⭐️ The streaming Emmys
![_Netflix takes home the crown [roman makhmutov/Moment via GettyImages]_](https://cdn.robinhood.com/static_content/mwphzyq69oso/en-US/assets/files/3EmpP26KsIPzmaHhJlgsnK_1_GettyImages-597075671.jpg)
Hey Snackers,
Sam Adams' new beer is so strong, it's illegal in 15 states (28% ABV). What should be illegal: the suggested retail price of $240 per bottle.
The portfolio already knows: stocks took a big red plunge yesterday. The tech-filled Nasdaq index dropped more than 2%, and the S&P 500 and the Dow weren't far behind. To top off the red day, Bitcoin fell as much as 10%. Investors were worried about some big trouble brewing in China's property market. More on that below.
Chinese real estate giant Evergrande could cause global turmoil if it can’t pay its bills
Not the boat that blocked the Suez… But this company’s causing big issues, too. Real estate giant Evergrande’s shares sank 10% yesterday, contributing to a global stock plunge. Evergrande is the 2nd largest property developer in China, with a $30B market cap — but it owes $300B to partners. With $83M in payments due on Thursday, analysts worry Evergrande could default and affect the global economy.
- 1.4M = Buyers waiting for their pre-purchased apartments to be built.
- 85% = Drop in Evergrande’s stock value in the last six months.
- $8B = How much Evergrande raised this year — just $292B short of its debt obligations.
Charge it to the card… Evergrande entered the real estate biz right after China embraced private home ownership in 1998, when homes became a symbol of China’s booming middle class. But Evergrande borrowed heavily to grow, which led to a cash crunch when regulators started cracking down on debt last year. Evergrande has asked employees for loans and tried to pay bills with half-built houses. Now, all eyes are on regulators:
- It wouldn’t be China’s first bailout… Regulators took over the once-thriving Anbang Insurance Group three years ago due to massive IOUs.
- Too big to (fully) fail... Regulators let Evergrande renegotiate payment deadlines earlier this month, signaling their willingness to keep the company alive.
It’s not the whale, it’s the splash… If a big fish like Evergrande goes belly up, its lenders and investors — including HSBC, BlackRock, and UBS — could lose big money. Businesses that work with it could also suffer (think: paint suppliers). But the ripple effects could be worse: Since three-quarters of China’s wealth is in real estate, Evergrande’s collapse could cause stock sell-offs across China’s real estate sector — or potentially a global sell-off, like Lehman Brothers’ collapse did in 2008. But, some analysts don’t expect Evergrande’s financial struggles to trickle into other parts of the world.
Netflix reigns supreme at the Emmys as streamers double down on content at scale
A Royal Flush… Netflix has taken its obsession with royal titles into the real world, bringing home the most gold at Sunday’s Emmy awards. For the first time, streaming services won the most coveted categories, like Best Drama and Best Limited Series.
- Netflix won a whopping 44 Emmys for its original shows including “The Crown" and “Queen’s Gambit,” tying a record last set by CBS more than 40 years ago.
- AppleTV+ became the first streamer to win Best Comedy for “Ted Lasso.” It was only the Fruit’s second-ever Emmy appearance.
- Disney+ received 71 nods but only got the primetime gold for “Hamilton.”
- HBO & HBO Max snagged 19 wins, including four for crime series “Mare of Easttown,” starring Kate Winslet.
Virtual rewind… Netflix first made its mark in 2007 when it ditched DVDs for digital play buttons. In 2013, its show "House of Cards" became the first online-only TV series to nab a primetime Emmy, setting the stage for other streamers. Fast-forward:
- In 2019, Disney+ and AppleTV+ made their streaming debuts with originals like “The Mandalorian" and “The Morning Show.” Last year, HBO Max debuted with 10K hours of shows.
- This year, director Steven Spielberg, who once tried to boot Netflix from the Oscars, inked a multi-year production deal with the Flix this summer.
(Original) Content is King… and streamers are serving it like royal scones. Streamers have prioritized original content as a way to dominate a field once ruled by Hollywood OGs. This year, the Flix will spend $17B on original content, up from $11.8B last year. Meanwhile, Amazon’s total content spend hit $11B last year. Netflix also plans to make 90 original films per year –3X more than Lionsgate’s most productive year. Beyond scale, Netflix has data on your viewing habits, plus a smart recommendation engine to keep you clicking “next."
What else we’re Snackin’
- VaxKid: Pfizer says its Covid vaccine is safe and effective in kids ages five to 11, a relief for parents as kids return to classrooms.
- RT: Twitter agreed to pay nearly $810M to settle a class-action suit alleging it intentionally misled investors about user engagement in 2015.
- Stress: Dems are pressing ahead with a vote to suspend the US' borrowing limit, the GOP is opposed, and the federal gov't will run out of cash if nothing happens.
- Homey: Lennar, America's #2 homebuilder, said its quarterly profit more than doubled from last year as the housing boom continues.
- Polly: Aka Brands, the owner of e-fashion giant Princess Polly, hopes to raise over $250M in its upcoming IPO.
- Bites: TikTok-parent ByteDance added a 40-minute daily time limit for kids under 14 on Douyin, the Chinese version of TikTok.
Tuesday
Earnings expected from Adobe, FedEx, AutoZone, Lennar, Stitch Fix, Cracker Barrel, InnovAge, and Aurora Cannabis
Authors of this Snacks own: Bitcoin and shares of Disney, Netflix, Twitter, and Apple
ID: 1844672