A Second Lockdown is Out of this World
Rising Covid Cases matter
Cases are hitting an all-time high and are concern across the country. Since the election, we have seen a rapid increase in Covid-19 cases across the country. With Christmas and Thanksgiving around the corner, these cases will only increase with more family gatherings.
Biden will lockdown the country
I would bet there's a greater than 50% chance of a partial lockdown next year. This will happen when Biden comes into Administration. Along with the partial lockdown we will see a $1 trillion-dollar stimulus plan. The problem is most of that money will go to businesses and municipalities. But it won't be enough for the businesses.
What will trigger this event
The holiday season has just begun. In the next few months Will see cases rise more with family gatherings and seasonal outings. Cases will continue to peak during the cold weather season. So it is most likely that cases will continue to rise until January/February in the U.S.
This is when the Biden administration begins and will deliver the second lockdown. This lockdown maybe 30 days or more depending on the number of daily cases. People will be more prepared for a second lock down. But businesses will not. The Post-holiday season is usually the toughest period for most retailers.
What do we know. Two major pharmaceutical companies have announced effective vaccines. Pfizer requires two vaccines to be taken 3 weeks apart in order to achieve +90% effectiveness. This delivery method creates more problems given how long it takes to deliver.
Why does it matter. An effective vaccine will bring confidence back to the economy. Right now people are not going out while local governments are creating more restrictions. Expect local economies to suffer until foot traffic picks up again.
First, I will say President Trump has been tweeting that a vaccine was around the corner for months. It’s not a coincidence that Pfizer and Moderna released very effective vaccine results days after the media announced Biden will be the next President.
Trump wasn’t off by his statement. In fact, these pharmaceutical companies must have known of the vaccine results weeks before the press release. However you may interpret this, the vaccine is effective and not far away. The problem is only ~40% of Americans will use this vaccine in the next twelve months.
Tesla’s new rocket ship
The Tesla Tequila Sold Out
Elon is the master brand extension. He's sold hats, flamethrowers, and several other physical products to fund ideas at his companies. Most recently created the Tesla Tequila, which sold out in minutes online. Soon after you can find this product selling for thousands of dollars on eBay.
Tesla has been added to the S&P
This week Tesla was added to the S&P 500. This is a major step for a big company. Why? Fund managers that track the index are required to buy all new stocks in the index. This means selling out the old ones to buy Tesla.
Electric cars are here to stay. This move has created the foundation for electric cars in the future. Tesla will now have access to more funds and a better investor base.
Man is going Back to the ‘Moon’
This week SpaceX also had a successful manned mission to the International Space Station. An historical moment for the company and mankind. SpaceX now has the launchpad to do many more missions for the government and other agencies.
P.S. Elon’s Covid results are a good indication of faulty healthcare testing in America. He has taken several Covid tests and the responses have been inconsistent.
TiE Tech CEO Event
Successful event for our TiE New Jersey chapter. Samir Dhir, the president of Virtusa, did a terrific job covering a wide range of technology topics. We had 78 people attend this event!
My biggest takeaways were his three steps to building a billion dollar brand:
- Codify: create a solution everybody can understand for the same problem. Don’t make apples into oranges.
- Scale for talent: business is about people. Don’t look for a hack or algorithm to solve your big problems without communication.
- Focus on sales: customer centric businesses need a single approach to industry problems.
I've raised over $3,000 in the first 30 days. We still have time left if you like to donate today.
Last weekend was Diwali, one of the most celebrated holidays for Indians. But with rising Covid cases, all restaurants have been suffering from lost customers. It's our duty to support local businesses. Please go buy something from a local Indian restaurant this week to celebrate the festival of lights.
Airbnb IPO price
The traveling industry has gone bankrupt. But from the ashes one business survived. AirBnB. No telling how the rest of 2020 will go but today AirBnB plans to IPO.
This is a big turnaround since April. You see, Airbnb along with its competitors had zero revenue in April. Long-standing Rivals like Marriott hotels and vacation rental businesses almost went bankrupt in the early part of the pandemic.
The Surge in Tech IPOs
Airbnb is not the only tech company to go public. Others such as DoorDash are planning to take advantage of the IPO markets before Biden becomes President. With higher taxes and other unknown expenses around the corner, businesses need to make decisions before the year ends. This is the case for private companies too. Tax bills from the new Administration will be higher. Biden has been very clear on this topic.
Amazon’s New Online Pharmacy
Add drugs to your next Amazon order. Two years ago Amazon purchased PillPack for $750 million. Now it is taking action. But even Amazon needs to wait before going to market.
Prescription drugs are expensive in the United States. But generics can be very cheap if the delivery is affordable. And Amazon has the infrastructure to make this happen.
Now the Retail Battle Begins
You would think this is an online only play but you would be wrong. You see, Amazon dominates ecommerce. It is no question this will be a multi-billion dollar revenue stream. Online pharmacies have strict ecommerce guidelines and require a VIPPS license along with a physical pharmacy location to be approved. This is a high barrier to entry.
But the next biggest opportunity will be the physical pharmacy locations at Whole Foods and Amazon Go locations. This will cater to the senior population who like to shop in-person. Amazon's pharmacy business will compete with Walmart and CVS.
Healthcare is very expensive in America and it is good to see Amazon attack it head on.
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