Market News 7/5

Markets

Wall Street continued its upward trajectory at the start of the second half of the year, mirroring its performance at the end of the first half. Although the stock market had limited trading hours on Monday (following a closure the previous day), Tesla managed to achieve its most significant daily gains since March. The surge came after the automaker announced record-breaking deliveries for the second quarter. Notably, other electric vehicle companies such as Rivian and Lucid also experienced substantial increases in their stock prices.

Tech

Zuck unleashes his twitter rival

Mark Zuckerberg's potential triumph over Elon Musk could be witnessed sooner than expected, as Meta's new microblogging app called Threads made its appearance on the App Store during the holiday weekend and is set to be released tomorrow. This timing works in Zuckerberg's favor, as dissatisfied Twitter users have been scrambling to find alternatives following Elon Musk's introduction of unpopular updates, such as temporary limitations on daily post views.

Taking a broader perspective, numerous Twitter competitors have emerged in recent years, aiming to entice users away from the Twitter platform. However, Threads, originating from one of the world's largest social media companies, poses the most significant threat to Twitter to date.

In contrast to other platforms like Bluesky or Mastodon, where Twitter users with substantial followings would have to start from scratch, Threads allows Instagram influencers to seamlessly post to their existing followers. This offers a compelling proposition for content creators.

This approach aligns with Zuckerberg's playbook, where Meta has gained notoriety for observing popular features introduced by social media competitors and incorporating them into its own platform. This strategy has proven successful, as evidenced by the integration of Stories (a Snapchat clone) contributing to over 25% of Instagram's global ad revenue. Similarly, Reels, Meta's answer to TikTok launched in 2020, has helped retain users on Instagram, even if they are just repurposed TikTok content. Zuck mentioned in February that Reels' plays doubled within six months due to Meta's AI-discovery engine.

While the success of Threads is not guaranteed, considering Twitter's ability to withstand multiple challenges, it remains uncertain how Instagram users accustomed to a visual app will respond to a text-based product.

Politics

The Court limits government–social media conversations

A significant First Amendment case unfolded as a federal judge in Louisiana issued an injunction prohibiting specific agencies within the Biden administration, such as the FBI and the Department of Health and Human Services, from engaging in discussions with social media companies regarding content that involves "protected free speech." While the government has been increasing collaboration with social media platforms to address issues like combating Covid misinformation and election interference, two Republican attorneys general raised concerns about government censorship, and the judge's ruling seems to align with their viewpoint.

Education

Harvard’s legacy admissions challenged

Shortly after the Supreme Court's ruling that colleges cannot consider race in the admissions process, a legal advocacy group, Lawyers for Civil Rights, retaliated by filing a complaint with the Department of Education. The complaint targets Harvard University's legacy admissions process, which gives preferential treatment to applicants with connections to alumni or donors. The group alleges that this practice violates federal civil rights law by favoring white applicants over applicants of color. Statistics revealed in documents related to the Supreme Court case shed light on the issue:

• Seventy percent of Harvard's legacy and donor-related applicants are white.

• The acceptance rate for legacy applicants at Harvard was 34% between 2009 and 2015, significantly higher than the 6% acceptance rate for non-legacy applicants.

Supporters of legacy admissions argue that nurturing the generational pipeline fosters donations that can be directed towards scholarships, financial aid, and alumni community development. However, critics, including Supreme Court Justice Sonia Sotomayor, contend that allowing legacy preferences without affirmative action exacerbates the imbalance against racial minorities in admissions.

It is important to note that not all elite schools employ legacy admissions. Highly selective private institutions such as MIT, Johns Hopkins, and Amherst College do not consider familial connections in the admissions process. However, many other universities, including the University of North Carolina, incorporate alum connections as a factor in their admissions procedures. Last week's Supreme Court case also challenged the affirmative action program at the University of North Carolina.

Interesting Chronicles

Glizzy Gobbler

Yesterday, Joey Chestnut emerged victorious in the 2023 Nathan's Famous Hot Dog Eating Contest by devouring 62 hot dogs and buns in just 10 minutes. While this falls short of his personal best of 76, it is still an impressive feat, especially considering the disruption caused by a two-hour weather delay in Coney Island, which threw off his usual routine. Chestnut's dominance in the hot dog eating contest is evident as he has won every July Fourth competition, except for one, since 2007. This remarkable achievement solidifies his status as one of the top athletes of his generation. In the women's division, Miki Sudo secured her ninth victory by consuming 39.5 hot dogs.