✅ Meta’s verified subscription
Hey Snackers,
Like ordering the wrong-size jeans, but much, much worse: Spain spent $274M on an order of trains that would be too big to fit in the tunnels they were intended for. Fingers crossed for free returns.
Stocks sank yesterday as investor expectations settled on the Fed raising rates higher than forecast, and keeping them elevated for longer. Today's Fed minutes could shine some light on future policy moves.
Meta rolls out a blue-check subscription as social biggies look beyond ads for fresh cash
I'm blue da ba dee da ba da.… Meta launched a subscription service (dubbed: Meta Verified) in hopes of turning blue checks into big bucks. Starting this week, Facebook and Instagram users can pay $12/month on the web (or $15/month on iOS) to gain the coveted blue check mark (after providing a government ID). The Netflix-priced roll-out will kick off in Australia and New Zealand, but other countries are expected to join soon.
- Big guards: CEO Zuckerberg says the service is about “increasing authenticity and security” and that subscribers will get extra protection against fake accounts.
- Small print: To start, Meta Verified badges won’t be available for businesses, but accounts that already have a blue check won’t have to pay to keep it — yet.
Déjà blue… Big tech has scrambled to find fresh revenue as the ad-pocalypse hits profits. Meanwhile, the clamor for social-media clout has created a multimillion-dollar black market for verification (users have spent thousands of $$ for blue-check status). Now Meta’s joining other social titans like Twitter, Reddit, and Snap in launching its own (official) VIP badge service. But results so far have varied:
- Twitter’s Blue subscription, which starts at $8/month, has reportedly attracted fewer than 300K subscribers (less than 1% of its total users).
- Snap’s Snapchat+, which offers features like exclusive badges and story-rewatch counts, has gained 2M+ paid subscribers just over six months after launching.
This is Meta’s anti-Meta move… After burning through billions of dollars on its floundering metaverse ambitions, Meta’s going back to basics to recoup some cash. It’s a boring move, but it aligns with Meta’s new “efficiency” focus. While verified subscriptions could help combat fake accounts, they could also make Meta less accountable in building trust free of charge.
Lime says it’s the first scooter startup to notch a profitable year, thanks to its DIY moves
Scootin’ my way downtown… Electric scooters were the talk of the prepandemic town as venture-capital cash flowed into micro-mobility startups with four-letter names. In 2019, Bird became the fastest US startup to reach unicorn status, followed by its scooter rival, Lime. But valuations plunged as commuting sagged, and startups like Bird, Lime, and Helbiz remained deeply unprofitable.
- Update: Yesterday, Lime said it achieved full-year profitability, which would make it a standout in a sector that’s notorious for burning cash (and giving drivers anxiety).
- The (still private) startup said it’s the first micro-mobility company to post a profitable year after gross bookings grew to a record $466M last year. FYI: Lime’s eyeing an IPO.
- Meanwhile: Rival Bird hasn’t reported a profit since going public, and its shares are down 97% since its SPAC debut in November 2021.
Stockholm scoot commute… Lime says it’s the biggest scooter operator in the US and Europe, and its scooters line streets in cities like Berlin, Sydney, Tel Aviv, and Rio. CEO Wayne Ting said Lime’s global presence is a big differentiator from “weaker” players. But it has another big distinguisher: building its own scooters instead of buying from manufacturers.
DIY is harder, but it can pay off… Lime invested in designing and building its own scooters with swappable batteries, which it says has massively reduced its capital expenditures. Lime added that, thanks to its DIY approach, it has won more than 90% of competitive permits against other micro-mobility companies. In 2019, the average e-scooter lasted only three months. But Lime says its latest fleet of e-scooters and e-bikes lasts more than five years.
What else we’re Snackin’
- Walstart: Walmart unboxed a strong holiday quarter as it benefited from discount-seeking shoppers. But the outlook isn’t so rosy: America’s largest retailer said customers are cutting back on nonessential spending.
- 230: The Supreme Court kicked off a case that could decide if tech companies should be legally liable for the content their algos promote. The outcome could wreak havoc on social giants like Meta and Google.
- Leveled: The pandemic-era home-improvement boom is cooling: Home Depot reported disappointing sales and weak guidance as shoppers increasingly spend on experiences over home decor and DIY projects.
- Coined: Coinbase said quarterly transaction volume dropped, but still beat revenue expectations. Meanwhile, regulators are scrutinizing staking and stablecoins — two ways the crypto exchange hopes to diversify revenue.
- Monoposoft: Microsoft said it'll put its Xbox PC games on Nvidia’s cloud service. The idea: calm regulators’ fears over gaming dominance as Microsoft works to finalize its acquisition of Activision Blizzard.
Wednesday
- Earnings expected from Nvidia, Baidu, Wingstop, TJX, Garmin, Wix, eBay, and Etsy
Authors of this Snacks own shares: of Google, Walmart, Microsoft, Snap, and Nvidia
ID: 2751475