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Anasticia Sholik

Good morning.

One small step

The future of gaming

Call of Duty turns down the loot. Players of the latest edition of the military-themed first-person shooter will no longer be able to pay for a chance of getting better at the game. Ridding loot boxes is a big step for the company, which generated $4.2 billion in revenue last year.

Call of Duty won’t be the last high-profile game to get rid of loot boxes

As an avid gamer I am extremely happy about this! This returns the game to a more skill-based system rather than a “pay to win” model. If you want pay to win, play mobile games or Fortnight and try not to get eliminated by some 8 year old who stole his moms credit card to buy better weapons.

This is great, loot boxes are kind of like gambling with the RNG (random number generator) element. Yes it makes money but nowhere near Season Battle Passes that Fortnite uses (Epic made ~$3B in profit in 2018 from it just one company not the while industry).

So good riddance to loot boxes, Battle Passes

This is great, loot boxes are kind of like gambling with the RNG (random number generator) element. Yes it makes money but nowhere near Season Battle Passes that Fortnite uses (Epic made ~$3B in profit in 2018 from it just one company not the while industry).

So good riddance to loot boxes, Battle Passes are more aligned with player engagement b/c you buy the pass and in order to maximize all its benefits you have to play more, play with friends, complete challenges, etc. to unlock things. Brilliant from a user engagement standpoint vs dumb chance loot boxes.

Top dollar TV

Can you hear me now?

Brave towns are putting a stop to the tyranny of leaf blowers. The loudest models may have noise levels of up to 112 decibels—louder than a plane taking off, a freight train, or a live rock concert.

More and more brave towns are putting a stop to the tyranny of leaf blowers

Noise pollution is one of the next major challenges to overcome, and the solutions cannot only come from technology advances. Machines, even the quietest, generate their own low-level noise that contributes to both overall pollution and the insistent, steady thrum.

Talkin' Texas

The Lone Star State, but make it fashion. The world’s biggest luxury brand, Louis Vuitton, is investing $50 million into a bag production factory on a Texas ranch south of Fort Worth. They have good reasons why.

Why Louis Vuitton opened a factory on a ranch in Texas

I never thought I'd see the day where Bernard Arnault would be in a photo with Trump. But this is a great set of news for the US manufacturing sector, and hopefully this can create a bigger trend towards fashion brands setting up more US plants.

That said, "Made in the USA" is a tag that brands can

I never thought I'd see the day where Bernard Arnault would be in a photo with Trump. But this is a great set of news for the US manufacturing sector, and hopefully this can create a bigger trend towards fashion brands setting up more US plants.

That said, "Made in the USA" is a tag that brands can only use if 100% of their products are sourced there. The leather isn't entirely from Texas (which is a bit odd) but this issue has also hindered the watch world.

There so much more under this hood, but kudos to LVMH for this news.

The next big thing in banking is small

What is better than neobanks? Neobank killers. Venture capitalists have poured billions of dollars into digital bank startups like Revolut, but some investors think they’ve found an even better bet in the fintech sector.

As neobank valuations bubble up, some investors think there’s an even better bet in fintech

Doubt is growing about the sky-high valuations for tech unicorns, including the much hyped fintechs. I've been speaking with investors who are wary that these companies will ever truly be worth these lofty price tags. At this point, they are looking for less sexy alternatives.

In the meantime, judgement

Doubt is growing about the sky-high valuations for tech unicorns, including the much hyped fintechs. I've been speaking with investors who are wary that these companies will ever truly be worth these lofty price tags. At this point, they are looking for less sexy alternatives.

In the meantime, judgement day will come for the neobanks, if they survive long enough to try to go public.

What comes after the iPhone?

The messy NBA-China breakup

More details on the row. China had reportedly asked the NBA to sack Morey for his tweet. The league—which is trying to protect a reputation for standing up for human rights—hasn’t caved.

The backlash over China’s NBA bullying is only going to get worse

There's so many good takes about this thriller. Who would've thought Morey's tweet could cost the NBA a substantial amount? To quote a smug tweet I read this morning, "that's talent." But there's something deeper at play. I'm going to spitball (another term I learned on sports twitter) that the CCP -

There's so many good takes about this thriller. Who would've thought Morey's tweet could cost the NBA a substantial amount? To quote a smug tweet I read this morning, "that's talent." But there's something deeper at play. I'm going to spitball (another term I learned on sports twitter) that the CCP -- I make an effort to separate the Chinese government from the Chinese people -- woefully miscalculated. My take is that they've become increasingly confident with expanding censorship beyond their borders but missed a couple of factors in their current impasse with the NBA:

1. NBA is wokest professional league in the United States. We're not dealing with the NFL if you catch my drift.

2. In the US (ironically) private corporations call the shots not the gov't. However CCP has witnessed the demagogic rule of President Trump who has succeeded in extinguishing careers (remember Kathy Griffin. Hollywood blackballed her.)

3. Daryl Morey is one of the most powerful GMs and innovators in the NBA off the court. He's a strong proponent of analytics-driven basketball dubbed "Moreyball" that transformed basketball from a mid jumper shot game to the land of triples that suits the likes of the Warriors and Rockets. He also cofounded the very popular MIT Sloan Sports Analytics Conference.

4. NBA's decision would set a precedent for future interactions with China and uncharacteristically of an American firm the NBA chose values over money.

5. Morey didn't do anything egregiously wrong. The CCP has adopted an increasingly subjective and capricious "prone to be offended" disposition that makes it difficult to understand what actually IS offensive. I mean this is the same government that banned Winnie the Pooh.

Let's see how this story develops.

The world in 50 years

What will we wear? Executive producer of “The Bold Type”, Joanna Coles, envisions a better marriage between tech and clothing. “I think we’ll wear much more intelligent, sustainable fabrics that work with our bodies.”

The World in 50 Years: What will we wear?

I think the future of fashion is uniforms. Maybe it's not wearing the exact same thing every single day but I do foresee a drastic reduction in the quantity of clothes we buy and wear. Capsule closets have gained momentum in recent years as consumers Marie Kondo their wardrobes. Companies such as Rent

I think the future of fashion is uniforms. Maybe it's not wearing the exact same thing every single day but I do foresee a drastic reduction in the quantity of clothes we buy and wear. Capsule closets have gained momentum in recent years as consumers Marie Kondo their wardrobes. Companies such as Rent the Runway have successfully capitalized on a clothing rent and return model. While a focus on utilizing sustainable garment materials is equally important, I think in the next 5 (or 50 years) fashion will continue to embrace the "less is more" mindset. 

So Brex-citing!

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Facebook's stock tanks more than 20% after warning that growth rates are coming down

Facebook's stock tanks more than 20% after warning that growth rates are coming down

Read more on Business Insider

From Our Members

  • You are worth $255.

    That’s the value of the data you give away to Facebook.

    ($255 = $570bn market cap divided by 2.23bn MAU).

    If users knew exactly how much they are giving away, I wonder if it would change their online behavior.

  • Facebook missed revenue targets for the first time in 3 years. It also missed expectations for revenue, monthly active users, an daily active users. This earnings report was warning that there will be dramatic slowdowns in growth at Facebook, and investors should no longer expect the advertising machine

    Facebook missed revenue targets for the first time in 3 years. It also missed expectations for revenue, monthly active users, an daily active users. This earnings report was warning that there will be dramatic slowdowns in growth at Facebook, and investors should no longer expect the advertising machine to keep on chugging at rapid rates. On the earnings call Facebook's CFO said: Its CFO said: " Looking beyond 2018, we anticipate that total expense growth will exceed revenue growth in 2019. Over the next several years, we would anticipate that our operating margins will trend towards the mid 30s on a percentage basis." Zuckerberg said that investments in security are starting to "significantly" impact profitability.

    Bottom line, Facebook's security, data privacy, and public image scandals are impacting its user engagement and financials.

  • Seems like crypto wasn’t the only bubble.

    Facebook is not entirely immune to the controversies that have been biting at the heels of Zuckerberg and his team for many months. Let’s call this the result of compound interest.

  • (UPDATE: I said there was more bad news in the “near future”...I didn’t expend an ADDITIONAL 10% drop in the price after hours. It is an important market message to FB) 10% is a material hit to their valuation, although it still remains at a near all time high. I think GDPR represents an awakening in

    (UPDATE: I said there was more bad news in the “near future”...I didn’t expend an ADDITIONAL 10% drop in the price after hours. It is an important market message to FB) 10% is a material hit to their valuation, although it still remains at a near all time high. I think GDPR represents an awakening in both the business and consumer communities - not just among regulators- about the exploitative and deceptive nature of the underlying business model of Facebook, so I expect to see more bad news in the near future for them.

  • Before these earnings, they were up 33% from their Cambridge Analytica lows. So just reset your $FB chart to 3 months+ and you'll see that everyone is fine.

  • These results are an anomaly this earning season where most tech companies have done well. This appears more of a company-specific issue and not a sign of macro slowdown.

  • So, FBOOK shares are off nearly 25% because they *beat* earnings expectations ($1.74 vs $1.72 per share) and grew revenues by only 42% YoY, not 43% as analysts predicted. Such unforgiving price fluctuations on such small misses are a true sign that the stock is overvalued on a long term basis. Fundamentals

    So, FBOOK shares are off nearly 25% because they *beat* earnings expectations ($1.74 vs $1.72 per share) and grew revenues by only 42% YoY, not 43% as analysts predicted. Such unforgiving price fluctuations on such small misses are a true sign that the stock is overvalued on a long term basis. Fundamentals of the companies business have not changed. We know as much today about the business as we did yesterday.

  • For the record, Twitter is down 6.2% in aftermarket trading.

    Google is down 1.2%.

    Snap is down 3%.

    (Though I guess to be fair, tech stocks in general are trending down aftermarket...Msft, Amzn). The Twitter move is pretty significant.

  • I feel like this was incredibly simple to predict. Facebook has ceased being a proactive company and has become quite reactive. It jumps on trends that worked elsewhere but didn’t work on FB - hashtags, stories. When I was searching for a college roommate, all we used was Facebook. This was 3 years ago

    I feel like this was incredibly simple to predict. Facebook has ceased being a proactive company and has become quite reactive. It jumps on trends that worked elsewhere but didn’t work on FB - hashtags, stories. When I was searching for a college roommate, all we used was Facebook. This was 3 years ago. My brothers, who are two years younger than I am, don’t even have FB. It tailors to an older crowd now - and certainly not one that is growing.

  • I think the hysteria over FB’s earnings is a bit over blown — how many companies can boast they had a 42% year over year revenue increase? The forward guidance is troubling however

  • Surprising how long it took given the chipping away, the drip, the barrage of missteps and inability to address them in any meaningful way.

  • I’m long. Their audience is massive and committed while most of the ad driven media universe consolidates and capitulates. FB has great talent, a huge balance sheet and more than enough innovation to monetize their audience in new and exciting ways.

  • Taking its (well-deserved) lumps, but investors think the company will rebound.

    “Facebook has had a bruising few months, from ongoing fallout from the spread of Russian propaganda to the aftermath of the Cambridge Analytica scandal, and fierce controversy over whether fake news and disinformation should

    Taking its (well-deserved) lumps, but investors think the company will rebound.

    “Facebook has had a bruising few months, from ongoing fallout from the spread of Russian propaganda to the aftermath of the Cambridge Analytica scandal, and fierce controversy over whether fake news and disinformation should be allowed on the site. But this hasn't put off investors. Its stock reached all-time-highs of more than $216 on Wednesday ahead of its earnings announced. And analysts predicted a booming quarter for the company , based off the runaway success of Instagram and continued strength in its core advertising business.”

  • Monopolies become a serious problem when, even after numerous controversies, a companies revenue increases 42% y/o/y.

    At least a “miss” will undercut the bottom line for now, but it seems like short term backlash.

  • Missing numbers is one thing. Lowering future growth goals is the big problem. But a lot of what I believe we're seeing are short term thinking investors jumping out. FB's CFO needs to go find large investors who buy into the longer term vision. Google went through something similar.

  • I’ve seen similar knee-jerk reaction from the market before during Q4 2016, when FB’s guidance around “slower revenue growth from ad load limits” spooked the investors and the price fell about 5-10%. But it rebounded since.

    Despite all the recent negative (and well deserved) press coverage, the fact

    I’ve seen similar knee-jerk reaction from the market before during Q4 2016, when FB’s guidance around “slower revenue growth from ad load limits” spooked the investors and the price fell about 5-10%. But it rebounded since.

    Despite all the recent negative (and well deserved) press coverage, the fact is FB has an iron grip on the social media market (especially so with the control of Instagram) and there are no comparable alternatives. Unless social media users quit using or joining any kind of social platforms altogether, their eyeballs will still be exposed to some form of ads from either FB or Instagram. This will continue to drive up the stock price.

  • It’s not a crash, and seems a bit reactionary on the part of the Street. Can’t even call this a market correction, it’s just way too excessive. The numbers do not point towards a response on this magnitude.

  • Facebook's gonna be ok

  • Well, the stock price is just at the level before the data scandal ($176.62 on Mar 2 closing). So, if I asked you right after that: “do you think FB stock price will collapse?”, what would you say?

    Now that after the exposure, the testimony in Capitol Hill, and the financial impact defined by CFO in

    Well, the stock price is just at the level before the data scandal ($176.62 on Mar 2 closing). So, if I asked you right after that: “do you think FB stock price will collapse?”, what would you say?

    Now that after the exposure, the testimony in Capitol Hill, and the financial impact defined by CFO in earning call, FB is actually getting out of this.

    Then how come today’s tank from a historical high? This is how “greed” is spelt.

  • Ouch-FB‼️

  • Oh, for Pete's sake.

    "Facebook Stock Goes on Sale for Anyone Paying Attention"

    There, I fixed the headline.

  • FB will be fine, they are being penalized for their first ever miss since the original drop at IPO. They only grew 42% while the industry is stagnating.

    Their fundamental business is sound while challenged, and their ancillary businesses are Instagram, WhatsApp and Oculus, all platforms with a ton of upside.

  • Targeted Censoring and blocking does not work well in a social media outlet. The people have spoken. Selling personal information had an impact.

  • Facebook needs to do better. Now it has a financial incentive to do so.

  • I think it’s all you arm chair Quarterbacks that cause all the woes in the markets!!!

  • When you sell your community info, it is obvious that the only way to hurt Facebook it is though the bottom line... Facebook is not loosing sleep over Societal issues but money!!!!!! It is so incredibly predictable... Sad. And every body say the millennials will revolutionize society... they are no better.

  • Lol they called investor reaction “savage” #businessinsider y’all ain’t right 😂😂