...and the China-TikTok saga returns (with a vengeance)
| Just planting the weeds [Maskot via GettyImages] | |
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Yesterday's Market Moves | | Dow Jones
34,961 (-1.08%) | S&P 500
4,400 (-1.07%) | Nasdaq
14,526 (-0.89%) | Bitcoin
$45,122 (+0.51%) |
| Dow Jones
34,961 (-1.08%) | S&P 500
4,400 (-1.07%) | Nasdaq
14,526 (-0.89%) | Bitcoin
$45,122 (+0.51%) |
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Hey Snackers, It's a good week for Jurassic Park fans: scientists discovered two new dinosaur species — and microwave scientists perfected the art of dino chicken nuggets. Stocks slipped yesterday, after notes from the latest Fed meeting revealed the central bank is leaning toward pulling back on its economy-boosting money policy. | |
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Tilray is buying a stake in fancy pot retailer MedMen, planting the weeds for legalization | Not related to Don Draper... Canadian cannabis giant Tilray is dropping $166M for a minority stake in American pot retailer MedMen. Tilray is a weed cultivator, supplier, and distributor. MedMen is basically like an Apple store for cannabis. You order through sleek tablets on wooden tables, in minimalist stores with floor-to-ceiling glass windows filled with dozens of associates in MedMen tees. Instead of AirPods, you've got $30 elderberry weed gummies. American clout... Tilray shares jumped 5% after the deal was announced. The investment would give Tilray a popular retail footprint in the US if cannabis is legalized at the federal level. Marijuana is legal in 18 states for recreational purposes, but is still viewed as a Schedule 1 drug by Uncle Sam — the same level as LSD and heroin. - Hash it out: MedMen operates 24 stores across CA, FL, NY, AZ, NV, and MA. It did $157M in sales last year, but its quarterly sales are shrinking — and it's unprofitable. Still...
- Tilray thinks the investment is worth it: "Once legalization happens, it gives us the potential to own a great company that we can take into the rest of the world." Key word: once — not if.
|  THE TAKEAWAY | Great opportunities require great preparation... and Tilray is planting the weeds for federal legalization in the US. Tilray thinks it's a "when, not if" situation. This year, it merged with Canadian Aphria to create the world's largest cannabis company — and expand its reach in Europe and the US, where more legalization is likely (another weed, planted). But until US legalization happens, growth will likely continue to be sluggish for pot companies. | |
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China took a stake in TikTok's parent — now some US lawmakers are calling for a 'Tok block | Jumping on the ban-wagon... The Chinese government has taken a 1% stake and a board seat in the Chinese subsidiary of TikTok's parent company, ByteDance. US officials have considered banning TikTok before — ex-President Trump issued an executive order last September to yank TikTok from US app stores, but President Biden revoked it. Now that China has a stake, one US Senator has urged Biden to block TikTok entirely. There's a great divide... between Chinese and American social giants. Many Chinese social giants haven't taken off in the competitive US market. Meanwhile, US companies like Facebook and Twitter can't compete in China because they're banned. ByteDance tried to have the best of both worlds: - It launched two versions of the same social video app in the US and China — TikTok and its censored Chinese cousin, Douyin.
- Success came... In 2020, ByteDance's revenue more than doubled from 2019, and TikTok overtook Facebook as the most-downloaded app in the world.
- So did scrutiny... ByteDance delayed its IPO amid China's regulatory crackdown. Now the Chinese government's stake in the company may cause US regulators to consider new limitations for TikTok US.
| THE TAKEAWAY | The TikTok threat has expanded... The US' original worry: that TikTok might share US data with Chinese authorities. This week, a group of bipartisan Senators demanded that TikTok reveal how and why it plans to collect biometric data from its 100M US users. But there's a newer fear: that China could influence TikTok's powerful algorithm to promote misleading info that advances its interests. Still TBD whether those concerns are warranted — but the scrutiny from lawmakers is real. | |
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What else we're Snackin' | - Boost: In an effort to crack down on rising Covid cases, President Biden called for nation-wide booster shots for adults who have already gotten two jabs.
- Yikes: T-Mobile says that hackers stole personal data — including Social Security numbers — from more than 40M of its customers in a massive heist.
- Hot: The number of homes sold for at least $100K more than asking price in Austin this year jumped a whopping 57X from last year.
- Probed: Two Democratic senators asked the FTC to investigate Tesla over its "potentially deceptive" advertising of its Autopilot and Full Self-Driving tech.
- Curve: Gap-owned Old Navy will offer plus-sizes for all of its women's styles, in a bid to win over the 90M US women who wear plus-sized fits.
- Streamy: Comcast and ViacomCBS are teaming up to launch a European streaming service called SkyShowtime. We're shocked there's no "+."
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The Snacks Daily Podcast | The doctor prescribes a $1B valuation... Maven just became the first American unicorn dedicated to women's health. The holistic clinic is offered as a perk by companies like Microsoft, Bumble, and L'Oreal. Tune in to hear about the next stage in "the Battle of the Benefits." | |
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Thursday | - Weekly jobless claims
- Earnings expected from Estée Lauder, Kohl's, BJ's Wholesale, Petco, and Macy's
Authors of this Snacks own shares of: Tesla, Apple, Twitter, and Microsoft ID: 1766735 |
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