Hey Snackers,
Before we even had time to process McDonald’s Grimace shake, a haunting fast-food item has debuted. Burger King Thailand’s “Real Cheeseburger” is a bun, 20 slices of American cheese, and nothing else. Allergy warning: contains cheese.
The S&P 500 hit its highest level in 15 months yesterday, lifted by Big Tech, as investors continued to celebrate cooling inflation. Amazon notched a 10-month high after scoring Prime Day records, and AI-associated names like Nvidia and Alphabet rose too.
Extreme heat bakes the US and boosts AC, highlighting the need for sustainable chill
Some don’t like it hot… but it’s scorching anyway. This year already looks like it’ll be one of the hottest ever (FYI: this month has seen the hottest week on record). In the US, extreme temps appear to be the new norm, with 73M people living in areas that’ll likely see dangerous heat this week. In several dozen cities, the “heat-wave season” is 49 days longer than it was six decades ago. The Southwestern US is really cooking:
Sweat shower: The National Weather Service said parts of California, Nevada, and Arizona were under a severe-weather warning that’s affecting 90M people.
Scorcher: Phoenix is approaching its previous record of 18 days of 110+ degrees. One study said that half of Phoenix residents would need emergency medical attention if a heat wave coincided with a blackout.
Too hot (not) to handle… As the planet bakes, demand for air-conditioners has spiked. Three-quarters of US homes have AC (which uses about 6% of the country’s electricity). That’s been a boon for AC/HVAC giants like Carrier, Lennox, and Trane. By 2050, the International Energy Agency predicts there’ll be 5.6B AC units globally, up from 2B now. The cooled air will save lives, but there’s a catch: AC is responsible for about 4% of the world’s greenhouse-gas emissions, which fuel the climate crisis.
New crises demand new solutions… As AC use increases with the swelter, efficient units are critical to sustaining the electric grid (and the Earth). Carrier teamed up with the startup Transaera to bring its hyper-efficient units to market, and Blue Frontier (backed by Bill Gates’ Breakthrough Energy) is developing an AC that uses salt to suck water out of the air.
Edgy canned-water biz Liquid Death could go public next year in a (less) dry IPO market
H2O IPO… Liquid Death could bring its viral canned water to Wall Street. The six-year-old sparkling-water wiz is popular for its irreverent marketing, gothy aluminum cans, and "Murder Your Thirst” tagline. Its success has attracted investors from Swedish House Mafia to Live Nation. Now The Information has reported that Liquid Death has hired Goldman Sachs for an IPO listing as soon as next spring.
Refreshing: LD said its sales nearly tripled to $130M between 2021 and 2022. This year it expects to double that (FYI: it’s still not profitable).
Liquid likes: Its cheeky promos have turned into a cult fave online, with its pages racking up millions of followers on Instagram and TikTok.
Putting the cool in carbonated water… Booze-free bevvies have sparkled as more Americans shift to a sober-curious lifestyle. Gen Z is driving the trend, drinking about 20% less alcohol than millennials did at their age. But while OG canned-water brands like La Croix and Pepsi's Bubly have seen growth taper, Liquid Death has grown thanks to its presence at festivals, bars, and concert venues. Meanwhile, over a quarter of folks in the US say they’re trying to drink less this year.
The IPO drought seems to be easing… After more than a year of sluggishness in the IPO market, Liquid Death could join the wave of businesses returning to Wall Street. This week, fast-growing beauty tech biz Oddity filed for a $315M initial public offering, and shares of Chipotle rival Cava more than doubled on its market debut last month. With investors hoping that the Fed will halt rate hikes this year, IPO jitters could ease.
The Crypto Catch-up…
⚖️ Judgy… A judge ruled that Ripple's XRP was not a security when sold to the public. The first-of-its-kind ruling is seen as a potential blow to the SEC’s position that most cryptos are securities.
🤔 Sus… Law enforcement arrested former Celsius CEO Alex Mashinsky, saying he misled customers and tried to manipulate crypto prices. Crypto lender Celsius, which imploded last year while owing customers billions, agreed to pay a $4.7B settlement.
🌶️ Spicy… Analytics company Arkham Intelligence said it’ll launch a marketplace to “deanonymize the blockchain” and help crypto police itself (critics called it “dox to earn”). $300M+ in digi assets were stolen last quarter.
What else we’re Snackin’
Cut: Hollywood’s lights are going dark. SAG-AFTRA actors joined the Writers Guild of America in striking against studios, marking only the second double-strike in Tinseltown’s history. Expect less content.
JetSet: Break out the Biscoff cookies: Delta delivered its highest-ever quarterly sales and profit and hiked its outlook thanks to booming international-vacay demand and cheaper fuel.
OTC: The FDA approved the first over-the-counter birth-control pill in the US, Perrigo's Opill. The no-prescription-needed pill is expected to hit pharmacies early next year, broadening access to contraceptives.
Cart: Amazon said this Prime Day was its biggest ever, with shoppers snapping up 375M goodies. Americans spent $12.7B, Adobe data showed. Back-to-school items were hot as parents hunted for early deals.
Minus: Disney CEO Bob Iger said the Mouse House is open to selling its TV networks (like: ABC, ESPN) as cord-cutting continues. It’s invested heavily in streaming, and is reportedly preparing a standalone ESPN streamer.
Friday
- Earnings expected from BlackRock, Citigroup, JPMorgan Chase, UnitedHealth, and Wells Fargo
Authors of this Snacks own shares of: Alphabet, Amazon, Delta, Disney, and Nvidia