In The News 12.24.22
The US economy grew much faster than previously thought in the third quarter https://www.cnn.com/2022/12/22/economy/gdp-third-quarter-final/index.html
The Takeaway: GDP grew at 3.2% in third quarter, higher than the expected 2.9%. While this is good news, it increases the probability that the Fed will continue to be aggressive with interest rate hikes.
Netflix buys former Army base to create $850 million production studio in New Jersey https://www.usatoday.com/story/entertainment/movies/2022/12/22/netflix-studio-fort-monmouth-new-jersey/10943571002/
The Takeaway: Every firm must decide if it makes or buys part of the production process. Netflix has decided that it is better off owning the production facility rather than renting it. Netflix had been deciding between Georgia and New Jersey. The decision to pick NJ was made easier with a 14.5 Billion economic incentive package provided for film and tv production business. Turns out incentives matter!
The Best Little Unicorn in Texas: Jasper Was Winning the AI Race—Then ChatGPT Blew Up the Whole Game https://www.theinformation.com/articles/the-best-little-unicorn-in-texas-jasper-was-winning-the-ai-race-then-chatgpt-blew-up-the-whole-game
The Takeaway: When you start a business you have to eliminate the biggest threat, the threat of new entrants. Jasper failed to create barriers to entry, and relied on a third party for part of its business. That third party is now a competitor. Doesn't look good for Jasper and its investors.
