PLUS: Smartphone owners are getting younger and younger.
We want to hear from you. Ask us about anything business or tech, and we'll answer your questions on an upcoming episode of The Hustle Daily Show. If you'd rather ask about our favorite bagels, we'd be happy to discuss. Ask here and let it rip.
In today's email:
Big Tech blues: FAANG is struggling.
Chart: More tweens than ever have smartphones.
Digits: Bad gas mileage, Coca-Cola cocaine, and more numbers.
Around the web: How to pitch new emojis, royal diets, interactive music journeys, and more cool internet finds.
🎧 On the go? Listen to today's 10-minute podcast to hear Jacob discuss why Big Tech stocks are going down instead of up, as unbelievable as that may be (re-read that sarcastically). Plus, catch other hilarious shenanigans from around the business and tech world.
The big idea
Is the FAANG era over?
Technically, it already was. Between Facebook's rebrand to Meta and Google's switch to Alphabet, the acronym should actually be MAANA — but that's beside the point.
Per Bloomberg, recent earnings show that the FAANG stocks — Facebook, Apple, Amazon, Netflix, and Google — are more vulnerable than previously expected.
FAANG stocks…
… have dominated their markets over the last decade, making them popular picks for growth investors seeking lofty returns. But all 5 tech giants have been plagued by recent challenges:
Facebooklost ~500k daily users in Q4 2021, and suggested it could have its 1st YoY revenue drop next quarter
Apple recently warned it could lose $8B due to supply chain constraints this quarter
Amazonreported its 1st quarterly loss in 7 years Friday, resulting in the stock tumbling ~14%
Netflix announced it lost subscribers for the 1st time in over a decade, leading its stock to drop 35% the next day, and wiping $50B from its valuation
Googleshowed slower growth than last year and missed revenue projections for Q1, thanks in part to a weak quarter for YouTube
In 2022, all 5 stocks are down, with Apple being the only one outperforming the S&P 500 index.
So how bad is it?
It could be worse. Last August, FAANG stocks made up ~19% of the S&P 500 index's market cap. Today, that number is just below ~15% — a meaningful drop, but still a massive percentage for 5 out of 500 companies.
So while the quintet has seen better days, it would be unwise to count them out for good.
One investor believes the biggest change facing FAANG is perception: Once considered some of the market's hottest growth stocks, FAANG may be viewed as more of a value play going forward.
GLOSSARY
Growth stocks are expected to beat the market over time due to their future potential
Value stocks are established businesses that analysts believe to be undervalued
SNIPPETS
Athleisure addition: Walmart launched Love & Sports, an activewear brand that will be available on the company's website and 1.5k stores.
Next-level concert: Snap partnered with Live Nation to offer AR (augmented reality) experiences at select concerts, starting with Electric Daisy Carnival in Las Vegas.
Privacy problem: Researchers found that Amazon shares data collected by Alexa with ~41 advertising partners to serve personalized ads on Amazon and around the web.
Rocket rivals: Amazon is challenging SpaceX's Starlink for satellite internet supremacy. The company signed a multibillion-dollar contract with 3 entities to launch 3,236 low-orbit satellites as part of "Project Kuiper."
Side-hustle opportunity: Dropshipping is a simple ecommerce model that can be run from a beachside cafe or kitchen table — but many have tried and failed in this competitive space. See how you can start your own venture on the Hustle blog.
Victoria's Secret and Pink launched an Amazon storefront to sell beauty and fragrance products, ~120 of which are eligible for free Prime delivery. #ecommerce-retail
#ecommerce-retail
Booze for cars? Whiskey produces a lot of waste, some used for feed, some dumped in landfills or water. But a new project could see whiskey turned into biofuels for cars. #clean-energy
#clean-energy
Who ya gonna call? Sony Pictures is developing a new "Ghostbusters VR" game for the Meta Quest 2. Fans can play solo or in co-op. #emerging-tech
#emerging-tech
Epic is suing Google on behalf of its new acquisition, Bandcamp. Bandcamp can't afford Google's Play Store fees, which could result in its app's removal. Epic wants to block that. #big-tech
Back in my day, having your own mobile phone as a kid meant it was a Nokia 3585i that let you play "Snake." Today's kids? They're getting those newfangled smartphones younger and younger.
The number of tweens — defined as children ages 8-12 — with their own smartphones increased from 24% in 2015 to 43% in 2021, per a survey from Common Sense Media.
How come?
A Pew Research survey asked parents of kids 11 and younger why they gave them smartphones.
Most listed making it easy for their children to contact them (78%) and vice versa (73%) as a major reason. Less significant reasons included entertainment, to do their homework, and because their friends and classmates have them.
At the same time, districts that once banned phones have reversed course as parents' worries over school shootings and violence have, unfortunately, increased.
What exactly do kids do on their phones anyhow?
Tweens and teens were asked to identify the types of media activities they participated in daily across screens. For tweens, top activities include:
Online videos: 64%
Watching TV: 65%
Games: 43%
Reading: 34%
Interestingly, when asked which activities they enjoy "a lot," tweens preferred online videos to regular ol' TV — stuff like game streams, unboxing challenges, and music videos.
BTW: The history of "Snake" on Nokia phones is way more interesting than you'd think.
Free Resource
12 rockin' resume templates for your next hunt
No need to make that from scratch. We've lined up some winners.
Maybe you're about the DIY life. You know we respect that. But these templates are already so pristine and aesthetically pleasing that all that's left is to fill in the blanks.
The new EV mail truck looks like a platypus, no? (Source: USPS)
Digits: Terrible gas mileage, Coca-Cola cocaine, and more wild numbers
1) Sixteen states filed lawsuits against the USPS over its decision to buy tens of thousands of gas-powered vehicles instead of EVs. The trucks are slated to get a measly 8.6 miles per gallon, though the USPS said they can get 14.7 mpg when the air conditioning is off. How nice.
2) Last week, Elon Musk jokingly — or not, who even knows anymore? — tweeted that his next move is buying Coca-Cola "to put the cocaine back in." It's now the 2nd most-liked tweet of all time, with 4.7m+ likes.
3) In April, Times Square saw 290.4k average daily visitors, well below the 375.2k it saw in April 2019. Interestingly, despite Manhattan offices only returning to 37% capacity, Broadway attendance and hotel occupancy are at 90% and 80% pre-covid levels.
4) Last week, Apple posted Q2 revenue of $97.3B, up 9% YoY. Last year, we made a visual showing how Apple makes $11.6k every second, $696k every minute, etc. At this quarter's rate, our numbers are now obsolete.
5) Fidelity said it plans to give 23k employers the chance to add bitcoin to their company 401(k)s later this year. The US Labor Dept. is concerned over the move, but hey, Fidelity has a lounge in the metaverse, so they know what they're doing.
AROUND THE WEB
📕 On this day: In 1933, Scotland's Inverness Courier printed a story about a couple who saw an "enormous animal" in Loch Ness. Hence, the legend of the famous monster was born.
😀 How to: A thorough guide to submitting your ideas for new emojis.
🍗 That's interesting: Kings in the Middle Ages didn't actually nom on as many turkey legs as TV would have you believe. They probably ate a lot of leeks, though.
🎵 That's cool: Take an interactive journey through a given year's Billboard hits.
🐿️ Aww: And now, a squirrel that's really impressed by almonds.
Meme of the day
Hear me out — babies with cellphones could work… (Source: Know Your Meme)
SHARE THE HUSTLE
Hey. Stop keeping us a secret.
Refer just 3 people and we'll start to send some goodies as a thank you.
