Like a 6G

MARKETS

• Trade: Renaissance Macro Research crunched the numbers and concluded that the S&P 500 would be about 11% higher if not for all the bad trade news since January '18.

MARKETS

IPO Szn Hits Its Stride

After months of staring longingly at our mood boards, we’re finally getting a glimpse of the real thing: IPO season. And unlike all the one-pot-paleo-friendly-meal-prep ideas you’ve pinned, this one looks like it’ll actually happen.

Pinterest has confidentially filed paperwork with the SEC to go public, per the WSJ. It’s circled late June on the calendar for a possible listing, though that date isn’t set in stone.

• The numbers you’ve been waiting for: Pinterest is said to seek a valuation no smaller than $12 billion. Reuters reported in January that it could raise about $1.5 billion in a listing.
• Oh, were these the numbers you were waiting for? Pinterest surpassed 250 million monthly active users in September. It churned out more than $700 million in revenue (mostly from ads) last year, up 50% annually.

And it has the wind at its back

(Pin that one to “iNsPiRaTiOnAl QuOtEs.”) It joins an impressive list of highly valued tech startups looking to hit the market this year. Let’s get a progress report:

1. Lyft is expected to begin trading on the Nasdaq by the end of next month after hitting the road to seduce investors during the week of March 18. It’s gunning for a valuation of between $20 billion and $25 billion.
2. Uber filed confidential paperwork to go public around the same time rival Lyft did in late 2018. We’re itching to hear more info, but valuation estimates have hit $120 billion.
3. And Slack (not a ride-hailer) ((but a workplace messaging service)) also submitted paperwork to sell shares publicly in an unconventional direct listing, following in Spotify’s footsteps.

Zoom out: As of this week, U.S.-listed tech and internet companies that IPO’d in 2018 are up about 33% on average. The rest of 2018’s U.S. IPOs? Up 11%.

FINANCE

Some Unlikely Pairings Can Work...

Like peanut butter and bacon. Or your friend and his fedora. Add Apple and Goldman Sachs to the list of hopefuls—the two are issuing a joint credit card that pairs with your iPhone to make managing money easier.

• The specs: The co-branded card will test with employees before officially rolling out to the rest of us this spring, per the WSJ.
• The allure: Cardholders will get extra features inside the Apple Wallet app—setting spending goals, managing balances, and tracking rewards.

And the reason: Is youuuuu Times are changing...
Faced with shrinking iPhone demand, Apple’s boosting its fee-generating services unit (with a $50 billion revenue target by 2020). It’ll snag a bigger share of fees from its own card than it can from card purchases made through Apple Pay right now.

And Goldman wants to use its first credit card to appeal to the everyman (and offset a slump in securities trading). It’s got high hopes new Apple/Goldman customers might also become customers at its online consumer bank, Marcus.

TELECOM

Why Was 6 Afraid of 7?

Because when President Trump proposes skipping 5 altogether, no one is safe. Yesterday, Trump outlined a very high-tech ambition: challenging U.S. companies to go beyond 5G network technology to...6G tech.

FYI, wireless carriers around the world are gunning to get 5G to market first. AT&T launched 5G in 12 cities last year. And Verizon announced plans to launch in 30 cities by year-end.

But the real challenge to U.S. carriers isn’t each other. Major Chinese telecom Huawei is leading the pack in 5G (and looks poised to start on its own 6G soon).

• Remember, the Trump administration has urged U.S. firms and allies to avoid Huawei tech in their 5G rollouts, alleging it could be spying for the Chinese government.
• The U.S. is having trouble convincing those allies.

But Trump could be adopting a new tone. He made no mention of Huawei on Twitter yesterday, opting for a competitive spirit over “blocking out” rivals (as was the M.O. before).

Bottom line: Some have taken Trump’s Huawei omission as an olive branch. And with trade talks dragging on, the president could be looking to soften up Beijing.

STARTUP

Freight Is Sexy

But don’t take our word for it. SoftBank’s Vision Fund is leading a $1 billion funding round in logistics startup Flexport at a very sexy valuation of $3.2 billion, per Forbes.

What Flexport does: Uses software—and physical assets like warehouses—to help companies transport goods. In industry lingo, it’s known as a “freight forwarder.”

And SoftBank CEO Masayoshi Son doesn’t write massive checks to just anyone (okay...he kinda does), so what’s special about Flexport?

• Disruption: Flexport is bringing modern tech to an ancient industry, where vets use a combo of email, phone, and spreadsheets to track complex supply chains. Flexport CEO Ryan Petersen told Forbes, “Of the top 100 freight forwarders, we are the only one founded after Netscape.”
• A kindred spirit: Petersen jives with Masa’s long-term approach (that 300-year plan tho) and his ability to help startups scale.

Bottom line: Forbes reports Flexport’s 2018 revenue was $471 million, and with logistics and transportation accounting for ~7.5% of U.S. GDP, there’s a lot more up for grabs.

QUIZ

The Quizard of Oz

Sturdier than a Nike sneaker. Thinking about going public. The OG digital gangster. It’s the Brew’s Weekly News Quiz.

1. U.S. digital ad spend is expected to outpace the amount spent on traditional advertising this year, per eMarketer. Can you name four traditional advertising channels?

2. The president of the American Automotive Policy Council said, “We’re not always united on public policy issues, but we’re united on this.” What is “this”?

3. An icon in the world of fashion died this week. Do you know his name?

4. Which country wants to create a $20 billion sports sector before it hosts the 2022 World Cup?

5. Fill in the blank: A Vouchercloud study revealed that the average U.K. office worker is productive for ______ a day

Answers: 1) Billboards, radio, newspapers, and magazines 2) Opposing auto tariffs 3) Karl Lagerfeld 4) Qatar 5) 2 hours and 53 minutes

BRANDING

Wait For It...

WHAT ELSE IS BREWING

• Kraft Heinz watched in horror as its stock plunged more than 20% after hours. The big news? It cut its dividend, wrote down the value of its Kraft and Oscar Mayer brands by $15.4 billion, and said it received a subpoena from the SEC in October.
• Tesla (-3.74%) is officially having a bad week. Consumer Reports said it won’t recommend the Model 3 anymore due to reliability issues.
• Nike shares (-1.05%) were watched closely a day after Duke basketball phenom Zion Williamson injured himself when his foot ripped through one of its sneakers.
• AT&T (-0.07%) joined the crew pulling ads from YouTube over predatory comments left on videos of children.
• Zillow’s (-4.85% after hours) CEO Spencer Rascoff will be replaced by company co-founder and former CEO Rich Barton.

BREAKROOM

Friday Puzzle
What common four-letter English word can have each of its letters replaced with the letter “r” and still have each of the four new words created make sense?

Breakroom Answers

Friday Puzzle
Team: ream, tram, term, tear