Swifties Are Mad at Live Nation: But Is It the Villain or the Anti-Hero?

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November twenty first, 2022

Final week’s market abstract (November 14th-November 18th, 2022):

S&P 500: -0.32%
Dow: +0.59%
Nasdaq: -0.78%
Bitcoin: +2.01%

Hey Junkies,

If there’s one highly effective power that may lastly make a world monopolistic company really feel the warmth, it is…Taylor Swift followers. Stay Nation incurred their wrath final week and was quickly being known as out by politicians and (by Friday) being investigated by the Division of Justice.

Mess with Taylor Nation and you’ll ensure that they will attempt to precise some Vigilante Sh*t revenge. However is Stay Nation actually accountable for the botched ticket presale?

We’ll allow you to determine after you get extra of the small print under. We’ll additionally break down just a few extra high tales from final week together with Walmart’s continued dominance over Goal within the 2022 retail wars.

Clint, Editor-in-Chief

Clint Proctor

What Everybody’s Been Buzzing About

1. Stay Nation Is Closely Scrutinized After Its Taylor Swift Presale Debacle

Tuesday was a tough day for Swift followers. Many awakened and excitedly visited Ticketmaster to purchase their Eras Tour presale tickets. However they arrived to a web site that was closely slowed down. Digital que wait instances went as excessive as 8 hours and resale tickets started showing on websites like StubHub for as excessive as $22,000.

This led many to direct their outrage at Stay Nation, the leisure firm that merged with Ticketmaster in 2010. Many complained that Stay Nation (which additionally owns and operates venues and manages over 500+ artists) controls an excessive amount of of the leisure business, which permits them to quell competitors and hike costs. And it wasn’t simply Swifties who have been criticizing the worldwide leisure large. Politicians and felony justice places of work shortly joined the fray. First, Rep. Alexandria Ocasio-Cortez (D-N.Y.) tweeted this:

Then on Thursday, Nashville’s AG introduced that he was opening an investigation into whether or not client safety legal guidelines have been violated. And eventually, it was reported on Friday that the U.S. Justice Division had opened its personal antitrust investigation of Stay Nation.

However whereas it’s clear that Stay Nation has an outsized market share within the leisure business, it is much less clear whether or not that had something to do with the Taylor Swift presale fiasco. As their CEO identified, Stay Nation does not handle Swift however relatively their competitor AEG does, who nonetheless selected to make use of Ticketmaster to promote their tour tickets. So it is possible that the principle motive for all of this unpleasantness was extra benign: specifically unprecedented server demand from Swifties and many bots that have been aiming to destroy everybody’s day.

Nonetheless, the entire unfavorable press and ensuing investigations have not carried out any good for Stay Nation’s inventory worth. It completed the week down 13.30%.

2. Walmart Continues to Outperform Goal in 2022

The final time we mentioned Walmart and Goal was after each firm’s Q2 earnings. At the moment, we mentioned how their very completely different reviews confirmed that top inflation was driving extra prospects to hunt out Walmart’s bargains.

Effectively Q3 reviews at the moment are in and it is clear that these developments are persevering with. Walmart shocked buyers by upgrading its outlook for each gross sales and earnings in This autumn. Goal, in the meantime, reported a revenue decline of 52% and it warned buyers that it is bracing for a sluggish vacation season.

Why is Goal struggling whereas Walmart appears to be hitting its stride? In keeping with Goal’s personal development officer, the corporate noticed a giant improve in worth sensitivity during the last two weeks of October that has solely continued to start with of November.

Along with inflation, many purchasers are frightened {that a} recession could also be coming. And in contrast to earlier recessions, some analysts are predicting that the subsequent financial downturn could possibly be a “white collar recession.” That is typically all dangerous information for Goal — and buyers understand it.

3. Megabanks Have Begun Testing Digital {Dollars} for Wholesale Transactions

The New York Fed introduced that it is working with a number of giant banks to run a 12-week simulated check of utilizing digital tokens to settle transactions. A few of the large names that will probably be collaborating within the pilot program embody Citigroup (C), Mastercard (MA), Wells Fargo (WFC), HSBC (HSBC), and BNY Mellon (BK).

You’ll have heard chatter earlier than about international locations which might be testing out central financial institution digital currencies (CBDCs) for customers. That is not what that is. As a substitute, this wholesale CBDC would solely be used to hurry up the settlement time for transactions between monetary establishments.

So even when this blockchain pilot is successful, you will not be capable of use these digital {dollars} as cash. Nevertheless, an eventual retail CBDC is not off the desk. The White Home and Federal Reserve have each mentioned that their exploring the professionals and cons of pursuing a public-use CBDC, however have but to make a last resolution.

4. Amazon Launched One other Healthcare Service

If you have not seen, Amazon has been laser-focused these days on getting an even bigger piece of the healthcare pie. Listed here are a number of the strikes that it is made in simply the previous two years:

November 2020 – Launched Amazon Pharmacy
July 2022 – Bought One Medical – a major care membership-based group
This Week – Launched Amazon Clinic – a message-based telehealth market

The newest addition, Amazon Clinic, is initially being supplied in 32 states and might help deal with 20+ well being circumstances (see the complete checklist right here). Clients can use FSA and HSA funds to pay for consultations. However in a relatively obtrusive omission, Amazon Clinic cannot but settle for insurance coverage.

5. House Depot & Lowes Are Benefiting From the “Enhance In Place” Development

Final week, we highlighted one more signal that the housing market is in a nasty place proper now. So you’d count on that residence enchancment retailers are hurting too, proper?

Wrong

Lowes & House Depot really each topped their earnings expectations final week? Why?

Effectively whereas it is true that residence consumers are spooked by excessive costs and rates of interest, residence house owners are sitting on report ranges of fairness. And relatively than promote in an unfavorable market, many are selecting to make use of a portion of that fairness (or money financial savings if accessible) to renovate their present abodes.

So whereas homebuilder sentiment simply hit its lowest stage in a decade, residence enchancment shops are using excessive due to the “enhance in place” mindset.

What To Hold Your Eye on This Week

With this week being a vacation week, there aren’t many financial occasions on the docket. Nevertheless, there are just a few earnings calls value following:

Monday, November 21th: Dell Applied sciences (DELL), Zoom (ZM), City Outfitters (URBN)
Tuesday, November twenty second: Medtronic (MDT), Vmware (VM), Greenback Tree (DLTR), HP (HPQ)
Wednesday, November twenty third: Deere (DE), Full Truck Alliance (YMM), Nationwide Metal Firm (SID)

Workers Favorites

At IJ, we all know that many different publishers are creating nice private finance content material. So every week we wish to name out just a few current tales from our colleagues that we felt have been fascinating, eye-opening, difficult, inspiring…or simply humorous.

Listed here are our picks for this week:

JP Morgan Shopping for Rental Properties Amid Housing Market Pressures (Quick Firm)
Opinion | Is This the Finish Recreation for Crypto? (New York Instances)
Opinion: Ron Baron Explains His Investing Philosophy With Purpose of Doubling His Cash Each 5 to six Years (CNBC)

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