Labor Market to JPow: That All You Got? | The Daily Peel | 11/7/22

Nov 7, 2022 | Peel #332

Market Snapshot

Employers shrugged off rate-hike ice water and added 261k jobs in October. Can only imagine how many f-bombs JPow slung after seeing that number.

Over at MuskTwit, the company’s revenue is in freefall as ad partner after ad partner pulls out until there’s some semblance of stability.

Banana Bits

Diddy is Puff Daddy once again after adding $185mn to his ganja portfolio
Chip companies are dealing with the whiplash in supply by cutting costs and slowing production amid an inventory glut
Stripe is saying sayonara to 14% of its workforce
AGs have the massive Kroger-Albertsons deal in their sights, threatening the completion of the merger

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Macro Monkey Says

Job Numbers Are Good—Wages Aren’t

Your average 9-5er is finally seeing some wage gains…at about half the rate of inflation.

The Fed is starting to get backed into a corner here, and the playbook doesn’t present many good options.

As long as inflation is outpacing wage gains, people are effectively getting poorer
Rate hikes aren’t denting job growth as much as was hoped, presenting the need for even more hikes
But the Fed is trying to dampen the labor market, not bash it with a hammer. Small wage gains are better than an economic collapse
People are clamoring for inflation stimmies again, but that would worsen the problem

Meme of the day

Source

What's Ripe

Adidas AG ($ADDYY) ↑ 25.05% ↑

Puma CEO Bjorn Gulden is taking the top job at Adidas and will have quite the clusterf*ck to unwind
Any non-Ye-related news is welcome for investors in the Three Stripes at this point

DoorDash ($DASH) ↑ 8.32% ↑

The undisputed king of food delivery notched another W in Q3, posting nice order and revenue gains
Losses were higher than expected, but economies of scale mean profits will come down the line…allegedly

What's Rotten

DraftKings ($DKNG) ↓ 27.82% ↓

$DKNG beat on the top line in the quarter, but user growth is slowing, and profits are nowhere to be found
Heated competition from FanDuel and inflation eating into discretionary budgets make for a tough outlook for 2023

Warner Bros Discovery ($WBD) ↓ 12.87% ↓

Mashing a bunch of content together and presenting it in a bundle isn’t attracting enough subscribers
Consumers just have too many streaming options for investors to feel confident that this $WBD experiment can gain a solid foothold in the market

Data Peel

Online Sports Gambling Market Share (as of July 2022), Source

Thought Banana

What Should the Online Public Square Look Like?

When social media first really started taking off, people were generally comfortable with their deal with the devil.

In exchange for your data, you get a free platform that all your friends, and eventually the entire world, is also on.

But without ad spend, that model falls apart
Elon clearly has no idea how to monetize Twitter outside of ads
But does the public even know what it would be willing to pay for a decent online public square? We’re so accustomed to it being free that the question hasn’t really been asked

The big question: Do the network benefits of social media only work when it’s free, or will people pay up for a better experience?

Banana Brain Teaser

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Fire.

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