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Quote of the Day

Amazon.com customers purchased enough Instant Pot pressure cookers this holiday to make more than nine million bowls of chili at once.”

Market Snapshot

• The S&P was positive every month—the first year it ever went 12-0.
• Amazon’s 55% stock run in 2017 made Jeff Bezos the richest person in the world.
• Argentina's Merval took the crown as the year’s best performing major index.
• 2017’s top crop? Cotton.

Champagne, Fireworks, and Apologies—an Apple New Year

s we recover from New Year’s and self reflect, Apple took some time to do the same, saying, “We know that some of you feel Apple has let you down. We apologize.”

And if you’re reading this on an iPhone 6, iPhone 6 Plus, iPhone 6S, iPhone 6S Plus, or iPhone SE, that apology was meant for you.

That’s because the Reddit boards and YouTube comment sections filled up with complaints that Apple purposely slowed down phones with newer software (10.2.1) to get customers to upgrade devices.

Here’s the twist: Apple didn’t deny doing it…

...it just had a different explanation than how livzwithMOM2018 broke it down on his Reddit post. After all, Apple “would never—do anything to intentionally shorten the life of any Apple product.”

The real issue? As with any rechargeable lithium battery, there’s a limited lifetime. And the more you charge, recharge, leave it cooking in the sun, or keep 26 apps open, you’re damaging the battery.

So much so that users’ phones were shutting off with nearly 30% battery lif…

You back? Well, as it turns out, that’s the precise reason that Apple was slowing down phones. In its best courtroom defense, it suggested that dialing down speeds was the best way to keep your battery from becoming 2018’s first obituary.

‘Nother plot twist: customers aren’t buying it

So far there have been nine class action lawsuits filed—the majority of which suggest Apple had every responsibility to inform customers the new software might slow down old phones. And the tensions only seem to be rising.

But for those of you who are willing to keep the torches and pitchforks at bay...there’s an alternative solution: you can replace your lithium battery for $29 (down from $79) for all of 2018.

Happy New Year?

Uber Gets a Holiday Gift From SoftBank

All bad PR gets washed away in the new year, right? No? Well for Uber, there is at least one thing to celebrate: a SoftBank investment.

With some help from Dragoneer Investment, TPG, Tencent Holdings, and Sequoia Capital, SoftBank closed the lid on a $9 billion deal that gives Masayoshi Son’s tech conglomerate a 15% stake in the ride-hailing company.

And while a portion was purchased at Uber's $69 billion valuation, SoftBank scooped up most of its stake at a reduced $48 billion valuation. Call it a holiday discount.

When all is said and done…

• SoftBank will assume two board seats.
• The board will jump from 11 members to 17.
• Uber’s largest investor Benchmark Capital will drop its lawsuit against Travis Kalanick over his control of three board seats.

So for Uber, the New Year’s resolutions are set: use this investment to stay on track for a 2019 IPO. And just please God...no more data breaches.

Goldman Writes a Big Check to the IRS

Before it reaps the benefits of the GOP’s tax overhaul, Goldman Sachs will feel the pain. It previewed its Q4 earnings by announcing a $5 billion hit, two-thirds of which GS can blame on the new 15% tax on foreign cash (it's got $31 billion stored overseas...for safekeeping, of course).

The one-time charge will amount to the bank’s first quarterly loss in six years.

And it’s not the only U.S. company taking one on the chin in Q4. While multinationals had largely avoided the 35% corporate rate by playing keep away from the IRS in places like Ireland, they’ll now actually have to pay Uncle Sam...but only once, and under the significantly reduced rate.

In all, S&P firms could hand back $235 billion to the U.S. Treasury.

But you won’t see us shedding any tears. With the new tax rate slashed to 21%, corporations can look forward to a 2018 filled with boosted earnings per-share. For GS, that jump could average 13% in the long-term.

S&P Standouts of 2017

It’s only the second day of 2018, but we’re already nostalgic about 2017. So, we’re giving stocks gold medals and “thanks for participating” trophies in what was an excellent year for the S&P (up 19%).

Best performing stocks

If you owned shares of any of these companies, let’s be friends.

1. NRG Energy (+132.30%)
2. Align Technology (+131.30%)
3. Vertex Pharmaceuticals (+103.42%)
4. Wynn Resorts (+94.88%)
5. Boeing (+89.43%)
6. Honorable mentions: PayPal (+86.52%) and Activision Blizzard (+75.35%).

Worst performing stocks

We don’t have to talk about it.

1. Range Resources (-50.35%)
2. Under Armour (-50.33%)
3. SCANA Corp (-45.72%)
4. Envision Healthcare (-45.39%)
5. General Electric (-44.78%)
6. Dishonorable mentions: Macy’s (-29.66%) and TripAdvisor (-25.68%).

What Else Is Happening…

• Amazon beefed up its smart home business by acquiring Blink, a startup specializing in home security.
• Legal pot went live in California.
• Tesla is still digging its way out of “manufacturing hell,” and is likely to miss Q4 production goals for the Model 3.
• The top three box office hits of 2017—The Last Jedi, Beauty and the Beast, and Wonder Woman—all featured female leads.

Economic Calendar

• Monday     Earnings: No Events

                    Economic Events: No Events

• Tuesday    Earnings: No Events

                  Economic Events: PMI Manufacturing Index

• Wednesday    Earnings: Rite Aid

                        Economic Events: Motor Vehicle Sales, Construction Spending

• Thursday   Earnings: Monsanto, Walgreens

                   Economic Events: Jobless Claims, PMI Services Index, Chain

• Friday       Earnings: Constellation Brands

                 Economic Events: Employment Situation, International Trade, Factory Orders

Venture This

By now, you’re probably aware of HQ Trivia, the live game show app that’s interrupting your 3 pm conference calls and turning family dinners into shouting matches over what truly characterizes a “nightshade vegetable.”

But, of course, it’s also an early-stage startup worthy of your (savvy, no doubt) funding consideration.

Why we’d pull out our wallets

The fact that we didn’t feel the need to explain what HQ Trivia is shows just how popular and pervasive the product is (but if you're not familiar, it's a twice-daily mobile trivia game allowing players to answer 12 questions for a cash prize).

Just last night, HQ Trivia pulled in more than 700k players. That’s...a lot of captive eyeballs marketers would pay big bucks to get in front of.

And it hadn’t even unleashed host Scott "Trap Trebek" Rogowsky on Android users until yesterday.

Not so fast

It could be a passing fad. We’re not seeing enough signs that HQ is innovating enough to keep us tapping deep into 2018 (besides boosting the prize money...money that we’ve never come close to winning). And what about its persistent tech issues?

Also, we’re concerned about reports of inappropriate behavior by HQ co-founder Colin Kroll (co-creator of Vine) during his time at Twitter. Other investors are just as skittish.

HQ Trivia has been looking for funding at a valuation of $100 million. So are you tapping the game show all the way to the bank?

Let us know whether you’re IN or OUT on HQ Trivia right here.

The Breakroom

Question of the Day

Stacy likes to buy and sell cars. For two weeks she bought 5 cars every 12 hours. Then, on June 2nd, she decided to start selling. Every day she would sell 6 cars, then buy 2. But every third day, she would sell 5 cars, and buy 3. Stacy decided that she'll shut down her business when she has no more cars. At this rate, what day will Stacy shut down her business?

(Answer located at the bottom of newsletter)

Business Trivia

What is the cost of a first-class postage stamp from the USPS?

(Answer located at the bottom of newsletter)

Fact of the Day

California is the world’s sixth largest economy, ahead of France, India, and Italy.

Breakroom Answers

Question of the Day: July 12th, 41 days after she started selling (Explannation)

Business Trivia: 49 cents