October 24th, 2022

Last week’s market summary (October 17th-21st, 2022):

• S&P 500: -2.93%
• Dow: +3.48%
• Nasdaq: +2.69%
• Bitcoin: -0.48%

Hey Junkies,

Hope you all had a good week! You know who had a great week? Netflix. We’ll tell you why and discuss where the company plans to move from here. Here’s a quick preview of all five stories that we’re covering today.

Let’s dive in!

Clint, Editor-in-Chief

What Everyone’s Been Buzzing About

1. Netflix Is Growing Again…And Lots of Changes Are on the Way

Netflix blew out expectations by adding 2.41 million subscribers in the third quarter. In addition to the subscriber growth, the streaming giant said that it would start cracking down on password sharing in 2023.

And the changes don’t end there. Netflix’s ad-supported tier is launching in less than two weeks. And at the end of November, the company will test out a limited theater release of its Knives Out sequel, Glass Onion, before making it available to stream a week later. It’s an interesting move for a company that has long predicted the inevitable demise of movie theaters.

And what do all of these changes add up to? New monetization streams. For over two decades, Netflix focused on one thing and one thing alone: subscriber growth. But we’re in 2022 now, not 2012. And while high growth quarters like the one that Netflix just experienced are nice, they’re unlikely to be the norm.

Apple faced a similar conundrum a few years as iPhone sales growth began to plateau. And how did they respond? By adding new recurring revenue streams like Apple Music, Apple TV+, and Apple One. It turns out that this new era has been a very profitable one for Apple. And Netflix is hoping for similar successes in its own second chapter.

Give me some good news >>> 3 Benefits of Buying a Home When Interest Rates Are High

2. The IRS Released Its Much-Anticipated Cost of Living Adjustments

Each year, the IRS makes inflation adjustments for a variety of tax provisions. Typically, these minor increases don’t make for front-page news. But with inflation exploding in 2022, many were expecting more significant changes this year…and the IRS didn’t disappoint.

Among the headliners, the income limits for each tax bracket are increasing by about 7% as are the standard deductions (up to $27,700 for married couples filing jointly). Due to these changes, many of us could see bigger paychecks starting in January 2023.

To get more details about the upcoming changes, check out the IRS announcement here.

3. Social Security Benefits Are Getting a Big Inflation Bump Too

Speaking of bigger checks, Social Security beneficiaries will soon be receiving them as well. Once again, this is a result of high inflation.

Like the IRS, the Social Security Administration releases annual Cost of Living Adjustments (COLAs). This year, the adjustment will be 8.7% which is the highest single-year increase we’ve seen in 40 years.

As with the IRS changes, the higher monthly Social Security checks begin in January. Learn more here >>>

4. Looking for Weed? You May Soon Find it at Your Local Circle K

Last week, Circle K announced a deal with Green Thumb Industries to sell cannabis in Florida at RISE Express dispensaries which will have their own separate entrances. For now, Circle K is rolling out its Florida test to just 10 of its 600 locations.

Since cannabis is only legalized for medical use in Florida, a medical card will be required to make a purchase at the dispensaries which are scheduled to open by the end of the year. Still, Ben Klover, Green Thumb’s CEO, is excited that the Circle K partnership will “continue to normalize marijuana.”

This is yet another step in the ongoing weed movement that has only accelerated in 2022. In October, President Biden unveiled his marijuana reform plan which included a pardon for all prior federal offenses of marijuana possession.

So where are we at today? Weed is now legal for medical use in 37 states, for recreational use in 19 states, and multiple states have marijuana ballot initiatives coming up over the next few months.

Interested in joining the party? >>> How to Invest in Cannabis Stocks in 2022

5. Birkenstock’s Boston Clogs Are Fall 2022’s Viral Obsession

Boston Clogs have been one of TikTok’s hottest trends this year which has caused them to sell out all over the country. And that’s led to astonishing prices on reseller sites like eBay.

The polarizing sandals normally retail for $160. But some savvy side hustlers have been selling them for well over $300 to frenzied shoppers who are desperate to get their hands on them ASAP.

The phenomenon has benefited Birkenstock as well, from both a PR and sales standpoint. And it once again demonstrates how valuable it can be to have social media influencers on your side, especially for companies who sell tangible products like clothing and jewelry.

Should You Trust Finfluencers? >>> We Fact-Checked 9 Popular TikTok Investors

What To Keep Your Eye on This Week

Here are a few noteworthy economic events that are coming up this week:

• Monday, October 24th: S&P U.S. Manufacturing PMI | October
• Tuesday, October 25th: S&P Case-Shiller U.S. Home Price Index | August
• Wednesday, October 26th: New Home Sales | September
• Thursday, October 27th: GDP (First Estimate) | Q3
• Friday, October 28th: Core PCE price index

And here are a few of this week’s notable earnings calls:

• Monday, October 24th: Berkeley Corporation (WRB), Brown & Brown (BRO)
• Tuesday, October 25th: Microsoft (MSFT), Google (GOOG), Visa (V), Coke (KO)
• Wednesday, October 26th: Meta Platforms (META), Boeing (BA), Ford Motor Company (FO)
• Thursday, October 26th: Apple (AAPL), Amazon (AMZN), Mastercard (MA)
• Friday, October 27th: Exxon Mobil (XOM), Chevron (CVX)

Staff Favorites

At IJ, we know that many other publishers are creating great personal finance content. So each week we like to call out a few recent stories from our colleagues that we felt were interesting, eye-opening, challenging, inspiring…or just funny.

Here are our picks for this week:

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