The Winklevoss twins have been big investors in crypto projects |
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Not on our 2024 bingo card: Big Tobacco asking for more enforcement. Tobacco and vape companies are facing a knockoff nightmare as unauthorized Chinese vapes flood US shelves. Now, companies like Juul and Marlboro maker Altria are urging regulators to crack down. The Nasdaq plunged 2.4% on Friday, sending the tech-heavy index into correction territory (down 10% from recent highs). An extreme bummer of a jobs report fueled recession fears. US employers added 114K jobs last month (way less than expected), and the unemployment rate hit the highest level since 2021. 🗒️ Quiz on my list: Start your week off strong with our Snacks Seven quiz to test your memory of the past week's newsletters. Here's a sample q: |
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Chasing clout… A high-profile crypto founder who reportedly raised $257M from retail investors and prominent VCs including Andreessen Horowitz and Winklevoss Capital was arrested on suspicion of fraud. The SEC said BitClout founder Nader Al-Naji spent investors' $$ on himself and falsely claimed his project was decentralized. Launched in 2021, BitClout was a buzzy entrant to the emerging world of "SocialFi" — short for social finance — which sought to upend social media. In its first month in business, BitClout reportedly scored a $1B valuation and saw $225M in trades. |
- Anti-socials: SocialFi mixes decentralized finance and social media. Think: X, but built on the blockchain and not controlled by one company. The goal is to let users monetize accounts that they control.
- BuyClout: BitClout pitched itself as part financial app and part social app. It let traders place crypto-based bets on the popularity of public figures (sorta like a celeb coin). One BitClout token was once valued at $175. It's now worth essentially nothing.
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A speed bump… Al-Naji's arrest and BitClout's failure (it shut down months after launch) haven't dried up the flood of VC cash. DL News reported that this year investors are expected to pump $12B into crypto projects. That's more than the $8.2B raised last year, though still far from 2022's boom-era haul of $30B. Analysts say there are a few factors contributing to the projected funding upswing: former President Trump's embrace of crypto, spot bitcoin and ethereum ETFs, and expected Fed rate cuts. One example of crypto projects benefiting from a VC boost: prediction markets. In May, Polymarket announced a $45M VC investment and last month the platform saw record trading volumes as folks bet on election outcomes. |
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Bad apples don't always spoil the bunch… Crypto has a history of rug pulls, exit scams, and exaggerated tech claims. But the industry keeps investing despite shocks from founders like FTX's Sam Bankman-Fried (convicted of stealing $8B in customer funds). After an FTX cleanup and a regulatory crackdown, the industry has seemingly proved its resilience with the launch of regulated securities like last month's spot ethereum ETFs. |
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A Magical Investment Opportunity for Snacks Readers |
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A Magical Investment Opportunity for Snacks Readers |
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Doom swiping… Bumble and Grindr are set to report this week on the heels of dating-app leader Match Group. Last week, the Tinder and Hinge owner posted another decline in paying users (Tinder's seriously struggling, but Hinge payers surged). Match's revenue grew as its payers splurged for perks like unlimited likes and Hinge roses. Investors have been swiping left on Bumble stock (down ~40% this year), but in May the buzzy app reported that its paying users grew. In June, LGBTQ dating app Grindr boosted its annual sales growth target on optimism for new features. The stock's up nearly 30% this year. Like a magic carpet ride… Analysts think Disney could fly past estimates when it reports Wednesday. The Mouse House beat earnings expectations in May, even as its TV and box office revenues sank. Disney's profit-puppy parks and experiences revenue grew 10% to $8.4B, driven by Mickey-branded cruises. But Disney said it's seeing a "global moderation" in theme parks after 2023 records, and last month rival Comcast reported that Q2 sales at its Universal parks dropped 11%. Streaming could be a bright spot for Disney, whose streaming unit turned its first profit when it last reported. |
J. Pow considers the scissors… Investors' dream may finally come true. After the Fed held interest rates steady last week, Chair J. Powell said a September rate cut "could be on the table" if inflation keeps slowing. Traders (who, btw, were already betting on a cut) grew even more bullish after the Fed's statements, which suggested that the US central bank isn't as hawkish on crushing inflation as it used to be. The Fed also indicated that it might be starting to worry about the labor market, which has cooled after years of high rates. Hiring majorly slowed last month and unemployment rose to 4.3%. We've been trying to reach you… The multibillion-dollar industry behind spam calls and texts could soon implode. For years, "lead generators" have sold customer data to marketers, who then, often unsolicited, call and text consumers. Americans received 4.1B robocalls in June alone. New FCC rules that go into effect next year will change what marketers can do with that data, requiring that customers consent to being contacted by every company that wants to call them. Analysts foresee a major spam industry contraction, and a lot fewer calls about extended warranties. |
The DNA tester's value continues to sink from its strong debut. Read More. |
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- BlueShell: Nintendo reported a 55% plunge in quarterly profit as it sold just 2.1M of its seven-year-old Switch consoles. That's a 46% drop, as consumers hold out for a Switch successor.
- Jackpot: DraftKings plans to start taxing winning bets in states like New York and Illinois where sports betting taxes are above 20%. The mobile wagering app wants to juice profits as it loses market share to rival FanDuel.
- Chipped: Intel shares sank 26% on Friday after the chipmaker posted a huge Q2 earnings miss and said it would cut 15K jobs. Intel's lagged rivals like Nvidia and AMD, who've made billions off the AI chip boom.
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- Monday: Earnings expected from Tyson, Palantir, Hims & Hers Health, Lucid, and Avis
- Tuesday: US trade deficit for June. Earnings expected from Uber, Reddit, WK Kellogg, Caterpillar, Marathon Petroleum, Kenvue, Planet Fitness, Molson Coors, Yum Brands, Tempur Sealy, Hyatt Hotels, Supermicro, Rivian, Airbnb, Amgen, Instacart, Coupang, and Suncor
- Wednesday: US consumer-credit report for June. Earnings expected from Shopify, Disney, Novo Nordisk, CVS, Aurora Cannabis, Sony, Lyft, Brink's, Sunoco, Valvoline, Hilton, New York Times, Solo Brands, Ralph Lauren, Robinhood, Energy Transfer, Occidental Petroleum, Warner Bros., Duolingo, Bumble, Allbirds, Zillow, Marathon Oil, Beyond Meat, Virgin Galactic, Blade Air Mobility, Warner Music, and McKesson
- Thursday: US initial jobless claims. Earnings expected from Eli Lilly, Krispy Kreme, Liberty SiriusXM, Papa John's, Under Armour, Yeti, Hilton Grand Vacations, iHeartMedia, US Foods, Warby Parker, E.l.f. Beauty, Paramount, Sweetgreen, Expedia, Dropbox, Take-Two Interactive, Potbelly, Grindr, Expensify, and Yelp
- Friday: Earnings expected from Canopy Growth, AMC Networks, Soho House, and Getty Images
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Authors of this Snacks own bitcoin and ethereum and shares of CVS, Disney, Nvidia, Uber, Robinhood, and Yum Brands |
Advertiser's disclosures:
* "In 2023, the entertainment and media (E&M) industry recovered its balance…total global revenue rose 5% to US$2.8 trillion in 2023…"– PWC Perspectives from the Global Entertainment & Media Outlook 2024–2028: Seizing growth opportunities in a dynamic ecosystem, July 2024. ** The end date of this offering is April 1, 2025. *** This is a paid advertisement for Elf Labs' Regulation CF Offering. Please read the offering circular and related risks at elflabs.com. 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. |
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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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