Finimize - 🛠 Big Tech risks redundancy

Hi Reader, here's what you need to know for September 17th in 2:51 minutes.

🛍️ Microchips have gone all limited edition on us. And just like Yeezy’s next drop, companies are lining up round the block for these bad boys. So you’re going to want to join Blackrock’s Omar Moufti for The Great Semiconductor Shortage on Friday, and find out when companies will finally be able to secure the goods. Grab your free ticket

Today's big stories

US retail sales jumped unexpectedly last month
Goldman Sachs has laid out four key themes that will have a massive impact on your Big Tech investments going forward – Read Now
European car sales continued to suffer this summer, what with the ongoing chip shortage

Teacher’s Pet

What’s Going On Here?

Data out on Thursday showed US retail sales unexpectedly rose in August, thanks in large part to an A+ effort from back-to-school shopping.

What Does This Mean?

Retail sales climbed 0.7% last month compared to the same time last year, which was a far cry from the 0.7% drop analysts were expecting (tweet this). And they’d have been even higher – 1.1% higher to be precise – if not for anemic car sales. There were a couple of reasons they were so strong: the spread of the Delta variant, for one, has put people off taking vacations, leaving them with more money to spend elsewhere. And then there was the $15 billion the government has spent supporting parents, which will have come in real handy for August’s back-to-school shopping season.

But there’s a problem: restaurant and bar sales didn’t rise in August, which suggests there are still gaping holes in this economic recovery. Goldman Sachs, then, might’ve been right earlier this month when it slashed its forecast for US economic growth from 6% to 5.7%.

Why Should I Care?

For markets: We’re on dangerous turf.
Between Delta-induced uncertainty, China’s manufacturing difficulties, and the high prices of labor and materials, American companies aren’t exactly on stable ground either. In fact, most of their stocks have fallen more often than they’ve risen in the last few months – something analysts see as a clear sign of a weakening market.

For you personally: What goes around…
The last thing American companies need to contend with is higher taxes, but higher taxes might be exactly what they’re going to get: the US government took a step toward approving tax hikes on Wednesday, with a view to make an extra $2.1 trillion in revenue. Good for the government, sure, but not necessarily so good for companies, investors, or shoppers: businesses will either have to accept lower profits, or they’ll need to make up the shortfall by raising prices on you.

You might also like: There are ways to profit from the US tax hikes – if you squint a little.

Copy to share story: https://www.finimize.com/wp/news/teachers-pet/

🙋 Ask a question

Analyst Take

Can Big Tech Keep Adapting To Survive?

What’s Going On Here?

Big Tech’s held the world in the palm of its hand for the last 20 years.

But those companies know better than anyone how fast tech can go redundant, and they’ll need to evolve if they want to keep customers from slipping through their fingers.

Cue Goldman Sachs, which has looked into the four key themes that could make the likes of Amazon, Facebook, and Alphabet relics of the past.

And since they’ll drive the biggest debates between investors, you’ll want to know what opportunities they could present too.

So that’s today’s Insight: Goldman’s four key themes, and how well-placed the biggest tech companies are to adapt to them.

Read or listen to the Insight here

No mo’ investing FOMO

Wish you’d bought into Amazon back before it got big? How about Netflix?

Those two stocks have something in common, besides being in the tech world: The Motley Fool spotted them before they blew up.

The ship might’ve sailed on Amazon and Netflix, but you can get The Motley Fool’s report on its next five hot stocks, so you know what to look out for.

The report is totally free, and the stocks won’t break the bank either: they’re all under $49 per share right now.

Get ahead of what could be the next big thing: download your free report.

Get Your Free Report