Hey Snackers,
Guac can be extra in more ways than one: Chipotle and e.l.f. are collabing on a makeup collection, complete with hot salsa lip gloss and Chipotle bowl-themed eyeshadow palettes. The avo beauty blender is in a league of its own.
Yesterday, the Nasdaq fell into correction territory as tech stocks continued their plunge. Tomorrow, the House is expected to make a final vote on President Biden's $1.9T relief bill, which includes $1.4K checks. It could get green lit this week.
Discord nearly triples sales by doing the opposite of Facebook
Choose your server... Discord is the six-year-old social platform that hosts everything from your Fortnite marathon to your cousin’s 3rd-grade birthday party. It's kind of like Zoom, Slack, and Twitch — all in one. Discord started as a chat tool for gamers, but has expanded to all kinds of virtual meetups during the pandemic. Think: group Love Island binges, homework clubs, and houseplant interest groups. And it's crushing it.
- ~3X: Discord nearly tripled revenue last year by selling subscriptions with exclusive perks.
- 140M: Discord's monthly users, which have doubled during the pandemic.
- #2: In January, US adults spent more time on Discord than on Twitter, Snapchat, and Reddit. It was 2nd only to Facebook among social networks.
- $7B: Discord’s valuation doubled in December (yep, still private).
Discordant with the norm... Discord is designed for real-time communication — not scrolling through days-old hiking posts. But the biggest difference between Discord and other social networks is how it makes money.
- Discord makes 0% of its sales from ads. Meanwhile: Facebook, Snap, Twitter, and Pinterest each make more than 90% of their sales from ads.
- For $10/month or $100/year, Discord users can subscribe to "Nitro" for perks like special emojis and clearer video resolution. Discord is also testing other features, like original multiplayer games and e-stickers.
Ads are addicting, subscriptions are nourishing... for most social biz models. Social media companies make the product "free," but use your data to target you — and then they can't stop. The ad-based biz model has gotten more heat lately (hence: Google removing third-party cookies). So social companies are venturing beyond ads: Twitter is launching a paid “Super Follow” subscription, and Clubhouse plans to ship creator subscriptions. Paid subs are harder to sustain, but they're a reliable meal of monthly revenues if they work. And it’s easier to start with subscriptions than charge later on.
Gatorade launches a fitness wearable (but not for the reason you might think)
Does it come in yellow flavor?... Gatorade doesn't want to just be the thing you bring to soccer matches — it wants to be the thing you wear at them. The Pepsi-owned brand just pulled an Apple: it's launching its first wearable.
- Gx Sweat Patch: Looks like a cool band-aid, actually a ~$13 single-use patch that measures your fitness levels (by pulling the data out of your sweat).
- Gx App: You scan the patch on Gatorade's app post-Zumba sesh to reveal your unique sweat profile. Think: sodium loss and sweat rate.
No, I don't want a Pepsi instead... Coke may be winning on soft drinks, but Pepsi's winning on sports drinks: Gatorade dominates the US sports drink category with a whopping 72% of market share — Coke’s Powerade lags as #2 with a 16% share. That's probably why Pepsi mentioned Gatorade 8X during its last earnings call (more than Mountain Dew). Now it's moving into pseudo-Fitbit territory to seize on a growing trend: personalization.
Personalization = the ultimate product puppy... From apps that track your sleep, to watches that track your heart rate, we're becoming obsessed with knowing more about ourselves. That's why Gatorade's CEO says personalized products can be sold at a premium (read: more $$$). Companies that customize products are seeing faster sales growth. Personalization can also drive loyalty, by making us feel extra special. Gatorade’s end goal with Sweat Patch isn’t FitnessTech — it’s personal connection.
What else we’re Snackin’
- Stim: $1.4K checks are included in Congress’ new stimulus package — here's who could be eligible.
- Unstitch: Stitch Fix shares plunged 23% after the personal styling subscription service lowered its sales forecast for the year.
- Lips: The CDC says that people who are fully vaccinated don't need to wear masks indoors (with some exceptions).
- SpaceOut: Virgin Galactic stock tumbled after its billionaire chairman Chamath Palihapitiya sold ~$213M worth of shares.
- Takeoff: GE is reportedly nearing a $30B+ deal to combine its aircraft-leasing biz with Ireland’s AerCap (just in time for St. Paddy's).
Tuesday
- Earnings expected from Stitch Fix and Dick's Sporting Goods
Authors of this Snacks own shares of: Snap
ID: 1555632