(Diego Thomazini/Shutterstock) |
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Spirit Halloween, the retailer known for slinging costumes in abandoned strip malls, is trying its luck at staying open for more than three months. Spirit will convert 10 Halloween stores into Christmas stores next month, swapping out Scream for Santa. Stocks rose yesterday, boosted by tech. October is off to a rocky start for markets with the escalating conflict in the Middle East, the US election approaching, and strong jobs data tempering hopes for big rate cuts. |
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Counting Robux… Roblox stock dropped as much as 9% yesterday after a report from noted short seller Hindenburg Research accused the gaming platform of misleading investors and regulators about its user #s. In announcing a short position in the tween-favorite platform, Hindenburg is betting the stock will fall. And fall it did after Hindenburg published its scathing report, alleging that Roblox is "consistently overstating the amount of people on its platform." It also called it "a pedophile hellscape." |
- Hindenburg said Roblox may be including bots and alt accounts in its user #s, though Roblox discloses that daily active users "are not a measure of unique individuals."
- Roblox said it "totally" rejected the allegations, adding that Hindenburg is a short seller with an agenda.
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Don't sell yourself short… sell others short? Short sellers are kind of like investigative journalists… but with major conflicts of interest. Short-selling firms like Hindenburg pick companies whose stocks they believe will fall, and then make trades hoping to profit on that belief. Hindenburg is infamous for publishing reports explaining why it's shorting certain companies (often it says it found out something sus about the biz). Roblox is far from its first target. One consequential example: |
- In 2020, Hindenburg dropped a 67-page report accusing Nikola of exaggerating the readiness of its electric-truck tech, calling it "an intricate fraud." It led to an SEC investigation that resulted in a four-year prison sentence for the startup's founder.
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Short reports can move markets… Indian tycoon Gautam Adani saw $80B of his wealth wiped out after Hindenburg accused his conglomerate of accounting fraud. Block shares plunged after Hindenburg said it had inflated Cash App user #s. Short reports can improve transparency and accountability, but the firms behind them are driven by their own incentives. |
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Investing in Pacaso, a proptech powerhouse |
Softbank has invested in some of the world's most exciting companies before they went public. One of their recent investments is in a startup disrupting the vacation home market: Pacaso. And for the first time ever, you can invest in Pacaso, too. Led by seasoned real estate leader Austin Allison and serial entrepreneur Spencer Rascoff (the co-founder of Zillow), Pacaso aims to be a global leader in luxury vacation home ownership. Pacaso's co-ownership model lets users buy 1/8 to 1/2 of a luxury home rather than 100%. With 75% of current Pacaso owners wanting a second home, Pacaso is catching on fast. In just over three years, Pacaso has earned $100 million in adjusted gross profit.1 Learn more about becoming a Pacaso shareholder in their current round.2 |
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Investing in Pacaso, a proptech powerhouse |
Softbank has invested in some of the world's most exciting companies before they went public. One of their recent investments is in a startup disrupting the vacation home market: Pacaso. And for the first time ever, you can invest in Pacaso, too. Led by seasoned real estate leader Austin Allison and serial entrepreneur Spencer Rascoff (the co-founder of Zillow), Pacaso aims to be a global leader in luxury vacation home ownership. Pacaso's co-ownership model lets users buy 1/8 to 1/2 of a luxury home rather than 100%. With 75% of current Pacaso owners wanting a second home, Pacaso is catching on fast. In just over three years, Pacaso has earned $100 million in adjusted gross profit.1 Learn more about becoming a Pacaso shareholder in their current round.2 |
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All dogs go to… Walmart. America's largest retailer said it's opening five new pet-services centers this fall next door to its main stores — so shoppers can buy milk and a rabies shot in the same trip. Walmart said its first vet-and-groomer locations, which opened last year, have been getting two paws up. Cat and dog parents made return trips to the centers for services like nail trims and vaccines. While they waited for Milo's appointment to wrap up, they bought pet food and supplies. Walmart also plans to make its vet telehealth service, Pawp, a permanent benefit for Walmart+ subscribers after it became last year's most popular limited-time offer. |
- Roll over: Walmart said earlier this year that it planned to close all 51 of its for-humans healthcare clinics, citing high operating costs. It also ditched its telehealth service.
- Good dog: Walmart said pet care is simpler and more profitable than human care. Centers can be smaller and most pets don't have complicated insurance policies.
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Retail's best friend… Americans scooped up puppies and kittens during the pandemic, and overall industry spend's expected to pop 113% from 2019 to 2030. Individually, owners are expected to spend $1.5K on their pets next year and $1.7K by 2030. And as pandemic pets age, retailers are expanding from usually one-time supplies like beds and crates to services like vets and groomers. Online pet retailer Chewy launched its first vet centers this year, while Petco's opened hundreds of clinics in its stores since 2018 (when it had just 10). |
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The tail's always wagging… Experts say the pet industry is resilient in tough economic times. Pet parents, who Walmart said are increasingly higher-income Gen Zers, tend to keep splurging on treats for Fido even as they cut back on their personal budgets. In other words, retailers are counting on the power of puppy eyes. |
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The trader, who made and lost his fortune trading Tesla options, is suing RBC, arguing the bank's at fault. Read more. |
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- 13 US states sued TikTok, accusing the app of targeting young people with addictive features to boost ad profits.
- Google's Android app-store dominance could crumble after a judge ruled it can't require developers to use its payments service.
- Demand for Pepsi snacks and bevs fell and the company lowered its annual forecast after its second straight quarter of unbubbly sales.
- Goldman Sachs estimated that closures and disruptions from Hurricane Milton could slash Disney's park earnings by up to $200M this quarter.
- Uber added a setting that lets riders opt for EVs, and it's launching a ChatGPT mentor program to help drivers switch to electric.
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- Minutes of Fed's September FOMC meeting published
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Authors of this Snacks own shares of: Alphabet, Block, Disney, Uber, and Walmart |
Advertiser's disclosures:
1 We calculate Adjusted Gross Profit as gross profit under GAAP adjusted for amortization of developed technology, inventory valuation adjustment in the current period, inventory valuation adjustment in prior periods and share-based compensation. Please see management discussion of the financial condition section of the offering circular for more details. 2 This is a paid advertisement for Pacaso's Regulation A offering. Please read the offering circular and related risks at invest.picasso.com. Past performance is no guarantee of future results. 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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