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...and who's down

Snacks / Monday, July 29, 2019

The streak is over... Amazon's 4-straight quarters of its best profits ever is officially done. Blame it on the shipping arms race — Prime delivery was upped from 2-day to 1-day delivery, jacking Amazon's shipping costs north by 36%. Expect similarly huge postage stamp bills from Target and Walmart when they report earnings in the new world of "we-demand-one-day-shipping."

Delayed — ETA TBD... Southwest had to cancel 20K flights last quarter, mostly because of Boeing's flawed 737 Max jets. Turns out Southwest was the biggest 737 Max customer with 34 in its fleet, 41 arriving this year, and hundreds more already ordered. The pain is causing it to cut all its air service out of Newark airport.

Model 3 is eating Model S... Technically, Tesla set a record for cars sold over the last three months (95K). But shares plummeted 12% for their worst day of the year after we learned that "cannibalization" is eating profits. Tesla's lower cost (and arguably sleeker) Model 3 is snagging sales away from the classic Model S and Model X, which are pricier (and profitable-ier for Tesla).

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