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

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

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

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


Banned

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

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

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

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

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

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

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

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


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

Dow Jones

S&P 500

Nasdaq

Bitcoin

🗳 Facebook's Trump dilemma  

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

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

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

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


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


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

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

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

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

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


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

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


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

💰 Move over, Bitcoin

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

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

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

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


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

Suited

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

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

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

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

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

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

Glowy

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

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

⚔️ Apple's Epic battle

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

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

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


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

Whoa

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


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

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

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


Events

Coming up this week...

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

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

Zoom Out

Stories we're watching...

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

ICYMI

Highlights from last week...

📲  Big Tech's big blowout 

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

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

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

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

Spend

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


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

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

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

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


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

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

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

🏫 Biden's $1.8T social plan  

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

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

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

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

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

Smash

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

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

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

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

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

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


Boom

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

FB and Google smash earnings: digital ads are thriving, but there could be trouble ahead

💰  Apple and Google really did it

__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 

📲  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.


__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. 

- __[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.

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. 

🗳 Facebook's Trump dilemma

💰 Move over, Bitcoin

⚔️ Apple's Epic battle

📲 Big Tech's big blowout

🏫 Biden's $1.8T social plan

💰 Apple and Google really did it

📲 Apple's surprising ad play

📀 Exxon's Blockbuster moment

💰 100 days of Biden

✈️ Southwest's (shocking) profit