…and GameStop's roaring week
| Build your road-domination dreams (Greg Baker/Getty Images) | |
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Last Week's Market Moves | | Dow Jones
38,800 (+0.29%) | S&P 500
5,347 (+1.32%) | Nasdaq
17,133 (+2.38%) | Bitcoin
$69,214 (+0.96%) |
| Dow Jones
38,800 (+0.29%) | S&P 500
5,347 (+1.32%) | Nasdaq
17,133 (+2.38%) | Bitcoin
$69,214 (+0.96%) |
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Hey Snackers, Chipotle has a burrito surveillance problem. Complaints about smaller portions have gone viral, with some customers filming workers to pressure them into loading up their bowls. Chipotle's CEO said portions haven't gotten smaller. As for guac? Still extra. Canada and the EU both cut interest rates last week, but after US hiring unexpectedly surged in May, the Fed seems unlikely to follow suit with a rate snip when it meets this week. Stocks slipped after Friday's hot jobs report, but served up fresh records during the week. Nvidia briefly dethroned Apple as the US's second-most-valuable company after its market cap topped $3T. | |
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Budget Chinese EVs are taking over — and Western carmakers are sweating | Electric wheel… Chinese EV makers rolled up with strong May delivery #s. BYD, which last year surpassed Tesla as the world's largest EV seller, crushed it again with a third straight month of selling 300K+ EVs and plug-in hybrids. BYD's Seagull electric hatchback, which retails for under $10K in China, is making waves because it offers premium features like wireless phone charging at a low price. BYD (stands for "Build Your Dreams") is set to start selling the Seagull in Europe next year — which could be a nightmare for European carmakers. Smaller Chinese EV makers like Nio, XPeng, and Li Auto also grew deliveries in May. But last week Nio's stock fell after it reported lower sales for the quarter. Musk'ling in: Tesla has a huge factory in China (its No.2 market) and is the largest EV seller in the country after BYD. Tesla's China sales perked up in May, but have trended down in the face of local competition.
All roads lead to Chinese cars… China's vehicle exports quintupled during the pandemic, and last year it reported 5M shipments (China says it's now the top car exporter; Japan disagrees). Chinese car brands like SAIC, Chery, and Dongfeng are hitting roads worldwide. Top buyers of Chinese models include Russia, Mexico, and countries in South America and the Middle East. China-made EVs registered in Europe surged 23% from January to April, and BYD's eyeing a European expansion, despite EU plans to hike tariffs. Why you don't see Chinese cars in the US: tariffs and politics. Last month President Biden announced he was quadrupling tariffs on Chinese EVs to over 100%. His admin said China's "flooding global markets with artificially low-priced exports." BYD said it doesn't plan to sell in the US, but its Chinese rivals have signaled interest.
|  | THE TAKEAWAY |
| Automakers don't wanna get cut off… The average cost of an EV in the US is ~$55K, and even with 100%+ tariffs and safety-standard modifications, budget Chinese models would still be more affordable. A US trade group said that if Chinese EVs did come to the States, it'd be an "extinction-level event" for domestic manufacturers. But protectionist moves by US lawmakers, combined with pro-"Made in America" sentiments, make that unlikely. Even if Chinese cars don't flood the US, their growing prominence abroad should rattle carmakers. Read this online. | |
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Sponsored by Rocket Mortgage | | Get a home turf advantage | Take control. Buying a home can feel like a daunting process — and now more than ever, buyers are eager to own. Advice from those in-the-know can give financially savvy buyers an edge. Get into the market. In 2024, Americans firmly believe that real estate is the best long-term investment (even over stocks, bonds, and crypto), but some buyers are having difficulty getting a foot in the door due to the nationwide housing shortage. Thankfully, there are several strategic steps buyers can take to gain a competitive edge. Boost your confidence. Learn what prospective buyers need to know to feel confident about financing a home buy, with insights from Rocket Mortgage. |
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| GameStop's nine lives… The strip-mall video-game retailer saw its stock surge after Keith "Roaring Kitty" Gill's social accounts roared back to life. But shares plunged on Friday when (hours before Gill's first livestream in three years) GameStop surprise-dropped its Q1 earnings early and announced plans to sell 75M shares. The unprofitable retailer could be looking to capitalize on its recent stock gains — especially since sales were down 40% last quarter as gamers downloaded the latest "CoD" at home. Gill gave GameStop "a non-zero chance" of successfully reinventing itself. The bill gets personal… As companies gobble up customer data through ecomm, loyalty programs, and mobile apps, prices may get hyper-personalized. "Personalized pricing" is like dynamic pricing (remember Wendy's plan to shift Frosty prices depending on the time of day?) but on an individual level. Some economists say it could boost revenues, but others suggest it would eventually create a world where you're charged more for a coffee than your friend, based on an algorithm's knowledge of your income, habits, and willingness to spend. | |
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| Super Siri… Apple's rumored to roll out AI-powered features for iOS18 at its developers' conference today. They could include real-time voice-memo transcriptions, genAI photo editing, and a Siri makeover. Apple's reportedly teamed up with OpenAI to infuse ChatGPT into phones (#AiPhones). It's playing catch-up: Google and Samsung have already rolled out AI features for their Pixel and Galaxy lineups. FYI: iPhone sales have sagged as China demand dips, but experts say an AI infusion might reboot demand (there are only so many times you can upgrade the camera). Selectin' the AI-dropper… Creative pros depend on Photoshop maker Adobe, but the biz's recent push to embrace AI has some fired up. Adobe's jammed AI into Photoshop, Lightroom, and even PDFs. An update to its terms of service outraged designers (they're worried their confidential work will be used to train AI). Meantime, the company said its total addressable market will hit $293B by 2027 thanks to AI. Adobe's sales were up 11% from a year earlier in its last reported quarter. We'll see if it can clone-stamp those results when it posts on Thursday. | |
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| | 🏡 Less than a week left to invest in this emerging tech startup | For Ring and Nest, securing retail distribution in Best Buy was a stepping stone to their billion-dollar buyouts.* The big-box retailer just added RYSE SmartShades to its smart-home line up, the patented window shade automation device. Now available in 100+ Best Buys, you can invest in RYSE before their current round closes on June 14. |
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Tesla's unsold inventory is creating a lot of stockpiles | Tesla's got a parking problem. Last quarter the EV icon delivered 47K fewer cars than it produced. The result: a parking-lot pileup so big you can see it from space (we got satellite pictures from Tesla's Texas Gigafactory). Check it out. | |
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What else we're Snackin' | Jibe: Global shippers looking to cut back on emissions are revisiting sail-powered cargo vessels. As container ships get bigger, a movement toward hybrid ships — part sail, part fossil fuel — is gaining steam. MrBiz: MrBeast is now the most-subscribed-to channel on YouTube with 271M subs. But his empire stretches far beyond, from his chocolate brand to a Prime Video reality show. Whistle: Former and current OpenAI employees have raised red flags about the dangers of fast-developing AI tech, and said confidentiality agreements are preventing them from speaking out.
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Snack Fact Of the Day | Nvidia's $3T market cap made it worth about $100M per employee | | |
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This Week | Monday: Apple's Worldwide Developers Conference begins. James Beard Awards. Tuesday: Race Across America starts. Earnings expected from Oracle and Casey's General Stores Wednesday: US Fed's interest-rate decision. US consumer price index. World Day Against Child Labour. Earnings expected from Broadcom and Dave & Buster's Thursday: G7 Summit begins. US producer price index. Tesla shareholders expected to vote on Elon Musk's record pay package. Earnings expected from Signet Jewelers and Adobe Friday: University of Michigan preliminary consumer survey for June. Flag Day in US. World Blood Donor Day
Authors of this Snacks own shares of: Alphabet, Apple, Nvidia, and Tesla Advertiser's disclosures: * The performance of other companies is not necessarily indicative of the prospective returns of RYSE, Inc. Past performance is not a guarantee of future results. This is a paid advertisement for RYSE's Regulation A+ Offering. Please read the offering circular and related risks at: https://www.sec.gov/Archives/edgar/data/1824930/000168316824001075/ryse_253g2.htm
Start-up investments are speculative and involve a high degree of risk. Those investors who cannot afford to lose their entire investment should not invest in start-ups. Companies seeking startup investment 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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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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