🍋 Reverse Meme Stock

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Good Morning! The tech slowdown continues as Microsoft announced yesterday it will cut hundreds of jobs. Brighter news for rival Apple as it announced new iPad models and a new Apple TV yesterday. Netflix crushed earnings expectations and stock was up 14% after-hours.

Even during this bear market, wealthy Americans are still driving the stock market as a study found the wealthiest 10% of Americans own 90% of stocks. Florida homeowners are buying the dip - interest in properties damaged by Hurricane Ian has soared over the past few weeks. 

Investing in rental homes is one of the most tried and true methods of building wealth over the long term. Arrived Homes allows investors to browse rental homes across different markets and invest as little as $100 per property.

1. Story of the Day: Reverse Meme Stock

You might have thought meme stock mania is long gone. But while mainstream investors fretted about the latest bear market, amateur investors were identifying their next meme target – Credit Suisse.

Credit Suisse hardly fits the mold of previous meme stocks like GameStop or AMC Entertainment. The almost 200-year-old Swiss bank is one of the largest financial institutions in the world.

The bank is currently restructuring, though, and has been mired in controversy over the past few years. A movement to short the stock came on the heels of @WallStreetSilv tweeting that the bank would probably go bankrupt.

The next trading day after @WallStreetSilv’s tweet, many shorted Credit Suisse’s stock, wiping over $600 million off the bank’s market cap.

In the past, retail investors had joined forces to drive up share prices and stick it to short sellers. But collectively shorting stocks to destroy a company’s value was a whole new ballgame.

The situation got so dire, the bank’s CEO had to reassure clients that the bank was doing fine and not close to bankruptcy. Banks are especially susceptible to rumors and hearsay – a bank could go bankrupt if enough clients withdraw their assets amidst a cratering stock price.

Takeaway: Nobody is safe from becoming a meme stock. Credit Suisse is a top 10 bank in terms of revenue, yet retail investors made big waves bringing its share price down. Some say Credit Suisse was the first ‘reverse’ meme stock, and @WallStreetSilv and crew proved they can cause stocks to drop, too. As retail investors become more sophisticated (now they can short stocks) it’s anyone’s guess what their next scheme will be.

2. Markets Rundown

If you want access to Wall Street insider interviews, industry deep-dives, and investment ideas, check out our Insiders newsletter.

Stocks closed higher as positive earnings fueled the rally.

Movers & Shakers

• (+) Target ($TGT) +6% after CEO reported healthy consumer spending despite inflation and recession concerns.

• (+) Salesforce ($CRM) +4% after activist investor Starboard revealed a stake in the company.

• (–) Hasbro ($HAS) -3% after the toy maker reported low earnings and high inventory.

Private Dealmaking

• Puttshack, an indoor mini golf startup, raised $150 million

• NorthOne, a banking startup for small businesses, raised $67 million

• GoHenry, a banking startup designed for kids, raised $55 million

• Ascadian Therapeutics, a biotech startup focused on RNA medicine, raised $50 million

• Tatum, a blockchain development platform, raised $40 million

• NeuroFlow, a mental healthcare platform, raised $25 million 

Top Reads

• The war in Ukraine is showing up on your heating bill (Axios)

• Women leaders are leaving companies at the highest rate ever (CNBC)

• World’s top finance firms continue to fuel deforestation (Reuters)

• Economy to sink into 1990-style mild recession next spring (CNN)

• Snapchat to play canary in social media’s coal mine (MW)

• Goldman winds up big bank earnings on an upbeat note (Reuters)

• Inflation-slammed Americans are piling on credit card debt (CBS)

• Britain's failed tax experiment to leave economic scars, credibility issues (CNBC)

• Gary Cohn thinks we need job destruction to get inflation down (YF)

• Our cashierless future (Axios)

A Message from Arrived Homes: Rental Homes are a Wealth Generation Machine

Investing in rental homes is one of the most tried and true methods of building wealth over the long term, as this asset class has outperformed the stock market over the last 20 years with less volatility.

With Arrived, individual investors can avoid the traditional pitfalls and operational headaches of residential real estate (read: dealing with tenants). On the platform, anyone can buy shares of individual rental homes that have been handpicked based on their long-term appreciation and income potential:

Users browse rental homes across different markets and can invest as little as $100 per property.

Arrived takes care of the operations and property management while you kick back, receive passive income, and watch your wealth grow.

Arrived is backed by world-class investors, including Jeff Bezos, Marc Benioff, Spencer Rascoff (former Zillow CEO), & the founders of Warby Parker, Allbirds, & Harry's.

Ready to start building your rental home empire? Get started with Arrived today.

4. Book of the Day: Like, Comment, Subscribe

Across the world, people watch more than a billion hours of video on YouTube every day. Every minute, more than five hundred additional hours of footage are uploaded to the site, a technical feat unmatched in the history of computing. 

YouTube invented the attention economy we all live in today, forever changing how people are entertained, informed, and paid online. Everyone knows YouTube. And yet virtually no one knows how it works.

Like, Comment, Subscribe is the first book to reveal the riveting, behind-the-scenes account of YouTube’s technology and business, detailing how it helped Google, its parent company, achieve unimaginable power, a narrative told through the people who run YouTube and the famous stars born on its stage. 

It’s the story of a revolution in media and an industry run amok, how a devotion to a simple idea—let everyone broadcast online and make money doing so—unleashed an outrage and addiction machine that spun out of the company’s control and forever changed the world.

“YouTube’s creators originally considered the idea of a video site focused on dating.”

5. Short Squeez Picks

• 7 principles to beat overthinking

• 18 healthy meals you can cook in 15 minutes or less 

• An ancient strategy to help you improve your attention span

• Throw away your decision-making process

6. Daily Visual: Netflix's Stock Price

Source: Axios

7. Daily Acumen

“It’s hard to determine what is dumb luck and what is unfortunate risk. Investing is a game of probabilities, and almost all probabilities are less than 100%. 

You can make a good bet with the odds in your favor and still lose, and a reckless bet and still win. It makes it difficult to judge others’ performance – lots of good decisions end up on the unfortunate side of risk and vice versa.”

Source: Collaborative Fund

8. Crypto Corner

• How Binance CEO planned to dodge regulators

• ‘Bitcoin as safe haven’ theory crumbles amidst persistent inflation

• Why are so many crypto execs leaving?

• Silvergate shares slump almost 16% after Q3's slowing crypto deposits

• Crypto prices are little changed as $940 million in Bitcoin exits exchanges 

• Walmart CTO says crypto will become important aspect of how customers transact

9. Memes of the Day

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