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Hey Snackers,
Malls arenât dead â theyâre just for cheesecake now. Restaurants have become the primary reason customers head to the mall, overtaking shopping and pics with Santa.
Stocks plunged on Halloween, the spookiest daily drop for the S&P 500 in about eight weeks. Investors werenât thrilled with earnings from Meta and Microsoft, and Apple stock fell after the bell â though iPhone sales rose for the first time in two quarters and revenue hit a Q4 record.
âď¸ Daylight-quizzing time: Enjoy that extra hour of sleep on Sunday, but till then take this weekâs Snacks Seven quiz. Hereâs the first q:
What product did Starbucks discontinue? (Check your answer.)
Peloton stock climbs 25% as the company speeds into subscriptions
Spinning up changes⌠Peloton stock spiked yesterday like your heart rate during a Backstreet Boys ride. Shares of the embattled spin-bike maker popped as much as 25% yesterday after it beat earnings expectations and announced a new CEO, though it did give a muted holiday forecast. Peter Stern, the president of Fordâs subscription unit and a cofounder of Apple Fitness+, is set to take the helm at Peloton in January.
Worked out: Though the companyâs quarterly results werenât great, investors sent the stock soaring after hearing about the new boss and a shrinking loss.
The stats: Pelotonâs revenue fell from the previous quarter and was also down year over year, though its net loss shrank significantly to $1M.
Pelotonâs stock is still down 95% from its pandemic peak, in early 2021, when gyms were closed and stimulus-flush folks were scooping up bikes to sweat on at home.
Hard pivot⌠Pelotonâs hopeful that Stern can spin it in the right direction as the fitness-tech company leans into subs over hardware. Its subscription revenue is now more than double its sales from fitness equipment. In 2022, Peloton announced it would stop making its own hardware and outsource to a Taiwanese manufacturer to save money on pricey US production. By that point, it had over $1B worth of unsold bikes and treads sitting in storage as pandemic demand dropped off. Its pivot to subscription revenue (think: classes with energetic instructors) has helped it shrink losses, though its subs fell last quarter to 6.2M.
Branching out is key to growth⌠Peloton started as a direct-to-consumer company (you could buy its equipment only from its website or stores). But itâs made distribution deals with retailers like Amazon, Dickâs Sporting Goods, and, last week, Costco. And by focusing on selling subscriptions, itâs also hoping to lure customers who donât have Peloton equipment.
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Online car vendor Carvana crushes earnings as Americans shift to used cars
Stocked up on quarters⌠for Carvana vending machines. Yesterday shares of the online used-car seller surged 19% after it sped through Wall Street's Q3 estimates. Carvana lets buyers shop, sell, and trade cars online. Customers can get their cars delivered at home or pick them up at an eight-story car-vending machine. Carvanaâs quarterly sales nearly doubled to $3.6B as its costs fell. Rival CarMax also beat estimates last month after price cuts boosted sales for its used-car catalog.
U-turn: Carvanaâs made a comeback since 2022, when shrinking sales and mounting debt drove it to the brink of bankruptcy.
Still driving dadâs pickup⌠Car prices have soared as pandemic disruptions led automakers to build about 8M fewer cars, which kept supply tight and prices high. Today, the average price gap between new and used vehicles is at a record $20K, with fewer affordable whips left on dealer lots. Cars priced under $25K are fairly rare, with sales in that range down 78% over the past five years. So Americans are holding onto their cars longer than ever: the average vehicle on the road is nearly 13 years old.
Consumers are shifting gears⌠Folks are gravitating more toward used vehicles, whose prices are down 5% from a year ago (versus 1% for new cars). While retailers of pre-owned cars have had a rough ride, easing interest rates and lower demand for new models are jump-starting biz. Carvana boosted its annual earnings forecast, saying it expects stronger car sales in Q4.
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What else weâre Snackinâ
Comcast said itâs thinking about spinning off its NBCU cable networks like MSNBC, Bravo, and Syfy into a new public company.
EstĂŠe Lauderâs stock had its worst day ever after the beauty giant withdrew its 2025 outlook and slashed its dividend.Â
OpenAI launched a ChatGPT search feature, putting it in direct competition with Google and Microsoftâs Bing, which have both infused AI into their engines.Â
Uber shares fell 9% after its gross booking came in short of expectations, though profit surged and revenue growth beat estimates.Â
DoorDash had its first profitable quarter as a public company, breaking a four-year losing streak, and announced a Lyft partnership (their common rival: Uber).
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Snack Fact of the Day
The house from 1979âs âAmityville Horrorâ sold for $1.5M last year
Friday
Employment and manufacturing data
Native American Heritage Month begins
Earnings expected from Chevron, FuboTV, Exxon Mobil, Wayfair, and Charter Communications
Authors of this Snacks own shares of: Apple, Amazon, Alphabet, Comcast, Exxon, Microsoft, Starbucks, and Uber
Advertiser's disclosures:
š The S&P 500 is not an exact list of the top 500 U.S. companies by market cap because the index includes other criteria.
² All ETFs are subject to risk, including possible loss of principal.
Before investing, consider the funds' investment objectives, risks, charges and expenses. To obtain a prospectus or summary prospectus which contains this and other information, call 1-866-787-2257, download a prospectus or summary prospectus now, or talk to your financial advisor. Read it carefully before investing.
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In addition, as described in the Offering Circular, the Company retains the right to continue the offering beyond the Termination Date, in its sole discretion.
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