🛻 GM’s Fain & gain

…and Gwyneth Paltrow’s Goop goes to Target   No Fain, no gain? (Matthew Hatcher/Getty Images)   [Sponsored by]( Yesterday’s Market Moves   Dow Jones 33,141 (+0.62%) S&P 500 4,248 (+0.73%) Nasdaq 13,140 (+0.93%) Bitcoin $34,124 (+3.54%) Dow Jones 33,141 (+0.62%) S&P 500 4,248 (+0.73%) Nasdaq 13,140 (+0.93%) Bitcoin $34,124 (+3.54%) Hey Snackers, It’s a great time to be a [DINK]( (double income, no kids). In the US, couples without children have the highest median net worth of all family types. DINKWADs (DINKs with a dog) are doing pretty well, too, and their pups are doing amazing. Stocks rose as the S&P 500 snapped its five-day slide. Meta shares inched down after 41 states sued it, saying that Instagram and Facebook harm children. After the bell, Microsoft jumped following an earnings beat, while Google fell after a cloud-revenue miss. Chevy GM’s quarterly profit falls as the UAW strike expands to one of its biggest factories Good earnings, bad news… [General Motors]( reported a stronger-than-expected quarter yesterday with sales up 5% from a year ago. But it wasn’t all on cruise control: profit dropped 7% to $3.1B as the United Auto Workers strike dragged on. Keep in mind: the strike started on September 15, and GM’s report was for the quarter that ended on September 30, so the strike’s effects could be felt even more this quarter. - GM pulled its annual guidance, saying it’s now losing a whopping $200M/week in profit because of the UAW’s targeted work stoppages. - GM also ditched its goal of building 400K EVs by next summer, as automakers start to second-guess the electric market. Feelin’ the Fain… Hours after GM reported earnings, UAW President Shawn Fain [ordered]( a walkout at GM’s Arlington, Texas, factory — one of the company’s largest and most profitable assembly plants. 5K workers walked out of the Arlington hub, which makes highly lucrative SUVs like Escalades and Chevy Suburbans. Fain cited GM’s strong earnings when announcing the escalation. GM called the Arlington strike “unnecessary and irresponsible,” saying it had recently sweetened its proposal to the union. - The offer, which GM called a “record” contract, includes a 23% wage boost over 4 years (Ford and Stellantis made similar proposals). Fain said it’s not enough. THE TAKEAWAY More pain, more gain… The more the UAW expands its strikes, the more the union hopes to gain (like a 40% pay bump). The strike has already cost the US economy $9B+. Fain turned down record contracts, saying “there is more to be won.” Some academics say Fain’s gone too far. Fain himself has called his demands “audacious,” but he’s doubling down: on Monday, the UAW expanded its strike to a Stellantis plant that makes Ram pickups. Sponsored by Masterworks This market with 63% price growth isn't just for billionaires anymore… Over the last 20 years, record prices achieved for Banksy’s art have grown at an astounding 63% compound annual rate. Even more impressive? It's not just the ultra-wealthy benefiting from this phenomenal growth. Thanks to Masterworks. [Masterworks]( enables its 820,000+ users to access investments in multi-million dollar artworks by artists like Banksy, Basquiat, and Picasso for just a fraction of the cost of an entire piece. When Masterworks sells a painting, like the 16 it’s already sold, investors can get a return on their investment. With 3 recent sales, Masterworks investors realized net annualized returns of 17.8%, 21.5% and 27.3%. Every offering is limited, and shares can sell out in just minutes, but Snacks readers can [skip the waitlist with this exclusive link]( Targoop Goop hits shelves at Target and Amazon for shoppers looking for affordable luxury The queen of luxury… is selling her wares in the town square. Gwyneth Paltrow’s (in)famously pricey Goop brand now has a more [affordable product]( line at [Target]( and [Amazon](. Good Clean Goop has 14 beauty, skincare, and wellness products that range from $20 to $40. Compare that to Goop’s main beauty line, which features $150 peptide serum and $55 Himalayan salt shampoo. FYI: the company says Good Clean Goop won’t be sold on the OG site. - Supergoop: Goop’s ecomm site sells everything from gemstone heat therapy mats to caviar, and the company’s side hustles include a Netflix show and a ghost kitchen. - Jaded: While Goop’s valued at $250M, it isn’t profitable, media platform Puck said. Aspirational spending on a budget… Goop said 64% of last year’s site sales came from its beauty line, and that its “more accessibly priced” products like $20 lip balms and $35 cleansers are top sellers. Budget skincare brands like The Ordinary and The Inkey List have gained more cultural cachet than drugstore staples. Goop wants to give thrifty shoppers an entry point to its brand at Target and Amazon, while the retailers want to offer premium products at budget prices. Target has done clothing collabs with designers like Missoni and opened hundreds of Ulta Beauty stores-in-stores. THE TAKEAWAY Attainable luxury is a sweet spot… Customers have been trading down on brand names, from luxury bags to cereals, but they’re also trading up — when it’s within their budget. Goop’s made a name for itself with expensive quirky products. But if Goop wants to go mainstream, it’ll have to balance attainability with maintaining its aspirational status. Analysts say keeping the main line distinct from Good Clean Goop will be key to that. What else we're Snackin' - [Sunny]( Microsoft soared past Wall Street’s earnings estimates with record quarterly sales and 27% profit growth. The tech titan benefited as the AI craze drove demand for its Azure cloud biz. - [AdVantage]( Google’s Q3 revenue popped 11%, with stronger-than-expected YouTube ad sales leading the charge. Still, the stock slid 5% after its cloud biz fell short of expectations. - [Fizzy]( Coke’s revenue rose as shoppers kept popping cans (despite prices up 9% YoY). Coke said it’s lost some shoppers to cheaper store brands, and previously said it wouldn’t raise prices again this year. - [Stretch]( Kim K’s Skims is stretching into the men’s department with an underwear collection. Comfy menswear is in demand: Lululemon has seen big sales gains from its stretchy men’s khakis. - [Bop]( Spotify reported a surprise quarterly profit (its first in a year) as price hikes and cost cuts bore fruit. Premium subs rose to 226M despite a $1-to-$2/month price hike. Spotify shares jumped 10%. 🍪 Thanks for Snacking with us! Want to share the Snacks? Invite your friends to sign up [here](. Snack Fact Of the Day Buying a house in the US is now 52% pricier than renting [Read more]( Wednesday - New-home sales - Earnings expected from Boeing, Deutsche Bank, Hilton, IBM, IMAX, Mattel, Meta, Norfolk Southern, Spirit Airlines, T-Mobile, Whirlpool, and Wyndham Hotels Authors of this Snacks own shares of: Alphabet, Amazon, GM, Mattel, Microsoft, and Ulta *Advertiser's disclosure: The content is not intended to provide legal, tax, or investment advice. Past performance is not indicative of future performance. Investing involves risk. Artworks by Banksy have a record price compound annual growth rate of 63.8% from November 18, 2003 to June 30, 2023. This calculation is based on a record price of $1,354 on November 18, 2003, the earliest date that a painting by the artist was sold at public auction according to publicly available data and $21,893,360, the most recent record price as of June 30, 2023. Art sales price data and metrics are used for comparative modeling purposes only. Each painting is unique and historical price trends of a group of selected artwork is not a direct proxy for historical price performance of any specific painting or any investment in securities referenced. The data shown represents whole art and is not comparative of an investment into our offerings, which includes fees and expenses. “Net Annualized Return” refers to the annualized internal rate of return, or IRR, net of all fees and costs, to holders of Class A shares from the primary offering, calculated from the final closing date of such offering to the date the sale is consummated. A more detailed breakdown of the Net Annualized Return calculation for each issuer can be found in the respective Form 1-U for each exit. Masterworks has had 16 total exits and the three numbers above represent the ones closest to the median of all 16 exits. 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... 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