🍎 Apple’s triple trillion
![Riding the $3T iWave [Colin Anderson/Digital Vision via Getty Images]](https://cdn.robinhood.com/static_content/mwphzyq69oso/en-US/assets/files/4CEIj5ExeEMSKHYREuI5r6_1_GettyImages-644001501.jpg)
Hey Snackers,
Where’s the undo button when you need it? An NFT trader had a major “fat finger” fail, accidentally listing his exclusive Bored Ape NFT for $3K instead of $300K.
Stocks turned green today, jumping on the Fed’s plans to hike interest rates earlier than expected. Meanwhile, Dr. Fauci said that available Covid boosters work against Omicron, so there’s no need for a new variant-specific shot at this point. The WHO warned that people infected with Omicron can have “the full spectrum of disease,” from asymptomatic infection to death.
Apple is close to becoming earth’s first $3T company, as investors eye VR and iCars
Tim Cook-ing up a triple trillion… It took Apple over 40 years to reach a $1T valuation (in 2018). It took two more years to add another trillion. Just 16 months after that, it's now on the brink of a $3T valuation: Apple could reach that mark this week with its shares already up 35% for the year. Trailing: Microsoft is worth $2.5T, Google is hovering under $2T, and Amazon hasn't hit $2T yet. Driving the Fruit’s stock surge:
- Big growth: Apple is enjoying record sales and double-digit growth across categories, which helped profit soar 64% profit boost in the past year to a stunning $94B.
- iPhone sales, which make up over half of Apple's total, surged in 2021 as the 5G iPhone 12 and 13 fueled upgrades.
- Services (think: App Store, Apple TV+) notched record revenue last quarter as the pandemic continued to boost our scrolly-tappy ways.
Fruit Ninja on my Apple glasses... Apple's present is bright, but many analysts think its future could be brighter. Alongside continued growth from existing products, many analysts are upgrading Apple thanks to potential growth from products that may not even exist yet:
- iGlasses: Some analysts expect that Apple will launch AR headsets by late 2022. Think: sleek smart glasses that layer apps and info over IRL views.
- iCar: Apple's long-rumored self-driving-car project has hit many roadblocks, but it's reportedly finally on track to arrive by 2025.
Apple holds a key to the future… even though its success is far from guaranteed. Apple hooked us on its connected ecosystem of hardware and services. If AR and VR are the future of the internet, Apple’s tech prowess and fan base could be a gateway to get consumers in. But that’s a big if — Apple hasn't even revealed plans for an AR device. Plus, every effort at smart glasses (from Google Glass to Snap Spectacles) has flopped so far. And of course, there's always the risk that Apple could tank for various reasons. Think: getting on China's bad side or losing control of its App Store on regulatory pressure.
Kellogg replaces striking workers, even as labor gains leverage
Tony the Tiger turns a frosty shoulder… Earlier this week, Kellogg said it would replace 1.4K striking union workers at four US cereal factories after failing to reach a contract agreement. Workers have been striking since early October, demanding stronger benefits and higher pay after Kellogg’s business boomed on your pandemic snacking.
- For nine weeks, Kellogg has employed temp workers and imported cereal from as far away as Australia to keep Froot Loops on US shelves.
- Last week, Kellogg’s workers rejected a final offer that gave veteran workers a 3% pay bump and new workers a path to higher pay — but offered no new health benefits.
We’re (still) hiring… Job openings hit record highs this year as workers delayed returns and looked for better options. So corporate giants like Walmart, Amazon, and McDonald’s are pumping up wages and benefits to get you in their uniforms. This summer, wages jumped by the most in 20 years, though rising inflation is eating away at some of those paycheck gains. Worker strikes are yielding results:
- 10K striking Deere workers rejected two offers in October before accepting a contract that gave instant 10% raises and $8.5K bonuses. Frito-Lay and Kaiser-Permanente also struck deals with strikers.
- Kellogg is the first major example this year of big biz fighting back by replacing workers. It’s confident it can make Pop-Tarts without union labor, and last week it even raised its yearly sales forecast.
Workers have the upper hand… but employers don’t have to shake it. Labor is expected to stay tight in 2022, so worker strikes could continue — and employers might strike back. But there’ll likely be consequences for employers who do. President Biden and other Democrats want to make it illegal to replace strikers. And we’ve never seen this before: Pro-union TikTok and Reddit users have moved to sabotage Kellogg’s effort to hire replacement workers by clogging its hiring portal with bogus applications.
What else we’re Snackin’
- Poke: Pfizer said its not-yet-approved Covid pill was 89% effective in reducing virus deaths and hospitalization rates, and is likely to work against Omicron.
- Merge: Vox is merging with Group Nine Media to form a new conglomerate that includes New York Magazine, PopSugar, The Verge, Eater, The Cut, Thrillist, and The Dodo.
- Woof: Dogecoin surged over 20% after Elon Musk tweeted that Tesla would make some of its merch available for purchase using the crypto “& see how it goes.”
- eJordans: Nike bought virtual shoe studio RTFKT, as it positions itself for metaverse shopping (think: AF1s for your avatar).
- Delhi: Netflix slashed prices in India by more than half, as Disney and Amazon streamers continue to beat it in the country of 1.4B.
- Bag: Kroger is reportedly nixing some Covid benefits for unvaxxed employees and adding a $50/month surcharge to health plans for unvaxxed nonunion workers.
Wednesday
- Fed Chairman Jerome Powell press conference
- November retail sales
- Earnings expected from: Toro
Authors of this Snacks own shares of: Apple, Snap, Google, Pfizer, Netflix, Walmart, Disney, Tesla, Microsoft, and Amazon
ID: 1959280