Hey Snackers,
Callin’ all Nessie heads: mythical-beast fans are gathering this weekend for a high-tech search (feat. drones and thermal-imaging cams) for Scotland’s infamous Loch Ness monster. Good loch to all.
Stocks slid yesterday, with the techy Nasdaq losing steam despite strong Nvidia earnings bringing the midweek heat. Meanwhile, one Fed official said more rate hikes might still be necessary to beat back inflation.
The right-to-repair movement gets a boost from Apple’s U-turn as Americans support DIY
If it is broke… now you might be able to fix it. A California right-to-repair bill got support from a surprising source this week: Apple. The RTR movement proposes that consumers should have a right to self-repair the things they own (including tech gadgets). Proponents say it’ll save consumers’ money and reduce electronic waste. Apple, a longtime RTR antagonist, has recently softened its stance as the movement takes off:
Reversal: For years, Apple spent millions fighting against RTR legislation. It told Nebraska lawmakers in 2017 that the right to repair iPhones would turn the state into a hacker “mecca.”
Bad Apple? Apple’s been repeatedly accused of planned obsolescence (designing devices to break or become obsolete quickly).
California’s Right to Repair Act hasn’t been officially passed, but CA-headquartered Apple’s support should give it a big boost.
Fix-it culture… The CA bill, which covers consumer electronics and appliances, isn’t just about giving folks who have the confidence and a screwdriver a chance to fix their laptops. It would also require manufacturers to make parts and manuals available to repair shops. RTR legislation has been introduced in 30 states this year alone, with four additional states having already passed laws. Since the FTC said it would ramp up enforcement back in 2021, tech companies like Apple, Microsoft, Google, and Samsung have voluntarily launched self-repair services.
Better to tumble with a rollin’ stone… than get run over by one. As older iPhones pile up in people’s drawers, RTR has gained momentum with Americans: 84% support it. As consumers and lawmakers demand DIY-ability, companies like Apple are left with the option to keep fighting (with lots of $$) or get with the program.
Consulting firms pay new hires to delay their start date to reduce “benchwarmers”
Takin’ a nap year… Deloitte, KPMG, BCG, McKinsey, and Bain have delayed many Class of 2023 hires’ start date to 2024 as the consulting firms wait for business to pick back up. In the meantime, firms are doling out one-time $10K paychecks (KPMG) or $2K monthly stipends (Deloitte) to sidelined hires. Some firms even offer recs on how the consultants-to-be should spend their time. Deloitte suggests volunteering through its partnership with AmeriCorps, while Bain is reportedly giving $40K to MBA hires that work for a nonprofit, $30K to those who learn a new language, and $20K to folks who become yoga teachers or learn how to paint.
Over-consulted: Firms hired aggressively during the pandemic to meet growing demand for their tell-you-what-to-do services. But since then, cost-cutting corps are pausing or canceling projects.
Firms have a five-year plan… and they don’t wanna redo their PowerPoints. The consulting sector needs experienced workers ready to take on projects when demand returns. Delaying start dates keeps talent in the pipeline without bringing employees on full time, an alternative to starting hires who, with few projects to go around, could be left “on the bench.” One new hire at Ernst & Young told Bloomberg they haven’t had a project to work on for 9 of the past 12 months.
Diverting one pipe can change the whole flow… Consulting firms dominate the recruiting booths at top colleges. They hired nearly half of last year’s MBA grads from Yale, Dartmouth, and the University of Virginia. But industries beyond consulting also depend on these firms hiring talented grads: lots of early-career consultants get a few years under their belt and take that expertise to join finance and tech firms.
The Crypto Catch-Up…
🤖 Techy… Bitcoin ordinals sales nosedived by as much as 92% from their May peak. The bitcoin NFTs had juiced transaction volumes, but the plunge — far outpacing NFT declines — suggests the trend’s gone cold.
⚖️ Judgy… A former manager at NFT marketplace juggernaut OpenSea was sentenced to three months in prison for insider trading of tokens. It’s the first NFT insider-trading conviction, and comes as regulators crack down on crypto.
🪙 Coins… Circle said it’ll expand its stablecoin USDC to six additional blockchains and that Coinbase will take an equity stake in the biz. Circle’s recently seen its share of the stablecoin market shrink, and it faces new competition from PayPal’s PYUSD.
What else we’re Snackin’
Wrap: Private-equity firm Roark Capital bought Subway for a reported $9B+, ending decades of family ownership. The footlong icon recently underwent a revamp (picture: in-store deli slicers).
Threads: Shein and fast-fashion OG Forever 21 are collabing, using each other’s platforms to sell fits. Shein’s been teaming up with other retailers as it faces forced-labor allegations and competition from the likes of Temu.
Grounded: The DOJ sued Elon Musk’s SpaceX, saying it discriminated against job applicants who were refugees and asylum seekers. The department wants the rocket launcher to compensate applicants who were denied jobs.
RX: CVS is partnering with drugmaker Sandoz to create a cheaper version of its popular arthritis drug, Humira. CVS was recently dropped by Blue Shield as a pharmacy benefits manager in favor of cheaper alts.
Buck: Shares of Dollar Tree hit a 52-week low after the budget chain said the "challenging" economy was hurting biz. DT says consumers are choosing to buy essentials (like: food, TP) over pricier nice-to-haves.
Friday
Fed Chair Powell to speak at the Jackson Hole Economic Symposium
Authors of this Snacks own bitcoin and shares of: Apple, CVS, Google, Microsoft, and Nvidia