The Update Issue: An Unexpected Hit, VC Funding Slows, Holiday Marketing Gaffes, and Inflationary Humor

It happened again: A blast from the past is suddenly an overnight hit... Back in December 2020, I wrote about how a viral TikTok video led to Fleetwood Mac's No. 1 hit from 1977, "Dreams," reentering the Billboard Hot 100 a mere 43 years after its debut. The phenomenon of kids rediscovering the music of […] Not rendering correctly? View this e-mail as a web page [here](. [Empire Financial Daily] The Update Issue: An Unexpected Hit, VC Funding Slows, Holiday Marketing Gaffes, and Inflationary Humor By Berna Barshay --------------------------------------------------------------- [$200 oil is coming... Here's how to prepare]( Goldman Sachs believes that oil could fly past $200 a barrel, which would send certain oil stocks up 10 times or even 20 times from here. [Get your portfolio ready right here](. --------------------------------------------------------------- It happened again: A blast from the past is suddenly an overnight hit... Back in December 2020, I wrote about how [a viral TikTok video]( led to Fleetwood Mac's No. 1 hit from 1977, "Dreams," reentering the Billboard Hot 100 a mere 43 years after its debut. The phenomenon of kids rediscovering the music of their parents – or grandparents – has been an interesting sideshow to the stunning rise of TikTok. Well – it's happened again. But this time the rediscovered song reached the coveted No. 1 spot – quite a feat given the song had peaked at just No. 30 when it debuted in 1985. The song is ["Running Up That Hill (A Deal With God)"]( by British experimental pop artist Kate Bush. Here it is sitting on top of the iTunes chart this weekend, with the 63-year-old Bush beating out contemporary chart toppers like Luke Combs, Harry Styles, and Lady Gaga... Source: iTunes The tune – with tons of synthesizers and in all its 1980s glory – was one of my favorites as a teen, so I am happy to see that Gen Z now appreciates its excellence. The youngsters were introduced to the 37-year-old track not by TikTok this time, but instead by streamer Netflix (NFLX), which featured the song in a prominent scene in its hit show Stranger Things. "Running Up That Hill" has been knocked out of the top spot by Beyoncé's recently dropped "Break My Soul," but is holding steady at No. 2. As an aside, "Break My Soul" unfolds like an anthem for [the Great Resignation](. Check out these lyrics... And I just quit my job I'm gonna find new drive Damn, they work me so damn hard Work by nine Then off past five And they work my nerves That's why I cannot sleep at night But with the news of companies beginning hiring freezes and rescinding job offers, the suddenly omnipresent song feels like a possible finale for the economic times we have been living through, the blow-off top that comes before the decline... Back to the unlikely 2022 pop star Kate Bush... the ability of popular music to have a second life like this is further proof that music really is the longest duration media asset out there. Just look at how Kate Bush is experiencing a personal windfall, almost four decades later... Source: Twitter/@imshanereaction Consumption of music continues to grow steadily every year, yet it remains, according to a recent Goldman Sachs (GS) report, "one of the most under-monetized forms of entertainment." Because of the potential to keep growing as more consumers adopt streaming services and more platforms – from TikTok to video games to TV and movies – licensed music content led Goldman to boost its projections for industry growth. The bank's analysts are now calling for music industry revenues to double to $131 billion by 2030. That's why I continue to be bullish on the two publicly traded pure play music companies, Warner Music Group (WMG) and Universal Music Group (UMG NA). Both have tumbled considerably this year – down 42% and 27%, respectively – but these businesses are both recession and inflation resistant in my opinion. So get them while they are on sale. Stranger Things' ability to generate so much interest in a song from the 1980s should also be registered as evidence that Netflix still has the power to be a very relevant and influential force in pop culture. While sentiment has soured on this OG streamer, I remain bullish on NFLX shares. Could the [venture capital ('VC') bubble]( finally be deflating? According to this chart from Professor Scott Galloway, maybe... Source: Section4 Many market watchers – myself included – have been stunned by the froth in both which companies the venture community has been funding and at what valuations. With venture funding down 21% in the first quarter and the public markets basically shut for now as a vehicle for exiting no-profit or low-profit private investments, this could be just the beginning. This slowdown could prove lethal for many startups – even some of the so-called $1 billion unicorns... Just last week, 15-minute grocery delivery service JOKR announced it would depart the New York and Boston markets and instead focus on the underserved Latin American market. JOKR has been around for just a year, and it raised more than $430 million in that time, including $260 million just last November. At that time, it had a $1.2 billion valuation and boasted it was "one of the fastest companies to reach unicorn status in history." Turns out delivering low-margin groceries in 15 minutes isn't the greatest business after all. Nor was it actually the most original... If history doesn't repeat, it certainly rhymes... Anyone remember Kozmo.com and Urban Fetch? They were also ultra-quick delivery services – and they were even worse, because they carried no minimums and you could literally order a Coke and a pack of candy and that's it. You could also get a VHS rental. My colleagues and I were big fans back when we worked at a startup financed by the prior VC bubble twenty-odd years ago. VHS tapes may have died... but venture capital excess is forever. I may still have a VHS tape from the Urban Fetch liquidation somewhere in the back of a closet. Today, like any good value investor, I visited my JOKR distribution center down the block and stocked up on tons of 70% off pantry staples. I'm making the most of my [venture capital lifestyle subsidy]( while I can! The more things change, the more they stay the same. Yesterday, I wrote about Gap's (GPS) [Old Navy chain stumbling in its attempt at heightened inclusivity]( – well, it's not the only one... Although Juneteenth officially became a federal holiday last year, this is the first year that banks and the stock market were closed for the day in observance since the holiday only became "federal official" on June 17 last year. This year the financial system had more time to plan ahead to close. With more lead time, corporate America seized on the opportunity to commercialize and cash in on the holiday... We saw a plethora of Juneteenth-themed merchandise hit the shelves, from T-shirts to books to paper plates at retailers like Amazon (AMZN), Etsy (ETSY), and Walmart (WMT). Walmart, however, suffered a pretty high-profile failure with its private label ice cream celebrating the holiday. Its infamous Juneteenth ice cream was red velvet and cheesecake-flavored and its label encouraged consumers to "share and celebrate African-American culture, emancipation and enduring hope." The product was met with disapproval, seen as an abject and insincere money grab out of tune with the nature of the holiday. Making matters worse, the unusual flavor appears to be stolen from the line-up of a small Black-owned ice cream company... Source: Twitter/@lifeofvontay Unsurprisingly, the ice cream was quickly pulled from the shelves. Better luck next year, Walmart. --------------------------------------------------------------- Recommended Link: [Do you own ANY EV stocks?]( If you think it's too late to get into EV stocks, think again. Our proprietary analysis indicates that the EV market is set to grow by 133% on average every year. Former Nissan executive Andy Palmer compares the shift to "moving from the horse to the car." [These are the five EV stocks you must own](. --------------------------------------------------------------- With Juneteenth and Pride month converging, June will clearly be the biggest minefield of a month for corporate marketers and publicists around the globe... Which brings me to my favorite Pride Month fail this year. Given its PG-13 nature, I'll just quote from this article about the well-intentioned but woefully executed attempt by Burger King Austria to celebrate Pride. Forbes explains... For Pride Month, fast food giant Burger King Austria took to Instagram and unveiled the "Pride Whopper," which it will sell until June 20. It is the same normal hamburger sandwich, but with "two equal buns," which means you can get it with ether two top halves or two bottom halves. There are some problems with this, as Buzzfeed editor Jarret Wieselman pointed out in a tweet... Source: Twitter/@JarrettSays And if you don't understand what was wrong here... ask a friend, because I won't be tackling this in the mailbag! Better luck next year, Burger King Austria! And now for something a little more wholesome – some inflationary humor I shared on my Twitter last week... Source: Twitter/@Hedge_FundGirl In the mailbag, readers share what's on their minds in this volatile market... Keep sending me what's on your mind as we navigate these rocky waters in the markets. I will take your feedback into consideration as I pick the topics I will write about in the future. What aspects of the venture capital lifestyle subsidy will you miss the most? Cheap Ubers, low-fee restaurant delivery, free shipping on everything? Do you think we have a venture capital bubble that is about to burst? Do you think retailers are over commercializing holidays... or is it just the nature of the beast? [Click here](mailto:feedback@empirefinancialresearch.com?subject=Feedback%20for%20Berna) to send an e-mail with your thoughts. "Hi Berna, regarding your question that referenced 'relative safety', I felt somewhat comfortable with my portfolio as the market crumbled in April and my account value held its ground due to my overweight position in Berkshire Hathaway (BRK-B). I was tempted to exit a healthy part of the position as it blasted to $362 in late March, but since it was a key long-term holding, I rejected that idea. My core holding has since shed about 26% from that high point. I've concluded that yes, safety is indeed relative not absolute when we're talking stocks. Thanks for your great research." – Mark S. Berna comment: Mark, good point about safety being relative. It certainly does feel like there have been few places to hide lately. In the first leg down, many higher-quality stocks held up – but lately, everything is getting hit. I think you will be more than fine in the long-term with Berkshire Hathaway though. "It's about inflation for the middle class – Old Navy customers. Gas prices to go to work, at the grocery store, and everything else. The internet also creates caution." – Helmut L. Berna comment: I agree, Helmut. Old Navy is not operating in a vacuum. All these things you mention are hitting the consumer psyche. "Hi Berna, No interest in shopping here but I have planned a couple of family vacations (drivable) and attended a couple of good concerts. The bargains I am considering and adding to include equities such as Berkshire, Alphabet (GOOGL), and your recent Empire Stock Investor pick in energy, which are all doing sizable buybacks down here. Keep up the great writing and research!" – Stephen T. Berna comment: Stephen – those three are all great long-term picks. They may bounce around with the market, but they are great long-term investments. Regards, Berna Barshay June 23, 2022 If someone forwarded you this e-mail and you would like to be added to my e-mail list to receive e-mails like this every weekday, simply [sign up here](. © 2022 Empire Financial Research. All rights reserved. Any reproduction, copying, or redistribution, in whole or in part, is prohibited without written permission from Empire Financial Research, 601 Lexington Ave., 20th Floor, New York, NY 10022 [www.empirefinancialresearch.com.]( You received this e-mail because you are subscribed to Empire Financial Daily. [Unsubscribe from all future e-mails](