Wanna Be a Billionaire? Then Move to China; Rainbows and Unicorns!: Twitter Might Finally Churn Out a Profit; Nike’s Game Plan Leaves No Room for the “Undifferentiated​”

Something tells me we’re doing it wrong…

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Image courtesy of Stuart Miles/FreeDigitalPhotos.net

There’s a new report out published by UBS and PwC, called the Billionaires Insights report that tracked 1,542 billionaires all over the world and their combined $6 trillion. And while some might quickly assume that the United States might hold the top spot for the billionaires club, they would be wrong. As it turns out, Asia has the most billionaires, topping out at 637, whereas the United States can only boast 563 billionaire residents. In fact, every two days a new billionaire is minted in Asia, with China having the most.  But, to be fair, the wealth of the U.S. billionaires is much higher, coming in at $2.8 trillion, compared to Asia’s $2 trillion. So six in one, half dozen of the other, I suppose. Except not for long. The report also mentioned that the wealth of Asia and its billionaires will far surpass the U.S. in four years. One of the biggest “problems” listed for these poor billionaires face is how they intend to pass on their wealth. Rich people problems. But somehow they manage, whether they choose to pass it on to their heirs or leave it to charitable organizations. Decisions decisions. Of course, the more people the billionaires leave behind, the more complicated things get. But such is life when one is saddled with so much friggin’ cash.

Fairytales do come true…

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Image courtesy of Stuart Miles/FreeDigitalPhotos.net

There’s a lovely rumor going around that maybe, possibly Twitter just might crank out its first-ever profit. We just need to wait until next quarter to see if that’s actually going to happen. But it’s not outside the realm of possibility since the social media company did make a major push to cut expenses while engaging in deals with other companies that don’t have them relying so heavily on advertising. Wall Street, at least is super stoked, causing shares of Twitter to soar 16% to over $20 per share.  And that company definitely needs all the share-soaring it can get. Twitter’s revenue was $590 million, a 4% dip from last year at this time but still decent since expectations were for $587 million. The other big news on the Twitter front is that the company made a very big mistake and is apparently trying to make amends for it. It seems that somehow an error was made in how user base was calculated for the last few years. But the company did revise the previous estimates, that had those numbers coming in a bit smaller than what was previously reported. Twitter insists that the difference amounted to less than one percent and that’s the story they’re sticking to. Their monthly active users, by the way, are up to 330 million and that number is supposed to be accurate, just disappointing since analysts expected that number to be 330.4 million. Oh well, Can’t win ’em all.

You’re out!

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Nike’s annoyed at under-performing retailers and has put them on notice. Which is definitely one way to make enemies. But hey, Nike is all about competing and if a struggling retailer is unable to “just do it,” then they’re out. Because Nike has a plan – a big one – that’s got them trying to hit $50 billion in sales by 2020. Nike wants to just do it, naturally. However, Wall Street is not so sure it can. I have yet to decide who my money’s on at this point in time. Apparently, 40% of Nike’s wholesale business comes from “differentiated” retailers and they want to up that to 80%.  Those retailers have a way of presenting the merchandise that gets customers wanting to spend their money at those establishments. According to Nike brass, “undifferentiated mediocre retail” just won’t cut the mustard and can expect a nasty goodbye within five years. Ouch. Nordstrom and Foot Locker apparently have nothing to worry about. For now. There were some obvious omissions, though, including Macy’s and JC Penney. Just saying. Whatever Nike has in store for those “undifferentiated” retailers doesn’t seem to bother Wall Street. Investors sent the stock up 3.5% today.

Schadenfraud Anyone? Forbes Unveils its Latest Top 400; Can’t Stop Netflix; Venmo’s the New Way to Go. At Least According to Paypal

That’s a whole lotta money…

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Image courtesy of iosphere/FreeDigitalPhotos.net

Forbes has unveiled its latest list. This time it’s the top 400 richest Americans for 2017 and there are very few surprises in store. Bill Gates and his $89 billion net worth takes the top spot, followed by Amazon’s Jeff Bezos and everyone’s favorite Omaha Oracle, Warren Buffett.  Facebook’s Mark Zuckerberg sits pretty in fourth place. The first time we finally see a woman on the list is at spot number 13 and it’s occupied by Alice Walton of the illustrious Walmart clan. There are 22 newbies on the list and some of them are even self-made billionaires, including Netflix CEO Reed Hastings who comes in at number 359. He had a good year and his company had a great quarter. But we’ll get to that one in a bit. Former Uber CEO Travis Kalanick comes in at number 115, despite being out of his CEO job, while beloved Star Wars creator George Lucas gets spot 118. As for President Trump, he did make the list, coming in at a less than impressive (for him) ranking of 248.  He shares the spot with 15 other people including Snapchat founder Evan Spiegel. Their fortunes are valued at $3.1 billion, a figure the President will probably dispute. It’s a steep drop for the President, whose 2016 ranking had him at the 156th spot. But I guess that’s what happens when your portfolio loses $600 million. I wonder who he’s going to blame for that one?

Wall Street ❤️ Netflix…

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The best way to bring Wall Street to its finicky knees is to crush its expectations. And Netflix did just that. First, the video streaming company laughed in the face of analysts’ projections for subscriber growth. For Netflix that was a 5.3 million increase, far from the modest forecast of 4.5 million new subscribers. A large percentage of those new subscribers came from outside the U.S. Netflix now boasts 109 million subscribers and I’m guessing you must be one of them, right? As for the next quarter, the company expects to add 6.3 million subscribers. Revenue for the company was $2.99 billion, again beating projections of $2.97 billion.  However, at first glance, Netflix’s profit was not so impressive. But that’s only because the company is throwing down serious cash for producing its own shows. And if you’ve ever seen “Orange is the New Black” or “House of Cards” then you’d probably agree that it’s money well spent.  So what does this all mean for you, the Netflix connoisseur/viewer, who obsessively waits for new seasons of your beloved shows to be unleashed? Well, you can probably expect an increase in your subscription plans but hey, that’s the price you gotta pay if you want to keep watching new seasons of “Stranger Things,” right?

Going half-sies…

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If you haven’t signed up for Venmo yet, now might be a good time to start. The company just announced that users can now use the app to make mobile online purchases from over 2 million retailers including Forever 21 and Foot Locker.  But what’s so darn cute about Venmo is a feature that gives you the option to split a purchase with a friend. Or even an acquaintance, I suppose. Which is so great when you go out for lunch and can’t be bothered to do the math at the table or when you just want to pay the rent down the middle. And, you can even share status updates about the purchase. How nifty. Especially if you’re a millennial. Did I mention that Paypal is Venmo’s parent company? Well, it is. And pretty much anywhere you’re able to use PayPal, you can now use Venmo there as well. Just think of all the Lululemon merchandise you can purchase with all your besties.