June 3, 2020
Image: Andika Wardana, Pexels
Good morning! This Wednesday, Facebook makes another big bet on Asia, why being European might be an advantage right now, and what's going on with police-tech stocks. Want Index in your inbox each morning? Subscribe here.
As of 4:45 a.m. PDT: Nasdaq Futures: 0.31% | Euro 600: 1.13% | Nikkei: 1.29% | Hang Seng: 1.37%
Facebook and PayPal have invested in Gojek, the Indonesian super-app announced last night. Along with Facebook's recent Jio investment, it's a clear sign that tech is hyper-focused on Asia.
This is more evidence that Facebook is pursuing a partnership model in Asia, rather than its Western approach of full-on domination.
It's not all about Facebook: The PayPal deal is interesting too.
That should help both companies get ahead of SoftBank-backed Grab, Gojek's fiercest rival.
It's probably not the best time to be in the travel tech industry. But for Jannik Lawaetz, CEO of Danish startup LuggageHero, it could be worse.
It's not like things are perfect over in Europe, though. LuggageHero's revenue has evaporated, with a dearth of travelers looking to use its platform to find luggage storage.
Part of the reason for his optimism is the company's recent crowdfunding round, which raised almost $450,000.
In a weird way, LuggageHero also might have benefited from lockdown.
Police-tech stocks soared Monday amid expectations that civil unrest might make the police need more body cams and communications equipment. But those same stocks fell quite dramatically throughout Tuesday. That could mean any number of things. Perhaps investors think normality will return sooner than they did, or maybe they're betting that the police will see some of their funding disappear. Or the professionals might just be selling off after a wave of unexpected interest from retail investors pushed prices well above any semblance of normality. Gun stocks, for what it's worth, are still up. Stay safe, everyone.