Hey Snackers,
Stanford students developed RizzGPT, smart glasses that listen in on your convos and suggest the right things to say during first dates and job interviews. Because the best way to appear charming is to be bottle-fed answers by a bot while wearing a monocle.
Stocks dipped yesterday after the Fed bumped interest rates by another 25 bps (as expected) and hinted it could be done with hikes. With the latest increase, the benchmark rate will hit a 16-year high. Investors hope for cuts, but the Fed suggested it’s not on the 2023 to-do list.
Ford crushes earnings expectations as trusty trucks offset major EV losses
Loading up the F-150… Ford's famous truck has been the best-selling vehicle in America for nearly a half century, and it didn’t disappoint last quarter either. The auto OG just unloaded expectation-smashing results, led by its old-school passenger cars and commercial-fleet vehicles like delivery vans. While Ford’s EV biz racked up hefty losses, strong earnings from the legacy divisions let the Michigan automaker drive home a $1.8B profit.
- Ford Model E: Its electric division lost more than $700M, and the company expects it’ll lose $3B this year. FYI: this is the first quarter Ford started breaking out EV results.
“Take my [Ford] to the Old Town Road”… and make it electric. While gas trucks are Ford’s profit poodles, it isn’t skimping on its e-aspirations. It said it would boost spending on EVs to $50B through 2026, with plans to churn out 2M+ EVs/year by then. Last year Ford sold 61K+ EVs in the US, making it America’s #2 best-selling EV maker after Tesla. But it sold only 12K EVs last quarter, and sales of its electric Mustang were down 20%. This week it also slashed the Mach-E’s price for the second time this year.
Being boring can help you be buzzy… Ford’s “boring” legacy cars are bankrolling its money-losing EV ambitions. CEO Jim Farley said Ford is “boringly predictable when it comes to execution and delivering financials, but extremely ambitious in… creating the Ford of the future.” Its gas-car biz could sustain the company until the EV side is profitable, giving it an advantage over pure-play EV rivals. This week, e-truck startup Lordstown Motors warned it could go bankrupt, while the likes of Rivian and Lucid are struggling.
Airbnb revamps price displays to quell frustration as summer travel (and hotel competition) heats up
$200 rental, $100 cleaning fee… Yesterday Airbnb rolled out dozens of new features and upgrades to keep travelers checking in this summer. The rental rockstar has 4M+ hosts worldwide and expects 300M guests this year. But complaints have piled up as hidden fees and high prices make booking frustrating. Now:
Price check: Airbnb rentals will display the cost per night, fees, and taxes all at once. Plus, guests in the US and Canada can start using Klarna to buy now, pay later for stays over $500.
Couchsurf: A "Rooms" option lets budget-conscious travelers stay with hosts at an average rate of $67/night. “Host Passports” will display fun facts (see: WFH cat mom).
King-size: Airbnb dropped record earnings in February, notching its first profitable year, and is forecasting even stronger results this year.
Check-in and chores… Airbnb booking surged during the pandemic as it benefited from the remote “work from anywhere” trend. But a flood of users on social media and forums like Reddit complain about pesky chores (see: vacuuming, dishes) coupled with sometimes staggering cleaning fees. Now, as travel recovers and guests get pickier about perks, good ol’ hotel chains are starting to catch up.
Convenience isn’t always convenient… While Airbnb can offer more flexible prices and broader options than hotels, the fine print can make booking more trouble than it's worth. Meanwhile, traditional hotel chains offer the comfort of consistency (think: cleaning, room service) and rewards programs that incentivize loyalty. By addressing its users' qualms, Airbnb can avoid getting ditched for better options.
What else we’re Snackin’
Grande: Starbucks brewed up stronger-than-expected growth, helped by the reopening in China (its second-largest market). The cold-brew king reported more foot traffic as iced-coffee szn kicks off.
Whales: Reps AOC and Matt Gaetz introduced a bill that would bar congresspeople and their spouses from owning or trading stocks. Insider-trading concerns have led to growing public scrutiny.
Whopper: Burger King and Tim Hortons parent Restaurant Brands super-sized analyst estimates, reporting double-digit sales spikes. Yum Brands (the KFC and Taco Bell owner) underperformed despite a rebound in China.
OhZucks: The FTC proposed rules that would block Meta from profiting off data it collects from minors. The regulator has long-standing beef with Meta, including fining it $5B in 2019 over its privacy practices.
AI-lert: TikTok is building an AI-generated disclosure for videos. The feature, which TikTok hasn’t confirmed or denied, could prevent deepfakes (like: AI Drake) from being confused for the real deal.
Thursday
- Earnings expected from Coinbase, Moderna, Royal Caribbean, Peloton, ConocoPhillips, Shell, Planet Fitness, Wayfair, Kellogg, AB InBev, PG&E, Hyatt, Papa John’s, and Shake Shack
Authors of this Snacks own shares of: Moderna, Starbucks, Tesla, Uber, and Yum Brands