Hello and happy Friday! President Trump is building a $200 million ballroom in the White House starting September, complete with crystal chandeliers, gilded columns, and room for 650 guests. Today we're exploring: |
- No juice: Harley-Davidson's electric bike brand is getting crushed.
- Ikea x Best Buy: The Swedish retailer is trying something new after a rare sales slump.
- Huge following: Meta is still finding new users somehow.
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You thought electric cars were having a tough time? Harley-Davidson's electric bike brand is getting crushed |
When Harley-Davidson decided to spin off its electric bike division in 2021, the iconic motorbike maker had high hopes about the new LiveWire business, looking to sell some 101,000 units by 2026. But despite the legacy automaker's expertise in all things with two wheels, the electric market is proving to be shockingly tough. In the second quarter, LiveWire sold just 55 electric motorcycles, racking up more than $18 million in operating losses. That works out to fewer than one bike per day. |
With Harley still owning a controlling share of LiveWire's lagging business, those losses are weighing on its already pressured bottom line. Back in 2021, when electric vehicle companies were racing to go public through Special Purpose Acquisition Companies (SPACs), Harley-Davidson merged its in-house electric bikes division with a blank check company to bring in $500 million of fresh external capital through private and SPAC investments. |
The theory was that Harley's history as a reliable manufacturer would set LiveWire apart from its nascent four-wheeled electric peers, allowing the company to serve the millions of people who, they presumed, would want to ride an electric motorbike. Unfortunately, millions of people ended up being more like hundreds of people. Were Harley-Davidson customers crying out for an electric bike with a combined range of just 95 miles? Probably not. Interestingly, there is one part of LiveWire's business that's thriving: selling electric balance bikes for kids. Indeed, the company's STACYC brand accounted for ~85% of LiveWire's revenue, and it grew its sales 25% in the latest quarter, while electric bike sales for adults dropped 65%. |
Ikea sales fell for the first time since the pandemic; now it's setting up stores in Best Buy |
Ikea, a go-to retailer for anyone looking to deck out their new place with affordable, flat-pack furniture, has found a new home itself, with the Swedish brand and Best Buy announcing a new "shop-in-shop" collaboration in 10 Best Buy stores across Florida and Texas. |
Per the brands' vision statements, shoppers will be able to explore 1,000-square-foot showrooms displaying "inspirational" Ikea kitchens and laundry rooms, where they'll be able to imagine and integrate Best Buy's tech appliances. With Best Buy's sales having slumped for the last three years on the bounce, as Bloomberg reported, the move comes at a tough time for the consumer electronics company, though it's not all sunshine and meatballs at Ikea, either. |
Last year, Ikea sales fell for the second time in 20 years — the only other instance being in 2020, when the pandemic stopped customers from making pilgrimages to Ikea locations to see BILLY bookcases in person and sample the Swedish delights at their in-store restaurants. The 2024 revenue drop came after the world's largest furniture seller discounted a range of thousands of items at an average rate of 10%, having previously raised prices on pandemic-era supply issues. Surely we haven't seen peak Ikea, have we? |
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Beyond Stocks: Smart Money Chooses Private Credit |
The traditional 60/40 portfolio faces unprecedented headwinds in 2025. Now, one of the leading investment firms suggests allocating up to 20% to alternatives, including private credit — an asset class that's grown almost 10x since 2009, offering both yield potential and portfolio diversification. Percent's platform gives accredited investors access to institutional-quality private credit deals starting at $500. Our marketplace has facilitated over $1B in transactions, with implied returns after losses at 14.9% in 2024.1 Experience why sophisticated investors are adding private credit to their portfolios. New investors receive up to $500 on their first investment.2 |
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Somehow, Meta just keeps growing — the company's added an extra 1.38 billion daily active users since 2019 |
With Meta's blockbuster earnings out on Wednesday, many investor eyes were fixated on its AI progress and capex spending — especially after the tech behemoth went on a big shopping spree to establish a "superintelligence team" of AI experts. But the bread and butter of Meta's business, its Family of Apps (Facebook, Instagram, WhatsApp, Messenger) was still the unsung hero of the day, raking in $46.6 billion last quarter and up 21% year on year. That smashed analyst expectations and ended up contributing some 98% of the tech giant's revenue. The ability to sell more expensive ads (average ad pricing was up 9% from last year), certainly helped — but the company is also finding more people to show those ads to, with Meta reporting 3.48 billion daily active users this quarter across its social media empire. |
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- Upvote: Reddit's advertising business, which still accounts for 93% of its sales, crushed expectations.
- The US added just 73,000 jobs in July, some way below the ~109,000 forecasters had predicted.
- Ford's EV division lost $1.3 billion in Q2 — its CEO said the announcement of new, more affordable electric cars will be a "Model T moment."
- JPMorgan has opened 1,000 new branches in seven years, taking its total to roughly 5,000 locations — more than any other bank in the US.
- With its blowout FY25 Q4 earnings, Microsoft entered the $4 trillion club, sitting alongside Nvidia and… nobody else.
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Allocating a percentage of your portfolio to alternative assets offers diversification — and one of those is private credit. Find institutional-grade private credit opportunities on Percent's platform, starting at $500. |
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- Beginnin' to feel like a Rap God… Charting Eminem's rich lyrical lexicon.
- Reuters visualizes the waning protections of America's public lands.
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Off the charts: The world's largest producer of _____ has been losing its fizz for the last nine quarters? [Answer below]. Hint: Best served chilled (usually). |
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Advertiser's disclosures: 1 Past performance is not indicative of future performance. See website for further details on performance. 2 The up to $500 cash bonus offer is open to first-time investors who make a minimum investment of at least $5,000 in a single offering. See website for further details. 3 Alternative investments are speculative and possess a high level of risk. No assurance can be given that investors will receive a return of their capital. Those investors who cannot afford to lose their entire investment should not invest. Investments in private placements are highly illiquid and those investors who cannot hold an investment for an indefinite term should not invest. Private credit investments may be complex investments and they are subject to default risk. This website is only available to certain qualified investors. Please review the offering documents for each offering carefully before investing. |
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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