Microsoft is the world’s most valuable company, sorry Apple
Plus: Spotify is finally cashing out & Coca-Cola is taking full control of BodyArmor
Why this matters: Move over, Apple. Badly bruised by the global shortages, Apple has now relinquished its highly coveted position to Microsoft. After reporting underwhelming earnings, Apple’s market cap stood at about $2.46 trillion while Microsoft’s was nearly $2.49 trillion. Apple estimated a loss of $6 billion and expects even worse supply chain issues in the fourth quarter, Microsoft, on the flip side couldn’t have had a better quarter, recording its fastest growth, amongst others since 2018. (CNBC)
Spotify is finally cashing out
Spotify (SPOT) is finally humming a different tune after breaking a cycle of losses.
Why this matters: Podcasts to the rescue. The company’s growth had been stifled because most of its revenue went back to record label companies who own popular songs on their platform. But Spotify has added non-label content like podcasts which have drawn in more listeners. Spotify’s monthly active users and premium subscribers both rose 19%, year over year, to 381 million and 172 million, respectively. The most promising sign is that podcasts and better targeting drove ad revenue up 75%, year over year. (Barron's)
Coca-Cola is taking full control of BodyArmor
Coca-Cola (KO) is dropping $5.6 billion to take full control of BodyArmor in a deal that values the sports drink at about $8 billion.
Why this matters: Amping up against rival Gatorade (PEP), Coke, which already owns 30% of BodyArmor, is buying the remaining 70% from founders and investors, as well as a group of professional athletes who invested and helped market the drink. Gatorade still dominates the sports drink market, though BodyArmor sales have been climbing quickly. BodyArmor expects to generate about $1.4 billion in retail sales this year. (Market Watch)
That’s it from us
See you tomorrow