Good Morning!
Get ready for a wild ride! 🎢 Our newsletter today is loaded with thrilling updates:
👉 Walmart beats expectations
👉 SpaceX planning to IPO
👉 Starbucks’ workers strike on busiest day
Here’s what is coming your way:
WALMART: Checkout Success
On Thursday, Walmart reported fiscal third-quarter earnings that outperformed Wall Street's forecasts, driven by a rise in sales. Yet, the company adopted a wary stance in its outlook, acknowledging a downturn in consumer purchases as the quarter drew to a close.
Walmart's financial performance in the fiscal third quarter showcased a remarkable turnaround, with net income climbing to $453 million, or 17 cents per share. This marks a stark contrast from the loss of $1.8 billion, or 66 cents per share, experienced in the same quarter of the previous year, largely attributed to a settlement from opioid litigation. The company also witnessed a boost in revenue, escalating to $152.8 billion, surpassing the figure from the prior year.
Source: Linkedin
In the U.S. market, Walmart saw an uptick in both the frequency of customer visits and the average spending per visit. Transaction numbers rose by 3.4%, and the average purchase value increased by 1.5%. The company's U.S. e-commerce sales jumped by 24%, with a 15% global rise year over year.
Looking ahead to the holiday season, there is growing investor confidence in Walmart's ability to drive sales, even as customers become more judicious in their spending habits. Walmart's role as the nation's top grocer plays a crucial part in maintaining steady in-store traffic.
Earnings:
Earnings per share: $1.53 adjusted vs. $1.52 expected
Revenue: $160.8 billion vs. $159.7 billion expected
🎯 GRIT TAKE: Walmart is diversifying its… upgrade to VIP to read the full GRIT take. Click below!
SpaceX: Galactic Gamble
SpaceX is engaged in discussions about a potential IPO for its swiftly growing Starlink satellite division, possibly as soon as late 2024, as per insiders. This strategy is aimed at capitalizing on the substantial interest in space-based communication services.
To facilitate this, SpaceX is restructuring, moving its satellite division's assets into a wholly owned subsidiary. This entity is then planned to be independently listed in the IPO.
Elon Musk has been suggesting the likelihood of a Starlink IPO for a number of years, though a definite timetable for such an event has been elusive. Musk indicated in 2021 that the company would consider a public offering once it had a more stable projection of its cash flow, a critical measure of fiscal health.
Source: Money
Yet, Musk relayed to his team last year that the IPO could still be some years away. Contrasting this, the Starlink segment has recently experienced rapid growth, with SpaceX forecasting around $10 billion in total revenue from Starlink the following year.
Founded in 2002, SpaceX maintains a vast array of over 5,000 satellites orbiting Earth, providing high-speed internet access across more than 60 countries. The company has invested billions in the development and expansion of this satellite network.
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*This is PAID advertising content, and the disclaimer at the bottom of this email MUST be read carefully.
STARBUCKS: “No Contract, No Coffee”
Starbucks is currently experiencing the most extensive strike organized by a union in its history, as baristas from more than 200 of its locations nationwide have initiated a walkout. This major labor protest is taking place on the same day as Starbucks' Red Cup promotion, a popular event where the coffee chain distributes reusable red cups for the holiday season. The employees, rallying under the banner of Starbucks Workers United, are expressing their frustration about the ongoing issue of understaffing at Starbucks outlets, which they believe is more pronounced during promotional periods.
Starbucks Workers United has declared that the purpose of the strike is to address the issue of understaffing at promotional events. The workers are also advocating for the suspension of mobile ordering on such high-demand promotional days in the future
Source: Guardian
Concurrently, Starbucks staff in New York City are escalating their legal battle with the company. They've added 14 more complaints to their list of allegations, accusing Starbucks of contravening the city’s labor laws regarding scheduling. These additional complaints are a continuation of a series of grievances that have been accumulating since February.
Headlines You Need To Know: 🎙
Macy’s stock pops 10% on earnings
Alibaba shares slide over 8% after it shelves cloud spinoff
Cisco stock plunges on light guidance
Xi draws standing ovation from US business leaders
Wall Street loves Washingtons’ new debt approach for now
Is a bear market lurking around the corner?
Senate passes stopgap funding bill to avert shutdown
Why Xi can no longer brag about the Chinese economy
Humble Beginnings 🎮
Slack redefined how we communicate at work, but did you know that it all started from a failed video game? Before Slack was worth billions, it was called Glitch. Glitch was an ambitious online game full of whimsy and creativity. But despite its charm, Glitched struggled. The user base was simply not growing. While Glitched was failing, Stewart Butterfield and his team faced a critical decision. But amidst the chaos, they noticed something. Their internal communication tool, designed to coordinate their game development, was something special.
Source: NY Times
This tool was the early version of Slack. It was intuitive, fun, and more efficient than email. Fast forward to today, slack was acquired by Salesforce in a $27.7 billion mega-deal that boasts 20 million active users to date
Chart of the Day
📊 New Car CPI
Between January 2020 and September 2023, new cars increased by 22%
Source: Fed, Unusual Whales
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: @mikefischerfl
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