🦄 Softbank’s frowning unicorns

…and Lyft does ad-sponsored DJ sets [Disclosures](   A frown quarter (STR/JIJI PRESS/AFP via Getty Images)   Yesterday’s Market Moves   Dow Jones 32,833 (+0.09%) S&P 500 4,140 (-0.12%) Nasdaq 12,644 (-0.10%) Bitcoin $23,788 (+2.63%) Dow Jones 32,833 (+0.09%) S&P 500 4,140 (-0.12%) Nasdaq 12,644 (-0.10%) Bitcoin $23,788 (+2.63%) Hey Snackers, This may be the best summer job yet: British wine retailer Majestic says it’ll pay someone to [determine]( whether wine really tastes better on vacation… by drinking wine… on vacation. Stocks lost their early gains yesterday after [Nvidia’s]( profit warning, ending the day barely changed. July’s consumer inflation numbers drop today, and investors have their fingers crossed for signs of deflation, which could calm the Fed’s rate-hiking crusade. Frown Softbank lost a record $23B last quarter as its formerly booming tech investments turned sour Never disappoints on the quirky decks... Japanese investment giant [Softbank]( is famous for its simple but poetic earnings decks, which include pictures of unicorns falling into the "Valley of Coronavirus" ([slide 50]( and a powerful slide that just says "Many Regrets" (11). To understand the mood of Softbank's latest earnings, check out this frown on [slide 4](. - Softbank reported its largest quarterly loss ever. The mind-numbing figure: $23.4B. Softbank's tech-centric Vision Fund alone [lost]( nearly $22B. - Blame plunging tech stocks — from [DoorDash]( to [WeWork]( to [Uber]( — which Softbank was heavily invested in. The Vision Fund has lost [$50B]( in gains from its peak (#WeCrashed). - Losses were spread across Softbank’s portfolio of 300+ companies, including Klarna, [DiDi]( (the Uber of China), and Singapore’s [superapp]( [Grab](. The decks are still iconic... but Softbank’s investments have soured. Rising interest rates have crushed high-flying valuations, while China’s regulatory crackdown on tech pummeled Softbank’s investments in Asia. Now Softbank is selling to raise cash and soothe losses: - Softbank has sold its entire stake in Uber, [Slack]( [Opendoor]( Nvidia, and others. It says it made a $1.5B profit by selling its long-held Uber stake. - Cutting back: The Vision Fund approved just $600M in investments from April to June, down from a record $20.6B a year earlier, and job cuts could be coming. THE TAKEAWAY It can be hard to see the downside… when the upside is so in your face. Softbank was riding high when tech was booming. For 2020, it [posted]( a record $46B profit — the highest for a Japanese company, and $5B more than [Google]( earned that year. CEO Masayoshi Son [said]( he’d become "somewhat delirious" when prices soared, and regrets all the $$ he funneled into startups. Now Softbank is imposing discipline to weather the markets’ ups and downs. #ads As ride-hailing rebounds, Lyft’s launching an ad biz (feat. in-car tablets) to gain an edge over Uber Forget the aux cord… Soon you’ll be able to control music in [Lyft]( rides without nervously asking your driver — but you’ll have to watch ads. Yesterday, Lyft [announced]( Lyft Media, a new unit focused on advertising. Ride-hailing demand has roared back to life, and Lyft wants to monetize users’ eyeballs: - Brands riding shotgun: Lyft is adding tablets to its drivers’ cars so that brands can serve ads on the go. Think: a [Vita Coco]( ad in the app when you book, and another in the car to the supermarket. - New features: Riders will be able to choose music and tip drivers through the tablets. Lyft said drivers will make extra $$ from in-car ads. Wienermobile ETA… Two years ago, Lyft bought Halo Cars, a startup that makes car-top screens. Since then, Lyft has grown its marketing biz by putting ads on car roofs, bike-sharing docks, and in its app. Think: Oscar Mayer Wienermobiles moving on the Lyft map instead of a car. It’s good timing to appeal to advertisers: - More rides = more eyes: Lyft’s stock [soared]( 46% last week after it reported its biggest bump in active riders since the pandemic began. But the stock’s still down 55% this year. THE TAKEAWAY The route less traveled by may make the difference… While Lyft has stayed narrowly focused on rides, Uber has grown its Eats biz into one of the largest food deliverers (and has expanded to everything-delivery). But now Lyft could capitalize on its strength: riders’ eyeballs. While Uber also sells ads, it hasn’t built an ecosystem like Lyft’s. But this month Uber said it planned to expand its ad biz — and that it could hit $1B in revenue by 2024. What else we're Snackin' - [Doc]( [Signify Health]( shares popped 11% on reports that [CVS]( is trying to buy the healthcare platform. This month CVS announced plans to expand into primary care (think: doc appointments). - [iLexa]( [Amazon’s]( buying Roomba maker [iRobot]( for $1.7B. But regulators could stall the vacu-sition over privacy concerns given that the Zon (and Alexa) would get personal data on millions of homes. - [Bid]( YouTuber turned pro boxer Jake Paul raised $50M to grow his influence-fueled sports-betting startup, Betr, which specializes in “micro-betting” (think: betting on a touchdown vs. the final score). - [Crunch]( Shares of chipmaker [Nvidia]( fell 8% after its quarterly sales came in way below Wall Street’s expectations. Nvidia has suffered from slower gaming-console sales and supply shortages. - [Clog]( Home-appliance maker [Whirlpool]( paid $3B to buy waste-disposal biz Insinkerator (which has a 70% share of the sink market). The food-churning deal is a part of Whirlpool's strategy to drive high-growth businesses. 🍪 Thanks for Snacking with us! Want to share the Snacks? Invite your friends to sign up [here](. Snack Fact Of the Day Consumer confidence in the housing market has hit its lowest level since 2011 [Read more]( Tuesday - Earnings expected from Marriott, Planet Fitness, Lemonade, Coinbase, Hyatt, and IAC Authors of this Snacks own: shares of Nvidia, CVS, IAC, Uber, Amazon, and Google ID: 2343603 Robinhood Snacks newsletters reflect the opinions of only the authors who are associated persons of Robinhood Financial LLC (Member [SIPC]( and do not reflect the views of Robinhood Markets, Inc. or any of its subsidiaries or affiliates. They are for informational purposes only, and are not a recommendation of an investment strategy or to buy or sell any security, digital asset (cryptocurrency, etc) in any account. 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