…and earnings wrap feat. UPS, Chegg, and Beyond Meat
| A stable pal? (Justin Sullivan/Getty Images) | |
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Yesterday's Market Moves | | Dow Jones
35,314 (-0.45%) | S&P 500
4,499 (-0.42%) | Nasdaq
13,884 (-0.79%) | Bitcoin
$29,857 (+2.34%) |
| Dow Jones
35,314 (-0.45%) | S&P 500
4,499 (-0.42%) | Nasdaq
13,884 (-0.79%) | Bitcoin
$29,857 (+2.34%) |
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Hey Snackers, Cows are being bred to burp less methane, and it's not to make them more polite. One estimate said livestock belch (and toot) out nearly 15% of global greenhouse-gas emissions. Put that on a Chick-fil-A billboard. Banks had a tough Tuesday, pulling down the markets after Moody's slashed 10 regional lenders' credit ratings. Healthcare stocks rose after pharma giant Eli Lilly reported strong sales of its diabetes drug, Mounjaro, which — like Ozempic — is widely used for weight loss. | |
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PayPal launches a Stablecoin straight into crypto's muddied regulatory waters | Venmo'ing Satoshi… PayPal is doubling down on crypto. On Monday, the Venmo owner said it was launching a stablecoin that'll be available to US customers through PayPal. The payments biz said it hoped to build a link between digital currencies and OG payments used by merchants and shoppers. Picture: folks sending PayPal USD (PYUSD) between PayPal and (eventually) Venmo wallets just like cash. Washingtons: PayPal said PYUSD will be pegged to the US dollar (think: 1 PYUSD = $1) and fully backed by USD deposits and cash equivalents like short-term Treasuries. WhoSD: While it's PayPal's token, PYUSD is issued by New York's Paxos Trust and lives on the ethereum blockchain.
Hoping for stability… With the launch of PYUSD, PayPal's diving headfirst into an industry in flux. Earlier this year, New York regulators ordered Paxos to stop issuing the Binance-affiliated BUSD stablecoin — reportedly over customer due-diligence concerns — sparking a selloff of the coin. Now Tether's USDT and Circle's USDC command a combined 87% of the stablecoin market. Meanwhile, industry heavyweights are looking abroad as they point fingers at a crackdown by US regulators like the SEC. | | Swimming against the current can give you a boost… when the tide turns. PayPal's decision to forge ahead while crypto regulation remains up in the air could help it secure a piece of the $126B stablecoin market as other players exit. Despite the choppy waters, a PayPal exec said regulatory clarity might be on the horizon. Still, last month the White House was said to have derailed a potential bipartisan stablecoin bill. | |
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Earnings Wrap: UPS, Chegg, and Beyond Meat | 📦 Return to sender… UPS dipped yesterday after the shipping titan dropped a mixed box of #s. Profit fell to $2.2B last quarter (down 24% from last year) and revenue slipped 11% as global shipping demand waned. UPS also cut its full-year revenue guidance by a whopping $3B+ to meet pay-bump terms for its Teamsters union deal, which avoided what would've likely been the largest (and costliest) US strike ever. 📚 A+ results… Chegg shares surged 5% yesterday after the edu-tech biz beat Wall Street's revenue forecast, deescalating AI takeover fears. ICYMI: Chegg's stock tanked 40%+ in May after it warned of students flocking to ChatGPT. Now Chegg's teaming up with Scale AI to build learning tools. While Chegg's revenue and subs have dipped from pandemic highs, execs think the slowdown may've bottomed out. Chegg's CEO said that while Gen Z is using AI for homework help, students aren't always comfy with the info's accuracy. 🍔 Faux-meat beef… Beyond Meat shares got burned after the plant-based pioneer saw a 30% sales slump in Q2. US revenue fell 40% as Beyond's grocery and restaurant sales slumped. The pea-protein icon slashed its annual guidance and said it probably wouldn't reach its cash-flow goals. Beyond has cut prices for its plant patties and sausages to compete with real beef, but price may not be its only problem: consumers are growing skeptical about the health benefits of fake meat (see: 195 mg of salt/patty). | |
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What else we're Snackin' | Bud2Bud: Canadian cannabis company Tilray is buying eight beer brands, including Shock Top, from Bud Light maker AB InBev. Tilray has been doubling down on boozy bevs as it waits for broad US pot legalization. CutScene:
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