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Daily Crunch: October 25, 2021 – A Day of Extremes

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Greetings, and welcome to Daily Crunch for October 25, 2021. Today proved to be quite eventful.

The day began with the announcement of a substantial, multi-billion dollar technology agreement being terminated. Subsequently, the trading day concluded with news of another tech company surpassing the trillion-dollar market capitalization milestone.

Facebook's Earnings and Hardware Reviews

Facebook released its earnings report immediately following the closing bell. Alongside this, TechCrunch published a series of reviews focusing on new hardware releases.

Despite the flurry of activity, it’s still just Monday. – Alex

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TechCrunch's Top 3 Updates

Here's a rundown of the most significant tech news as of today, covering developments from PayPal, Tesla, and Facebook.

PayPal Abandons Pinterest Acquisition

The anticipated acquisition of Pinterest by PayPal has been terminated. This concludes discussions regarding a potential merger between the fintech and social media companies.

Following the announcement, PayPal’s stock experienced an increase in value, while Pinterest’s shares saw a substantial decline. This outcome aligns with initial market reservations about the proposed deal.

Tesla Surpasses $1 Trillion Valuation

Tesla has achieved a market capitalization exceeding $1 trillion. This milestone was reached during regular trading hours, positioning the electric vehicle manufacturer above Facebook in market value.

A key factor contributing to Tesla’s gains was a significant order from Hertz, demonstrating growing demand for electric vehicles.

Facebook Reports Q3 Earnings and Announces Reporting Changes

Facebook released its Q3 2021 earnings report after market close. The report revealed a revenue shortfall, but exceeded expectations for per-share profit.

Notably, Facebook intends to begin reporting revenues from its augmented reality (AR) and virtual reality (VR) segments separately. This increased transparency is a positive step.

Investors reacted favorably, with Facebook shares experiencing a slight increase, though they remain below their previous levels following Snap's Q3 earnings report last Friday.

Further detailed financial reporting across the company is desired, given its demonstrated capability to provide such data.

Startups and Venture Capital Updates

As we begin our comprehensive startup coverage, a significant development emerges from the realm of high-growth companies: Braze, a New York-based technology firm, is preparing for its initial public offering. Despite not achieving unicorn status in its latest funding round, the company is projected to surpass a $1 billion valuation upon entering the public market.

Commercial Space Exploration Advances

Progress continues in the pursuit of commercial space ventures. A collaborative effort involving multiple firms is underway to construct a new commercial space station. Considering the increasing age of the International Space Station (ISS), this initiative is timely and crucial. Sierra Space has announced that Blue Origin and Boeing will contribute to launching this privately-funded space station into orbit later this decade, bringing us closer to a future reminiscent of science fiction.

Selfbook's Strategic Shift and Funding

The recent pandemic significantly impacted various sectors, including business operations and social interactions. For Selfbook, a hotel-booking company, this disruption prompted a re-evaluation of its business model. The company now provides a solution enabling hotels to accept secure, ‘one-click’ payments directly on their websites, effectively minimizing fraud and reducing chargebacks. This pivot has resulted in a valuation of $125 million.

Cameo Expands Through Acquisition

The celebrity-booking platform, Cameo, has demonstrated a successful business model. Users can commission personalized video messages from celebrities and public figures. The company has recently made its first acquisition, purchasing Represent, a marketing and merchandise company that assists celebrities and brands in establishing online storefronts. This acquisition creates clear operational synergies.

Navigating Startup Naming Challenges

The proliferation of venture capital firms has led to an increasing number of companies sharing identical names. An example cited is the existence of two firms both named Shine Capital. However, Y42, a Berlin-based startup, has secured funding and demonstrated a solution to this naming issue. The company has developed a low-code data platform and recently completed a $31 million Series A funding round.

Continued Investment in E-commerce Roll-ups

The ongoing trend of acquiring e-commerce brands continues with Boston-based Thrasio securing an additional $1 billion in funding. This investment elevates the company’s valuation to $10 billion. Thrasio is reportedly acquiring more than one brand per week, currently managing a portfolio of 200 brands, showcasing substantial growth.

Routine: A New Approach to Task Management

A new productivity tool, Routine, has emerged, aiming to streamline daily task management. This startup offers a novel approach to to-do lists, integrating tasks, notes, and a daily planner into a single platform for enhanced efficiency.

The Expanding Influence of Fintech in Healthcare Transformation

Healthcare expenditure represents nearly 18% of the United States’ Gross Domestic Product, making the surge in digital health investment unsurprising. Current figures demonstrate a substantial influx of capital, with venture capitalists having allocated $14.7 billion to health technology startups this year.

This investment surpasses the total of $14.6 billion invested throughout the entirety of 2020.

Considering the comparatively elevated expenses associated with healthcare within the U.S. relative to other countries, the integration of fintech with health tech presents a logical and advantageous business strategy.

Key Areas of Fintech and Health Tech Convergence

Simon Wu, an investment director at Cathay Innovation, highlights several key areas where this convergence is particularly noteworthy.

• The utilization of data and the ongoing shift towards value-based care models.
• The application of gamification techniques to encourage consumer wellness and prevent the development of chronic conditions.
• The deployment of fintech solutions to enhance affordability and streamline processes.

These areas represent significant opportunities for innovation and improvement within the healthcare landscape.

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Big Tech Inc.

The season for new hardware releases is upon us, coinciding with the onset of colder weather. This timing is largely due to the approaching holiday season and the increased consumer demand for gifts. Consequently, we are seeing a wave of new hardware announcements.

For those seeking guidance in navigating these releases, TechCrunch offers a comprehensive collection of reviews. Included are assessments of the Google Pixel 6, Apple’s latest AirPods, and the new 14-inch MacBook Pro. Apple’s newest operating system is also now available for users.

Key Developments This Week

• YouTube’s Content Policy Updates: YouTube is issuing warnings to creators regarding content marketed towards children. Videos deemed “low quality,” promoting negative behaviors, or excessively commercial will face monetization restrictions. This action prompts inquiries, such as why such content was initially permitted on the platform. Furthermore, questions arise regarding the sufficiency of demonetization as a corrective measure.
• Microsoft and Shopify Partnership: Mirroring a similar initiative by Google, Microsoft is collaborating with Shopify. This partnership aims to integrate Shopify merchants’ products into Microsoft’s platforms, including Bing and Edge. Given Bing’s current search market share, this integration represents a positive development for Shopify.
• Retailers Respond to Human Rights Concerns: Best Buy and Home Depot have announced the cessation of sales for hardware produced by Lorex and Ezviz, both “Chinese video surveillance technology makers.” This decision stems from reported connections to human rights violations.

These developments highlight the ongoing shifts and considerations within the technology landscape. The actions taken by YouTube, Microsoft, Best Buy, and Home Depot demonstrate a growing awareness of ethical and quality control issues.

The release of new hardware from major players like Google and Apple continues to drive innovation and competition in the consumer electronics market. Consumers now have a wider range of options to choose from as they prepare for the holiday shopping season.

TechCrunch Professionals

Did you have a chance to review last week’s articles concerning growth marketing and software engineering? The previous coverage can be found here if you missed it.

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