💰 Social Security’s big payday

Break out the boozy bingo… Retirees are getting the biggest boost to their Social Security benefits in over four decades. Starting in January, all Social Security recipients will get a record 8.7% bump, bringing the monthly payouts to just over $1.8K. Every year the US government adjusts Social Security benefits to keep up with the cost of living (see: COLA). Despite a nearly 6% increase in COLA benefits this year, the payout hasn't kept up with inflation.

• Nearly 70M Americans receive SS benefits, and nearly a quarter of recipients 65+ rely on those checks for most of their income.
• Since 1937 nearly every American worker (and their employer) has been required to pay Social Security taxes (taken from every paycheck).
• The current tax rate for people making under $147K is 6%. TBD if that’ll eventually rise because of the bump. Starting next year, the max amount of earnings subject to SS tax will increase to $160K from $147K.

Goodbye, Boca timeshare… The extra cash should be a welcome relief to inflation-strained retirees, since Americans are burning through their savings. Last year, the cost of one of Medicare's most popular coverage plans went up 14.5% to $170/month. Since most older adults opt to have those costs deducted from their SS checks, it leaves them with less $$. Meanwhile, nearly $3T has been wiped from Americans' retirement accounts (think: 401(k)s, Roth IRAs) as stocks have tumbled this year.

All eyes on Netflix… but everyone’s bingeing Tuesday’s earnings, not “Dahmer.” After losing 1M+ subscribers over the past two quarters, Netflix plans to launch a $7/month ad-supported tier next month to revive growth — just weeks before Disney+ plans to launch its own cheaper tier. The commercials, which should average four to five minutes per hour, will cost advertisers big $$ and run on Microsoft tech. Meanwhile, Netflix’s $20B of original-content spending this year could cut into earnings: it expects profits to dip 34% this quarter from last year.

All charged up… Tesla was on a roll last quarter. The EV icon delivered a record 343K vehicles (up 45% from last year) and analysts say it'll likely report $22B+ in third-quarter revenue on Wednesday (which would be up 63%). The accelerators: Tesla hiked prices on all models last quarter, upped production at its Berlin factory, and is ramping up in Shanghai. The speed bump: the record deliveries were below expectations, and there’s a chance Elon’s baby won’t meet its annual target because of logistical snags and high delivery costs.

The metaverse doesn’t have legs… literally. Meta has spent $15B+ on its metaverse, but Horizon Worlds had only about 300K users as of February, and its avatars still don’t have legs. Last week Meta dropped a leg teaser — but admitted it was made using motion capture (read: fake digi-legs). Meta also launched a $1.5K VR headset and a Microsoft remote-work partnership (think: metaverse Excel). But meta-investments are expected to lose $$ for years. Meta’s cutting staff as growth slows (a first), and shares are down 60%+ this year. Zuck put it best: “Legs are hard.”

The gig is up… On Tuesday the US Labor Department announced a proposal that could classify millions of gig workers (think: delivery drivers, janitors, and home-care aides) as employees rather than independent contractors. The final rule is expected next year and would likely boost gig workers’ pay and benefits, while hurting the gig-dependent biz models of companies like Uber, Lyft, and DoorDash. And unlike California’s AB5 bill, this rule would have consequences nationwide.

• Spicy: September inflation was up a hotter-than-expected 8.2% from last year as consumers kept spending through price hikes. That dashed hopes that the Fed might soon simmer down with its aggro rate hikes.
• TikShock: A BBC investigation found that TikTok has been profiting from charitable live streams, reportedly pocketing up to 70% of donations to displaced families in Syria. TikTok is no stranger to accusations of sketchy practices.
• Ricall: Amazon-backed electric-truck maker Rivian said it was recalling 12K cars (nearly all the EVs it’s ever built) over safety concerns. While the recall isn’t likely to dent Rivian’s coffers, it’s hurting its nascent rep.

• Yeikes: Adidas is reviewing its partnership with Kanye West’s Yeezy brand after he went on an antisemitic Twitter rant and wore a “White Lives Matter” shirt. Yeezy generates 10% of Adidas' annual revenue.
• NEOM: Saudi Arabia sentenced three indigenous men to death for refusing to leave their homes to make way for Crown Prince Mohammed bin Salman’s $500B NEOM project, which aims to be a futuristic zero-carbon city.
• Blocked: Despite the NFL’s end-zone pledge to “End Racism,” Black coaches have been systemically blocked from head-coaching positions. Nearly 60% of NFL players are Black, but just 9% of head coaches are.

• Monday: Earnings expected from Bank of America, Charles Schwab, and BNY Mellon
• Tuesday: Earnings expected from Johnson & Johnson, Lockheed Martin, Netflix, and JB Hunt, United Airlines, Albertsons, Hasbro, and Goldman Sachs
• Wednesday: Earnings expected from Tesla, Procter & Gamble, Abbott Labs, IBM, Prologis, Equifax, and Las Vegas Sands
• Thursday: Jobless claims. Earnings expected from Snap, American Airlines, Alaska Air, Union Pacific, Boston Beer Company, AT&T, and Nokia
• Friday: Earnings expected from Verizon and American Express

Authors of this Snacks own: shares of Amazon, Tesla, Netflix, Snap, AT&T, Disney, Uber, Boston Beer, Twitter, and Microsoft

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