You're viewing an email archive of The Hustle newsletter. Join free to receive the 5-minute newsletter keeping 2M+ innovators in the loop.
|
|
| The big idea | |||||
 |
|||||
Is YouTube bigger than Netflix? |
|||||
|
Alphabet, Google’s parent firm, dropped its latest earnings report Tuesday night. And it was bonkers. Per The Verge, Alphabet’s revenue in 2021 hit a record $257B, a gain of 41% YoY. Somewhat absurdly for its size, this is the company’s fastest annual growth since 2007. The YouTube juggernautGoogle acquired YouTube for $1.65B in 2006, but didn’t break out earnings for the streaming service until 2020. For the latest quarter, YouTube ads brought in $8.6B. Here’s the wild part: That’s an annualized run rate of $34B, which outpaced Netflix — a $30B run rate — for the 1st time. With a mostly ad-based business, YouTube is usually left out of the streaming subscription wars conversation… … but it’s clearly the video leaderAs one point of comparison, a study of Android users found that in 2020 the average monthly time spent on YouTube was 23 hours (vs. ~6 hours for Netflix). Meanwhile, YouTube itself has more active users (2.3B) than any social site other than Zuck Daddy’s Facebook (2.7B). And while we’re at it, here’s another wild stat: YouTube is the 2nd biggest search engine in the world (you can guess the first). Alphabet’s stock jumped 9%+…… on the strength of the earnings and news that it’ll do a 20-1 stock split (which goes into effect in July). If the split happened today, $GOOGL would be ~$148 a share vs. ~$2,960 a share. Lower dollar values after a share split have worked as an enticement for retail investors, who bid up Apple and Tesla following their respective splits. Split or no split, Google — and YouTube — will keep being bonkers businesses. |
|||||
|
| SNIPPETS |
|
Theme park moves: SeaWorld Entertainment wants to buy Cedar Fair, operator of 13 amusement parks, for ~$3.4B. #ecommerce-retail Green hydrogen: Copenhagen Infrastructure Partners is backing a wind- and solar-powered green hydrogen project breaking ground in Spain in 2023. #clean-energy Meditation app Calm acquired health care tech company Ripple Health Group. Ripple will build Calm Health to replace Calm’s employer offering, Calm for Business. #emerging-tech India is getting into the crypto game with plans to launch a digital rupee and a 30% tax on income from digital assets. #fintech-crypto SpaceX has a new Starlink Premium tier, which will get you faster 500 Mbps internet… for $500/mo. The new antenna is $2.5k. #big-tech |
| Chart | |||||
 |
|||||
The economics of 15-minute delivery are… interesting |
|||||
|
Gopuff, DoorDash, Gorillas, Jokr, Getir, and Buyk may sound like Pokemon, but Pokemon don’t lose money delivering groceries. These companies promise near-instant delivery, and they’ve raised $5.5B+ in VC money since 2020. But the economics are sketchy, at best. Last year, Fridge No More was losing $3+ per order, excluding the $70 it was spending to acquire each customer. To deliver quickly, you need hyperlocal warehouses, instant labor, and, ideally, high-value non-perishable products. “If it’s a toothbrush and banana, that’s not going to work,” one industry insider told WSJ. The idea is that with enough scale — and the right items — some companies could turn profitable. But it’s likely many will turn out like Kozmo.com, which shut its doors in 2001 after raising $200m+ a year earlier to deliver goods in one hour. |
|||||
|
| Extended Pays | |||||
 |
|||||
Extended stay hotels are a surefire investment |
|||||
|
They may not have buzzy nightclubs or champagne bubble baths like some hotels, but one analyst told The Wall Street Journal that, for investors, extended stays “print money.” At extended stay hotels… … guests typically check in for 1 week to several months. They differ from traditional hotels in a couple of ways:
They’re also cheaper to operate With less guest turnover, hotels save on cleaning and staffing costs. And because guests frequently cook for themselves, they don’t need full-service, on-site restaurants and bars. Plus, they can weather a pandemicAt the onset of the pandemic, extended stays were used by health care and military personnel. In 2020, revenue per available room fell 48% YoY for traditional hotels, but only 33% for extended stays. And now, experts say the lodging once popular with business travelers is attracting remote workers and vacationers, who are into the autonomy, low contact, and convenience they provide. In 2021, extended stays enjoyed an average occupancy rate of 73% compared to 56% for hotels in general. Fun fact: Actor Richard Harris once said he lived in London’s The Savoy Hotel because “if you’re paying the mortgage on a home, you can’t ask the bank manager to fetch you a pint.” He’s got a point. |
|||||
|
| AROUND THE WEB |
|
🎼 On this day: In 1959, musicians Buddy Holly, Ritchie Valens, and JP Richardson (AKA “The Big Bopper”) and pilot Roger Peterson were killed in a plane crash. The date would become known in history as “The Day the Music Died.” 💸 How to: A 2020 report found that Black female entrepreneurs typically raise far less than the US median average. So, here’s a Black woman’s guide to raising capital. 🌳 Useful: You like trees, right? Well, this search engine plants trees every time you use it! 🐟 That’s interesting: Methuselah is a ~90-year-old lungfish who lives at the California Academy of Sciences. She’s one of the oldest aquarium fish in the world and, apparently, has “gourmet tastes.” 🗒 Haha: Use this site to send someone a “big-ass message.” 🦹♀ Aww: And now, a cat that’s either a superhero or about to rob a bank. |
| Tweet of the day |
 |
|
Source: Twitter |
|
How did you like today’s email?
 |
 |
 |
Business and tech news in 5 minutes or less
In 1994, Jeff Bezos discovered a shocking stat: Internet usage grew 2,300% per year.
Data shows where markets are headed.
And that’s why we built Trends — to show you up-and-coming market opportunities about to explode. Interested?
