__Coin, based...__ The largest crypto exchange in America is scheduled to go public next Wednesday via direct listing (sorry, IPO). __Coinbase__ will list its shares (directly) on the Nasdaq, becoming the first publicly-traded crypto exchange in the US. Coinbase thrived last year as investors poured into bitcoin. In 2020: it made $1.2B in revenue, and its first-ever annual profit of $322M. But it just [shared](https://investor.coinbase.com/news/news-details/2021/Coinbase-Announces-First-Quarter-2021-Estimated-Results-and-Full-Year-2021-Outlook/default.aspx) some quarterly estimates that make those numbers look like BTC circa 2018: 

- __$1.8B:__ Coinbase's estimated revenue for the first three months of 2021 — aka: *more than all of 2020*, and 9X more than the year-ago quarter.
- __$730M-$800M:__ Its estimated profit for the first quarter — aka: more than double last year's earnings.

__Satoshi would be proud...__ whoever he/she/they are. 12 years have passed since the mysterious Satoshi Nakamoto mined the first block of the bitcoin chain — and crypto is more relevant now than ever. Coinbase expects that it has a whopping 56M verified users (6.1M of which are trading monthly). 

- __~$2T:__ The total value of the crypto market has already [doubled](https://www.bloomberg.com/news/articles/2021-04-05/crypto-market-cap-doubles-past-2-trillion-after-two-month-surge?sref=q3KSFp38) since January, when it first [topped](https://snacks.robinhood.com/newsletters/3LgF2GHrBcJKBJ4WJf1iwx/articles/2nXdL69aReUxvgeSTBY2ox/) $1T.
- __$223B:__ The estimated value of crypto assets that Coinbase has — or around 11% of the whole crypto market.


__Coinbase's numbers highlight a "seasonal" effect...__ Coinbase's seasonal biz has nothing to do with ski lifts or white-sand beaches. A ski resort thrives in winter — Coinbase thrives on crypto buzz times. As bitcoin plunged in 2018, Coinbase lost [70%](https://techcrunch.com/2021/03/25/will-fading-yolo-sentiment-impact-robinhood-coinbase-and-other-trading-platforms/) of its monthly transacting users. Before 2020, it had never seen a profit. As crypto dominated the conversation this year, Coinbase estimates it made more in three months than in all of 2020. Unprecedented crypto season = unprecedented earnings. Because of its reliance on fees from user trades, its fortunes can rise and fall with the crypto weather.

Coinbase is going public next week – and it just dropped some major numbers

__Influencer. Artist. Force of Nature...__ The Creator Economy's Insta bio (don't forget the sponsor link). Like the rest of us, celebs/influencers/creators stayed home in 2020. Concert venues, comedy clubs, and film studios were closed. To cash in on their talents, creators went full DTA — *Direct-to-Audience*. Now, companies that help content creators directly monetize their work are thriving. And the venture capital cash is following:

- __Patreon__, the subscription site that lets you pay your favorite YouTuber, just [raised](https://www.cnbc.com/2021/04/07/creators-platform-patreon-valued-at-4-billion-in-its-latest-funding-round.html) $155M at a $4B valuation — up more than 3X from September 2020.
- __Cameo__ is the startup that lets you request personalized vids from celebs (like Kevin from *The Office*). It [hit](https://www.axios.com/cameo-unicorn-fundraising-566e58d6-9374-4706-8b11-1be4f76a233b.html) a $1B valuation last week after a $100M fundraise, joining Club Unicorn.
- __Substack,__ a platform for writers to publish paid email newsletters, is [reportedly](https://www.axios.com/substack-andreessen-horowitz-newsletter-36cb98ea-a7b3-43b1-883a-fa45586eaad4.html) raising $65M in fresh funding at a $650M valuation. 
- __Clubhouse,__ the audio social network that loves tech chat rooms, [reportedly](https://www.reuters.com/article/us-global-finance-breakingviews/breakingviews-capital-calls-clubhouses-vip-ambitions-idUSKBN2BU2CL) might raise money at a $4B valuation (4X its January value).

__Shoutouts mid-live stream...__ Fans love feeling connected to their favorite creators, and want to support them. That's great for Creator Economy startups. Not-so-great: *where* fans connect doesn't matter as much. Really not-so-great: Big Tech is copying Creator Economy features. 

Create

__Creator Economy startups should consider merging...__ because Big Tech is onto the trend. Just a few examples: __[Spotify](https://robinhood.com/stocks/SPOT)__, __[Facebook](https://robinhood.com/stocks/FB)__, __LinkedIn__, and __[Twitter](https://robinhood.com/stocks/TWTR)__ are all working on Clubhouse rivals. Twitter [acquired](https://snacks.robinhood.com/newsletters/7Diuno0ArouMGsyNQkshkC/articles/73dVpRGQ9Foe8OjLlbQg6e/) a Substack-like paid newsletter company — and plans to integrate it into Twitter. If Creator Economy startups merged to offer an all-inclusive platform for interacting with creators, they might stand a better chance against Big Tech. We call it... “Creators Inc.”

The Creator Economy gets paid: Patreon, Cameo, and Substack's mega-fundraises

Dow Jones

S&P 500

Nasdaq

Bitcoin

_The Creator Economy intensifies_

💰 Coinbase drops big numbers

__Leading yuan...__ China just [created](https://www.wsj.com/articles/china-creates-its-own-digital-currency-a-first-for-major-economy-11617634118?mod=hp_lead_pos5) its own digital currency: the digital yuan (#digi-yuan). It's the first major world economy to launch an e-currency. China isn't just putting cash into a virtual bank account — it's minting cash *digitally*, turning legal tender into lines of code. For each digi-yuan it issues, it essentially cancels a paper yuan. 

- __State-backed:__ Unlike a cryptocurrency, digi-yuan is a state-backed currency controlled by China's central bank (like how the US $ is backed by the US gov't and controlled by the Fed). 
- __Fully traceable:__ Unlike crypto and cash, there's no anonymity with digi-yuan. The Chinese government knows where your yuan has been.

__More money control...__ *more control*. Beijing is testing digi-yuan expiration dates that could encourage people to spend within a certain time frame (to support economic stimulus). China uses hundreds of millions of facial recognition cameras to surveil and fine citizens for things like jaywalking. With digi-yuan, it could automatically draw the fine money from people's accounts. 

- __*Companies are worried*:__ Digi-yuan transactions settle instantly. That could threaten the fee-reliant business models of payment companies like __[PayPal](https://robinhood.com/stocks/PYPL)__, which can profit off transfer times. In China, digi-yuan could crush __AliPay__ and __WeChat__, which are used by billions to make payments.
- __*The US is worried*:__ Digi-yuan threatens the global power of the USD, and could soften the effect of US sanctions (especially on China). That's why the US is considering a digital currency of its own — so are 60+ other countries. 


__Digi-yuan = a threat to the US dollar....__ The USD is currently the [Superman](https://snacks.robinhood.com/newsletters/4ogc6lVdR6XOMD2eU3NQcI/articles/4tXfBbA0fHrtQFfTkjI5ht/) of global currency. Its stable and reliable rep has made it the world's "reserve currency" for international purchases (think: Canada buying oil from Mexico... in US dollars). The USD is used in 88% of foreign exchange trades — the yuan is used in only 4%. That global currency power makes US sanctions a nightmare for countries and individuals who get frozen out. Now that China is positioning the digi-yuan for international use, that could present an attractive alternative to the USD for sanctioned countries.... And for billions of low-income workers who don't want to pay fees when they transfer money to family abroad. 

China creates a revolutionary digital currency (and the US is worried)

__Forget the hot towel...__ Flashback to December 2019: the travel industry is booming. Flights are so packed you can barely snag a seat to visit grandma in Rome, *Georgia*. Flash forward to mid-pandemic: even Rome, Italy has no takers. On April 15 last year, only 90K people passed through TSA checkpoints... 97% fewer than pre-pandemic. Now...

- __Air travel is rebounding:__ TSA traveler volumes are at pandemic highs, down just 35% from pre-pandemic levels. With the vaccine rollout, that's expected to climb. 
- __Business travel isn't:__ [According](https://www.axios.com/bookingcom-ceo-glenn-fogel-business-travel-recovery-d8263f86-762d-4167-bee6-86a581ec137c.html) to __[Booking](https://robinhood.com/stocks/BKNG)__'s CEO Glenn Fogel, "the share of business travel will be forever lower than pre-pandemic." Mic drop.

__Goodbye, in-flight champagne...__ hello $5 André bottle. After Zooming-from-home for over a year, companies are asking themselves questions like: "Does Carla really need to shake hands with Frida over lobster in Singapore to make the $1M deal happen?" Many are saying "no" —  and that's a big problem for airlines. 

- __Business travelers bring in 75%__ of airline profits, though they make up only ~12% of all passengers. Leisure travelers often pick the cheapest flights (four-hour Dallas layover, why not?). 
- __Business travelers go for the most *convenient* flights,__ which are generally the priciest. And since it's on the company card, it's no sweat. 


Peanuts

__Investors *aren't* making pre-pandemic comparisons...__ Pre-corona, airlines were riding a  streak of record profits. In February 2020, __[Delta](https://robinhood.com/stocks/DAL)__ was so profitable that it [paid](https://snacks.robinhood.com/newsletters/6wRGgx7QknYZXmDyA2zTy9/articles/4mOiuwQwp60nQ7F33CMMXz/) out $1.6B in profit-sharing bonuses to employees. Then the pandemic hit, and airlines erased years of gains with their ginormous 2020 losses. Still, Delta and __[American](https://robinhood.com/stocks/AAL)__ shares are only down less than 13% from late January 2020 — and __[Southwest](https://robinhood.com/stocks/LUV)__ stock is *up* 13%. Investors are seeing the cabin half-full: they're looking past the pre-pandemic norm, and focusing on the emerging recovery.

Business travel may never recover — but investors are seeing the cabin half-full

_The Rome meeting, brought to you by Zoom meeting_

🇨🇳 China's digital currency  

__ICYMI...__ Georgia made big changes to its voting laws — and they've  received a lot of pushback. In case you didn't have time to read the 98-page law, we've highlighted a few key changes:

- __New ID requirements__ for absentee voters. [Like](https://www.wsj.com/articles/georgia-election-changes-signed-into-law-by-governor-11616715033?mod=article_inline): providing their driver’s license number, the last four digits of their social, or some other form of accepted ID to request ballots.
- __Shortened absentee voting:__ Absentee ballots can be sent out only 29 days before an election, down from 49 days.
-  __Expanded weekend early voting__, requiring at least two Saturdays (up from only one weekend day).
- __Guaranteed (but limited) drop boxes:__  Now, each county must have at least one absentee drop box. But the law limits how many boxes each county can have, how long they can be open, and where they can be located.
- __No hand-outs:__ The law makes it a misdemeanor to hand out “any money or gifts," including snacks and water to people standing in line to vote.

__Back to the pushback...__ While GOP lawmakers say the law is necessary to restore confidence in Georgia's elections, Democrats say it'll restrict voting access for underrepresented voters — especially people of color. Now, [dozens](https://www.axios.com/georgia-voting-restrictions-microsoft-corporations-57f321c3-f449-41c0-858e-02006d017768.html) of execs at America's biggest companies are speaking out against the law, including: __[Apple](https://robinhood.com/stocks/AAPL)__, __[Microsoft](https://robinhood.com/stocks/MSFT)__,  and __[American Express](https://robinhood.com/stocks/AXP).__  __Patagonia__ compared the laws to Jim Crow bills. And Georgia's biggest corporations are getting vocal:

- __[Delta](https://robinhood.com/stocks/DAL) CEO Ed Bastian:__ “The entire rationale for this bill was based on a lie: that there was widespread voter fraud in Georgia in the 2020 elections. This is simply not true.” 
- __[Coca-Cola](https://robinhood.com/stocks/KO) CEO James Quincey:__ The Georgia law is "wrong and needs to be remedied, and we will continue to advocate for it both in private and now even more clearly in public."


Vote

__Silence is no longer an option. Neither is inaction...__ Last year, we [wrote](https://snacks.robinhood.com/newsletters/7gqswmVojTVAwxoi4AyfDv/articles/69m6uDAmNzTcLDko3aNntx/) that 2020 was the year when “no comment” was no longer an option for companies. While 2020 demanded a position, 2021 is demanding action. 72 Black execs have called on corporations to oppose voting restrictions — which have been proposed in dozens of other states, too. The MLB said it would move the All-Star Game from Atlanta in protest. And companies like __[Dell](https://robinhood.com/stocks/DELL)__ and __[American Airlines](https://robinhood.com/stocks/AAL)__ are already condemning a restrictive voting bill that's advancing in Texas. Companies' action against voting restrictions could set new expectations for how they respond to other key civic issues, too.


Georgia's new voting restrictions spark major pushback from corporate America 

__This just in: a S3XY update...__ __[Tesla](https://robinhood.com/stocks/TSLA)__ delivered a record ~185K cars in the first three months of the year, [beating](https://www.wsj.com/articles/tesla-kicks-off-2021-with-rising-deliveries-11617368680?mod=tech_lead_pos2) expectations. That's more than double the # of cars it delivered in the same quarter last year (when Covid hit and factories stalled). Despite global supply chain shortages, it's also slightly up from the *previous* record-breaking quarter, thanks to strong demand from China. Shares jumped 4% on the news.

- __~99%__ of Tesla deliveries last quarter were of the $35K+ Model 3 or the $50K+ Model Y crossover (aka: its more affordable models).

__Profit is getting Musk-ular...__ so is competition. Before 2020, Tesla was struggling to post a profit. *In* 2020, it had its first full profitable year. *Now*, it's expected to post a $470M profit for the first quarter of 2021 (earnings drop in a few weeks). While Tesla's profits are solidifying, OG carmakers’ electric lineups are, too. __[GM](https://robinhood.com/stocks/GM)__, __[Ford](https://robinhood.com/stocks/F)__, __[Volkswagen](https://robinhood.com/stocks/VWAGY)__ ([Voltswagen](https://www.motortrend.com/news/volkswagen-voltswagen-april-fools-day-prank-media-analysis/)?), and __Renault__ have been leveling up their EVs... and [stealing](https://www.wsj.com/articles/tesla-faces-new-reality-of-tough-competition-11615478406) market share from Tesla.

- __Europe:__ In 2020, Volkswagen beat Tesla to become the top-selling EV maker in Europe. While EV registrations in Western Europe more than 2X'd, Tesla registrations fell 11% — and its market share plunged.
- __US:__ Tesla's EV market share fell from ~79% in 2020, to ~69% this February. The same month, Ford's Mustang Mach-E made up 12% of all-electric vehicles delivered.
- __China:__ Tesla is growing fast, but so are its Chinese rivals __[Nio](https://robinhood.com/stocks/NIO)__, __[Xpeng](https://robinhood.com/stocks/XPEV)__, and __[Li Auto](https://robinhood.com/stocks/LI)__. Their sales have surged this year along with Tesla's. 


Compete

__Tesla has reached escape velocity...__ Now that it's profitable, its next challenge is battling rivals. For years, Tesla faced virtually no competition. Now the competition has never been tougher... so it's shifting focus. This year, Tesla is aiming to open its first factory in Europe — aka: the world's largest EV market — to gain a stronger foothold against global rivals.


Tesla hits a car delivery record, but it's facing record competition

_Mustang Mach-E or Mach-Elon?_

🇺🇸 Corporate America pushes back

__The I-90 needs a spa day...__ More like a spa decade. Last week, Biden [unveiled](https://www.wsj.com/articles/biden-set-to-unveil-2-trillion-infrastructure-plan-11617181208) his long-awaited $2.3T infrastructure plan. TLDR: give America's old infrastructure a major facelift. It's currently [rated](https://www.nbcnews.com/business/business-news/u-s-infrastructure-gets-c-says-engineering-group-trump-s-n1259432) a C- (passable, but not LinkedIn-able). The plan also seeks to make America as green as the inside of a perfectly ripe avo. Some highlights:

-  __$621B for transportation__ projects. Including: repairing 10K bridges, and modernizing roads, airports, and 20K miles of highways. Also: building a network of 500K electric vehicle chargers by 2030. 
-  __$400B for long-term care__ facilities for the elderly and disabled.
-  __$300B to boost manufacturing__ and make the US less China-reliant, including strengthening the chip supply chain. 
-  __$213B__ to build and update affordable housing, and $100B to  modernize schools. Plus: $100B to bring high-speed broadband to all Americans.

__Like mink eyelash extensions...__ this makeover is *pricey* — $2.3T over eight years. It would be the [biggest](https://www.whitehouse.gov/briefing-room/statements-releases/2021/03/31/fact-sheet-the-american-jobs-plan/) federal investment program since the '60s Space Race. Biden is trying to get the plan approved by summer. But that could be tough in the narrowly divided Congress... 

- __The plan would be paid for over 15 years__ by raising corporate taxes, including bumping the corporate tax rate to 28% from 21%. Republicans cut it to 21% from 35% in 2017. 
- __Pushback:__ Republicans support infrastructure investments, but [aren't](https://snacks.robinhood.com/newsletters/2FGYY02td4t3rp9KjKvLQM/articles/1d7eiIZp8iwgUI9aKXGIQZ/) fans of tax hikes. While the GOP worries the proposal is *too* splurge-y, some Progressives say it isn't big enough.


_Extreme makeover, US edition_

Build

__The US economy is at a crossroads...__ No infrastructure pun intended. Covid expanded the government's role in American lives (think: historic spending on the #StimulusTrilogy). One year and $5T+ later, the pandemic is waning... and America is at a crossroads. If Biden's plan passes, it would chart a post-pandemic future in which Uncle Sam plays a major role. These unprecedented investments could spur sustainable economic growth and help reduce inequality. On the flip side, higher taxes [could](https://taxfoundation.org/biden-corporate-income-tax-rate) mean lost profits for companies, which could affect wages and growth. 

Biden's $2.3T makeover plan: what’s in it, and why it could reshape America's future

__Call of Duty *who*?...__ __[Microsoft](https://robinhood.com/stocks/MSFT)__ scored a major contract to provide augmented reality headsets to the US Army. It could be worth ~[$22B](https://www.cnbc.com/2021/03/31/microsoft-wins-contract-to-make-modified-hololens-for-us-army.html) over 10 years — more than double the Pentagon "JEDI" cloud contract it [won](https://snacks.robinhood.com/newsletters/3LqtV85M89Jc6D6iWOYgE0/articles/4oud1BIj8oUwneA9uooyDi/) less than two years ago. The software giant will deliver 120K custom headsets based on its HoloLens AR tech. The headset is a long way away from Office 365: it allows soldiers to fight and train more effectively, overlaying holograms like maps in their field of vision. Microsoft shares jumped 4% on signs it can generate significant $$$ from futuristic products that take years to develop.

__If IPOs were graded...__ online learning platform __[Coursera](https://robinhood.com/stocks/COUR)__ would've passed. Coursera stock jumped 17% for the week, after the nine-year-old company went public on Wednesday. It offers online classes and degrees from 150 universities, lowering costs and barriers to education. As we schooled-from-home during the pandemic, Coursera's 2020 sales [soared](https://www.cnbc.com/2021/03/31/coursera-ipo-cour-begins-trading-on-the-nyse.html) 59% from 2019 (but it's still unprofitable). It now has 77M "Learners," *30M* of which joined during Covid times. Off-campus, 25% of Fortune 500 companies use it for employee professional development. As tuition prices soar and tech takes over, e-learning could continue to grow in the post-pandemic world. 

Highs

Who's up...

__*Accio pad thai*...__ __Deliveroo__ is the UK's __[DoorDash](https://robinhood.com/stocks/DASH)__, except most of its "drivers" ride bikes with your tikka masala on their backs. The __[Amazon](https://robinhood.com/stocks/AMZN)__-backed food deliverer was one of Europe's most-hyped IPOs of 2021 (key word: was). Shares [plunged](https://www.cnbc.com/2021/04/01/deliveroo-ipo-what-primarybid-retail-investors-plan-to-do-next.html) 26% during their first day on the London Stock Exchange. Deliveroo has been facing pressure  over gig workers’ rights. Investors are worried it might have to [reclassify](https://snacks.robinhood.com/newsletters/1pA68KIKChD9WMr3DJ2OMP/articles/2sYAJhcq3cv7kMzg2aLfHE/) its UK gig drivers as "workers" with benefits — like __[Uber](https://robinhood.com/stocks/UBER)__ recently did. That could keep Deliveroo from delivering profits anytime soon.

__Joined the margin band...__ Banks had a [bad](https://snacks.robinhood.com/newsletters/7z4xFSKJjgTlxUhJDduXWw/articles/63FBQzM7ir89SIKh2sFQCe/) week, thanks to an investment firm that couldn't meet its margin calls. __Archegos Capital Management__ borrowed billions of $$$ to trade with. When the value of its holdings fell below margin requirements, the banks said "put up more money or sell your positions." Archegos said "can't/won't." That left the banks that lent it money exposed to [billions](https://www.wsj.com/articles/inside-archegoss-epic-meltdown-11617323530) in losses. __[Credit Suisse](https://robinhood.com/stocks/CS)__ stock sank 17% for the week, __[Nomura](https://robinhood.com/stocks/NMR)__ dropped 19%, and __[Goldman Sachs](https://robinhood.com/stocks/GS)__ and __[Morgan Stanley](https://robinhood.com/stocks/MS)__ fell ~5%. Retail investors were affected, too. Now "family offices" like Archegos might get more oversight.

Lows

...and who's down

🥑 Biden's $2T makeover plan 

__On the (block)chain...__ is the new off the chain.  Over the past year, __[bitcoin](https://robinhood.com/crypto/BTC)__ has ~9X'd in value as corporate and retail investors have poured into crypto. In January, the crypto market hit $1T in total value (mostly bitcoin). Now, the mainstream-ification is intensifying: Venmo-owner __[PayPal](https://robinhood.com/stocks/PYPL)__, which has a whopping *377M* active accounts, is embracing the crypto life.

- __"Checkout with Crypto":__ Yesterday, Paypal [officially](https://investor.pypl.com/news-and-events/news-details/2021/PayPal-Launches-Checkout-with-Crypto/default.aspx) launched the service in the US, allowing users to pay with crypto at  online stores.
- __29M:__ In the coming months, PayPal will expand crypto checkout to [29M](https://www.reuters.com/article/us-crypto-currency-paypal-exclusive-idUSKBN2BM10N) merchants. Customers with PayPal digital wallets can pay in bitcoin, ether, bitcoin cash, and litecoin.
- __BTW:__ __[Visa](https://robinhood.com/stocks/V)__ also just [announced](https://www.reuters.com/article/us-crypto-currency-visa-exclusive/exclusive-visa-moves-to-allow-payment-settlements-using-cryptocurrency-idUSKBN2BL0X9) that it'll allow people to use the cryptocurrency USD Coin (a US dollar-backed stablecoin) to settle payments.

__Paying with crypto...__ but *not really* paying with crypto. Customers' crypto holdings will be converted into fiat currencies (like US dollars) at checkout. It's kind of like selling a fraction of your BTC, then using the sale money to buy a rice cooker. Merchants don't actually get paid in crypto — and that's way safer for them, since crypto is so volatile.

- __For merchants:__ Imagine if __[Adidas](https://robinhood.com/stocks/ADDYY)__ was selling a hoodie for $50, and you bought that hoodie with a (tiny) fraction of bitcoin. Now imagine if that tiny fraction of bitcoin was worth only $20 the next day. Adidas lost $30 on that bit-transaction.
- __For buyers:__ Imagine if you bought a $58K car with one BTC, and the next day that same BTC was worth $60K. You would've lost $2K in value. If the value of BTC plunged to $56K the next day, you would've saved $2K. Not super practical either way.


_When the check comes but they don't take litecoin_

Coin

__BTC is still mostly viewed as a speculative investment (not a currency)...__ It's too volatile for most to use it as currency, which is why PayPal is converting it (and why Visa is only allowing a stablecoin). It's also why __[Tesla](https://robinhood.com/stocks/TSLA)__ — which now lets people  directly buy cars with actual bitcoin — has instituted a [30-minute](https://www.coindesk.com/tesla-bitcoin-payment) purchase window. Given BTC's surge this year, some investors also see more potential upside in holding on to it rather than using it for purchases. But as we've seen in the past (see: 2018), bitcoin has a big potential downside, too. 

PayPal launches cryptocurrency payments (the Crypto Mainstream-ification intensifies)

__Jersey Shore ...__ *but it's a clean energy reality*. The Biden admin just [announced](https://www.whitehouse.gov/briefing-room/statements-releases/2021/03/29/fact-sheet-biden-administration-jumpstarts-offshore-wind-energy-projects-to-create-jobs/) ambitious plans to increase America's offshore wind energy. That includes a massive wind farm off the New Jersey coast, which the White House is already taking steps to approve. Picture: dozens of massive spinning wind turbines in the Atlantic Ocean. President Biden's goals for this initiative:

- __10M__ homes powered by wind energy by 2030
- __77K jobs__ created to support building wind farms 
- __78M__ metric tons of carbon dioxide emissions/year avoided
- __30 gigawatts__ of offshore wind power capacity — right now, the US is expected to have less than 20 GW by 2030 (so 30 is ambitious) 

__Vineyard Vines...__ and Vineyard Winds. Right now, the US only has [two](https://www.nytimes.com/2021/03/29/climate/biden-offshore-wind.html) tiny wind farms (near Rhode Island and Virginia). But there are 13 offshore wind projects under federal review, including "Vineyard Wind." If the proposal gets green-lit, 84 turbines would live (rent free) off the coast of Martha’s Vineyard. This month, the Biden admin took a crucial step toward [approving](https://www.nytimes.com/2021/03/29/climate/biden-offshore-wind.html) a review of Vineyard Wind, Americas' first large-scale offshore wind farm. 


Gusty

__Government priorities = corporate opportunities...__ Biden's "Build Back Better" plan [proposes](https://snacks.robinhood.com/newsletters/44rp3bUdom0Q5pREmL0SR1/articles/6FAZxow6cfIKFXsmBw8RJ2/) $2T for clean energy innovation and infrastructure. The White House estimates that $12B worth of investments *per year* would be needed to hit the 2030 wind targets. That could be a big opportunity for wind energy companies. Like: __[GE](https://robinhood.com/stocks/GE)__ (which is [testing](https://snacks.robinhood.com/newsletters/6kLH8dVkTILF9DDv2h7lL0/articles/2FCiqJHT4fUWlrwBmkRNOe/) a monster-sized offshore turbine),  __[NextEra](https://robinhood.com/stocks/NEE)__ (North America's largest generator of renewable wind energy), and __[Vestas](https://robinhood.com/stocks/VWDRY)__ (a Danish turbine manufacturer).  

The Biden admin wants to power 10M US homes with offshore wind turbines

💰  Bitcoin's rice cooker moment 

__The i-banking equivalent...__ of defaulting on your mortgage and getting foreclosed on: getting your multi-billion dollar positions sold off after missing a margin call. Trading on margin = trading (partly) with borrowed money (usually from a broker). Margin call = when equity in your margin account falls below a minimum level, and the lender asks you to put up more of your own cash or sell positions to mitigate risk. They can happen when the value of holdings in a margin account plunges. 

- __Call:__ Last week, a bunch of big banks told a large US hedge fund ([reportedly](https://www.cnbc.com/2021/03/29/credit-suisse-exits-positions-with-hedge-fund-warns-of-losses.html): __Archegos Capital Management__) that it needed to put up more $$$ to keep its positions. 
- __Response:__ Archegos basically said "IOU but ICPU" (I can’t pay you). AKA: it defaulted on the margin call, leaving the banks that loaned it money exposed to billions in losses. 
- __Result:__ Banks started selling off Archegos' positions to meet the minimum equity requirements for the margin account (and recoup some of the losses).

__It's a cascade effect...__ This big margin default is trickling down from the fund to banks to regular investors. For banks: this could mean billions in losses. __[Credit Suisse](https://robinhood.com/stocks/CS)__ and __[Nomura](https://robinhood.com/stocks/NMR)__ warned of significant hits to their quarterly financials — both stocks plunged as much as 15% yesterday. Now, banks' damage-control is causing collateral damage: retail investors.

- __Last week:__ __[Morgan Stanley](https://robinhood.com/stocks/MS)__, __[Goldman Sachs](https://robinhood.com/stocks/GS)__, Credit Suisse, and others quickly dumped a bunch of stocks tied to Archegos, forcing it to liquidate nearly [$30B](https://www.wsj.com/articles/japans-nomura-says-u-s-client-owes-it-2-billion-shares-fall-15-11616992085?mod=hp_lead_pos1) worth of positions.
- __That selloff caused many of those stocks to fall__ — including __[Viacom](https://robinhood.com/stocks/VIAC)__, __[Discovery](https://robinhood.com/stocks/DISCA)__, __[Tencent](https://robinhood.com/stocks/TCEHY)__, and __[Baidu](https://robinhood.com/stocks/BIDU)__ — even while the broader market rose. Viacom has plunged a whopping 30% since Friday.


Borrow

__High roller, high risk...__ Investment banks like Goldman lend companies billions in cash and stocks — and they make billions from these positions. Trading on margin means greater potential gain, but also much greater potential losses (that can mount fast). Before Monday’s warning, Credit Suisse said its pretax profit in January and February was the best in a decade. Now it could face billions in losses, because it may not have hedged its risk enough. 

Big banks could lose big bucks after a major hedge fund defaulted on margin calls

__Came for the free Terra chips...__ stayed for the all-inclusive resort. __[JetBlue](https://robinhood.com/stocks/JBLU)__ is known for its East Coast routes and unlimited free snacks (shoutout mini choc chip cookies). Now, it wants to Expedia-fy itself with a new travel booking [site](https://www.paisly.com/about) called Paisly. JetBlue flyers can book hotel rooms, rental cars, and even theme park tickets through the site. JetBlue plans to expand it to vacation rentals, too.

- __"Vengeance Vacays":__ As the vaccine rolls out across the US, pandemic travel has been [notching](https://www.tsa.gov/coronavirus/passenger-throughput) records. JetBlue is investing in this new product to capitalize on all the pent up travel that could be coming, after a year of roundtrips to the fridge.

__Like a red-eye to Miami...__ The travel booking market is already crowded, with companies like __[Expedia](https://robinhood.com/stocks/EXPE)__, __Priceline__, and __[Kayak](https://robinhood.com/stocks/BKNG)__. But JetBlue thinks *your* ticket is *its* ticket to success. 

- __Customization is key:__ Paisly uses your JetBlue flight info to make personalized suggestions, so you don't have to open 27 tabs and keep re-entering your flight dates. 
- The name was [inspired](https://www.businesswire.com/news/home/20210325005615/en/) by paisley patterns, "symbolizing how Paisly’s travel suggestions are unique to each customer" (and we thought it was just a Millennial hook). Customers also earn TrueBlue rewards points for booking through the site. 


_When they run out of Terra Blues chips_

Terra

__Platforms = the greatest love/hate relationship in business...__ Nonna's Pizza Shop loves that people discover its marinara through DoorDash — but hates paying DoorDash a commission. Airlines love that Expedia helps you snag their $356 LAX-JFK flight, but *hate* giving Expedia a cut. JetBlue would rather keep you on its own website. Paisly adds that all-in-one convenience, making direct booking more appealing. 

JetBlue is Expedia-fying itself with a new travel booking website

☎️ Big banks' big margin call

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

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

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


Themes

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

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


Numbers

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

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

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

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

Questions

Looking ahead: three major questions for next quarter

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

🍪  Snacks Special Edition: End-of-Quarter Review

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

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

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

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

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

Canal

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


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

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

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

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

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

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


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


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

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

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

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

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


Unpacked

Snacks Unpacked: The Gender Pay Gap

🚢  You're gonna need a smaller boat

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

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

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

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


Crunch

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

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

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

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

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

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


Chip

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

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

_Taco Bell's Tim Fry Cook moment_

🌮 Taco Bell goes full iPhone

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

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

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

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


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


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

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

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

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

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


_Big Tech reading the "new vocabulary"_

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


💰 Coinbase drops big numbers

🇨🇳 China's digital currency

🇺🇸 Corporate America pushes back

🥑 Biden's $2T makeover plan

💰 Bitcoin's rice cooker moment

☎️ Big banks' big margin call

🍪 Snacks Special Edition: End-of-Quarter Review

🚢 You're gonna need a smaller boat

🌮 Taco Bell goes full iPhone

🎮 GameStop drops the numbers