Unbanked

Hello! There are lots of spooky headlines at this time of year, but not many scare investors like “auditor resigns”... which is why shares in [Super Micro]( — previously one of the hottest stocks this year — are down 30%+ this morning. Today we’re exploring: - Still searching: How Google makes its money. - Unbanked: Nearly 1-in-20 Americans don’t have a bank account. - Snapped: Crocs made a big step when it acquired HeyDude — it’s not going great. Have feedback for us? Just hit reply - we'd love to hear from you! TOGETHER WITH [Sponsor Logo](   Yesterday, a trio of technology companies — all of which actually derive most of their revenue from advertising — reported earnings. All had good news for their investors. Snap reported that [sales had jumped]( 15%, losses had narrowed, and numbers of daily active users had climbed to 443 million, sending the company’s shares up ~10% in premarket trading. Reddit did one better, [crushing expectations]( and giving out-of-hours traders enough confidence to bid the stock up more than 20% at one point yesterday evening, thanks in part to its [new AI-content licensing]( deals. But most consequential of the three was Alphabet, which is worth roughly 60x Reddit and Snap combined. The Google owner [revealed]( that its Google Cloud business — think servers, computing, analytics, and other enterprise IT solutions — continues to reap the rewards from the AI gold rush, with revenues rising 35% year on year. But, despite all the AI hype, good old Google Search continues to be the profit center of the company. The continued dominance of Google is enabling the company to take some very expensive swings on nascent technologies. Many of these are in their infancy, but some are starting to make a splash. Its self-driving car division, Waymo, is reportedly doing 150,000 paid trips per week, and its Gemini AI model has now been squeezed into pretty much all of its products. The dependability of the Google Search cash firehose also means that some of the company’s other highly used products, like Gmail, Google Maps (which just hit 2 billion users), and Google Chrome, don’t need to be huge moneymakers in their own right (yet). Of course, that dominance is catching the eye of the regulators: just a few weeks ago, the [Justice Department said]( it was considering taking action to break Google’s monopoly on Search. Microsoft and Meta report today. [Read this on the web instead](   Treasury Secretary Janet Yellen has [released plans]( to get more Americans to open bank accounts, as part of the department's first-ever strategy to increase access to financial systems nationally. The 35-page “national roadmap,” unveiled Tuesday, is designed to “expand access to foundational financial tools like credit and investments that are key to building wealth.” Per [Yahoo Finance](, the first objective is reducing the number of Americans that are “unbanked” — members of households where no one has a checking or savings account at a bank or credit union. According to the most [recent survey]( of unbanked and underbanked households from the Federal Deposit Insurance Corporation, an estimated 4.5% of US households did not have a bank account in 2021. That’s the lowest rate recorded since the survey began in 2009, but is still equivalent to almost 6 million households lacking access to arguably the most fundamental of financial products. The Treasury is proposing that the federal government work with local administrations to encourage people to open accounts when they get new jobs, government payments, or tax refunds, as well as requesting that banks make more affordable accounts widely available. [Read this on the web instead](   [Sponsored by iShares]( This is not a recommendation of individual securities. A purchase of TOPT ETF does not represent a purchase of the individual securities displayed. The specific securities and their relative weighting in the Fund can change at any time. For Google, now known as Alphabet, there are two types of stock, Alphabet Class A (GOOGL) and Alphabet Class C (GOOG). The A share class includes voting rights and the C share class does not. 20 BIG STOCKS, ONE SMALL TRADE With the [iShares Top 20 U.S. Stocks ETF (TOPT)](, you can get access to big stocks like Apple, Microsoft, and NVIDIA [in just one tap](.   Why invest in TOPT?  - Ease: TOPT is a one-ticker solution that gives investors exposure to the 20 largest U.S. companies.  - Diversified Sector Exposure1: TOPT holds some of the largest companies in the technology, consumer goods, communications, healthcare, and financial services sectors.  - Growth: Over the last 12 months, these companies have returned 45% and seen revenue growth of ~ 4%.2 [Learn more about TOPT.]( [Learn more about TOPT.](   It’s been a good few years to be in the ugly-comfy shoe business. That’s particularly true if your company’s name is Crocs, Inc. — which saw sales boom over the last decade, giving it enough financial firepower to spend $2.5 billion acquiring one of its up and coming rivals, HeyDude, the start of a potential multi-brand shoe empire. But, while Crocs keeps finding new customers to sell its foam clogs to, HeyDude continues to drag. Like almost every quarter since its acquisition in 2022, Crocs Inc.’s earnings call, released Tuesday, revealed that HeyDude’s revenues had slipped by more than 17% to $204 million, whilst the Crocs original brand added another 7% in sales. Beyond the $1.9 million [FTC settlement]( that had thousands of customers demanding refunds for the already struggling brand, HeyDude has acquired a particular online [reputation]( – that its shoes are not only a bit ugly (like Crocs), but also they're not even that comfortable (unlike Crocs). And splurging vast sums of marketing budget on signing stars like Sydney Sweeney, the new ambassador for the brand who can be seen jumping into lakes in a recent [promotional video](, doesn't seem to be helping yet. Noting the weakness, Crocs, Inc. CEO Andrew Rees added in a press release that the company is now “resetting” its full-year outlook for the loafer brand – a clear shift from his previously “[extremely bullish](” expectations last quarter. Meanwhile, Crocs sales continue to push higher, thanks to the brand’s loyal [jibbitz-loving customer base]( and its [experimental collaborations](, ranging from luxury designers like Balenciaga to Pringles. Crocs shares fell ~19% on Tuesday after the results. [Read this on the web instead](   More Data - The grate cheese heist: More than 24 tons of artisanal cheese, worth ~$390,000, was stolen from London-based retailer [Neal’s Yard Dairy](. - US job openings in September fell to the [lowest level]( in 3.5 years. - Russia has [fined]( Google $2.5 decillion for allegedly blocking pro-Kremlin propaganda on YouTube (for reference, that’s a five and then 32 zeroes). - The Washington Post’s [decision]( to ditch election endorsements was met with over 200,000 subscription cancellations — about 8% of the paper’s paid readership. - Das Auto: [Volkswagen]( is shutting down at least three factories in Germany, laying off thousands of workers, and cutting pay by 10%. Interested in tapping into the potential growth of the largest 20 stocks in the US? [Check out iShares Top 20 US Stocks ETF (TOPT)](. Ad   Hi-Viz - Very cool [interactive experience]( from The Pudding, exploring how NBA jerseys have changed since Nike stepped in as the league’s official partner. - Yelp’s [Top 100 Vegan Spots in the US]( map introduces the best plant-based dining experiences in the country. Off the charts: Which industries do Americans have the highest, and lowest, opinions of according to a recent Gallup survey? [Answer below]. Hint: They sound a bit similar. [Answer here.](   Thanks for stopping by! Have some [feedback](mailto:daily@chartr.co?subject=Feedback&body=Hi, I like the newsletters, but I had a thought for you...) or want to [sponsor this newsletter](mailto:advertising@sherwoodmedia.com?subject=I’m interested in advertising with Sherwood Media)?   Not a subscriber? Sign up for free below. [Subscribe](   Advertiser’s disclosures: 1 The ETF is concentrated in 20 individual stocks that can cover up to 8 sectors. 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