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Issue #21

Apple shuts down BNPL, America sues Adobe, trader starts burrito empire, and more.

News from June 13 - June 20, 2024

Apple Shuts Down BNPL

Apple is shutting down its "Buy Now, Pay Later" service, Apple Pay Later, just months after its launch. The service faced challenges and ultimately proved unsustainable, highlighting broader issues in the BNPL sector, including regulatory pressures and financial concerns.

Despite the shutdown, Apple remains committed to flexible payment options. The company has partnered with Affirm to offer BNPL services through the Apple ecosystem.

This collaboration allows Apple customers to access BNPL services, showing Apple's confidence in the system and technology while opting not to manage it directly.


America Sues Adobe

The FTC and DOJ have sued Adobe, makers of programs like Photoshop and Lightroom, accusing the company of making it difficult for customers to cancel their subscriptions. Lina Khan, Chair of FTC: "Adobe ambushed users with hefty 'early termination fees' and threw up obstacles when people tried to cancel." 

The lawsuit seeks to compel Adobe to change its cancellation process and provide refunds to affected customers.

Adobe has responded, asserting its commitment to fair practices and customer satisfaction amid the ongoing legal proceedings.


People Overbuying NASDAQ

The NASDAQ is experiencing an "overbought mania," driven by Apple, Nvidia, and Broadcom, which make up 70% of the index's rise. However, only 50% of NASDAQ stocks are gaining.

JPMorgan highlights Nvidia's valuation becoming cheaper despite its surge and a potential disparity between small-cap and big tech stocks.

With the buyback blackout—when companies are restricted from repurchasing their own shares—starting now until July 19, market dynamics could shift significantly. As JPMorgan notes, this period could reveal much about the market's true strength.


Bulletin Board

  • Ralph Lauren Recyles Cotton. Ralph Lauren commits to using recycled cotton in 50% of its products by 2025, significantly reducing water and energy use. CEO Patrice Louvet: "Our vision is to lead the way in sustainable fashion." This move positions Ralph Lauren as a pioneer in eco-friendly practices, setting a high standard for the industry and highlighting its dedication to reducing environmental impact. Source 
  • Women Are Leading Less. The latest Global Gender Gap Report reveals women are still underrepresented in leadership roles globally. In the UK, women's leadership positions dropped to 37.1% in 2023 from 37.8% in 2022. The report also showed that female representation fell sharply from 46.9% at the entry level to 25.9% at the C-suite. Emma Walmsley, CEO: "We need to rethink our approach to leadership and foster inclusive practices to close the gap." Source
  • Feeds Become More Chronological. Social media platforms are shifting back to chronological feeds as users express frustration with algorithm-driven content. This change aims to provide a more transparent and predictable experience, allowing users to see posts in real-time order rather than letting algorithms manipulate what they see. Critics argue that the chronological approach may reduce the engagement metrics that platforms rely on. Source
  • MrBeast Launching Drink Company. MrBeast, the social media star with over 280 million YouTube subscribers, plans to launch a beverage brand according to leaked documents from a lawsuit he filed against his burger chain partner over their "revolting" food quality. The new venture, "Beast Beverages," will join the influencer-led drink industry alongside products like Logan Paul & KSI's Prime Hydration. MrBeast's existing relationships with major retailers like Walmart and Target are expected to facilitate the product's market entry. Further plans include a mobile game in 2025, monetized through ads and in-app purchases. Source
  • Trader Starts Burrito Empire. Former hedge fund trader Steven Marks founded the burrito chain Guzman y Gomez (GYG) in Australia in 2006 after being disappointed by the local Mexican food quality. GYG has since grown to 185 restaurants in Australia and several international locations, recently achieving an IPO valuation of A$2.2 billion. Marks aims to rival McDonald's in Australia, leveraging his finance background and early life challenges to shape GYG’s vision for healthier fast food. Marks: "McDonald's isn't food."

Disclaimer: This blog offers insights into international business and global events for informational purposes only. It is not intended as investment or business advice. WeavePay is not liable for any decisions made based on the content provided.

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