Alphabet Takes on Some Heavy Lyfting; Crash and Burn: Black Monday Crash-iversary Turns 30; Blue Apron Puts Employees on the Chopping Block

 

Car-ma?

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Uber? What’s Uber? I can tell you what Uber isn’t. It isn’t $1 billion more valuable. But you know who is? Its rival Lyft, which just received a very hefty sum of money from Google’s parent company, Alphabet, following a very recent financing round that brings its total valuation to $11 billion. CapitalG, an Alphabet growth investment fund, will now get a seat on the board and an even cushier relationship with the ride-sharing company.  Incidentally, Alphabet is also connected to Uber. However, that relationship went south when Uber went ahead and started developing autonomous cars that compete directly with Alphabet’s Waymo autonomous-driving technology. Naturally, that didn’t sit well with Alphabet. If you recall, and it’s totes okay if you don’t, Alphabet then sued Uber, alleging the beleaguered ride-sharing company committed trade secret theft. Some analysts believe that this little infusion from Alphabet is the company’s way of hitting back at Uber. Seems legit.  In any case, it appears an IPO may be on the horizon for Lyft and if Alphabet’s throwing money at it, it might turn out to be a stock worth watching.

Unhappy anniversary…

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Today’s date marks an anniversary many would like to forget: The stock market crash of 1987, aka, Black Monday. It was exactly 30 years ago today that the Dow Jones Industrial Average (DJIA) crashed 508 points to a smidge past 1700. The index tanked by 22% and the shockwaves rippled all over the world. It was an even bigger one day drop than the stock market crash of 1929.  But miraculously, the market recovered. Well, maybe not for everyone.  In any case, this week (of all weeks), that very same index just hit a new record, breaking the 23,000 mark. To put it in perspective, if the DJIA crashed by 22% today, it would need to lose almost 6,000 points – heaven forbid! Poo poo poo.  Some market experts warn that we could experience another disastrous drop. However, following the nightmare of Black Monday, certain safeguards, dubbed “circuit breakers,” were put into place that basically – and very conveniently – shut down the market after major drops. This prevents trading and sell-offs that could cause further damage. And basically, now if the S&P 500 falls either 7%, 13% or 20%, depending on certain factors, market trading is halted automatically. You are now free to breathe a sigh of relief.

Stick a fork in me…

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Nothing spells trouble like having to cut your workforce just four months after going public. Which brings us to Blue Apron, purveyor of fine meal-kits, which just found itself having to do just that. The fact is, there’s a lot of competition sprouting everywhere, from Amazon and its Whole Foods acquisition to Albertsons picking up the company Plated in order to sell their kits at the grocery chain’s 2000+ locations. For Blue Apron, it meant having to slash 6% of its workforce which amounts to about 300 employees. The stock is trading today at around $5.20 a share, down almost 50% from its IPO price back in June.

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