Tag: Broken

E-Commerce Economics Are Broken, Says Tech Startup Tradeswell. It Has A Plan To Help Fix Them.

Paul Palmieri was looking at various direct-to-consumer startups as possible investments for his venture capital fund when he decided the e-commerce economics didn’t add up.

“I definitely saw a lot of opportunity to invest in direct to consumer brands, but every time we would get close, we would look at it and say, gosh, the numbers are somewhat broken,” he said.

While the sales potential is great, the fees brands pay to what Palmieri calls the ecosystem of e-commerce enablers—for advertising, for keywords, for warehousing, for fulfillment—are destroying margins.

So instead of investing in a DTC brand, Palmieri decided to invest in starting a company that would help brands large and small master the new math of e-commerce.

The company, Tradeswell, emerged from stealth mode last week after beta

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The Emperor Has No Clothes – Uber’s Business Model Is Broken (NYSE:UBER)

We first warned investors about Uber’s (NYSE:UBER) unrealistic valuation before its IPO in April 2019: “Uber’s IPO Valuation Makes No Sense.” After an underwhelming IPO and its firsts earnings report as a public company, we warned again in “Uber Gives Investors the Worst of Both Worlds.” Now, with the stock trading well below its IPO price, and the firm feeling the brunt of the COVID-19 shutdowns across the world, some investors may think there is value in Uber. Think again. Uber is this week’s Danger Zone pick.

We think those with fiduciary responsibilities need to consider just how much risk they take by owning UBER at current levels. This report shows investors of all types just how extreme the risk in UBER is based on:

  • Recent legislation could break an already weak business model
  • Delivery market share is stagnant (excluding acquisitions), and rideshare is falling
  • The path to profitability remains
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Central Bank Dilemma: Tie Between Money And Inflation Appears Broken

Right now, the Federal Reserve System and the European Central Bank have a dilemma.

Last week the value of the Euro reached $1.2000 for a short time, although the price dropped off to $1.1842 at the close of the week.

The general market feeling is that, if anything, the price of the Euro should rise further.

But, this thought is bringing pressure on Christine Lagarde, the ECB president, to “talk down” the Euro so that the currency does not become too strong and hurt the economy of the European Union and possibly hold down inflation.

Yet, to some, to do this also carries risks.

Stephen Gallo, European head of FX strategy at BMO, has argued,

But at the same time she has to be careful. If they fire that bullet and it only has limited impact, that could be even worse.”

The value of the Euro could grow even stronger.

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