Cold Snap Incoming For Online Ad Spending | The Daily Peel | 10/24/22

Oct 24, 2022 | Peel #322

Give your silver bananas to...

Market Snapshot

If you bought $SNAP right after its hotly-anticipated IPO, you’d have lost about 3/4 of your money as of today. Its DAUs are still growing, but its ad partners are tightening their belts. More eyeballs doesn’t mean much if you can’t monetize them.

The rest of the market fared much better Friday, with major indices closing the week in the green after a slew of positive earnings reports.

market summary

Banana Bits

Twitter employees might want to dust off their resumes after Elon pledged to cut 75% of its workforce
Joey B’s gift to student borrowers held up to a challenge in the Supreme Court
The federal government’s budget deficit was cut in half in 2022, totaling a measly $1.4 trillion
The mighty Mississippi River is drying up at an alarming pace, threatening cargo supply lines

Keep The Peel Going...

Pulling all-nighters during a merger is stressful enough. Worry less about sharing sensitive documents and data with Caplinked, the fastest-growing data room available today.

Whether your client is a sovereign wealth fund or a mom & pop shop, our digital data rooms have the tools you need to get the deal done.

When you request a quote for an upcoming deal, we’ll send you a $50 UberEats or Grubhub gift card. Act now!

Request a quote now

Macro Monkey Says

The Dreaded Yield Curve Inversion

Other than crypto millionaires selling Ferraris, an inverted yield curve is about the best recession signal there is.

It’s not foolproof, but once short-term bonds are paying more than the long-term variety, slower growth is almost guaranteed.

The yield curve inverted last week, with the 2-year now paying more than the 10-year
Yields and stocks have oddly been moving in tandem recently after having very different years—the 10-year yield has gained over 250 bps since January, while stocks have cratered
The inversion is slight, igniting a debate around whether a deeper inversion is necessary for it to really represent a recession alarm
Stocks look to have some sort of recession already priced in, so a 2023 recession may not necessarily tank the market

Meme of the day

Source

What's Ripe

The Boston Beer Company ($SAM) ↑ 19.67% ↑

$SAM proved the haters wrong after beating top and bottom line estimates in Q3, driven by higher prices and tighter operating expenses
Twisted Tea and Hard Mountain Dew are performing well, offsetting lagging performance in its Truly and Angry Orchard brands

AMC Entertainment Preferred Equity ($APE) ↑ 9.88% ↑

$APE stans are down almost 60% since shares were issued in late August but were given a shot in the arm Friday
The beleaguered theater chain still has $1 billion in the bank, and investors like the stock ahead of its upcoming Q3 earnings release

What's Rotten

Snap ($SNAP) ↓ 28.08% ↓

Snap is one of several ad-based companies buckling under Apple’s iOS privacy update, which limits its ability to track your every move and sell ads accordingly
It’s not giving guidance for Q4 other than saying revenue growth will probably continue to crater

Nat Gas Futures (NG00)

It’s been a helluva ride in the nat gas market this year. In mid-September, prices were up 3x from the start of the year.
Since that point, they’ve been cut in half. A combination of warmer-than-expected weather and higher storage levels triggered the collapse.

Data Peel

Source

Thought Banana

Higher Education Is A-Changin’

The promise of spending four years getting plastered, learning a few things, and coming out the other side with an earnings-boosting degree is eroding.

Younger generations are looking at absurd Millennial student debt burdens and the meager earning power those degrees have granted them, and they are passing on the traditional higher education route.

Schools are scrambling to respond.

“About 1.5 million fewer students are enrolled in college than before the pandemic”
Online schools and HBCUs have been the winners of the shift
Until the ROI of college starts to make more sense, high schoolers will probably continue to opt for coding boot camps and online certification programs to access higher earnings without the ball-and-chain of 6-figure debt

The big question: Will legacy universities adapt to the shifting landscape, or will private companies make inroads into the higher education sector with cheaper training programs that basically guarantee higher wages?

Banana Brain Teaser

Friday — He has married many women but has never been married. Who am I?

A preacher.

Today — It’s 100 bananas off the M&A Modeling Course. LFG!

He has one and a person has two, a citizen has three and a human being has four, a personality has five and an inhabitant of earth has six. What am I?

Shoot us your guesses at [email protected] with the subject line “Banana Brain Teaser” or simply click here to reply!

Happy Investing, Patrick & The Daily Peel Team Was this email forwarded to you? Sign up for the WSO Daily Peel here. ADVERTISE // WSO ALPHA // COURSES // LEGAL

1 Comments

WSO Monkey Bot

O

4y

Sed aliquam expedita non sit. Voluptatem sed eum laborum vel numquam ex. Dolorum molestiae voluptatum exercitationem provident aliquam sunt. Dolorum sunt placeat ea ut earum voluptate. Perferendis aut quod rem voluptas nisi perferendis dolores. Pariatur iste asperiores dolores non incidunt.

Earum omnis repudiandae aut perferendis tenetur sed. Dicta et culpa dolores veritatis. Laborum dolore at aut aut dolorem porro numquam. Placeat consectetur et laudantium esse ut laborum tempore quasi.

Et rerum qui sit sit. Occaecati praesentium pariatur natus ut enim ipsam similique ut. Qui non id itaque rerum illo veritatis id optio. Repellendus tempore est est. Vel aut labore et suscipit aut. Qui numquam nemo quis sequi amet. Velit laboriosam voluptas quia ex.

Aliquid soluta corrupti saepe ut voluptatem numquam. Praesentium laboriosam vel recusandae quo. Veniam soluta atque sit cumque et minus quaerat doloribus. Et sunt ut nulla iste debitis error. Placeat rerum dolore quae asperiores. Corporis repellendus iste minus eius repudiandae quo quas est.

+23	AI in Consulting - Let's Debate	5	1d
+13	Which Asset Classes Are Best Suited for Tokenization?	3	4d
+13	Only 2 Lucrative Paths in Finance?	6	4d
+11	Barclays Corporate Banking Pay and Work Culture?	16	1w
+9	RWA Tokenization: Where Is the Real Institutional Value?	1	3w
+9	Is tokenized real estate or shipping better for portfolio diversification?	2	2w
+9	Could RWA Tokenization Actually Change How Private Markets Work?	1	2w
+9	Macro / Rate Cycle	2	5d
+9	“Wall Street is hemorrhaging young talent”	1	3d
+9	If you don’t chase prestige your selfish	0	1h

1	redever	99.2
2	Secyh62	99.0
3	kanon	99.0
4	BankonBanking	99.0
5	DrApeman	98.9
6	dosk17	98.9
7	GameTheory	98.9
8	Betsy Massar	98.9
9	CompBanker	98.9
10	bolo up	98.8

Elite Career Bootcamp. Top Job Offer Guaranteed.

Elite Career Bootcamp. Top Job Offer Guaranteed.

Cold Snap Incoming For Online Ad Spending | The Daily Peel | 10/24/22

Market Snapshot

Banana Bits

Keep The Peel Going...

Macro Monkey Says

Meme of the day

What's Ripe

What's Rotten

Data Peel

Thought Banana

Banana Brain Teaser

Elite Career Bootcamp. Top Job Offer Guaranteed.

Elite Career Bootcamp. Top Job Offer Guaranteed.

Cold Snap Incoming For Online Ad Spending | The Daily Peel | 10/24/22

Market Snapshot

Banana Bits

Keep The Peel Going...

Macro Monkey Says

Meme of the day

What's Ripe

What's Rotten

Data Peel

Thought Banana

Banana Brain Teaser

See All Comments - 100% Free

Trending Content - Investing, Markets & Macroeconomics Forum