Monthly Archives

And as it turns out… the demand for jets will only get stronger over the next 20 years – a convenient prediction from Boeing, indeed. Much of that demand will come from the Asia-Pacific region, along with Europe and North America, of course. However, by 2037, Asian airlines will have around 75% more plans than their North American rivals.

Out with the old, in with the new… and while only 4% of commercial jets are at least 25 years old today, that number will inevitably increase as the years go by (duh). By the mid-2020s, about 500 planes per year will reach their 25th birthday and beyond. But rather than a party, these “old” planes will likely find themselves kicked to the curb and replaced by the new and improved models.

Small jets are a thing of the past… because they are much less fuel efficient given the number of passengers they carry. This lack of fuel-efficiency means the Boeing 737 and 737 MAX will be one of your only options – making up about 70% of what is in the sky. Okay, so Boeing can only [sort of] predict your flying future – but I hope you still found this section worthwhile.

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It’s not even a hint… Papa John’s wants John Schnatter to just go away – far away. The pizza giant has removed its former founder from their pizza boxes and even kicked him out of his office. Oh, and they basically asked him to stop talking about Papa John’s entirely…or to the media, at least.

It’s over… for Schnatter and the company terminated his “Founder Agreement” which officially puts an end to literally the only guy you picture when you think ‘Papa Johns.’ However, Schnatter still owns a near 30% stake in the company and remains on the board.

Back to the drawing board… for Papa John’s as they try to regain customer trust. The fact is, consumers are becoming more aware of social issues and are more willing to shun their favorite brands over PR disasters such as this one. To fix this, the company is having execs visit local shops to hold “listening sessions” with employees and are also making efforts to gauge the company’s diversity efforts.

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You have probably heard… that Elon Musk dubbed British diver, Spelunker Vernon Unsworth, “pedo guy.” This coming after Unsworth suggested where Musk should put his miniature submarine (I’ll let you guess where). And when asked if Unsworth would take legal action after being called a pedophile in front of Musk’s army of Twitter followers he stated: “Yes, it’s not finished.”

More bad publicity… and Musk has previously said it may be better not to respond to criticism on social media. From cars simultaneously bursting into flames to skipped safety testing, Tesla has been making the news for all of the wrong reasons lately. Tesla shares fell by more than 3% on Monday possibly as a result of the latest round of bad publicity for the company.

But lighten up… we know that Musk has no clue if Unsworth is indeed a pedophile. Still, it will be interesting to see just how much trouble one carless insult can get Tesla’s CEO in. But you are better than that, Elon – and you are a billionaire, surely you can find something more entertaining to do than throwing shade on Twitter.

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You haven’t fallen victim to tariffs… or haven’t yet, I should say. Very few Americans have been impacted by tariffs imposed by the United States. However, that could certainly change this fall if the trade war continues to escalate. The US plans to sanction another $200 billion in imported goods from China before the end of September putting the grand total to $450 billion.

When summer comes to a close… you will be back in school (or still working) and the price of consumer goods will begin to rise – not much to look forward to, huh? The US exports everything from China – clothing, computers, refrigerators, etc. So unless another country [that can get along with Donald Trump] can produce all of these goods, prices are bound to rise.

Higher prices and raising inflation… are the two not-so-great side effects that come from this trade spat. Prices in the US are already at their highest level since 2012 and are bound to go even higher. And it doesn’t take a genius to realize that rising wages are worthless when prices are rising at an even faster rate. Better get your back-to-school shopping done ASAP – and as a matter of fact, get your Christmas shopping out of the way, too, because things are getting out of control.

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Netflix gained 5 million subscribers… which is not bad considering just about everyone has a Netflix account – or at least 130 million people have an account. However, Wall Street did not share my ‘glass half-full’ perspective on the situation (but rarely are they very optimistic people). What Wall Street sees is a company that gained 1 million subscribers less than expected.

When Wall Street isn’t happy… share prices will pay and Netflix was no exception – dropping 13% in after-hours trading on Monday. Netflix claimed that they had “a strong but not stellar” quarter, but for almost any other company, $3.9 billion in sales and $384 million profit would be very stellar.

But Netflix is expensive… not the subscription service, but the stock itself, which is part of the reason it came crashing down after the slightest of stumbles. Netflix doesn’t seem the least bit concerned about this news or the competition that is nipping at their heels. The company believes you will binge-watch their content and somehow find time for Amazon, Disney, AT&T, and Apple content, as well – and [sadly] they are probably right.

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GE is cleaning up their act… by getting rid of their health care, oil and gas, and locomotive businesses – a move that Wall Street loved, by the way. The company has vowed to simplify the business and start tackling that mountain of debt they are sitting atop of. However, as GE tackles one problem others seem to pop-up simultaneously.

GE seems powerless… when it comes to their power and banking segments. GE Power is getting killed by renewable energy’s rapid rise and was recently forced to lay off 12,000 workers. It is safe to say that power is being “challenged” and is unlikely to recover in the near-term. And while GE does have a renewable energy division, it is too small to make up for the company’s other shortcomings.

Aviation should take flight… and sales are expected to soar, led by GE’s LEAP engine. We will also hear more about GE Capital, who disclosed a $6.2B loss in January in the long-term insurance care business. It looks like things will get worse before they can get better.

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World Wrestling Entertainment… usually known simply as ‘WWE’ is up 152% this year and the show may go on. Shares of WWE were up 3% on Friday as Morgan Stanley raised its price target from $58 to $100. They have the momentum, and momentum is what we like to see.

Sticking to what they do best… which is wrestling. Sure, WWE competes in the media and entertainment industry with companies like Netflix and Amazon, but they have the wrestling niche in a chokehold. WWE is taking their niche and focusing on increasing original content, growing their subscriber base, and negotiating new TV deals. Most notably, the company has broadcast deals in the works with both Fox and Comcast.

A word of caution… because yes, WWE stock is killing it – but everything they have going could already be priced into the stock. For example, the stock surged 14% after the TV deals with Fox and Comcast were announced. So be sure to keep an eye on these wrestling maniacs – but try not to get pinned under an overpriced stock.

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On your marks, get set, GO!… Amazon is hosting its fourth Prime Day today beginning at noon PT – but pace yourself because it is a 36-hour shopping marathon this year. As the biggest event yet, Prime Day will be available in even more countries and will include millions of deals. Deals will also be available to welcome Whole Foods to the Prime family, such as a $10 credit when you spend $10 or more from July 11 through 17.

Better than Christmas… for Jeff Bezos and his company which many have predicted will earn about $3.4 billion in revenue and beat last year’s sales by 40%. Impressive numbers, but they represent just six times what a normal day is for the retail giant. More importantly, Amazon would like you to join the club and sign-up for a $119 Prime membership. But be careful because once you get a taste of that sweet free two-day shipping you are unlikely to live life any other way.

And here are the sales numbers… $900M in 2015, $1.5B in 2016, $2.4B in 2017, and an estimated $3.4B in 2018 (if you do your part). Also, last year the company saw a record-high number of free Prime trial sign-ups. With such impressive results, other retailers have been scrambling to create their own special days, including Target who will hold a one-day sale on Tuesday for “everyone – no membership required.” Happy Prime Day – just don’t spend to the point of “Primenesia.”

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Pfizer had a “talk” with Trump… although it may have been the US President’s Twitter complaint that caught the company’s attention. Pfizer claims that they had an extensive conversation with the President over their recent drug price hikes.

Trump got his way… no matter how it was accomplished, Pfizer is taking back their price hikes which were rolled out on July 1. The company “shares the President’s concern for patients and commitment to providing affordable access to the medicines they need.” Nothing can create a change of heart like bad publicity from the President.

Happy Trump, happy life… moreover, he praised the company for their decision to see things his way. However, Pfizer has only agreed to defer the price increases to give Trump more time to strengthen the healthcare system or until the end of the year, whichever comes first.

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