We’re All In This Together

Catch up with this week’s Five on Friday!

Jamie O’Donoghue
Aug 9 · 6 min read

#FromFacebook

Facebook revealed this week that it will attach its name to a pair of its top-performing subsidiary apps, Instagram and WhatsApp.

What does this mean?

Say goodbye to Instagram and WhatsApp, and utter a tepid greeting to “Instagram from Facebook” and “WhatsApp from Facebook.” According to a spokesperson, the social media giant’s rationale for rebranding two of its most successful apps is “to be clearer about the products and services that are part of Facebook.” However, some commentators have suggested other reasons. Currently, Facebook is under investigation by the Federal Trade Commission on monopoly grounds (and was recently hit with a $5 billion dollar fine from the regulatory body). The FTC is attempting to establish whether or not Facebook acquired its popular rivals in a bid to destroy threats to its dominance. By bringing the acquisitions under the umbrella of its central ‘Big Blue App’ brand, the move feels like an attempt by Facebook to offset some of these concerns.

Bet you didn’t know

In 2017, Facebook attempted to make a weird holiday called ‘Friend’s Day’, which is apparently ‘celebrated’ on the fourth of February every year.

#BeyondSubway

Struggling sandwich chain Subway has looked to a new savior in the form of Beyond Meat to help them pull together for a comeback.

What does this mean?

In a bid to revive their declining market growth, Subway has opted to partner with the plant-based meat product producer, starting with the testing of a Beyond Meatball Marinara sub. This sandwich will be available for a limited time in almost 700 locations across North America. Beyond Meat’s restaurant sales accounted for over $30 million of its net sales during its second quarter, with forecasters predicting that the U.S. market for meat alternatives will grow to roughly $2.5 billion by 2023. Subway is using partnerships in order to make a comeback, such as that with Halo Top and King’s Hawaiian, as well as a remodeling of over 10’000 U.S. stores. In 2018, Subway shut down over 1,000 of its U.S. stores but remains the world’s largest chain with over 42,000 stores. Perhaps a dip into the meatless market will be the spark behind a comeback.

Bet you didn’t know

In 2015, Subway broke the Guinness World Record for “Most people making sandwiches simultaneously.” 1,481 people participated at its annual Vegas convention.

#MergerDelivered

Food delivery services Just Eat and Takeaway.com agreed terms for a merger this week as they seek to compete with rival UberEats.

What does this mean?

After weeks of talks, Amsterdam-based Takeaway.com and British Just Eat have finalized a merger on August 5th, which will see the brand “renamed” as Just Eat Takeaway.com. This new partnership will see the new group become the market leaders in Britain, Germany, the Netherlands and Canada, a market audience of over 200 million people who all need to eat. UberEats now have a hold over more than a quarter of the U.S. market, and are continuing to grow both domestically and abroad. As well as this, Amazon, with all their power, recently backed Deliveroo with a $575 million investment. The implications of this may be that Amazon integrate Deliveroo into their Prime membership, which would give the delivery company almost carte blanche. Just Eat Takeaway.com’s deal is expected to close by the end of the year, and they will need to work together if they are to stake a claim for a sizeable chunk of market share. It will be interesting to see if any hiccups occur before the year is out.

Bet you didn’t know

The first recorded instance of food delivery comes from Naples in 1889, when King Umberto and Queen Margherita succumbed to laziness and called upon Raffaele Esposito to deliver a pizza to them at their palace.

#EarningsOverview

We’re now in the business end of earnings season, with another spate of companies reporting earnings over the past few days. To help you get up to speed, sit back, relax, and enjoy ‘The Earnings Overview’:

The Good

MercadoLibre — Thanks to strong sales growth in the key markets of Mexico and Brazil, the Latin American e-commerce giant beat the Street on its top and bottom lines.

Planet Fitness — The gym franchise comfortably beat analyst estimates and opened more locations in the first 6 months of the year “than any year in our history.”

Match Group — The dating app company easily surpassed expectations and revealed that its flagship product, Tinder, has 1.5 million subscribers than the year-ago period.

Take-Two Interactive — The video game company posted better-than-expected revenue, partly driven by a rise in digital in-game spending.

The (Not So) Bad

Evolent Health — The company missed on earnings and revenue but company shares jumped on the news that its healthcare platform saw a 14% user increase.

ShotSpotter — Despite doubling its earnings year-on-year, the gunshot-detection company disappointed investors with a reduced full-year revenue outlook.

The Walt Disney Company — Though it has already set box-office records for a single year, the entertainment giant missed estimates as it prepares to launch its new streaming services.

Zillow — Despite seeing positive growth in its new home-flipping segment, the real estate database spent heavily during the quarter, contributing to a big loss.

The Ugly

Monster Beverage — Earnings and revenue lagged behind estimates as the energy drink manufacturer felt pressure from industry rivals big and small.

#AndFinally

A Snoop Dogg (yes, Snoop Dogg) backed company has just become Europe’s most valuable fintech start-up. The Swedish firm, Klarna, offers consumers a “buy now, pay later” service and was valued on Tuesday at $5.5 billion. The firm stated that they would be using these new funds to continue its expansion into the highly competitive U.S. market. Klarna offers customers a chance to pay for products in increments, by buying an item themselves and invoicing the customer, interest-free. On Tuesday, the company announced from their Stockholm HQ that they were in sight of $1 billion annual revenue and growing in North America. They announced their partnership with Snoop Dogg earlier this year, with the legendary artist becoming an investor as well as featuring in their marketing campaign. CEO Sebastian Siemiatkowski recently said he thinks the firm has matured to a level where it could launch an initial public offering, so it will be interesting to see how things develop at the back-end of the year.

What does this mean?

With a net worth of $135 million, Snoop Dogg is one of the wealthiest musicians in America. This Dogg could buy a lot of bones for Klarna going forward.

Bet you didn’t know

Snoop Dogg’s real name is Calvin Cordozar Broadus Jr, but he adopted the stage persona “Snoop” as his mother would call him “Snoopy” as a child due to his likeness to the cartoon dog.

The Week In Numbers

200

Walgreens stores are set to be closed as the pharmacy store chain feels the heat from the ‘retail apocalypse.’

$200 million

is how much Netflix paid this week to poach Game of Thrones creators David Benioff and DB Weiss from HBO.

$162 billion

is how much money Big Tech lost in value during Monday’s market plunge.

The Takeaway

“Teamwork” seems to be a common theme in this week’s news. The coincidentally-named Takeaway.com merger with Just Eat really typifies the phrase “the enemy of my enemy is my friend” as the two join forces to take on Uber Eats. Subway and Beyond Meat also look to help each other out through teamwork, as Subway gains a more diversified audience, while Beyond gains another high profile customer. Even Snoop Dogg and Klarna have banded together to make the company Europe’s most valuable startup. Facebook has taken a slightly different approach to the teamwork method though, by deciding to “work” with its subsidiaries, Instagram and WhatsApp, by showing the world who owns them! (Ok, maybe this one was a bit of a stretch).


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MyWallSt operates a full disclosure policy. MyWallSt staff currently hold long positions in some of the companies mentioned above.

The MyWallSt Blog

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Jamie O’Donoghue

Written by

Content Specialist at MyWallSt

The MyWallSt Blog

Investing is for everyone, we show you how. MyWallSt is a multi-award winning company that helps you to become a confident and successful investor.

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