👻 Snap’s comeback

…and rent prices face antitrust scrutiny   Snap’s back (Georgie Hunter/Getty Images)   [Sponsored by]( Yesterday’s Market Moves   Dow Jones 33,036 (-0.32%) S&P 500 4,187 (-1.43%) Nasdaq 12,821 (-2.43%) Bitcoin $34,576 (+1.93%) Dow Jones 33,036 (-0.32%) S&P 500 4,187 (-1.43%) Nasdaq 12,821 (-2.43%) Bitcoin $34,576 (+1.93%) Hey Snackers, Sometimes you’d rather cast off than cast spells: hundreds of witch-costumed revelers recently [gathered]( at lakes and harbors across the US to form pop-up paddleboarding covens. Floating is in. Broomstick riding is soo 17th century. Stocks slipped yesterday, with the tech-laden Nasdaq 100 seeing its largest drop of the year. Meanwhile, the price of [bitcoin]( — which has more than doubled this year — continued its week of growth as investors crossed their fingers that regulators will approve a spot bitcoin ETF. Boo Snap returns to revenue growth as it reels in more ad $$ with new features What a snaprise… Just in time for Halloween, the little white ghost came back from the dead. [Snap]( revenue [grew]( 5% in Q3 after two quarters of declines. The disappearing-photo company has never been profitable, but its net loss narrowed to a better-than-expected $368M. - Snapstreak: Snapchat gained 9M daily users for a total of 406M. Snappers skew younger, with 75% of 13- to 34-year-olds in 25+ countries using the app. - For comparison: [Meta]( Facebook has 2B daily users (about a quarter of the world’s population) and Insta has 500M, while X claims a comparably scrawny 260M. Getting un-ghosted… Digital ad spend is reviving from last year’s ad-pocalypse. Meta and [Alphabet]( beat Snap to an ad recovery earlier this year, and the rebound continued in their results this week, thanks to improved ad spend on go-tos like Insta and YouTube. But Snap has been sweetening its ad-fferings to stand out. It started sprinkling ads in Stories and Spotlight (its TikTok equivalent) last year, and is making moves in AI: - My AI: Last month, Snap said it’s teaming up with [Microsoft]( to integrate sponsored links into its AI chatbot, creatively dubbed “My AI.” Snap said 200M+ people have sent 20B messages to the bot since its April roll-out. - Beyond ads: Snap said that Snapchat+, a $4/month premium sub launched last summer, now has 5M+ paying users. That’s $240M/year. THE TAKEAWAY Small fish have to stand out… Even though the ad slump has reversed, spend is still limited. Digital marketers have prioritized spending their limited budgets on the big fish: Meta and Alphabet. In response, Snap’s been launching new features like My AI to attract ad $$. If that’s not enough — which, btw, Snap warned ad revenue could wobble this quarter — it could keep itself afloat with subscription dollars. Sponsored by Nasdaq Beyond the surface with market depth Following orders… Professional traders need to know more than just current price info: they want depth of book data, which allows them to see open orders at all available prices. Analyzing depth of book can offer clues into existing supply and demand, areas of support and resistance, and help you identify optimal prices for your orders. [Nasdaq TotalView]( powers the need-to-know data the pros rely on, but it’s also available to many retail investors. The takeaway: If you’re looking for an edge, analyzing market depth can help you understand what lies beneath a stock’s price. You can get access to TotalView via Robinhood Financial Gold and other retail broker offerings. [Learn more about Nasdaq TotalView.]( 1BR With rent affordability at its lowest level in decades, rent-pricing algos are on trial Takin’ it leasey… High rents aren’t just caused by property owners [thinking of a bigger number]( for millions of renters, prices are set by algorithms that suggest rates for renewals and vacancies. Now two companies behind such pricing systems — RealPage and Yardi — are facing [lawsuits]( alleging their algos reduce competition and enable collusion, driving rents higher for millions of Americans. - Discount dearth: Property owners often try to keep vacancy rates low to maximize profits, slashing rents when demand drops. But rental algorithms, one suit says, often determine that raising rents will drive profits, even if vacancies increase. - Open (court)house: The suit against Yardi alleges that the company’s software (formerly called “RENTmaximizer''...) is used to inflate rents. This spring, four US senators called on the Justice Department to investigate RealPage’s software, YieldStar. The DOJ is reportedly weighing whether to take antitrust action on rental algos. - Spacious: A ProPublica report found that in one Seattle neighborhood, just 10 property managers controlled 70% of apartments, and all used RealPage’s pricing software. Rethinking roomies… Mortgaging a house in America is now pricier than renting, but rents ain't cheap either: they’re up 7% from a year ago. Nationally, rent affordability is at its lowest level in decades. This month, median one-bedroom rents hit $4.3K in NYC, $2.4K in LA, and $2.6K in Miami. Meanwhile, 70% of renters have a household income below the median level, and most Gen Z renters spend at least 30% of their income on rent. THE TAKEAWAY Algos may have to take the stand… From plane tickets to Uber rides from the airport, more stuff is being priced by algorithms. Studies show that rather than trying to price competitively, algorithms avoid lowering prices versus rivals. Regulators are increasingly scrutinizing these systems, from the FTC’s case against [Amazon]( ecomm pricing to the DOJ’s case against poultry data company Agri Stats. What else we're Snackin' - [Zuck]( Meta topped quarterly estimates, with revenue up 23% and profits up more than 2X from a year ago. While Meta’s been slashing costs (#Year-of-Efficiency), it expects higher losses from its metaverse biz. - [Stand]( Sam Bankman-Fried’s lawyer said the former FTX CEO would testify in his fraud trial (possibly as soon as today). One former prosecutor called the move a “Hail Mary” as the trial appears to enter the homestretch. - [Sip]( [AB InBev]( signed a six-year marketing partnership with the UFC (Bud Light = official beer sponsor). The nine-figure deal comes as AB InBev tries to reverse its Bud sales slump in the US after a boycott. - [Robo-no]( Cruise’s driverless car permit was suspended by California’s DMV, which accused it of misrepresenting safety info. Cruise’s San Francisco robotaxis have been scrutinized for stall-outs and accidents. - [Grounded]( [Boeing]( posted a bigger-than-expected $1.6B quarterly loss after a manufacturing issue affected a # of its best-selling 737 Max planes. The company says it’ll deliver 57 fewer jets than planned. 🍪 Thanks for Snacking with us! Want to share the Snacks? Invite your friends to sign up [here](. Snack Fact Of the Day There are more than 7.5K apple varieties [Read more]( Thursday - US GDP and initial jobless claims - Earnings expected from Amazon, Bristol-Myers Squibb, Capital One, Chipotle, Comcast, Ford, Hasbro, Hershey, Hertz, Intel, Keurig Dr Pepper, Mastercard, Merck, Royal Caribbean, Southwest Airlines, UPS, US Steel, and Valero Authors of this Snacks own bitcoin and shares of: Alphabet, Amazon, Comcast, Microsoft, Snap, and Uber 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](