__Quiet but deadly?...__  It's easy to overlook __[Apple](https://robinhood.com/stocks/AAPL)__'s ad biz, when __[Google](https://robinhood.com/stocks/GOOG)__ and __[Facebook](https://robinhood.com/stocks/FB)__ take the spotlight. Apple doesn't have a search engine or social network to fill with protein powder ads — but it *does* sell ads in its App Store, and displays ads in the News and Stocks apps. App Store ads are expected to bring in $2B this year (a fraction of Apple's *$275B* annual sales). For reference: Google made $46B in ad revenue last quarter *alone*. Buuut...

- __Apple is making big privacy changes__ that could [hurt](https://www.google.com/url?q=https://www.wsj.com/articles/apples-privacy-changes-are-poised-to-boost-its-ad-products-11619485863?mod%3Dbusiness_lead_pos2&sa=D&source=editors&ust=1619583544610000&usg=AOvVaw3pF1NiA_RJ_T-Bj-077c3m) competitors, while bolstering its *own* ads. Apple’s latest iOS update lets users decide whether to let apps track them for ads.
- __According to #PFWTM:__ Advertisers targeting iPhone users will get more detailed and timely data if they buy *Apple’s* ad space, than if they buy via third parties (like FB).
- __Apple's own ad biz won't be affected__ by the changes, since ads on its platforms can only target large groups, not individuals.

__MiPhone, MiRule...__ These changes could hurt companies' precious ad-targeting, while giving Apple’s ad biz an edge. Apple has been getting heat for allegedly favoring itself on its platforms. Think: [favoring](https://snacks.robinhood.com/newsletters/1dxqpvdRnz5eITeoT8vbeN/articles/2WdP7dj2TMzaTUWzOkSACV/) its own apps on the App Store, and [taking](https://snacks.robinhood.com/newsletters/5uZ4vkSS8Nm2E66EoZipyq/articles/7ldqqTAnA2aTv0zwT8zp3V/) large cuts of purchases from non-Apple apps. Just last week, Apple and Google got [grilled](https://www.wsj.com/articles/apple-google-come-under-fire-at-senate-antitrust-hearing-11619044588?mod=tech_lead_pos4) in a Senate hearing over their dominance of smartphone ecosystems. Still... 

- __The ad changes could be hard to challenge:__ Apple says it's not favoring itself, but is motivated by user privacy concerns.


Juicy

__Ads could be Apple’s competition-slayer...__ Not because it has a massive ad biz, but because it can influence the fortunes of its competitors' main money-driver: ads make up ~80% of Google's sales, and 98% of Facebook's. Apple doesn’t have to become an ad giant to reduce ad giants’ power. The privacy changes are already poised to hurt its competitors. Meanwhile, Apple reportedly plans to expand its own ad offerings. JPMorgan [estimates](https://9to5mac.com/2019/11/15/apple-ad-revenue/) its ad revenue could grow to $11B/year by 2025.


Apple's "sneaky" ad biz: how privacy changes could give it an edge over Google and FB

__Sounds like a #pinner...__ __[Pinterest](https://robinhood.com/stocks/PINS)__'s earnings yesterday were a textbook lesson in "everything is relative." Quarterly sales were up a sweet 78% from a year earlier, with international revenue nearly 3X'ing — *and* its net loss shrank 85%. So far, so great. Monthly active users hit 478M (double __Snap__'s), up 30% from 2020. Sounds awesome. The reaction: shares plunged 11% after earnings...

__Always in a mood(board)...__ Despite the awesome numbers, investors were [bummed](https://www.cnbc.com/2021/04/27/pinterest-pins-earnings-q1-2021.html) and fixated on one thing: *slowing user growth*. That 30% user boost *sounds* great – but it was Pinterest's slowest growth in a year, and it missed expectations. Last year, people flocked to Pinterest to create inspo boards for postponed weddings and Tuscan-style dream kitchens. Now...

- __Pinterest warned that user growth is slowing__ in the US, its most valuable market by far (Americans spend a lot, so advertisers pay more for US ads).
- __Pinterest said engagement is falling__ as the US economy reopens. People are eager to spend more time off-screen (white sand beach IRL). 

_When reality doesn't match the moodboard  [Kmatta via GettyImages]_

Mood

__Blame the "DPF Effect"...__ "Demand Pulled Forward." Thanks to the pandemic boom, user growth that Pinterest *should've* experienced last quarter actually happened in 2020. __[Netflix](https://robinhood.com/stocks/NFLX)__ also [blamed](https://www.bloomberg.com/news/articles/2021-04-20/netflix-plunges-after-subscriber-miss-bleak-customer-outlook?sref=q3KSFp38) the “Covid-19 pull-forward” effect for its big subscriber miss last quarter: it added less than [4M](https://www.cnbc.com/2021/04/20/netflix-nflx-q1-2021-earnings.html) subs, compared to nearly 16M in the first quarter of 2020 (aka: peak lockdown). We can expect the DPF Effect to hit other coronaconomy thrivers, too. 


Pinterest gets "DPF'd" —  it dropped impressive earnings, but the stock plunged 

Dow Jones

S&P 500

Nasdaq

Bitcoin

📲  Apple's surprising ad play 

__Shots fired...__  __[Exxon](https://robinhood.com/stocks/XOM)__ [reportedly](https://www.ft.com/content/5ab010de-43c8-4b60-80f2-020f01610eee) was just dealt a major warning by its activist investor, hedge fund __Engine No. 1__. Activist investors = Wall Street's aggro helicopter parents. Engine No. 1 said Exxon faces an “existential business risk” from tying its future to fossil fuels. Unlike Shell and BP, Exxon [hasn't](https://www.politico.com/news/2021/04/19/exxonmobils-carbon-project-biden-483253) vowed to transition away from oil and gas, arguing they'll remain key. 

- __Warned:__ Engine No. 1 thinks Exxon's lack of an energy transition plan jeopardizes its future (and its dividends) in a lower-carbon economy.
- __110+ countries have pledged carbon neutrality__ by 2050. Major governments (including CA, Japan, and the UK) said they'll start banning sales of new gas vehicles in the 2030s.

__*Why you always in the news?...*__ Exxon has been making headlines for its carbon capture efforts. Carbon capture = removing carbon dioxide from the air, then storing it underground. Exxon created a new biz unit to commercialize carbon capture, which it says will be a $2T market by 2040. Oil giants like __[Occidental](https://robinhood.com/stocks/OXY)__ and __BHP__ have also [invested](https://snacks.robinhood.com/newsletters/2ObuixsZ1Fn2mCLQnOBLrW/articles/rK0TgNHp6qVZTpf66AcEa/) in the carbon-vacuuming tech. But most of Exxon's $$$ comes from oil and gas... and Engine No. 1 doesn't love that:

- __Last week,__ Exxon [pitched](https://www.politico.com/news/2021/04/19/exxonmobils-carbon-project-biden-483253) a $100B carbon capture project to help the Biden admin hit its new emissions-slashing target by 2030. The admin reportedly passed.
- __Engine No. 1__ said Exxon “touts its efforts in areas like carbon capture,” but they've “delivered more advertising than results.” Burn. 


Busted

__It's the "Blockbuster Alarm"...__ The call for an existential pivot to be made... before it's too late. Blockbuster clung to VHS and DVD rentals, even while streaming emerged as the future. Now it’s extinct, and Engine No.1 doesn’t want the same to happen to Exxon. If VHS tapes are oil, then streaming is clean energy. Governments will need clean energy (like wind and solar) to achieve their green goals. Engine No. 1 rang the "Blockbuster Alarm" to spur Exxon to go green. 

Exxon faces the “Blockbuster Alarm” on oil — change or go extinct 

__5 stars for four paws...__ And throw in a special purpose acquisition corgi. __Rover__ is like Uber, for dogs. "The world's largest" online pet care marketplace connects you to dog walkers, house sitters, groomers, and even play dates for your pooch (similar to __Wag__).  In February, Rover [revealed](https://www.geekwire.com/2021/pet-sitting-marketplace-rover-grabs-bone-valued-1-3-billion-latest-spac-deal/) it's going public by merging with a SPAC called __Nebula Caravel Acquisition Corp__ (claaassic SPAC name). And it just dropped some fresh stats.

__Meet the pawrents...__ Pet adoptions soared last year as homebound Americans took in furry friends, [boosting](https://snacks.robinhood.com/newsletters/6PR0xbLSMdv6hGEyPZHPHD/articles/1qID0PIUvnfyK7kmL5mfVe/) pet supply companies like __[Chewy](https://robinhood.com/stocks/CHWY)__. For Rover, it wasn't as cute: 2020 sales [plunged](https://www.geekwire.com/2021/pet-sitting-marketplace-rover-grabs-bone-valued-1-3-billion-latest-spac-deal/) 49% because a) you didn't need a home sitter, since you were always sitting at home and b) you didn't need a walker, since your dachshund was your only reason to leave the house. Now...

- __Things are looking pup:__ Rover just reported first quarter numbers that signal a post-pandemic recovery, as you leave your maltipoo for Miami.
- __New customer daycare bookings__ for puppies were up 64% from 2019, a record high. 

_The pawrents should leave more often [Robbie Augspurger via GettyImages]_

Doggy

__We're in the "gig-ify anything" era...__ Independent workers' wages and participation [soared](https://fortune.com/2021/04/21/gig-workers-covid-independent-contractors-remote-work-c-suite-executives/) 33% in 2020, as full-timers got laid off and the gig economy boomed (think: __[DoorDash](https://robinhood.com/stocks/DASH)__, __Instacart__, __Fiverr__, __Upwork__). One in four workers are [considering](https://www.cnbc.com/2021/04/19/1-in-4-workers-is-considering-quitting-their-job-after-the-pandemic.html) quitting their jobs post-pandemic — and many say it's because they want more flexibility (aka: exactly what gig work provides). From Rover's gig-ified pet care, to [professional cuddling](https://www.theguardian.com/lifeandstyle/2020/jul/22/cuddle-therapy-coronavirus-social-distancing-virtual) services (virtual and IRL) like __Cuddlist__... people are gig-ifying their interests and time at an unprecedented level. 

The Uber of dog-walking is going public in the furriest gig SPAC merger yet

📀  Exxon's Blockbuster moment 

__*100 days later*...__ (in SpongeBob voice). This Thursday marks President Biden's 100th day in office. We’ve seen big changes since Inauguration Day — so we're zooming out on Biden's first 100 days through the lens of the economy and business:

1. __The Big Stimulus:__ Biden campaigned on it, but we didn't expect how *massive* it would be. The $1.9T package was more than twice as big as the 2009 recession package. $1.4K checks fueled a [rebound](https://snacks.robinhood.com/newsletters/2lFqgJt0AfN3zJsbqdxm7m/articles/17MF35F4AhEUwPGvF1qKzt/) in "revenge spending," and boosted economic growth expectations.

2. __The Vax Rollout:__ Biden pledged an achievable target of 100M shots in his first 100 days. [230M](https://covid.cdc.gov/covid-data-tracker/#vaccinations) shots have already hit American arms. Biden expanded eligibility to all adults, speeding up biz reopenings — and boosting [spending](https://snacks.robinhood.com/newsletters/2lFqgJt0AfN3zJsbqdxm7m/articles/17MF35F4AhEUwPGvF1qKzt/) on travel and restaurants. Now, the US is [providing](https://www.nbcnews.com/politics/white-house/u-s-provide-covid-vaccine-components-medical-supplies-india-n1265243) vax supplies to India, where Covid is surging.

3. __Infrastructure Makeover:__ Biden unveiled a $2.3T proposal to give America's infrastructure a major facelift. It would be the biggest federal program since the '60s Space Race, and could [boost](https://snacks.robinhood.com/newsletters/44rp3bUdom0Q5pREmL0SR1/articles/6FAZxow6cfIKFXsmBw8RJ2/) construction-related companies.

4. __Serious Tax Hikes:__ Biden's infrastructure plan requires [bumping](https://snacks.robinhood.com/newsletters/2FGYY02td4t3rp9KjKvLQM/articles/1d7eiIZp8iwgUI9aKXGIQZ/) the corporate tax rate to 28% from 21%. He also wants to raise income taxes on the wealthy, and [reportedly](https://www.bloomberg.com/news/articles/2021-04-22/biden-to-propose-capital-gains-tax-as-high-as-43-4-for-wealthy?sref=q3KSFp38), nearly double taxes on investment gains to ~40% (for people earning $1M+). Stocks and Bitcoin plunged on the reports.

5. __Green Push:__ Pre-election, Biden pledged $2T to clean energy. His infrastructure plan includes EV rebates and 500K electric vehicle chargers. He also [unveiled](https://www.google.com/url?q=https://www.wsj.com/articles/biden-to-urge-climate-action-at-world-leaders-summit-11619085614?mod%3Dhp_lead_pos1&sa=D&source=editors&ust=1619393585846000&usg=AOvVaw1hzOQ6P0VzNwlLm8uyOsN_) a new target to slash US emissions by 2030. That could [boost](https://snacks.robinhood.com/newsletters/44rp3bUdom0Q5pREmL0SR1/articles/6FAZxow6cfIKFXsmBw8RJ2/) EV makers and clean energy companies.


_"Big Tech 5" earnings are now in session  [Donald Iain Smith via GettyImages]_

__Biden went *big*...__ His first 100 days brought the biggest step-change in the role of government since LBJ. While Biden ran as a centrist, his policies have been more left-leaning than expected. But it's TBD what he'll be able to achieve with Dems’ slim majority in Congress. The  infrastructure bill may not fly — ditto for the tax hikes. Going forward, we'll see if these could pass without GOP support. Also top of mind: whether stricter regulation could hit Big Tech and finance.


Biden's first 100 days: the biggest moves affecting the economy and the markets

__Big Tech earnings...__ drop together. __[Amazon](https://robinhood.com/stocks/AMZN)__, __[Google](https://robinhood.com/stocks/GOOG)__, __[Apple](https://robinhood.com/stocks/AAPL)__, __[Microsoft](https://robinhood.com/stocks/MSFT)__, __[Facebook](https://robinhood.com/stocks/FB)__, and __[Twitter](https://robinhood.com/stocks/TWTR)__ report quarterly earnings this week. Big deal, since those first five companies make up ~[17%](https://www.zacks.com/commentary/1443030/previewing-big-tech-earnings) of the stock market's value. Earnings will be compared to a year ago, when people flocked to tech to survive #LockdownLife. The vax rollout could mean less phone-scrolling and online-ordering. We'll see if reopenings affected results.

__EV earnings...__ __[Nio](https://robinhood.com/stocks/NIO)__ (aka: the "Tesla of China") reports Thursday, and __[Tesla](https://robinhood.com/stocks/TSLA)__ (the "Tesla of Tesla") reports today. Electric vehicle sales have been [thriving](https://snacks.robinhood.com/newsletters/14Hg085xWwEvJnaWbkrQrd/articles/4UtTPkEjyCpP3Ry2vGbqHG/) globally:  Tesla already [revealed](https://ir.tesla.com/press) a record 185K deliveries last quarter, while Nio delivered a record ~20K cars (a fraction of Tesla's). Buuuut: Tesla is facing increasingly real competition from Chinese EV makers — *and* OGs like __[Volkswagen](https://robinhood.com/stocks/VWAGY)__ and __[GM](https://robinhood.com/stocks/GM)__. We'll see if that impacted sales.


Events

Coming up this week...

__Pod battle intensifies...__ Last week, __[Apple](https://robinhood.com/stocks/AAPL)__ [unveiled](https://snacks.robinhood.com/newsletters/eto2AkKAyWnKqhapU8qK1/articles/39cvgjEZEICx27rXq9whWJ/) a slate of (*colorful*) products. The headliner was AirTags, fancy Bluetooth buttons for tracking valuables. But the Fruit dropped something else that could be big: paid pod subscriptions, for ad-free listening and exclusive content. We'll see if __[Spotify](https://robinhood.com/stocks/SPOT)__, which has [invested](https://snacks.robinhood.com/newsletters/4lL77HNnzznybDiiMLIPMs/articles/6QKYpKI1836pYyUeFtTynA/) big in pods, will launch its own subs to lure creators. 

__SpaceX takes flight (again)...__ Last Friday, Elon Musk's __SpaceX__ [launched](https://www.cnbc.com/2021/04/23/spacexs-crew-2-mission-for-nasa-launches-successfully-reaches-orbit.html) four NASA astronauts to the International Space Station in its third-ever crewed flight. This month, SpaceX also won a $2.9B NASA contract to build a lunar landing system, beating out Bezos' __Blue Origin__. NASA's on a [mission](https://snacks.robinhood.com/newsletters/1r9xFjfsAFNRg58wQ4L06m/articles/6nxi97j9OUO3HLvof2LvA1/) to commercialize space travel (think: Hotel ISS), and SpaceX is playing an increasingly big role. 

Zoom Out

Stories we're watching...

- __[Earth Day Edition](https://snacks.robinhood.com/newsletters/18QR0SyWNU2shCThYbl30f/articles/6ohfonCXR6RoXiJCw901GU/):__ How industries like food and transportation (plus Bitcoin) are affecting the environment.

- __[Dogecoin's rally](https://snacks.robinhood.com/newsletters/4yW1t7ZAlpeTEKYaBK3zSe/articles/1UbpbNXgRTGvVLFGxceIQ0/):__ The joke, the rise, and the punchline of Doge's massive rally.

- __[Rising prices](https://snacks.robinhood.com/newsletters/eto2AkKAyWnKqhapU8qK1/articles/62H1VZQ7fErOkYBzrT8WvO/):__ Spending more on your PB&J? Consumer goods companies like __General Mills__ are raising prices for the first time since 2018.

ICYMI

Our biggest stories last week...

💰 100 days of Biden

__All in the same cockpit...__ Major US airlines just dropped earnings, and we're sensing a trend: __[American](https://robinhood.com/stocks/AAL)__, __[Delta](https://robinhood.com/stocks/DAL)__, and __[United](https://robinhood.com/stocks/UAL)__ all reported $1B+ losses. But their outlooks were brighter on rebounding travel demand (thanks: vax rollout, spring break). While these airlines saw their 5th-straight quarterly losses, Southwest came in out of left airfield:

- __Southwest revealed a $116M profit__ yesterday, its first quarterly profit since the pandemic began. $1.2B in government [aid](https://www.wsj.com/articles/airlines-prepare-to-bring-back-thousands-of-workers-after-congress-passes-covid-19-aid-bill-11608658635?mod=article_inline) definitely helped, but there's more to the story...

__LUV being different...__ LUV is Southwest's ticker symbol — and its mood in 2021. The favorable wind boosting Southwest: its domestic and leisure focus. Business travel has been hammered by the WFH life, and some execs [say](https://snacks.robinhood.com/newsletters/5gmxJQUqpvzHWE4CeHvylQ/articles/48Z9me8i4MIZs8HeJ2o573/) it may never recover. *Internationa*l travel has been hammered as Covid lockdowns hit Europe, and many international borders remain closed. 

- __That's good for Southwest__, which has a [largely](https://www.wsj.com/articles/southwest-american-say-leisure-travel-is-rebounding-as-summer-season-approaches-11619101590?mod=hp_lead_pos13) domestic network of US flights and more leisure-focused flyers (it doesn't offer business or first-class). By June, it expects to fly 96% of its pre-pandemic schedule.
- __That's bad for Delta, United, and American,__ who depend on business travel and international routes. United needs business and international traffic to recover to 65% of pre-pandemic levels to even turn a profit — they're both down 80% right now.

Cockpit

__Sometimes, less is more...__ Sure, Southwest doesn’t have the reach of bigger international airlines. Most of its eggs are in the US economy class basket, so it suffers when that basket suffers. But its risk exposure to other factors, like international travel, is limited. Now, other airlines are leaning more into domestic leisure travel, too: Delta, American, and United recently [added](https://thepointsguy.com/news/delta-new-leisure-routes/) dozens of domestic routes. __[Alaska](https://robinhood.com/stocks/ALK)__ [added](https://thepointsguy.com/news/alaska-airlines-montana-california-nonstop-flights/) four new routes to tourist-friendly Montana destination (think: Yellowstone). We can expect these airlines to focus more on your Miami girls trip, less on your Dallas conference. 

Out of left airfield: Southwest's first quarterly profit in the pandemic era

__*My Nesquik brings all the boys to the yard*...__ __[Nestlé](https://robinhood.com/stocks/NSRGY)__ is the world's largest packaged food company, known for treats like Kit Kats, Hot Pockets, and basically anything that begins with "Nes." A year ago, Nestle [reported](https://snacks.robinhood.com/newsletters/5WVBVnRyU12B88Ne0DgUWO/articles/7axbxNuSerzhl2SFbmpQoy/) its strongest quarterly sales growth since 2015, thanks to pandemic snacking and pet-mania (it owns Purina). Last quarter was even sweeter:   

- __Nestlé had its strongest quarterly sales growth__ in almost *10 years*. Sales jumped 8%, largely thanks to your morning coffee routine...

__Does the Nespresso store do samples?...__ Nestlé's killer growth was fueled by the at-home coffee boom. Instead of hitting Starbs for a pre-office latte, you were firing up Nespresso pods or Nescafé in your jammies. Nespresso sales jumped a whopping [17%](https://www.wsj.com/articles/at-home-coffee-boom-during-pandemic-powers-sales-at-nestle-11619090637?mod=lead_feature_below_a_pos1) last quarter, as Nestlé won new customers in North America. 

- __Treat Yo (Home) Self:__ People invested in espresso machines and name-brand brews to replicate barista coffee from their kitchens. Nestlé's Vertuo = business class Keurig.
- __Not just Nes:__  In 2018, Nestlé paid Starbucks $7B+ for the right to sell its packaged coffee beans/grounds. Those thrived last quarter, too.

Presso

__One habit is worth a lifetime...__ of customers. You buy Nestle's Kit Kats and Toll House cookie dough *occasionally*. But your daily coffee isn't just a product for Nestlé — it's the habit that keeps on giving. You splurge $200 for a Nespresso machine, then spend $30/month to refill pods. That's why Nestlé is making investments to own the coffee habit: it's expanding production centers in Switzerland, and intro'ing new flavors and products (think: touchless machines). TBD if the momentum will continue as coffee shops and offices reopen. 

Nestlé had its best quarter in nearly a decade thanks to your kitchen caffeine fix

_Airlines' new target customer [izusek/E+ via GettyImages]_

✈️ Southwest's (shocking) profit

__The avo burger can walk...__ and it leaves a carbon footprint. Wild stat: the global food production system accounts for more than [a third](https://investigatemidwest.org/2019/09/27/agriculture-is-one-of-the-biggest-contributors-to-climate-change-but-it-can-also-be-a-part-of-the-solution/) of human-made greenhouse gases. Wilder stat: [~45%](https://downloads.ctfassets.net/hhv516v5f7sj/54h9AkKqqLK8FEJ2cnFZ5D/4bf80ecb3589923dc6d0aba02e0a7cd2/Impossible_Foods_Impact_Report_2020.pdf) of Earth's ice-free land is covered by crops to feed livestock — that means fewer trees and plants to suck up CO2. 

- __10%:__ The portion of US greenhouse gas emissions generated by agriculture. Cows used for beef and milk are the largest emitters (they breathe out methane when they digest).
- __28X:__ Cows require [28X](https://thecounter.org/mcdonalds-greenhouse-gas-emissions-reduction-pledge-beef/) more land and 11X more water than other farm animals... and emit 5X more greenhouse gas.

__pea.protein22 has joined the chat....__ Sustainability concerns have propelled the rise of plant-based foods. In March 2020, [9.7M](https://www.google.com/url?q=https://www.ipsos-retailperformance.com/en/vegan-trends/&sa=D&source=editors&ust=1619049745179000&usg=AOvVaw1s_tGCFbcgIsTHv5QHK3Oh) Americans reported following plant-based diets, up from 300K in 2004. __[Beyond Meat](https://robinhood.com/stocks/BYND)__ and __Impossible Foods__ say their plant burgers generate ~90% fewer emissions than beef (and require less water and land). Now, alt-food companies are gaining mainstream appeal:

- __Beyond__ is expanding in chains like __[Walmart](https://robinhood.com/stocks/WMT)__ and __Subway__ — and recently partnered with __[McDonald's](https://robinhood.com/stocks/MCD)__ and KFC-owner __[Yum Brands](https://robinhood.com/stocks/YUM)__.
- __Impossible__ launched at TJ's and Walmart, and has breakfast sammies at __[Starbucks](https://robinhood.com/stocks/SBUX)__ and __Burger King__ (plus, the Impossible Whopper).
- __Oatly__ snagged a key partnership with Starbucks (Brown Sugar Oatmilk Espresso FTW). Sales of its sustainable milk [~2X'd](https://www.wsj.com/articles/oprah-backed-oatly-files-for-ipo-11618873268) in 2020 from 2019. Oh, and it filed to go public this week. 


Food

__Food is a change-maker...__ UN climate head Christiana Figueres sees the food industry as "one of the main levers of change" on global warming (she's also on Impossible's board). Alt-meat companies like Impossible and Beyond are explicitly targeting meat eaters who want to cut down — *not* vegetarians. If they succeed in full-mainstreamification of alt-protein, it could make a big difference. The plant-based meat industry is already a $20B biz, set to grow to $23 billion by 2024. But these companies still face pushback from the "real" beef and milk industries.

The Food Footprint: agriculture and the rise of plant-based food

__*Et tu, Bitcoin?*...__ When we hear "carbon emitters," we think of industries that have been around for 100+ years. But there's a new, "sneaky" carbon emitter on the scene: cryptocurrency. While crypto isn't on the same level as agriculture, transportation, and manufacturing, it's not great for the environment. Crypto mining uses tons of electricity... which is mostly generated by burning fossil fuels, like coal and gas.

- __Wild stat:__ __[Bitcoin](https://robinhood.com/crypto/BTC)__ alone accounts for [0.5%](https://fortune.com/2021/03/28/crypto-bitcoin-carbon-energy-consumption/) of global electricity consumption — more than *entire countries* like Argentina and Holland.
- __Wild(er) stat:__ A single Bitcoin transaction generates the same amount of carbon as [~1M](https://digiconomist.net/bitcoin-energy-consumption/) Visa transactions — *or 78K hours of YouTube binging*.

__Electricity vacuum...__ When Bitcoin was created by the mysterious Satoshi Nakamoto, he/she/they wanted to ensure people wouldn't use it fraudulently. Enter "mining"... People mine Bitcoin by using a massive amount of computing power to verify transactions on the blockchain. Special mining computers solve complex equations, making quintillions of attempts per second to verify the legitimacy of transactions (read: major energy suck). 

- __While crypto hasn't been a big target__ of environmental pressure/criticism (yet), a few companies are already working to reduce its footprint.
-  __Seetee__, a Norwegian investment company, said it planned to invest in cleaner energy (like wind and solar) to power mining operations. 
-  __Also,__ there are new ways to conduct greener Bitcoin transactions. Like: “the Lightning Network,” a payment channel that uses less energy.


_Post-Bitcoin mining sesh energy [RyanJLane/E+ via GettyImages]_

Crypto

__As Bitcoin grows, so does the energy drain...__ While retail and corporate investors pour into crypto, the total value of the crypto market has doubled since January to $2T. Companies like PayPal started accepting crypto payments, while others added BTC to their balance sheets. Growing Bitcoin activity could make it hard for certain countries to meet environmental goals. Meanwhile, [95%](https://www.morganstanley.com/content/dam/msdotcom/infographics/sustainable-investing/Sustainable_Signals_Individual_Investor_White_Paper_Final.pdf) of millennials are interested in sustainable investing, according to Morgan Stanley. Growing interest in ESG investing could amp up pressure to green-ify crypto. 

Crypto carbon: Bitcoin and its (energy-sucking) environmental impact

__A gassy journey...__  Car, truck, ship, train, bus, or plane — burning gas is usually required to get from Point A to Point B.   Not-so-wild stat: transportation is the [largest](https://www.epa.gov/transportation-air-pollution-and-climate-change/carbon-pollution-transportation) contributor of GHG emissions in the US (28% of the total). The solution is simple, but also complicated: *reduce reliance on fossil fuels*. 

__Turn me on with your electric wheel...__ The world is far from ditching gas entirely, but companies are laying the groundwork for an electric future. 

- __Consumer EVs:__ __[GM](https://robinhood.com/stocks/GM)__ set an ambitious 2035 target for phasing out gas vehicles from its lineup. __[Volkswagen](https://robinhood.com/stocks/VWAGY)__ said it'll slash the cost of batteries (the priciest part of EVs) by up to 50% by 2030, making them cheaper than gas cars. __[Tesla](https://robinhood.com/stocks/TSLA)__ [delivered](https://snacks.robinhood.com/newsletters/14Hg085xWwEvJnaWbkrQrd/articles/4UtTPkEjyCpP3Ry2vGbqHG/) a record-breaking 180K cars last quarter. __[Nio](https://robinhood.com/stocks/NIO)__ (aka: the "Tesla of China") said deliveries more than doubled to ~45K. 

- __Business EVs:__  __[Amazon](https://robinhood.com/stocks/AMZN)__ ordered 100K electric vans from __Rivian__, the largest order of delivery EVs ever. It's promising to become carbon neutral by 2040. GM unveiled a futuristic delivery solution, complete with electric pallets and a fresh fleet of e-vans.  __[FedEx](https://robinhood.com/stocks/FDX)__ pledged to replace 100% of its mail fleet with battery-powered vehicles by 2040.  Meanwhile, Tesla, __[Nikola](https://robinhood.com/stocks/NKLA)__, and __[Volvo](https://robinhood.com/stocks/VLVLY)__ are working on electric semi trucks for long hauls.

- __Electric planes (?!):__ __[Airbus](https://robinhood.com/stocks/EADSY)__ is [working](https://www.airbus.com/innovation/zero-emission/electric-flight.html) on alternative propulsion systems for e-planes, laying the groundwork for zero-emission flights.

Transport

__Policy is powerful...__ And it's moving the needle for sustainable transportation (and the companies behind it). Major governments — from CA, to Japan, to the UK — have said they'll start to ban the sale of new gas-powered vehicles in the 2030s. Meanwhile, President Biden's $2.3T infrastructure proposal includes EV rebates and a network of 500K electric vehicle chargers. Government incentives for buying green could accelerate the move away from fossil fuels. 


Movers and shakers: who's laying the groundwork for greener transportation

🌍 Special Earth Day Edition (feat. crypto carbon)

__It's the ~ aesthetic ~ for Apple...__ Yesterday, __[Apple](https://robinhood.com/stocks/AAPL)__ hosted its first event of the year. Starburst must have taken over Cupertino, because the tech giant [unveiled](https://www.cnn.com/business/live-news/apple-event-april-20-2021/index.html) a slate of deliciously colorful products. Like: a lavender-colored iPhone 12, and an iMac that comes in seven dreamy colors, including peach and mint. Apart from tea-flavored tones, Apple dropped:

- __New iPad Pro:__ Now built with Apple's powerful M1 chip and a better camera.
- __Redesigned iMac:__ Also with the M1 chip, and a fingerprint scanner. 
-  __Podcast Subscriptions:__ For paid ad-free listening and exclusive content. 

__The star of Apple's show...__ is also its worst-kept secret. Apple *finally* unveiled AirTags, little Bluetooth buttons you stick on things like wallets and keys to locate them (yep, just like Tile). They start at $29 each and drop on April 30. AirTags use Apple's U1 chip — the same one used in iPhone 12. The chip will make AirTags trackers [more](https://www.cnn.com/business/live-news/apple-event-april-20-2021/index.html) accurate than those from Tile, Samsung, and Sony. Also...

 - __AirTags use the "Find My" network,__ the same one used for Find My iPhone, Friends, etc. 
 - __Like blockchain, for iPhones:__ "Find My" is a crowdsourced network of hundreds of millions of Apple devices that can help users locate their missing tech through Bluetooth connection. Whoa.


Hermes

__AirTags = ultimate brand power move...__ Apple’s powerful brand is a statement – that's currently limited to Apple devices. But with AirTags, people can slap expensive Apple labels on *non*-Apple products. The Find My network will expand beyond your iPhone, to your wallet, suitcase, and $300 Hermès key chain (seriously: Apple [created](https://www.apple.com/shop/select-airtag-hermes) one). Unlike Tile, AirTags are fancy-sleek: stainless steel and Apple-branded, with a smiley face on one side. There's a built in speaker that rings to help you find items. To cap it off, you can add free engraving (emojis included). 


Apple's big product unveil: AirTags, pod subscriptions, and a whole lot of color

__Charmin, Tide, Gillette, Swiffer...__ Your pandemic grocery list = __[Procter & Gamble](https://robinhood.com/stocks/PG)__'s pandemic winners list. In October, the consumer packaged goods giant [dropped](https://snacks.robinhood.com/newsletters/1lIBEJ2Lv8q0dpc73o8pZy/articles/43IGuBwgWOjs0UMuRmsm3g/) its largest quarterly sales increase in 15 years (thanks to obsessive sanitizing). *Last* quarter, sales jumped 5% — the slowest increase in three years. But the headliner from P&G's earnings was price hikes. 

- __P&G will raise prices__ for some household staples, from Pampers to Tampax. Expect 5% to 9% hikes in September. It cited rising costs for raw materials and transportation.

__Your PB&J is getting pricier...__ P&G isn't the only consumer giant hiking prices — we're seeing the first widespread [increases](https://www.wsj.com/articles/kimberly-clark-to-boost-prices-as-commodity-costs-rise-11617197449?mod=article_inline) since 2018. As supply chain shortages and inflation raise prices, CPG giants are passing on the costs to consumers. 

- __[Kimberly-Clark](https://robinhood.com/stocks/KMB),__ which makes Huggies and Scott TP, plans to broadly raise prices in North America to offset higher raw materials cost. 
- __[General Mills](https://robinhood.com/stocks/GIS)__ (think: Cheerios, Cocoa Puffs) will raise prices to offset rising commodity and production costs.
- __[Hormel Foods](https://robinhood.com/stocks/HRL)__ raised prices of its Jennie-O turkey products in February to counter soaring grain costs. It upped Skippy peanut butter.
- __[Smucker](https://robinhood.com/stocks/SJM)__ hiked up Jif peanut butter (PB can't catch a break), and might do the same with pet snacks.

_When inflation hits the PB jar [Enes Evren/E+ via Getty Images]_

PB&J

__Prices are fueling inflation concerns...__ but they may be overblown. People are worried that the purchasing power of the dollar could decrease, and prices could rise. Trillions of $$$ have been pumped into the economy over the past year, boosting spending (and sometimes, prices). As "revenge spending" [soared](https://snacks.robinhood.com/newsletters/2lFqgJt0AfN3zJsbqdxm7m/articles/17MF35F4AhEUwPGvF1qKzt/) in March, consumer prices jumped 2.6% from 2020 — the largest rise since August 2018. But Fed Chairman Jerome Powell said that one-time price increases will likely have only short-term effects on inflation (which has been hovering at a tame ~2% since 2008). While we're seeing prices rise faster in some sectors, like food, the Fed expects overall inflation to stay in check. 


Rising prices, inflation, and pricier peanut butter... through the lens of P&G's earnings

 📲 Apple's colorful new gadgets 

__Much doge, such funny...__ __[Dogecoin](https://robinhood.com/crypto/DOGE)__ is a cryptocurrency that was created by two engineers in 2013 as a joke. It's a literal meme investment, themed around the OG “doge” Shiba Inu meme. Unlike __[bitcoin](https://robinhood.com/crypto/BTC)__, which is capped at 21M coins, dogecoin currently has no hard cap (theoretically: unlimited supply).

- __Dogecoin has massively rallied__ since January, when it was worth less than 1 cent. It’s up a whopping 8,000% this year, and hit a record of 45 cents last week.
- __Doge Day:__ Doge has more than 5X’d over the past week, after an ad campaign by Slim Jim (yes, the beef jerky) set off a social frenzy to drive Doge’s price up.

__Not April Fool’s Day…__ More like April 20. In case the nature of Doge wasn’t clear enough, certain fans are now gunning for the crypto to hit 69 cents on 4/20 (which some are calling "Doge Day”). Doge’s total market value has crossed $50B — more than __Ford__ and __DoorDash__ are worth. Meanwhile, celebs like Elon Musk and Snoop Dogg have been promoting doge, further fueling the social-driven buying campaign.

- __In context:__ Stimulus checks, the rise of retail investing, and the stay-at-home life may have all contributed to Doge’s rally — as well as a growing desire to “stick it” to the Wall Street establishment.


Doge

__The punchline is TBD...__ If Doge is a joke, then its future is determined by how long people are entertained by it. With traditional investing, people buy because they believe that the earnings and growth potential they see in an investment will drive more demand. With doge, people may buy because they believe others will buy based on a cultural fad. Investors could benefit short-term. But the long-term outcome of investing in these types of cultural assets remains unclear. Investing interest can wane as fast as it rises. From April 16 to April 17 alone, Doge plunged to nearly half its value.


Dogecoin’s big rally: the joke, the rise, and the punchline

__Warned...__  __[Peloton](https://robinhood.com/stocks/PTON)__ was the epitome of a corona-conomy thriver. Its stock ~5X'd in 2020, as its connected home fitness products sprinted off shelves. As SoulCycle and Equinox locations reopen, Peloton shares have fallen 26% this year. Peloton has been trying to expand beyond $2K spin bikes — so it launched $4K treadmills in 2018. Those are causing major problems now:

- __In March,__ Peloton's CEO disclosed that a child had died in an accident involving a Tread+. 
- __On Saturday,__  the US Consumer Product Safety Commission [said](https://www.cpsc.gov/Newsroom/News-Releases/2021/CPSC-Warns-Consumers-Stop-Using-the-Peloton-Tread) people should stop using Peloton's Tread+ if small children or pets are at home.
- __39:__ The CPSC cited 39 incidents involving a Tread+, including instances of children and pets getting sucked underneath it. See: this disturbing [video](https://www.youtube.com/watch?v=onXNnlCYJ4Y).

__Peloton got defensive...__ It called the agency’s claims inaccurate, [saying](https://www.prnewswire.com/news-releases/peloton-refutes-consumer-product-safety-commission-claims-301270942.html) there’s no reason to stop using the Tread+ if people follow safety instructions (which are included in the manual and on the treadmill). Peloton's instructions say that children, pets, and objects should always be kept away from the Tread+. Peloton also reminded adults to remove the "Safety Key," which prevents the Tread from being turned on post-workout. 

Warn

__Rule #1 of crisis management = *overcorrect*...__  While Peloton may not be technically at fault, it could've done more to maintain trust and safety with users. Potential examples: shipping a protective tread cover to owners, or releasing a safety-related software update. Instead, all it did was warn people to follow instructions. It could also have issued a recall, which would be a big financial hit (think: moving Treads out of houses, plus compensating owners). Still, sometimes companies recall products — and Peloton now [faces](https://www.wsj.com/articles/peloton-faces-mounting-pressure-to-recall-treadmills-after-one-death-dozens-of-injuries-11618873584) mounting pressure to recall its Treads.

Peloton faces pressure to recall its treadmills after dozens of injuries and one death

_The "Super League" has arrived [peepo/E+ via Getty Images]_

🐕 A Doge story

__Miss the extra butter...__ With the Oscars coming up on Sunday, we're taking a look at how the entertainment industry has transformed over the past year — and what's next. Pre-pandemic, tech companies were already investing big in streaming. Then everything fast-forwarded:

- __In April 2020,__ __[Universal](https://robinhood.com/stocks/CMCSA)__'s *Trolls* 2 made more $$$ in three weeks via streaming rental than the original did after five months in theaters.
- __In July,__  __[AMC](https://robinhood.com/stocks/AMC)__ [slashed](https://snacks.robinhood.com/newsletters/6RFtJk3mnCKOO7aaL4NeV/articles/5k77brddXY731lGleLUGG4/) the theatrical window for Universal films at its theaters. Instead of waiting the usual 75 days, people could stream new flicks after 17.
- __In December,__  __[AT&T](https://robinhood.com/stocks/T)__'s Warner Bros. [said](https://snacks.robinhood.com/newsletters/NhBPQsSaMB2BlXHd0BCKh/articles/mI6qijWrErv5JWjfb31eR/) it would release *all* its 2021 movies on HBO Max *at the same time* they hit theaters. 

__Lights, camera, play button...__ While theaters like AMC struggled to survive 2020, streamers could barely keep up with demand. Subscription streaming time soared [34%](https://www.axios.com/pandemic-sped-digital-media-shift-1e5ef4d7-8238-4c34-9971-41cf4b15f6e8.html) last year, to over an hour a day. __[Netflix](https://robinhood.com/stocks/NFLX)__, which reports earnings tomorrow, crossed 200M paid subscribers. __[Disney+](https://robinhood.com/stocks/DIS)__ crossed 100M subscribers last month, just 16 months after launching. 

- __Studios are becoming streamers...__ OG streamers face fresh competition from OG studios, which are focusing on streaming now, too. Think: Universal's Peacock, Warner's HBO Max, and __[Viacom](https://robinhood.com/stocks/VIAC)__'s Paramount+.
- __...and streamers are becoming studios.__ Case in point: Netflix's original movie "Mank" is a Best Picture nominee at this year's Oscars. __[Amazon](https://robinhood.com/stocks/AMZN)__ spent a whopping $11B on Prime Video and Music content last year, up 41% from 2019.


_"It's a nail-biter" [Klaus Vedfelt/DigitalVision via Getty Images]_

Stream

__The hybrid model could stick...__  AMC, the world's largest theater chain, reopened nearly all its US theaters last month. But the hybrid streaming/theater release model could stick around. Last week, Disney said it'll roll out Marvel's “Black Widow” and "Cruella" on Disney+ and theaters simultaneously. People will always watch movies on the big screen – but it'll be more for love of the shared experience, rather than the only way to see new films.


The future of entertainment: the new normal for studios, theaters, and streamers 

__"Revenge spending"...__ US retail sales soared 10% in March from February, the largest jump since May. As $1.4K stimulus checks hit bank accounts and vaccines hit arms, Americans [splurged](https://snacks.robinhood.com/newsletters/2lFqgJt0AfN3zJsbqdxm7m/articles/17MF35F4AhEUwPGvF1qKzt/) on (non-stretchy) clothes, restaurants, and travel. A whopping ~1M jobs were added last month. Now, consumer spending is expected to propel economic growth to +6.4% this year, the best rate in decades.

__Shell's environmental vote...__ Just in time for Earth Day (on Thursday): __[Shell](https://robinhood.com/stocks/RDS.A)__ asked shareholders to endorse its clean energy transition [strategy](https://www.shell.com/promos/energy-and-innovation/shell-energy-transition-strategy/_jcr_content.stream/1618407326759/7c3d5b317351891d2383b3e9f1e511997e516639/shell-energy-transition-strategy-2021.pdf), with a vote set for May 18. Shell is the [first](https://www.wsj.com/articles/shell-to-let-shareholders-vote-on-shift-to-cleaner-energy-11618491951?mod=business_lead_pos11) oil giant to seek investor approval on a pivot away from oil (it's leaning into electricity). If investors ship Shell's strategy, it could push others to do the same.

__Johnson & Johnson earnings...__ Last week, the FDA asked states to halt __[J&J](https://robinhood.com/stocks/JNJ)__'s one-shot Covid vax, after six people developed rare blood clotting.  It could be a blow to the rollout — but Dr. Fauci [predicts](https://www.wsj.com/articles/fauci-predicts-j-j-vaccine-returning-friday-perhaps-with-limits-warnings-11618763497) J&J's shot will return by Friday. Earnings drop tomorrow, but don't expect a major boost from vax sales: unlike __[Moderna](https://robinhood.com/stocks/MRNA)__ and __[Pfizer](https://robinhood.com/stocks/PFE)__, J&J [pledged](https://snacks.robinhood.com/newsletters/6jwYdiy4al8n5v0GOdIik/articles/7kSxhWesI8SzTyVJS53x2B/) to sell its vaccine "at cost" (read: no profit).

__Snap drops earnings...__ Thursday. In February, __[Snap](https://robinhood.com/stocks/SNAP)__ excited investors by saying it expects 50% annual sales growth for the next few years. But it's still unprofitable (and earns [10X](https://snacks.robinhood.com/newsletters/4xb7z6qlpUK2BEuIpPn3mA/articles/4KWjn4C3xdmPqHHyw5CmsG/) *less* revenue per user than __[Facebook](https://robinhood.com/stocks/FB)__). Snap has been [focused](https://snacks.robinhood.com/newsletters/6ayK3gl1rqepiw8vkFk0FE/articles/1w3MRpNTnNQjpGR8ALRL7z/) on growing ad revenue in non-messaging features. We'll see if it grew ads in Snap Maps, Discover, and its TikTok copycat “Spotlight."


__Johnson & Johnson earnings...__ Last week, the FDA asked states to halt __[J&J](https://robinhood.com/stocks/JNJ)__'s one-shot Covid vax, after six people developed rare blood clotting.  It could be a blow to the rollout — but Dr. Fauci [predicts](https://www.wsj.com/articles/fauci-predicts-j-j-vaccine-returning-friday-perhaps-with-limits-warnings-11618763497) J&J's shot will return by Friday. Earnings drop tomorrow, but don't expect a major boost from vax sales: unlike __[Moderna](https://robinhood.com/stocks/MRNA)__ and __[Pfizer](https://robinhood.com/stocks/PFE)__, J&J [pledged](https://snacks.robinhood.com/newsletters/6jwYdiy4al8n5v0GOdIik/articles/7kSxhWesI8SzTyVJS53x2B/) to sell its vaccine "at cost" (read: no profit).

__Snap drops earnings...__ Thursday. In February, __[Snap](https://robinhood.com/stocks/SNAP)__ excited investors by saying it expects 50% annual sales growth for the next few years. But it's still unprofitable (and earns [10X](https://snacks.robinhood.com/newsletters/4xb7z6qlpUK2BEuIpPn3mA/articles/4KWjn4C3xdmPqHHyw5CmsG/) *less* revenue per user than __[Facebook](https://robinhood.com/stocks/FB)__). Snap has been [focused](https://snacks.robinhood.com/newsletters/6ayK3gl1rqepiw8vkFk0FE/articles/1w3MRpNTnNQjpGR8ALRL7z/) on growing ad revenue in non-messaging features. We'll see if it grew ads in Snap Maps, Discover, and its TikTok copycat “Spotlight."


- __[Big banks, big earnings](https://snacks.robinhood.com/newsletters/2BaDoIcdXsja53tyH93ccQ/articles/5K9cPXQOlSNtntgG0U2X40/):__ __Chase__, __Goldman Sachs__, and __Morgan Stanley__ scored record quarters thanks to the SPAC and IPO-palooza.

- __[China cracks down](https://snacks.robinhood.com/newsletters/2aUdFDcS8HbDWWvTUoLlRp/articles/7hzAn3zqutap8eurhdXv40/):__ __Alipay__, Earth’s biggest financial app, will now be overseen by China’s central bank. China is also [warning](https://www.reuters.com/technology/china-warns-online-platform-companies-halt-anti-competitive-practices-2021-04-13/) dozens of other tech companies to follow regulation.

- __[Rise of "Super-apps"](https://snacks.robinhood.com/newsletters/73PYCZgEW1bG9MUNOaqJQc/articles/3mJwpmK77yoS0MetcedE4n/):__ Singapore's __Grab__ is going public at a ~$40B valuation, in the biggest SPAC merger *ever*. Grab = Uber, DoorDash, and Venmo (*all in one*).


🍿 The future of entertainment

__Went stimulus shopping...__ Retail sales [surged](https://www.wsj.com/articles/us-economy-march-retail-sales-coronavirus-recovery-11618450223?mod=hp_lead_pos1) in March, soaring ~10% from February — the largest jump since May of last year. As $1.4K stimulus checks hit bank accounts and vax shots hit arms, Americans hit stores and restaurants. The biggest pops in consumer spending were in pandemic-pummeled sectors:

- __Risers:__ Restaurant sales were up 13%, while clothing store sales [soared](https://www.cnn.com/2021/04/15/business/retail-sales-march/index.html) 18%. Sporting goods and hobby stores were up a whopping 23%. 
- __Fallers:__ Grocery sales barely budged from February, and actually *fell* 14% from March last year. Sales at online retailers jumped only 6%.

__Slim fit, revenge fit...__ After a year of saving up and holding back, Americans are "revenge spending" on pre-pandemic pleasures. Think: non-stretchy clothes, non-canned cocktails, and non-Zoom experiences. A few examples...

- __[Bank of America](https://robinhood.com/stocks/BAC):__ In March, debit and credit card spending jumped the most for plane tickets (up ~40%) and clothing (up ~20%). 
- __[American Eagle](https://robinhood.com/stocks/AEO)__'s quarterly sales are on pace to top $1B, thanks to a surge in sales of jeans and dressier tops. 
- __[Pepsi](https://robinhood.com/stocks/PEP)__ expects sales of oatmeal, box pancakes, and other packaged foods to slow as we eat out more (less Quaker, more IHOP).
- __[Delta](https://robinhood.com/stocks/DAL)__'s passenger revenue jumped 50% in March from February, as we traveled outside the Netflix catalog.


_"Revenge (spending) is sweet"              [kali9/E+ via Getty Images]_

Spend

__The US economy has come a long way....__ in a short time. April 2020 seems like eons ago. But just 365 days ago we had: a world-halting pandemic, 22M unemployed, and zero vaccines. We're far from coming full circle, but this March rebound feels like a return to “normalcy.” US consumer confidence is at its highest level since the pandemic began. Nearly 1M jobs were added last month — the biggest gain since August. Now, consumer spending is expected to help propel US economic growth to +6.4% this year — its best rate in decades.


"Revenge Spending” has arrived: retail sales surge as the economy glows up

__At least it has the Slurpee...__ __[Pepsi](https://robinhood.com/stocks/PEP)__ isn’t just the soda you order when they don’t have Coke — it's a multinational snack *beast*. It owns the four big Os of snacking (Cheetos, Doritos, Tostitos, Fritos...and Lay's). It also owns Quaker Oats, and random airplane favorites like SmartPop, Sun Chips, and Sabra hummus. Thanks to  pandemic snacking:

- __Pepsi's sales jumped 9% last quarter,__ despite closed sports stadiums and movie theaters (where XL-sized soda thrives). 
- __But US drink sales also jumped__, thanks to demand for *non*-soda beverages. Like: Gatorade Zero, Starbucks-branded frapps, and Bubly sparkling water (all "functional beverages").

__Big hemp energy...__ Since the 2000s, sales of full-calorie soda in the US have plummeted. So Pepsi has been leaning harder into "functional beverages." Functional = providing more than just sugar/alcohol, enhanced by a healthy(ish) touch. Think: vitamin-packed energy drinks and enhanced waters. This year, Pepsi partnered with Beyond Meat for plant-based snacks and drinks. Another example of its functional focus:

- __Rockstar Energy:__ Pepsi [bought](https://snacks.robinhood.com/newsletters/2N4J8I3LVoH4TJ41Xmtvys/articles/7MwIKLPyFE9qMQ5p4isrVU/) the canned energy drink company back in March 2020 for $4B — its sales hadn't grown in years.
- __B Vitamins and Taurine included:__ Pepsi revamped the brand, gave it a Super Bowl commercial, and launched Rockstar Energy + Hemp in Germany. 
- __Rockstar's sales started growing again__. Now Pepsi is [accelerating](https://www.cnbc.com/2021/04/15/rockstar-energy-sales-growth-returns-after-pepsico-revamps-brand.html) its global expansion, aiming to double Rockstar's footprint over three years.


__Functional = marketing markup...__ People graviate toward products they think make them healthier and/or more productive. Companies like Pepsi know you're willing to pay more for the "functional" alternative (even if that’s just one unpronounceable ingredient). So they're doubling down on it, especially in marketing. From __[Bud](https://robinhood.com/stocks/BUD)__'s hard green tea and coconut water, to Sephora's CBD-infused body oils and hair gummies — the fashion is in the function.  


Pepsi is really a snack company, but it's leaning into "functional beverages"

👖 "Revenge Spending" receipts

__Chase Sapphire Reserve...__ *minus the reserves*. Banks kicked off earnings season with jaw-dropping earnings. __[JPMorgan Chase](https://robinhood.com/stocks/JPM)__ and __[Goldman Sachs](https://robinhood.com/stocks/GS)__ reported first — __[Citi](https://robinhood.com/stocks/C)__, __[BoA](https://robinhood.com/stocks/BAC)__, and __[Morgan Stanley](https://robinhood.com/stocks/MS)__ are up next. A year ago, banks added [billions](https://snacks.robinhood.com/newsletters/7AbTHa6Ld095hkHZCRzEaL/articles/6MiIgW9CSp3vQEIYRasNPN/) in rainy day funds to their reserves. 17M Americans were newly unemployed, so banks set aside $$$ to prep for loan losses. Think: defaults on mortgages and biz loans. But economic healing happened faster than banks expected — and big loan losses never materialized. In fact...

- __Chase had a record quarter.__ Profit ~5X'd from 2020, coming in at a record $14.3B. JPM released $5.2B in loss reserves (which turned into profit).
- __Goldman had a record quarter.__ Revenue more than doubled from 2020 to  $17.7B... and profit hit an all-time high, too. 

__Bankers dropping bangers...__ Your quarterly reminder that Goldman's CEO is an [EDM DJ](https://www.rollingstone.com/politics/politics-news/goldman-sachs-ceo-dj-788267/). The IPO boom also helped banks, *big time*. JPM's investment banking revenue more than tripled, while Goldman's i-banking revenue soared 73%. Corporate and investment banking made up nearly half of JPM's revenue last quarter, and most of Goldman's. 


Reserve

__Banks are selling shovels..__ *to the Wall Street gold rush*. In the first quarter of the year, IPO companies raised a record $162B (compared to $37B in the first quarter of 2020). And SPACs have already raised more in 2021 than they did in *all of 2020*. Banks are the ones making IPOs and SPAC mergers happen — and they're getting paid big bucks for underwriting and advising. Banks with big Wall Street arms (like Goldman and JPM) are cashing in the most. 


Chase and Goldman Sachs score record quarters, thanks to the IPO-palooza

__*Très cool*...__ When your name is so luxurious, it's a mouthful to say: __Louis Vuitton Moët Hennessy__ (aka: LVMH) owns 75 luxe brands, including Dior, Bulgari, and Dom Pérignon. Yesterday, LVMH [posted](https://www.wsj.com/articles/luxury-shares-soar-in-europe-as-lvmh-sales-rebound-11618401340?mod=hp_lista_pos2) quarterly earnings that were a major glow-up from 2020. And its shares soared to a record. 

- __~$17B:__ Sales jumped 30% from last year, thanks to strong demand from China and the US, where LVMH has been opening more stores.
- __~$360B:__ LVMH's market cap makes it Europe’s most valuable company, beating out oil giants and banks. It's even worth more than __[Nestlé](https://robinhood.com/stocks/NSRGY)__ (Earth's largest food company).

__Still in vogue...__ When the pandemic hit, big-spending Chinese and American tourists disappeared from Europe's shopping streets — problematic, since a quarter of LVMH's sales come from Europe. While Europe locked down again *this year*, LVMH proved it could thrive anyway: sales from Asia nearly doubled, while US sales popped 23%. 

- __LVMH created a mass market__ for luxury by offering a spectrum of brands with broad pricing, for a broad customer base – not just the mega-rich.
- __LVMH’s edge = appealing to the *aspirational* rich__. You can get a Marc Jacobs tote for $185... or a Louis Vuitton purse for $4K. A $35 bottle of Hennessy, or a $200 bottle of Dom — it's all in the LVMH fam.


_"The last Louis Vuitton shopper in Milan"         (Alyson Aliano/Stone via Getty Images)_

Luxey

__The "double lookback" is key...__ Earnings are compared to the year-ago period. We're now in a period where earnings are being compared to 2020 (read: pandemic results). Unless a company was a corona-conomy thriver, its earnings likely look *much better* in 2021 than in 2020. LVMH sales soared from the quarter that ended around April 2020 — that's not saying much. But when we do a "double lookback" to 2019, we see that LVMH's sales were 8% higher than they were in *pre*-pandemic times. LVMH passed the "double lookback" test last quarter, proving the strength of its brands.

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