🏈 Barstool swapped for ESPN

…and very different earnings from Rivian and Lucid   One bet — everybody knows the rules (Ben Hasty/Getty Images)   Yesterday’s Market Moves   Dow Jones 35,123 (-0.54%) S&P 500 4,468 (-0.70%) Nasdaq 13,722 (-1.17%) Bitcoin $29,501 (-0.87%) Dow Jones 35,123 (-0.54%) S&P 500 4,468 (-0.70%) Nasdaq 13,722 (-1.17%) Bitcoin $29,501 (-0.87%) Hey Snackers, A class-action lawsuit against Texas Pete hot sauce just got spicier: a California judge [denied]( the sauce maker’s motion to dismiss the suit, which accuses it of false advertising since it’s not actually made in the Lone Star State. Guess you really shouldn't mess with Texas. Stocks slid again as investors wait for today’s consumer-inflation report for July. Wall Street’s keeping a close eye on the CPI to see whether consumer prices may’ve dipped enough for the Fed to stop rate hikes (#SoftLandingGoals). Playbook Penn replaces its Barstool sportsbook, hoping ESPN is better positioned for sports betting Making a trade… Casino owner [Penn Entertainment]( [made a deal]( with ESPN to launch an ESPN-branded sportsbook that’ll replace its Barstool one, which struggled to win market share. After buying Barstool in 2020 for $550M, Penn sold it back to its founder, Dave Portnoy, for $1 (well, there’s also a non-compete and other agreements). ESPN Bet is set to launch this fall in the 16 states where Penn has sports-betting licenses. - Hail Mary: As cord-cutting continues, ESPN parent [Disney]( is seeking to revive ESPN’s revenue — and is even considering selling off the network if it can’t. - Over-under: Penn estimated its ESPN deal could make between $500M and $1B a year, though experts say sports betting is a low-margin biz. 2 teams dominate… FanDuel and [DraftKings]( control an estimated 70% of the sports-betting market. The apps leveraged their fantasy-sports popularity and a blitz of marketing and sign-up offers to gain dominance. Lots of others are trying (slash tried) to break into the fast-growing biz — which after only being legal in 7 states in 2018 now rakes in $7.5B in 38 states + DC. Casino owners [MGM]( and [Caesars]( are a distant third and fourth, while [Fox]( folded its sportsbook last month after failing to break through. - Barstool was under close scrutiny from regulators after Portnoy was accused of sexual misconduct last year. Portnoy said Barstool had been denied betting licenses because of him. THE TAKEAWAY Reputation matters in a regulated industry… Portnoy said it’s “back to the pirate ship” for Barstool, suggesting he doesn’t have to be as careful about what he says and does now that he’s out of the highly regulated industry. Meanwhile, Penn’s new deal is with an established Disney subsidiary that cares about maintaining a family-friendly rep. Disney has so far been extra cautious in its strategy with entering the world of sports betting. Luxtility Rivian’s and Lucid’s very different EV earnings show a shift from luxury to utility Battery level… We got some EV earnings this week from luxury-sedan maker [Lucid]( and [Rivian]( — the latter being the first company to deliver e-pickups. While both startups are in the no-gas game, their quarterly results were… different. - Lucid missed sales expectations as deliveries disappointed. It delivered only 1,404 of its Air electric luxury sedans — exactly two fewer than in the previous quarter, though up nearly 2X from a year ago. Its net loss widened by about $200M to $764M. - Rivian sped past revenue estimates and lifted its production guidance after delivering 12.6K vehicles — up 59% from the previous quarter and nearly triple its deliveries from a year ago. Its quarterly loss narrowed to (a still massive) $1.2B. Electric off-roading… A key difference between Lucid and Rivian: Lucid is more luxury for luxury’s sake, while Rivian is geared more toward utility (think: adventure-focused trucks and SUVs). Americans love the utility life: trucks and SUVs are the most-sold car models in the US ([Ford]( F-150 pickup has been the best-selling vehicle in America for four decades). And its F-150 Lightning pickup was its only EV that saw sales rise last quarter from a year ago. Meanwhile, 96% of [Tesla]( deliveries last quarter were for its family-friendly Model Y crossover and Model 3 entry-level sedan. THE TAKEAWAY EVs are racing downmarket… Tesla set the standard for e-luxury, but now it’s a leader in EV accessibility, slashing prices several times this year. Ford followed by lowering the price of its electric F-150 by as much as $10K. This week, Lucid dropped the starting price of its high-end Air sedan from $87.4K to $82.4K to keep up with competition. But yesterday Rivian’s CEO said it wouldn’t join the price-cutting race because it's seeing strong demand for its trucks and SUVs. What else we're Snackin' - [Minus]( Disney’s streaming biz posted a $512M quarterly loss while Disney+ lost 11M+ subs. In its quest for streaming profitability, the Mouse House hiked Disney+ prices and plans to bump up Hulu too. - [Robux]( Shares of [Roblox]( hit their lowest level since January after the tween-fave gaming platform posted a bigger-than-expected Q2 loss. While users and revenue spiked, it wasn’t enough to offset higher costs. - [HappyHour]( [Lyft]( said it’s trying to get rid of rush-hour surge pricing to lure more passengers (read: away from [Uber](. While it helped Lyft pick up 9% more active riders last quarter, revenue per rider dipped 5%. - [WFH]( [WeWork]( could be nearing bankruptcy as the work-space provider said it had “substantial doubt” about staying open. Less office-space demand helped sink WeWork’s stock to $0.13 from a high of $13. - [OnBase]( [Coinbase]( launched an [ethereum]( [layer 2]( that already supports 100+ decentralized apps (aka: dapps). The L2, dubbed Base, could diversify the exchange’s revenue away from traditional crypto transaction fees. 🍪 Thanks for Snacking with us! Want to share the Snacks? Invite your friends to sign up [here](. Snack Fact Of the Day Gen Z will be the last generation that has a white majority in the US, a new census data study said [Read more]( Thursday - NFL preseason begins - Jobless claims - July US CPI numbers - Earnings expected from Alibaba, Hut 8 Mining, Krispy Kreme, Ralph Lauren, Siemens, Six Flags, and Yeti Authors of this Snacks own ethereum and shares of: Disney, Uber, and Tesla Sherwood Media, LLC produces fresh and unique perspectives on topical financial news and is a fully owned subsidiary of Robinhood Markets, Inc., and any views expressed here do not necessarily reflect the views of any other Robinhood affiliate... [See more]( [Sherwood Terms and Conditions]( • [Our Editorial Principles]( • [Contact Us](mailto:hellosnacks@sherwoodmedia.com) • [Privacy Policy]( • [Advertise with us](mailto:advertising@sherwoodmedia.com) [Unsubscribe](