The week of Thanksgiving has become one of the most anticipated shopping periods of the year, with analysts projecting up to $60B in sales today—Black Friday—alone.
While retailers slash product prices, they try to compete and outdo each other by offering the best Black Friday or Cyber Monday deals.
Consumers, on the other hand, are on the lookout for the best bargains available and are willing participants in this shopping spree.
This year’s Thanksgiving week will shatter records
According to Statista, Thanksgiving week was projected to hit record sales in the US.
Overall, Statista projected Thanksgiving day sales to rise close to 14% to $3.3B. Black Friday and Cyber Monday were expected to soar by 18%, with an overall estimate of $23.4B in total sales.
Turns out sales will eclipse that today.
“Black Friday is bigger than a 24-hour shopping sprint or even a week-long marathon,” Accenture Strategy’s Frank Layo told Business Insider this morning. “It’s turned into a month-long extravaganza which started with promotions just after Halloween, and will continue well after Cyber Monday.”
Peak holiday season
While the holiday season in the United States begins in late October, it peaks during the second half of November. We can see above when US consumers expect to do holiday shopping is the highest in late November at 72%. This time coincides with Thanksgiving week.
According to Deloitte’s report, holiday shoppers will spend an average of $1,536 in the holiday season of 2018 with gifts accounting for $525 of the total amount spent.
In the Thanksgiving week of 2017, shares of Amazon [AMZN] touched a then all-time high of $1,195.83 and propelled CEO Jeff Bezos’ net worth into the untouched $100B dollar territory.
It will be interesting to see if Amazon shares recover following record sales. The stock has been pummeled in the recent past and has lost over 24% in market value since October 2018.
Total holiday spending might cross $124B this season
According to market research firm ADI, consumers might spend a whopping $124B this holiday season, up from $108.2B last year. Taylor Schreiner, principal analyst at ADI stated, “This consistent growth is itself a surprise. To have a $100B industry continue to grow in double digits is unusual and impressive.”
This holiday season is set to be a blockbuster one for online and physical retailers. Watch this space as we will shortly analyze the impact of strong holiday sales on the stock prices of retail companies.
CNBC: Here’s Why WeWork Wants To Go Public
News broke recently that WeWork’s going public in September. In this video, CNBC breaks down why they’re going public.
Before you watch, though, here’s some context.
WeWork’s recent S-1 filing — the paperwork you file with the SEC right before you go public — had the entire internet up in arms, including ourselves, trying to decode how the heck WeWork justifies its insane valuation.
Considering, ya know, IWG, a direct competitor, has nearly double the revenue, five times the members, is $2.5B ahead on the bottom line and…well, you can sort of see where this is going.
Despite earning an insane $47B valuation this year, it’s bleeding dough. Yes, WeWork grossed $1.8B in 2018…but it also lost $1.9B.
Be that as it may, WeWork is going public this year (via parent company “The We Company”), the latest in a string of high-profile tech IPOs in 2019.
And speaking of tech. Despite numerous “tech” mentions in the S-1, critics are claiming WeWork is little more than a real estate company.
As far as the We losses go, CFO Artie Minson told CNBC that investors need not worry about those grim financials, but instead to look at WeWork’s losses as “investments” that will lead to greater cash flow. (Which is very possible.)
And even if short-term losses eventually unearth long-term cash flows, will they be enough to justify its lofty valuation…and even loftier ambitions?
While we’re waiting for time to tell on WeWork’s future, if you’re looking to raise your startup game right now, go check out our content partner More Labs’ brand-new drink Aqua+. (Yes, the same More Labs behind this drink that broke the internet.)
Video: Compound Interest, Explained
3 Ways To Invest From Your Smartphone For Under $5
The numbers say 80% of millennials don’t invest in stocks.
Reason? Half say they don’t have money, one-third says it’s too early and another third says they don’t know how.
In addition to that, there’s demographic gap. “The average age of a financial advisor is 55,” said Douglas Boneparth, a New York City-based financial planner. “There are more financial advisors over the age of 70 than there are under 30.”
Despite these beliefs, you don’t really need much money, nor experience, to get started. (Just look at our fearless co-founder Odunayo Eweniyi and what she’s pulled off here)
Be that as it may, here are three ways to get started for $5 or less.
What: A micro-investment app (iOS and Android) with over 30 ETFs according to industry, sector and risk tolerance.
How it works: Download the app and choose your investment.
Minimum investment: $5
Cost: Fees range from $1 a month for accounts under $5,000 to 0.25% a year.
“We help people who don’t have a lot save money on a weekly basis,” CEO and co-founder Brandon Krieg said in one interview. “Stashers look like America, they look like people you meet every day: they are nurses and teachers and Uber and Lyft drivers.”
What: iOS and Android app.
How it works: Download the app and choose one of six index funds. When you buy, say a cup of coffee for $1.75, it rounds up the change to $2 and deposits the difference.
Minimum investment: $5
Cost: Just like Stash, fees range from $1 a month for accounts under $5,000 to 0.25% a year.
“We’re not trying to preach austerity to the client, because that’s a bummer,” CMO Manning Field says. “Some people will say, ‘Don’t have the cup of coffee.’ We’ll tell you to have the cup of coffee and invest along the way.”
What: A commission-free investment app (iOS and Android).
How it works: Download and start buying stocks.
Minimum investment: Whatever stock you want to buy.
And by the way, if you want to get a fast start on real estate, here’s Forbes’ list of nine REITs with yields between 8% and 10%.