Right now, new AI tech is hitting the market daily. They're not all created equal - but execs from Google and Meta have invested in RAD AI, an AI tool delivering 3.5X ROI across campaigns and marketing channels. Plus, for a limited time, investors get a 15% discount on the current round. Booked… RAD AI's booked revenue growth is equally impressive at ~3X over the last 12 months, while landing major clients like Hasbro, Skechers and Sweetgreen. In short, it's proven and working, backed by 6500+ investors and the Adobe Fund for Design. Acquisitions… Now, RAD AI is using its award-winning tech to power strategic AI buyouts (AIBOs) in small-to-medium-sized marketing agencies that need differentiation. Leadership believes AIBOs will result in material revenue and operational efficiencies, and will drive RAD AI shareholder value. Limited time at this round's valuation — Invest before June 13th and get a 15% discount on your share price.* |
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Abercrombie is thriving as it expands its offerings, from tween staples to bridal dresses | That's so Fitch… Abercrombie & Fitch's comeback streak has been fiercer than Fierce cologne. Shares of the mall icon popped 24% yesterday after the company reported a fragrant $1B in quarterly sales, up 22% from last year. A&F also smashed profit expectations, with operating income up nearly 7x. A middle-school must-have in the early 2000s, A&F lost its cool factor in the 2010s. But after a massive makeover and more inclusive marketing, Fitch is back: High rise: A&F has emerged as one of the biggest winners in retail, building on its double-digit sales growth last year. It lifted its revenue guidance for this year too. Lose the moose: Abercrombie ditched its logo-centric branding and leaned into fashionable basics, from officewear to its popular jeans.
Beyond A&F… Abercrombie has been growing its sub brands like Hollister, which accounts for nearly half of its revenue (Hollister has twice as many stores as A&F). While A&F is geared toward millennials, with Hollister, Abercrombie's targeting 13- to 21-year-olds. It said that Gen Z customers engage with the brand on social media but purchase in stores (70% of Hollister purchases are in person). Abercrombie's also expanded into wedding attire: Abercrombie and hitched: In March it launched the "A&F Wedding Shop," pitching it as a hub for wedding-related attire (bridal-shower dresses, bachelorette fits). Abercrombie said the offering "clearly exceeded" expectations last quarter.
| | THE TAKEAWAY |
| Grow with your customers… Sub brands let retailers offer something for every stage of their customers' lives. Some could start with Abercrombie Kids, move to Hollister as a teen, graduate to A&F when they enter the workforce, and tap into the Wedding Shop when they get married. Other sub brands driving growth: American Eagle's loungewear retailer, Aerie, and Urban Outfitter's boho-chic, Free People. | |
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| "Garfuriosa" was no Barbenheimer | Tinseltown has a serious case of the box-office blues, and "Garfield" and "Mad Max" didn't help. "Furiosa: A Mad Max Saga" made just $32M over Memorial Day weekend, the lowest debut gross for that weekend since "Casper" in 1995. | |
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What else we're Snackin' | Bowlin': Fast-casual Mediterranean chain Cava served up a big earnings beat, with sales up 28%. But the Chipotle rival's traffic slipped after bad weather kept customers from stopping in for $16 feta bowls. Beef: A former OpenAI board member said that CEO Sam Altman was briefly ousted over his "multiple" lies, including failing to tell the board that ChatGPT was launching to the public (apparently they found out on Twitter). Discount: Walgreens is slashing prices on 1.5K items, from gummy bears to Squishmallows. Walmart, Target, and Amazon have also cut prices on thousands of products to lure back inflation-fatigued shoppers. Fetch: Chewy shares had their best day ever after the online pet supplier's Q1 profits tripled to $67M. Chewy's Autoship feature drove growth as more pet owners scheduled regular treat deliveries. Pickleball: Shares of Dick's Sporting Goods jumped 15% after the retailer beat Q1 estimates and raised its annual earnings outlook. Dick's benefited as more shoppers splurged on new sneaks and athletic fits.
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Snack Fact Of the Day | The TSA said it screened 2.95M travelers last Friday — the most ever in a single day | | |
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Thursday | US jobless claims World MS Day Earnings expected from Costco, Gap, Nordstrom, Hormel Foods, Best Buy, Kohl's, Foot Locker, Canopy Growth, Burlington Stores, Dell, Ulta Beauty, NetApp, Birkenstock Holding, Build-A-Bear, and Dollar General
Authors of this Snacks own shares of: Amazon, Exxon, Ulta, and Walmart *Advertiser's disclosures: INVESTMENTS IN PRIVATE PLACEMENTS ARE SPECULATIVE, POSSESS A HIGH LEVEL OF RISK, ARE HIGHLY ILLIQUID, AND THOSE INVESTORS WHO CANNOT HOLD AN INVESTMENT FOR AN INDEFINITE TERM SHOULD NOT INVEST. NO ASSURANCE CAN BE GIVEN THAT INVESTORS WILL RECEIVE A RETURN OF THEIR CAPITAL. PLEASE CAREFULLY REVIEW THE TERMS OF THIS OFFERING, INCLUDING FEES, RISKS, AND INVESTMENT DETAILS BEFORE INVESTING. | |
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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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