💰 FTX’s good-bad news

…and Tesla’s big layoffs, plus a buyback bonanza (Fatih Aktas/Getty Images) The bills come due   Sponsored by Last week's market moves Dow Jones 39,513 (+2.16%) S&P 500 5,223 (+1.85%) Nasdaq 16,341 (+1.14%) Bitcoin $60,700 (-3.66%) Dow Jones 39,513 (+2.16%) S&P 500 5,223 (+1.85%) Nasdaq 16,341 (+1.14%) Bitcoin $60,700 (-3.66%) Hey Snackers, Zoom meeting at 10, Space Mountain at 11. Disney parks are increasingly hosting [remote workers](, who find it to be the happiest workspace on earth. (One sec, kids: Goofy’s on a sales call.) The Dow sealed an eight-day win streak on Friday and stocks were in high spirits for the week, with the S&P 500 gaining nearly 2%. But consumer sentiment fell to a six-month low on inflation worries. Wednesday’s monthly consumer-inflation report will shed more light on prices’ path.   HAIRCUT [FTX customers get good-bad news as the bankrupt exchange rides the crypto rally]( Cashin’ reality checks… The FTX saga appears to be wrapping up, closing a dark chapter for the crypto industry, but former customers still have a bone to pick. The good: the bankrupt exchange confirmed in court records last week that it had recovered over $16B. That’s more than the $11B it owes customers, and the exchange said it could [repay]( nearly all its former account holders with interest. The catch: FTX said they would be repaid the dollar value of their crypto in November 2022, when the exchange declared bankruptcy (not the coins themselves). Back then, bitcoin was worth about $18K and FTX fave solana was $16. After a big crypto rally, they’re now worth about $60K and $147, respectively. - Feelin’ SBF’d: Customers are (still) angry, with some calling the deal an “insult.” Many want their crypto back (not the 2022-dollar value) and some have filed a lawsuit. - Crypt-oh yeah: Bankruptcy-claims traders, who bought FTX customers’ debt claims for pennies on the dollar, stand to rake in big gains. Stumbling into a gold mine… FTX can repay customers thanks partly to market luck. Yes, the bankruptcy team worked to seize assets (like: 38 Bahamian properties worth $222M), and some of FTX’s investments (think: genAI giant Anthropic) have [ballooned]( in value. But a major factor that’s upped FTX’s assets is the recent run-up in crypto prices, gains the estate can capture as it plans to repay customers based on pre-rally prices. As of last month, FTX was said to have sold about two-thirds of its solana stash for $1.9B. THE TAKEAWAY Time is an opportunity cost… and FTX customers are splitting the bill. When FTX collapsed, users didn’t just lose their $$; they lost an ability to capitalize on the recent crypto rally because their coins were gone. Many former users, who thought they’d never get their money back, sold their debt claims for cheap. But time has worked in favor of the distressed-debt hedge funds — said to [include]( Attestor, Baupost, and Farallon — who bought those claims, worth hundreds of millions. Sponsored by Jurny Is AI About to Disrupt Hospitality? This AI company is set to disrupt the $4.1T hospitality industry, and this is your chance to invest in their current round.* [Jurny]( is an AI platform automating hotel and short-term rental operations, targeting over $355B in inefficiencies. Partnered with industry giants like Airbnb, Vrbo, and Expedia, Jurny’s technology is fully automating operations for thousands of properties globally. - In 2023, Jurny’s customer base grew 5x and it processed $35M+ in bookings. - Featured by CNBC’s Squawk Box for its AI innovations and impact on hospitality, as well as by Forbes, Bloomberg, Skift, and many others. Jurny has raised more than $12M from leading VCs and 1,200+ individual investors since 2021. [Jurny’s investment round is open]( to its customers and the public, offering you a unique opportunity to invest alongside top VCs for a limited amount of time. Don’t miss your chance to [invest now](.* Sponsored by Jurny Is AI About to Disrupt Hospitality? This AI company is set to disrupt the $4.1T hospitality industry, and this is your chance to invest in their current round.* [Jurny]( is an AI platform automating hotel and short-term rental operations, targeting over $355B in inefficiencies. Partnered with industry giants like Airbnb, Vrbo, and Expedia, Jurny’s technology is fully automating operations for thousands of properties globally. - In 2023, Jurny’s customer base grew 5x and it processed $35M+ in bookings. - Featured by CNBC’s Squawk Box for its AI innovations and impact on hospitality, as well as by Forbes, Bloomberg, Skift, and many others. Jurny has raised more than $12M from leading VCs and 1,200+ individual investors since 2021. [Jurny’s investment round is open]( to its customers and the public, offering you a unique opportunity to invest alongside top VCs for a limited amount of time. Don’t miss your chance to [invest now](.*   ZOOM OUT Stories We're Watching Wall S’treat yourself… Public companies have found something even better than custom quarter zips: their own shares. Stock buybacks (when a company buys its own shares) hit $383B in the past 13 weeks, a five-year high. Analysts expect them to reach $925B this year. Buybacks can temporarily boost stock prices by reducing available shares. But they also mean less $$ invested back into operations, which can lead to wage stagnation. This month Apple approved a $110B buyback — the largest ever by a US company — bumping its shares after it reported sagging iPhone sales. Tesla’s hardcore layoffs… In April, a leaked memo showed Tesla planned to cut 10% of its 140K employees. Earlier this month, Tesla gutted its 500-person EV-charging team, despite automakers adopting its plugs as the electric-charging standard. Now, Tesla’s layoffs seem to be spreading across divisions, and it took down 3.4K job postings. Tough competition and slowing EV demand have backed Tesla into a tight financial parking spot. Last month it reported an 8.5% drop in car deliveries — its first year-over-year decline since 2020 — and a plunged profit.   EVENTS Coming Up This Week Crashing TV’s ad party… It’s TV week, known in the industry as the “upfronts.” It’s a magical time of year when media cos like NBCU and Warner Bros. Discovery put on presentations for ad execs, encouraging them to shell out billions on fall TV commercials. But streamers, which’ve been doubling down on ads, must’ve had FOMO: Amazon and Netflix will present during the ad rodeo for the first time this week, joining YouTube. During last year’s ad bonanza, linear TV spend fell 5% to $19B, while streaming buys exploded 31% to $8B. The hot ad slot this year? Sports streaming — cable’s biggest threat. Fillin’ up the cart…. Walmart unloads Q1 results Thursday, after a strong year fueled by $100B+ in ecomm sales. Walmart’s private-label brands (which drive 30% of sales) have been a hit as both low- and high-income shoppers go bargain hunting. Data showed that households making $100K to $150K were Walmart’s second-largest group of shoppers last year. America’s largest grocer recently [rolled]( out an upscale grocery brand, Bettergoods, to lure Gen Z. Picture: $5 oat-milk ice cream. As inflation keeps biting budgets, Walmart could stock up more growth.   Sponsored by Nasdaq Why equity traders are hungry for options data Weighing your options… Even if you’re not an options trader, [options can potentially impact the price movement of the positions you own](. If you don’t understand the mechanics of options, you could be missing out on crucial information that can help you make smarter trading decisions. [Learn more about options data powered by Nasdaq.]( Sponsored by Nasdaq Why equity traders are hungry for options data Weighing your options… Even if you’re not an options trader, [options can potentially impact the price movement of the positions you own](. If you don’t understand the mechanics of options, you could be missing out on crucial information that can help you make smarter trading decisions. [Learn more about options data powered by Nasdaq.](   What else we're Snackin' - [Swipe](: So long, yuppies. HIFIs (high-income, financially insecure) consumers are splurging above their means to keep up with friends. Wild stat: 36% of HIFIs making $200K/yr live check to check. - [YOLOAir](: The pandemic fueled a rise in semiprivate flights (shared “PJs” for lower prices) and carriers like JSX took off. But some are struggling to maintain altitude as folks balk at the smoggy stigma. - [SkinTok](: J&J consumer spinoff Kenvue was No. 1 for skincare in 2019, but its market share has since dropped. It fumbled Neutrogena and Aveeno amid a $42B beauty boom, while L’Oréal’s CeraVe has had a viral glow-up. Prospective home buyer? Knowing where you can take control of the market hands you power in the process. Get [Rocket Mortage’s full digest]( of tips, tricks and actionable insights for your home buying journey and beyond over at [Sherwood.news](. Ad   Snack Fact of the Day [California teachers earn $95K/year, on average, the most of any state](   This Week - Monday: Westminster Kennel Club Dog Show begins. Zuck turns 40. Earnings expected from BuzzFeed - Tuesday: WNBA season begins. Cannes Film Festival opens. Earnings expected from Home Depot, Sony, Alibaba, Jack in the Box, and Tencent - Wednesday: Consumer-inflation data. International Day of Families. National Chocolate-Chip Day. Earnings expected from Cisco and Dole - Thursday: Weekly jobless claims. Country Music Awards. PEN America Literary Gala. Earnings expected from Walmart, John Deere, Under Armor, Baidu, JD.com, and Take-Two Interactive - Friday: International Day Against Homophobia, Transphobia, and Biphobia. F1 Emilia-Romagna Grand Prix weekend starts. Earnings expected from RBC Bearings Authors of this Snacks own bitcoin and shares of: Amazon, Apple, Comcast, Disney, Tesla, and Walmart Correction: In Friday’s Snacks we misstated the number of SUVs sold in the US last year. It was 8M+, not 15M+, according to CarProUSA. We regret the error. Advertiser's disclosures:* This is a paid advertisement for Jurny’s Regulation CF Offering. Please read the [offering circular and related risks](. Equity crowdfunding investments in private placements, and start-up investments in particular, are speculative and involve a high degree of risk and those investors who cannot afford to lose their entire investment should not invest in start-ups. Companies seeking startup investment through equity crowdfunding tend to be in earlier stages of development and their business model, products and services may not yet be fully developed, operational or tested in the public marketplace. 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