Tag Archives: Retail

Tesla Sells Junk (bonds), Malls Love Apple, Watching TV Has Become Stressful, and Facebook Will Now Take Your Order…

We have an amazing team here at BlueOrange. Kaspars is on a well deserved vacation, and Krista and our summer intern Renārs do a great job keeping everything in order, while also providing thoughtful and fresh insights into making us a little bit better every day.

Here are some links that they found interesting this week:

Tesla manages to raise $1.8b through junk bonds yielding 5.3%
Earlier this month, Tesla came out with a statement saying that the money required to fund the projected production ramp of its recently released Model 3 is going to be raised through a bond offering. At first, the electric carmaker wanted to raise $1.5 billion, a number that, due to high demand, was later increased to $1.8 billion.

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LINKS

What is the opportunity cost of waiting for a market correction?
LINK: Opportunity cost of waiting for a market correction

Disney to leave Netflix
Starting 2019, Netflix and chill is going to have to take place without the usual late-night session of Frozen, as the media giant announced its plans to remove its content from Netflix and start its own streaming service.

Reportedly, Disney is also going to launch an ESPN streaming service early next year, which is going to feature sports events from the NHL, MLB, MLS, collegiate sports and Grand Slam tennis.

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LINKS!!!

LINK: Tesla Starts Producing Its Model 3
The first Tesla Model 3 rolls off the production line!
It’s finally here! The first Tesla Model 3 rolled of the production line on July 9th, as Elon Musk tweeted a photo of the newly-built vehicle. According to a series of tweets, it was poised to be delivered to Ira Ehrenpreis, the first of four hundred thousand people to put down the $1000 pre-order deposit. As it turns out, Mr. Ehrenpreis was kind enough to let Musk have the first ever production vehicle.
The new Model 3 has a base price of $35’000, making it the most affordable Tesla to date.

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Amazon’s Way to the Top

Only ten years ago, four of ten largest companies in the world by market cap were from oil and gas industry and only one tech company (Microsoft) was included in the list.

As of December 30, 2016, five of ten largest companies in the world are tech companies and only one is from oil and gas industry (Exxon Mobil).

Top 10 companies by market cap
Rank 2006 2016
1 Exxon Mobil Apple
2 General Electric Alphabet
3 Microsoft Microsoft
4 Citigroup Berkshire Hathaway
5 Gazprom Amazon
6 Industrial and Commercial Bank of China Exxon Mobil
7 Toyota Motor Corporation Facebook
8 Bank of America Johnson & Johnson
9 Royal Dutch Shell JPMorgan Chase
10 BP General Electric

Source:Bloomberg

Right now we are not interested in the demise of oil & gas companies or decrease in the number of banks between top ten companies. We would like to turn your attention to tech companies.

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Millennials and Retail

“Let’s start at the conclusion: Millennials are about to blow the world’s mind in the best possible way. The idea of a shut-in nation spending the prime of their personal and professional lives playing video games in mom’s basement is lunacy. Millennials aren’t space aliens. They are the spiritual grandchildren of Baby Boomers with longer life spans and better toys.”

millennials

LINK: Millennials & Retail Myths

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The Decline of US Premium Retail

There is a revolution going on in the US retail space.

This article from FastCompany tells an interesting story how US premium brands have virtually diluted themselves out of relevancy and how new on-line only retailers are emerging with a focus on quality over overt branding:

http://www.fastcompany.com/3062474/fashion-forward/the-decline-of-premium-american-fashion-brands-what-happened-ralph-tommy

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