__It's a party in the TSA...__ The number of people passing through US airport checkpoints is back to [75%](https://www.tsa.gov/coronavirus/passenger-throughput) of 2019 levels, the highest since pre-lockdowns. A year ago, they were barely at 25% of pre-pandemic levels. Airlines are enjoying a travel comeback as Americans get vaccinated — but travelers are getting a side of problems along with their roasted peanuts. 

__Precheck won't help you...__ when the pilot is MIA. Airlines are dealing with a shortage of pilots and airport workers. Now that demand is back, airlines can't flip the pilot switch so quickly. Pilots who were furloughed or took leaves of absence during the pandemic have to be retrained — so do other workers, including those who check planes. The shortage is magnified when bad weather and other disruptions come up. That's resulted in:

- __Delays:__ Nearly [10K](https://www.nytimes.com/2021/06/21/business/airlines-airports-delays.html) flights were delayed in the US on Sunday. __[Southwest](https://robinhood.com/stocks/LUV)__ had the most delays, with 30% of flights running late. 
- __Cancellations:__ __[American Airlines](https://robinhood.com/stocks/AAL)__ had significant cancellations on Sunday, and proactively canceled 1K flights set for July.


_Didn't miss this part [MediaProduction/E+ via GettyImages]_

Delayed

__Prepare for bailout backlash...__ Besides the pilot panic, airlines are enjoying their comeback. And now they're raising prices: flight prices jumped 7% in May from April, and were up 24% from May of last year. Consumers are angry about the cancellations, delays, and higher prices. But they could be angriest when they remember that airlines got a $50B bailout from taxpayers. Politicians [sense](https://messaging-custom-newsletters.nytimes.com/template/oakv2?campaign_id=4&emc=edit_dk_20210622&instance_id=33571&nl=dealbook&productCode=DK&regi_id=83712167&segment_id=61368&te=1&uri=nyt%3A%2F%2Fnewsletter%2Fe3ee401f-c28b-5463-a8a3-3bc39fa4e6e6&user_id=05114d149fce45660cf01aea64f5af7e) public support for imposing additional costs on bailout recipients. That could include forcing airlines to keep flight schedules they say they can’t maintain, or raising wages. 

Airlines' Comeback: complete with cancellations, delays, and rising fares

__Loving the marble countertops...__ __[Blackstone](https://robinhood.com/stocks/BX)__ is a major investment firm, but it also knows a thing or two about landlord-ing: it owns $378B worth of real estate, including Chicago's Willis Tower and Vegas' MGM Grand. Now it's splurging on single-family homes. Blackstone is [dropping](https://www.wsj.com/articles/blackstone-bets-6-billion-on-buying-and-renting-homes-11624359600) $6B to buy __Home Partners of America__, a company that buys and rents 17K+ homes. Home Partners also offers tenants a chance to buy their rental. ICYMI: home-buying is *trending*.

__Some like it hot...__ Housing market, style. Last year, US home sales soared at their fastest pace in 14 years. Fueling the wild demand: mortgages  are cheaper thanks to lower interest rates, and remote/flexible work is allowing people to move to the 'burbs. Recently, that's led to:

- __Record high prices:__ The median price for existing homes topped a [record](https://www.cnbc.com/2021/06/22/us-existing-home-sales-may-2021.html?__source=sharebar%7Ctwitter&par=sharebar) $350K for the first time last month, up 24% from last year.
- __Slower sales:__ In May, existing home sales [dropped](https://www.cnbc.com/2021/06/22/us-existing-home-sales-may-2021.html?__source=sharebar|twitter&par=sharebar) for a fourth straight month on sky-high prices and low availability (#house-shortage). 


__Blackstone's investment shows confidence...__ in the continued rise of the housing market. While sales are slowing, the market is still red-hot — and [home-lennials](https://snacks.robinhood.com/newsletters/O7yzw6jXShqJUuYBrv1Ox/articles/JhP43H0BbxOiUPoatWxvC/) are expected to continue fueling growth for years to come. But a surge could price out regular families, while driving up rent prices (higher rent = great for Blackstone). A number of factors could cool the housing market's rise, including interest rate fears, inflation, and rising prices. 


Blackstone drops $6B in a bet on the hot housing market — but it could cool 

Dow Jones

S&P 500

Nasdaq

Bitcoin

 🛫 The big airline comeback

__Mine, uncrafted...__ China's not playing games. Bitcoin [plunged](https://www.cnbc.com/2021/06/21/bitcoin-btc-price-drops-on-china-crypto-mining-crackdown.html) to a two-week low yesterday after China cracked down on miners. Chinese authorities reportedly ordered a halt to crypto mining, forcing the shutdown of many mining "farms."  China already bans companies from offering crypto-related services — *but this crackdown is next-level*: 

- __Strike #1:__ An estimated ~90% of China's Bitcoin mining capacity has been shut down.
- __Strike #2:__ China set up "[snitching hotlines](https://www.washingtonpost.com/world/asia_pacific/bitcoin-mining-china-crypto-america/2021/06/17/0a39c3a8-c903-11eb-8708-64991f2acf28_story.html)"  to report anyone pumping out BTC.
- __Strike #3:__  China urged __Alipay__ and other major banks to kill any crypto trading. 

__Much coin energy...__ An estimated 65% of global Bitcoin mining happens in China. Mining computers use [mountains](https://snacks.robinhood.com/newsletters/4xclkSJaYAU12PaicjZrLh/articles/4OCWE9kGhme60DCcKsfIUl/) of electricity to validate transactions and mine new coins. China relies heavily on coal power, so that electricity burns *a lot* of "dirty" energy. Now, China is cracking down to help meet its climate goals. The authoritarian state also doesn't *love* the decentralized nature of BTC ([#digiyuan-only](https://snacks.robinhood.com/newsletters/5gmxJQUqpvzHWE4CeHvylQ/articles/1UVV5lKmuNvZyE2FiTurJg/)). 

- __Mass mine-gration:__ Miners have started [exiting](https://www.washingtonpost.com/world/asia_pacific/bitcoin-mining-china-crypto-america/2021/06/17/0a39c3a8-c903-11eb-8708-64991f2acf28_story.html) China to move operations to the US, where energy is cleaner but pricier. 
- __Already here:__ American mining companies, like __Riot Blockchain__ and __Marathon Digital__, have been growing. Riot's mining revenue nearly [10X'd](https://d1io3yog0oux5.cloudfront.net/_fb8837feff2d896c04dd67f9e3403854/riotblockchain/news/2021-05-17_Riot_Blockchain_Reports_Record_First_Quarter_2021__107.pdf) to $23M last quarter. 


Mined

__The digital is physical...__ Websites, photos, and docs that live in the cloud really "live" in massive server farms. Likewise, digital currencies like Bitcoin need swaths of computer networks to exist. A "mine-gration" from China, coupled with the growth of American miners, could bring industrial-scale mining to the US. That requires vast amounts of land, water, and electricity. While that could be good for mining companies, it will likely raise more enviro concerns. 


Bitcoin plunges after China cracks down on mining: mass "mine-gration" could be coming

__Return of the samples...__ Nothing sweeter than a free Lindt chocolate. While Amazon Prime Day(s) are in full swing, __Costco__ is still winning over hearts and shopping carts with its old-school approach. Online sales make up only 6% of Costco's total, because shoppers dig the in-store "treasure hunt"  (come for the TP, leave with a foldable grill). Now, the Disneyland of bulk retail is increasingly [appealing](https://www.bloomberg.com/opinion/articles/2021-06-21/millennial-home-buyers-costco-is-calling-you?srnd=premium&sref=q3KSFp38) to Millennials — especially first-time home buyers:

- __2M+ Americans__ bought homes for the first time last year. *Nearly 40% of those were Millennials*, the most of any generation. 
- __Costco is catering__ to Millennial homebuyers with a fresh offering of "healthy" options to stock their starter houses. Think: almond flour and organic applesauce for Baby #1. 

__Signature rosé...__ for the Millennial mom. Costco has a secret weapon that other food retailers envy: Kirkland. The private-label offers everything from vodka, to eggs, batteries, and toilet paper. Most Kirkland products are made by third parties. Read: shoppers can sneakily get brand names at off-brand prices. Kirkland coffee = Starbucks, Kirkland diapers = Huggies, Kirkland cran juice = Ocean Spray. 

- __Bigger than Coke:__ Kirkland did $52B in sales last year — *nearly $20B more than Coca-Cola*, and double Kraft-Heinz's annual sales. 
- __Bigger than cable:__ Costco memberships now exceed cable TV subscriptions in the US. Kirkland is a key driver of that success.

_The home-lennials are coming [Klaus Tiedge/Corbis via GettyImages]_

Rosé

__Home-lennials could be Costco’s 10-year growth driver...__ Older Millennials are moving to the 'burbs. Read: first baby, first home, empty cupboards. Read again: prime targets for Costco memberships. More than [one-third](https://www.prnewswire.com/news-releases/quicken-survey-shows-millennials-likely-to-flee-cities-over-the-next-year-301110777.html) of Millennials renting city apartments are considering moving away. The median age of a Costco shopper is 43. That's currently Gen X — but in a few years, it'll be Millennial. The suburban migration could have Millennials swapping Amazon carts for Costco ones. 

Costco has two secret weapons: Kirkland, and a growing number of "home-lennials"

🖥 China's crypto crackdown

__Jerome has spoken...__ and investors didn't clap. Last week, the Fed  indicated it expects to raise rates by the end of 2023, sooner than previously projected. The central bank has been pumping $$$ into the economy to keep rates low. Now, investors worry that could end sooner than expected. Higher interest rates can make bonds and savings accounts more attractive compared to riskier assets, like stocks. They also increase borrowing costs (think: credit card interest).

__Should be an Uber Limo...__ for the price of that Uber X. The Fed can raise interest rates to slow inflation. ICYMI: things have been pretty #flated recently. Consumer prices jumped 5% in May from last year, the fastest pace since 2008. Here's where you might be feeling the bump:

- __Gas:__ The pump anxiety is real. Gas prices are up a whopping __56%__ since last May.
-  __Cars:__ Consider the bus. Used car prices are up __30%__, and insurance is up 17%.
-  __Flights:__ Your Miami getaway ticket is looking like a roundtrip to Europe — __+24%__.
-  __Laundry:__ Grab the quarters. Washing machine and dryer prices =  __+26%__.
- __Ride-hail:__ When the Uber/Lyft surge pricing seems endless. Transportation services = __+11%__.  
- __Food & Bev:__ Restaurant food (+4%), alcohol (+1.6%), cereal and baked goods (0.6%). Peanut butter has been a victim of [price hikes](https://snacks.robinhood.com/newsletters/eto2AkKAyWnKqhapU8qK1/articles/62H1VZQ7fErOkYBzrT8WvO/), too. 

_Checking the inflation receipts like [Hirurg/E+ via GettyImages]_

Flated

__The US' recovery has global implications...__ That's because the US economy accounts for  nearly 25% of the world's economic output. America's booming recovery is [starting](https://www.wsj.com/articles/red-hot-u-s-economy-drives-global-inflation-forcing-foreign-banks-to-act-11623933343?mod=hp_lead_pos2) to drive up inflation around the globe. That's pushed some central banks in other countries to raise interest rates early — while many developing economies are still struggling as Covid surges. Looking ahead, continued inflation in the US could slow the global recovery. Investors hope it's just a one-time increase as the economy rebounds. But some worry inflation could last longer and weigh on markets. 

The US' booming recovery is fueling inflation: here's where you might be feeling it

__The e-menu stays...__ Last month, __[Yelp](https://robinhood.com/stocks/YELP)__ seated a record 4M diners in the US — up 48% from May 2019. Bookings [surged](https://snacks.robinhood.com/newsletters/54fsSmVD9q1yF2P4z5Qy9n/articles/6ADWcH5YdBqHwhNKPYeVWK/) past pre-pandemic levels in almost every US state, minus NY. It's not just a reopening thing: Yelp's data highlights the number of restaurants and diners *that shifted online during the pandemic*. This digital transformation bodes well for restaurant tech providers like Yelp, __OpenTable__, __[Square](https://robinhood.com/stocks/SQ)__, __Resy__, and __Toast__ — which is reportedly prepping to IPO.

__Not so SPAC-tacular...__ SPACs = public companies whose sole purpose is to buy *actual* companies to take them public. This year, the popular IPO alternatives have already raised more than they did in all of 2020. But while the broader market is up, the top 50 SPACs have fallen 19% since February. Last week, SPAC-quisitions __[Lordstown Motors](https://robinhood.com/stocks/RIDE)__ and __[DraftKings](https://robinhood.com/stocks/DKNG)__ plunged on not-so-flattering [allegations](https://snacks.robinhood.com/newsletters/1QYl1TwLnXJZ5skLYT8Ds2/articles/7xmIZTOxsn5BlcxEsr60Xq/) from a short-selling firm. TBD if the SPAC-palooza will slow. FYI: SPAC investments involve [risk](https://cdn.robinhood.com/assets/robinhood/legal/Special-Purpose-Acquisition-Companies.pdf).

Zoom Out

Stories we're watching...

__Home, sweet KB Home...__ __[KB Home](https://robinhood.com/stocks/KBH)__ is the Chipotle of homebuilding — but instead of build-your-own-bowl, it's build-your-own-home. KB has thrived on the [Big Housing Boom](https://snacks.robinhood.com/newsletters/3W8LX1jIAswA4HFNTbvVHO/articles/4Fw8bHVeO2Nn0unnSjroHO/), racking up a backlog of home orders on wild demand. Near-zero interest rates have made mortgages cheaper, while home sales and prices have soared. But interest rate fears and inflation (think: soaring lumber prices) could cool the homebuilding party. KB's earnings on Wednesday could provide a glimpse into future demand. 

__E-Jordans...__ __[Nike](https://robinhood.com/stocks/NKE)__ reports earnings on Thursday. The Swoosh loves to market [nostalgia](https://snacks.robinhood.com/newsletters/6ZqOoifdPf952oFcedxEx1/articles/1OBFW9hjoVCTQ9aekyPjA8/) with AF1s and Jordans, but its superpower is digital. Online orders have been surging, heading toward half of total sales as Nike focuses on direct-to-consumer. With WFH sticking, Dri-FIT leggings could keep flying off digital shelves. But ongoing supply chain issues and competition from rival __[Lululemon](https://robinhood.com/stocks/LULU)__ may hit Nike’s performance.


Events

Coming up this week...

- __[World](https://snacks.robinhood.com/newsletters/1QYl1TwLnXJZ5skLYT8Ds2/articles/13z9ikwBYH8cc8GXwXrLda/):__ G7 countries want to fund global infrastructure to rival China's influence through an initiative called "Build Back Better World" (catchy).
- __[Autonomous](https://snacks.robinhood.com/newsletters/5x9q6KbLrmzrqnVrUOqsEu/articles/4GqXfxwpLLMN0t1CLZGUpc/):__ Google's __Waymo__ self-drove its way to a $2.5B fundraise. Pro tip: you can now book its driverless robotaxis through Google Maps. 
-  __[Fashun](https://snacks.robinhood.com/newsletters/54fsSmVD9q1yF2P4z5Qy9n/articles/4KHWw1mVCDwnjX6SGQ1wKv/):__ Chinese shopping giant __Shein__ overtook __Amazon__ in the app store by going *ultra*-fast fashion. 

ICYMI

Last week's highlights...

👛  How inflation is hitting your wallet

__No crying in the Clubhouse...__ Well, maybe a few tears. Yesterday, __[Spotify](https://robinhood.com/stocks/SPOT)__ [launched](https://www.theverge.com/2021/6/16/22535214/spotify-greenroom-locker-room-live-audio-app) its Clubhouse competitor "Greenroom." The social audio app is a Spotify-branded revamp of Locker Room, a sports-talk app that Spotify bought in March. Greenroom expands beyond Sunday football, to convos about music, culture, and Q&As with artists and podcasters. 

- __Testing, testing:__ Some features of Greenroom could be integrated into the actual Spotify app. For now, Spotify wants to see how (and if) people use it. 
- __Beyond Wrapped:__ Spotify loves designing cool stories for your Insta (your Top Song of 2020 is crucial info). But Greenroom is its first real stab at a social platform.  

__Two parties on the same night...__ Claaassic high-school conundrum. To lure people to yours, you might throw in Taco Bell and even a DJ. Spotify does things a little differently. In its quest to steal ears from __[Apple](https://robinhood.com/stocks/AAPL)__, Spotify has spent nearly [$1B](https://www.fool.com/investing/2021/01/21/did-spotify-waste-1-billion-on-podcasts/#:~:text=Overall%2C%20Spotify%20spent%20close%20to,is%20getting%20its%20money's%20worth.) on pod-related acquisitions — including The Ringer, Gimlet, and Parcast. Now it's beefing up the VIP list.

- __Alex Cooper will be there.__ Spotify just [snagged](https://variety.com/2021/digital/news/spotify-call-her-daddy-alex-cooper-exclusive-1234996840/) exclusive rights for top podcast "Call Her Daddy" (reportedly for $60M+). 
- __Joe Rogan's already sipping the green punch.__ Spotify brought "The Joe Rogan Experience" into its gated garden party (reportedly for $100M+). 
- __It's working:__ Spotify’s US podcast listenership is [expected](https://techcrunch.com/2021/03/02/spotify-podcast-listeners-to-top-apples-for-the-first-time-in-2021-forecast-claims/) to surpass Apple Podcasts for the first time this year.


_Spotify when the whole grade shows up [Flashpop/DigitalVision via GettyImages]_

Partay

__A great party requires great hosts...__ That's why "Greenroom" isn't really about guests — *it's about creators*. Right now, podcasters and musicians don't really care whether you listen on Spotify or Apple. Spotify is trying to lure creators by giving them a platform where they can connect with fans. Think: a host-led AMA session right after your favorite pod. By going social, Spotify can take its party to another level. We’ll see if Apple takes the hint. 

Spotify launches a Clubhouse rival on its quest to throw the coolest pod party 

__June 19, 1865…__ More than two years after the [Emancipation Proclamation](https://www.archives.gov/exhibits/featured-documents/emancipation-proclamation/transcript.html), federal troops marched into Texas to take control of the state and ensure all enslaved people were freed. Juneteenth commemorates the end of slavery in the US — and the US government just made it a federal holiday. Beyond this recognition, lawmakers have been discussing how to make amends. Amid a national reckoning over racial injustice, more attention is being paid to reparations. 

- __Reparations__ = The US government compensating descendants of Black American slaves for their labor, an idea that dates back to the Civil War.
- __$3B:__ The value [assigned](https://www.brookings.edu/policy2020/bigideas/why-we-need-reparations-for-black-americans/) to Black American slaves’ labor in 1860. Academics have struggled to agree on a total value for reparations, with estimates [ranging](https://www.cnn.com/2020/08/15/us/slavery-reparations-explanation-trnd/index.html) from as low as $17B to as high as $97T. 

__150+ years later…__ The economic effects of slavery are still being felt. Even after Emancipation, Black Americans were denied land ownership, home loans, and capital, while segregation affected educational and job opportunities. That all led to the [racial wealth gap](https://snacks.robinhood.com/newsletters/bg6FaCgu8qc8z1Zllmofx/articles/3ZVsKmCRQNLUOSaAVHfNJi/): the typical white family has 8X the wealth of the typical Black family. 

__Reparations could take many forms…__ Including: individual payments, college tuition, student loan forgiveness, and housing grants. Since 2019, cities and states have been making moves toward their own reparations: 

- __In March, Evanston, IL__ became the first US city to offer reparations to Black residents. Each qualifying household would receive $25K for home repairs, down payments, and interest or late fees on city property. 
- __A handful of cities__, including Detroit, Providence, RI, and  Asheville, NC, have also either approved their own programs or are considering proposals. 


__Reparations could help close the racial wealth gap…__ which would improve racial equity, and support broader US economic growth. Pew predicts that the racial wealth gap will drain at least [$1T](https://penntoday.upenn.edu/news/wharton-prof-discusses-economics-racism) out of the US economy annually over the next decade. In April, House lawmakers [voted](https://www.npr.org/2021/04/14/986853285/house-lawmakers-advance-historic-bill-to-form-reparations-commission) to advance a historic bill that would establish a committee to develop reparations proposals. That could help more cities and states take action. 

As the nation recognizes Juneteenth, we’re looking at the future of reparations 

🎈 Spotify's Clubhouse-style party

__Can't be a backseat driver...__ when there's no frontseat driver. __Waymo__ is the self-driving vehicle startup that was born out of __[Google](https://robinhood.com/stocks/GOOGL)__'s "moonshot factory." Google’s most successful moonshot is still a money-loser — but not when it comes to venture cash:

- __Waymo just raised a massive $2.5B__ to advance its self-driving tech. It [calls](https://waymo.com/waymo-driver/) its system "The World's Most Experienced Driver," which no other company can say (because Waymo trademarked the phrase).
- __Billions in the rearview:__ Explains the déjà vu. In March last year, Waymo [raised](https://snacks.robinhood.com/newsletters/4AwsSxWJqQcb7mwqnA5uyv/articles/3vkok7loiBq6ya9zowTxlB/) $2.2B in its first external fundraise (read: not just Google $$$). 

__Waymo money...__ still problems. Waymo has driven millions of miles on public roads across the US. But Waymo and other self-driving companies have been criticized for moving slower than expected with commercialization. __[GM](https://robinhood.com/stocks/GM)__'s Cruise, __[Tesla](https://robinhood.com/stocks/TSLA)__, and even Apple are all working on fully self-driving vehicles — in 2019, Elon [said](https://www.caranddriver.com/news/a32159871/tesla-robo-taxis-still-coming-2020/) that self-driving robotaxis would be ready... last year. As of this month, Waymo has a big wheel up over the competition: 

-  __Waymo One:__ Waymo's *fully* driverless taxi service can now be [accessed](https://techcrunch.com/2021/06/03/waymos-driverless-taxi-service-can-now-be-accessed-on-google-maps/) through Google Maps, the same way you get routed to Uber’s app from Maps to book a ride. Think: distance, wait time, etc. 
- __Far from Uber status:__ The service is only available in Phoenix, where the bulk of Waymo’s 600 robotaxis are running. Good luck finding One. 


_Don't try to backseat drive on this one [Westend61 via GettyImages]_

Drive

__Niche products need mainstream roads...__ Waymo has something that its biggest competitor Cruise doesn’t: a maps app with [1B+](https://techcrunch.com/2016/07/21/google-maps-is-turning-its-over-a-billion-users-into-editors/) users. By integrating Waymo into Maps alongside providers like Uber, __[Lyft](https://robinhood.com/stocks/TSLA)__, and __Lime__, Google can "mainstream-ify" robotaxis. It could compete on pricing with OG rides, and even integrate Waymo One directly into Maps to reduce friction (cue: potential antitrust issues). It could also weave Waymo into other parts of its biz — like: Google Pay and Google Home for seamless booking.


Google’s Waymo self-drives its way to a $2.5B fundraise — and it's putting itself on the Map

__An Apple a day...__ keeps the Apple doctor close. Since 2016, __[Apple](https://robinhood.com/stocks/AAPL)__ has been secretly working on an ambitious healthcare project (code name: Casper). In 2019, CEO Tim Cook predicted that Apple’s greatest contribution to mankind “will be about health.” People were like: "????." Now it (kind of) makes sense. [According](https://www.wsj.com/articles/apple-struggles-in-push-to-make-healthcare-greatest-legacy-11623832200?mod=rss_Technology) to the WSJ:

- __Apple__ has been trying to offer its own primary-care service with Apple-employed doctors at its own clinics. 
- __Imagine:__ Health data from your Apple Watch and iPhone being monitored by docs. Apple employees were the first to test the app, called HealthHabit. 

__Spoiler...__ It's not going great. Besides allowing you to track your steps, the Fruit's  health efforts have mostly flopped so far. It's not the only tech giant racing into the $4T healthcare industry — and others are facing hurdles, too: 

- __[Amazon](https://robinhood.com/stocks/AMZN)__ is dabbling in telehealth and even launched a pharmacy, but it’s effort to lower healthcare costs fell apart. 
- __[Google](https://robinhood.com/stocks/GOOGL)__ has spun off its own biotechs like __Verily__, but its Google Health branch flopped and has been thwarted by privacy concerns.


__Apple wants to make the next big platform…__ *for our bodies*. But that could take a while. With iPhones, iPads, and MacBooks, Apple built an ecosystem for our minds (reality: endless TikTok scrolling). Watch is Apple’s big bet on an always-on platform for tracking your health. Getting the data is Step 1. If Apple can track it reliably and put it to good use, it could snag its next massive opportunity.

Apple faces roadblocks on its boldest (long-term) plan: platform-ifying healthcare

🤖 Waymo's self-driving billions

__Fewer scented candles...__ more candlelit dinners. Retail sales *fell* 1.3% last month, but it's not a bad sign for recovery. Spending is shifting from physical goods to "revenge experiences," as Americans swap TV menus for cocktail menus: 

- __Down:__ Spending on furniture, electronics, and appliances fell — because we've already spent enough on our biodomes. 
- __Up:__ Restaurant spending jumped 1.8%, and clothing sales jumped 3% (for all those date night fits). But restaurants are still [struggling](https://www.forbes.com/sites/aaroncolby/2021/06/14/labor-shortage-forcing-restaurants-to-get-creative-and-remain-complaint/?sh=6fba7edc2eb8) to fill job openings (#LaborShortage). 

__Hold my beer garden...__ __[Yelp](https://robinhood.com/stocks/YELP)__'s latest data blows those retail numbers out of the iced tap water. Last month, Yelp seated a record 3.7M diners in the US — up 48% from May 2019.  Yelp bookings surged past pre-pandemic levels in almost every US state, minus NY.  

- __In Texas and Florida,__ where Covid restrictions have been lifted longer, Yelp diners *more than doubled* last month compared to two years earlier.
- __In California,__ which lifted its mask mandate and restrictions yesterday, diners were already back to pre-Covid levels in May.  
- It *could* be that restaurants added more pandemic seating areas (hence: extra booking space). But we think something else is going on...


Dine

__Yelp’s data confirms the digital transformation...__ The 2019 numbers and the 2021 numbers are apples and digital oranges. What these comparisons really reflect: *the number of restaurants and diners that moved online*. During the pandemic, restaurant owners flocked to tech platforms to secure takeout orders, set up digital menus, and add contactless payments. And it appears they're staying digital. This shift bodes well for restaurant tech providers like Yelp, __OpenTable__, __Toast__, __Square__, and __Resy__. 


Yelp's new data tells us about the reopening — but it’s really a window into the digital economy

__50 new fits...__ for 50 new TikTok vids. Amazon's feeling more like MySpace right now. After 152 days as the #1 ecomm app in the US, the 'Zon has lost the top spot to __Shein__. The Chinese online apparel retailer is a Gen Z favorite, thanks to low prices and a *massive* offering of on-trend clothing. Shein adopted the fast-fashion model pioneered by Forever 21, H&M, and Zara — *then turbocharged it*:

- __Quick fits:__ Shein spots a halter top that's trending on social. Two weeks later, it’s on Shein's virtual shelves for $10 less than the original. Shein added 5.2K new items yesterday alone.
- __Quick hits:__ TikTok and Insta influencers are key to its marketing, along with virtual concerts from celebs like Katy Perry and Lil Nas X. 
- __Tight lips:__ Shein is still super secretive about its business, suppliers, factory conditions, and management.

__We do know one thing...__ Shein is raking in the big bucks. Sales [reportedly](https://www.bloomberg.com/news/articles/2021-06-14/online-fashion-giant-shein-emerged-from-china-thanks-to-donald-trump-s-trade-war?srnd=premium&sref=q3KSFp38) more than tripled to $10B last year — well above Zara's online sales. Shein's US success is partly thanks to a loophole: Trump's 2018 China tariffs only applied to packages over $800 (very rare for a Shein order). Then China effectively waived export taxes for D2C companies, adding more fuel to Shein's US growth.  


_More daily views than daily new Shein items [Nick David/Stone via GettyImages]_

__Welcome to "real-time fashion"...__ In the TikTok era, trends change so fast it's hard to keep up. Fast fashion retailers are struggling as Zillenials opt for second-hand Levi's over H&M florals. By sharing app search data with suppliers, Shein can react to new trends almost instantly. If peacock patterns are trending on Monday, Shein can tell Chinese factories to have peacock crops/shorts/earrings ready for shipping by next Wednesday — much faster than even fast fashion. One big downside: real-time fashion could result in even more waste and enviro-harm. 

Chinese shopping app Shein overtakes Amazon by going ultra-fast fashion 

🌮 The Yelp economy

__Hold the hard seltzers...__ Summer isn't starting off well for __[Lordstown Motors](https://robinhood.com/stocks/RIDE)__. The e-truck startup went public via SPAC merger in October, and has been teasing its much-hyped "Endurance" electric pickup since last June. Those were better days for Lordstown.

- __Last week:__ Lordstown said it doesn’t have enough cash to start commercial production (it hasn't sold a truck yet), and [warned](https://www.cnbc.com/2021/06/08/electric-truck-maker-lordstown-warns-of-going-concern-risk-shares-tank.html) it has “substantial doubt” about its ability to survive the next year. 
- __Yesterday:__ Lordstown's CEO and CFO resigned (not encouraging), and the stock plunged 19%. 

__The "I told you so" award goes to...__ __Hindenburg Research__. It's the same short-selling firm that [dropped](https://snacks.robinhood.com/newsletters/dwPOufsBBQ4JnjSiVXZ9Q/articles/3raWsLXrWrHZhkC11zCnoM/) a 67-page report accusing __[Nikola](https://robinhood.com/stocks/NKLA)__ of exaggerating the readiness of its e-truck tech, calling it "an intricate fraud" ([see](https://arstechnica.com/cars/2020/09/nikola-admits-prototype-was-rolling-downhill-in-promotional-video/): truck-rolling-down-a-hill commercial). Nikola's CEO resigned soon after, and the stock has fallen 40% since. 

- __In March,__ Hindenburg released a [report](https://hindenburgresearch.com/lordstown/) alleging Lordstown misled investors by exaggerating its production readiness and biz potential.
- __In January,__ Lordstown said the Endurance pickup already had 100K nonbinding preorders. Hindenburg did some digging and concluded those were “largely fictitious.” For example: Hindenburg found that companies without commercial fleets had preordered 1K trucks.
- __The TLDR:__ Hindenburg believes Lordstown used “fake” orders to raise cash, and said its pickup was years away from production. Lordstown still says that it could start production by September. 


_Hindenburg checking the e-truck receipts [PeopleImages/E+ via GettyImages]_

Swerve

__Short sellers can operate like investigative journalists…__ *but with major conflicts of interest*. A new report partially confirms Hindenburgs findings about the preorders. Now the SEC is investigating the allegations. Short sellers can sometimes have a corrective effect on markets by exposing overvalued companies, as Hindenburg may have done. Buuuut: Hindenburg also has a short position in the stock — aka: it would profit from Lordstown falling. Short sellers can make companies more transparent – but they're driven by their own financial incentives.


Lordstown, unjuiced: the buzzy e-truck startup runs into a truckload of trouble

__Friends Reunion vibes...__ G7 countries have been getting cozy lately. The Group of Seven = the US, UK, Canada, France, Germany, Italy, and Japan. This month, G7 leaders schmoozed over tea at a London summit — and [agreed](https://snacks.robinhood.com/newsletters/1vHKAgE3hJdaCFv0cdJNIm/articles/6v5vQpqDdzXIWNmx3Oc9VL/) on backing a 15% global minimum corporate tax rate. France decided to [ship](https://www.abc6.com/france-is-sending-a-second-statue-of-liberty-to-the-us/) another Statue of Liberty to the US as a gift of friendship (#aw). Now, the G7 is bonding over a global infrastructure initiative:

- __Build Back Better World:__ Doesn't exactly roll off the tongue. The G7 announced the initiative on Sunday, inspired by Biden’s "Build Back Better" plan for the US. 
- __Global ambitions:__ You can tell by the addition of "World" at the end. G7 nations would help finance infrastructure projects in developing countries. Think: roads, bridges, and clean energy infrastructure.
- __German Chancellor Angela Merkel:__ "For countries in need of development, only concrete projects count.” Pun intended?

__Rare bipartisan support topics ...__ Extra vacation days, *and countering China’s power* (it's a theme). With Build Back Better World, the G7 [hopes](https://en.mercopress.com/2021/06/14/g7-announces-build-back-better-world-to-counter-china-s-belt-and-road-initiative) to rival China's multi-trillion-dollar "Belt and Road" initiative. China’s ambitious program aims to build physical and digital infrastructure connecting hundreds of countries. It's a way for China to expand its global influence. BBBW is a way for the US and friends to counter that.  


Build

__The real winners could be companies...__ When the US took on Russia during the Cold War, American military contractors made big profits. Today’s tension with China is less about weapons, more about tech power. This month, the Senate [approved](https://www.wsj.com/articles/senate-approves-250-billion-bill-to-boost-tech-research-11623192584) a $250B bill to boost government spending on tech R&D to keep the US competitive against China (think: more US-made chips). This global infrastructure initiative could benefit American tech, telecom, and energy companies, too. 

Build Back Better, world edition: G7 countries want to fund global infrastructure to rival China

🚙 Lordstown Motors, unjuiced

__*Lupin* Season 2 just dropped...__ Next up: *Lupin* pillows ($60 each). Last week, __[Netflix](https://robinhood.com/stocks/NFLX)__ launched [Netflix.shop](https://www.netflix.shop/), an ecommerce site for flix-branded merch. Think: caps, hoodies, jewelry, and even furniture related to your favorite shows. The shop [will](https://www.nytimes.com/2021/06/10/business/media/netflix-shop.html) sell exclusive, limited-edition merch for shows like *Stranger Things*, *Money Heist*, and *The Witcher*.

- __Old flix:__ Netflix already [has](https://variety.com/2021/digital/news/netflix-online-store-exclusive-products-1234993759/) licensing deals with retailers for apparel based on its original shows (think: "Hawkins Lifeguard" tee at H&M). 
- __New flix:__ This is Netflix's first owned-and-operated retail shop to sell products *directly* to flixers. It could become a top destination for super fans. 

__Trying to beat the DPF blues...__ DPF = demand pulled forward. Netflix saw explosive growth last year, as we hibernated with laptops and ramen. But that led to subscription saturation (#subscripturation) — *and slowing growth*: Netflix added less than 4M subs last quarter, compared to nearly *16M* in the same quarter of 2020. And Unlike Hulu, HBO Max, and others that show commercials, Netflix relies almost purely on subscription bucks.

- __Merch__ is a new way to boost sales in the face of slowing growth — *and growing rivals*. Disney+ has already crossed 100M subs (half a Netflix). 
- __Merch potential:__ Global sales of licensed products tied to shows, movies, and characters were $128B in 2019 — and $49B in the US alone. The merch master = __[Disney](https://robinhood.com/stocks/DIS)__. 


_Waiting for a "Stranger Things" themed ride [kali9/E+ via GettyImages]_

Merch

__This is Netflix’s 1st step in Disney-fication...__ because it may have hit peak streaming. Disney makes $$$ off its characters in movies, Disney+ series, and spin-offs — *and* through merch, theme parks, and toys (Elsa-themed everything). Netflix could benefit from a similarly self-reinforcing IP ecosystem. After merch, a next step [could](https://www.theverge.com/2021/5/24/22452173/netflix-gaming-subscription-service-executive-2022) be show-themed video games or even *Stranger Things* theme park rides. __[Nintendo](https://robinhood.com/stocks/NTDOY)__, which hit [peak console](https://snacks.robinhood.com/newsletters/4qCtq5EPF4KGmccb2Bizgb/articles/1sG5vjessASL0Hh3D8Kwmt/) during the pandemic, is Disney-fying itself with the upcoming Super Nintendo World theme park in Japan.

Netflix launches an online merch shop — here's why it could be pulling a Disney


__Diaper cakes FTW...__ Jessica Alba's __[Honest Company](https://robinhood.com/stocks/HNST)__ drops its first earnings report as a public company on Wednesday. Honest sells "clean" baby, beauty, and household products ([including](https://www.honest.com/baby-products/diapers/diaper-cakes/honest-diaper-cakes.html): cakes made of diapers). Total sales grew 28% last year, with "Household and Wellness" sales more than doubling (think: prenatal vitamins, refillable cleaning kits). Buuut: the ten-year-old company is still unprofitable.  Honest shares have dropped 20% since last month's IPO. 

__Earnings on Aisle 5...__ Grocery giant __[Kroger](https://robinhood.com/stocks/KR)__ delivers earnings on Thursday. Kroger and other grocers thrived last year as we swapped menu meals for pantry classics. Since then, Americans have been swapping grocery bags for doggy bags: restaurant sales [reached](https://www.fsrmagazine.com/consumer-trends/restaurant-sales-reach-new-pandemic-peak) a new pandemic peak in May. Meanwhile, packaged food prices are [rising](https://snacks.robinhood.com/newsletters/eto2AkKAyWnKqhapU8qK1/articles/62H1VZQ7fErOkYBzrT8WvO/) (#inflation), and workers are in short supply. Now, Kroger [plans](https://www.fox6now.com/news/kroger-hosting-hiring-event-thursday-seeking-10k-new-workers) to raise wages. TBD if these factors hit its earnings last quarter. 


__Crypto's tender moment...__ Last week, El Salvador became the first country to [approve](https://snacks.robinhood.com/newsletters/1ExFruUiLLc3sM39AgchDw/articles/1W2c6WnMGNOPU4Dj6ZMTS2/) Bitcoin as legal tender. Businesses there will be required to accept __[Bitcoin](https://robinhood.com/crypto/BTC)__ as payment, and Salvadorans will be able to pay taxes and bank loans in BTC. This could be a valuable experiment for developing countries considering crypto as legal tender, since it can be a cheaper way to move $$$ across borders. But analysts worry about the economic risks posed by BTC’s extreme volatility.

__Big vax headlines...__ The US will [donate](https://www.nytimes.com/2021/06/09/us/politics/biden-pfizer-vaccine-doses.html) 500M doses of __[Pfizer](https://robinhood.com/stocks/PFE)__'s Covid vaccine to 100 countries, in an effort to stem the pandemic. Globally, Covid deaths this year have already exceeded 2020’s toll, as cases surge in poor and developing countries (see: [The Great Divide](https://snacks.robinhood.com/newsletters/64VKtgKZkaaZZmAmaD67OM/articles/4D1D5CUdIwzesT1nTfvvJM/)). Meanwhile, the US halted new shipments of __[J&J](https://robinhood.com/stocks/JNJ)__'s one-shot Covid vaccine as states deal with too many expiring doses. Developed nations are on track to vaccinate 72% of their citizens this year, versus ~30% for developing nations. 



- __[BNPL](https://snacks.robinhood.com/newsletters/1TtUXZyHvZ2SETOZOaUYq7/articles/2wpby5ZPzAfks9OlK1Syl/):__ "Buy now, pay later" is booming — Europe's biggest private fintech __Klarna__ just hit a $46B valuation.
-  __[Historic](https://snacks.robinhood.com/newsletters/1vHKAgE3hJdaCFv0cdJNIm/articles/6v5vQpqDdzXIWNmx3Oc9VL/):__ The G7 agreed that multinational companies should pay a minimum tax rate of at least 15% in each country in which they operate. 
- __[Un-ransomed](https://snacks.robinhood.com/newsletters/1OGX2SxRlMqhAffcNdq8SN/articles/3bGR8UcE6cLGCm5DBw9eR/):__ Crypto prices dropped after US officials recovered a large chunk of Bitcoin that was paid as ransom to the Colonial Pipeline hackers. 


Highlights from last week...

🧢  Netflix pulls a Disney 

__Love the AllSaints biker jacket...__ *don't* love the $500 price tag. __Klarna__ helps you sport that leather now, and pay for it *later* by spreading out payments as interest-free monthly installments. The Swedish company just [raised](https://www.cnbc.com/2021/06/10/klarna-softbank-funding-round.html) $640M at a huge $46B valuation, becoming Earth's second most valuable private fintech after __Stripe__. Quick Klarna stats:

- __Numbers:__  90M+ global active users, with 2M transactions  per day. 
- __$$$:__ Klarna posted record annual revenue of $1.2B last year on fees from merchants, but its loss grew. 
- __Investors:__ Backers include Softbank, Snoop Dogg, and A$AP Rocky. 

__Speaking of ASAP...__ People want retail therapy immediately, but want to pay for it ASLP (as late as possible). Klarna is one of the buy-now-pay-later firms — like __[Affirm](https://robinhood.com/stocks/AFRM)__ and __Afterpay__ — that have been thriving since the pandemic began. __[PayPal](https://robinhood.com/stocks/PYPL)__ also intro'd a BNPL checkout option last year. Money was tight,  and spending moved online. It took Klarna eight years to [hit](https://www.reuters.com/article/klarna-fundraising/update-1-payments-firm-klarnas-valuation-rises-to-46-billion-after-fundraising-idUSL2N2NS1FF) a $1B valuation, but *less than 12 months* to go from  $5.5B to $46B. It could go public this year.   

ASAP

__BNPL eases the "mental accounting" burden...__ It can help rationalize large purchases by breaking them into smaller chunks in our minds. With a credit card, you have to fully pay off purchases at the end of the month to avoid interest. With BNPL, that $3K Peloton suddenly seems "affordable" at $50/month. Hence: merchants often see a boost in sales after offering Klarna's service. But that easy accounting could also come with financial consequences for some. 

"Buy now, pay later" is booming:  Europe's biggest fintech Klarna hits a $46B valuation

__Can't skip the pants on this one...__ Holograms are [getting closer](https://www.wsj.com/articles/tech-companies-want-to-make-holograms-part-of-routine-office-life-11623232800) to becoming a workday reality. Think: hologram colleagues giving speeches at all-hands (already [happened](https://www.wsj.com/articles/tech-companies-want-to-make-holograms-part-of-routine-office-life-11623232800)), and team meetings where you can see everyone's shoes. 

__Do it for the gram...__ Holo style. As tech companies move to hybrid WFH models, they're investing in holo-tech to fight Zoom fatigue blues. But holograms aren't just for employees — they're a bet on the future of remote communications. In the last few months:

- __[Google](https://robinhood.com/stocks/GOOGL)__ unveiled Project Starline, an effort to create a video-chat system that gives participants 3D depth (it [looks](https://blog.google/technology/research/project-starline/) like a trippy mirror... straight out of *Black Mirror*).
- __WeWork__ is partnering with a holo tech company to bring holograms to 100 WeWorks around the globe. The program kicks off this month.
- __[Microsoft](https://robinhood.com/stocks/MSFT)__ intro'd Microsoft Mesh, a "mixed-reality" service that displays life-size 3D avatars and content through smart glasses. 

_The holo colleagues are coming [Paper Boat Creative/Stone via GettyImages]_

Holo

__Holograms could be the second coming of Zoom...__ and companies could pay big bucks for them. WeWork is already charging $2.5K for holograms to be displayed on one standard HoloPod. Holograms could offer the best of both worlds in a hybrid future: the flexibility to WFH, paired with the bonding benefits of an in-office experience. But holo tech is also complex, expensive, and likely years away from being adopted. And pants are definitely required. 


The holograms are coming: tech companies' big bet on the future of remote work

 🛍 "Buy now, pay later" billions

__Return of the coin...__ Earlier this week, crypto prices fell after US officials [recovered](https://snacks.robinhood.com/newsletters/1OGX2SxRlMqhAffcNdq8SN/articles/3bGR8UcE6cLGCm5DBw9eR/) $2.3M in Bitcoin ransom. *Yesterday*, Bitcoin surged 9% after El Salvador became the first country to approve the cryptocurrency as legal tender. El Salvador currently uses the US dollar as its official currency. Expect some cryptic changes:

- __1.__ Businesses will have to accept Bitcoin as payment. 
- __2.__ Salvadorans will be able to pay taxes and bank loans in BTC.
- __3.__ Salvadorans who convert BTC to other currencies won't pay capital gains tax.

__A new idea indeed...__ El Salvador's President and his New Ideas party say the move will improve financial inclusion among the 70% of Salvadorans who *don’t* have access to traditional financial services. Introducing BTC as legal tender could also ease the "remittance fee" burden:

- __One in four__ Salvadorans live abroad, mostly in the US. Extreme poverty and criminal violence has caused mass migration from the country, home to 6.5M. 
- __Nearly three of every 10 dollars__ in El Salvador's economy come from remittances — aka: money that family living abroad sends back home. 
- __$6B:__ Remittances sent to El Salvador hit a record last year. But money transfer through banks often comes with fees that can add up quickly.  BTC is often cheaper and easier to transfer. 


Again

__This could be a valuable experiment...__ for developing countries considering crypto as legal tender. But analysts are worried about the economic risks posed by BTC’s extreme volatility. El Salvador is one of Central America's poorest countries, and has struggled to manage its finances. It could benefit by converting BTC to $$$ when the crypto's price is high, to help cover its huge deficit. On the flip side, things could go sour if BTC moves the other way, as it has over the past month. 

Making crypto history: El Salvador becomes the first country to approve Bitcoin as legal tender

__Bombshell...__  The nonprofit publication __ProPublica__ dropped an investigation revealing how the 25 richest people in the US pay little to no income taxes compared to their net  worth. The story is causing a stir, partly since leaking tax returns is a federal crime. ProPublica says it obtained IRS data from an anonymous source. The data = tax returns of thousands of America's wealthiest, spanning 15+ years. The Treasury Department is [investigating](https://www.cnbc.com/2021/06/09/us-investigates-disclosure-of-tax-records-on-rich-americans.html) the leak. From 2014 to 2018:

- __Warren Buffett__ paid $24M in taxes on $125M of reported income, while his wealth grew by $24B thanks to investments. His "true tax rate" = 0.10%.
- __Jeff Bezos__ paid nearly $1B in taxes on $4B+ income, while his wealth grew by $99B. True tax rate: 0.98%.
- __Elon__... Musk we say it? Elon shelled out $455M in taxes on $1.5B reported income, while his wealth grew $14B. True tax rate: 3.27%.

__Here's how...__ In the US, income is taxed – net worth *isn't.* So while Elon's wealth grew by billions as Tesla stock rose, he wasn't taxed on investments that he didn't sell (aka: unrealized gains).  ProPublica calculated “true tax rate” — taxes paid as a percentage of total wealth gains.

- __Still,__ ProPublica [says](https://www.propublica.org/article/you-may-be-paying-a-higher-tax-rate-than-a-billionaire?campaign_id=4&emc=edit_dk_20210609&instance_id=32555&nl=dealbook&regi_id=83712167&segment_id=60208&te=1&user_id=05114d149fce45660cf01aea64f5af7e) that the 25 richest Americans paid an average personal federal income tax of only 16% from 2014 to 2018 — less than many "regular" people pay. 
- __How:__ Billionaires avoid forms of income like wages, that are taxed at 37% for their income bracket. Also: accounting gymnastics. 


__This scandal could help fuel Biden's policy...__ Many Americans are shocked to see billionaires' ultra-low tax rates. President Biden is [seeking](https://snacks.robinhood.com/newsletters/2FGYY02td4t3rp9KjKvLQM/articles/1d7eiIZp8iwgUI9aKXGIQZ/) tax increases on the wealthy to fund proposed spending on infrastructure and social programs, including nearly doubling the capital gains tax rate to 39.6% for Americans earning $1M per year or more. 