🍋 Netflix Takes Away Your Ex's Pwd

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Good Morning and Happy Friday! S&P 500 and Nasdaq have had three days of gains and are up almost 5% for the week after a disastrous 2022. Mortgage rates are also up, above 4% for the first time since 2019. Crypto app downloads are increasingly widespread with over 100 million downloads in Q4 2021. Since McDonald's, among other Western businesses, pulled out of Russia, the locals have started a competitor and will try to use an almost identical logo. They just turned the Golden Arches 90 degrees and made it a B (it ain't much but its honest work). Ben & Jerry's will revive their Dublin Mudslide ice cream from the "Flavor Graveyard." On St. Patrick's day too? Poetic.

Today's sponsor, Polymarket, allows you to trade on real-life events including if inflation will be more than 1.0% from February to March '22.

1. Story of the Day: Netflix Takes Away Your Ex's Pwd

If you pay for your own Netflix account, we get it, you're better than the rest of us. Kudos to you. If like me, you use your ex's password, then also kudos (I call it being street smart). Bad news for us in the latter category though – Netflix wants to start charging password sharers an extra fee.

The streaming giant is currently testing the fee in Chile, Costa Rica, and Peru before the mistake, I mean decision, is widespread. This news comes just weeks after Netflix raised their monthly subscriptions' prices, so it's clear that the nickel and diming is a part of the bigger plan.

Netflix says that their household plans have been very popular, but people misunderstood the intended way to use them. Chengyi Long, Netflix's director of product innovation said, "As a result, accounts are being shared between households – impacting our ability to invest in great new TV and films for our members."

Wall Street clearly likes the extra 2.99 a month it will cost to add up to two users outside of your home. Netflix stock rose 3.9% on Thursday. Considering the stock basically got cut in half from its high in November, investors can view the baby steps as progress.

Currently, 36% of Americans say they share their Netflix password with relatives. A lot of people consolidate accounts in an effort to save money. VersiVe Manhattan, a 37 year old forklift operator in LA says that people had to adapt enough during the pandemic, and that it's potentially a privacy issue.

Why should Netflix have a say in who knows his password? Michael Pachter, an analyst at Wedbush Securities, seems to be on the same side. He said, "I believe that a crackdown on password sharing is going to increase churn."

Short Squeez Takeaway: I don't think people misunderstood how to use the multiple profile functionality at all... Netflix probably just didn't realize how widespread the mooching would be. Or, put in a more positive way, people are very generous with their password sharing. If the extra cash actually leads to more quality content on Netflix, and not just another ridiculous dating show, then I'd say it's worth it.

Source: WSJ

2. Markets Rundown

Call it a hat trick because markets rose for the 3rd day in a row. Investors are accepting the Fed's hawkish attitude as well as updated rate hike forecasts and future balance sheet reduction.

Movers & Shakers

• (+) Eiger Biopharmaceuticals ($EIGR) +40% after announcing positive findings from a study evaluating their treatment, which reduces chances of hospitalization for non-hospitalized COVID patients.

• (+) Lemonade ($LMND) +15% because the car insurance company's competitor, Allstate, is apparently discussing increasing prices.

• (–) KE Holdings ADR ($BEKE) -14% after an impressive run yesterday on a positive announcement from China and their relationship with markets, it seems that investors are selling to pocket gains.

3. Top Reads

• Warby Parker, online disruptor, setting its sights on brick and mortar expansion (WSJ)

• Amazon Flex drivers ask for Uber/Lyft support in face of high gas prices (CNBC)

• Can we actually close the wealth gap? (BB)

• Investors may have overpaid for the classics (Axios)

• Poor Oligarch says punishing billionaires won't affect Putin (BB)

• Many unicorn startups could become zombies (Axios)

• Peter Schiff's fashion advice for Volodymyr Zelensky completely backfired (BB)

• Now's your chance to buy a Premier League Football Club. Bids pour in for Chelsea (WSJ)

• Surge in SUV and pickup purchases has led to higher pedestrian casualties (Axios)

• Evergreen calls on their closer, hires same firm to save the Ever Forward (BB)

A Message from Polymarket: Inflation for March ’22

Consumer prices in the US increased 0.8% month-over-month in February of 2022, above 0.6% in each of the previous two months, and in line with market forecasts.

The surge in gas prices could serve as a catalyst for a much higher month-over-month inflation growth rate in March, and could topple the 1% mark for the first time over the last twelve months.

Will U.S. inflation be more than 1.0% from February to March 2022?*

Polymarket traders are currently predicting a 43% probability that March inflation will be more than 1%. What do y’all think? Follow the odds now on Polymarket!

4. Book of the Day: The Art of the Good Life: Clear Thinking for Business and a Better Life

Since the dawn of civilization, we've been asking ourselves what it means to live a good life: how should I live, what will truly make be happy, how much should I earn, how should I spend my time? In the absence of a single simple answer, what we need is a toolkit of mental models, a guide to practical living.

In The Art of the Good Life, you'll find 52 intellectual shortcuts for wiser thinking and better decisions, at home and at work. They may not guarantee you a good life, but they'll give you a better chance.

“It’s not what you add that enriches your life - it’s what you omit.”

5. Short Squeez Picks

• LEX allows you to build your own portfolio of single-asset commercial real estate investments. Sign up for free here and get a $50 bonus when you deposit at least $500

• Your coworker is probably just window shopping on Zillow

• Good writing, like this (lmao) matters in economic publications

6. Daily Visual: Consumers Don't Feel So Good

Monthly Consumer Sentiment Index

Source: Axios

7. Daily Acumen: Goals vs Systems

Goals are the targets you want to achieve, while systems are the processes you put in place to help you achieve them.

Goals tell you where you want to go; they’re focused on tomorrow.

Systems tell you what you need to do every day to get there; they’re focused on today.

If your goal is to write a book, dedicate yourself to 1,500 words a day. You’ll be done before you know it. 

Source: Dilbert.com

8. Crypto Corner

• Will there ever be another memecoin?

• The blockchain helps Ghana's coca farmers get paid more

• Looking at the Senate's hearing on illicit crypto use in Russia

• Apple is crypto's biggest wildcard

• Russia changes tune on crypto, issues digital asset license to Sberbank

• A podcast with Kyle Samani explaining crypto use cases and where web3 will take us

9. Memes of the Day

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*Trading is not available to people or companies who are residents of, or are located, incorporated or have a registered agent in, the United States or a restricted territory.