Hey Snackers,
While the US Women's National Team preps for the World Cup final (cup of tea), markets close at 1pm ET today and are completely off for the 4th. Snacks will be back in your inbox on Friday.
We’ve got a calming pre-vacay story below to hold you over until then.
America's economic expansion is 10-years-old
Joltin' Joe is impressed... In June of 2009, America's economy hit the low-point of the financial crisis. For the 120 months since, it's been growing. And starting this week, it's officially America's longest stretch of economic growth without a recession since World War II.
In honor of Independence Day... we're jumping into this streak, Snacks style. Here's how the economy has changed since the depths of the Great Recession, which was triggered by the financial crisis, which was triggered by the subprime real estate bubble:
- 🔧 21M jobs have been created: And unemployment is at a modern record low of 3.8%.
- 📈 Stocks have more than tripled: The S&P 500's 230% gain in the past 10 years was powered by low interest rates and ballooning profits.
- 😬 We're in a trade war now: It's concerning. But at least the economy's in a good enough position to endure the pain.
- 🎭 The number of billionaires has almost tripled: But a divided American recovery has left behind those outside of major jobs hubs.
Does an economic expansion die of old age?... Every recession in history — except this one — has been followed at some point by another. Many analysts are looking for signs of another economic downturn... which can have the effect of hurting confidence... and actually contributing to the economic downturn (it's a freaky self-fulfilling prophecy). We'll learn more as 2nd quarter earnings reports hit this month.
Tesla's 2nd quarter record deliveries quiet the skeptics
95,200... That's the number of Tesla cars that were delivered to affluent, environmentally-conscious, and/or tech-obsessed new owners from April-June. That's more than double the number of deliveries in 2018's 2nd quarter, and the positive result popped shares up 7% Tuesday.
This isn't some earnings report... It's the "Vehicle Production & Deliveries" report — car companies preview their financial results with this crude, raw, meaty, production count. But Tesla's had worries about "weak demand" from the beginning of the year. That's when deliveries fell 31% from the quarter before, and flocks of Tesla doubters started chirping that customers just weren't that into Elon's cars.
If Tesla's not setting records, then something's wrong... Tesla produces a tiny fraction of the number of cars General Motors makes, but its stock by market value is about 80% of GM. It's like a kid measuring her height with a marker against the wall — Tesla better be setting records each quarter. This report signal's Tesla's master plan is more on track.
Meditation app Calm raises another $27M as a mindful McConaughey unicorn
Turn up the chill... Meditation app Calm evolved into a unicorn in February, raising $80M to hit a $1B valuation — now $27M has been tossed in from another venture capital firm. The leader of that firm made clear that she's a power-user — Calm helped her falling-asleep time drop from 30 minutes on average to less than 5 (that's 150 hours more zzzzs per year).
The moment of zen... occurred last year. Calm charges $60/year (or $400 for "Calm for Life") to access its meditative relaxation content. But with competition flowing into mindful apps (think Headspace, Aura, and others), it had to transition from a weekly resolution to a daily habit. So it launched "Sleep Stories" to help you get to your dreams. That's when engagement and retention surged.
- Celeb strategy: Sleep Stories features Matthew McConaughey coaxing you into slumber ("How often do we ponder depth of the present moment") or John McEnroe reading tennis rules to your pillow.
- It became a ritual: The feature led to 150M listens from 2M paid subscribers since the feature launched last year.
- Revenues popped: They're on pace to double this year to $150M.
You selling a vitamin or aspirin?... It's the key question some VCs ask before they invest. A "vitamin" is nice to have, but not critical. An "aspirin" is something customers need. Now. Both have benefits, but the daily need-to-have option drives engagement and growth. Calm's sleep pivot may have turned it into aspirin, and that's why Lightspeed Ventures says it invested.
What else we’re Snackin’
- Sharp: Revolve, the data-driven 'Gram-focused retailer, jumped 6% after analysts upgraded the stock on the potential for future offline fashion events
- Growler: Budweiser-owner AB InBev is spinning off its Asia business with an upcoming IPO — the biggest of 2019
- Plugged: Ola Electric, the carbon-hating Uber of India, raises $250M from venture capital giant Softbank to hit a $1B valuation
- Promoted: International Monetary Fund (IMF) Managing Director Christine Lagarde wins EU support to lead the European Central Bank
Wednesday
- Earnings from Nascar-owner International Speedway Corp
- Markets close early at 1pm ET
Disclosure: Authors of this Snacks own shares of Tesla.