…and Target's Shopify team-up
| Eyein' a $38B bite (Thierry Monasse/Getty Images) | |
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Yesterday's Market Moves | | Dow Jones
39,411 (+0.67%) | S&P 500
5,448 (-0.31%) | Nasdaq
17,497 (-1.09%) | Bitcoin
$59,964 (-5.08%) |
| Dow Jones
39,411 (+0.67%) | S&P 500
5,448 (-0.31%) | Nasdaq
17,497 (-1.09%) | Bitcoin
$59,964 (-5.08%) |
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Hey Snackers, It's vacay szn, but if you're in the US, chances are you're reading this at work. On average, US employees get just 12 vacation days/year, far fewer than the UK's, France's, and Germany's 27+ days. Stocks finished mixed yesterday, with Nvidia slipping and dragging the Nasdaq down with it. Investors looked to energy and financial cos as they took a breather on the mega chipmaker. | |
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Apple's staring at a possible $38B EU fine as regulators ramp up the pressure | An Apple a day… doesn't keep European Union regulators away. They charged Apple yesterday with violating the Digital Markets Act (DMA) over what they said are unlawful restrictions on app creators. If Apple is found to have violated EU rules, it could be hit with a whopping penalty of up to 10% of its global revenue. At $383B last year, that could = a $38B fine. The iPhone maker, which has been trading places with Microsoft and Nvidia as the world's most valuable company, is the first biz charged with violating the DMA. Point/counterpoint: EU regulators say Apple's policies limit app makers' ability to steer customers to deals outside Apple's App Store. Apple says it's in compliance with the law and that its fees are a fair trade for space on its massive platform. TL;DR: The DMA, which EU lawmakers passed in 2022, aims to boost competition in tech. The act designates Alphabet, Amazon, Apple, Meta, and Microsoft as digital "gatekeepers." Planting seeds: The EU's charges are preliminary. A final ruling is expected next March.
Shakin' the Apple tree… Regulators have taken a bite out of Apple this year. In March, the EU fined it nearly $2B over the cut of subscription fees (up to 30%) it was taking from music apps like Spotify, which regulators deemed stifling. The US DOJ also sued Apple that month, accusing it of illegally maintaining an iPhone monopoly. |  | THE TAKEAWAY |
| Regulators are betting on competition… US and EU watchdogs are hoping that tougher tech rules will lead to more competition, potentially helping customers and newer businesses. But that stricter stance could also cause consumers to miss out. That's what happened last week when Apple said it wouldn't roll out some AI features in the EU until next year because of DMA concerns. Read this online | |
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Sponsored by Global X ETFs | | | Powering up… AI technology isn't just changing the way we work. It's also changing the way we consume energy. As AI systems become integral to more industries, there's a growing demand for clean energy sources to fuel the computational and data processing power that AI tech demands. How about U… As the foundation of nuclear power, Uranium will likely become instrumental in developing reliable clean energy sources. Nuclear power already accounts for ~9% of the world's electricity generation and is a major source of energy in developed markets1 — and demand may escalate in the coming years. In a single trade, the Global X Uranium ETF (URA) provides investors access to a broad range of companies involved in uranium mining and the production of nuclear components. With net assets worth $3B+,2 URA offers efficient access to an emerging energy opportunity— discover the fund here*. |
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Target teams up with Shopify to supercharge its marketplace as Big Retail looks to small biz for growth | Adding to cart… Select Shopify merchants yesterday became eligible to join Target's exclusive third-party marketplace. Refresher: Target Plus launched in 2019 and has featured 2M+ products and today supports 1.2K selling partners. Target curates the companies allowed to sell through Plus, working on an invite-only basis. Now Target can connect with cos selling products through Shopify's extensive network of millions of merchants. Plus perks: Target Plus lets customers shop on a familiar site and offers perks like free shipping on some orders and free returns. Missed: Target's total sales have fallen in three of the past four quarters.
Race to the marketplace… Amazon dominates global retail. With nearly 2M active sellers, the Zon made up 80% of marketplace sales last year. FYI: more than 60% of Amazon-store sales involve independent sellers. But rivals are stocking up. As of last fall, Walmart Marketplace had more than doubled in size over the preceding year and a half, reaching 100K+ active sellers. It's also opened to merchants based in China, Canada, Japan, and the UK. On the newcomer front, TikTok Shop doubled its US merchant base last year, topping 500K+ vendors. | | THE TAKEAWAY |
| There's power in numbers… Marketplaces like Target Plus let retailers grow their listed inventory without spending as much of their own $$ (think: paying for products, warehousing, shipping costs). Meantime, they can help sellers reach a bigger audience. US ecommerce sales made through marketplaces are forecast to make up more than a third of retail sales by 2027. Read this online | |
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What else we're Snackin' | SheIPO: Shein reportedly filed to go public in London. The retailer known for trendy $2 tops was valued at $66B last year, but has faced scrutiny in the US over its ties to China and accusations of forced labor. Can: Sonoco, which makes cans for Bush's Best and Pringles, plans to buy EU packaging biz Eviosys for $3.9B. Sonoco said the deal would make it the world's top manufacturer of metal food cans and aerosol packaging. BoeWoes: US prosecutors are said to have recommended that the DOJ criminally charge Boeing. Officials said the biz breached a deal it made to settle fraud allegations related to two fatal 737 Max crashes. Bowlin': Chipotle has a 50-for-1 stock split planned to hit after markets close today, diluting its share price from ~$3.2K to ~$64. Walmart and Nvidia also split shares this year to make their stock appear more accessible. Border: Newly signed Kansas legislation could tempt the Chiefs and Royals to move across the Kansas-Missouri border by helping to finance stadiums. Other cities are thought to have lost money on stadium subsidies.
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Snack Fact Of the Day | Las Vegas was home to 265 weddings/day in April, a postpandemic record | | |
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Tuesday | Authors of this Snacks own shares of: Alphabet, Amazon, Apple, Microsoft, Nvidia, and Walmart Important Information:
1 International Energy Agency (2023). Tracking Nuclear Electricity.
2 URA assets under management as of 6/19/2024. * Investing involves risk, including the possible loss of principal. International investments may involve risk of capital loss from unfavorable fluctuation in currency values, from differences in generally accepted accounting principles, or from economic or political instability in other nations. Emerging markets involve heightened risks related to the same factors as well as increased volatility and lower trading volume. Narrowly focused investments may be subject to higher volatility. There are additional risks associated with investing in uranium and the uranium mining industry. URA is non-diversified. Carefully consider the Fund's investment objectives, risks, and charges and expenses before investing. This and other information can be found in the Fund's summary or full prospectuses. Please read the prospectus carefully before investing. Global X Management Company LLC serves as an advisor to Global X Funds. The Funds are distributed by SEI Investments Distribution Co. (SIDCO), which is not affiliated with Global X Management Company LLC. Global X Funds are not sponsored, endorsed, issued, sold or promoted by Solactive AG, nor does Solactive AG make any representations regarding the advisability of investing in the Global X Funds. Neither SIDCO nor Global X are affiliated with Solactive AG. | |
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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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