Edition 17
Earnings Week, Zomato Peaks, Eternia Awaits
Selamat pagi (se-laa-mat paa-gi) or good morning as they say in Indonesia! Welcome back to another edition of Business News for Kids (BNFK for short; genius isn’t it? 🤯). We are sooooooooooooooooo overwhelmed by the number of new subscribers 🙌 - big welcome 🤗. You’re all just in time for Q2 Earnings Week. But.. Wait whats Earnings?! What’s Q2! 🤔 Checkout “Wait, what” 👇.
About BNFK
Knowledge is at the heart of being. To be more, we must know more.
With this weekly we distill the latest, most interesting, Business News 📰 .. to an emoji filled, ultra informative, Newsletter for Kids. A dad 👽 & son 👾 experiment, delivered every Sunday.
Catch our previous editions here > Edition #0 , Edition #1, Edition #2, Edition #3, Edition #4, Edition #5, Edition #6, Edition #7, Edition #8, Edition #9, Edition #10, Edition #11, Edition #12, Edition #13 👻, Edition #14, Edition #15, Edition #16.
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Busy business this week 💼
Netflix 🎥, Twitter 🐦 & Snap 🤳 announced Q2 Earnings this week amongst a host of other companies, and phew have things rebounded. While Netflix showed sluggish growth, Twitter, Snap saw revenue zoom🚀. Twitter posted it’s highest revenue growth over a previous year crossing the magical $1bn revenue mark, while Snap stock climbed 23% on increasing revenue and user growth.
All of the above 👆 companies zooming away are doing so because of the good old internet 🌐 >> And Japanese researches just set a new record for internet speed at 319 terabits per second⚡️. If you use a super fast 100gb per second 🚄connection, you’re going to have to 10x that and then 300x that to reach that speed 🤯🤯🤯. Did you know that the Digital Economy was worth $11.5 TRILLION 😱 way back in 2016. Ask Mom or a big person to read this report & tell you the most important bits.
US payments company Square, run by Twitter CEO Jack Dorsey (yes he runs two mega companies), is now a bank 🏦 for businesses. They’ll provide retail store owners with a bank account, debit cards, and also extend loans to them 🎉.
$230 billion dollar Software as a Service 💻 company Salesforce has finally completed its $27 billion acquisition of work messaging app Slack 💬. Discuss with Dad or a big person at home - why did they buy Slack?
Brisbane, in Australia 🇦🇺, has won rights to host the 2032 Olympic Games. It had no rival competitor 😱. No surprise given costs involved in hosting the Olympics run into multi billions 🚀🚀🚀. Read the Economic Impact of Olympics 👈
Wait, what is..
Earnings: Earnings is the Profit 💰 a company makes before it pays tax. Every quarter, companies that are listed share their results including how they did on Revenues, Earnings and other important metrics like users; this time period is referred to as Earnings Season or Earnings Week.
Q1, Q2, Q3, Q4 (Q = Quarter): A ‘quarter’ like every other quarter is 1/4th but of a Financial Year. Businesses report their performance by each Quarter of the year, divided into 4 sets of 3 months each. For e.g. January, February, March is usually Q1 in the US, but Q4 in India 🥴.
Financial Year: A Financial year or a Fiscal year is a year through which companies report how much money they make, their profits/losses etc. The financial year is different to a normal calendar year and starts in some countries from 1st April or 5th April.
SaaS: Software as a Service. Digital products or software 💻 that we use by paying a monthly or annual subscription 💲 are called SaaS products. For e.g. Microsoft Word, Gmail for work, Slack and many other products are SaaS products.
Revise 🥸: NFT, Raised, Acquired, Listed, Market Cap 👉 Wait, What Glossary 👈
Woah 😱 Weird 🥴
Inspite of the $28 million ditch, Jeff Bezos, his brother, an 18 year old, and the awesome 82 year old Wally Funk successfully ventured to space😱, and returned safely, in the record breaking, first crewed flight of rocket co Blue Origin 👈 highlights.
Back on Earth 🌎, here’s something that doesn’t happen everyday. A startup, funded by the world’s no.1 seed investment company Ycombinator, that failed to take off, is now selling itself as an NFT 🥴. Bids open at $96,000. Buying?
Inspiring business people to know 🙏
Meet Jack Dorsey, our inspiring business person of this week.
Jack Dorsey is the CEO of social media company Twitter 🐦 AND payments behemoth Square 🟨. Together, Twitter and Square add up to a $177 billion market cap 🤯. He co-founded Twitter in 2006 with Evan Williams, Biz Stone and Noah Glass, and was CEO until 2008. He returned back to the position in 2015. Jack Dorsey and Jim McKelvey cofounded Square in 2009 and then took it public in 2015🎉. Jack is a big believer in bitcoin 🪙 as the global currency 💸 of the internet.
Stocks, stonks and.. ⚡️
Food delivery company Zomato that was offering shares at approx $1 (Rs.76) for its IPO, saw share price zoom by 80% on listing day. Shares settled at Rs.126 for the day and had hit a high of Rs.139 ⚡️
The India IPO market is on 🔥 with online insurance provider Policybazaar also announcing plans to raise nearly a billion dollars via an IPO. While we’re talking IPOs check out this list of newly minted Unicorns by the Economic Times in 2021 and possible future public companies👇
Video conferencing co Zoom acquired Five9, a cloud customer care centre provider, for $14.7 billion 🤯 entering a whole new line of business 🎉.
Mental models.. whaaaat! 🤯
My dad insisted we put this section in here, even though I protested saying its going to be a while before kids need to apply mental models. Mental models are nothing but ways of thinking, you can use as a framework, to take decisions or solve problems. Who knows, they might just be useful!
Thought Experiment as a Mental Model ⏳ - Thought experiments basically tell you to use your "thinking" to look at the world in a different way. For a thought experiment 🧠, you don't need to run the actual experiment; instead, need to collect all the information you have about the situation and then "think" 💡 of all the possible outcomes you could have.
Therefore, thought experiments are useful when you have to determine outcomes of a situation when doing the actual experiment is not possible to conduct.
Let's take the England-Italy Euro 🇪🇺 2020 Finals. If asked to predict who would win, the actual experiment would not be possible would it? As the 'final' would have to be played before the 'final' 🤯. We therefore would have to analyse the data we have of the two teams and "think" about the outcomes. Sadly, all my "thought experiments" said England 🏴 will win, but well 😅.Tech, products, toys ++ 🤖
It’s back, after an eternity from Eternia. The 1980s epic show He-Man & the Masters of the Universe launched it’s much awaited (by Dad) series Revelations on Netflix and announced a super cool figure line up to go with it👇. The old time 5.5 inch figures are now bigger and mightier. 💪
Pro Tip: The magic of learning is in curiosity. Don’t shy away from clicking those hyperlinked texts to read and learn more. We mostly hyperlink to text we have read ourselves to make sure it is safe, but please be aware that comments and ads shown on these pages are beyond our control. We recommend using a kids friendly browser to view the links.
Disclaimers: Please preview, review, and make sure to pass on only that content which you feel is appropriate for your kids. Images are copyrights of respective owners, we place image sources in caption or link the source website in related texts. Stocks or cryptocurrencies covered are in no way a recommendation and shared only for news / information purposes. We have near zero expertise on investing, and it’s always good to know that Cryptocurrencies are a highly risky, and even illegal, investment in many markets :)
Thank you so much for reading - Arv 👾 & Dad 👽 - Pls hit share to make someone’s day. And please take care. 🙏