November 25, 2020 | View online | Sign Up
Good morning! Tesla hits a half-trillion-dollar valuation, Reddit bucks the latest silicon valley compensation trend, and Best Buy has a rock-solid quarter.
Tesla hits half-trillion valuation
It’d be an understatement to call investors excited about Tesla joining the S&P 500 Index. The electric vehicle manufacturer hasn’t even been added to the benchmark index yet, and Tesla’s market value is already skyrocketing.
Tesla stock shares exceeded $555 late Tuesday. For context, the Tesla stock price was just above $86 in early January. That rise in investment helped Tesla’s company valuation peak beyond $500 billion this week. The half-trillion market capitalization makes good on a prediction 18 months ago from CEO Elon Musk, according to Bloomberg.
Speaking of Musk, let’s not miss out on another moment to shine the spotlight on the Tesla co-founder, the newly minted second-richest person. Musk accumulated an extra $100.3 billion in net worth as part of this Tesla value surge, passing Bill Gates for the runner-up slot behind Amazon founder Jeff Bezos.
Tesla is scheduled to join the S&P index Dec. 21. For those who don’t know the index is filled with “blue-chip” stocks that are reliable investments. Bloomberg reports that one financial analyst, Goldman Sachs Group Inc., says Tesla’s addition to the S&P index could generate billions in demand.
So needless to say, Musk and his ego are feeling pretty good right now.
Reddit decides to not deduct pay
Reversing a trend set by other tech companies, Reddit has decided to not punish its workers who move away from New York City or the Bay Area—the most expensive housing markets in the country.
Reddit employee salaries will be based on position and rank instead of where the worker lives, not paying anyone less even if cost of living is cheaper.
CNN asked Reddit’s Chief People Officer Nellie Peshkov about the new policy. Here is the condensed version:
More employees want the flexibility to work remotely and the office, the best of both worlds. And new employees won’t be asked to relocate, so that’s nice.
When it’s safe to visit the offices again, that’s when it’ll become clear just how much demand there is for a physical work environment. Reddit believes even its fully remote staff will stop by an office every now and then.
During the pandemic, Reddit has also expanded its expense reimbursements to include “anything that will help you be successful.” So your child’s tutor or an extra laptop is on the company. Surely that’s not being abused by anyone.
On top of all of that, Reddit also has an unlimited PTO policy to help employees avoid burnout. So if you know anyone who works at Reddit, can you ask if they’ll give me a referral?
Quarantine brings back electronic retail
Best Buy had its best quarterly sales increase in the past quarter-century, with the electronic retailer posting 23% year-over-year growth.
These sales spike comes between August and October, so this isn’t from holiday shopping sales. No, everyone is buying the latest tech for themselves, mostly online where sales are up 174%. More than one-third of all Best Buy sales in this timeframe came online, so the big-box store seems to be weathering the supposed demise of brick-and-mortar retail.
Exception to the rule
Department stores and clothing retailers in your favorite mall aren’t doing as well, but Best Buy is benefiting from your extra cash usually spent on vacations. Dick’s Sporting Goods posted similar quarterly growth, suggesting that people are just really bored and have money to burn.
If people are going to put down hundreds for expensive gadgets, they trust a brand name like Best Buy and the convenience and certainty of buying and picking up from an existing location.
Best Buy stock has increased all year despite the pandemic, up 40% so far this year. But the stock seemingly peaked because shares dropped almost 7% Tuesday.
So why did stocks go down despite the great news? It might have something to do with warnings from Best Buy that this breakneck momentum will not sustain.
Is it art? Is it… supernatural? A wildlife surveying team spotted the singular metal monolith in the middle of Utah.
What can brown do for you? Make dry ice. The soon to be released Covid-19 vaccines require sub-zero storage requirements.
McCormick, the spice giant, is adding Cholula to its portfolio for a cool $800 million all cash deal.
Ever thought about moving to Oklahoma? Well, Tulsa is offering $10K to folks that would want to work remotely from the midwestern city.
Who is the most winningest Jeopardy contestant of all-time? Ken Jennings is said to be named an interim host of the popular game show.