Buzzy Week: ChatGPT (4o), AMC, GME

This week is off to a hell of a start. Before we get into it, how cool is this shirt?

Compliments of The DTC Shoooooow. Thanks Rabah & Jess, you’re legends.

OpenAI just released its free for all users 4o model and it’s pretty wild. This “omni” update makes human-computer interaction much more natural. It accepts text, audio, and image and can generate any combination of text, audio, and image outputs (still no video yet, but that is obviously coming in the near future).

GPT can now respond to audio input in an average of 320 milliseconds which matches human response time in a natural conversation! GPT audio literally sounds like a human talking. Due to the GPT being able to respond in the flow of a conversation, this means you now have a portable translator with you anytime, anywhere.

Watch it function as a translator below (second tweet):

💥 There are endless use cases for GPT-4o, explore HERE.

1. Shopify ($SHOP) stock gets slaughtered on Q1 Earnings

Shopify tanked on its Q1 earnings report which came out on May 8. That day, it dropped 17%, but is now down 27% since market close on May 7.

It actually beat on revenue AND GMV.

Q1 2024 YoY Results:

- Revenue: $1.9B (+23%)

- GMV: $60.9B (+23%)

Revenue climbed 23% to $1.9 billion versus estimates of $1.843 billion.

It beat expectations, so why did it tank?

Despite a solid Q1, it forecasted slowed revenue growth for Q2, down to the teens 📉

The market isn’t happy. It trades as a growth stock and high multiple.

Anytime you have a growth stock that SLOWS in growth, it’s in big trouble.

SO, why is Shopify’s revenue growth slowing?

Consumer spend is likely THE most significant driver.

Shopify represents 11% of ALL ecommerce revenue in the US.

Take a look at the graph below and you'll notice that over the past 5 years, Shopify's revenue growth is pegged to retail sales growth.

This is bc 60% of Shopify's revenue is from Shopify Payments (merchant processing). The more consumers spend, the more revenue Shopify will generate.

Simply put:

Consumer spend -> Total Retail revenue -> Ecommerce revenue (11% of which is transacted on Shopify).

Headwinds impacting consumer spend is causing total retail sales growth to decelerate. This directly impacts Shopify (hence their weak Q2 guide), just like it impacts your consumer brand.

Shopify is feeling the pain many ecommerce brands have felt over the past couple years.

Shopify is still THE leading name in a sector that has a ton of growth ahead. When the consumer starts spending again, Shopify will accelerate growth. It’s not going anywhere.

2. TikTok Files Lawsuit Against the US Gov’t

As expected, TikTok just filed a federal lawsuit in the Court of Appeals, which marks the beginning of a long, complex process.

Here are the details behind TikTok's case and position:

- Ban law violates the First Amendment

- It won't be able to meet the January 19, 2025 divestiture date

- Ban law is an improper taking of private property

- China won't allow it to sell the algorithm

- TikTok employs thousands of Americans

- TikTok has spent $2B+ on data protection from China

Whether or not TikTok has a case is not for me to judge, we’ll leave it to the courts.

But, here’s one thing that really stands out to me and is quite ironic:

Biden's campaign uses TikTok.

Yet, Biden signed a bill to ban TikTok.

If TikTok was such an issue, why is government using it in a campaign to get re-elected? Doesn’t really add up to me.

3. Build a Winning Team: 10 Traits to Cultivate

Before you can scale a business, you have to build a TEAM.

I’ve employed over 250 people in my career, many from different cultures, backgrounds, and countries.

Here are 10 traits you MUST instill in your team if you want to win:

1. Adaptability

“A jack of all trades is a master of none, but oftentimes better than a master of one.”

Digital markets are always shifting. Your team has to be able to shift with them.

Job descriptions are fluid.

Look for people who can work outside their specialty when needed.

2. Customer Obsession

The customer’s perception is your reality.

Your team should be laser-focused on understanding and anticipating customers' needs.

It’s all about your customers, not your team’s egos.

Put customers first, and you’ll create value that keeps them coming back.

3. Data-Driven

Your team should know the metrics that matter for their roles.

Encourage a culture where decisions are backed by data, not just gut feelings.

If data looks unfavorable, your team needs to adapt quickly.

This approach reduces guesswork and drives better results.

4. Creativity

The digital landscape is constantly shifting.

You need a team of creative thinkers who can think outside the box to find new solutions.

If you think like every other team in the industry, you’ll never get ahead.

5. Technical Expertise

Be as savvy with your tools as you are with your strategy.

In the digital age, a team that can leverage the latest tech and tools holds a competitive edge.

Whenever possible, host efficient ongoing training and development to keep skills sharp.

6. Communication Skills

Poor communication can put a brilliant idea in an early grave.

In this ever-changing world, information and ideas move quickly.

Cultivate a team that communicates clearly and effectively to make sure nothing falls between the cracks.

7. Resilience

The road to success is paved with setbacks.

Before a team can win together, they have to know how to lose together.

They need to lose with accountability instead of pointing fingers.

Build a team that sees failure as a stepping stone to greater things.

8. Collaborative Spirit

Lone wolves never make it far.

I don’t care how skilled someone is. If they can’t work with a team, they’re bad for the culture.

One bad apple spoils the bunch.

Collaboration should be at the heart of your operations.

9. Passion

Passion is the energy source you tap into when motivation fails.

Look for individuals who are not just qualified, but passionate about what they do.

Their energy will fuel persistence and inspire others.

10. Proactive

The internet is full of AI tools that can perform tasks when asked.

You need people who can know what needs to be done before they’re asked and are comfortable taking action.

This is one of the most important markers of growth and success.

GameStop ($GME) & AMC ($AMC): BUY or SELL?

GameStop ($GME) and AMC ($AMC) are back to their 2021 pump and dump ways.

Keith Gil (Roaring Kitty) returned to 𝕏 and retail traders are rejoicing.

Each stock is up 200%+ in the past 24 hours alone.

So, should you BUY or SELL these?

Could you make a quick buck on a swing trade? Absolutely.

Remember- these stocks aren’t trading on fundamentals. The stock symbol and the underlying business are DECOUPLED right now.

These stocks could run up another 200% over the next couple days.

OR they could dump 90%+.

Depends what your risk appetite is, but I advise you stay away.

Just dollar cost average into an index fund and sleep good at night.

Your mental and emotional warehouse space is better utilized in other areas.

No matter what- don’t get caught holding the bag! Stay safe out there.

What I’m Listening to 🎧

Beats of the Week: Antdot @ BOMA São Paulo 2024

Antdot is now a repeat appearance on my newsletter, but he just put out another live set which is quite different from the one I featured a few weeks ago. Just take my word, press play, and get to work.

I welcome all feedback. Good, bad, everything in between.

Hit reply, and let’s hear it! 👂

📧 Share your thoughts or what you want me to cover next!