👾 Metaverse money

Open-mic night in the metaverse... where the drinks are virtual and the comedians can only roast your avatar. But if the comedy club wants to sell merch or tickets, they'll have to give Meta a huge cut. Last week Meta became the largest company to unveil its metaverse-monetization plans. Facebook’s parent will charge creators a 47.5% fee on sales of digital goodies and experiences sold through its VR platform, Horizon Worlds. Some background:

• Horizon Worlds is kind of like the App Store, but in 3D (because we're not removed from reality enough already). You need its $300 Oculus VR headset to access it.
• Instead of apps made by programmers, there are “worlds” created by everyday users (think: building a Sims house). And you can hop between worlds.
• Avatars play and socialize in VR. Imagine: Latin dance clubs and games where all players can hear each other (feat. screaming kids).
• Meta released Horizon Worlds in December after years of positioning it as a metaverse building block and says it has 300K users so far.

Back to met-onetization… Meta’s decision to take nearly half of creators’ sales is raising eyebrows. It’s significantly more than Apple’s infamous 30% “App Tax” on in-app purchases and downloads, which Zuck himself has criticized. It’s also more than NFT platforms like Sandbox, Decentraland, and OpenSea get — they take between 2% and 5%.

• Horizon’s “creators” include regular people as well as corporations like Wendy’s and its “Wendyverse.” Meta said it’ll test new ways to sell digital accessories and access to exclusive spaces (like: influencer AMAs).

Crypto in the capitol(s)… While the federal government debates how to regulate cryptocurrencies, lobbyists are taking a state-by-state approach. Pro-crypto lawmakers in states like Florida have passed bills that make it easier for the industry to operate. Already this year 150+ crypto-related bills have been proposed in 40 states. But on the federal level, the Biden admin thinks stablecoins (pegged to currencies like the USD) could be the real jumping-off point for digital-currency regulation.

The new silver and gold… are lithium and cobalt, the crown jewels of the electric-vehicle biz. The metals are essential to EV batteries, and their prices are soaring: In the past decade cobalt prices have 3X’d and lithium prices have 18X’d. Now carmakers are securing supply. Last week, Ford reportedly bagged a deal with extraction startup Lake Resources to pull lithium from Argentina, while GM teamed up with mining giant Glencore to nab cobalt from Australia. But supplies are still so low that Tesla’s considering mining its own metals.

The road to net zero... This Earth Day (Friday) high oil prices and the war in Ukraine have boosted global interest in energy independence and sustainability. One option gaining steam: nuclear energy. Last week South Korea (one of the largest fossil-fuel importers) reversed plans to phase out its nuclear projects. In the US, President Biden has already committed $1B to nuclear investments and research. Shares of some uranium companies like NexGen and Uranium Energy, which make the fuel for nuclear power plants, have more than doubled.

Up in the air... It’s a pesky paradox for US airlines: flight demand for everything from domestic beach weekends to European tours is soaring heading into the summer travel season. But so are airlines’ operating costs, like labor and fuel, which spiked 30% over the past month. Airlines have raised fares in a push for profitability, but so far, vacay-hungry fliers don’t seem deterred. Delta said last week that it became profitable again in March. We’ll see if United, American, and Spirit follow suit when they report this week.

• Throwback: Time to limber up: Nintendo is reviving its old “Wii Sports” game for its newer Switch console, banking on the appeal of lo-fi, motion-controlled nostalgia over ultra-immersive AR.
• Sneaky-flation: Companies are getting creative in handling inflation: Pepsi’s shrinking packaging to mask price hikes, GM’s ditching heated seats, and Hilton’s nixing daily housekeeping.
• Upstream: Warner Bros. Discovery is Hollywood’s newest streaming heavyweight: after last week’s $43B media merger, HBO hits like “Euphoria” and Discovery classics like “Shark Week” are under the same roof.

• RTO: Tech companies invested billions in snazzy office space during the pandemic. Now they’re trying to lure workers back with Lizzo concerts, free booze, and more swag.
• BitBoss: Since resigning as Twitter CEO last year, Jack Dorsey has transformed into bitcoin’s “unofficial spiritual leader.” Some crypto fans call his conviction inspiring.
• Build: Impostor syndrome: many of us have felt it in our careers, and in navigating our finances. Watch a money mentor share tips on building financial confidence and wealth.

• Monday: Easter Monday. Tax Day. Boston Marathon. Earnings expected from Bank of America, and JB Hunt
• Tuesday: Earnings expected from Johnson & Johnson, Netflix, Prologis, Lockheed Martin, IBM, Halliburton, and Hasbro
• Wednesday: Earnings expected from Tesla, Procter & Gamble, Abbott Labs, Equifax, ASML, Anthem, CSX, M&T Bank, Baker Hughes, Whirlpool, Lithia Motors, Churchill Downs, and United Airlines
• Thursday: Weekly jobless claims. Earnings expected from AT&T, NextEra, Philip Morris, Charles Schwab, Snap, Blackstone, Progressive, Tractor Supply Co., AutoNation, and American Airlines
• Friday: Earth Day. Earnings expected from Verizon, American Express, and Honeywell
• The weekend: Coachella Valley Music and Arts Festival

Authors of this Snacks own: bitcoin and shares of Apple, GM, Delta, Snap, Twitter, and Tesla

ID: 2022041521292586568424