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Wizz Air’s Unlimited Europe Flights
Wizz Air, a Hungarian low-cost carrier, has introduced a $550/year pass offering unlimited flights across Europe.
This move could revolutionize travel for frequent flyers, serving nearly every European country with destinations including Athens, Madrid, Paris, and Reykjavik.
However, the pass comes with caveats: a 10 euro booking fee per flight, extra charges for more than one personal item, and limited availability of 10,000 passes.
AI Gets a Brain
Swiss startup FinalSpark is revolutionizing AI by offering scientists cloud access to biocomputers made from human brain cells for $500 a month.
This groundbreaking approach claims to use 100,000 times less energy than current AI systems, potentially addressing the industry’s massive energy consumption.
The technology uses organoids – clumps of human brain cells – that can compute for up to 100 days, trained using dopamine and electrical signals to mimic natural neural processes.
FDA’s Vaping Addiction Therapy
Achieve Life Sciences has received FDA Breakthrough Therapy Designation for cytisinicline, a plant-based compound aimed at treating vaping addiction.
This novel drug, which binds to nicotine receptors in the brain, showed promising results in early trials, with participants 2.6 times more likely to quit vaping compared to a placebo.
As vaping addiction rates soar globally, this development could mark a significant milestone in addressing a growing public health concern.
Ford Hits the Brakes on EV Ambitions
Ford is recalibrating its electrification strategy, canceling plans for a fully electric SUV and reducing EV spending from 40% to 30% of its annual capital expenditures.
The automaker is shifting focus to more profitable gas-electric hybrids and extended-range electric vehicles (EREVs) popular in China. This pivot comes as Ford’s EV unit faces potential losses of up to $5.5 billion this year.
Netflix Makes ‘Emily in Paris’ Shoppable
Netflix and Google have partnered to bring a shoppable integration to the latest season of “Emily in Paris,” leveraging Google’s Lens technology.
Viewers can scan on-screen looks using their mobile devices to find similar items, blending entertainment with e-commerce. This approach includes shoppable pause ads and title sponsorships within Netflix’s ad-supported plan, marking a monumental step in the streaming platform’s advertising strategy.
Wireless-Powered Color E-Paper
Digital View has unveiled a groundbreaking color E Ink display that operates without batteries, powered instead by wireless transmission.
This technology combines Wi-Fi connectivity for remote content updates with wireless power, eliminating the need for wired connections or battery replacements. While not suitable for e-readers, it opens up exciting possibilities for digital signage in retail, museums, and public spaces.
What I’m reading
I get a lot of mail asking where I find all this good stuff. Here are a few of my favorite newsletters, all of which are free to subscribe to:
Visual insights into business, tech, entertainment, and society.
Interviews, articles, memes & research reports from Twitter, Substack, YouTube & more. Get smarter about investing.
Aussie-focussed market news that gives a solid non-US perspective on global finance.
Stock ideas
Here are three of my favorites from this past week.
Analysis provided by public.com.
Remember to always DYOR.
Cronos Group ($CRON)
Bullish Case
- Strong Revenue Growth: Cronos achieved 46% YoY revenue growth and a 23% gross margin (+700bps).
- Market Leadership: The Spinach brand leads with a 16% share in edibles, indicating strong brand recognition.
- Strategic Positioning: With $800 Million in cash and positive cash flow from operations, Cronos is well-positioned to benefit from industry consolidation.
Bearish Case
- Industry Challenges: The cannabis industry still faces pricing pressures and regulatory hurdles, which could impact Cronos’ profitability.
- Uncertain US Market Entry: Despite its relationship with Altria, the timeline and success of Cronos’ entry into the US market upon legalization remain uncertain.
Quest Resource Holding ($QRHC)
Bullish Case
- Strong Organic Growth: Quest has shown new logo generation in 2024, potentially adding more revenue than in the prior three years combined.
- Margin Expansion: Investments in automation and AI enhancements are poised to improve operating leverage and EBITDA margins.
- Attractive Financial Model: With 90%+ contractually recurring revenue and a cash-generative business model, Quest offers predictable growth.
Bearish Case
- Landscape Challenges: As a smaller player, Quest faces pressure to maintain its market position and win new large accounts consistently.
- Leverage Concerns: With a leverage ratio of ~3.5x and interest coverage of ~2.6x, Quest’s debt load could limit financial flexibility.
Franklin Covey ($FC)
Bullish Case
- All Access Pass: The AAP subscription model has increased gross margins by 1000bps since 2017, with Q3 2024 showing 2.7% revenue growth and 8.7% YoY increase in deferred revenue.
- Expansion Capabilities: Franklin Covey aims to grow from 265 to 400 client partners, enhancing sales capabilities and driving revenue growth.
- Strong Financial Position: With $36 Million in net cash and aggressive share repurchases, FC’s capital-light model offers high incremental margins.
Bearish Case
- Sales Efficiency Risks: Employee reviews indicate potential issues with territory allocation for new hires, raising concerns about the company’s ability to grow beyond 300 client partners.
- Leadership Complacency: Long tenures of board members and key executives, including the chairman since 1999 and CFO since 2001, may lead to complacency and lack of innovation.
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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.
