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Ulta Beauty (ULTA) continues to trade near all time highs and has some investors wondering what have been the keys to its success. By evaluating the beauty retailer’s customer base and main competition, occam™ provides a snapshot of the beauty industry, where Ulta is getting it right, and what might be in store for the industry in the coming months.

ChatGPT marks the first time in history where a large percentage of the population is knowingly interacting with artificial intelligence. AI has been embedded in our interactions for years, but now it is more overt, and this is already changing the ways in which we interact with technology. occam™ has taken a closer look at how Americans are responding to the moment.

Coffee culture in the United States has never seen more of an explosive presence than it has now; there are at least 50,000 coffee shops in the country and it is the largest market for coffee in the world. This being the case, how coffee chains navigate current economic conditions and consumer behavior as a result will serve as a useful tool to understand wider trends in the industry.

One of the most popular New Year’s resolutions (as well as one of the most abandoned) is increased exercise. The question is, how dramatic will such trends change in a post-pandemic and recessionary environment, if at all.

In earlier years, one of the central issues of the Information Age was how one could properly harness the rapid production of content and curate it it in such a way that it could be commercialized. Then came social media; platforms like Facebook, Twitter, and Instagram have indeed come to define the modern citizen.

The last few months have been something of an acid test for Netflix, launching its Basic with Ads subscription tier after a very rough year. AlphaROC has an early read, and contrary to recent press, our projections have the streaming service back on track.

China has finally put an end to its zero-COVID strategy, reverting factories back to full production. Nevertheless, the damage to iPhone 14 sales has been done. This upgrade cycle will not keep up with historical patterns and demand destruction is likely permanent. The good news, though, is Apple’s grip on their user base is stronger than ever, especially with Gen Zers. For bulls, this is likely worth more than a blip in near term demand.

2022 was the year of the electric vehicle, taking over more than 6% of the auto market from only 1.9% in 2019. As such, most observers seem convinced that Americans are embracing the clean energy transition. Not so fast, says AlphaROC’s data. Investors should be wary of Tesla’s crashing star and the EV industry’s ability to sell what buyers want.

occam’s ML engine uses AI to predict changes in the labor market. Our data suggests job growth remains robust and wage growth remains elevated, but in line with expectations.

Sure, there is no defining exactly what a recession is. What AlphaROC does know is Americans are preparing for a slowdown now, and accordingly, so is Wall Street. In an economy where seeing is often believing, the Fed will have a tough time reversing a recession it set in motion.