“Right now we’re just celebrating” — Drew Vollero, Snap’s CFO, reacting to the company’s IPO yesterday. And celebrating for good reason. To say the IPO was a success is a vast understatement. SNAP closed up 44% (at $24.48) and now boasts a market cap of $28 billion. All smiles from Spiegel and Co.
…50 million subscribers, to be exact.
This is Spotify’s first user number announcement since it hit 40 million subscribers a mere five and a half months ago. Spotify appears to be taking full advantage of the growth of the music streaming market, but it’s up to plenty more. The company recently announced an upgraded subscription to a hi-res audio tier for an additional few dollars a month. Rumors have been flying about this potential premium option, but the company has yet to comment. For now, the 50 million of us will have to wait.…And businesses are taking note. Since Facebook’s (-0.48%) Messenger app broke off from the social network itself, the company has introduced artificial intelligence chatbots to help businesses engage with customers via Messenger. And how’s that going? Not great. Yesterday, online retailer Everlane (one of Messenger’s original launch partners) decided that it’s been fun, but it hasn’t been real fun, and ditched Messenger to return to good ol’ email for customer notifications. The good news? Facebook just rolled out an update to help streamline the app’s bot services, which aim to breathe new life into the platform.
…Sincerely, AB Executives. That’s right, the recession in Brazil is creating real problems for the world’s biggest brewer, Anheuser-Busch InBev (-3.75). The megabrewer reported its first drop in core earnings since InBev was founded in 2004. Because of the underwhelming performance in 2016, most of the members of the exec board won’t be getting bonuses this year—oops.
…To assist your Android. For those Android users who haven’t been formally introduced, meet Google Assistant, Google’s (-0.81%) A.I. helper. In the U.S. this week, Google Assistant was rolled out on many Android devices, but it still may take time to get to foreign users. As an alternative to Apple’s Siri, Google execs hope to impress users with more back-and-forth conversation capability. Google still hasn’t announced which Android devices will receive the update—let’s hope it’s you.
…U.S. federal law enforcement raided three of Caterpillar’s facilities yesterday. The U.S. hasn’t said why, but Caterpillar thinks that the raids were part of a larger IRS investigation it’s currently embroiled in. Caterpillar (-4.28%), known for its heavy machinery manufacturing, has been accused of shifting billions in profits to its Swiss subsidiary to avoid paying higher U.S. taxes. CAT says it’s not true, but Uncle Sam is relentless.
…The jet maker has accepted nearly 1,900 voluntary layoffs from union employees. Yes, you heard right—1,900 people voluntarily quit their jobs in exchange for a buyout from Boeing (-0.50%). This is all part of Boeing’s multi-year plan to cut costs through job reductions, and the company has said to expect the same in 2017.
Spotted at a construction site in midtown Manhattan: a third of the Miami Dolphins football team, clad in hard hats and business attire. Owner Stephen Ross was leading 16 players on a tour of a $25 billion property he’s developing. The tour was just one part of the loaded itinerary for a “business combine,” organized by Ross this past week.
Six drinking glasses stand in a row, with the first three full of juice and the next three empty. By moving only one glass, can you arrange them so empty and full glasses alternate? (Answer)
Interest coverage ratio – A debt ratio and profitability ratio used to determine how easily a company can pay interest on outstanding debt. The interest coverage ratio may be calculated by dividing a company’s earnings before interest and taxes (EBIT) during a given period by the amount a company must pay in interest on its debts during the same period.
Ready for your obscure yet exorbitantly expensive item of the day? On March 1, a piece of mold (yes, you heard that right) sold for $14,500 at an auction in London. Now, this wasn’t just any piece of mold! This specimen was grown by Alexander Fleming and led to the biologist’s discovery of penicillin.
