Today is Wednesday, September 14, 2022.
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Bitcoin Can't Escape Inflation
The price of Bitcoin decreased by over 8% on Tuesday, one of the worst single-day drops in a dreadful year for the cryptocurrency.
Catalyst: Blame inflation for the decline. August’s Consumer Price Index (CPI), a measurement of the cost of goods and services, ticked up by 0.1% on Tuesday. This was higher than expected and represented an 8.3% year-over-year increase.
Bigger Picture: While hotter inflation was bad for Bitcoin, it was also bad for other cryptos. Stock prices also plummeted on Tuesday.
Fear: The concern is that inflation is not over. Tuesday’s report could force the Federal Reserve to raise interest rates again, which could be bad for Bitcoin and other investments.
Numbers: Bitcoin has lost over half of its value in 2022 and has been stuck around $20,000 this summer. The price had gone up in the past week, but Tuesday’s inflation report erased those gains. If inflation can finally slow down, that would be good for Bitcoin.
Final Thoughts: Other data points show that inflation might be cooling off.
Notable Earnings Today: BRP (Nasdaq: DOOO), Mamamancini's Holdings (Nasdaq: MMMB), Li-Cycle Holdings (NYSE: LICY), High Tide (Nasdaq: HITI), IronNet (NYSE: IRNT), RF Industries (Nasdaq: RFIL).
Notable IPOs Today: JUPITER NEUROSCIENCES, INC. (Nasdaq: JUNS).
Notable Equity Crowdfunding Campaigns Ending Today: Philly’s on the Hill (Mainvest), FattE- Bikes (StartEngine), Gobekli (Netcapital), Trillion (StartEngine).
Notable Economic Events Today: Core PPI / PPI (8:30 a.m. ET), Crude Oil Inventories (10:30 a.m. ET).
Starbucks Unveils Growth Plan
Shares of Starbucks (Nasdaq: SBUX) ticked up 2.46% in after-hours trading on Tuesday after the coffee giant gave financial and business updates during its Investor Day event.
Store Growth: Starbucks now sees comparable store sales growth to be 7% to 9% from fiscal 2023 to fiscal 2025, which is up from the range of 4% to 5%. There will be outsized comparable store sales in China due to the pandemic lockdowns.
Revenue: The company expects revenue growth between 10% to 12% from fiscal 2023 to fiscal 2025. This includes earnings growth between 15% to 20%, which is up from 10% to 12%.
Business Plans: Starbucks sees this growth as a result of its newly announced $450 million investment in U.S. stores between 2023 and 2024. Meanwhile, the company also rolled out a new partnership with DoorDash (NYSE: DASH) on Tuesday.
Stock Price: These improvements are needed to turn around the company. The stock price is down 24% this year.
Final Thoughts: Investors should be excited about these plans. New CEO Laxman Narasimhan starts his role on October 1.
Equity Crowdfunding Spotlight: Soul Bites
Briefly describe your business. Soul Bites is a quick casual, chef-driven, Soul food restaurant/bar/live music venue. Our restaurant carries a 5-star rating on Yelp and a 4.8 rating on Google. And we are known as the best Soul Food restaurant in Santa Barbara.
What are the terms of the investment for your campaign? The terms of the investment are a 13.5% return for every investor. See Honeycomb Credit for more details.
What makes your startup special? Our startup will succeed because we offer a superior dining experience, serving excellent, chef-driven Soul Food, local and Central Coast sourced drinks, along with an outstanding array of live entertainment, such as our gospel/jazz Sunday brunch.
Trends to Watch
Things Could Soon Get Worse: Freight rail strike threatens supply chains, prompting White House planning (The Washington Post)
Timeline: Miners say they plan to fork Ethereum within 24 hours of ‘merge’ (Fortune)
Bah Humbug: Americans won't be going crazy with holiday gifting this year (CNN)
I Bond You Back: Treasury Yields Jump After Inflation Data Exceeds Expectations (The Wall Street Journal)
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