Tons Of Millennials Are Living With Their Parents, Plus Uber Lost A Whopping $800 Million In Q3
Enjoy your December 22nd hand-crafted Brew!
QUOTE OF THE DAY
“…Facebook is a new kind of platform. It’s not a traditional technology company. It’s not a traditional media company” — Mark Zuckerberg, implying that Facebook is a media company…just not a “traditional” one. This is an important distinction considering the legal implications of each company type (tech companies get more immunity than media publishers). Sounds like FB’s got some positioning to do.
- U.S. stocks slipped on Wednesday as the Dow hovered just shy of 20,000. The CBOE Volatility index, aka Wall Street’s “Fear Gauge,” fell to a 16-month low, suggesting that investors don’t expect a pullback in the S&P 500 before the end of the year
- Twitter slumped 4.7% as the company’s CTO and VP of Product announced their resignations—continuing the executive exodus as the company struggles to reach profitability
Uber’s Ups and Downs
Starting with the downs
Yesterday, the ride-hailing giant pulled its 16 self-driving Volvo test cars from San Francisco roads. You might remember the California DMV ruling that Uber can’t put its self-driving cars on the road because it didn’t have autonomous vehicle permits. You also might remember Uber quickly responding by saying “we hear you, and we don’t care”—but yesterday’s about-face shows Uber does in fact care. For some perspective, It’s a temporary blow, and the bigger issue could be that the company lost a whopping $800 million in the third quarter. Yikes.
And now the ups
But hey, it’s not all bad: Uber also just struck a deal with Snapchat. Wait, disappearing pics and cars? Indeed. Now, instead of typing addresses in Uber, you can type a friend’s name. Once the friend confirms their location, you can send them a special Snapchat preloaded with info like your ETA, a custom location filter and even the type of Uber you’re in. A move that’ll surely heighten brand awareness on both sides, Uber and Snapchat executives say the point of their partnership is fun. Now, about those self-driving Volvos…
Things Are Getting Serious
…Twilio (+15.61%) is reportedly deepening its relationship with Amazon (-0.08%). Shares of the cloud communications company spiked yesterday after rumors surfaced that the two companies are teaming up to offer voice messaging. Don’t remember Twilio? The newly-IPO’d company provides messaging services for businesses, enabling companies to programmatically send texts or place calls to clients and customers—kind of like when you get a text when your table’s ready at a restaurant. Amazon Web Services, Amazon’s cloud computing arm, and Twilio already partnered last summer to provide SMS delivery. Now, voice messaging will be included as well, making communication even easier—and open communication is key to every relationship.
Papa’s Got a Brand New House
…And, surprisingly, so do many others. U.S. existing home sales rose 0.7% in November to an annual rate of 5.61 million units, defying forecasts of a 1% decline. Why the unexpected increase? Buyers are trying to lock in low interest rates as they expect borrowing costs (for mortgages) to rise—and you can point your finger at the Fed and Trump for that. The Fed, which just raised interest rates last week, is forecasted to raise them three times in 2017. And The Donald’s proposed infrastructure spending increase and tax cuts are expected to push mortgage rates even higher. We’re not necessarily complaining, though—November’s existing home sales figure is the highest in almost 10 years, which should be a serious boon to GDP growth.
- Leaked documents suggest Apple will launch a premium iPhone codenamed ‘Ferrari’ next year
- Coke moves away from AB InBev with Africa bottling deal
- OurMine hacks Netflix, Marvel Twitter accounts
- Honda in talks with Google’s Waymo on self-driving tech
- Monday: Janet Yellen Speech
- Tuesday: Nike (+/-), BlackBerry (+/-), FedEx (-), General Mills (-), Carnival (+), CarMax (-), Darden Restaurants (+/-) Earnings
- Wednesday: Accenture (+/-), Bed Bath & Beyond (-) Earnings; Existing Home Sales (+)
- Thursday: Rite Aid Earnings; U.S. Q3 GDP (3rd Estimate); Weekly Jobless Claims; Durable Goods Orders; Personal Income and Outlays
- Friday: New Home Sales; Consumer Sentiment
A Full Nest
Although the stock and job markets have completely rebounded from the recession, the percentage of young Americans living with their parents has continued to increase. And we do mean increase: according to Trulia, a real estate tracker, the current percentage has hit a 75-year high. Here are the facts:
- 39.5% of Americans aged 18-34 are living with their parents, siblings or other relatives. That’s the highest number since 1940, the end of the Great Depression—when, perhaps unlike today, Americans actually had a super-legitimate excuse to be living at home.
- What’s driving the moving van back home? Unsurprisingly, it’s low income. Only 40% of Americans aged 25-34 earning less than $25,000 head their own household. In comparison, 58% of the same age group earning more than $50,000 head households of their own.
- The bright side: economists project that millennials will more than double their current number of households by 2025. It’s New Year’s resolution time—now’s as good a time to move out as any.
Interview Question of the Day
Fill in the next line:
9 7 5 9 4 9
6 3 4 5 3 6
1 8 2 0 1 8
Business Person of the Day
Carl Icahn is at it again. The hedge fund titan’s latest mischief? Serving as an advisor to President-elect Donald Trump on regulatory matters. He technically won’t be a federal employee and won’t have any specific duties. However, we don’t get the sense that the lack of a title would upset him. After all, he now may have a say on how his own industry is regulated.
Food for Thought
Nintendo’s Super Mario Run app has set a download record after topping 40 million downloads since its December 15 release on Apple’s App Store. Good news? Not good enough. Nintendo shares have taken a 13% dip since Mario’s App Store debut. Many users have complained that the $9.99 one-time cost is too hefty, and reviews have been mixed. The princess is in another castle.