Yearly Archives

Fidget spinners, the dab, the man bun… are all casualties of a cringe-worthy 2017. Fortunately, bitcoin is not in the same category.  It may seem that way, though; bitcoin came crashing back down to Earth from a $19,500 high to hovering around $6,000, currently.

It’s not so bad… especially if you consider that bitcoin was priced around $2,500 just a year ago. When you look at the price decline, it includes tax selloffs, multiple exchanges getting hacked and $10 billion funding in initial coin offerings.

It’s a work in progress… and Japan just stopped multiple crypto exchanges from having new accounts come in. This caused bitcoin to drop further Friday morning. This may hurt bitcoin in the short run, but really, they are just trying to clean up and improve the system. So sit back and relax – because bitcoin is not done yet.

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Why Uber… when you can LimeBike, Jump, and Bird around your city? These are three electric scooter companies that provide a quick, convenient and environmentally friendly way to get from point A to B. They are becoming a big deal to investors, too. In fact, LimeBike and Bird have made over $100M in funding and Spin was acquired by Uber earlier this month.

And it’s really easy… just one tap of an app and you can pick up a nearby scooter; and when you’re done, just leave it. Although “just leave it” has been met with complaints from people tired of seeing the scooters unattended on just about every corner of their city.

But not so fast… because San Francisco stopped the e-scooters…for now. This has not deterred investors, however, and these companies have supported efforts to regulate the e-scooters. This includes finding places to park the scooters and working with public transit. I hope it works out – it’s 2018 for god sake, we shouldn’t be walking anywhere.

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So long, another part of my childhood… because Toys “R” Us is officially going out of business in the United States, closing their remaining 200 stores on Friday (the company will be open for business in other countries, such as Canada). I know you are probably thinking Amazon is to blame – but that is only partially true. The toy company also had an unsustainable amount of debt stemming from a 2005 transaction that took the company private.

Employees are also protesting… because they were not paid severance after, well, being severed from the company. The remaining employed employees will be helping to close up shop. The remaining unemployed employees will be staging another round of protests next week.

You may think ‘who cares?’… and Toys “R” Us closing was a long time coming. However, both Hasbro and Mattel lost tens of millions in sales due to the closings. While toy companies do sell their product to large retailers, their full line of products could always be found at the famed toy store. From 90s kids, and probably many others, farewell and thank you Toys “R” us, you will be missed.

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What more do you want… other than revenue that was up 10.4% for the quarter? Apparently much more because Carnival shares still closed down 7.85% on Monday. This coming after the company cut its full-year earnings outlook from between $4.40 and $4.20 to between $4.25 and $4.15. Carnival cited something that may be near and dear to even your wallet – rising fuel prices, as the reason for the correction.

But there’s hope… and Carnival is doing their best to offset the increased fuel costs. They believe the demand for their cruise offerings, along with increased ticket prices will offset the pesky fuel costs. It is worth noting that advanced booking for the cruise line are on pace with last year, but at higher prices, so their claims do have merit.

They’re not alone… with Norwegian Cruise Line dropping 7.2% and Royal Caribbean Cruises also down 5.1%. If you plan to take a cruise in the near future, expect to pay just a little bit more.

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Maybe we jinxed it… by declaring FANG stocks and the Nasdaq were relatively safe. However, new reports came out on Monday stating the Trump plans to crack down on Chinese investment in major technologies in the United States. Gotta love him.

Here’s who suffered… including the Nasdaq which dropped 2.1% (coming down from an all-time high last week). Netflix was down more than 6%, while Twitter and Amazon were down more than 3% each. The Dow also continues to drop, down 1.3% at one point.

There was a saving grace… in the form of White House trade adviser Peter Navarro, who stated there are no plans to impose investment restrictions and called the sell-off an overreaction. However, overreactions aren’t uncommon during the tense and uncertain times we are in. Bank of America reported that while the odds of a “full blown trade war” are low, the risks are “rising.”

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We’re not talking Facebook… but Kraft Heinz definitely “likes” Campbell Soup. Campbell Soup went up 10% following the announcement that Heinz is very interested in acquiring the company. This is welcomed news for a company whose soup sales have been cold and their organic food endeavors less than fresh.

You don’t need alphabet soup to spell this out… because it appears Campbell Soup is [probably] for sale. This may be a good thing for the struggling company, and it’s struggling counterparts (including Kraft Heinz), because the current plan isn’t working. In order to remain competitive, they need to find a way to compete with Amazon, Walmart, Costco, and even Kroger now, who have been keeping prices insanely low.

So just like LeBron… it may be time for Campbell Soup to give up the one-man band act and find a super team. Even with the 10% increase, the company’s stock is down 25% over the past twelve months. Having said that, they won’t be a cheap date for any potential suitor – with a valuation of nearly $13 billion. I mean, come on, it’s Campbell Soup we’re talking about here.

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The housing market isn’t just bad… it is 2008 bad. That is because the money you need to spend to buy a median-priced house is at its worse since 2008.

Yes, home prices are expensive… but there’s more. Mortgage interest rates hit their highest level in seven years. In just one year, the national average 30-year fixed rate went from 3.8% to over 4.4%. Not only will you be paying more for the property, you will be paying more for the ability to buy the property.

No, you don’t make enough… because wages are rising, but not enough to make housing more affordable. However, many people will not be stopped by high prices and interest rates because they just want a place to call home (and they don’t crunch the numbers like us finance geeks). You should view your home as an investment and only invest if the numbers make sense – but for now, let someone else get ripped off.

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We don’t care… about the trade war. That is (or should be) the sentiment for all four FANG stocks which hit record highs on Wednesday. In case you didn’t know, FANG includes: Facebook, Amazon, Netflix, and Google.

Tariffs or no tariffs… we are going to keep using the internet to stream media, shop and search, and stay connected on social media. That may explain why these stocks are doing so well despite the rest of the market reacting negatively to the uncertainty coming from the US-China conflict.

Don’t let us down… when it is time to report quarterly results. Investors believe in these stocks, but only time will tell. Netflix is first to bat – releasing their earnings on July 16^th with the others to follow shortly thereafter.

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No more “tax savings” for online shoppers… because the Supreme Court ruled that states can require online retailers to collect sales tax. Prior to today, states could not collect sales tax from online retailers without a physical presence, such as a warehouse or office, in that state.

Bad news for online retailers… including Amazon, Wayfair, eBay and Overstock, who suffered a dip in their share prices after the announcement. Small businesses are also going to feel the full impact of this news because they are losing a competitive advantage and gaining a headache that comes with complying with the new law.

Don’t be too upset… because you should have been paying use tax on those “tax-free” online purchases when you filed your tax return each year. With that said, this is good news for big box retailers that have been required to charge sales tax online due to their presence in every state (think Walmart). This law may be in full effect by Christmas this year – so maybe get a head start on your online holiday shopping (hint hint).

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The clash of the titans… has added a new participant – Kroger. Kroger shares jumped 10% today after beating Wall Street’s quarterly sales and earnings expectations. What you may find more interesting is that the grocery chain’s digital sales were up 66% compared to last year.

Imagine getting food delivered straight to your door… with no exercise required. That’s right – a few clicks and you have groceries. This is nothing new, but it is becoming the norm for more and more people. Kroger’s ClickList service, which allows for home delivery or curbside pickup, served as a catalyst for the company’s strong performance.

Digital, convenient, and organic… all things millennials love. Kroger has been getting ahead by focusing on these rapidly-growing segments of the market. This is an example of a company that recognizes that their customer-base is evolving and is reacting accordingly. From their business model to groceries, it looks like Kroger has managed to stay fresh.

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