👗 Temu’s Bowl blitz

…and Tesla’s bad year hasn’t improved   “Ooo, ooo, Teh-moo!” on repeat (Stefani Reynolds/Getty Images)   Yesterday’s Market Moves   Dow Jones 38,273 (-1.35%) S&P 500 4,953 (-1.37%) Nasdaq 15,656 (-1.80%) Bitcoin $49,545 (-0.79%) Dow Jones 38,273 (-1.35%) S&P 500 4,953 (-1.37%) Nasdaq 15,656 (-1.80%) Bitcoin $49,545 (-0.79%) Hey Snackers, This Valentine’s Day, many are choosing to love themselves: [self-gifting]( is on the rise as people treat themselves to jewelry, designer goods, and flowers (Miley would be proud). Stocks took a dive yesterday after January’s consumer prices came in hotter than expected. Inflation climbed the most in eight months, fueled largely by rising rent costs. Traders slimmed their bets on any rate cuts in the first half of the year. Blitz Chinese ecomm titan Temu spends millions on Super Bowl ads to buy US popularity Advertise like a billionaire… Chinese online mega-retailer Temu taught Americans that it’s pronounced “Teh-moo” in six Super Bowl ads. Each 30-second spot cost $7M, and Temu sweetened its cartoonish commercials with $10M in giveaways to [boost]( its US popularity. Temu, which launched in late 2022, has grown wildly fast for a corporate toddler as it pulls $$ from its deep-pocketed parent, [PDD Holdings]( (which owns Chinese ecomm behemoth Pinduoduo). - BOGO: Temu splurged an estimated $1.7B on advertising last year, and a billion of those ad bucks were spent outside Asia-Pacific countries. It was the US’s fifth-biggest digital-ad spender in Q4. - Momentum: Temu is the second-most-popular shopping app (behind [Amazon]( and was the App Store’s No. 2 free download after its Super Bowl ad blitz (FYI: it was No. 1 after last year’s Bowl ad). Sellers of cheap stuff face off… Temu’s marketing cash cannon could boost US sales as China struggles with weak consumer spending. To court shoppers worldwide, Temu set up an HQ in Boston and will soon open its ultra-cheap marketplace to US and EU sellers. Less than a year after launching, Temu had more users and transactions than rival e-tailer Shein. The ecomm-petitors have been throwing lawsuits at each other like sixth graders with snowballs (in one, Shein accused Temu of using “mafia-style” tactics). Temu is also facing forced-labor allegations and data-privacy suits. THE TAKEAWAY Forced popularity is pricey… Temu lost an estimated $7/order last year as it balled out on ads and shipped $3 wireless headphones and $6 Stanley cup knockoffs. Taking a loss to gain market share (which Temu denies it’s doing) is a popular tactic in China that analysts say sister co Pinduoduo used to dethrone [Alibaba](. The spending could pay off later: while Temu lost its parent company $3B last year, analysts estimate it’ll turn a $3.5B profit by 2027. Stalled Tesla’s abysmal 2024 start has investors questioning the carmaker’s destination In the crumple zone… [Tesla]( been having a bad one lately. Six weeks into the new year, it’s the worst-performing S&P 500 stock, shedding ~$215B worth of market cap (7X [Boeing]( losses). It’s been two weeks since a Delaware court voided CEO Elon Musk’s $56B pay package — the biggest in corporate history — and the EV maker’s board has kept [silent](. That’s not all that has investors reaching for the e-brake: - Big cuts: Investors haven’t been loving Tesla’s global price cuts, which contributed to car sales growing only 1% last quarter — despite a record 485K quarterly deliveries. - Losing speed: Tesla warned investors that its sales growth would be “notably lower” this year. It blamed cooling demand, growing competition, and high interest rates. - Other obstacles: Tesla workers are bracing for potential layoffs; Super Bowl ads called for a Tesla boycott; and this month the company recalled 2.2M (nearly all) of its US vehicles for a software update after a federal safety audit. Wild rides… might be catching up to Tesla investors. Before Musk’s pay package was voided, he said he wasn’t comfortable growing Tesla’s AI and robotics biz without owning 25% of the company. And if Tesla isn’t a limitless tech company (as Musk suggests it could be), it's an automaker that’s ceded lots of road to rivals: Chinese EV maker [BYD]( recently passed Tesla in global EV sales, and Hyundai is nipping at its tires in the US (outpacing Tesla’s growth last year). Adding to investor concerns: reports that Musk has been using illegal drugs. THE TAKEAWAY First-mover advantage isn’t forever… For a long time, Tesla had a virtually empty road to become the EV leader. But as the industry’s matured, OG automakers and newer rivals have made things feel more bumper to bumper. Once Tesla’s greatest asset, Musk may be turning into more of a liability as competition heats up. With EV demand cooling, Tesla doesn’t need more problems than the industry already has. What else we're Snackin' - [WallMount]( Shares of TV maker [Vizio]( surged 25% after reports that [Walmart]( is in talks to buy the company for $2B+. The move would boost Walmart’s ad-selling biz as it tries to compete with Amazon. - [Dashed]( Thousands of [Uber]( [Lyft]( and [DoorDash]( drivers said they’d strike today (sorry, last-minute Valentine’s Day planners). The gig workers are seeking better pay, citing algo pricing, which they say has cut into wages. - [Bet]( Casino owner [Penn Entertainment]( plans to launch its ESPN Bet sportsbook in New York (the largest US betting market) after acquiring Wynn’s NY license. Penn aims to make up 20% of the US sports-betting market by 2027. - [Timing]( CBS parent [Paramount Global]( is reported to be laying off 800 employees. The news came after record-breaking viewership #s for the Super Bowl, which aired on CBS, Paramount Plus, and Nickelodeon. - [Whopper]( [Restaurant Brands]( said quarterly same-store sales at its Canadian resto chain Tim Hortons were up 8%. Meanwhile, its Burger King turnaround effort is paying off with foot traffic ticking up. 🍪 Thanks for Snacking with us! Want to share the Snacks? Invite your friends to sign up [here](. Snack Fact Of the Day Nearly half of US adults are unmarried [Read more]( Wednesday - Valentine’s Day - Earnings expected from Kraft Heinz, Sony, Sunoco, TripAdvisor, Udemy, and Wyndham Authors of this Snacks own shares of: Amazon, Kraft, Tesla, Uber, and Walmart 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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