House of Gucci... Lux brands took a hit when lockdowns curbed the need for Balenciaga sneaks and Prada bucket hats. Last year, Gucci and Yves Saint Laurent owner Kering had a record $20B comeback. Gucci sales jumped 30% last quarter thanks to big marketing and huge China demand. Luxe giants like Kering and LVMH are well positioned as prices rise: their customers are less price sensitive, and higher prices = #exclusivity. Now lux brands are looking to the metaverse. Last year, a Gucci digi-purse sold on Roblox for nearly 20% more than the leather version.
Google searched... its soul. Digital ad giants are nervous. Last week Google said it would stop advertisers from tracking Android users, after Apple made a similar move last year. Since Android phones make up 70% of global smartphones, the change could cut into sales at Twitter, Snap, Pinterest, and Meta. This year Meta expects to lose $10B in ad revenue from Apple’s update, and its stock has fallen 45% from its September peak. Meta has told investors to stay tuned for its meta investments, but they may take a while to offset slowing ad sales.