If you follow the Fed’s public statements, you may as well believe that the economy is strong and everything is moving smoothly – hence, no cuts coming anytime soon.
That said, this is BS – and looking into separate segments will reveal the following:
- VC funding is still a third of the 2021 peaks. No upcoming growth expected – keep an eye on VCs trying to raise a new found as renewals are expected later this year for many who raised in the past 5-6 years.
- Amazon, Walmart, Ikea and many others drop prices. Why? Inflation is decreasing the spend, and prices were bumped up in the past 2 years due to petrol costs raising and other factors in the process.
- The same trend reported by quarterly reports – like Starbucks and DoorDash (and many others) lowering forecasts based on underperforming Q1.
- VC funding withdrawal from SaaS. Digital businesses taking a hit as free money is over and profitability is non-existent. The move back to profitability in the past 18 months isn’t over year – most have adapted to an extent, and now run different playbooks, while some stubborn players are still in-market.
- Salesforce reported first revenue miss since 2006. 18 years of smooth sailing and even the giants are falling.
- Google’s AI Overviews were pushed back so aggressively, SEOs just reported that 84% of tracked queries rendered overviews, which is down to just 15% this week. Crazy revert, right?
- LinkedIn reach is down for various reasons – chasing virality is one of them, and displaying ad units more frequently seems to be an additional one. Big giants being desperate to generate revenue and not lose on existing subscriptions, going through unprecedented efforts while conducting layoffs again.
- LVMH reported a 2% drop year over year in Q1 revenue. Luxury is in trouble too.
The biggest mistake an adult person today would make is living as its 2022.
We see that with businesses trying to sell with outdated 2022 playbooks and wondering why that fails.
And applicants unemployed for 6 months, failing to land a job since, yet still expecting to join cushy jobs with large teams and just pointing left and right without getting anything done.
Learning to live in 2024 is a valuable skill 🙂
In the meantime, if you want evergreen advice that works today, “MBA Disrupted” provides the complete blueprint for you.
And if you’re in Sofia tomorrow, I’ll be demonstrating a real-time AI virtual avatar trained on your content for Digital4Sofia.
Yours,
Mario
My Take
3 Trends Shaping a Shifting Retail Landscape – Despite pandemic savings shrinking, student loan payments kicking back in, inflation remaining a pesky nuisance, and the labor market losing steam, these obstacles haven’t deterred consumer spending. While shoppers are willing to shell out for experiences, recent trends indicate they’re opting for affordability in their purchases of items from gifts to household goods.
Ryan Reynolds Tweet Coverage! – Along with getting 20M+ impressions, my deep dive into Reynolds’ $14 Billion empire was covered by both Fandom Wire and Animated Times.
Stripe Alternatives – Have a read through Nisha’s latest blog post comparing Stripe alternatives, where she has also mentioned my take on selling globally via Stripe (which I do).
Newsletter Recommendations
Stacked Marketer – One of my go-to newsletters and a business that we’ve worked with a while ago on the DevriX front. It is loved by marketers who get hands-on with campaigns, who need to stay up-to-date with frequently changing platforms., who need to get an edge, and who need to achieve outsized results with limited resources, aka performance-focused marketers.
Boldpush – А special newsletter for those interested in marketing intelligence and strategy to the most ambitious brands. Props to Julius Solaris for creating one of my top newsletter reads for GTM strategies and actionable content.
Business Strategy
Intel announces new AI chips – Intel on Tuesday announced new Xeon 6 processors during the Computex tech conference in Taiwan. The announcement comes as rivals Nvidia and AMD launched new artificial intelligence chips on Sunday and Monday, respectively, as they jostle for leadership in the booming industry. Intel is trying to catch up to Nvidia and AMD, after having largely been on the sidelines of the AI frenzy which saw tech giants like Meta, Microsoft and Google buying up as many Nvidia chips as possible.
New privacy compliance laws for US – Last week, Google Ads emailed advertisers in the United States who use Google Ads or Google Analytics with upcoming compliance changes. As user privacy concerns are at an all-time high, many individual states enacted their privacy law provisions, which will be implemented later this year.
E Trade considering banning Keith Gill – E*Trade is considering telling meme-stock leader Keith Gill he can no longer use its platform after growing concerned about potential stock manipulation around his recent purchases of GameStop options, according to people familiar with the matter.
President Biden vetoes crypto bill – President Joe Biden has vetoed H.J.Res. 109, a congressional resolution that would have overturned the Securities and Exchange Commission’s current approach to banks and crypto.
Facebook trying to bring back young users – To set Facebook up for success going forward, they’re focused on two big things: building a next generation of social media for young adults and leaning into new product capabilities enabled by AI
Global News
A glitchy Monday sparked wild hopes for a 99% discount on Berkshire Hathaway stock that is unlikely to happen, while one influential trader seems to have rebooted the GameStock meme-trading craze. And while most economists see no near term Fed rate cuts, some see a July surprise as possible.
- S&P 500: $5,291(+0.15%)
Average mortgage rates rose for all types of loans compared to a week ago, according to data compiled by Bankrate. Rates for 30-year fixed, 15-year fixed, 5/1 ARMs and jumbo loans rose.
“Markets are assuming that the Fed will cut the overnight rate only one time during the rest of 2024,” says Dick Lepre of RealFinity. “Rates will be flat for the rest of 2024.”.
- 30-year mortgage rate: 7.18%(+0.07)
- 15-year mortgage rate: 6.69%(+0.08)
The Federal Reserve should wait for significant progress on inflation before cutting interest rates, Minneapolis Federal Reserve President Neel Kashkari told CNBC.
Kashkari added that the central bank could potentially even hike rates if inflation fails to come down further.
Here are some of the most prominent headlines this week:
- Alec Baldwin will face a trial for fatally shooting ‘Rust’ cinematographer after a judge denies the actor’s last attempt to dismiss the case.
- Israel ordered to halt Rafah offensive by U.N.’s top court, though it is unlikely to comply.
- DOJ sues Live Nation, alleging it has hurt consumers and violated antitrust laws by creating an alleged monopoly of the live event ticketing industry.
Investing Updates
- Fleming – raising €700,000 to provide smart financial & banking solutions for healthcare professionals.
- Hunch – raising €1,25M to increase sales through automated marketing & AI. Backed by Catalyst Romania, Euroventures.
- Mindgram – raising €1,75M to support mental health & well-being in the workplace. Backed by Credo, Portfolion & others.
Note: Got a round going that you want to feature – your own business or a portfolio company? Get in touch.
Now let’s have a look at the latest top Flippa offers
Employee Scheduling SaaS – This B2B SaaS solution enables simple employee scheduling, timesheet management, and project tracking.
- Monthly profit: $24,261
- Active subscribers: 500
- Business age: 4 years
Oracle Technology Consulting Service – This business helps businesses implement oracle-based technologies.
- Monthly profit: $51,063
- Client retention rate: 92%
- Business age: 17 years
AI Writing SaaS Platform – This SaaS tool provides an AI content generation service for marketers and bloggers.
- Monthly profit: $20,484
- Profit margin: 51%
- Average order value: $20
Need my Help?
I’m involved with a number of initiatives – here’s what I can do to help you:
Scalable and secure WordPress? DevriX provides WordPress retainers to SMEs, publishers, eCommerce, SaaS, and more. Our plans start from $1,200/mo to $40K/mo for anything from support through engineering, CRO, performance, security, to fractional CXO services and managing the data stacks of large corps.
Want to scale and optimize your business? Growth Shuttle offers personalized advisory plans starting at $600/hr. Tap into my personal pool of business know-how and my data warehouse of industry data.
Want access to my blueprints/books and a weekly Slack planning session? Join my Community and grab my Entrepreneurship book.
Looking to start a US company? Check out doola and their “Business in a Box” model. Suitable for both foreigners and US citizens and both for residents and non-residents.
Have you tried buying and selling digital property? Have a look at Flippa’s marketplace. They offer a vast variety of online businesses for any buyer’s interests. Or if you’re ready for an exit, Flippa provides you with the necessary tools to list your business and close the deal.
Looking for investment opportunities? Check out SeedBlink and use Nimity to manage it.
Eager to incorporate my recommended solutions? Track my angel investments. Sharing, applying for open roles, or writing reviews helps a ton. And anything else I try to publish on my blog and my courses here!
