🍋 Fitness Industry Gets Back in Shape

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Good Morning! Looks like eggs aren’t the only part of your breakfast getting more expensive in 2023. Orange farmers are feeling the squeeze of their smallest crop in almost 100 years, and now the average gallon of squeezed orange juice is over $10. In other news, Party City has thrown in the towel and filed for bankruptcy. It seems inflation is making it tough to keep the party going.

On the job front, Microsoft is cutting back on its workforce and letting go of an additional 10,000 employees. For those of you on the job hunt, beware: ChatGPT is giving human applicants a run for their money. It's being recommended over actual people in online job applications.

That time of the year again - Bonus Szn. We are back with our Wall Street compensation survey. Please fill out the survey here. We'll be send out the results as soon as the intern can figure out how to use Excel.

Our last year's comp deck got a ton of y'all raises, so you'll likely be doing yourself a favor by filling it out.

1. Story of the Day: Fitness Industry Gets Back in Shape

As we all gear up to hit the gym and shed our quarantine weight, the fitness industry is finally flexing its muscles again after a rough workout during the pandemic. But don't be fooled by the bulging biceps, as many gyms and fitness studios were forced to permanently close their doors due to stay-at-home orders and the rise of at-home workouts.

But just like how the world is slowly returning to normal, so too is the fitness industry. Orangetheory, known for its high-intensity interval training paired with heart monitors, plans to pump up its presence with over 100 new studios added to its 1,500+ locations in 2023, with the majority of growth happening in the United States.

But, just like any workout, there are always challenges and obstacles to overcome. The prospect of inflation and a potential recession could lead consumers towards cheaper options, such as big-box fitness chain Planet Fitness or even more at-home workouts. Soul Cycle, a specialty fitness chain, recently closed a fourth of its 80-some locations, proving that not all fitness businesses are created equal.

Takeaway: Fitness industry experts remind us that the whole business is about getting results for clients. Turns out, people crave in-person experiences and when they're coming consistently, they're less likely to cancel. So, let's hit the ground running and get back to our pre-pandemic fitness levels!

2. Markets Rundown

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Stocks closed lower ahead of negative retail data and worries about potential Fed action.

Movers & Shakers

• (+) Moderna ($MRNA) +3% because of positive data from its vaccine trials.

• (–) Yeti ($YETI) -7% after a downgrade by Cowen, e-commerce trends moderating.

• (–) Chegg ($CHGG) -17% after a downgrade Needham from 'buy' to 'hold'

Private Dealmaking

• Emerson Electric offered to buy National Instruments, an electronic test manufacturer, for $7.6 billion

• Asimov, a synthetic biology startup, raised $200 million

• KreditBee, an Indian digital lender, raised $100 million in new funding

• NextPoint Therapeutics, a cancer treatment startup, raised $80 million

• Tabby, a buy-now-pay-later platform, raised $58 million

• Hystar, a green hydrogen startup, raised $26 million

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3. Top Reads

• How much do Gen Z workers need to save each month to retire with $2 million (CNBC)

• The tech economy is not an island (Axios)

• Gen Z and millennials are leading ‘the big quit’ in 2023 (CNBC)

• Wall Street CEO backs post-pandemic push to get employees back in the office (Fox)

• Americans are spending more than they make as high prices pinch (Axios)

• Demand for Tesla’s is ridiculous thanks to price cuts (MSN)

• Why you should wait until the fall to buy a new car (WSJ)

• Why Apple is the only tech giant that hasn’t announced layoffs (CNBC)

• We asked ChatGPT what Bitcoin’s price will be in 2030 (FB)

• FTX says hackers stole $415 million after crypto exchange filed for bankruptcy (Fox)

4. Book of the Day: Risky Business

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Why is dental insurance so crummy? Why is pet insurance so expensive? Why does your auto insurer ask for your credit score? The answer to these questions lies in understanding how insurance works.

Unlike the market for other goods and services—for instance, a grocer who doesn’t care who buys the store’s broccoli or carrots—insurance providers are more careful in choosing their customers, because some are more expensive than others.

Liran Einav, Amy Finkelstein, and Ray Fisman explore such issues as why insurers want to know so much about us and whether we should let them obtain this information; why insurance entrepreneurs often fail (and some tricks that may help them succeed); and whether we’d be better off with government-mandated health insurance instead of letting businesses, customers, and markets decide who gets coverage and at what price.

With insurance at the center of divisive debates about privacy, equity, and the appropriate role of government, this book offers clear explanations for some of the critical business and policy issues you’ve often wondered about, as well as for others you haven’t yet considered.

“An engaging and accessible examination of what ails insurance markets.”

5. Short Squeez Picks

• Why working out during the workday is the ultimate power move

• Using Einstein’s law of focus to feel more productive, accomplished, and fulfilled

• The daily habits of happiness experts

• Losing can be transformative - if you do it right

• 10 things you should do before 10a

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6. Daily Visual: M&A in US and Canada

Source: Axios

7. Daily Acumen

Lynne Twist in The Soul of Money:

"Each of us experiences a lifelong tug-of-war between our money interests and the calling of our soul. When we’re in the domain of soul, we act with integrity.

We are thoughtful and generous, allowing, courageous, and committed. . . . We are open, vulnerable, and heartful. . . . We are trustworthy and trusting of others. . . .

We feel at peace within ourselves and confident that we are an integral part of a larger, more universal experience, something greater than ourselves."

8. Job Board

• UBS - Core Banking Product Manager - Chicago, IL

• Ramp Financial - Channel Success Manager - New York, NY

• Goldman Sachs - Internal Audit - Compliance & Legal Technology, Associate - Dallas, TX

• Ripple - Director, Global Payroll - New York, NY

• Coalition - Accounting Admin - The Woodlands, TX

• IBM - General Accounting Analyst - Tulsa, OK

9. Memes of the Day

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Lynne Twist in The Soul of Money: