🚴‍♀️ Peloton spins up

…and Carvana's used-car comeback

(John Smith/Getty Images) Reaching for growth Presented by Hey Snackers, Malls aren't dead — they're just for cheesecake now. Restaurants have become the primary reason customers head to the mall, overtaking shopping and pics with Santa. Stocks plunged on Halloween, the spookiest daily drop for the S&P 500 in about eight weeks. Investors weren't thrilled with earnings from Meta and Microsoft, and Apple stock fell after the bell — though iPhone sales rose for the first time in two quarters and revenue hit a Q4 record. ☀️ Daylight-quizzing time: Enjoy that extra hour of sleep on Sunday, but till then take this week's Snacks Seven quiz. Here's the first q: What product did Starbucks discontinue? (Check your answer.) WORKED-OUT Peloton stock climbs 25% as the company speeds into subscriptions Spinning up changes… Peloton stock spiked yesterday like your heart rate during a Backstreet Boys ride. Shares of the embattled spin-bike maker popped as much as 25% yesterday after it beat earnings expectations and announced a new CEO, though it did give a muted holiday forecast. Peter Stern, the president of Ford's subscription unit and a cofounder of Apple Fitness+, is set to take the helm at Peloton in January. Worked out: Though the company's quarterly results weren't great, investors sent the stock soaring after hearing about the new boss and a shrinking loss. The stats: Peloton's revenue fell from the previous quarter and was also down year over year, though its net loss shrank significantly to $1M. Peloton's stock is still down 95% from its pandemic peak, in early 2021, when gyms were closed and stimulus-flush folks were scooping up bikes to sweat on at home. Hard pivot… Peloton's hopeful that Stern can spin it in the right direction as the fitness-tech company leans into subs over hardware. Its subscription revenue is now more than double its sales from fitness equipment. In 2022, Peloton announced it would stop making its own hardware and outsource to a Taiwanese manufacturer to save money on pricey US production. By that point, it had over $1B worth of unsold bikes and treads sitting in storage as pandemic demand dropped off. Its pivot to subscription revenue (think: classes with energetic instructors) has helped it shrink losses, though its subs fell last quarter to 6.2M. THE TAKEAWAY Branching out is key to growth… Peloton started as a direct-to-consumer company (you could buy its equipment only from its website or stores). But it's made distribution deals with retailers like Amazon, Dick's Sporting Goods, and, last week, Costco. And by focusing on selling subscriptions, it's also hoping to lure customers who don't have Peloton equipment. Read this online Presented by State Street Global Advisors The original S&P 500 ETF With SPY — the original S&P 500 ETF — investors can tap into the world's largest economy by gaining access to 500 of the largest publicly traded US companies.1 Learn More about SPY.2 Presented by State Street Global Advisors The original S&P 500 ETF With SPY — the original S&P 500 ETF — investors can tap into the world's largest economy by gaining access to 500 of the largest publicly traded US companies.1 Learn More about SPY.2 GAS-PEDAL Online car vendor Carvana crushes earnings as Americans shift to used cars Stocked up on quarters… for Carvana's vending machines. Yesterday shares of the online used-car seller surged 19% after it sped through Wall Street's Q3 estimates. Carvana lets buyers shop, sell, and trade cars online. Customers can get their cars delivered at home or pick them up at an eight-story car-vending machine. Carvana's quarterly sales nearly doubled to $3.6B as its costs fell. Rival CarMax also beat estimates last month after price cuts boosted sales for its used-car catalog. U-turn: Carvana's made a comeback since 2022, when shrinking sales and mounting debt drove it to the brink of bankruptcy. Still driving dad's pickup… Car prices have soared as pandemic disruptions led automakers to build about 8M fewer cars, which kept supply tight and prices high. Today, the average price gap between new and used vehicles is at a record $20K, with fewer affordable whips left on dealer lots. Cars priced under $25K are fairly rare, with sales in that range down 78% over the past five years. So Americans are holding onto their cars longer than ever: the average vehicle on the road is nearly 13 years old. THE TAKEAWAY Consumers are shifting gears… Folks are gravitating more toward used vehicles, whose prices are down 5% from a year ago (versus 1% for new cars). While retailers of pre-owned cars have had a rough ride, easing interest rates and lower demand for new models are jump-starting biz. Carvana boosted its annual earnings forecast, saying it expects stronger car sales in Q4.  Read this online ON SHERWOOD A timeline of 2 years of chaos at Elon Musk's X The company has shed a jawdropping $35 billion in value in just two years. Let that sink in. Read more. Presented by Atombeam Data, but faster: This tech could save companies billions in hardware upgrades More compact, high impact… Atombeam's data compaction technology can compress data 2-4X faster, making networks faster and more secure — substituting billions of dollars in hardware upgrades for customers. Up and Atom: The company's customer list includes the U.S. Air Force and Space Force plus industry partners like NVIDIA, Ericsson and Intel.3  Learn more about investing in Atombeam before their offering closes.4 3 The partnership relationship varies between companies and can include the following: inclusion on a preferred vendor list, invitations to participate in certain forums; listed on the other company's website, and introduction and networking opportunities. Presented by Atombeam Data, but faster: This tech could save companies billions in hardware upgrades More compact, high impact… Atombeam's data compaction technology can compress data 2-4X faster, making networks faster and more secure — substituting billions of dollars in hardware upgrades for customers. Up and Atom: The company's customer list includes the U.S. Air Force and Space Force plus industry partners like NVIDIA, Ericsson and Intel.3  Learn more about investing in Atombeam before their offering closes.4 3 The partnership relationship varies between companies and can include the following: inclusion on a preferred vendor list, invitations to participate in certain forums; listed on the other company's website, and introduction and networking opportunities. What else we're Snackin' Comcast said it's thinking about spinning off its NBCU cable networks like MSNBC, Bravo, and Syfy into a new public company. Estée Lauder's stock had its worst day ever after the beauty giant withdrew its 2025 outlook and slashed its dividend. OpenAI launched a ChatGPT search feature, putting it in direct competition with Google and Microsoft's Bing, which have both infused AI into their engines. Uber shares fell 9% after its gross booking came in short of expectations, though profit surged and revenue growth beat estimates. DoorDash had its first profitable quarter as a public company, breaking a four-year losing streak, and announced a Lyft partnership (their common rival: Uber). Get the power of the S&P 500® in a single trade with SPY, the world's most traded ETF.2 Ad Snack Fact of the Day The house from 1979's "Amityville Horror" sold for $1.5M last year Friday Employment and manufacturing data Native American Heritage Month begins Earnings expected from Chevron, FuboTV, Exxon Mobil, Wayfair, and Charter Communications Authors of this Snacks own shares of: Apple, Amazon, Alphabet, Comcast, Exxon, Microsoft, Starbucks, and Uber Advertiser's disclosures: 1 The S&P 500 is not an exact list of the top 500 U.S. companies by market cap because the index includes other criteria. 2 All ETFs are subject to risk, including possible loss of principal. Before investing, consider the funds' investment objectives, risks, charges and expenses. To obtain a prospectus or summary prospectus which contains this and other information, call 1-866-787-2257, download a prospectus or summary prospectus now, or talk to your financial advisor. Read it carefully before investing. ALPS Distributors, Inc., member FINRA, is the distributor for SPY, a unit investment trust. 4 This is a paid advertisement for Atombeam's Regulation A+ Offering. This Reg. A+ offering is made available through StartEngine Primary, LLC, member FINRA/SIPC. Please read the Offering Circular and related risks at Atombeam's webpage on StartEngine before investing.  In addition, as described in the Offering Circular, the Company retains the right to continue the offering beyond the Termination Date, in its sole discretion. This was a paid for ad. Sherwood Media has been compensated for this ad by the Atombeam Reg A+ Campaign hosted on StartEngine. Investing in private company securities is not suitable for all investors because it is highly speculative and involves a high degree of risk. It should only be considered a long-term investment. You must be prepared to withstand a total loss of your investment. Private company securities are also highly illiquid,  and there is no guarantee that a market will develop for such securities.  Was this email forwarded to you? Love what you're reading? Don't miss out on future stories — subscribe to Snacks and get your daily dose of financial news straight to your inbox.  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 Sherwood Terms and Conditions Our Editorial Standards Contact Us Advertise With Us Unsubscribe Privacy Policy