A Retail Supply Glut?

Retailers faced a tough decision during the pandemic:

  1. Grow market share by satisfying demand and risk potentially overordering; or
  2. Underorder and lose a lot of potential customers because of empty shelves

Most opted for the former and are now dealing with the repercussions…at least according to Target. 🎯

Just weeks after the company missed earnings amid a steep decline in operating margins, it’s now lowering its outlook even further after outlining an aggressive plan to clear unwanted inventory. 🔻

The company acknowledged it would take a short-term profit hit but noted it is acting quickly to get out in front of the issue, optimize inventory in the second quarter, and set its stores up for success in the second half of the year.

Given the commentary we’ve heard from a range of retailers like Walmart and Gap, this may be the start, not the end of further guidance adjustments in the industry. 🏬

The stock gapped down about 10% at the open but rallied back throughout the day to close -2.31%. 📈

Given the ability of Target and the overall sector to rally back after bad news, could it be possible that enough bad news is baked into the stocks already? 🤔

I guess we’ll have to wait and see. 👀

Book A Stay With Airbnb CEO

Tech companies are getting back to basics in an effort to turn their stock prices around. One of those companies is Airbnb, which sees two obstacles in hosts using its product. 🚧

One, it can be hard to get started. And two, it can be nerve-wracking to have guests in your home.

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Let’s Get Ready To $RUM-ble

After months of anticipation, blank check company CF Acquisition Corp. VI ($CFVI) completed its business combination with the video-sharing platform “Rumble.” The combined company’s shares began trading on the NASDAQ today under the ticker symbol $RUM.

In an age where most social media platforms like YouTube have to choose between censorship and hosting a free-for-all, Rumble is stepping in as a high-growth neutral video platform. It says its goal is to create rails and independent infrastructure designed to be immune to cancel culture, hence its mission to restore the Internet to its roots by making it free and open again.

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American Airlines Gains Some Altitude

American Airlines reports results on October 20th. However, today it preannounced that its third-quarter sales are likely better than previously expected.

The company said revenue for the quarter that ended September 30 will be up 13% from Q3 2019, above its July forecast of a 10%-12% increase. The strong summer travel demand helped it cover rising costs. 💪

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The Metaverse Finally Has Legs

At Meta Connect, Mark Zuckerberg announced that the Metaverse finally has legs. 🦵🦵

Well, not legs like the idiom’s meaning of “likely to continue or succeed.” That might be true; however, we mean actual LEGS.

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