__It's going Dow...__ and Wall Street yelled "timber" (thanks, Ke$ha). The industrials-heavy __[Dow](https://learn.robinhood.com/articles/13urVTf3GSQYdsr7Eq5fHL/what-is-the-dow/)__ index fell 1.4% yesterday, after closing last week at a record high. On Monday, the techy __[Nasdaq](https://learn.robinhood.com/articles/1GXPrecRfkSNp0aBblBSsL/what-is-the-nasdaq/)__ plunged  2.5%, dragging the whole market down. What's going on:

- __A widespread surge in prices__ is [spooking](https://www.cnn.com/2021/05/11/investing/dow-stock-market-today-shortages/index.html) investors, inspiring the "i word" (inflation). Inflation =  a general rise in the price level of an economy. Inflation concerns have lingered for months, but hit the market yesterday. 
- __Why investors worry:__ Spiking prices can decrease the purchasing power of a dollar (aka: your $1 gets you less). Investors are worried the Fed will raise interest rates sooner than expected to fend off inflation. 

__The entire drive-thru just got pricier...__ including the car. Supply chain and labor shortages are driving up prices of raw materials and consumer goods. Meanwhile, the Fed has added trillions to the money supply through stimulus packages and bond-buying sprees, adding to concerns. Some areas seeing notable spikes:

- __Raw materials__ and commodities like copper, steel, lumber, and corn, are hitting [record](https://www.cnn.com/2021/05/09/investing/stocks-week-ahead/index.html) prices as production quickly revs up.
- __Consumer packaged goods__  giants like __[General Mills](https://robinhood.com/stocks/GIS)__, __[Kimberly Clark](https://robinhood.com/stocks/KMB)__, and __[Smucker's](https://robinhood.com/stocks/SJM)__ [hiked](https://snacks.robinhood.com/newsletters/eto2AkKAyWnKqhapU8qK1/articles/62H1VZQ7fErOkYBzrT8WvO/) prices (on everything from diapers to peanut butter) for the first time since 2018, citing higher materials and production costs. 
- __Car prices__ hit [records](https://snacks.robinhood.com/newsletters/xxzKq0L1JKq9mrKPFzS8t/articles/4xe3n6XauflL6FPNIZ6knM/) thanks to the [Great Chip Shortage](https://snacks.robinhood.com/newsletters/31E6cwe7ndD6pM602Hiv9R/articles/3Nn6tVCu3oGQg2XsCbQmyc/), which is shutting down factories.
- __Poultry prices__ are at all-time [highs](https://www.wsj.com/articles/chicken-shortage-sends-prices-soaring-and-restaurants-cant-keep-up-11620302400?mod=business_lead_pos5), as demand for fried chicken sandwiches soars. Chicken nugget icon __[Tyson](https://robinhood.com/stocks/TSN)__ just [warned](https://www.thestreet.com/investing/tyson-foods-slides-ceo-sees-substantial-inflation-pressures) that "substantial" inflation pressures would hurt its profit margins. 


_The entire drive-thru just got pricier [Foodcollection via GettyImages]_

Pricey

__Everyone's asking: temporary or trend?...__ Is this a one-time price increase as the economy rebounds — *or*, the start of higher yearly inflation? Economists expect these rising costs are temporary. But if they become a trend, that could push the Fed to hike interest rates. Higher rates can make bonds and savings accounts more attractive than riskier assets (like stocks). They also increase the cost of borrowing, which can dampen growth. So far, the Fed has stayed committed to its low-rate policy. But investors worry rising prices could change that.

Falling stocks, rising prices, and inflation concerns (feat. fried chicken sandwiches)

__"Give my regards to Broadway...__ remember me to Herald Square!" (Macy's mood right now). __[Macy's](https://robinhood.com/stocks/M)__ flagship Herald Square location is one of the largest department stores in the world (think: 50 departments across 10 floors). Now, the mall OG wants to go even bigger — despite a rough, losing year that spurred it to [close](https://fortune.com/2021/01/05/macys-closing-45-stores-turnaround-plan/) dozens of stores. The ambitious [proposal](https://www.macysinc.com/news-media/press-releases/detail/1681/macys-inc-unveils-vision-for-renewing-its-flagship): 

- __Step 1: Transform Herald Square.__  Macy's is commiting $235M to improve the Herald Square subway stations, and “transform Herald Square and Broadway Plaza into a modern, car-free pedestrian-friendly urban space for New Yorkers and visitors.” *Bold*. 
- __Step 2: Put an office on it.__ Macy's wants to build a big commercial office tower on top of its Herald Square store (which can only happen after the area is rezoned — Step 1). Macy's says the proposal would support ~16K jobs.

__Not your typical "future of work"...__ For all the talk about permanent WFH, hybrid workspaces, and hologram colleagues, companies are still investing in office space. NYC [expects](https://www.nytimes.com/live/2021/05/10/business/stock-market-today?campaign_id=4&emc=edit_dk_20210511&instance_id=30579&nl=dealbook&regi_id=83712167&segment_id=57737&te=1&user_id=05114d149fce45660cf01aea64f5af7e#macys-herald-square) a boom in new office jobs, forecasting a return to pre-pandemic office employment  by the end of the year. NYC would get $250M in new tax revenue from the proposal. Macy's would get prime corporate real estate (that it can charge sky-high rent for).  

Shop

__Lean into your strengths (*creatively*)...__ Macy's understands physical retail, and it knows where tourists want to shop (Buddy the Elf worked at its Herald Square location). Now, Macy's is leaning into its strengths — boldly and creatively. Coincidentally, it was also one of the few departments stores that didn't go corona-bankrupt (see: JCPenney, Lord Taylor, Neiman Marcus). Last quarter, it even managed to turn a small profit. We'll see if "[revenge spending](https://snacks.robinhood.com/newsletters/2lFqgJt0AfN3zJsbqdxm7m/articles/17MF35F4AhEUwPGvF1qKzt/)" boosted its sales when it reports earnings next week.

After dozens of closures, Macy's has a bold plan to turn its flagship store into an NYC destination 

Dow Jones

S&P 500

Nasdaq

Bitcoin

💰 Rising prices, falling stocks

__Screw it, we'll do it...__ on Zoom. In 2020, concert giant __[Live Nation](https://robinhood.com/stocks/LYV)__ saw its sales plunge 84% from 2019, because the nation was 0% live. *Last* quarter, Live Nation's sales were down 79% ("live factor" = still low). It's a sad tale... but Live Nation isn't crying to The Weeknd in bed. 

__Save your tears for another day...__ Live Nation stock jumped 4% yesterday after a Jefferies analyst [called](https://www.cnbc.com/2021/05/10/jefferies-upgrades-live-nation-to-buy-says-2022-will-be-a-big-year-for-the-return-of-concerts.html) it a pure-play reopening stock. Despite the massive sales plunge and big losses, Live Nation shares are trading higher *now* than they ever were *pre*-pandemic. Ariana Grande fans are having withdrawal, and Wall Street is upbeat about Live Nation's reopening potential, for two reasons:

- __Bad Bunny (2022):__ Live Nation is seeing the effects of "significant" pent-up demand for concerts, saying bookings are seriously booming. It has already booked twice as many shows for 2022 as it did in 2019.
- __Live (From Home):__ Last year, Live Nation invested heavily in streaming. It took a majority stake in livestreaming platform __Veeps__, outfitted 60 of its 289 concert venues with livestream tech, and announced a virtual concert series that launches this month. 

_Dreaming of The Weeknd 2022 [Flashpop/DigitalVision via Getty Images]_

Live

__Live Nation could be a "slingshot stock"...__ We're calling it slingshot potential. "Recovery stocks" are companies that could rebound to pre-pandemic levels. "Slingshot stocks" go a step further — they could *surpass* pre-pandemic levels. Live Nation says its concerts are returning stronger than they were in 2019. Plus, it now has a new source of sales to pad its balance sheet: live streaming. Another potential slingshot stock is __[Carnival](https://robinhood.com/stocks/CCL)__, which [says](https://www.travelandleisure.com/cruises/carnival-cruises-booking-numbers-2022#:~:text=Had%20in%202019-,Carnival%20Says%20It%20Already%20Has%20More%20Bookings%20for%202022%20Than,Carnival%20CFO%20David%20Bernstein%20said.) it already has more cruise bookings for 2022 than it did in 2019. 


Live Nation had a terrible quarter, but its stock soared on "slingshot" potential

__Like a bad LimeWire download...__ except way worse. Colonial is the largest fuel pipeline in the US — and it just got majorly cyberhacked. Colonial is what the East Coast runs on (besides Dunkin'): its 5.5K-mile system [carries](https://www.wsj.com/articles/cyberattack-forces-closure-of-largest-u-s-refined-fuel-pipeline-11620479737?mod=hp_lead_pos1&mod=article_inline) nearly half of the gas and diesel consumed on the East Coast. Over the weekend, that car fuel and heating oil stopped moving.

__SaaS's evil twin...__ Colonial was hit by a ransomware cyberattack, forcing it to temporarily halt all pipeline operations. Ransomware = hijacking computer systems and demanding payment for the release of the "hostage." The culprit is a hacking group called __DarkSide__ (makes sense). DarkSide is the evil alter ego of a software startup. Instead of kombucha, it drinks companies' tears.

- __The motive:__ Instead of selling Software-as-a-Service, DarkSide sells RaaS (Ransomware-as-a-Service) to criminals, who carry out the attacks. DarkSide [says](https://www.cnbc.com/2021/05/10/hacking-group-darkside-reportedly-responsible-for-colonial-pipeline-shutdown.html) it has no political motives, and is purely driven by $$$. 
- __The fallout:__ If the pipeline system is down for more than a few days, consumers will likely start to feel the pain. Think: rising gas prices and/or shortages. 
- __The PR move:__ DarkSide is now implementing "moderation" checks to make sure its clients don't debilitate companies that could cause societal problems. So thoughtful. 


Hack

__Cyberattacks aren’t only a threat to cyberspace...__ they're increasingly targeting critical infrastructure. Think: pipelines, power grids, hospitals, and schools. These "physical" attacks hurt their targets, but they also pose a wider threat to public security. For example, hackers could hijack pipelines' control valves and sensors. Software runs almost everything, so the risk is widespread. That's why government agencies and corporations are investing more heavily in tools to fight ransomware attacks. That could be a boon for cybersecurity companies like __[FireEye](https://robinhood.com/stocks/FEYE)__, __[Palo Alto Networks](https://robinhood.com/stocks/PANW)__, __[Zscaler](https://robinhood.com/stocks/ZS)__, and __[Fortinet](https://robinhood.com/stocks/FTNT)__. 

The US' largest fuel pipeline gets hacked by "DarkSide" (gas could get pricier)

🎸 Live Nation's slingshot moment

__Much wow, such coin...__ Crypto "mainstreamification" has reached a level that goes far beyond just Bitcoin. [14%](https://www.gemini.com/state-of-us-crypto) of the US population now invests in cryptocurrency, and American crypto owners could *double* in 2021. This year, __[Bitcoin](https://robinhood.com/crypto/BTC)__ has nearly 2X'd in value – and altcoins have seen even bigger rallies: __[Ethereum](https://robinhood.com/crypto/ETH)__ is up ~400%, and __[Dogecoin](https://robinhood.com/crypto/DOGE)__ has soared *13,000%*. According to a Gemini [survey](https://www.gemini.com/state-of-us-crypto): two-thirds of US adults who don't own crypto are "crypto curious.” ~60% of people who *do* own crypto rate their knowledge level as low.

__Not just Elon...__ A few factors seem to be contributing to "coin crowding" — aka: people pouring into various crypto coins. 

- __Retail investors__ have more access to crypto than ever through commission-free brokerages and crypto exchanges. Savings have been padded by stimulus checks, and many are sitting at home with free time. 
- __Institutional investors__ like banks, hedge funds, and corporations have been investing in Bitcoin — some even see it as a hedge against inflation. In March, __[Tesla](https://robinhood.com/stocks/TSLA)__ [said](https://www.reuters.com/business/autos-transportation/tesla-says-bitcoin-investment-worth-248-billion-2021-04-28/) its Bitcoin investment was worth $2.5B.
- __Cultural trends:__ Celebs like Elon, Lil Yachty, and Jake Paul have promoted Bitcoin and altcoins (see: Elon's SNL Doge [skit](https://www.youtube.com/watch?v=x5RCfQyTDFI)). Crypto convos are dominating social media, from Clubhouse to subreddits. And Bitclout "influencer coins" [are](https://www.benzinga.com/markets/cryptocurrency/21/04/20747194/how-bitclout-aims-to-let-people-bet-on-twitter-influencers-using-creator-coins) apparently a thing. 
- __Expanded uses__ of crypto and blockchain tech are fueling excitement. __[Paypal](https://robinhood.com/stocks/PYPL)__ is letting users shop at 26M merchants with crypto. Developers are building "[decentralized finance](https://snacks.robinhood.com/newsletters/2ljZrAfkicFWeqM3uRyEVF/articles/7pjZAtHAv8QEKdd9xnkN1R/)" apps on the  Ethereum blockchain — which is also used to mint those [viral](https://snacks.robinhood.com/newsletters/4CMp4ZxaXNDVcia7phbTi8/articles/2dLrCxa5wrlsuga9kmuKtF/) NFTs. 


_Mood: watching Elon and Miley on SNL [DigitalVision via GettyImages]_

Crowd

__“Coin crowding” is here...__ In January, Bitcoin made up 70% of total crypto value (which was $1T). As altcoins like Doge and Ethereum have rallied, Bitcoin now makes up less than 50% of crypto market cap — which has doubled to over $2T. Now, smaller altcoins like DigiByte, VeChain and SafeMoon are gaining traction. But the Fed just [warned](https://www.wsj.com/articles/covid-19-still-among-major-risks-to-financial-stability-fed-says-11620331219) that asset prices are vulnerable to significant declines if investor sentiment shifts. And it's possible that out of hundreds of coins, only a few might survive over time. It's a new, culturally-driven phenomenon with high volatility risk – and the long-term outcomes are still unclear. 

"Coin Crowding" has arrived — and it's not just a Bitcoin trend

__Mickey's back...__ __[Disney](https://robinhood.com/stocks/DIS)__ reports earnings on Thursday, two weeks after The Happiest Place on Earth reopened in CA. For a year, Disney has been a tale of two earnings: sales of its profit puppy Parks & Experiences [plunged](https://snacks.robinhood.com/newsletters/7kUCvPmXZ2AB4lOFC3m77C/articles/1FLj6gpv6tXolPZxSGju70/), because the only park we experienced was in a car. Meanwhile, streaming thrived thanks to Disney+, which hit 100M subs (half a Netflix). Investors want to know if Mickey can keep up strong subscriber growth. 

__Google Meet me in Miami...__  __[Airbnb](https://robinhood.com/stocks/ABNB)__ doesn't do room service, but it's worth more than __[Marriott](https://robinhood.com/stocks/MAR)__ and __[Hilton](https://robinhood.com/stocks/HLT)__ *combined* (its IPO was a bigger [blockbuster](https://snacks.robinhood.com/newsletters/5bz9qW2WXWRwJlMpsAJeyn/articles/3hbeTbZoN5WvRJteko4DaC/) than *Wonder Woman*).  Airbnb was resilient last year, despite the travel-pocalypse. US travel is picking up, and the work-from-anywhere life has you Zooming in from forest cabins. Airbnb's "single priority" now is prepping for a travel rebound. In Thursday's earnings, we'll see if that's panning out. 


Events

Coming up this week...

__Bad timing...__ Last week, __[Pfizer](https://robinhood.com/stocks/PFE)__ and __[Moderna](https://robinhood.com/stocks/MRNA)__ reported chunky Covid vaccine earnings. Also: the Biden admin [supported](https://snacks.robinhood.com/newsletters/7smONUNjrn1RF9LBhEgLe7/articles/4GUGqbhYGdsfyMcKDiqUuK/) a proposal to temporarily waive IP protections for Covid-19 vaccines. Vax-makers' recipes would be public. Pharma companies [say](https://snacks.robinhood.com/newsletters/7smONUNjrn1RF9LBhEgLe7/articles/4GUGqbhYGdsfyMcKDiqUuK/) that *won't* help curb rising global Covid cases short-term, because of production challenges. Pfizer's CEO said patent-sharing would discourage innovation. On Friday, EU countries [pushed back](https://money.usnews.com/investing/news/articles/2021-05-07/eu-split-on-vaccine-waiver-idea-unlikely-to-take-clear-stance) on the proposal, too.

__Broke the streak...__ After falling for nearly 12 months straight, the US unemployment rate unexpectedly [jumped](https://www.wsj.com/articles/april-jobs-report-unemployment-rate-2021-11620332156) to 6.1% in April. 266K jobs were added last month — economists were expecting *1M* (womp). Millions of Americans are unemployed, but companies in industries like construction, manufacturing, and restaurants still [can't](https://www.wsj.com/articles/millions-are-unemployed-why-cant-companies-find-workers-11620302440?mod=hp_lead_pos1) find enough people to hire. Potentially holding workers back: child-care burdens, Covid fears, and boosted unemployment benefits.


Zoom Out

Stories we're watching...

- __[Ban](https://snacks.robinhood.com/newsletters/xxzKq0L1JKq9mrKPFzS8t/articles/S1MoP96NVK4Fxs70nHlr3/):__ __FB__'s Oversight Board delivered a precedent-setting Trump ban decision. Buuut: FB still needs to decide whether to *permanently* ban Trump. 
- __[App](https://snacks.robinhood.com/newsletters/5mrz8IgUB1Bjuc9ILsHQOj/articles/4GARoezVkzR6VmTXvlwEa1/):__ The heated __Epic__-__Apple__ trial kicked off last week — it could be a make-or-break moment for Apple's iPhone app control.
- __[Eats](https://snacks.robinhood.com/newsletters/7smONUNjrn1RF9LBhEgLe7/articles/2aGMAsFF7RhrjGK8g17FCy/):__ __Uber__ scored record quarterly bookings, because it's a food delivery company now. Eats = more than 60% of Uber's biz. 

ICYMI

Highlights from last week...

👩‍🎤  Crypto "coin crowding" 

__*Another one*...__ (DJ Khaled). On Wednesday, __[Pfizer](https://robinhood.com/stocks/PFE)__ [delivered](https://snacks.robinhood.com/newsletters/2ljZrAfkicFWeqM3uRyEVF/articles/4ux3nBcOvqjyl5IY5JmZY5/) the first Covid-19 vaccine profit. Yesterday,  __[Moderna](https://robinhood.com/stocks/MRNA)__ delivered its first profit — *period*. 

- __$1.7B:__ Moderna's Covid vax sales from January to March — a major glow up from last year, when it made just $8M in *total* revenue. 
- __$1.2B:__ Moderna's big-shot profit. Pfizer did double Moderna's vax sales, but its vax profit is estimated at just $900M.

__Terrible earnings timing...__ On Wednesday, the Biden admin [announced](https://www.wsj.com/articles/u-s-backs-waiver-of-intellectual-property-protection-for-covid-19-vaccines-11620243518?mod=article_inline) it supports a WTO proposal to temporarily waive companies' intellectual property protections for Covid-19 vaccines, to help end the pandemic. The US was originally opposed, saying IP protection provides a key incentive for innovation. If the proposal passes, others could develop shots using public patents (without getting sued). Vax-makers' recipes would be open to all. 

- __The reasoning:__ New Covid cases are hitting global records. But as of mid-April, 87% of vax doses distributed went to wealthy countries. The WTO thinks sharing IP would allow poorer nations to develop vaccines.
- __The investor response:__ Moderna shares have plunged 10% since Wednesday, and Pfizer shares dropped 5%. J&J, which isn't taking vax profits, barely budged. 
- __The company response:__ Pfizer's CEO said patent-sharing would discourage companies from developing products for the next pandemic. The two who decided to profit from the vaccine (Pfizer and Moderna) were the fastest to get FDA-authorized. Moderna said the proposal won't affect it because it's *already* not enforcing Covid patents during the pandemic. 


__Recipes are valuable, but don't forget the chef...__ and the ingredients. Patents don't come with the ability to produce complex drugs at scale. Pharma companies say public patents won't help curb the pandemic short-term, because of the challenges that come with producing Covid vaccines. Including: setting up complex factories, securing scarce raw materials, and hiring skilled employees to operate new tech. Even Moderna and Pfizer haven't been able to scale fast enough to meet demand. 


Moderna drops its first profit, and the US (potentially) drops Covid-19 vaccine patents

__Call an XL...__ for the big stacks. __[Uber](https://robinhood.com/stocks/UBER)__'s bookings reached an all-time high of $19.5B last quarter, up 24% from last year. But don't call it a ride-hailing company — it's a food delivery company now. 

- __Uber's "core" rides biz__ saw bookings plunge 38% last quarter. 
- __Uber's food delivery__ bookings more than doubled from a year earlier. 
- __Wild stat:__ *Uber Eats now accounts for more than 60% of Uber's biz*. 

__Pizza > People...__ If you thought your ride to Girls' Night got pricier, that's because it did. Uber and Lyft are dealing with driver shortages. Prices are rising as riders return, while some drivers still prefer delivering pizza over (potentially contagious) people. Now, both are offering drivers incentives to return as demand picks up. 

- __Uber is already prepping__ for the decline of the delivery life. Last week, it [rolled out](https://www.wsj.com/articles/uber-tweaks-app-to-further-integrate-food-with-rides-11619622303?mod=article_inline) new features to further merge Eats with rides in-app. 
- __Uber + Udon:__ You can now pick up Uber Eats meals en route to your Uber destination (#inception). Or get Eats delivered by your home ETA. 


_"Your Uber and Udon has arrived" [E+ via GettyImages]_

Eats

__The gig cloud still looms...__ Despite Uber's food delivery win, total sales *fell* because of new driver benefits in the UK, where it was forced to [reclassify](https://snacks.robinhood.com/newsletters/1pA68KIKChD9WMr3DJ2OMP/articles/2sYAJhcq3cv7kMzg2aLfHE/) gig drivers. *Aaand*: it's still unprofitable. Last week, US Labor Secretary Walsh [said](https://www.marketwatch.com/story/gig-work-could-change-under-bidens-labor-secretary-and-heres-how-11620141865) he believes gig workers should be classified as employees in many cases. This week, the Biden admin said it's blocking a proposal that would make it easier for gig companies to continue classifying workers as independent contractors. Down the road, these stances could put the gig economy in danger ([again](https://snacks.robinhood.com/newsletters/7jMUu1TK8PviqbKCFjQhjC/articles/f06IOakKwXbXOcwTVNbjX/)).


Uber scores record bookings thanks to Eats (but it's prepping for the post-delivery life)

💉 Vax patents for all

__When FB "Memories" resurfaces a terrible pic...__ Flashback to January: Big Tech [excommunicated](https://snacks.robinhood.com/newsletters/3vjZTHwR8FyWtcKOyUe8FX/articles/2tcwC8xHTx2NyZNIYGWn9l/) Donald Trump, after he was criticized for stoking the storming of the US Capitol. __[Twitter](https://robinhood.com/stocks/TWTR)__ permanently banned Trump and removed all of his tweets. __[Facebook](https://robinhood.com/stocks/FB)__ suspended his accounts temporarily — and potentially indefinitely. *About that...*

- __FB punted the decision to its "Oversight Board,"__ a 20-person independent body that makes binding decisions on content moderation. It includes law school professors, a Nobel Peace Prize Laureate, and... the former Prime Minister of Denmark.
- __The Board decided__ that FB was justified in suspending Trump, but didn’t explain if/why the ex-POTUS should be permanently banned. Also: that it was [inappropriate](https://oversightboard.com/decision/FB-691QAMHJ/) for FB to impose the "standardless penalty" of indefinite suspension. 

__Call it "scapeboard"...__ FB punted the weighty decision to the board. The Board punted it right back, giving FB six months to determine whether Trump should be permanently banned and why. But even without a final decision...  

- __The Board's support of the restriction sets a precedent__ for how FB (and even other social apps) may be expected to react to world leaders going forward.
- __Facebook has been scrutinized__ for not taking action when leaders incite violence, [including](https://www.wsj.com/articles/facebook-hate-speech-india-politics-muslim-hindu-modi-zuckerberg-11597423346) allowing Indian politicians' posts saying Rohingya Muslim immigrants should be shot. 
- __Twitter has been criticized__ for [not](https://www.cbsnews.com/news/twitter-world-leaders-accounts-public-feedback/) labeling or removing tweets from Iran's Supreme Leader calling for the annihilation of Israel, and violent posts from other world leaders.


Banned

__A few (tech-annointed) people have immense power...__ to define online speech policy for billions. But at least FB's Oversight Board is independent — more than can be said for other social giants. Nearly half of Earth’s population uses FB, but 20 people are making binding decisions on its most important moderation policies. The alternative: an unknown group of FB execs deciding. Twitter, with its ~5K employees, makes decisions internally for its ~200M users. But it recently [launched](https://blog.twitter.com/en_us/topics/product/2021/introducing-birdwatch-a-community-based-approach-to-misinformation.html) a community-run moderation program. Going forward, we might see more efforts to establish independent moderation groups.

Facebook's Oversight Board delivers a Trump ban decision (plus, one non-decision)

__It goes down in the GM...__ and up in the earnings. __[GM](https://robinhood.com/stocks/GM)__ drove home $3B in profit for the January to March quarter, up from ~$300M in the same quarter last year. It was nearly a record for the OG carmaker, despite a global chip shortage that's been shutting down car factories. 

- __Chip shortage = fewer cars__ = *higher prices*. The inventory crunch has led to record car prices. And don't expect a generous promo from dealership Bob. 
- __$37K:__ The average price paid for a new vehicle last quarter. Meanwhile, the average discount fell 20%. That seriously padded GM's profit. 

__Law & Order: SUV...__ GM's monster profit was also [fueled](https://www.wsj.com/articles/gm-affirms-profit-outlook-despite-chip-shortage-woes-11620216795?mod=hp_lead_pos3) by redesigned SUVs, including the Chevy Suburban and the Cadillac Escalade. GM took a few pages from Delta — it's going full "Business Class on Wheels" with these models.

-  __Think:__ Premium second-row legroom and HD touch-screens for the seven kids in the back. New Escalade displays have "twice the pixel density of a 4K TV." Throw in hot towels, and go LA-London nonstop. 
- __These big babies have routinely sold for *$100K*__ since they arrived last year, though some start at around only ~$52K. For GM, the add-on perks justify the extra greens ($$$).
- __Now GM is doubling down on e-SUVS, too:__ It just unveiled a second (decked-out) version of the Hummer EV SUV.

_A look inside the new Cadillac Escalade  [E+ via GettyImages]_

__GM smells "price insensitivity" signals...__ Price sensitivity = the degree to which a product's price affects purchasing decisions. Price *insensitivity* = the opposite. GM knows that when you roll into the dealership asking for a $70K Escalade, you could probably pay $90K to upgrade. Extra money for dealers means GM can mark up prices – and boost its profit. Price *sensitivity* is why GM has [only](https://gmauthority.com/blog/2020/10/general-motors-has-just-three-sedans-left-in-the-u-s-market/) three sedans left on the US market (that Chevy Malibu isn't a profit puppy). 


GM leans into the "business class on wheels" life as profit soars

🗳 Facebook's Trump dilemma  

__LinkedIn fodder...__ American pharma giant __[Pfizer](https://robinhood.com/stocks/PFE)__ has notched a few notable firsts: the first Covid vaccine authorized in the US, the first mRNA vaccine *ever* authorized for human use, and now... the first Covid vax profits. The Pfizer-__[BioNTech](https://robinhood.com/stocks/BNTX)__ vax is also the [most](https://covid.cdc.gov/covid-data-tracker/#vaccinations) administered Covid vaccine in the US: 131M Americans have received Pfizer's shot, 109M got __[Moderna](https://robinhood.com/stocks/MRNA)__'s, and ~8M got __[J&J](https://robinhood.com/stocks/JNJ)__'s. And it shows...

- __$3.5B:__ Pfizer's Covid vax sales last quarter, nearly 25% of its total  sales (and its biggest source of revenue). It splits vax sales with __BioNTech__.
- __$26B:__ Pfizer's expected vax sales *this* year, up from its previous estimate of $15B. That's nearly 40% of its forecasted *total* sales. 
- __$900M:__ Pfizer's [estimated ](https://www.nytimes.com/2021/05/04/business/pfizer-covid-vaccine-profits.html)pretax vaccine profit last quarter. Unlike J&J and __[AstraZeneca](https://robinhood.com/stocks/AZN)__, Pfizer and Moderna aren't forgoing vax profits. 

__Zoom out...__ Some countries have vaccinated large swaths of their populations (the US has vaxed 44%, and Israel has vaxed 60%). But globally, Covid cases are still rising. India and Brazil now account for [half](https://www.voanews.com/covid-19-pandemic/who-india-brazil-account-half-new-global-covid-19-cases) of new cases. India, where cases just crossed 20M, is [suffering](https://www.bbc.com/news/world-asia-india-56345591) a shortage of vaccines, oxygen, and hospital beds. Brazil is [setting](https://www.nytimes.com/2021/03/03/world/americas/brazil-covid-variant.html) death toll records, and its healthcare system is collapsing.

- __The Pfizer vax is becoming more available__ around the globe, but it's mostly reaching wealthy countries — which, as of mid-April, had secured *~87%* of the doses distributed worldwide.
- __There's been some vaccine "comparison shopping,"__ with some on TikTok and other apps [touting](https://www.theatlantic.com/technology/archive/2021/04/pfizer-gang-and-sadness-vaccine-culture/618755/) the Pfizer vaccine as a "status vax." That could help Pfizer's brand, but may [promote](https://qz.com/1990168/consumer-attitudes-about-pfizer-jj-and-other-covid-19-vaccine-brands/) a negative/false public health perception. See: [CDC guidelines](https://www.cdc.gov/coronavirus/2019-ncov/vaccines/faq.html?s_cid=11236:should%20i%20get%20the%20covid%20vaccine:sem.ga:p:RG:GM:gen:PTN:FY21).


__This is just the beginning...__ of Pfizer's vaccine journey (and its windfall). Experts are saying annual vax booster shots will likely be required. Pfizer is already making moves to deliver more shots: it's testing a third dose, and is working to make its vax easier to store, which could boost global distribution. It's also trying to fast-track vax authorization in India, and for 12- to 15-year-olds in the US. And it plans to file for the first *full* FDA approval this month, which would allow it to market the vax directly to consumers.


Pfizer delivers the first Covid vaccine profit  — and it's likely just getting started 

__Satoshi is *shaking*...__ In January, __[Bitcoin](https://robinhood.com/crypto/BTC)__ made up 70% of total crypto value — yesterday, Bitcoin's share of crypto market cap [fell](https://www.bloomberg.com/news/articles/2021-05-03/bitcoin-s-crypto-dominance-falls-as-ether-and-other-coins-soar?sref=q3KSFp38) *below 50%*. That's partly thanks to __[Ethereum](https://robinhood.com/crypto/ETH)__ (technically: Ether), the second-largest cryptocurrency. Ether hit a record $3.4K yesterday, and has rallied ~300% this year. Like Bitcoin, Ether is traded as a digital currency. But it has key differences...

- __No cap...__ Literally. Unlike Bitcoin, which is capped at 21M coins, Ethereum currently has no total supply limit. 
- __App-focus:__  Ether powers Ethereum, a blockchain technology that developers use to build "decentralized apps" (#dapps). 

__dapps = real term...__ Similar to how iOS and Android are used to build smartphone apps, Ethereum's platform is used to build dapps.  Unlike Instagram or PayPal, these decentralized apps aren't controlled by a single authority. Instead of living on Facebook's servers, a decentralized app could be hosted across thousands of computers across the world. When you upload a YouTube video, it's stored on Google's servers and Google can take it down. With Ethereum, control is decentralized. 

- __DeFine:__ Ether's rally has been [attributed](https://www.cnbc.com/2021/04/29/bitcoin-btc-ethereum-eth-cryptocurrency-price-hits-record-high.html) in part to a growing number of developers building "decentralized finance" (DeFi) apps on Ethereum. 
- __DeFi:__ DeFi apps go beyond just buying/selling crypto. They replace financial "middlemen" like banks and credit card companies, to facilitate *direct* loans and other transactions with Ether.


_"Take a seat, Bitcoin... Ethereum is back" [Simon D. Warren/The Image Bank via Getty Images]_

__Crypto mainstreamification is going beyond coins....__ The crypto spotlight has expanded from Bitcoin to other coins like Ether and __[Doge](https://robinhood.com/crypto/DOGE)__. But there's also growing excitement about the *applications* of crypto and blockchain tech (like: DeFi apps). NFTs, the collectible digital assets that have gone [viral](https://snacks.robinhood.com/newsletters/4CMp4ZxaXNDVcia7phbTi8/articles/2dLrCxa5wrlsuga9kmuKtF/) recently, mostly live on the Ethereum blockchain. Also: The European Investment Bank just issued $120M worth of bonds on the Ethereum network. 


Ethereum rallies to a record, stealing Bitcoin's spotlight: we're talking crypto applications

💰 Move over, Bitcoin

__Battle Royale...__ But instead of crossbows, these warriors have  briefcases and JDs. Yesterday was Day #1 of the landmark trial over __[Apple](https://robinhood.com/stocks/AAPL)__'s App Store dominance. The lawsuit was brought by Fortnite-maker __Epic Games__, and could seriously damage Apple's app-power. It all started in August last year, when...

- __Shot #1:__ Epic added its own in-app payment system to bypass the "App Tax" — the ~30% cut of in-app purchases, downloads, and subs that Apple and __[Google](https://robinhood.com/stocks/GOOG)__ take across apps in their stores. 
- __Shot #2:__  Apple and Google said "not today," expelling Fortnite from their stores for rule-breaking.
- __Shot #3:__ Epic filed lawsuits against both tech giants, and launched a loud PR campaign (see: [Nineteen-Eighty Fortnite](https://www.youtube.com/watch?v=euiSHuaw6Q4)). A date for the Google trial hasn't been set yet.

__Bring these lawyers some Advil...__ Yesterday, Epic [argued](https://www.cnbc.com/2021/05/03/epic-games-v-apple-trial-apple-says-it-doesnt-want-to-be-android.html) that Apple has an iPhone app monopoly, and purposely locks customers into its ecosystem. Apple argued that it gets to set the rules for its own App Store, which it says are needed to ensure quality and security. Epic disagrees.

- __Facepalm:__ A key part of the debate revolves around the market that Apple allegedly dominates. Epic says it's iPhone app distribution.... Apple says it's game distribution. 
- __Google's Android controls ~85%__ of the  operating system market — but it allows software downloads *outside* of Google's app store. With iOS, you can mostly only download via App Store.
- __If Epic wins,__ Apple could be forced to give up control of app distribution, allowing customers to freely install software on iPhones. 


_Suited up for the Battle Royale [Drazen/E+ via GettyImages]_

Suited

__This could be Apple's make-or-break moment...__ The App Store created an explosion of opportunity (and $$$) for developers... but at a cost. That could change if Apple loses this suit — especially since it's facing *other* (related) antitrust scrutiny: last month, it got [grilled](https://www.wsj.com/articles/apple-google-come-under-fire-at-senate-antitrust-hearing-11619044588) by the Senate over its smartphone ecosystem power, and last week the EU charged it with allegedly abusing its control over music app distribution. CNBC estimates that Apple made $64B last year from the App Store (~30% of its annual revenue). Changes on the app side could cost it big.

The Epic trial that could change Apple's iPhone app control as we know it

__Mentioned in every Vogue skincare video...__ La Mer's marketing team never sleeps. __[Estée Lauder](https://robinhood.com/stocks/EL)__ is the beauty giant that owns brands like Bobbi Brown, La Mer, Clinique, MAC, Too Faced, and Jo Malone. Its first quarter earnings reveal a glow up from 2020.

- __Sales jumped 16%__ and were up in every region. But the stock plunged 8% yesterday because... they were slightly lower than expected. 
- __"Travel retail" is recovering__, especially in China. Think: splurging on Estée fragrances at the airport Duty Free. 

__Forgot how to do winged liner...__ (never really knew how). Skincare was the star of Estée's quarter, outperforming while makeup disappointed. Skincare sales soared 31%, perfume sales jumped 30%, and even hair care grew. Meanwhile, makeup dropped 11% — the only category that declined. Rival __L'Oreal__ also reported "lacklustre" makeup sales last quarter.

- __Makeup sales fell__ across nearly all Estée brands, especially hitting foundation and lip products (no Zoom gloss necessary). 
- __Skincare sales were more than 2X__ makeup sales. In 2018, skincare and makeup sales were about equal. 
- __"Hero products"__ like *Advanced Night Repair Synchronized Multi-Recovery Complex* (whoa) and *Crème de la Mer* drove the most demand. Now, Estee is doubling down on skincare investments with The Ordinary.

Glowy

__Old habits die hard...__ so do some Covid habits. For a year, we’ve been sitting at home fresh-faced. "Big Nights Out" turned into "Big Nights In," complete with self-care rituals. Eye serum became the new eye shadow, and clean became the new cakey. Even with rebounding travel and "revenge spending," makeup is still lagging. That shows some Covid habits are sticking, even through reopenings. Amazon just had its best first quarter ever because ecomm is still growing, and Crocs posted record Q1 sales because comfort is (still) cool. 

Estée Lauder's makeup sales  prove corona habits die hard, even as outings return

⚔️ Apple's Epic battle

__Feeling like Jordan '96,'97...__ The "Big Tech 5" demolished earnings with jaw-dropping records.  Despite the vax rollout and reopenings, some online pandemic habits seem to have only ramped up from January to March... 

- __[Amazon](https://robinhood.com/stocks/AMZN)__ had its [best](https://snacks.robinhood.com/newsletters/3R4HEFEoXZ1isuemmsCm9G/articles/6UKjvYAKLypKoODOwTmCtR/) first quarter *ever*, as the ecomm boom continued. Sales surged 44% from 2020 to a wild *$109B*, and profit more than 3X'd. Fun fact: ads were one of the 'Zons fastest-growing categories. Oh, and Bezos [called](https://ir.aboutamazon.com/news-release/news-release-details/2021/Amazon.com-Announces-First-Quarter-Results/default.aspx) Prime Video and AWS "our kids" (#nostalgic).
- __[Apple](https://robinhood.com/stocks/AAPL)__'s sales soared 54% to a Q1 record, and profit more than doubled to a shocking $24B. All product categories saw double-digit sales growth, but iPhone brought home the real iBacon (thanks, 5G upgrades).
- __[Google](https://robinhood.com/stocks/GOOGL)__ also smashed sales expectations, and profit more than doubled to $18B. YouTube was the star, with sales jumping 49% to $6B (more than Snap, LinkedIn and Pinterest... *combined*).
- __[Facebook](https://robinhood.com/stocks/FB)__'s sales soared 48% to $26B (nearly all from ads). Profit ~2X'd, thanks to a surge in ad prices. FB users, including Insta and WhatsApp, jumped 15%  to *3.5B* — aka: nearly half Earth's population.
- __[Microsoft](https://robinhood.com/stocks/MSFT)__ posted its strongest revenue growth since 2018 (partly thanks to higher PC sales).

__BTW...__ The "Big Tech Five" makes up ~22% of the __[S&P 500](https://learn.robinhood.com/articles/7kFFEUv46vmMCmMfLuNiRX/what-is-the-s-and-p-500/)__'s value, which reflects the total stock market. After a year of stocks thriving while the economy suffered, the economy seems to be starting to catch up. And consumer spending is playing a big role.


_Apple checks the earnings iMessage [Flashpop/DigitalVision via GettyImages]_

Whoa

__Big Tech's records reflect economic confidence...__ Consumer spending is rebounding thanks to stimulus(es), vaccines, and business reopenings. Retail sales surged 10% in March, the largest jump in a year. That benefited Amazon, but it *also* boosted ad giants, who rely on your spending to sell ads. Spending fueled 6.4% GDP growth last quarter, the second-fastest pace since 2003. Meanwhile, the techy __[Nasdaq](https://learn.robinhood.com/articles/1GXPrecRfkSNp0aBblBSsL/what-is-the-nasdaq/)__ index is up 62% over the past year. But a few clouds could rain on Big Tech's parade. Like: increasing antitrust scrutiny (the Apple-Epic "App Store monopoly" [trial](https://www.washingtonpost.com/technology/2021/04/30/epic-apple-trial-antitrust-fortnite-app-store/) starts today) and inflation [concerns](https://snacks.robinhood.com/newsletters/TkemicSGU43NTUB9d1ASr/articles/2mJPn77i6fUo7xq3qNVfjA/).


Big Tech giants drop back-to-back records (thanks to your 2021 spending) 

__Checking in (all at once)...__ It's hotel week, with __Hilton__, __Hyatt__, __Booking__, __Expedia__, __Tripadvisor__, __Starwood__, and __Wynn Resorts__ all dropping earnings (now breathe). A pandemic isn't the best time to sip mojitos poolside, but we *have* seen  "[revenge spending](https://snacks.robinhood.com/newsletters/2lFqgJt0AfN3zJsbqdxm7m/articles/17MF35F4AhEUwPGvF1qKzt/)." Flight and restaurant sales surged in March, and TSA numbers are notching pandemic highs. But *global* Covid cases are still soaring, and earnings are expected to be lower than a year ago.

__Coming in mRN-ASAP...__  __[Moderna](https://robinhood.com/stocks/MRNA)__ and __[Pfizer](https://robinhood.com/stocks/PFE)__ earnings. Unlike __[J&J](https://robinhood.com/stocks/JNJ)__, the two mRNA vaccine makers *didn't* pledge to pass up vax profits (which could be big). Pfizer projects $15B in Covid vax sales for 2021, and Moderna forecasts $18B+. Vax sales will likely make a bigger difference for Moderna than for pharma giant Pfizer. Moderna has never made a profit, and the Covid vax is its first product. Pfizer stock is up 5% since January last year. Moderna is up *850%*.


__Biden's big spending proposal...__ Another one. Last week, President Biden [unveiled](https://snacks.robinhood.com/newsletters/bkjHwzrYk5EcEFSxyJkR0/articles/3F4q4ct8ZW31iTShdsX1WK/) a $1.8T social spending plan that could transform the role of US government. It includes free pre-K and community college, federal paid family leave, and extended tax credits. It also brings Biden's total proposed spending tally to $6T, and would be paid for by tax hikes on the wealthy. We'll see how it fares in Congress, where Dems have a razor-thin majority.

__The "DPF Effect"...__ We're seeing the "demand pulled forward" effect [hit](https://snacks.robinhood.com/newsletters/3pnV87VuDPifCjtp4W4gHh/articles/3a26NetPKtd4R5XargcsRf/) some coronaconomy thrivers. DPF: when user growth that *should've* happen last quarter actually happened in 2020. __[Pinterest](https://robinhood.com/stocks/PINS)__ stock plunged 11% last week on slowing user growth — the moodboard-boom already happened. __[Netflix](https://robinhood.com/stocks/NFLX)__ also blamed DPF for its big subscriber miss last quarter. We’ll see if DPF hits other coronaconomy thrivers like __[Peloton](https://robinhood.com/stocks/PTON)__, which reports this week.

- __[Energy](https://snacks.robinhood.com/newsletters/GthYqJXfXa1UXvTAPKzZr/articles/1zYvayrbd8lJxnS8ecuB30/):__ __Exxon__ is facing the “Blockbuster Alarm” on oil — change and go green, or go extinct.
- __[Ads](https://snacks.robinhood.com/newsletters/3pnV87VuDPifCjtp4W4gHh/articles/7vbuNAkTTZcIt3oAQiUaOr/):__ __Apple__ is rolling out big iOS privacy changes that could hurt competitors like __Facebook__ and __Google__, while bolstering its *own* ad biz.
- __[Fashion](https://www.cnbc.com/2021/04/27/crocs-crox-q1-2021-earnings.html):__ __Crocs__ shares soared 19% for the week after it reported record first-quarter sales because functional = the new fashionable.

📲  Big Tech's big blowout 

__Hey Big Spender...__ It's a song from a 60s musical – *and* the chorus of President Biden's domestic policy. On Wednesday, the President delivered his first speech to Congress. Biden detailed an ambitious agenda that could transform the role of the federal government as we know it. The headliner was a $1.8T spending plan, the third of Biden's "big three" proposals.

- __$1.9T:__ Cost of the massive stimulus [passed](https://snacks.robinhood.com/newsletters/VcXib5c8iwx7WvC2RdU9C/articles/5BY7nmhrMARFVO8RCsWEZi/) in March (aka: American Rescue Plan).
- __$2.3T:__ Cost of Biden's infrastructure makeover [proposal](https://snacks.robinhood.com/newsletters/5LFeKLcW6vcwl0ortNgrtm/articles/4n7AMG2fFNs2TmR0EXgTgO/) (American Jobs Plan).
- __$1.8T:__ Cost of the social spending plan unveiled this week (American Families Plan).
- __$6T:__ The total tally, which would largely be paid for by raising taxes on corporations and the wealthy. 

__It's a big one...__ The American Families Plan features $1T in  spending on things like: free pre-k and community college, and federal paid family and medical leave. $800M would go toward tax credits, including extending the Covid-era expanded child tax credit. The plan would be paid for by hiking the marginal income tax rate for the 1%, and raising investment-related tax rates for those making $1M+ per year.

- __Pros:__ It could boost consumer spending, increase education, and improve equality of opportunity.
- __Cons:__ It could reduce private investments and entrepreneurship, increase the national debt, and possibly spur inflation.

Spend

__Biden’s trying to start a new ~40-year cycle...__ From 1933 when FDR took office, to 1969 when LBJ *left* office, the US government's role (and spending on social programs) expanded massively. Since Reagan became prez in 1981, the federal government's involvement in Americans' lives has shrunk. Biden is trying to kick off a new expansion — but that could be tough with Dems' slim majority in Congress.


Biden's third big spending proposal could reshape the role of US government

__McLovin' it...__ a Superbad reference for a pretty good quarter. __[McDonald's](https://robinhood.com/stocks/MCD)__ earnings are fresh out of the fryer: last quarter, US same-store sales soared 14% from 2020, as reopenings and vaccines encouraged eating out. Even better: total global sales [surpassed](https://www.cnbc.com/2021/04/29/mcdonalds-mcd-q1-2021-earnings.html) pre-pandemic levels. The Big Mac has officially made a comeback — but chicken was the real star.

__Nothing paltry about poultry...__ As interest in beef alternatives like plant-based meat grows, chicken continues to be the most popular meat in the US. Fast-food giants are capitalizing by putting a fresh spin on it. Enter: the *Fried Chicken Sandwich Wars*. Popeyes started the craze in 2019 with its viral sandwich. Now __KFC__, __Wendy’s__, and __Burger King__ have joined the fray — and __Taco Bell__ did the most with a fried chicken sandwich taco. 

- __McDonald's was late to the FCS wars,__ [launching](https://www.today.com/food/mcdonald-s-launch-3-new-chicken-sandwiches-early-2021-t204978) three fried chicken sandwiches in February this year. Since it controls 30% of the fast-food market, all eyes were on McD's. 
- __Result:__ McD's crushed its sales projections for the Crispy Chicken Sandwich line, while limited-time Spicy McNuggets drove excitement.
- __Fun stat:__ "Chicken" was mentioned 23 times in its earnings call ("burger" only twice).  


_The Fried Chicken Sandwich Wars intensify [izusek/E+ via GettyImages]_

__Double down on the trend product...__ Trend products drive fresh sales for old companies — from Popeyes' Chicken Sandwich, to Starbucks' Brown Sugar Oat Milk Espresso. For McD's, the chicken sandwich isn't a sandwich... it's "the beginning of our multiyear chicken journey." McD's CEO said it will use everything in its "arsenal" to drive chicken sales in this fast-food war. And it's also doubling down on another trend product: Famous Orders. Its Travis Scott meal majorly drove digital sales, and a BTS partnership is up next. 

McDonald's bounces back to pre-pandemic sales by leaning into fresh trends

🏫 Biden's $1.8T social plan  

__No imposter syndrome here...__ __[Apple](https://robinhood.com/stocks/AAPL)__ just showed off why it deserves to be Earth's most valuable company. The Fruit demolished earnings expectations. 

- __Sales were up 54%__ to *$90B*, a record for the January to March quarter.
- __Profit more than 2X'd__ to $24B, notably higher than Wall Street expected.

__Winners across the keyboard...__ Apple saw double-digit sales growth across *all* product categories (even iPad) for the second quarter in a row. Mac revenue soared 70% to a fresh record, as you upgraded your WFH life. iPad sales were up 79%, as you distracted your toddler with the tablet. And Services revenue (think: Music, TV, Books) reached an all-time high.

- __iPhone was the star chef__ in Tim Cook's kitchen, serving up expectation-smashing sales growth.
- __iPhone sales soared 65%__ to $48B (more than half of Apple's total sales). The new 5G-enabled iPhone 12 fueled a sweet upgrade cycle.

_The scene at Apple, Google, and Facebook offices yesterday [laflor/E+ via GettyImages]_

Smash

__Big profits can come back to investors...__ Investors own a piece of the company pie, so they can share in the company's profit. After this killer quarter, Apple is sharing the love with investors: it authorized $90B in stock buybacks, much more than it did the last two years. By buying back a large amount of its own shares (reabsorbing them), a company can improve its stock price by reducing the numbers of shares outstanding. Another way to reward shareholders is through paying dividends: and Apple just raised its dividend by 7%.

Apple's jaw-dropping quarter is a win across the board (and investors get some sugar)

__If I see another Postmates ad...__ Two ad giants reported quarterly earnings this week, and they both crushed it. __[Facebook](https://robinhood.com/stocks/FB)__ now has nearly *3.5B* monthly users across FB, Insta, and WhatsApp — a 15% increase from a year prior. Considering that nearly half of Earth's population uses Facebook, these earnings growth numbers are even more impressive:

- __Sales soared 48%__ from 2020 to $26B (ads made up 97% of that).  
- __Profit nearly 2X'd__ to $9.5B, partly thanks to a 30% jump in the average price/ad.
- __FB makes ~$9/year per user,__ but $48/year for each user in North America. 

__Stealing Zuck's thunder...__ __[Google](https://robinhood.com/stocks/GOOGL)__ also had a monster quarter, [notching](https://www.wsj.com/articles/google-alphabet-googl-1q-earnings-report-2021-11619493812) a January to March revenue record. Sales soared an expectation-smashing 34% to $55B (more than double FB's) — and 81% of those came from advertising. Profit more than doubled to $18B. 

- __YouTube was the star,__ with sales jumping 49% to $6B as you binge-watched skincare vlogs and how-to vids. YouTube's quarterly sales alone = ~85% of __Netflix__'s quarterly *total*.  
- __1B hours:__ How much time YouTube's 2B monthly users spend watching videos *per day*. And unlike Netflix, YouTube isn't paying billions to actors and directors for content. 


Boom

__Storm clouds are brewing...__ that could rain on ad giants' parade. First: __Apple__ is [rolling out](https://snacks.robinhood.com/newsletters/3pnV87VuDPifCjtp4W4gHh/articles/7vbuNAkTTZcIt3oAQiUaOr/) iOS privacy changes *this week* that are poised to hurt FB's precious ad-targeting abilities – and likely, its sales. FB expects growth to slow in the second half of the year as these roll out. By some estimates, FB [could](https://www.usatoday.com/story/tech/2021/04/26/facebook-apple-iphone-ipad-privacy-ios-software-update/7368248002/) lose as much as $3B/year. Meanwhile, Google may feel pressured to implement similar changes on Android, which could hurt ad sales. Second: President Biden [nominated](https://snacks.robinhood.com/newsletters/2Z4BofvGDzgoroXZ4OTaiL/articles/75lgUHK9VCoHmFBsxK4D6C/) Big Tech critic Lina Khan to lead the FTC last month, which could amp up antitrust pressure. Finally, reopenings are expected to reduce time online (bad for ad views).