Good Morning!
Happy Wednesday. Here’s what’s happening today:
👉 Target beats estimates 🎯
👉 Google’s legal troubles ⚖️
👉 Biden and Xi together again 🤝
Off we go!
TARGET: Hits the Bullseye
On Wednesday, Target surpassed Wall Street's expectations for quarterly sales and significantly exceeded earnings forecasts. This success was mainly due to increased purchases in frequently bought categories, such as food and beauty, which compensated for the overall decline in consumer spending. Target experienced a decrease in comparable sales for the second consecutive quarter. This industry measure, also known as same-store sales, excludes the effects of new store openings, closures, and remodeling.
During the third quarter, Target's total revenue decreased from the $26.52 billion reported in the same period last year. Year-over-year, comparable sales saw a decline of nearly 5%, attributed to a reduction in purchases of non-essential items by customers. Additionally, digital sales saw a 6% decrease compared to the previous year. Despite facing sales difficulties, the retailer demonstrated improvement in recovering its profits.
Source: Business Journal
In the third quarter, its net income surged by approximately 36% to $971 million, equivalent to $2.10 per share, up from $712 million, or $1.54 per share, in the same period the previous year. However, total revenue declined from the $26.52 billion reported in the year-ago period.
Earnings:
EPS: $2.10 vs. $1.48 expected
Revenue: $25.4 billion vs. $25.24 billion expected
🎯 GRIT TAKE: The retail sector is experiencing a… upgrade to VIP to read the full GRIT take. Click below!
GOOGLE: Courtroom Confessions
On Tuesday, Sundar Pichai, the CEO of Alphabet, acknowledged that Google gives Apple a 36% share of the search revenue generated through Safari as part of their agreement to make Google the default search engine. This arrangement is a central element of the antitrust allegations brought by the Justice Department.
This information surfaced during a different legal case, where Google is being sued by Epic Games, the creator of Fortnite. During antitrust proceedings in Washington, D.C., an expert speaking for Google inadvertently disclosed this percentage in public court on Monday. The attorney representing Epic Games then claimed that Google compensates Samsung, the leading hardware partner for Android, with less than half of the amount it pays Apple.
Source: Mint
In response, Pichai stated that although he wasn't entirely sure, such a scenario could be true. In 2022, Google's expenses for Traffic Acquisition Costs (TAC) amounted to approximately $49 billion. These TAC expenditures cover all payments Google makes to businesses like Apple and Samsung to position its search engine prominently for users.
Democratizing Access to Web3.
Sponsored By: Tokens.com
Dive into the future of Web3 and Gaming. Generation Z and Alpha, set to be history's largest consumers, are spearheading the gaming evolution. Citibank foresees vast expansion in web3, the metaverse, and tokenization, with gaming leading the entertainment charge.
Tokens.com, recognized by Forbes, WSJ, and The BBC, is also a dominant force in web3 gaming, helping brands create immersive experiences in Roblox, Fortnite, and any other platform.
As ecommerce enters a new era with 3D metaverse integration, Tokens.com is at the forefront with innovative tools. Tomorrow's tech giants are web3-focused.
Ready for the next level? Click to explore!
*This is PAID advertising content and the disclaimer at the bottom of this email MUST be read carefully.
BIDEN: Xi, Friends Again?
On Wednesday in San Francisco, a meeting is scheduled between U.S. President Joe Biden and Chinese leader Xi Jinping, aiming to ease growing trade and military tensions between the U.S. and China. However, the Biden administration is tempering expectations regarding any significant breakthrough from this encounter. Wall Street will have all eyes on the meeting as they will be looking for some common ground. China comes to the negotiation table at a time when its economy has slowed down. The manufacturing sector in Asia is currently facing a decline in activity, reaching levels last witnessed during the height of the COVID-19 pandemic in 2020.
The Global Supply Chain Volatility Index by GEP indicates that suppliers in Asia are encountering the highest increase in unused capacity since June 2020.
Source: CNN
This trend is occurring as the region's economic growth remains muted, coupled with a decrease in demand from the U.S. market, where consumers are reducing their expenditures.
Headlines You Need To Know: 🎙
Citigroup begins layoffs
Mortgage demand climbs to the highest level in 5 weeks
PGA Tour is offering equity to its players
House passes bill to avoid government shutdown
Record UAW deal isn’t getting full support
Ken Griffin sees Miami replacing NYC as finance capital
Buying bonds in a rocky market
The soft landing is coming into view
Yahoo’s Costly Choice 💲
This company made a horrible mistake by choosing Mark Cuban over Google and Facebook. Yahoo was at the top of the world in 2000, being valued at $120 billion. But this would come to a quick end. Yahoo wanted to get into search engines, so they looked into acquiring Google. Unfortunately, they turned down Google’s offer twice, which was $1 million in 1998 and $3 billion in 2003. Instead, they chose to acquire Mark Cuban’s startup broadcast.com for $5.6 billion, which was completely shut down a few years later.
Source: WSJ
Mark Zuckerberg was on the verge of selling Facebook to Yahoo for $1 billion, but Yahoo claimed that Facebook wasn’t worth $1 billion. In 2008, Microsoft offered to buy Yahoo for $44 billion, but Yahoo was insulted by the offer. Unfortunately, they sold to Verizon in 2016 for $4 billion.
Chart of the Day
📊 US Federal Debt Maturing in 12 Months
$8.2T of US debt will be maturing in the next 12 months
Source: Bloomberg, Tavi Costa
GRIT Meme of the Day 😂
Tag GRIT Capital on social media for a chance to be featured in our meme or Tweet of the day in our GRIT daily newsletter! 👇
Source: @wallstreetoasis
Have feedback to share? Click HERE. Good or bad, we are always eager to improve our newsletter.
The author, publisher or insiders of the publisher may currently have long or short positions in the securities of the companies mentioned herein, or may have such a position in the future (and therefore may profit from fluctuations in the trading price of the securities). To the extent such persons do have such positions, there is no guarantee that such persons will maintain such positions.
This newsletter contains content sponsored by Tokens.com Corp. Grit Capital Corporation (“Grit”). has been paid by Tokens.com Corp. to conduct an advertising campaign of 6 months on this newsletter and other websites and social media platforms owned and operated by Grit. Grit has been paid in combination of cash and stock for this advertising campaign and currently holds an ownership interest in Tokens.com Corp. as of the published date of this newsletter. Grit does not guarantee that it will maintain its ownership interest in Filament Health and may increase or sell such interest at any time. Be aware that the payment received by Grit may put Grit in a conflict of interest with the investor/reader.
Grit is a publisher of financial information, not an investment advisor. Grit does not provide personalized or individualized investment advice or information that is tailored to the needs of any particular recipient. Grit does not guarantee the accuracy or completeness of the information provided in this page. All statements and expressions herein are the sole opinion of the author or paid advertiser.
THE INFORMATION CONTAINED ON THIS WEBSITE IS NOT AND SHOULD NOT BE CONSTRUED AS INVESTMENT ADVICE, AND DOES NOT PURPORT TO BE AND DOES NOT EXPRESS ANY OPINION AS TO THE PRICE AT WHICH THE SECURITIES OF ANY COMPANY MAY TRADE AT ANY TIME. THE INFORMATION AND OPINIONS PROVIDED HEREIN SHOULD NOT BE TAKEN AS SPECIFIC ADVICE ON THE MERITS OF ANY INVESTMENT DECISION. INVESTORS SHOULD MAKE THEIR OWN INVESTIGATION AND DECISIONS REGARDING THE PROSPECTS OF ANY COMPANY DISCUSSED HEREIN BASED ON SUCH INVESTORS’ OWN REVIEW OF PUBLICLY AVAILABLE INFORMATION AND SHOULD NOT RELY ON THE INFORMATION CONTAINED HEREIN. INVESTORS SHOULD OBTAIN INDIVIDUAL INVESTMENT ADVICE BASED ON THEIR OWN CIRCUMSTANCES BEFORE MAKING AN INVESTMENT DECISION
No statement or expression of opinion, or any other matter herein, directly or indirectly, is an offer or the solicitation of an offer to buy or sell the securities or financial instruments mentioned.
The author, publisher or insiders of the publisher may currently have long or short positions in the securities of the companies mentioned herein, or may have such a position in the future (and therefore may profit from fluctuations in the trading price of the securities). To the extent such persons do have such positions, there is no guarantee that such persons will maintain such positions.
Any projections, market outlooks or estimates herein are forward looking statements and are inherently unreliable. They are based upon certain assumptions and should not be construed to be indicative of the actual events that will occur. Other events that were not taken into account may occur and may significantly affect the returns or performance of the securities discussed herein. The information provided herein is based on matters as they exist as of the date of preparation and not as of any future date, and Grit undertakes no obligation to correct, update or revise the information in this document or to otherwise provide any additional material.
Grit does not accept any liability whatsoever for any direct or consequential loss howsoever arising, directly or indirectly, from any use of the information contained herein.
By using the Site or any related social media account, you are indicating your consent and agreement to this disclaimer and our terms of use. Unauthorized reproduction of this newsletter or its contents by photocopy, facsimile or any other means is illegal and punishable by law.
Grit publishes content through Beehiiv, an email newsletter platform and operates the websites Gritcap.io and Get-versed.io and and social media accounts (including but not limited to): Instagram, Twitter, Linkedin, TikTok, YouTube, SnapChat, Facebook and Threads. By accessing Grit’s content, you agree to be bound by the Terms of Use and Privacy Policy, in effect at the time you access this website or any page thereof or any of Grit’s content. The Terms of Use and Privacy Policy may be amended from time to time. Nothing on this website or Grit constitute an offer to sell, or a solicitation of an offer to buy or subscribe for, any securities to any person in any jurisdiction where such an offer or solicitation is against the law or to anyone to whom it is unlawful to make such offer or solicitation. Grit is not an underwriter, broker-dealer, Title III crowdfunding portal or a valuation service and does not engage in any activities requiring any such registration. Grit does not provide advice on investments or structure transactions. Offerings made under Regulation A under the U.S. Securities Act of 1933, as amended (the "Securities Act") are available to U.S. investors ONLY who are “accredited investors” as defined by Rule 501 of Regulation D under the Securities Act well as non-accredited investors, who are subject to certain investment limitations as set forth in Regulation A under the Securities Act. In order to invest in Regulation A offerings, investors may be asked to fill out a certification and provide necessary documentation as proof of your income and/or net worth to verify that you are qualified to invest in offerings posted on this website. All securities listed on this site are being offered by, and all information included on this site is the responsibility of, the applicable issuer of such securities. Grit does not verify the adequacy, accuracy or completeness of any information. Neither Grit nor any of its officers, directors, agents and employees makes any warranty, express or implied, of any kind whatsoever related to the adequacy, accuracy, valuations of securities or completeness of any information on this site or the use of information on this site. Neither Grit nor any of its directors, officers, employees, representatives, affiliates or agents shall have any liability whatsoever arising from any error or incompleteness of fact, or lack of care in the preparation of, any of the materials posted on this website. Investing in securities, especially those issued by start-up companies, involves substantial risk. investors should be able to bear the loss of their entire investment and should make their own determination of whether or not to make any investment based on their own independent evaluation and analysis.
Please read: Terms of Use, Privacy Policy, Disclosure Policy, State Disclosure Policy, and Disclaimer Policy
If you have any questions please contact us at [email protected]