Electric Air Taxis

Hundreds of investing and finance newsletters hit my (and maybe your) inbox every week. This is the best of the best.

This week, we bring you

• Slaps Google and Apple with $17B in Fines
• Joby’s Electric Air Taxis
• Campbell’s Drops ‘Soup’
• A Structural Battery Breakthrough
• Why Can’t the U.S. Build Ships?
• Target’s New ‘Fur-fluencers’
• 3 Stocks To Consider

Thanks for reading.

Wyatt

Slaps Google and Apple with $17B in Fines

​via The Average Joe​

The EU’s highest court dealt a massive blow to Google and Apple, upholding decisions that will cost them a combined $17 billion in fines.

Apple owes Ireland $14.4 billion in back taxes for an unlawful tax deal, while Google faces a $2.65 billion antitrust fine for abusing its market position.

The tech giants have fought these penalties for nearly a decade, but the court’s ruling ​marks a major victory for EU regulators in their quest to rein in Big Tech​.

Joby’s Electric Air Taxis

​via The New Money​

Joby Aviation is on the cusp of making history by becoming the first company to receive official clearance to operate electric air taxis in the United Arab Emirates.

The company has submitted a Letter of Intent to the UAE General Civil Aviation Authority to obtain an Air Operator Certificate. If approved, this would mark a significant milestone for both Joby Aviation and ​the burgeoning electric air taxi industry in the UAE​.

Campbell’s Drops ‘Soup’

​via Sherwood​

The 155-year-old Campbell Soup Company is rebranding itself as simply “Campbell Company.”

This shift reflects the company’s evolving focus, with snacks like Goldfish crackers and Kettle Chips now making up nearly 50% of its sales in 2023.

Meanwhile, soup sales have remained relatively stagnant, ​contributing only $2.7 billion to the top line​.

A Structural Battery Breakthrough

​via New Atlas​

Researchers at Chalmers University of Technology have developed a carbon fiber structural battery that could revolutionize EVs, smartphones, and laptops.

By integrating the battery into the chassis, this innovation promises a 70% increase in EV range, credit card-thin smartphones, and laptops at half the weight.

The battery, which is as stiff as aluminum yet far lighter, may ​transform how we build cars and gadgets.​

Why Can’t the U.S. Build Ships?

​via Noahpinion​

The US commercial shipbuilding industry has been uncompetitive for over a century, producing just five oceangoing commercial ships in 2022 compared to China’s 1,794.

High labor and material costs, coupled with a lack of national motivation to compete internationally, have kept American shipbuilding lagging behind global competitors.

Despite being a major innovator in shipbuilding technology, ​the US has struggled to turn these innovations into competitive industries​.

Target’s New ‘Fur-fluencers’

​via Marketing Dive​

Target has partnered with six pet influencers, or “fur-fluencers,” to launch its first exclusive collection for pets, The Cuddle Collab.

The collection, spanning over 180 items, attempts to better recognize the 70% of Target shoppers who own a furry friend.

Marketing efforts include Target’s first reality TV-styled social content, national ads starring mascot Bullseye, ​and strategic out-of-home placements​.

What I’m reading

I get a lot of mail asking where I find all this good stuff. Here are a few of my favorite newsletters, all of which are free to subscribe to:

​​The Rollup​​

Interviews, articles, memes & research reports from Twitter, Substack, YouTube & more. Get smarter about investing.

​Equity Espresso​​

Aussie-focussed market news that gives a solid non-US perspective on global finance.

​Chartr​​

Visual insights into business, tech, entertainment, and society.

Stock ideas

Here are three of my favorites from this past week.

Analysis provided by ​public.com​.

Remember to always DYOR.

Stock ideas

Here are three of my favorites from this past week.

Analysis provided by ​public.com​.

Remember to always DYOR.

Upwork(​$UPWK​)

Bullish Case

• Platform Leadership: Upwork connects 870k buyers with freelancers across 90 categories.
• Strong Revenue: With a 22.6% 3-year revenue CAGR and projections of 10-14% future growth, Upwork demonstrates robust financial performance.
• AI-Driven Opportunities: Upwork’s freelancer base is adapting to AI, with new AI-related categories growing 67% year-over-year.

Bearish Case

• Stock Decline: Upwork’s stock has fallen 85% from its highs due to slowing growth and AI disruption fears.
• Market Pressures: Upwork faces increasing competition from platforms like Fiverr and Toptal.
• Recession Vulnerability: As a freelance marketplace, Upwork is susceptible to economic downturns, which could lead to reduced business activity.

​Full analysis​

Axcelis Technologies (​$​​ACLS​)

Bullish Case

• Strong Growth Potential: XPOF’s sold licenses far exceed open studios, indicating significant future growth.
• Franchise Model Strength: With less than 2 conflicts per 1,000 units and zero lawsuits for Club Pilates, often trading at 20x EBITDA or more.
• Strategic Focus: The new CEO is open to divesting underperforming concepts and likely share repurchases.

Bearish Case

• Ongoing SEC Investigation: An SEC investigation created uncertainty around the company’s operations and financial reporting.
• Competitive Industry Pressures: The fitness industry is highly competitive and subject to changing consumer preferences.

​Full analysis​

AppLovin (​$​​APP​)

Bullish Case

• Market Leadership: AppLovin ranks third in mobile ad networks globally, with projected 2024 revenues of $4.4 Billion.
• Competitive Advantage: The Axon AI algorithm provides a significant edge, improving ad tech efficiency by 500% between 2020 and 2022.

Bearish Case

• Mobile Gaming Dependency: A large portion of AppLovin’s ad revenues comes from mobile gaming, a highly competitive market with high churn rates.
• Stock Volatility: Despite recent rebounds, APP’s stock has shown significant volatility.
• Competitive Pressures: The mobile ad tech industry remains highly competitive, with major players like Google, Meta, and Unity vying for market share.

​Full analysis​

That’s it for this week.

If you write amazing content and want to be featured, please send it through for consideration.

Cheers,

Wyatt

Disclosures

• There are affiliate links above; we’ll get a couple of bucks if you take action after you click.
• Nothing above is financial advice. DYOR, you filthy animal.