Delta Airlines is offering a $30,000 no-strings-attached payment to each of the 76 passengers aboard Delta Flight 4819, which crash landed at Toronto Pearson International Airport on Monday. Now the question emerges: what is the right amount of money to offer to a person who survived your plane crash?
Stocks retreated from all-time highs yesterday as Walmart had its worst day in over a year. Walmart’s underwhelming outlook spilled over to other parts of the market, like banks, as investors fretted about the health of the US economy.
Let’s get down to quiz-ness: test your knowledge of this week’s newsletters with our Snacks Seven quiz. |
- Warren Buffett announced that he has a nearly billion-dollar stake in which booze company?
Check your answer.
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Megaretailers’ best business? Not retail, that’s for sure. |
Megaretailers Alibaba and Walmart reported earnings yesterday, with Alibaba jumping 8% after crushing expectations across the board and Walmart dipping 7% after reporting that it expects slower profit and sales growth. Revenue for Walmart was up 4%, but it’s the forecast that dimmed the prospects for the company, with execs indicating they’re expecting sales to grow just 3% to 4% this year.
Adding to the indignity, after years of outrunning the seemingly inevitable, Walmart has finally fallen behind e-commerce archrival Amazon. Walmart said it brought in $180.6 billion in sales last quarter, while Amazon’s Q4 saw the company bring in $187.8 billion. For the full year, Amazon’s margins last year were 3x that of Walmart’s. And once you get into the weeds, you start to see that these so-called retailers are increasingly making their profits beyond their retail operations.
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- Walmart’s been nursing an ad business that was worth $4.4 billion last year, in no small part because the profit margins on ads are a bonanza compared to the razor-thin margins of its retail operations.
- Alibaba’s core retail business was responsible for less than half its revenue, as the company has been increasingly trading on its incredibly lucrative and fast-growing cloud computing business, not to mention an exploding AI business.
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Amazon’s online store was only responsible for only $247 billion out of its $638 billion total in 2024, with its Amazon Web Services division delivering $107.6 billion — and far juicier margins.
- If anything, Amazon was mostly in the news yesterday for seizing control of James Bond, yet another side hustle.
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It sure seems like being a massive retailer is mostly just a way to spin up a reliable business that can drive some of your more profitable side hustles. It’s going great for the cloud computing juggernauts that incidentally operate an e-commerce giant, even if times are getting tougher for the brick-and-mortar colossus attempting to stoke the flames of a promising ad business. |
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PE Funding
Secured by $100MM+ Dermatology Disrupter — Opportunity Closing Soon |
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