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Hello, fans of iced latte! Here’s what we’re covering in today’s Brunch:

• When free money ends: Pandemic-era savings are gone, leaving Americans with shrinking financial cushions.

• Market milestones: The S&P 500 hits 6,000, and Tesla’s market cap crosses $1 trillion.

• Elf Beauty’s glow-up: Affordable dupes fuel record-breaking growth while rivals falter.

• Airbnb’s mixed bag: Solid revenue growth, but an earnings miss raises concerns.

• Tinder’s fading spark: Match Group faces declining users while competitors shine.

When Free Money Ends…

During the pandemic, Americans saved like never before, stockpiling $2.1 trillion 👀 in "excess savings" thanks to stimulus checks and limited spending opportunities. But as inflation surged and expenses rose, those reserves began to dwindle. By the end of September 2024, not only have those savings been depleted, but Americans have collectively saved $291 billion less than expected based on pre-pandemic trends. Consumer spending has kept the U.S. economy afloat, but it’s come at the cost of personal financial cushions, leaving many households with less than they started. 👋 💸 

Never-Ending Market Rally

It finally happened—on Friday the S&P 500 crossed the 6,000 mark for the first time, giving everyone a reason to pause and say, “Nice!” 🥳📈 This record-breaking moment reflects a solid economy and investor confidence that just won’t quit.

Meanwhile, Tesla had a big day too, with its market cap climbing back over $1 trillion. Investors seem convinced the recent U.S. election could bring some kind of boost for Elon Musk’s EV empire, though details on that are a bit murky.

For now, the markets are clearly in celebration mode, with these major milestones giving 2024 a solid finish.

Elf Beauty Is Crushing It While Rivals Struggle

Elf Beauty is on an unstoppable streak, logging 23 straight quarters of net-sales growth while much of the beauty industry faces a slowdown. In its latest report, Elf’s net revenues soared 40% year-over-year to $301 million, crushing Wall Street’s expectations. 💄💰 And the real highlight? A jaw-dropping 91% growth in international sales, even as competitors falter in key markets like China.

Compare that to Estée Lauder, whose sales dropped 4% last quarter, with shares recently taking a record-breaking nosedive thanks to competition from cheaper local brands in China. Elf, meanwhile, is thriving by doing what it does best: serving up affordable “dupes” for high-end products that Gen Z (and now millennials and Gen Alpha too) can’t get enough of.

What’s the secret sauce? Elf has mastered the art of budget-friendly beauty with a trendy edge, keeping its products accessible and appealing across generations. In a shrinking beauty market, their motto seems to be: “If it’s working, dupe it.” Clearly, it’s paying off.

Investors Flip-Flop on Airbnb Stock After Earnings

Airbnb had a wild ride after releasing its Q3 earnings. Initially, the stock shot up by 11% in after-hours trading, as traders seemed impressed by the results. But the excitement didn’t stick. The boost quickly fizzled, and shares ended the day in the red. 🫠

The company reported earnings per share of $2.13, just missing Wall Street’s expectations by a single cent. However, revenue was a brighter spot, climbing nearly 10% year-over-year to $3.73 billion, which beat estimates by $15 million. CEO Brian Chesky pointed to Airbnb’s global expansion and new platform features as key drivers of the revenue growth.

Despite the solid sales numbers, investors seemed concerned about the slight earnings miss, signaling worries over cost management. While Airbnb continues to grow its top line impressively, the focus now shifts to whether it can tighten its spending to match investor expectations. For now, the reaction reflects a mix of hope and hesitation.

Tinder’s Losing Its Swipe Appeal

Match Group’s struggles continue, with paying users down 3% in the latest quarter, marking eight consecutive declines. 🫶 📉 Tinder saw a 4% drop, pulling direct revenue down 1%, while Hinge was a bright spot with 21% growth in payers and a 36% revenue boost.

The company expects flat sales in Q4, below Wall Street estimates, sending shares down 18%. Bumble reported slight gains in paying users but saw revenue dip, while Grindr, showing steady growth, reports earnings next. Combined, the three dominate 85% of the online dating market.