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| Hey Insiders, Thanks for joining us for another edition of Inside Business. Today we look at how Netflix's gamble of cracking down on password-sharing is working out, as well as dive into two different food companies and their financial outlooks: Nathan's Famous and Beyond Meats. Scroll down for more business stories, and let us know if there is a business topic you'd like to see us write about further. Christopher
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| 1 | | In direct connection with its password-sharing crackdown, Netflix subscriptions have risen. The streaming giant gained more new subscriptions from May 25 to May 28 than it had in any other four-day span since Antenna began compiling data in 2019. More: - Netflix began putting an end to people sharing account passwords, which it estimated that more than 100 million people worldwide were doing.
- The company made users that share an account outside the prior account holder's home pay $7.99 per month to use the service.
- It also limited the amount of users customers could add to their accounts.
- The monthly cost of sharing an account with an extra person is $2 less than opening up your own account.
- Shares of Netflix have risen 13% since the password-sharing crackdown began on May 23.
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What the numbers say: Nathan's Famous reached a recent high in revenue in its most recent earnings call. The hot dog company continues to see its revenue grow, especially over the past two and a half years. It reached $130M, which is a five-year high for the company overall. Relevance: Nathan's Famous announced its fiscal year and Q4 earnings yesterday. Sales of Nathan's Famous hot dogs to the food service industry increased in this quarter, as did sales at the company-owned stores. The stock price reached a high yesterday that it hadn't seen in nearly five years, going over $82 per share. More data: While inflation has hit the food industry hard over the past year, Nathan's has steadily increased its business, likely due to the lower cost of production. By comparison, Beyond Meat, the plant-based food company valued at $1B, has seen YoY growth plummet over the past three quarters, registering at -21%, -20%, and -15% for its past three earnings reports. Yet the company's stock surged 20% on Thursday. | | | |
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| 3 | | Brokers Goldman Sachs and Exane as well as asset manager Schroder have cut ties with hedge fund Odey Asset Management after sexual assault allegations were lobbied at founder Cristian Odey. Thirteen women have come out and claimed Odey sexually harassed or assaulted them. More: - A Financial Times investigation into the allegations found that partners at Odey Asset Management were aware of the mistreatment of women as far back as 2004.
- When the executive committee eventually issued a final written warning to Odey in 2021, he fired them.
- Odey denies the claims, and a law firm representing Odey said allegations made against him were "strenuously disputed."
- Goldman Sachs began cutting ties with Odey on Friday, and Exane terminated its business with the fund on Thursday.
- Morgan Stanley has already ended its business relationship with the company, and JPMorgan is reviewing its relationship.
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| 4 | | The Inflation Reduction Act, signed into law last August, aimed to curb inflation and invest in domestic energy production. But energy companies are finding it hard to qualify for the tax credits. More: - The Act contains tax breaks for solar and wind companies to buy American equipment. The law offers tax credits that could cover up to 70% of a renewable energy project's cost as long as it supports American workers and communities.
- But guidance from the Biden administration has shown that checking off the boxes to gain those credits is nearly impossible.
- For example, Qcells, a solar panel manufacturing plant, was told that Summit Ridge Energy would purchase 2.5 million solar panels. But the Biden administration is requiring that the solar cells, not just the panels, are made in the U.S., which Qcells won't be able to produce until late next year. This leaves Summit Ridge Energy scrambling to find a cheaper option.
- "There's not a single solar manufacturer who fully qualifies for this at this moment in time, which makes it difficult and is actually starting to cool investment," said Leslie Elder, Summit Ridge's vice president of political and regulatory affairs. "Now we have to re-evaluate based on what can pencil."
- The incentive aimed at U.S. manufacturers makes domestic solar panels 30% less costly to produce than importing them. With incentives, the total cost of producing utility-scale solar electricity could potentially be 68% less than it is now.
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| 5 | | Ursa Major and Orbit Fab, two Colorado-based space companies, laid off employees this week as both aim to tighten funding. Ursa Major let go of 27% of its employees, and Orbit Fab cut 10 employees with 50 remaining. More: - Ursa Major makes rocket engines, and Orbit Fab provides refueling services for spacecraft.
- The first quarter of 2023 saw the lowest period of investment in the space sector since 2015, according to Space Capital.
- Ursa Major last raised money in October, earning a $150M round and a $550M valuation. Orbit Fab raised money in April with a $29M funding round, earning a $113M valuation.
- Ursa Major's lineup of rocket engines have earned it orders from the Air Force Research Laboratory, Stratolaunch, and Astra. Orbit Fab has won early contracts from Space Force and the U.K. Space Agency prior to the layoffs.
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| 6 | | Tesla is set to earn as much as $3B by 2030, thanks to its deals with Ford Motor Co. and General Motors Co. to allow their electric vehicles to use the Tesla charging network. Tesla announced a deal with GM on Thursday to open up its charging network. More: - Tesla's charging model is the standard in the U.S. amongst the largest American automakers and will pressure competitors to get rid of the competing standard, known as CCS.
- "Other brands will be forced to join this consortium, effectively establishing Tesla's 'North American Charging Standard' as the preferred approach for EV charging — at least in the United States," Piper Sandler analyst Alex Potter said in a research note Friday.
- Piper Sandler estimates Tesla could add upwards of $3B in charging revenue from non-Tesla owners alone by 2030 and $5.4B by 2032.
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Term of the Day Amalgamation: Amalgamation is the process of combining two or more companies into one entity to improve business strategies or goals. Question of the Week Have you ever had to compromise your values for your career? Join the conversation |
INSIDE BUSINESS LEADERBOARD (7 DAYS) |
 | Freelance Editor | | Christopher Hachey is a freelance writer and editor based in the New York City area. He has spent most of the past 15 years in newsrooms covering all kinds of topics like sports, tech, business, finance, and commerce. He's now returning to his broadcast journalism roots by diving into podcasting news. Reach out to him at chris@inside.com | | This newsletter was edited by Aaron Crutchfield | |
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