| Here’s your daily business briefing. - 📈 Lyft projects 15% annual growth, shares surge
- 🔍 Deep Dive: Nvidia leads May gains with AI
- 💼 U.S. job gains surge, wages rise
Thanks for reading! Shriram
p/Shriram | |
| 1 | | Lyft ($LYFT) targets 15% annual growth in gross bookings through 2027, boosting its shares by nearly 10% to $17.03. Its advertising business is expected to grow from $50M in 2023 to $400M by 2027. More: - Lyft saw 250% growth in ad revenue last quarter from the in-app, in-vehicle tablet, and car-top digital screen ads.
- Retail and hospitality sectors are the main users of Lyft's advertising platforms.
- Uber hopes to make $1B in ad income annually and has a more varied global footprint.
- Lyft aims for a 15% CAGR in gross bookings and a 4% adjusted core profit margin by 2027.
- In 2023, Lyft reported a 14% growth in gross bookings and a 1.6% adjusted core profit margin.
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What the numbers say: In May, Nvidia's market cap soared nearly 25% to $2.69T ($NVDA), leading global companies in market cap gains, while Microsoft ($MSFT) maintained its top position, rising 6.6% to $3.08T. Apple ($AAPL) surged 12.9% to $2.94T, Walmart ($WMT) grew 10.8% to $530B, and Tesla's market cap fell nearly 3% to $567.9B. Relevance: Nvidia's market cap gain reflects investor confidence in its AI-driven chip demand, buoyed by strong revenue forecasts and a stock split announcement. Meanwhile, Microsoft's rise is driven by AI innovations, Apple's surge by increased smartphone shipments to China, Walmart's growth by strong quarterly results and a positive forecast, and Tesla's decline by decreased sales and increased competition. More data: Nvidia's market cap soared due to strong AI-driven chip demand and a favorable revenue forecast. Microsoft's rise reflects AI innovation expectations, Apple's gains are from AI initiatives and China shipments, Walmart's growth is from strong performance and forecasts, and Tesla's decline is due to European sales drops and EV market challenges. | | | |
| 3 | | May saw a robust addition of 272,000 jobs in the U.S., surpassing forecasts and showcasing labor market resilience, though the unemployment rate nudged slightly upward to 4.0%, ending a streak of 27 months below this level. Average hourly earnings accelerated by 0.4% in May, driving annual wage growth to 4.1%, yet conflicting signals emerged, including a rise in unemployment and a decline in job openings in April. More: - Major job gains were seen in healthcare (+68,000), government (+43,000), and leisure and hospitality (+42,000).
- The Federal Reserve will likely keep interest rates at 5.25%-5.50%, diminishing the chances of a rate cut in September.
- Following the strong job report, financial markets reduced the probability of a September rate cut from 70% to 55%.
- The average workweek stayed at 34.3 hours, while Q1 economic output grew at its slowest rate in nearly two years.
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| 4 | | Forrester forecasts that global online retail sales will hit $6.8T by 2028, with the U.S. contributing $1.6T. This projection suggests an 8.9% compound annual growth rate from the $4.4T recorded in global online sales in 2023, with U.S. online sales expected to grow from $1T to $1.6T by 2028, constituting 28% of total domestic retail sales. More: - By 2028, offline retail at physical stores is predicted to account for 76% of total global sales, reaching $21.9T.
- Online sales growth is driven by the expansion of marketplaces, social commerce, online grocery shopping, BOPIS, quick commerce, livestream selling, and direct-to-consumer selling.
- New store openings significantly influence the shopping experience, boosting online shopping in the area by 6.9% and by 13.9% for direct-to-consumer brands.
- DTC brands are adopting hybrid models, integrating online and physical retail to meet flexible shopping expectations seamlessly.
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| 5 | | In Q1 2024, solar power comprised 75% of new U.S. electricity generation capacity, with installations reaching a record 11.8 GW. The U.S. solar industry has benefited from increased panel availability, supportive policies, and a surge in global supply chain and module imports totaling 49 GW from June 2023 to March 2024. More: - Domestic solar panel manufacturing capacity rose to 26.6 GW in Q1 2024, up from 15.6 GW in the previous quarter.
- Florida led the U.S. in solar panel installations, followed by Texas, California, and Nevada, with most additions being utility-scale.
- Home solar installations dropped 25% YoY and 18% QoQ due to rising interest rates and a slowdown in California's rooftop solar market.
- The commercial solar sector saw no growth quarter-over-quarter.
- The U.S. is set to install nearly 40 gigawatts of solar capacity in 2024, matching the 2023 record.
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| 6 | | TSMC-backed Vanguard International Semiconductor Corporation and NXP Semiconductors are teaming up to construct a $7.8B wafer manufacturing facility in Singapore. Vanguard will have a 60% ownership share in the joint venture, dubbed VisionPower Semiconductor Manufacturing Company, with NXP holding the remaining 40%, and the plant will supply wafers for automotive, industrial, consumer, and mobile device markets. More: - Construction of the new plant in Singapore is slated to commence in the latter half of 2024, with wafer shipments to customers projected to start by 2027, generating around 1,500 jobs.
- NXP plans to invest $1.6B, Vanguard $2.4B, with an additional $1.9B for long-term capacity sourced from third parties.
- The aim is to bolster manufacturing, geographical resilience, and supply control for both firms.
- This investment mirrors previous semiconductor ventures in Singapore, with companies like GlobalFoundries and United Microelectronics Corp. also establishing chip fabrication facilities there.
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 | 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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