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| Here’s your daily business briefing. - 💉 J&J buys Shockwave for $13B
- 🌊 Deep Dive: Eclipse sparks American travel surge
- 💼 U.S. economy adds 303K jobs in March
Thanks for reading! Shriram
p/Shriram | |
| 1 | | Johnson & Johnson will acquire Shockwave Medical Inc. for approximately $13.1B, offering $335 per share in cash for the Santa Clara-based company. This move aligns with J&J's objective to broaden its presence in medical device production, particularly for heart disease treatment. More: - Shockwave Medical offers intravascular lithotripsy, which uses sound waves to break out calcification in the peripheral circulation and heart veins.
- Through this acquisition, J&J seeks to establish itself as a frontrunner in four swiftly expanding cardiovascular technology sectors.
- The deal, projected to be finalized by mid-year, will be financed through available cash and borrowing, with J&J estimating a dilution of shares by approximately $0.10 in 2024 and $0.17 in the following year.
- Perella Weinberg Partners advises Shockwave on the sale, while JPMorgan Securities LLC assists J&J.
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What the numbers say: According to travel data firm AirDNA, occupancy for all active rental listings along the path of the solar eclipse in the U.S., Canada, and Mexico surged to 92.4% on April 7, up sharply from around 30% just days earlier. Short-term rental demand in New Hampshire and Missouri spiked by 514% and 338%, respectively, while hotel, rental car, and flight bookings tripled, causing room prices in certain cities like Niagara Falls to increase by 249%, and Hertz reported a 3,000% increase in advanced car bookings for April 6 along the eclipse path. Relevance: The upcoming solar eclipse is sparking unprecedented demand for accommodations and travel services in specific U.S. regions, particularly those within the eclipse's path of totality. This boosts the travel sector during a typically slow season. Due to the surge in visitors, short-term rentals and hotels are experiencing high occupancy rates and increased prices. More data: Camping companies like Hipcamp are experiencing a significant spike in bookings, with weekly reservations in the Eclipse area soaring by 9,000%. Additionally, international travelers from Japan, Iceland, Germany, and Australia contribute to the influx of visitors eager to witness the solar eclipse. | | | |
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| 3 | | In March, the U.S. economy added 303,000 jobs, lowering the unemployment rate to 3.8% from the previous month's 3.9%, defying expectations and indicating resilience amid inflation and high-interest rates. Despite a slight slowdown in annual wage gains to 4.1% from 4.3%, reflecting easing inflation pressures, the report suggests sustained job growth, averaging 276,333 jobs per month in the year's first quarter. More: - The healthcare, government, leisure and hospitality, and construction industries led job growth, adding 72,300, 71,000, 49,000, and 39,000 jobs, respectively.
- The U.S. labor market remains robust, boasting 39 consecutive months of job gains and maintaining an unemployment rate below 4% for 26 months.
- President Biden highlighted the economy's resurgence as he celebrated the achievement of creating 15 million jobs since taking office.
- The report suggests that stronger immigration flows could widen the sustainable range of job growth, influencing the Federal Reserve's inflation and monetary policy decisions.
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| 4 | | An Earnest Analytics report shows significant customer overlap between Shein and TikTok Shop, with 28% of Shein consumers also shopping at TikTok Shop, while Temu follows closely with a 25% overlap. Nike is the top athletic brand on TikTok Shop, with 19% of its customers purchasing items on the platform, and in February, existing customers accounted for over 81% of TikTok Shop sales, showcasing a high retention rate. More: - TikTok Shop has emerged as the dominant force in social shopping, commanding more than 68% of the gross merchandise value since its U.S. launch in September.
- Amazon was the most popular shopping destination for TikTok users (97%) in the previous year, followed by Etsy (55%) Temu (39%), Old Navy (38%), Shein (37%), and eBay (32%).
- The survey states that TikTok Shop usage hasn't yet hurt spending at low-cost brands like Shein, despite a substantial overlap with these brands.
- Amidst the threat of a U.S. ban, TikTok has initiated an advertising campaign to underscore its advantages for American users, sparking apprehension among its user base.
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| A message from our sponsor, SocketLabs. |  | | Ask Google and Yahoo Your Most Pressing Email Marketing Questions! This year, Google and Yahoo rolled out new rules for email marketers to reduce spam and create a better experience for their users. Are your emails still making it to the inbox? On April 10 at 12 p.m. EST, SocketLabs will host a live and interactive discussion with Dan Givol, group product manager at Google, and Clea Moore, principal product manager at Yahoo, to discuss bulk sender requirements, how to know if you’re running into compliance issues, and why these changes are designed to make your email campaigns more successful. Moderated by SocketLabs’ CMO Lauren Meyer, attendees will: - Hear more about Google and Yahoo sender requirements and why they’re in place
- Get email marketing recommendations for better, more reliable inbox placement
- Ask their most important email questions
Join us for this exclusive opportunity to talk email with THE email experts! Register Here | |
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| 5 | | Walmart unveiled its second batch of participants for the Walmart Start beauty brand accelerator program, providing mentorship and networking opportunities for brand founders. The program's latest roster features brands such as Current State, LatinUS, Kazmaleje, and Sundae Body, coinciding with the retailer's Beauty Glow Up savings event, offering discounted beauty products online and in-store until April 28. More: - Walmart has broadened its beauty virtual try-on feature to encompass hair color, allowing users to virtually test over 500 hair color products through the Walmart iOS app.
- Launched in 2022, the first class of Walmart Start businesses featured brands including Pardon My Fro and Dossier.
- In line with the widespread adoption of virtual try-on technology seen in companies like Amazon and Google, Walmart has integrated it into its beauty segment, partnering with Perfect Corp. for makeup virtual try-on since October last year.
- Walmart is expanding its beauty offerings through virtual try-on tools, affordable clean beauty sections, and partnerships with upscale brands like Space NK.
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| 6 | | Foxconn, a key Apple supplier, saw a 9.6% YoY drop in first-quarter revenue, amounting to $41.2B, with a further 28.58% decline from the previous quarter. Despite this, Foxconn expects revenue to rise in the second quarter, typically slower, indicating optimism for the company's performance. More: - Before releasing its first-quarter figures, Foxconn's shares dropped 1.4% in Taiwan, contrasting its overall momentum, which has increased nearly 21% YTD.
- With its stock up 14% over the last 12 months, Foxconn is becoming increasingly recognized as a benefit of the AI industry.
- Smartphone parts manufacturers usually experience a slowdown in the first quarter as consumer demand for handsets declines.
- Despite difficulties in other market areas, Foxconn's cloud and networking solutions saw notable growth.
- Foxconn and Nvidia announced a collaboration last year to create "AI factories," a novel type of data center employing Nvidia chips for various purposes, such as training autonomous vehicles, robotics, and large language models.
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| 7 | | Quick Hits: - As a key player in the corporate world, it's crucial to stay ahead of the curve and understand the implications of Visa and Mastercard's groundbreaking $5 billion settlement.*
- Ghost Autonomy, a startup specializing in autonomous driving software for automakers, has ceased operations and shut down worldwide, despite having raised nearly $220M.
- Samsung Electronics anticipates a 931% surge in first-quarter operating profit, reaching $4.89B, driven by a rebound in chip prices, according to a preliminary statement.
- 99 Cents Only Stores, a discount chain operating in California, Texas, Arizona, and Nevada, announced its decision to wind down business operations, as stated in a press release on Thursday.
- Amid a significant stock market decline in China, internet giants from the country are engaging in record buybacks to enhance their market value.
- Dice Cream is automating the ice cream industry with their revolutionary technology. Learn more about investing in their ice cream robot.*
*This is a sponsored listing. | | | |
| Upcoming Events | | APR
10 | | Ask email experts from Google and Yahoo your most important questions at SocketLabs' interactive webinar on April 10. | | | | | | * This is a sponsored event | | | |
 | Freelance Writer | | Shriram is pursuing Master’s in Business with Marketing at Warwick Business School. He worked as a Senior Consultant in Tech and Political Consultancies before his Masters. He is passionate about Tech, Marketing, Strategy, Anthropology and Politics. He is also the Postgraduate Ambassador for Warwick Business School. | | This newsletter was edited by Shriram Jeevakumar | |
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 | Ask email experts from Google and Yahoo your most important questions at SocketLabs’ interactive webinar. | |
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