🤳 The struggle is BeReal

…and a US EV startup hits yet another pothole   Back to reality (Sherwood)   Sponsored by Yesterday’s Market Moves   Dow Jones 38,712 (-0.09%) S&P 500 5,421 (+0.85%) Nasdaq 17,608 (+1.53%) Bitcoin $68,566 (+1.86%) Dow Jones 38,712 (-0.09%) S&P 500 5,421 (+0.85%) Nasdaq 17,608 (+1.53%) Bitcoin $68,566 (+1.86%) Hey Snackers, The battle over the armrest isn’t flyers’ only gripe. A survey found that more Americans [think it’s acceptable]( to watch a movie on a plane without headphones than to let kids play in the aisle. The S&P 500 notched a [record high]( after May inflation came in cooler than expected. Still, the Fed [kept interest rates]( steady and projected just one rate cut this year. 💌 We’re moving! Please add hello@snacks.robinhood.com to your email contacts to ensure you never miss a Snacks newsletter (if you want to see how to add a contact, scroll to the end of this email). NO-FILTER “Unfiltered” social app BeReal is sold after pandemic growth didn’t turn into real engagement Time to BeReal… During the pandemic, anti-Instagram social app BeReal [gained]( massive traction with college students for showcasing “real” moments (#NoFilter). Every day, BeReal users were prompted to take a spontaneous selfie and front-facing pic at a random time (impossible to Facetune). But after a [huge boom]( in BeReal downloads (it was No. 1 on the Apple App Store for much of summer 2022), growth has dropped off. Now: - BeBought: French mobile-apps publisher Voodoo is buying BeReal for about $540K, and BeReal’s CEO and cofounder will leave the company. - Real struggle: After its fleeting success, BeReal was struggling to grow its users and running out of cash. It was reportedly searching for a buyer. - Enter the buyer: Voodoo said it plans to implement a “sustainable business model,” including bringing ads to BeReal for the first time. Not a highlight reel… Unlike TikTok, Instagram, and other endlessly scrollable social platforms, BeReal doesn’t allow “likes,” photos disappear after a day, and users must post to see their friends’ pictures. BeReal feeds aren’t filled with content from influencers, advertisers, and celebs, which was part of its initial appeal. But that [appears]( to have faded: BeReal’s monthly users dropped from 15M in October 2022 to 6M in March 2023, according to Platformer (Voodoo says BeReal has 40M+ active users). - Despite BeReal’s decline, its early success suggests that younger gens may be starting to resent traditional social apps. Social-media use has been linked to anxiety and depression in teens. THE TAKEAWAY Social media feeds on escapism… There’s a reason apps like TikTok and Insta are so addicting: algorithms. People love to hate them, but no one can deny they work. In a 2022 Pew survey, roughly one in five US teens said they used TikTok and YouTube “almost constantly.” BeReal was most similar to Snap (disappearing pics to friends), but even Snap has added algorithm-driven feeds like Discover and Spotlight (its TikTok copycat). BeReal didn’t have an engagement algo, and it turns out that your friends’ selfies aren’t that addicting. [Read this online]( Sponsored by Nasdaq Measure the Market the Easy Way Index effect: In the financial world, the term “index” often pops up, leaving many people curious about its meaning and significance. So what actually is an “index”? Read this next… [Nasdaq’s Index Guide]( dives into the concept of indexes, demystifies their purpose, and breaks down why they’re an essential tool for interpreting market trends and movement. Whether you’re new to investing or looking to expand your financial knowledge, understanding indexes is an essential part of managing financial assets. Dig Deeper and Trade Smarter. [Explore Nasdaq’s Education Hub here](. DRAINED Fisker’s latest setback is an 18K-vehicle recall as EV startups get pummeled Outlook not so good… Fisker, the US EV startup flirting with bankruptcy, has hit another pothole: 11K Ocean SUVs (Fisker’s only model in production) have a software malfunction that could lead to a loss of motor power. Now it’s [recalling]( 18K SUVs for over-the-air updates. The once buzzy automaker was valued at $8B just a few years ago but has since plummeted to a market cap of about $25M — less than the price of its founder’s Hollywood mansion. In March, Fisker said it could go under soon, and a month later it was delisted from the NYSE. Some of the problems that have analysts on a “death watch”: - A rough start: US deliveries started about a year ago, but Fisker was accused of fixing customer cars with parts stripped from executives’ personal vehicles. Fisker denied that. The company’s delivered just ~7K SUVs to date. - Lotta probes: US regulators have opened four investigations into the Ocean SUV this year. One is looking into reports that its doors sometimes [don’t open](. Another centers on complaints of its emergency braking system activating without warning. EVs ain’t EZ… When Fisker went public in 2020, investors were looking to get in on the ground floor of the next Tesla. But the EVironment has shifted: at least 30 EV companies have shut down or faced bankruptcy in the past decade, including Lordstown Motors, Arrival, and Protera. In February, Apple junked its EV ambitions, and Rivian and Lucid offered disappointing production outlooks. It’s not just startups: Tesla’s sales have declined 13% YoY, and its unsold inventory is [piling up](. THE TAKEAWAY It’s hard to find a spot in a full parking lot… A hybrid boom, soaring interest rates, and high EV costs have the industry struggling with slower than expected adoption. Bigger automakers like GM and Ford have been scaling back EVestments, but they can afford to weather a downturn. Small upstarts like Fisker are more vulnerable to industry shifts, especially if they don’t have the name recognition of a Tesla. [Read this online]( What else we're Snackin' - [Check:]( Elon Musk should find out whether his record $56B Tesla pay package was approved today after aggressive lobbying. Shareholders OK’d the pay in 2018, but had to vote again after Delaware courts rejected it. - [Returns]( Over 15K Amazon Flex drivers — folks who use their own cars for deliveries — have filed legal claims for unpaid wages and overtime. As the gig economy grows, workers are demanding protections. - [Frothy]( Starbucks launched a Pairings Menu with deals like a coffee and croissant for $5. McDonald’s, Burger King, and Wendy’s have also rolled out discounts as customers cut back on fast food. - [E$tock]( Walmart said it would install electronic shelf labels in 2.3K stores by 2026. Since the mega retailer stocks 120K+ items a week, e-labels could help the biz better track inventory and update prices. - [Plugged]( GM said it would spend $850M to breathe life back into its struggling Cruise robotaxi biz. Last year Cruise recalled its fleet of driverless cars after one struck a pedestrian. Snack Fact Of the Day US households spend over half of their food budgets on dining out [Read more]( Thursday - G7 Summit begins - US producer price index - Earnings expected from Signet Jewelers and Adobe Authors of this Snacks own shares of: Apple, Amazon, GM, Snap, Starbucks, Tesla, and Walmart Advertiser's disclosures: Nasdaq® is a registered trademark of Nasdaq, Inc. The information contained above is provided for informational and educational purposes only, and nothing contained herein should be construed as investment advice, either on behalf of a particular security, digital asset or an overall investment strategy. 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