What we’re reading (12/30)
“Wall Street Will Soon Have To Take Millennial Investors Seriously” (The Economist). Quick summary: Millennials are entering their peak earning years and are likely to be on the receiving end of one of the greatest transfers of wealth in human history in the next few decades (as of Q2 2020, U.S. Baby Boomers’ total assets stood at an astounding +$60 trillion, including property, pensions, equities, and other assets—over 6x Millennials’ total assets at the same point in time).
“Sears Is Dying A Quiet, Invisible Death” (CNN Business). “Sears has made it through another holiday shopping season. Just barely…But the fact that Sears isn't in bankruptcy is not a sign of health, according to experts. The company has made little effort to reinvigorate stores, grow sales or turn its failing business around.”
“Intel Stock Surges As Activist Daniel Loeb Pushes It To Explore Deals” (Barron’s). “Intel shares caught a bid in Tuesday’s trading after news emerged that activist investor Daniel Loeb of Third Point had acquired a significant stake in the chip maker and was pushing it to explore strategic alternatives. Shares were up as much as 5.7% in afternoon trading after Reuters reported that Loeb’s hedge fund has a nearly $1 billion stake in the $200 billion company.”
“In 2020, We Reached Peak Internet. Here’s What Worked—And What Flopped.” (Washington Post). “The pandemic put Silicon Valley’s boldest ideas for an app-operated life to the test, quickly and at scale. Now it’s time for an accounting of what worked, what flopped — and what’s the new normal.”
“IAC Enters The Spin Cycle” (Dealbreaker). “Internet holding company IAC, chaired by media mogul Barry Diller, announced yesterday it will spin-off its Vimeo video unit to shareholders…[Vimeo was] scooped-up by IAC in 2006 as part of a larger acquisition…[t]he pandemic has driven a surge in demand for software-as-a-service (SaaS) companies like Vimeo, which now boasts 1.5 million paying subscribers. That includes over 3,500 enterprise customers like Amazon, Starbucks and Rite Aid.”
