It’s big tech earnings season. Bernstein is out with a cheat sheet on what to look for, and potential stock px reactions on the results. Looks like GOOG/L and SNAP have low expectations going into the print, whereas META faces a high bar. Stock price reaction is expected to be mid-level at GOOG/L and PINS, regardless of outcome, with low upside potential at META, and a high potential reaction either way at SNAP.
TikTok is going to launch an e-commerce biz in the US to sell Chinese-made products to US consumers, set to face current players Shein and Temu. It’s basically building an Amazon-like marketplace and is setting its sites on $20bn of goods to be sold this year.
Lyft may sell its bike business. Ebikes obviously have become hugely popular. Lyft plays in 53 markets across 15 countries, and last week folks rode 1.4mm times across its US network.
Why was China tech up so much this week? The government suggested more economic support plus relief for the property sector plus finding ways to assist local gov overleverage.
Why, Elon? No one needed Facebook to become Meta. No one needs Twitter to become X. Bloomberg says it could cost the co billions in brand value. Reuters outlined the legal impacts. Perhaps focus your time on that death match with Zuck. I think the world is much more interested in that.
Seems like folks inside the Fed are disagreeing before they have to come together to present their thoughts as a team tomorrow. There appears to be a growing gap between hawks and doves, per Bloomberg. Your trusted old economists are noting this as well, per the FT, as they sound the alarm bells of a ‘last mile’ challenge for central banks as investors bet on a soft landing.
US consumer confidence rose in July to 2-year high. A strong job market, easing inflation, and a good vacation (ok, that last one is ours) are increasing folks’ confidence.