💸 thanks, boeing
SpiceJet is making bank, Duolingo's new announcement, and one big SpaceX news.
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Read time: 840 words, 4:08 minutes.
This week’s financial tip 💰
Here are four simple ways to start investing:
Set your investment goal.
Calculate a time frame to achieve it.
Diversify your portfolio, always.
Revisit and review to see what's working.
But that's not it. Check out our extensive investment starter pack.
Top Stories 📰
1. SpiceJet is making money by NOT flying planes 🛬
While major Indian airlines are trying to get their passenger business back to normal, SpiceJet is taking quite an unconventional approach — it's making money by not flying planes...all thanks to Boeing.
In the last seven quarters through December, India's second-biggest budget carrier booked 10.9 billion rupees ($150 million) in other income — the same amount that they expect to receive as compensation from Boeing for not flying 13 Max aircraft.
The company also posted its Q4 earnings on Wednesday, trimming its net loss to ₹235.34 crore, compared to ₹807 crore during the same period last year. While its passenger business suffered heavily amid COVID-19, they were able to narrow losses due to its cargo business that "continued to provide much required lifeline" to its entire undertaking.
Since 2019, Boeing was grounded globally after some technical glitch caused two of its 737 Max passenger airlines to crash, killing 346 people.
Why it matters? Despite being the only Indian airline to operate Boeing Max and one of its biggest customers globally ordering 142 additional jets, SpiceJet has not asked the regulators to lift the ban. And while SpiceJet management is confident in getting compensated from Boeing, some auditors don't see this income materializing in the future.
2. Your favourite language learning app is going public 🦉
Duolingo, a Pittsburgh-based language learning app, has filed for an IPO after revealing its more-than-doubled revenues in the first quarter this year. The company was last valued at $2.4 billion after raising $35 million in a fundraising round in November.
Stats that matter:
Revenues of $55.4 million in Q1, up 97% from the same period last year.
Net losses of $13.5 million, a sharp rise from $2.2 million in Q1 2020.
40 million monthly active users.
With over 500+ million downloads, Duolingo is one of the most popular apps on the Play Store and App Store. It offers 95 language learning courses across 38 different languages — from widely spoken languages like French, Spanish, and Italian to lesser-known languages like Navajo, Hawaiian, and Scottish Gaelic.
Additionally, its affordable language learning certificate — Duolingo English Test — is officially accepted in over 2,000 global universities and institutions.
Why it matters? The edtech industry has gained massive momentum as the pandemic increased demand for distance learning courses, and Duolingo is counting on riding that wave.
3. SpaceX's Starlink to provide internet globally by August 🛰️
What started as an ambitious project in 2015 is now finally ready for launch.
Starlink, a low latency, broadband internet system created by Elon Musk's SpaceX, is on track to beam broadband internet everywhere on the planet, except for the north and south poles, starting in August.
Speaking at the Mobile World Congress (MWC) conference on Tuesday, Musk said that he expects Starlink to have around 500,000 users within the next 12 months. So far, the company has launched over 1,500 low-orbit satellites in over 12 countries and is currently in an open beta phase with over 69,000 active users.
Under the beta program, individual users are paying $99 a month for 100Mbps download and 20Mbps upload speeds. However, the project is costly as Musk says that each terminal is costing SpaceX over $1,000.
Musk also expressed bankruptcy concerns, saying that the company needs at least $30 billion investment to keep Starlink in orbit and limit competition from OneWeb, Bharti Group, Telesat, etc.
Why it matters? With Starlink, SpaceX hopes to provide internet access to nearly 5% of the world's population that are not reached by conventional fibre and wireless networks.
You can now pre-order Starlink for $99. Just enter your service address (location) and check for availability.
Don’t Think, Just Click 🖱️
On this day: In 1923, Benjamin Graham founded an investment firm called “Grahar Corporation” with his partner Louis Harris and began his career as the “The Dean of Wall Street.”
Imagine if there was a Postmates for getting your stuff back from your ex. Well, there is one now. Introducing: Postdates.
Beeple, an artist who sold his NFT for $69.3 million in March, is starting a new platform that will auction historic moments in fashion, sports, history, politics, and more.
More Fun Stuff 📜
Sometimes you may feel hesitant towards investing. And while it's completely normal, it can stop you from achieving your financial goals.
Here’s a great thread explaining the types of psychological barriers that stop you from investing and how you can overcome them.
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