Hey Snackers,
When cat food meets high-end Italian dining: Pet food maker Fancy Feast is launching an upscale pop-up restaurant in NYC so you and your feline can enjoy pawsta together.
Stocks gained again yesterday despite news that the US economy shrank for a second-straight quarter — more evidence that the US could be in a recession. After market close, Amazon stock surged on rosier-than-expected sales (despite another quarterly loss). Apple stock popped after it reported record third-quarter revenue despite slowing growth.
A slimmer version of Biden’s Build Back Better bill is back on the table, lighting a path for solar companies
Build Back Better is back… Well, almost. Yesterday Democratic Senator Joe Manchin struck a surprise deal with Dems to support a climate and tax bill, reopening the door for some — but not all — of Biden’s agenda. Manchin initially opposed Biden’s “Build Back Better” plan on fears it would spike #flation, but says the new bill will do the opposite:
- The Inflation Reduction Act is tinier than Biden’s $2T+ proposal, which also covered education and health. But it aims to spend a record $369B on climate programs and reduce the deficit by $300B. How? By raising $739B in taxes, largely through a 15% minimum tax on mega-corporations.
- What’s included: $60B for clean energy infrastructure (think: wind turbines and EV factories), $60B for climate adaptation in hard-hit communities, and more.
- For consumers: The bill would extend the $7.5K tax credit for new EVs, and add new tax credits for home solar panels and used EVs.
Renewed hope for renewables… In recent months, renewable companies’ earnings have been clouded by rising prices: the cost of key solar materials has nearly tripled from last January. But solar demand’s still strong, and this bill could boost green investment:
- Sunny: Shares of solar companies like Enphase Energy, First Solar, Maxeon Solar, Sunrun, Sunnova, SunPower, and SolarEdge all surged yesterday.
It’s a historic step for climate investment… But still just the beginning. Experts say the new climate bill could pass as early as next week, if it gets the support from all 50 Democratic Senators (wild-cards like Kyrsten Sinema could kill the deal). It’ll still take years for America to overhaul its old energy infrastructure, but certain companies and consumers may benefit right away.
Pfizer’s sales soar to a record, driven by vaccines and Covid pills as cases resurge
Shoot your (multi-billion dollar) shot... Pfizer's sales hit a record high last quarter, surging 27% from last year to nearly $28B. More than half of that revenue came from Covid shots or Covid treatments. Meanwhile, total profit ballooned 78% to nearly $10B.
- Pfizer's Covid vax (still the most popular in the US by far) brought in $8.8B in revenue. Compare that to J&J, which made just $544M from Covid vax sales last quarter.
- Pfizer's antiviral pill Paxlovid, used to prevent severe sickness in high-risk Covid patients, brought in $8.1B. Merck also reported strong growth yesterday, partly thanks to $1.2B in revenue from its Covid pill Lagevrio. Merck's total profit 3X'd from last year.
- Still: Pharma stocks tumbled yesterday after Senate Dems reached a deal they say will lower prescription drug costs.
Halloween and vaccines... If it seems like everyone’s getting Covid, that’s because the dominant BA.5 Omicron subvariant is more transmissible than past ones. As Covid resurges, the FDA has asked vaccine-makers to target dominant subvariants for a wave of fall boosters. Last month, Pfizer and its vax partner BioNTech struck a $3.2B deal with the US gov't to deliver 105M doses ahead of an increasingly-likely fall vaccination campaign.
Out of mind ≠ out of sight… The pandemic used to dominate every headline and conversation. It isn’t monopolizing our daily lives like it was two years ago — from loosening restrictions to lessening news coverage. Still, the US is dealing with 130K new daily Covid cases and a rising death toll. For reference: daily cases are at the same high level that they were in November 2020. Now, health officials worry that the US will face an even bigger wave when summer ends — and vax-makers will be key to tackling it.
What else we’re Snackin’
- Gassy: Shell posted its best quarter ever, raking in $11.5B in profit as fuel prices soared. To reward shareholders, Shell bought back $8.5B of its stock in the first half of the year and plans for $6B more this quarter.
- Runway: Saks Off 5th is partnering with Rent the Runway so shoppers can buy pre-owned designer pieces on its site. The global secondhand market is expected to double to $82B by 2026.
- Rent: Hertz shares surged 16% after the airport car rental OG posted better-than-expected earnings thanks to summer travel demand and rental price hikes.
- Cable: Comcast failed to add new broadband customers for the first time ever, sending shares down 9%. Despite cord-cutters, revenue grew thanks to its NBCUniversal theme park and studio biz.
- Carrier: JetBlue (finally) reached a $3.8B deal to buy Spirit Airlines after Frontier’s bid failed. If approved by the Justice Department, the takeover would create the country’s fifth-largest airline.
Friday
- Earnings expected from: Exxon, Chevron, Procter & Gamble, and Caterpillar
Authors of this Snacks own: shares of Apple, Exxon, Shell, Amazon, Comcast, and Spirit
ID: 2319407