1. __Biden's "New Deal"....__ Since President Biden's [inauguration](https://snacks.robinhood.com/newsletters/44rp3bUdom0Q5pREmL0SR1/articles/49RzO2EFs5wK6FlcAGzWGy/), one major theme has emerged: *spend big on America*. Biden's ambitious "[Build Back Better](https://snacks.robinhood.com/newsletters/44rp3bUdom0Q5pREmL0SR1/articles/6FAZxow6cfIKFXsmBw8RJ2/)" plan involves proposed investments at a scale we haven't seen for decades. On the "Build Back" side: a $1.9T [stimulus](https://snacks.robinhood.com/newsletters/VcXib5c8iwx7WvC2RdU9C/articles/5BY7nmhrMARFVO8RCsWEZi/) to speed up recovery — plus, a "Buy American" executive order to [boost](https://snacks.robinhood.com/newsletters/18OQONWGOCQr3BPWg5Pk03/articles/3jah5iD0LYNNhuXY04QpYJ/) purchases of US-made goods and services. On the "Better" side, the Biden admin is [crafting](https://www.wsj.com/articles/biden-administration-officials-put-together-3-trillion-economic-plan-11616443881) a massive infrastructure package that could cost $3T. It includes spending on roads, bridges, and clean energy infrastructure. Now, economists are [predicting](https://snacks.robinhood.com/newsletters/VcXib5c8iwx7WvC2RdU9C/articles/5BY7nmhrMARFVO8RCsWEZi/) a much faster recovery than previously expected.

2. __The Swinging Bull Market...__ This year, the only question asked more than "did you get vaxed" is "*are we in a bubble*?" The stock market has [continued](https://snacks.robinhood.com/newsletters/7eawMInFcJedKi1Rjr2ZsD/articles/RiJoFnQ3EGCoi4s1E5c0p/) its surge, with the __[S&P 500](https://learn.robinhood.com/articles/7kFFEUv46vmMCmMfLuNiRX/what-is-the-s-and-p-500/)__ and the __[Dow](https://learn.robinhood.com/articles/13urVTf3GSQYdsr7Eq5fHL/what-is-the-dow/)__ hitting fresh records this month. But there's a key difference between this quarter and last year: as the economy recovers and interest rates [rise](https://snacks.robinhood.com/newsletters/TkemicSGU43NTUB9d1ASr/articles/2mJPn77i6fUo7xq3qNVfjA/), investors are moving away from tech  and into "Recovery Stocks" (aka: [cyclical stocks](https://learn.robinhood.com/articles/6SSoCuDTYUitHFQrcPb8Yp/what-is-a-cyclical-stock/#:~:text=A%20cyclical%20stock%20is%20a%20stock%20whose%20value%20rises%20and,stocks%20generally%20decline%20in%20value.)). These are stocks in industries that tend to do well when the economy is growing (and vice versa). Think: travel, construction, retail, and banking. The cyclical-heavy Dow is up 8% this quarter — the tech-heavy __[Nasdaq](https://learn.robinhood.com/articles/1GXPrecRfkSNp0aBblBSsL/what-is-the-nasdaq/)__ index is up barely 2%.

3. __Crypto "Mainstream-ification"...__ Cryptocurrencies and alternative assets reached a peak of social relevance. In January, bitcoin hit its "[big $40K](https://snacks.robinhood.com/newsletters/3LgF2GHrBcJKBJ4WJf1iwx/articles/2nXdL69aReUxvgeSTBY2ox/)" record, pushing the total value of the crypto market above $1T for the first time. It continued surging through March, as corporate investors like __Tesla__, __MassMutual__, and __Square__ [bought](https://snacks.robinhood.com/newsletters/7tG94Z14uUwB4l1unOOkH/) in.  Retail investors poured into crypto too, on apps like __Robinhood__ (aka: us) and __Coinbase__ (which is now going public at a $68B valuation). __Paypal__ said it will let users shop with crypto — and Tesla will now let you buy a Model 3 with bitcoin.  Meanwhile, the [NFT craze](https://snacks.robinhood.com/newsletters/4CMp4ZxaXNDVcia7phbTi8/articles/2dLrCxa5wrlsuga9kmuKtF/) underscored the power of the blockchain, and an appetite for alt investments. 


Themes

The Big Picture: three key themes that defined January to March

-  __143M:__ Covid vaccine doses administered in the US to help stem a pandemic that has taken ~2.8M lives worldwide. 
-  __$1.9T:__ The size of the stimulus package that [passed](https://snacks.robinhood.com/newsletters/VcXib5c8iwx7WvC2RdU9C/articles/5BY7nmhrMARFVO8RCsWEZi/) in March — more than twice as big as the 2009 financial crisis package. 
-  __6.2%:__ The national unemployment rate in February, down from nearly 15% in April 2020 — but almost [double](https://snacks.robinhood.com/newsletters/zVG8BBoAxAmMC9XSil04c/articles/6oRNWLHX5ImjkATSKIBZu3/) pre-pandemic levels.
-  __$162B:__ The record amount raised by companies that went public this year. Only $37B was raised in the first three months of 2020. 
-  __225:__ The number of [SPACs](https://learn.robinhood.com/articles/mxUoK0QpIE1Y8bSNoVpQM/what-is-a-special-purpose-acquisition-company/) that have gone public this year (nearly four/weekday). They’ve already raised [more](https://www.nytimes.com/2021/03/26/business/WeWork-Spac-ipo.html) than they did in all of 2020.
-  __1.685%:__ The 10-year Treasury yield (the interest rate the US government pays to borrow money), which has [tripled](https://snacks.robinhood.com/newsletters/R1vyWz38Uu6QsAteWoFzk/) in a year.
- __$69.3M:__ How much an NFT of a digital collage [sold](https://www.npr.org/2021/03/11/976141522/beeple-jpg-file-sells-for-69-million-setting-crypto-art-record) for at a Christie's auction, setting a crypto art record (*by far*). 


Numbers

The Numbers: seven big numbers that defined the 1st quarter

1. __The "Revenge Economy"...__ is this the quarter the world returns to "normal"? For a year, sweatpants replaced shopping, screens replaced travel, and microwaves replaced restaurants. Thanks to all this non-spending (plus stimulus checks), Americans have socked away [$1.5T](https://www.axios.com/economy-savings-americans-money-wealthy-efd12c61-c587-4669-b7e7-32ce38ef74f4.html) in excess savings. Consumer spending tanked in 2020, but it’s expected to spike in the summer and fall. As life slowly returns to semi-normalcy, we're seeing leading indicators of the "revenge spending" economy. Since mid-March, pandemic travel has been [notching](https://www.tsa.gov/coronavirus/passenger-throughput) record highs, with over 1M people passing through TSA check points each day. "Revenge spending" outside the home on things like vacays, concerts, dining, and (non-stretchy) clothes could be coming. 

2. __The Bull or Bear Market...__ Will the bull market continue? The pessimist case: interest rates have [risen](https://snacks.robinhood.com/newsletters/7eawMInFcJedKi1Rjr2ZsD/articles/RiJoFnQ3EGCoi4s1E5c0p/), the new $1.9T stimulus is sparking inflation fears, and Big Tech is losing its coronaconomy edge. And with the new Dem-controlled government, tech [might](https://snacks.robinhood.com/newsletters/2Z4BofvGDzgoroXZ4OTaiL/articles/75lgUHK9VCoHmFBsxK4D6C/) see more aggressive regulation.  Tech stocks carry massive weight, so a move away from them could depress the market. The optimist case: the Fed says it won't raise rates any time soon, the $1.9T stimulus could bring [faster](https://snacks.robinhood.com/newsletters/VcXib5c8iwx7WvC2RdU9C/articles/5BY7nmhrMARFVO8RCsWEZi/) economic healing, and more than 25% of Americans have been vaccinated. Also: infrastructure investments could boost cyclical stocks longer-term, lifting the market.

3. __The Future of Labor...__ The pandemic has exacerbated income inequality — will reopening help narrow the gap? America is waiting for unemployment to snap back to pre-pandemic levels (3.5%), but this'll likely take longer than three months. 2.5M+ women [dropped](https://snacks.robinhood.com/newsletters/4FiPxYkU4FGEKs36P1LNJJ/articles/4kp1BqJkQIJqk2dJ3iMTuU/) out of the labor force between February 2020 and this January — will they return to work? Wages, unions, and WFH are also top of mind: The Biden admin is [trying](https://snacks.robinhood.com/newsletters/7lIjj1BcdPQ6YavUzzl7AS/articles/2pJzCBY02k6kKdeKYGgSBd/) to raise the federal minimum wage to $15/hour, but it wasn't included in the last stimulus — will we see any federal minimum wage increases? Will there be more major pushes for unionization, like we're [seeing](https://snacks.robinhood.com/newsletters/2ObuixsZ1Fn2mCLQnOBLrW/articles/2KXfHSBO7K9bQnKHCZoiUm/) now at Amazon? Will companies return to the office, or will a hybrid WFH model become the norm? 

Questions

Looking ahead: three major questions for next quarter

Dow Jones

S&P 500

Nasdaq

Bitcoin

90 days. 225 companies covered. Check out which we mentioned most. (FYI on methodology: the companies Snacks covered in Q1, weighted by # of mentions)

🍪  Snacks Special Edition: End-of-Quarter Review

__If all roads lead to Rome...__ then all waterways lead to the Suez. Egypt's famous canal is the most important shortcut in global shipping. It provides the fastest link between Europe's Mediterranean waters and the seas surrounding Asia. Instead of going all the way around Africa, ships can sail straight from Saudi Arabia or India into Europe. So it's unfortunate that...

- __The Suez Canal has been blocked__ by one of the world's largest container ships. The "Ever Given" has been ever-stuck for three days, causing a major traffic jam.  
- __"Days to weeks"...__ How long it could take to move the ship. Experts are digging sand from under it, and trying to straighten it with tugboats. 

__The Diagon Alley of the seafaring world....__ A whopping [12%](https://www.wsj.com/articles/suez-canal-symbol-of-egyptian-pride-and-source-of-conflict-regains-spotlight-11616612429?mod=article_inline) of global trade passes through the Suez. This Ultimate Traffic Jam is bringing billions of dollars of trade to a standstill: each day of blockage disrupts [~$9B+](https://apnews.com/article/cargo-ship-stuck-suez-canal-egypt-d8b6696716ab45794cba583ecf0e4001) worth of goods. Yesterday, at least 150 ships loaded with cargo were waiting to pass through the Suez — and many are carrying oil from the Middle East.

- __Oil prices soared__ yesterday, as massive oil tankers were halted by the jam. [~10%](https://www.spglobal.com/platts/en/market-insights/latest-news/oil/032421-suez-canal-blockage-sends-ripples-through-global-commodity-markets)  of total seaborne oil trade passes through the Suez. 

_You're gonna need a bigger boat..._

Canal

__Technology evolves, but some things never change...__ We’re used to seeing things magically appear at our doorstep. We can get gas in the tank at the swipe of a card, and food in our hands with a tap. But the “backend” of logistics that provides the materials fueling our lives still relies on a few key routes. This Suez fiasco highlights the potential fragility of global trading systems — and the crucialness of the un-techy parts.  


The Suez fiasco: oil prices jump as the world's favorite shipping shortcut gets blocked

__Inside the wallet…__ In honor of Equal Pay Day and Women’s History Month, we’re diving into how American women earn, save, and invest. 

__Earning...__ The first step in money management: having $$$ to manage. Women are the sole or primary breadwinners in [40%](https://www.aauw.org/issues/equity/motherhood/) of US households with kids. They outnumber men in the college-educated workforce, and have received more college degrees than men since 1981. But they still earn less: an average of [82 cents](http://www.equalpaytoday.org/equal-pay-day-2021) for every $1 men earn (aka: the gender pay gap). 

__Saving...__  Even though women earn less, they're better savers. Women allocate [more](https://www.cnbc.com/2021/03/08/personal-finance-money-advice-for-women-how-to-start-investing.html) of their money to savings than men (41% vs. 35%), and save more of their salary (9% vs. 8.6%). Women are also more likely to join workplace retirement plans. Still, men end up with higher net savings: women’s average total retirement savings is just [$23K](https://www.cnbc.com/select/financial-steps-for-women/) — men’s average is over 3X higher at $76K.

__Investing...__ When it comes to investing, women tend to take a more cautious and measured approach than men. Women are good at saving money, but not as good at placing it somewhere where it has the potential to grow. 

- __Women invest less:__ Only [52%](https://news.gallup.com/poll/266807/percentage-americans-owns-stock.aspx) of American women are stock owners, compared to 58% of men. And that includes their retirement investments.
- __Women invest more conservatively:__ Women [tend](https://www.ft.com/content/f3835072-66a6-11e9-9adc-98bf1d35a056) to take a longer-term "buy and hold" view, versus taking frequent action. The average female investor also keeps [68%](https://www.fool.com/research/women-in-investing-research/) of her portfolio in cash and cash equivalents, compared to 59% for men.
- __Women outperform men:__ Decades of studies have [found](https://www.fool.com/research/women-in-investing-research/) that women earn better returns than male investors in the stock market.


__Women have plenty to be confident about…__ They’re disciplined savers and strong investors — but they tend to be less confident in their financial prowess. Only [9%](https://journalnow.com/business/investment/personal-finance/4-reasons-you-should-not-invest-like-a-woman/article_180ce651-2394-5d12-ae77-031266c07185.html) of women believe they make better investing decisions than men, despite evidence to the contrary. Women also tend to be less confident that they’ve planned adequately for retirement, and they scored [lower](https://www.finra.org/sites/default/files/InvestorDocument/p011459.pdf) as a group on FINRA’s financial literacy test. Women have made a lot of financial progress over the past decades. But to truly level the financial playing field, Americans need to close the pay gap and improve financial literacy for all.


Women and Money: how women earn, save, and invest compared to men

__March 24th, 2021__ was Women’s [Equal Pay Day](http://www.equalpaytoday.org/equal-pay-day-2021). It marks the day into the year on which women, on average, have earned what men did in 2020. That’s nearly 15 months of work to reach a man's yearly pay. 

__The What:__ Women working full-time earn an average of 82 cents for every $1 men earn. For Black and Hispanic women, the gap is even wider. 

__The Why:__ A few major reasons why women get paid less than men...

- __The “Motherhood Penalty”:__  Mothers are offered lower salaries and fewer promotions than women without children, as well as men. The result: mothers earn only [73%](https://www.aauw.org/app/uploads/2020/12/SimpleTruth_2.1.pdf) of what fathers earn. Because caregiving responsibilities still fall disproportionately to mothers, women are also more likely to take time out of the workforce, postponing advancement. 
- __Occupational segregation__, when one sex is overrepresented in a job sector, accounts for as much as [51%](https://www.aauw.org/app/uploads/2020/12/SimpleTruth_2.1.pdf) of the wage gap. Jobs with more men (like construction and IT) tend to pay better, [regardless](https://equitablegrowth.org/fact-sheet-occupational-segregation-in-the-united-states/) of skill or education level. Jobs that are predominantly done by women (like childcare and education), are less valued in the labor market. And even within the same fields and roles ([like](https://study.com/blog/why-is-the-hr-profession-dominated-by-women.html#:~:text=According%20to%20the%20BLS%2C%20male,%241%2C737%20average%20for%20male%20managers.): HR manager), men tend to be paid more than women.


Unpacked

Snacks Unpacked: The Gender Pay Gap

🚢  You're gonna need a smaller boat

__Crunchy on the outside...__ techy on the inside. __[Yum Brands](https://robinhood.com/stocks/YUM)__ is the fast-food icon that owns KFC, Pizza Hut, and Taco Bell (aka: Ken-taco-hut). Since digital orders surged during the pandemic, Yum is becoming less fry cook, more Tim Cook. It just [made](https://www.cnbc.com/2021/03/24/taco-bell-owner-yum-brands-buys-social-media-ordering-platform-tictuk.html) its second tech acquisition in less than a month:

- __Tictuk:__ Not a typo. Tictuk is the hilariously-named Israeli startup that lets you order food from social media and messaging apps (but is there a TikTok integration?). 
- __Yum bought Tictuk__ to capitalize on “conversational commerce," which makes ordering a Crunchwrap Supreme as easy as sending a text (or a FB message).

__Techy and I know it...__ Yum's digital sales in 2020 hit a record of  $17B, up ~45% from 2019. Now it's doubling down on tech. We know that because its CFO [said](https://www.cnbc.com/2021/03/24/taco-bell-owner-yum-brands-buys-social-media-ordering-platform-tictuk.html) "omnichannel" and "frictionless" in the same sentence (describing its ordering strategy). It's also apparent in Taco Bell's futuristic [makeover](https://www.cnn.com/2021/03/23/business/taco-bell-go-mobile-restaurant/index.html):

- __"Go Mobile":__ Taco Bell's digital-focused new restaurant design. It includes: dual drive-thrus, smaller dining rooms, curbside pickup, and "bellhops" taking orders on digital tablets. TB is planning to expand "Go Mobile" nationwide, for at least 30 locations by the end of 2021.


Crunch

__iPhone architecture is here...__ We've all seen apps designed for iPhone. But Taco Bell's techy restaurant is one of the first physical *stores* designed for iPhone. __[Chipotle](https://robinhood.com/stocks/CMG)__ did something similar in November with digital-only, table-free restaurants (see: [Chipotlanes](https://www.businessinsider.com/chipotles-chipotlane-drive-thru-review-2021-1)). As ecommerce eats everything, we'll likely see more mobile-optimized store formats. AKA: iPhone architecture. 

KFC-owner Yum Brands just made its biggest move in a year: Taco Bell 2.0 

__Major throwback...__ The Intel sound logo when your PC turned on.  __[Intel](https://robinhood.com/stocks/INTC)__ used to be one of the 10 most valuable companies in the world. But it lost its mojo: its current stock price is lower than it was during its peak in 2000. Intel's new boss wants to get the mojo back...

- __Reboot:__ [According](https://www.cnbc.com/2021/03/23/intel-makes-foundry-strategy-shift-under-new-ceo-pat-gelsinger-.html) to Intel's new CEO Pat Gelsinger: "Intel is back. The old Intel is now the new Intel." Soo metaphysical. 
- __The plan:__ More outsourcing, but also [more](https://www.wsj.com/articles/intel-ceo-fast-tracks-turnaround-bid-with-20-billion-investment-plan-11616533200https://www.wsj.com/articles/intel-ceo-fast-tracks-turnaround-bid-with-20-billion-investment-plan-11616533200) manufacturing. Intel isn't abandoning its status quo of both designing *and* producing its own chips. Case in point...
- __$20B:__ How much Intel will invest into two new chip factories in Arizona. ICYMI, chips are a hot commodity right now (see: [The Great Chip Shortage](https://snacks.robinhood.com/newsletters/31E6cwe7ndD6pM602Hiv9R/articles/3Nn6tVCu3oGQg2XsCbQmyc/)).

__*The real kicker*...__ Intel plans to lean into making chips for *other* companies, too (aka: "foundry" services) — that got investors excited. Intel has primarily manufactured only its own chips. Now, it's going to use its factories for other companies' chips, too — even its competitors'. This is also a revenge move...

- __Intel used to provide chips for Macbooks__ and iPhones. Then __[Apple](https://robinhood.com/stocks/AAPL)__ [broke](https://www.cnbc.com/2020/11/10/why-apple-is-breaking-a-15-year-partnership-with-intel-on-its-macs-.html) the relationship and replaced Intel laptop processors with its own chips (and Intel’s smartphone chips with __[Qualcomm](https://robinhood.com/stocks/QCOM)__'s).
- __Now Intel is courting [Microsoft](https://robinhood.com/stocks/MSFT),__ __[Google](https://robinhood.com/stocks/GOOG)__, Qualcomm, and others with its foundry services. The equivalent of a "thriving without u in Hawaii" Insta post. 


Chip

__Intel thinks it can be Captain America...__ In February, President Biden [signed](https://snacks.robinhood.com/newsletters/6uYolzxCCtClxeixKF32XX/articles/5tfbcYArsS9r3c4MRUBUbg/) an exec order to address critical shortages in the US supply chain — including chips. The Great Chip Shortage is shutting down American car factories and disrupting global production. But more than 80% of chip production happens in Asia. By investing $20B into US chip manufacturing instead of outsourcing to other counties, Intel hopes it can become the Captain America of chips once more.

Intel is splurging $20B to become the Captain America of chips (again)

_Taco Bell's Tim Fry Cook moment_

🌮 Taco Bell goes full iPhone

__Ready gamer one...__ __[GameStop](https://robinhood.com/stocks/GME)__  just dropped its first earnings report since its big stock pop. ICYMI (unlikely): from December to late January, GameStop shares [surged](https://snacks.robinhood.com/newsletters/6jwYdiy4al8n5v0GOdIik/articles/3BaPiKzHQyiMoyxvpIyqNG/) 1,000%. Since their January 27th all-time high, shares have fallen 48% — but are still up nearly 2,000% over the past six months. Without further ado.... here are the numbers for the three months ended January 30:

- __-3%:__ GameStop's quarterly sales dipped 3% from 2019 to $2.1B — slightly lower than Wall Street estimates. 
- __~4X:__ Profit nearly quadrupled to $81M, but that was mostly thanks to a $70M tax benefit. And it was still much less than analysts expected.
- __+175%:__ The brightest spot in GameStop's earnings was ecommerce sales, which nearly 3X'd in the quarter and made up a third of total sales. 

__Less "Blockbuster of video games"...__ more "Amazon of video games." That's the strategy GameStop is [going for](https://www.cnn.com/2021/03/23/tech/gamestop-earnings-q4-2020/index.html) in 2021. In 2020, it closed ~700 of its 5K stores. Now, it’s leaning on new leaders to change course:

- __In January,__ GameStop added former Chewy CEO Ryan Cohen (and two of his Chewy pals) to its board. Some investors hope the Chewy ecommerce experts can make GameStop less mall-retailer, more digital shop.
- __In February,__ GameStop appointed Matt Francis, a former Amazon Web Services engineering leader, as its first-ever chief technology officer in charge of ecommerce and tech.


__The past can inform the future...__ Flashback to the glory days: from August 2009 to October 2010, GameStop pulled in nearly ~$6B in sales and $170M in profit. For fiscal year 2020: GameStop pulled in ~$5B in sales and lost more than ~$215M. Its ecommerce numbers from last quarter are encouraging. But it remains to be seen whether GameStop’s new leaders can restore its financials to glory day status – and to what extent investors will act on those fundamentals.


GameStop's moment of truth: the first earnings report since January’s big stock pop

__If the government did a "40 under 40" list...__ Lina Khan would probably be on it. President Biden just [nominated](https://www.cnbc.com/2021/03/22/biden-nominates-tech-critic-lina-khan-to-the-ftc.html) the 32-year-old Columbia law school professor to  be one of five commissioners at the Federal Trade Commission. If appointed, she would be the youngest FTC commissioner in history. FTC = the US govt agency that enforces anti-monopoly laws and promotes consumer protection. 

- __Antitrust scholar:__ In 2017, Khan graduated from Yale Law School, where she [published](https://www.yalelawjournal.org/note/amazons-antitrust-paradox) a paper called “Amazon’s Antitrust Paradox." It went viral, becoming the most-read law article.
- __Tech critic:__ Khan has been a vocal critic of Big Tech power, calling for a wider interpretation of antitrust law and potential harm to consumers.

__Antitrust could get a lot more "anti"...__ Khan has said that we need "a new vocabulary" for addressing Big Tech's dominance. That could mean championing to expand the scope of antitrust law. She's part of a new movement, sometimes referred to as "Hipster Antitrust" (lol).

- __Hipster Antitrust__ argues that US law focuses so much on short-term price benefits to consumers, that it fails to protect competition. 
- __For example:__ Khan's viral paper argues that while __[Amazon](https://robinhood.com/stocks/AMZN)__ can benefit consumers by aggressively lowering prices, its power to price out competitors could hurt consumers by reducing options and innovation. 


_Big Tech reading the "new vocabulary"_

__Big Tech could have big(ger) problems...__ There have been many hearings and lawsuits on Big Tech's power over the past few years — but not many consequences. If appointed, Khan would vote on important antitrust and consumer protection decisions. Possibly including: whether to block acquisitions by large companies like __[Google](https://robinhood.com/stocks/GOOGL)__, break up Instagram and __[Facebook](https://robinhood.com/stocks/FB)__, or ban __[Apple](https://robinhood.com/stocks/AAPL)__ from offering its own apps on the App Store. It could take years for major changes to happen, but Khan's appointment poses a fresh challenge for tech cos. 


Big Tech critic Lina Khan is nominated to the FTC — and antitrust could get a lot more "anti"

🎮  GameStop drops the numbers 

__Call her ZaaSy...__ __[Zoom](https://robinhood.com/stocks/ZM)__ has become a verb, a meme, and a lifestyle. Despite that powerful brand clout, Zoom's latest service involves *un*-branding itself. Zoom will [license](https://www.wsj.com/articles/zoom-wants-you-to-zoom-even-when-using-other-companies-apps-11616419800?mod=tech_lead_pos3) its video conferencing tech to *other* apps. We're calling it Zoom-as-a-service. 

- __ZaaS:__ Companies will be able to weave an unbranded version of Zoom into their products. Think: dating apps, telehealth providers, and social media. 
- __AaaS:__ __[Amazon](https://robinhood.com/stocks/AMZN)__ is sneakily offering something similar with its own  video conferencing tools. Those __[Slack](https://robinhood.com/stocks/WORK)__ video calls? They happen through Amazon (Bezos is everywhere). 

__A (pre) post-pandemic crisis...__ This past year, Zoom has been a coronaconomy star. In 2020, its sales quadrupled to a record $2.7B. In October, it notched a stunning $170B valuation as its stock soared. *Since* then, three vaccines have started rolling out — and Zoom shares have fallen ~40%. Now, Zoom's looking at other ways to grow. 

- __One product, many applications:__ Instead of launching new products, Zoom is expanding use cases for its *existing* product (basically, just video).
- __Last year,__ Zoom announced OnZoom, which lets people charge for events they host (think: pilates class). With Zaas, Zoom is becoming more than just a standalone app — it'll be invisibly integrated into apps you use each day.


ZaaS

__Don't let brand drive ego...__ Sometimes, brands can do more for themselves by *un*branding. Just look at __Stripe__: its brand is "invisible," but it just [became](https://snacks.robinhood.com/newsletters/537dMBHls4pXZImAT8l4a5/articles/5D5Pjg6Pr7IAFPhc6VHxLR/) America's most valuable startup. Brand recognition is key to consumer-facing businesses like Zoom. But companies can't let their ego get in the way of good opportunities. If Amazon forced Slack to stick "powered by Amazon" on its video calls, Slack might've passed. By setting aside its ego with Zaas, Zoom is giving itself a new post-pandemic growth opportunity. 


Zoom's having a (pre) post-pandemic crisis, so it's launching Zoom-as-a-Service

__Forget SpaceX shuttles...__ The hottest transportation story on Wall Street yesterday was a railroad merger. __[Canadian Pacific Railway](https://robinhood.com/stocks/CP)__ has agreed to buy __[Kansas City Southern](https://robinhood.com/stocks/KSU)__ in a $25B cash-and-stock deal. It's the biggest merger announcement of the year so far. If approved, it would create the first railroad network connecting the US, Mexico, and Canada. 

- __~20K miles:__ The distance the new company would operate, generating [~$8.7B](https://www.nytimes.com/2021/03/21/business/railroad-merger-us-mexico-canada.html) in sales per year. Start planning your Toronto-Vegas-Cabo trip (if you're a car part or grain product).
- __Kansas City Southern__ shares jumped 11% to a record high yesterday, and have more than doubled in value over the past year. 

__It's fun to stay at the USMCA...__ USMCA = US-Mexico-Canada Agreement. Trump [signed](https://snacks.robinhood.com/newsletters/6o51B328c2PZ6b2emhs3sT/articles/75iLASu5grXTHB5dBEX2ez/) the major trade treaty into law last year to replace NAFTA. This railroad deal is an effort to capitalize on an anticipated post-pandemic increase in North American trade. 

- __"Build Back Better"__: President Biden has pledged to spend trillions on infrastructure (think: roads and bridges). That could benefit railway companies like Kansas City that are [transporting](https://www.kcsouthern.com/en-us/why-choose-kcs/work-with-us/what-we-ship) gravel, metal, machinery, and other building materials cross-country.
- __"Clean energy future:"__ Another focus of Biden's BBB plan. Rail is 4X more fuel efficient than trucking. One train can keep 300+ trucks off public roads and produce 75% less greenhouse gas emissions.

Rail

__It's possible to invest in public policy...__ Cannabis stocks can be an investment in the possibility of federal marijuana legalization. Electric vehicle stocks can be an investment in environmental regulation and government-sponsored EV subsidies. By buying Kansas City, Canadian Pacific is investing in North American trade policies and a potential spending boost from Biden's infrastructure proposal. 


The biggest merger of the year so far: we're talking railroads, Biden, and the USMCA

_On the (rail)road again..._

🎥  Zoom-as-a-Service

__Can't funge this...__ What do Jack Dorsey's first tweet, Nyan Cat meme, and a viral skateboarding [TikTok](https://www.entrepreneur.com/article/367518) have in common? They're all NFTs, aka: non-fungible tokens. NFTs are like one-of-a-kind trading cards (but digital) — instead of living in a glass case, they live on a crypto blockchain. But unlike bitcoin and other currencies, they can't be exchanged like-for-like. Hence, "non-fungible."  You can trade $1 for $1, but you can't trade Dorsey's first tweet for Dorsey's first tweet (you *can* [sell](https://www.cnbc.com/2021/03/09/jack-dorseys-first-tweet-on-track-to-sell-for-2point5-million-and-hell-donate-the-money.html) it for $2.5M, though). 

__Nyan Cat is a crypto star...__ so are Logan Paul Pokémon cards ([really](https://www.tubefilter.com/2021/03/01/logan-paul-unboxes-pokemon-cards-accompanying-nfts/)). NFTs can be tied to any digital asset, from songs to video clips. And they’ve been tied to physical objects, too ([see](https://thenextweb.com/hardfork/2019/12/10/nike-blockchain-sneakers-cryptokick-patent/): Nike CryptoKicks). While they've been around for years, NFTs have blown up recently — especially in the art world. 

- __$69.3M:__ How much an NFT jpeg by Beeple [sold](https://qz.com/1982872/an-nft-backed-jpeg-sold-for-69-3-million-at-a-christies-auction/) for at a Christie's auction earlier this month. Now he's one of the three most valuable living artists.
- __$6M:__ How much musician Grimes [got](https://www.theverge.com/2021/3/1/22308075/grimes-nft-6-million-sales-nifty-gateway-warnymph) for 10 NFTs of digital art.

__Fungible flex factor...__  NFTs certify your ownership of the original asset... even though everyone can see and download the same Beeple jpeg for $0. Also: the artist can [retain](https://www.theverge.com/22310188/nft-explainer-what-is-blockchain-crypto-art-faq) all usage rights to the work. While buyers don't get paid from views, they *do* get the knowledge that somewhere in the blockchain their name is written in permanent crypto Sharpie on an asset. And if the hype continues, they might be able to sell their NFT at a profit (but it could lose value, too). 


_Googling: "How to NFT art heist"_

Fung

__NFTs could revolutionize the creator economy...__ if they become more than a fad. There are already marketplaces that allow people to buy and sell NFTs, including __Nifty Gateway__ and __OpenSea__ (which just [raised](https://techcrunch.com/2021/03/18/nft-marketplace-opensea-raises-23-million-from-a16z/) $23M in funding). NFT creators can even enable a feature that gets them paid *each time* their work changes hands. Now, smaller artists are NFT-i-fying their work. And people are willing to shell out $$$ to claim ownership and support their fave creators: the NFT market quadrupled to [$250M](https://www.nytimes.com/2021/03/11/arts/design/what-is-an-nft.html) in 2020, and has soared this year. If they stick, NFTs could be a new avenue for creators to monetize their work.


Cryptic collectables:  NFTs are having a pre-mainstream, mainstream moment

__Take me to your lidar...__ __[Luminar](https://robinhood.com/stocks/LAZR)__ makes lidar tech that lets self-driving cars "see" their surroundings. By shining lasers at objects, Luminar's tech can prevent autonomous whips from hitting light poles. Luminar stock jumped 17% on Friday, after it [delivered](https://investorplace.com/hypergrowthinvesting/2021/03/luminars-strong-update-is-exactly-what-lazr-stock-needed-to-wake-up/) a reassuring business update — *and* notched a key partnership with one of China's largest carmakers: __SAIC Motor__ [plans](https://www.cnbc.com/2021/03/18/saic-motor-to-use-luminar-sensors-in-high-tech-line-of-vehicles.html) to use Luminar's lidar sensors in its new line of cars. Luminar also recently [sealed](https://www.reuters.com/article/luminar-technolo-volvo-idUSL1N2L9082) a deal to provide tech for __Volvo__'s self-driving subsidiary. 

__Wine valise FTW...__ __[Williams-Sonoma](https://robinhood.com/stocks/WSM)__ probably invented the wedding registry. But despite all the canceled 2020 ceremonies, the home goods legend [had](https://snacks.robinhood.com/newsletters/7uaQaREChnObFRSEbrmrod/articles/1128TqUxx67tTPKuHnt5R2/) its best year of sales *ever* — and the stock soared 29% for the week. *All* of WS' brands (Williams Sonoma, Pottery Barn, and West Elm) saw double-digit growth last year, and total sales climbed 26% from 2019. WS was a double coronaconomy winner, benefiting from the House Hype and a digital-first strategy: 70% of its sales were online.  


Highs

Who's up...

__Banking on it...__ Bank stocks including __[Chase](https://robinhood.com/stocks/JPM)__, __[Citi](https://robinhood.com/stocks/C)__, and __[Wells Fargo](https://robinhood.com/stocks/WFC)__ dipped on Friday after the Fed [declined](https://www.cnbc.com/2021/03/19/the-fed-will-not-extend-a-pandemic-crisis-rule-that-had-allowed-banks-to-relax-capital-levels.html) to extend a pandemic-era exemption that lowered their capital requirements.  This means banks could have to keep more $$$ in their coffers to meet requirements each night. That could lower the amount of cash banks have available to lend out. Generally, the less available something is, the pricier it becomes — so the cost of borrowing cash could rise (read: higher interest rates on loans). Banks had been lobbying for an extension.

__Black Cab vs. Uber Black...__ Last month, __[Uber](https://robinhood.com/stocks/UBER)__ lost a major labor battle in the UK (one of its largest markets). *Last week*, Uber made it official by [reclassifying](https://snacks.robinhood.com/newsletters/1pA68KIKChD9WMr3DJ2OMP/articles/2sYAJhcq3cv7kMzg2aLfHE/) its 70K UK drivers as "workers." The less gig-y new employment status includes vacation pay, pensions, and a minimum wage. These fresh benefits could be pricey for Uber, but they're not as expansive as they sound. Still, they set a precedent that could inspire more labor activists in other countries to push for change. That's  likely why Uber stock dipped 5% for the week.

Lows

...and who's down

🖼  NFTs = crypto Sharpie 

__*Hester has seen it all*...__ Hester Ford is the [oldest](https://gerontology.wikia.org/wiki/Hester_Ford) living person in America. A lot has changed during her 115 years of life, including how women are shaping society. When Hester was born in 1905, American women were 15 years away from getting the right to vote in elections. Now, women are also voting on the boards of all of America’s largest corporations. Since Katharine Graham became the first woman named CEO of a Fortune 500 company in 1972, corporate diversity has increased — but there’s still a long way to go to reach gender parity: 

- __All S&P 500 boards include at least one woman__. In January, women [gained](https://www.bloomberg.com/news/articles/2021-02-23/women-gained-22-seats-on-s-p-500-boards-in-january-surge?sref=q3KSFp38) 22 more S&P board seats, the biggest jump in nearly two years.
- __But men still make up more than 70%__ of all S&P board seats — and over *90%* of all S&P 500 CEOs. While the number of female Fortune 500 CEOs hit a record in November, women still make up only 40 (out of... 500). 

__Profits and performance...__ Diverse representation is key to achieving equal opportunity, but is also correlated to financial benefits. Many studies [indicate](https://www.cnbc.com/2019/10/14/female-leaders-may-boost-share-price-performance-credit-suisse-says.html) that companies with more gender diversity perform better. 

- __Profits:__ When women are well represented in leadership, companies are [25%](https://www.mckinsey.com/~/media/McKinsey/Featured%20Insights/Diversity%20and%20Inclusion/Diversity%20wins%20How%20inclusion%20matters/Diversity-wins-How-inclusion-matters-vF.pdf) more likely to outperform their peers on profitability. 
- __Stocks:__ Shares of companies with female CEOs [outperformed](https://www.cnbc.com/2019/10/18/firms-with-a-female-ceo-have-a-better-stock-price-performance-sp.html) those of companies led by men by an average of 20% over two years — and have outperformed them almost every year since 2010. 

__Pushing for change...__ from the top down. Governments and corporations are making moves to improve corporate gender diversity. California requires all public companies to have at least one female board director. Companies like __[Starbucks](https://robinhood.com/stocks/SBUX)__, __[Chipotle](https://robinhood.com/stocks/CMG)__, and __[McDonald's](https://robinhood.com/stocks/MCD)__ have tied exec pay to diversity goals. The __[Nasdaq](https://learn.robinhood.com/articles/1GXPrecRfkSNp0aBblBSsL/what-is-the-nasdaq/)__ is pushing for SEC approval to implement a board diversity rule for the ~3K companies listed on its exchange. 


_Peep those numbers_

__Top-down policies aren’t enough...__ if there’s a “broken rung” problem. Executive diversity targets don't solve the full equation — women also need equal opportunities on their way to the C-suite. Women are underrepresented at every level of the corporate ladder, from entry roles to exec positions. For every 100 men newly promoted to manager in 2020, only [~85](https://www.mckinsey.com/~/media/McKinsey/Featured%20Insights/Diversity%20and%20Inclusion/Diversity%20wins%20How%20inclusion%20matters/Diversity-wins-How-inclusion-matters-vF.pdf) women were promoted — and this number is even lower for women of color. What’s more, women’s representation drops as seniority rises. For women to be equally represented, change needs to happen from the bottom-up, too.

More women are leading corporate America — and their companies are performing better

__Dude, where's my wine valise?...__ __[Williams-Sonoma](https://robinhood.com/stocks/WSM)__ is the furniture and kitchenware retailer that probably invented wedding registries. It calls itself “the world’s largest digital-first, design-led, and sustainable home retailer” (with that many descriptors, it’s hard not to be first). WS just had its best year of sales growth *ever*, thanks to the House Hype. 

- __Growing together:__ All of WS' brands — William Sonoma, Pottery Barn, and West Elm — saw double-digit growth for the quarter and the full year.
-  __Growing faster:__ Total sales jumped 26% last quarter from 2019, accelerating from previous quarters.
- __Growing post-pandemic:__ WS isn't worried, saying people will decorate homes to entertain guests. It also has a “substantial luggage business” to complement travel. See: [wine valise](https://www.williams-sonoma.com/products/vineguarde-valise-grande-12-bottle-wine-suitcase/).

__More than hype...__  It's no surprise that WS thrived in the coronaconomy — its mission is [literally](https://s24.q4cdn.com/161876561/files/doc_presentations/2020/11/IRDeck10-20_v7.pdf) to “enhance the quality of people’s lives at home” (womp). But it *also* benefited from something that's rare in the home goods industry: a digital-first strategy. WS launched ecommerce waaay back in 1998 — now, online-first is one of its key differentiators.

- __80%__ of all US home goods sales come from stores. But 70% of William Sonoma's sales happen online.
-  __That online expertise__ prepped WS to thrive in 2020 and reach Millennials, who have driven its recent growth. But it has another differentiator, too...

_When TSA confiscates your wine valise_

Valise

__WS has a full "Milestone Brands Suite"...__  It's winning on the cradle-to-retirement strategy, with brands catered to every life stage. Just had a baby? Go to Pottery Barn Kids. Tween wants their own room? Head to Pottery Barn Teen. Tying the knot? Hit William Sonoma for the wedding registry. Moving into your first home? Try West Elm. Just retired? Upgrade to Williams Sonoma. These milestone brands create lifetime loyalty and recurring sales — and an edge over Millennial-focused __[Wayfair](https://robinhood.com/stocks/W)__ and luxury-focused __[Restoration Hardware](https://robinhood.com/stocks/RH)__.

Williams-Sonoma has its best year ever with its Milestone Brands (they're with you for life)

 🛋  Williams-Sonoma has you for life

__Don't know what a Nissan Sentra looks like...__ Didn't see it coming: __[Uber](https://robinhood.com/stocks/UBER)__ lost a major labor battle last month, when the UK's Supreme Court [ruled](https://www.wsj.com/articles/uber-faces-setback-as-u-k-court-rules-drivers-are-entitled-to-worker-rights-11613729882?mod=article_inline) that its drivers are entitled to a minimum wage and other worker benefits. *This week*, Uber [made](https://www.wsj.com/articles/uber-faces-setback-as-u-k-court-rules-drivers-are-entitled-to-worker-rights-11613729882?mod=article_inline) the worker reclassification official. 

- __Fresh status:__ Uber granted its 70K UK drivers a new (less gig-y) employment status that includes vacation pay, pensions, and a minimum wage. 
- __Fresh costs:__ The UK is one of Uber's largest markets, making up ~6% of gross ride bookings at the end of 2020. So the shift could be pricey...

__But not as pricey as you'd think...__ Uber usually doesn't pay its drivers wages — it just connects them to riders, then keeps ~25% of the fare. While the new UK benefits sound costly, they're not as expansive as they sound. 

- __What disappointed labor activists:__ Drivers are guaranteed minimum wage only *after* they've accepted a trip (not if they’re just in the app looking for work). Also: Uber Eats delivery drivers aren't included in the change.
- __Uber says__ the average driver already makes more than the UK minimum wage of ~$12/hour. And that it would be illogical to pay them while they're potentially working on another app (like Lyft) at the same time. 


__The real story isn’t the details...__ *It's the precedent.* In November, Uber [scored](https://snacks.robinhood.com/newsletters/7jMUu1TK8PviqbKCFjQhjC/articles/f06IOakKwXbXOcwTVNbjX/) a major victory when CA voters said "Yes" to Prop 22. Uber had threatened to *leave* CA if it was forced to reclassify gig drivers as employees. But now that Uber has given UK drivers a new status, it could inspire more labor activists to push for change globally (and more lawsuits). That precedent is likely why Uber stock sank 4% yesterday.


Uber reclassifies UK gig drivers as "workers" — now it could have a precedent problem

__This video is sponsored by...__ __Squarespace__ has helped millions of non-coders build their own websites. It just [raised](https://techcrunch.com/2021/01/27/squarespace-files-privately-to-go-public/) $300M at an impressive $10B valuation — and though it was founded in 2003, its valuation has 5X’d in just the past three years. That's probably how it paid for its Dolly Parton Super Bowl [commercial](https://www.youtube.com/watch?v=y8jF96hoF9M&t=78s). In addition to hosting your sizzle reel website, Squarespace has also expanded to hosting online stores (great timing).

__Double SUMO...__ Squarespace is still private, so regular investors are straight up missing out on its growth (it's a SUMO stock). But investors are SUMO'ing on its financials, too: Squarespace filed *confidentially* to go public in January, staying secretive with its numbers. Case in point: a one-paragraph [post](https://newsroom.squarespace.com/blog/squarespace-raises-300-million-investment-round-at-10-billion-valuation) was all we got about the latest fundraise. While we barely know anything about Squarespace’s $$$, we *do* know about its publicly-traded rival __[Wix](https://robinhood.com/stocks/WIX)__ (also a website builder with ecommerce hosting): 

- __$17B:__ Wix's market value. The stock has more than 3X’d in the past year as the world economy moved further online.
- __+30%:__ Wix's sales growth accelerated from 2019 to 2020, and it expects that momentum will carry through this year. 
- __+107%:__ Wix's subscribers (who pay for monthly hosting) more than doubled from the end of 2019 to the end of 2020. But its yearly loss also doubled.


__Lookout for the comp...__ to understand the private. With public companies, the market decides value. With private companies, it's a comparison game. To determine private company valuations, investors look at their publicly-traded *competitors*. They find similar companies in the same industry to gauge the private company's growth potential and value. As businesses moved online and people took on more side-gigs during the pandemic, Wix had its "most successful year in history." This gives us a hint as to what Squarespace might've experienced (despite its invisible numbers).

Website builder Squarespace hits a $10B valuation (but we need to look at Wix)

_Eyes on the competition_

🇬🇧 Uber's big gig loss 

__Flashback to 2015...__ That's when the EPA outed __[Volkswagen](https://robinhood.com/stocks/VWAGY)__ for programming its cars to pass diesel emissions tests — while they were *actually* emitting up to 40X more (outside of the tests). After the Dieselgate scandal, VW earned a rep for being the *opposite* of green. Flashforward to 2021...

- __Volkswagen is tying its fate to electric cars__ and taking on __[Tesla](https://robinhood.com/stocks/TSLA)__. According to its CEO, VW [wants](https://www.cnbc.com/2021/03/16/volkswagen-ceo-says-he-wants-to-get-close-and-then-overtake-tesla.html) to "get close" to "*and then overtake*" Tesla. Your move, Technoking.

__"Power Day"...__ VW's not-so-subtly titled event to [show](https://www.nytimes.com/2021/03/15/business/volkswagen-electric-cars-tesla.html) how it will overtake Tesla with its new electric tech (sorry, Battery Day). Some highlights:   

- __Cost-slashing:__ VW said it'll slash the cost of batteries (the priciest part of EVs) by up to 50% by 2030 — making its EVs cheaper than gas cars.
- __Convenience-boosting:__ By 2030, it'll slash battery charging time to 12 minutes — on par with how long it takes you to figure out which side of the car your fuel filler is on (*every time*).
- __Range-soothing:__ VW says it'll have 18K fast-charging stations across Europe by 2025, to soothe nagging range anxiety (the fear of running out of e-juice in a gassy world).
- __Battery-building:__ VW is building six battery factories in Europe. 


Electrify

__VW is giving a masterclass in delegation...__ While Tesla tries to do everything *itself*, VW is going with a partnership strategy. Those battery factories? They're being built alongside suppliers like Sweden's __Northvolt__. Those 18K charging stations? __[BP](https://robinhood.com/stocks/BP)__ and other companies are providing the electric juice. Volkswagen's EV platform (motor, chassis, etc)? It's sharing with __[Ford](https://robinhood.com/stocks/F)__, who plans to use it to build some of its own EVs. In the race to go green, collaboration could be key to scaling faster... and cheaper. 

Volkswagen gears up to challenge Tesla's dominance (with help from its friends)

__Recheck the checking account...__ Last week, President Biden's $1.9T stimulus bill [passed](https://snacks.robinhood.com/newsletters/VcXib5c8iwx7WvC2RdU9C/articles/5BY7nmhrMARFVO8RCsWEZi/), and $1.4K checks started rolling out. Now, Biden is [turning](https://www.cnn.com/2021/03/15/politics/biden-taxes-white-house-plans/index.html) his attention from distributing trillions to raising taxes... on corporations and the wealthy. This would be the first major tax hike in nearly *30 years*. Some of the proposals [reportedly](https://www.bloomberg.com/news/articles/2021-03-15/biden-eyes-first-major-tax-hike-since-1993-in-next-economic-plan?sref=q3KSFp38) being considered: 

- __Raising the corporate tax rate to 28%__ from 21%. Trump slashed it to 21% from 35% in 2017. 
- __Raising the income tax rate on people__ making $400K+ per year (less than 10% of total tax payers).
- __Raising the capital-gains tax rate__ (what you pay when you sell investments at a profit) for people earning at least $1M/year. 

__Hut, hut, hike...__ Some of the proposed hikes could hurt US GDP and wages long-term, [according](https://taxfoundation.org/biden-corporate-income-tax-rate) to the Tax Foundation (an independent think tank). Theoretically, the more $$$ companies spend on taxes, the less they have for growth and investments. But thanks to tax breaks and loopholes, America’s largest corporations paid an average tax rate of just [~11%](https://www.washingtonpost.com/business/2019/12/16/corporations-paid-percent-tax-rate-last-year-steep-drop-under-president-trumps-law/) on 2018 profits. Tax hike proposals are likely to get serious pushback. So why is Biden doing it?

- __Pay for "Build Back Better":__ Biden [pledged](https://snacks.robinhood.com/newsletters/44rp3bUdom0Q5pREmL0SR1/articles/6FAZxow6cfIKFXsmBw8RJ2/) $2T to clean energy innovation, and trillions more to building a modern infrastructure (think: roads, bridges). That could cost ~$7T.
- __Curb the debt:__ While the $1.9T stimulus was financed entirely by US government IOUs (aka: debt), the BBB plan likely *won't* be. Higher taxes could help pay for BBB, without adding to the US’ $28T debt. 
- __Deliver:__ Dems have been calling for higher taxes on the rich and corporations. Biden could fulfill his campaign promise of doing that.


Hike

__Staying competitive is key...__ For decades, countries have been competing with each other to attract corporate investment for economic growth. The main way to do that: *lower taxes for companies*. In 2000, more than [55](https://www.washingtonpost.com/us-policy/2021/03/15/yellen-pushes-global-minimum-tax-white-house-eyes-new-spending-plan/) countries had corporate tax rates above 30% — now, less than 20 do. The global average was 24% in 2018. By raising the rate to 28%, the US could lose corporate activity to other countries. That's why Treasury Secretary Janet Yellen is [trying](https://www.washingtonpost.com/us-policy/2021/03/15/yellen-pushes-global-minimum-tax-white-house-eyes-new-spending-plan/) to forge an agreement with other countries for a *global* minimum corporate tax. 


Higher taxes could be coming for America's wealthy — and companies everywhere

_Get close to, then overtake_

🚗 Operation Overtake Tesla

__Move over, Technoking...__ __Stripe__ has officially surpassed Elon's __SpaceX__ to become the most valuable private startup (ironically, Elon is a Stripe investor... so *he wins anyway*). The digital payments unicorn now has 95 horns, after raising $600M in fresh funding at a chunky [$95B](https://www.cnbc.com/2021/03/14/stripe-valued-at-95-billion-in-600-million-funding-round.html) valuation. That's nearly 3X its last reported valuation from April 2020. For reference: __[Facebook](https://robinhood.com/stocks/FB)__'s last valuation before going public was ~$83B.

__95 (invisible) horns...__ You don't *see* Stripe, but you've probably used it while paying for something online. Stripe allows companies to quickly transfer credit card payments directly into their biz bank accounts. 

- __Millions of companies__ of all sizes use Stripe's software to accept payments and manage their financials. Stripe makes money by charging fees for each transaction. Competitors include: __Adyen__, __[PayPal](https://robinhood.com/stocks/PYPL)__, and __[Square](https://robinhood.com/stocks/SQ)__. 
- __89%:__ The [probability](https://stripe.com/payments/features) that your credit card has been used on Stripe's network. Amazon, DoorDash, Uber, Spotify, Zoom, and Glossier are all Stripe customers.
- __Stripe's mission__ is "to increase the GDP of the internet" (read: get more people to pay for stuff online). It wants to be the backbone of ecommerce growth.


_When Stripe takes off the invisibility cloak_

95icorn

__Stripe is a "stoxygen" company...__ Stoxygen factor = how necessary a company is to other companies, and how *invisible* it is to customers. Like oxygen, Stripe's payments software is crucial and invisible — and it's everywhere in the online economy. Other business-to-business stoxygen companies: __[Amazon](https://robinhood.com/stocks/AMZN)__'s AWS (cloud computing), __[Shopify](https://robinhood.com/stocks/SHOP)__ (ecommerce payments), and __[Salesforce](https://robinhood.com/stocks/CRM)__ (customer support). The wild thing: *all those "invisible" companies use Stripe's stoxygen, too*. As the online economy continues to grow, Stripe is poised to grow with it.


Stripe becomes America's most valuable startup thanks to its high "stoxygen" factor

__Best feeling in Economy...__ When they give you water *and* a soda from the cart. Millions were feeling the carbonated love this weekend, as US air travel hit a pandemic high: TSA [screened](https://www.cnbc.com/2021/03/15/air-travel-recovers-as-vaccinations-spur-bookings.html) 1M+ passengers each day from Thursday to Sunday, the best streak in a year (they were prob all going to Miami). 

- __On April 15 last year__, just *90K* people passed through TSA  — [96%](https://snacks.robinhood.com/newsletters/3TPLYshPco821e473TlZwS/articles/3p6USob2wC2gywbQv0Wsm4/) fewer passengers than in April 2019. In August, we hit a daily high of 863K passengers (still ~70% fewer than in 2019).
- __On Sunday,__ more than 1.3M people handed their IDs to TSA. That’s still [41%](https://www.tsa.gov/coronavirus/passenger-throughput) below 2019 levels... but it’s a serious improvement. 

__Return of the Biscoff cookies...__ Airline shares surged yesterday. __[United](https://robinhood.com/stocks/UAL)__ stock popped 8% after the company said it expects to stop burning cash in March (earlier than projected). Driving the travel record: rising vaccine optimism, and falling Covid cases. [15%](https://covid.cdc.gov/covid-data-tracker/#vaccinations) of American adults have been fully vaxed so far. Airlines aren't the only ones showing signs of recovery...

- __[Urban Outfitters](https://robinhood.com/stocks/URBN)__ is seeing fresh interest in "going-out" clothes. In the last week of February, seven of Anthropologie’s top 10 selling items online were dresses (up from zero mid-pandemic).
- __[Carnival](https://robinhood.com/stocks/CCL)__ already has more cruise bookings for 2022 than it had in 2019, and __[Royal Caribbean](https://robinhood.com/stocks/RCL)__ saw a [30%](https://www.miamiherald.com/news/business/tourism-cruises/article249427065.html) increase in future bookings since the start of the year (compared to Nov/Dec).
- __[Ulta](https://robinhood.com/stocks/ULTA)__'s makeup sales increased from January to February, while skincare declined as a percentage of sales.


Book

__The “Revenge Economy" could be next...__ For a year, sweats have replaced shopping sprees and screens have replaced travel — and Americans have socked away [$1.5T](https://www.axios.com/economy-savings-americans-money-wealthy-efd12c61-c587-4669-b7e7-32ce38ef74f4.html) in excess savings. After Stimulus #1, Americans saved a record 33% of their disposable income in April 2020. While the pandemic is still inflicting pain, things are looking up. Now that people feel more secure in their savings, we're seeing leading indicators of the revenge spending economy. With a fresh round of $1.4K checks going out, we can expect more revenge spending in April. 

🍪 Snacks Special Edition: End-of-Quarter Review

🚢 You're gonna need a smaller boat

🌮 Taco Bell goes full iPhone

🎮 GameStop drops the numbers

🎥 Zoom-as-a-Service

🖼 NFTs = crypto Sharpie

🛋 Williams-Sonoma has you for life

🇬🇧 Uber's big gig loss

🚗 Operation Overtake Tesla

🦄 America's most valuable unicorn