Sherwood
Wednesday May.08, 2019

GM's own Uber app (but self-driving)

_"Car news. It's everywhere, baby"_
_"Car news. It's everywhere, baby"_

Hey Snackers,

Worst day for stocks since January.

Only 23 companies in the S&P 500 rose Tuesday as investors remain in worry mode following America's trade war escalation — Fresh new tariffs are scheduled to hit China Friday morning.

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Drive

Lyft, Tesla, and GM have big things to say

We're decidedly pro-carpooling... and pro-Snacks story-pooling. Yesterday, one old school company, one new-ish school company, and one brand new company updated investors and customers on auto industry-changing moves:

  • Lyft: The first gig-economy cab company to go public bragged that revenues almost doubled in the 1st quarter to $776M. But its loss ballooned to $1.1B. That loss was mostly driven by new stock issued to employees because of the IPO, so investors were impressed overall despite the loss.
  • Tesla: The e-car company announced it is offering its own car insurance. It claims its cars are safer (thanks to self-driving car features) and it has more data on drivers (thanks to its techiness) so it can insure cars for less.
  • General Motors: Its acquisition of Cruise Automation for $1B in '16 was transformational. Cruise alone is now worth $19B after it received $1.15B of new investment from Softbank, Honda, and T. Rowe Price. GM's tech division is testing self-driving cars so it can eventually unveil its own Uber-like ride-hailing app of GM cars with no drivers.

Uber's IPO is Friday... That adds another publicly traded company to the fight over your transit dollars. With the taxi and car industries nudged aside by West Coast tech, Uber/Lyft drivers in at least 10 US cities are protesting today. LA's Uberers will turn off their apps for 24 hours, while NYC's are skipping the 7am-9am rush hour.

Swipe

Match pops 8% in Facebook's face (powered by Tinder)

Love has no boundaries... Neither does Match, the dating company that powers dating apps — Tinder, OKCupid, OurTime, and any other warm-blooded potential connection. It enjoyed a 14% revenue jump last quarter driven by 23% growth outside the US. Dating biz abroad will likely surpass North America next quarter thanks to international love trends. Here's what it highlighted:

  • A decline in arranged marriages in India
  • Online dating "stigma" is crumbling in Japan
  • 1st-time smartphone adoption in SE Asia

Tinder gets all the love... The swipe-right legend now has 4.7M users, with growth fueled by this fall's TinderU launch for college kids, and a few other changes.

  • 384K: That's how many new Tinderers joined the platform — Its 3rd best quarterly jump ever.
  • Algorithm tweaks: The more accurately it matches you early on, the more likely you are to pay-up for the premium option.
  • Big new bets: Tinder now lets you start flirting pre-Bonnaroo with fellow music festival singles three weeks before the event. That feature was inspired by the Spring Break one it launched months earlier.

"Hasn't seen any impact"... Match's CEO boldly said that about Facebook's dating feature, which had rolled out in some of Tinder's markets already. Zuck's "Secret Crush" is brand new, and dating hits 14 more countries this year. Match is confident.

Wear

Crocs' earnings show how far foam clogs have come

Koi fish-painted clogs... That's the gem of a shoe featured on page #1 of Crocs' earnings report. The polarizing fashion icon's stock is up 75% over the last year. And even though quarterly sales only rose 4% (which dropped shares Tuesday), the CEO is still enthused about a "great start to 2019." He's into its "norm-core" marketing moves...

Millennials are out... Gen-Z is in. Crocs used strategic marketing to boost its brand rep among Americans under 24. It became the #13 most popular footwear brand for the post-Millennial crowd, up from #38 two years ago. Here's how:

  • Absurdly viral products, like high-heeled Crocs last summer and the new fanny pack Crocs.
  • “Come as you are” ad campaign to get buyers comfortable with the inevitable public judgment of wearing Crocs.
  • A-minus list celebrity ambassadors, like John Cena, Zoey Deschanel, and Drew Barrymore (Drew did an online musical for Crocs).
  • Local foreign ambassadors in China, Japan, and South Korea kept that celeb vibe going (now 30% of sales are in Asia Pacific).

Crocs' comeback strategy: Do less... The brand was close to bankruptcy in ‘09, so it streamlined everything. It shut down locations, ended non-core product lines, and outsourced shoe production to 3rd parties. Going back to “Crocs' DNA” — Clogs and sandals — started its recovery. Now it's comfortable enough for fanny Crocs.

FYI, shaving cream in Crocs is now a thing.

What else we’re Snackin’

  • Petro: Exxon edges in on signing a $53B mega-deal to develop Iraq's oil
  • Sake: Bud-owner AB InBev plans to spin-off its Asian alcohol biz so it can pay down its debts
  • Sick: Mylan slips 24% on disappointing earnings and investigations on price-fixing its generic medications
  • Refuel: TravelCenters of America jumps on its expansion moves to take over gas stations nationwide
  • Vacay: TripAdvisor's revenue-slipped 1%, but "experiences" are becoming its strongest new travel option

Wednesday

Disclosure: An author of this Snacks owns shares of Tesla.

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