🏆 Apple’s big Oscars win
![Tim Cook intro’ing Apple’s streamer three years ago this week [Noah Berger/AFP via Getty Images]](https://cdn.robinhood.com/static_content/mwphzyq69oso/en-US/assets/files/75X31FWH3IwSBEOihm8GgB_1_GettyImages-1132806310.jpg)
Hey Snackers,
The only rock that shines brighter than Dwayne Johnson: the world's largest white diamond (dubbed: The Rock) could fetch a whopping $30M at auction.
Stocks barely budged to kick off the week, but oil dipped after new Covid lockdowns in China threatened energy demand (closed bridges = less driving). Tesla was one of the day’s biggest movers, with shares jumping 8% on word that it wants to do a stock split.
Apple beats Netflix as the first streamer to nab Best Picture — as its curated content strategy starts to pay off
ICYMI... Sunday's Oscars ceremony has been garnering more attention for a shocking moment than for actual awards, but there were a few big milestones — including one for streaming: Apple became the first streamer to win the Best Picture award with its indie family drama, “CODA.” Netflix’s “Power of the Dog” was favored to win with 12 noms, but scored only for Best Director (#woof).
Award-winning > bingeworthy… When Apple TV+ launched in 2019, Netflix already had 160M+ subscribers and hit series like “Stranger Things'' and “The Crown.” To stand out, Apple kept its content library small, focusing on premium shows and movies with A-list actors (like: "The Morning Show" with Jen Aniston). That prestige-forward strategy is racking up awards: before “CODA,” “Ted Lasso” gave Apple bragging rights as the first streamer to win Best Comedy at the Emmys.
- Deep pockets: With its billions in hardware profits, Apple splurged $25M on distribution rights for “CODA,” when the flick cost just $10M to produce.
- Lock box: Apple hasn’t yet broken out its number of streaming subscribers, but estimates put subs around 40M — a fraction of Netflix and Disney+.
Apple’s playing the long game… and despite its late start, it’s beginning to score. While the Flix has spent a decade churning out everything from reality shows to action movies, Apple’s taken a more curated approach so that its content feels as high-quality as its hardware. With Apple’s strategy paying off in golden statues, the halo effect could lure big talent (and eyeballs) that help grow its “services” biz, which now accounts for more than a tenth of revenue.
New Balance doubles down on “Made in America” — and it’s not just a marketing play
American dads are cheering… New Balance is proud to be the sneaker brand “worn by supermodels in London and dads in Ohio.” Now those cushy kicks are coming closer to home. Last week, Wall Street icon Larry Fink said that the war in Ukraine could cause US companies to “deglobalize” and shift production stateside. Right on cue: yesterday New Balance opened a new factory in its home state of Massachusetts.
- New jobs in New England: New Balance is aiming to have 200 workers at the space by year’s end to help produce an extra 750K pairs of sneakers/year.
- Old jobs in New England: NB already had four factories in the Northeast, and it has long advertised its line of “New Balance Made” sneakers that are at least 70% US-manufactured. In total, it will now employ about 1K workers in the US.
“Made in America” was a marketing classic… When US manufacturing powerhouses like GE moved production offshore in the ’70s to lower costs, businesses learned that consumers cared more about low prices than USA labels. That’s why Nike makes most of its shoes in Vietnam, where workers earn 13X less than in the US.
- But the overseas calculus has been shifting as shortages plague supply chains and foreign shipping costs eat into profit.
- NB boosted production at US factories during the pandemic to reduce overseas reliance, and its sales actually grew faster than Nike’s last year (as supply issues hurt Nike’s inventory).
There’s a New Balance of power in global manufacturing… And companies may “onshore” production for the same reason they offshored it: to cut costs. It used to be cheaper for US companies to manufacture products in China and ship them home, but that process got pricier recently as Chinese wages rose and trade disagreements multiplied. Now that shipping costs have soared — first from Covid, then from war — the most cost-effective choice may be manufacturing in the US.
What else we’re Snackin’
- Sick: Russian oligarch Roman Abramovich and Ukrainian peace negotiators reportedly suffered symptoms of poisoning after a meeting in Kyiv this month. WSJ sources said Russia was trying to sabotage the talks.
- Lock: China’s locking down the financial capital of Shanghai, its largest city, to test all 26M residents in two stages. It’s China’s most intense Covid closure since the Wuhan lockdown of 2020.
- Pose: President Biden’s 2023 budget proposal features a wealth tax on Americans making over $100M, plus corporate tax hikes and buyback restrictions. Congress must OK the plan, which isn’t a sure bet.
- Bitgas: America’s #1 oil and gas producer, Exxon, is said to be piloting a bitcoin-mining initiative in North Dakota. As part of a broader plan to slash emissions, Exxon is using excess gas to power crypto mining.
- Gasp: Oscar ratings surged 56% from last year’s record low, drawing 15M+ viewers. But that still made Sunday’s ceremony the second-lowest-rated Oscars ever. Less than a decade ago the show was bringing in 40M viewers.
Tuesday
- Earnings expected from Lululemon, McCormick, Chewy, and Micron Technology
Authors of this Snacks own: bitcoin and shares of Apple, Exxon, Disney, Netflix, Tesla, and Ford
ID: 2100042