__Bringing home the bacon...__ correction: *the 8% more expensive bacon*. Consumer prices jumped 5.4% in June from last year, continuing to accelerate at the fastest pace since 2008. As the US economy gets more #flated, the BLS' monthly Consumer Price Index has been getting attention. The [CPI](https://www.bls.gov/news.release/pdf/cpi.pdf) measures prices of 80K common items — sounds like a snooze fest, *reads like a thriller*. A few gems from prices compared to a year ago:

- __Women’s dresses__ were 16% pricier. Men's pants and shorts: +11%
- __Indoor plants and flowers__ were up a succulent 5% 
- __Hotel__ prices jumped 17%. Car and truck rentals: *+88%*
- __Candy and gum:__ +3%. Liquor at restaurants: a hard +5%
- __Pet services:__ +5%. Your dog walker isn't complaining. 

__Get meta with it...__ Many economists believe that inflation fears are, in themselves, inflated. Fed Chairman Jerome Powell expects this inflation could be a one-time price increase as the economy rebounds (#tempflation). Supply chain and labor shortages have been driving up prices of raw materials and goods. A few examples:

- __Cars:__ The global chip shortage caused a spike in used car and truck prices (+45%), which are responsible for a whopping one-third of the overall CPI increase.
- __Flights:__ Airlines are [dealing](https://snacks.robinhood.com/newsletters/2ai2OqBmW4LfHN2ln2qdFL/articles/uqadxY2cnV2UQ4gAbFQ0A/) with a shortage of pilots and workers while demand is rebounding, leading to pricier flights (+25%).  


Flated

__There are two sides to inflation...__ The side that pays extra, and the side who gets *paid* extra. Lower-income consumers are more sensitive to rising prices — a spike in the price of meat, milk, or clothing can make a big difference. But some are seeing an upside too: rising wages. From Uber to McDonald's, companies are raising wages and incentives to fill the labor shortage — which, in turn, can contribute to rising prices. Another inflationary upside: soaring home and car prices — for those who own them. Homeowners got $2T richer during the first three months of this year as values spiked.

Inflation on the rise: higher prices are weighing on wallets — but making some bigger

__Grills just want to have funds...__ Grill-maker __Weber__ is taking its charbroiled stock public, and could seek a $6B valuation in an IPO. Weber's 70-year grilling history began with George Stephen Snr, the man who invented modern grills — and added a lid (key). By the time the 60s rolled around, if you didn't have a Weber grill at your backyard party, you didn't have a backyard party. Now, Weber is sounding less *Happy Days*, more *Silicon Valley*:

- __44:__ The number of times Weber used the word "disrupt" in its IPO filing. 
- __12:__ Mentions of "installed base" — 30M grills in the US, and 50M globally. 
- __iGrill3:__ Weber's app-connected grill dongle tells you when the patty is crispy.  

__And a little bit of chicken grilled...__ BBQ'ing may be the epitome of American summer, but it's also a hallmark of pandemic socializing. The "outdoor revolution" has [benefited](https://snacks.robinhood.com/newsletters/7HtER4ksmLcN4p38u13Ss9/articles/58znHWdR9HlhGlFh3iDeTX/) everyone from RV companies like __[Winnebago](https://robinhood.com/stocks/WGO)__ and __[Thor](https://robinhood.com/stocks/THO)__, to outdoor gear companies like __[Yeti](https://robinhood.com/stocks/YETI)__ and __[Canada Goose](https://robinhood.com/stocks/GOOS)__. Now, it's helping Weber and BBQ rivals like __Traeger__, which also filed to go public last week. 

- __$1B in revenue:__ For the six months ended in March, Weber's sales were up 62% compared to the same period last year. 
- __24% market share:__ One in four grills on Earth are Weber's, and it holds the top spot for American brands. 


__Brand can be more important than product...__ Weber isn’t selling grills – it’s selling its brand name. For Weber, brand recognition is more important than grill innovation (even bluetooth dongles). Weber's biggest strength is that 87% of Americans are aware of its brand — but that's also its #1 *risk* : *“Our business depends on maintaining and strengthening our brand.”* That's why it's jacking up marketing spend and [hosting](https://webergrillrestaurant.com/special-events-grilling-classes/) events like grill classes and patio parties. 


The BBQ IPO: Weber files to take its famous grills public, but it's more about brand

S&P 500

Dow Jones

Nasdaq

Bitcoin

_Check the succulent receipts [staticnak1983/E+ via GettyImages]_

💰 Inflation intensifies (feat. succulents)

__RIP skinny jeans...__ When you realize that skinny jeans are no longer in fashion — a year too late. __[Levi](https://robinhood.com/stocks/LEVI)__ sales plunged last year as we forgot what waistbands feel like (#legging-life). Last quarter, the company that invented blue jeans made a big comeback. 

- __Earnings, unzipped:__ Levi's sales more than  doubled from last year, and it swung to a $65M profit as you traded in yoga pants for "going out" fits. 
- __Bring out the party pants:__ Levi's stock is up 46% this year as reopening drives "revenge spending" on *non*-stretchy clothing. 

__Mom jeans FTW...__ While the days of 24/7 sweats are behind us, consumers are now seeking sweatpansy qualities in going-out clothes. Call it a pandemic hangover: the quest for comfort has carried over to jeans. Levi's CEO said that baggier fits made up nearly half of both men’s and women’s sales last quarter, a major shift from two years ago. Case in point: "[balloon pants](https://www.levi.com/US/en_US/apparel/clothing/bottoms/balloon-leg-womens-jeans/p/853140002)" are sold out. 

- __Trends change:__ Gen Z revived high-waisted, loose fits, which have become uniforms on TikTok. Now, __Madewell__ is even releasing gateway styles to help hardcore skinnyjeaners transition, calling them: "training wheels for people coming out of skinny.”
- __Waistlines change:__  One in three US consumers have seen a change in their waistlines since the pandemic, according to Levi's CEO. And nearly 40% of people say they no longer fit in their clothes from last year. That calls for a wardrobe change.  


Jeanius

__The real opportunity isn't the trend...__ it's the *spillover trend*. The skinny jean era has passed, and we've [entered](https://www.nytimes.com/2021/04/15/business/denim-cycle-loose-jeans.html) a "New Denim Cycle." But the big opportunity isn't changing waistlines or styles — it's the spillover potential of those trends. First you change the cut of your jeans — then you change your tops, jackets, and shoes to match (boots don't pair well with a tapered ankle). The data confirms it: Nine in 10 shoppers [plan](https://www.marketwatch.com/story/levi-strauss-gets-a-boost-from-changing-waistlines-during-the-pandemic-11625848347?mod=mw_latestnews) to revamp their wardrobes. Apparel retailers could benefit.

Levi’s big stretch: the jean icon is thriving on baggier fits and changed waistlines

__Subway, refresh...__ Doesn't sound right. This week, __Subway__ launched an “Eat Fresh Refresh” campaign to win customers back from fast-casual competitors like __[Chipotle](https://robinhood.com/stocks/CMG)__. Subway once set the sandwich bar high by pioneering a healthy, customizable sammie menu. But sales have been slipping for years as consumer tastes shift. Enter, Refresh:

- __20+ new ingredients,__ including new breads, smashed avocado, and fresh mozzarella
- __1M free sandwiches__ across the country, to whet customers’ appetites
- __A fresh online ordering system__ with revamped in-app ordering and nationwide Doordash delivery

__Biz strategies get stale, too…__ Subway's “healthy” fast food was out-innovated by competitors like Chipotle, that offered premium ingredients and convenient ordering *in addition* to customizable, "fresh" meals. The pandemic hit Subway hard, since it had few delivery and drive-through options for contactless orders. Meanwhile, competitors saw digital orders more than double over 2020. Subway has also struggled with:

- __Good fat > Low fat:__ Changing consumer preferences caused low-fat options like the Oven Roasted Chicken sammie to lose ground to low-carb and organic alternatives.
- __PR disasters:__ Including fake tuna (#funa) allegations and the sentencing of Subway spokesman Jared Fogle to 15 years in prison.


__Innovation is always in season…__ and even huge, global chains like Subway lose business when they don’t pay attention to changing tastes. Subway relied on its early “Eat Fresh” success for years, even as its reputational lettuce wilted. Now, Subway is trying to win customers back with e-orders and avocados (good fat). But its competitors have already taken a big bite out of the fast-casual market.

Subway unveils a fresh strategy after sales fall short of the full foot-long 

_Saying a final goodbye to the skinny jeans [Simon Winnall/The Image Bank via GettyImages]_

👖 Levi's loose quarter

__Comet me, bro...__ The Space Battle of the Billionaires has moved from the [Twitter](https://twitter.com/blueorigin/status/1413521627116032001) sphere to the thermosphere. Yesterday, __[Virgin Galactic](https://robinhood.com/stocks/SPCE)__ founder Richard Branson [boarded](https://www.cnbc.com/2021/07/11/richard-branson-reaches-space-on-virgin-galactic-flight.html) Virgin's VSS Unity, traveling faster than three times the speed of sound to reach the edge of space. Branson just became the first billionaire founder of a space company to go to space on his own spacecraft (meta). Next up is Jeff Bezos, who announced his own trip *before* Branson decided to out-space him. The former Amazon CEO plans to take off on a __Blue Origin__ spaceplane on July 20, along with his brother and a mystery bidder who's dropping [$28M](https://www.npr.org/2021/06/12/1005908618/jeff-bezos-blue-origin-space-auction-winner-28-million) to join them  — or $2.5M per minute of ride time. 

__Spaghetti Apollo-gnese...__ Apart from fueling billionaires' egos, these trips are major endorsements for NASA-sponsored space tourism (think: restaurant bookings on the ISS). NASA is leaning on private companies to help commercialize space. In May last year, Elon's __SpaceX__ became the first private company to send humans to space. In May, Virgin completed its first human spaceflight, a critical step before it flies space tourists — ETA: early 2022. While $250K tickets to space make headlines, tourism is still a tiny sliver of the space industry.

- __Satellites:__ One of the largest space industry subsectors, providing everything from WiFi, to telecom, to GPS and weather sensing. SpaceX's Starlink project has already [launched](https://www.cnbc.com/2021/02/09/spacexs-starlink-accepting-99-preorders-as-musk-considers-ipo.html) 1K+ high-speed internet satellites into low earth orbit — and is accepting $99 preorders. 
- __Defense:__ The real-life Space Force. For fiscal year 2022, the Pentagon requested $21B to invest in outer space security. Defense giants  __[Lockheed Martin](https://robinhood.com/stocks/LMT)__ and __[Boeing](https://robinhood.com/stocks/BA)__ both have space divisions. 
- __NASA missions:__ Boeing is [developing](https://www.ndtahq.com/how-a-public-private-partnership-is-expanding-americas-capabilities/) a spacecraft for NASA flights, and Elon's SpaceX won a $2.9B contract to develop a NASA lunar lander, beating out Bezos' Blue Origin (RIP Prime Moon delivery).

_Spotted, UFB: Unidentified Flying Billionaire [Marc Ward/Stocktrek Images via GettyImages]_

Launch

__This isn't sci-fi...__ The space industry is taking off in a real way. Space startups raised $7B in 2020, double what they raised in 2018. Today "space customers" mainly consist of governments and companies paying to launch satellites, cargo, and astronauts into space. In the not-so-distant future, they could be commercial space tourists. In the more distant future, they could be space colonizers on the Moon and even Mars ([see](https://www.cnbc.com/2021/04/23/elon-musk-aiming-for-mars-so-humanity-is-not-a-single-planet-species.html): Elon's Martian vision). 

Inside the Space Race: Branson, Bezos, and the future of the space industry 

__Waiting for the drink trolley like...__ __[Delta](https://robinhood.com/stocks/DAL)__ is rolling up with earnings for the quarter ended in June. Compared to 2020's tomato juice numbers, 2021 might look like champagne: TSA traveler volumes are back to [85%](https://finance.yahoo.com/news/delta-air-lines-dal-expected-190007635.html) of pre-pandemic levels, and Delta's expected to report a sales increase from last year (no shocker there). Domestic recreational travel is rebounding — Fourth of July flyers even *surpassed* 2019 levels. But international and business travel, which brings in [75%](https://snacks.robinhood.com/newsletters/5gmxJQUqpvzHWE4CeHvylQ/articles/48Z9me8i4MIZs8HeJ2o573/) of airline profits, remains grounded. Bill Gates said that half of biz travel may *never* return. 

__Get DJ D-Sol in here...__ Goldman Sachs' DJ-ing CEO David Solomon (aka: the banker who [drops](https://www.cbsnews.com/news/hamptons-chainsmokers-party-dj-david-solomon-goldman-sachs-investigation/) bangers) is dropping earnings instead. It's Big Banks earnings week, with __[Chase](https://robinhood.com/stocks/CCF),__ __[Citi](https://robinhood.com/stocks/C)__, __[Goldman](https://robinhood.com/stocks/GS)__, and others unveiling their numbers. In April, Chase and Goldman [revealed](https://snacks.robinhood.com/newsletters/2BaDoIcdXsja53tyH93ccQ/articles/5K9cPXQOlSNtntgG0U2X40/) record quarterly profits thanks to the IPO-palooza. Corporate and investment banking made up nearly half of Chase's revenue that quarter, and most of Goldman's. Despite a record first half for M&A activity, analysts [expect](https://www.bloomberg.com/news/articles/2021-07-09/banks-in-u-s-poised-for-weaker-results-after-pandemic-windfall?sref=q3KSFp38) that trading and loan revenue has slowed from last year. 

Events

Coming up this week...

__Big week for stablecoins...__  Stablecoin = a type of cryptocurrency whose value is tied to an asset like the dollar or gold. USD Coin, one of Earth's largest dollar-pegged stablecoins, made headlines last week.  __[Visa](https://robinhood.com/stocks/V)__ [said](https://markets.businessinsider.com/currencies/news/cryptocurreny-payments-visa-partnership-clients-spend-convert-digital-currencies-2021-7) it'll allow cardholders to pay with USD Coin at 70M merchants worldwide. Merchants will get paid in fiat (aka: regular) currency. Meanwhile, __Circle__ — the firm that operates USD Coin — is [going public](https://markets.businessinsider.com/news/stocks/circle-usdc-stablecoin-public-spac-valuation-cryptocurrency-concord-stock-price-2021-7) via SPAC at a  $4.5B valuation. While crypto mainstream-ification is advancing, regulator [scrutiny](https://www.wsj.com/articles/bitcoin-draws-more-scrutiny-from-regulators-worried-about-fraud-11625576400?mod=politics_lead_pos3) of the crypto market is also heating up. 

__Feeling the pushback...__ Big business in the US. On Friday, President Biden [signed](https://www.wsj.com/articles/biden-to-target-railroads-ocean-shipping-in-executive-order-11625736601?mod=business_lead_pos3) an exec order to curb the dominance of companies in industries including shipping, agriculture, healthcare, and tech. The goal: promote competitive markets and limit corporate dominance in everything from railroads to prescription drugs. It's part of a broader effort to confront consolidation and perceived anti-competitive pricing in big industries — and it has big companies on edge.


Zoom Out

Stories we're watching...

- __[Antitrusted](https://snacks.robinhood.com/newsletters/4XhXFxZ9Jc6bcL9aMggLSr/articles/5DhQrRVBBPnLyHqLLoYa2c/):__ __BMW__ and __Volkswagen__ were fined $1B for colluding to *avoid* building greener car tech. 
- __[Blocked](https://snacks.robinhood.com/newsletters/3X5QOUOPZP7r08Bn09G0wM/articles/1bh7VsNPhZAUrYlZdft4vv/):__ __Didi__'s mega IPO party gets cut short, as China blocks app downloads and signups for the ride-hail giant. 
- __[Fitted](https://snacks.robinhood.com/newsletters/3X5QOUOPZP7r08Bn09G0wM/articles/2r41d7ctRv7gEv407QapzX/):__ __Torrid__'s hot IPO: how the plus-size retailer is tapping into a major, underserved market. 


ICYMI

Last week's highlights...

🚀 Inside the space race

__If Tony Soprano were driving in 2021…__ he’d pull up in a Volkswagen. European antitrust regulators [fined](https://www.wsj.com/articles/volkswagen-bmw-fined-1-billion-by-europe-over-diesel-tech-collusion-11625741892) Volkswagen and BMW more than $1B – about 5% of their annual profits – for colluding to avoid upgrading their emissions tech. In this plot, the "conspirators" are __Volkswagen__, __BMW__, and Mercedes-maker __Daimler__.

- __The pact:__ Between 2009 and 2014, the three German car giants agreed *not* to compete with each other to develop cleaner, expensive emissions tech. *"I won't do it if you don't."*
- __The rat:__ Daimler  agreed to blow the whistle on its co-conspirators in exchange for immunity in the EU investigation.
- __The punishment:__ Severe. VW will pay $590M, BMW will pay $442M, and Daimler *would've* paid nearly $900M — if it hadn’t squealed.

__But this is actually *a sequel*...__ Volkswagen’s been busted before. In 2015’s #Dieselgate, VW outfitted cars with software to [cheat](https://snacks.robinhood.com/newsletters/2FGYY02td4t3rp9KjKvLQM/articles/2UCVo6eZfPbk4jUIyb9qaM/) emissions tests. Since then, VW’s paid $38B+ in fines and fees – but the German auto biz has struggled to clean up its soiled reputation. Now, EU regulators are sending an unprecedented message: no collusion of any kind. 


Colluded

__EU antitrust just got broader...__ It’s the first time the EU has used antitrust law to punish companies for suppressing tech innovation, instead of usual no-nos like [price-fixing](https://snacks.robinhood.com/newsletters/4c8kK4Rid9pHznCNpssxSz/articles/4dudsh94ZC6uaeWk14f7up/). The three car companies didn't agree to all raise prices at once — that would be OG collusion. Instead, they tried a more *creative* type of collusion: don't innovate, boost profit. But the EU put its foot down. Antitrust might get broader in the US, too. New FTC leader Lina Khan has [said](https://snacks.robinhood.com/newsletters/2Z4BofvGDzgoroXZ4OTaiL/articles/75lgUHK9VCoHmFBsxK4D6C/) that we need "a new vocabulary" for addressing Big Tech's dominance.

Antier-trust: BMW and Volkswagen were fined $1B for colluding to avoid building cleaner tech

__Don't eat the milk jelly cleanser...__ __Glossier__ is the viral direct-to-consumer makeup/skincare brand whose products look like candy — or art supplies. From tubes of "Cloud Paint" blush and "Balm Dotcom" skin salves, to roll-on highlighter sticks, Glossier is the epitome of Instagram-able packaging. Now it has something else to gram about: 

- __Double unicorn status:__ Almost. Glossier just raised $80M in funding, [reportedly](https://wwd.com/beauty-industry-news/beauty-features/glossier-beauty-fundraise-265-millino-venture-capital-stores-1234876045/) bringing its valuation to $1.8B.  
- __The digital-first company__ plans to use the fresh cash to bring back physical locations, which it shut down during the pandemic. The first new stores will be in Seattle, LA, and London.

__Signature makeup look...__ The "no makeup" makeup look. Seven-year-old Glossier pioneered modern, direct-to-consumer beauty with its TikTok-friendly minimal aesthetic. Think: Millennial pink and pastel-everything. It keeps things simple with 39 products that are easy to apply.

- __Household name with Gen Zillennials:__ Two in every five US women between ages 18 and 34 have heard of Glossier, and it has 5M+ customers globally.
- __Digital super power:__ Glossier's online sales increased across all categories during the pandemic, while makeup sales plummeted for OG retailers. 80% of its sales come from its own site.


Highlight

__The power is in the packaging...__ because it's the first thing we see. People often buy makeup, food, and other items because they look *cute*, without even knowing the ingredients or quality. Cool retail stores are a form of packaging, too. For Glossier, they're an extension of its marketing strategy to inspire, then *acquire* customers. Examples of "well-packaged" Glossier shops: a [fried chicken](https://sf.eater.com/2018/3/14/17117234/glossier-rheas-cafe-mission-pop-up-san-francisco) and lipstick pop-up at a pink cafe in SF, and a Boston setup made of university-inspired “campuses." Coming this August: a huge, mushroom-themed concept store in Seattle.  


Millennial makeup favorite Glossier snags a $1.8B valuation by embracing "the power of the package" 

_No makeup makeup vibes [Westend61 via GettyImages]_

🚗 Volkswagen's collusion plot twist

__Put down your lightsabers...__ The JEDI war is over. In 2019,  __[Microsoft](https://robinhood.com/stocks/MSFT)__ scored a huge win by snagging the Pentagon's $10B cloud-computing contract (aka: "JEDI"). Over 10 years, Microsoft would modernize the Department of Defense's IT systems, storing and crunching government data in its cloud. After losing the bid, cloud competitor __[Amazon](https://robinhood.com/stocks/AMZN)__ appealed the decision. In response to the 'Zon's lawsuit, a federal judge temporarily blocked the deal earlier this year. 

- __The tea:__ Amazon claimed that then-President Donald Trump sabotaged its JEDI bid because of beef with *The Washington Post*, which Jeff Bezos owns.
- __Now, JEDI is canceled.__ The Biden admin [scrapped](https://www.cnbc.com/2021/07/06/pentagon-cancels-10-billion-jedi-cloud-contract.html) the contract, in favor of a new contract that will be awarded to multiple cloud companies. 

__Cloud moves fast...__ Two years after outlining its cloud-computing needs, the DoD wants to reassess its options. Now, Amazon and Microsoft will both be solicited for proposals for the new contract, called "Joint Warfighter Cloud Capability" (less catchy). Other qualified bidders could [include](https://www.wsj.com/articles/pentagon-plans-reboot-of-jedi-cloud-contract-11625589039) __[Google](https://robinhood.com/stocks/GOOG)__, __[Oracle](https://robinhood.com/stocks/ORCL)__, and __[IBM](https://robinhood.com/stocks/IBM)__. The DoD is America's largest employer, which means big cloud cash. 

- __In context:__ Companies and governments are moving in droves from on-premise data storage (think: OG Word doc on your PC) to cloud storage (think: Google Doc in the cloud).
- __The cloud-computing market is worth $214B__, and the competition for market share is intense. Amazon's AWS is the leader, while Microsoft's Azure is #2.

JEDI

__The Cloud Wars are far from fluffy...__ They're brutal for a reason.  Cloud is the oil of the modern economy, powering everything from Netflix to your credit card payments.  Cloud infrastructure service revenue was $39B in the first quarter, up 37% from last year. Once a company transitions to a cloud service, it's hard to move off because of high switching costs. High-profile contracts like this Pentagon deal are crucial to gaining market share in a cloud-eat-cloud world.

Cloud Wars: the Pentagon calls off its $10B JEDI contract, two years after Microsoft won

__*Has anyone seen my tabby cat?*...__ When Tabitha's missing, a Facebook post won't help  — so you turn to __Nextdoor__. The hyper-local social networking app allows you to chat with neighbors, exchange recs, and get the scoop on local news. Like: your fave mailman just retired, and that "earthquake" you felt was actually just you. People seek advice on everything from babysitters, to laundromats, to borrowing BBQ grills. 

- __Nextdoor is going public__ through a SPAC merger that values it at [$4.3B](https://www.wsj.com/articles/nextdoor-to-go-public-in-proposed-spac-merger-11625574577), nearly double its 2019 valuation. The 10-year-old company will raise nearly $700M. 
- __KIND:__ Nextdoor's future ticker combats perceptions about its chatrooms, like "Trina, can you take out your stupid trash before 2 am.”
- __$$$:__ Nextdoor makes most of its money from ads for local businesses and real estate brokers. Two big trends in its favor: business reopenings and the housing boom.

__Giving away my extra TP rolls...__ Too kind. Nextdoor thrived during the pandemic, as people flocked to the app for info about Covid, testing/vax sites, and local biz closures. Now:

- __Nearly one in three households__ in the US use the Nextdoor app. 
- __275K+__ neighborhoods across 11 countries are on Nextdoor.
- __Facebook__ is [trying](https://abc7news.com/facebook-neighborhoods-ad-library-login-community-standards/7216725/) to Zuck Nextdoor with a copycat called “Neighborhoods.”


_"This is definitely going on Nextdoor" [Caspar Benson via GettyImages]_

Tabitha

__OG social has become too antisocial...__ Most of the time: You're scrolling photos of random influencers and meme accounts, and barely interacting with your 1K followers. On FB, you're flooded with notifications about people you haven't seen since 5th grade. People are seeking real community post-pandemic, but big social networks have become *too* big. Tight-knit communities and real-life connections help Nextdoor users feel closer — call it "local media." 

Neighborhood social network Nextdoor is going public: it’s capitalizing on “local media”

☁️ Cloud Wars, demystified

__Cancel the IPO honeymoon...__ Celebrations didn't last long for __[Didi Chuxing](https://robinhood.com/stocks/DIDI)__. Last week, the Chinese ride-hail giant raised $4.4B in the largest US IPO of the year — and the biggest IPO by a Chinese company since ecomm giant __[Alibaba](https://robinhood.com/stocks/BABA)__ in 2014. Didi notched a $68B market cap on its first trading day (two-thirds of an Uber). But that's  *how it started*. 

- __*How it's going*:__  Not well. Over the weekend, Chinese regulators ordered Didi to stop adding users and told app-store operators like __[Apple](https://robinhood.com/stocks/AAPL)__ to take down Didi’s China service.
- __Why:__ China's explanation was vague, but regulators said Didi collected personal info “in violation” of the country's rules. Now, China is carrying out a cybersecurity review.
- __Didi's stock plunged 20%__ yesterday. BTW: two other recently IPO’d Chinese companies, __[Full Truck Alliance](https://robinhood.com/stocks/YMM)__ and __[Kanzhun](https://robinhood.com/stocks/BZ)__, are facing the same restrictions. 

__Control > success...__ Five years ago, China might've hailed Didi's blockbuster IPO as a source of national pride. This year, China is driving the flops of its own biggest IPOs as it reminds tech companies who's in charge:

- __Strike 1:__ The infamous __Ant Group__ [squashing](https://snacks.robinhood.com/newsletters/3Y16VU6wsQpOaP5bwzUgFf/articles/10lyNbTzg1HbB3563ygUqe/). China halted the fintech giant's mega-IPO, and pressured it to restructure its biz. 
- __Strike 2:__ China ordered 34 of the country's largest tech cos, including TikTok-owner __ByteDance__, to comply with anti-monopoly laws or face “severe punishment."
- __Strike 3:__ China's antitrust regulator slapped Alibaba with a record-breaking $2.8B fine.


Blocked

__The theme has shifted for investors...__ It used to be: "Invest in China's growth opportunity." Now it's more like: *"Invest in China at your own risk."* Didi warned of this risk in its IPO filing, saying that if the Chinese government changes its interpretation of regulations or finds that Didi isn't compliant, the company could face "severe penalties." Zooming out, investors' opportunity is the growing size of China’s consumer market. The risk is the Chinese government's growing oversight. 


Didi's mega IPO party gets cut short, as China blocks app downloads and signups

__All about that CURV...__ __[Torrid](https://robinhood.com/stocks/CURV)__ is the largest direct-to-consumer brand of women’s plus-size clothing in North America. You might remember it as a sub-brand of Hot Topic (RIP studded belts). Six years after breaking up with checkered skinny jeans, Torrid has its own hot topic: a successful IPO. Torrid stock has jumped 15% since its NYSE [debut](https://finance.yahoo.com/news/why-shares-of-plus-size-womens-clothing-brand-torrid-are-going-haywire-on-its-ipo-day-182344258.html) last week — ticker symbol: CURV. 

- __The profile:__ Torrid defines its style as "unapologetically youthful and sexy," and is "maniacally" focused on fit. 
- __The numbers:__ Nearly $1B in sales last year, and it's profitable. But its profit has been roughly halving each year since 2018.
- __The source:__ Online sales made up 70% of Torrid's revenue last year while its 600+ stores were temporarily closed. 

__Don't curve your enthusiasm...__ The plus-sized market is significant, and it's growing. In the US, it serves a whopping 90M women wearing sizes 10 and up. Torrid says many brands treat plus-size customers as an afterthought, which is why the market has been underserved. Torrid's biggest strength: putting that customer base front-and-center. 


Curve

__Torrid turned fit into a brand...__ and won strong customer loyalty. 78% of plus-size women say they would spend more on clothes if they had more options available in their size. Urban Outfitter's blind spot is Torrid's super power: Last year, Torrid had an *82%* customer retention rate. By dedicating itself to the needs of a broad, unsaturated market, Torrid is tapping into a key opportunity. 

Torrid's hot IPO: how the plus-size retailer is tapping into a major, underserved market

_When the party takes a turn for the worse [fstop123/E+ via GettyImages]_

🛑  Didi's post-IPO blocker

__Alexa, play "In My Life" by The Beatles...__ Jeff Bezos is feeling post-Prime Day nostalgia. Yesterday, __[Amazon](https://robinhood.com/stocks/AMZN)__'s founder officially stepped down as CEO after 27 years at the helm. The 'Zon has come a long way since 1995, when Bezos sold the site's first book from his Seattle garage. Bezos had left a cushy hedge fund job to take a risk on his ecomm idea, [saying](https://yourstory.com/2020/02/jeff-bezos-boss-david-shaw-ecommerce-amazon/amp) "Even if I fail, I would not have any regrets." Spoiler: *he didn't fail*. 

- __Enter Jassy:__ Andy Jassy = Amazon's new CEO. The Amazon lifer was the CEO of AWS, Amazon's *massive* cloud computing service ($45B in annual sales).    
- __Exit Bezos:__ Kind of. Bezos is now exec chairman, focusing on new Amazon products and special projects. 
- __Cue investors:__ Amazon stock barely budged when the transition was [announced](https://snacks.robinhood.com/newsletters/74ToixyRpxD4zT2RPAUqb/articles/1TzZuEtqxwSJ5xwQGSycsr/) in February, signaling investors have confidence in the shift.

__Special delivery...__ CEO onboarding packet, coming in *bulky*. Jassy is inheriting an ecomm and cloud leader with side-hustles in hardware, grocery, advertising, healthcare, streaming, *and* Hollywood (see: [MGM acquisition](https://snacks.robinhood.com/newsletters/1N31BqWqFLT91MgZLUXNEq/articles/6ccELOc86lnzTpPcIn2vKo/)). 

- __What’s going well:__ Money. Amazon's sales surged 44% last quarter, and profit more than tripled as the ecommerce boom keeps booming. The 'Zon is expected to rake in [40%+](https://www.cnbc.com/2021/06/18/as-e-commerce-sales-proliferate-amazon-holds-on-to-top-online-retail-spot.html) of US ecomm sales by the end of the year. 
- __*Not* going well:__ Regulatory scrutiny. The FTC's new leader Lina Khan is a Big Tech critic who wrote a [major](https://snacks.robinhood.com/newsletters/2Z4BofvGDzgoroXZ4OTaiL/articles/75lgUHK9VCoHmFBsxK4D6C/) paper on Amazon's dominance while at Yale Law. Last week, Amazon made moves to stop her from participating in 'Zon-related antitrust investigations. Oh, and a House committee just [advanced](https://snacks.robinhood.com/newsletters/5tRYnsRgn3rJ4caqG3lXnl/articles/1RLuAoU5YouPqt1GL30lzZ/) major legislation to curb Big Tech's dominance. 

Nostalgic

__Bezos' focus was  blistering growth...__ Jassy's focus might be  corporate responsibility. Amazon's 14 corporate principles include: "deliver results," "bias for action," and "customer obsession." A few days before Jassy took over, Amazon renamed them Leadership Principles and [added](https://www.bloomberg.com/news/articles/2021-07-01/amazon-revises-corporate-values-days-before-bezos-steps-down#:~:text=Amazon%20Revises%20Corporate%20Values%20Days%20Before%20Bezos%20Steps%20Down,-By&text=Amazon.com%20Inc.%20employees%20are,adding%20two%20more%20bullet%20points.) two: “Strive to be Earth’s Best Employer,” and “Success and Scale Bring Broad Responsibility.” They're reactions to criticism Amazon has received over the years — but they're also Bezo's parting words to Jassy,  to tee up Amazon's next chapter. 

The King of Amazon hands over his crown: here's what's ahead for the new CEO 

__Space Battle of the Billionaires...__ Most people do summer vacays in Florida or Yosemite — billionaires go to space. __Virgin Galactic__ founder Richard Branson plans to [board](https://www.wsj.com/articles/richard-branson-plans-virgin-galactic-space-trip-before-jeff-bezos-11625181813) a test spaceflight on Sunday. Awkward, since that's nine days before Jeff Bezos is scheduled to embark on his __Blue Origin__ space trip (announced *before* Branson's). Aside from fueling billionaires' egos, these trips are billboards for NASA-sponsored [space tourism](https://snacks.robinhood.com/newsletters/5FWjUZF34wCrp57CR8ykmX/articles/4nclQE3efo2kF2GIohnPxn/). The fact that CEOs are getting aboard helps build confidence in the emerging industry. 

__Marvel returns...__ with a vengeance. __Marvel__ is releasing *Black Widow* in theaters and Disney+ on Friday, after delaying it for more than a year. It’s the first Marvel flick to debut in theaters since the pandemic began. Now: 80% of movie theaters are open, and Covid restrictions have  relaxed. The US box office is [seeing](https://www.cnbc.com/2021/07/02/fourth-of-july-box-office-not-as-robust-this-year-but-its-on-track.html) a strong recovery, but hasn't caught up to its pre-Covid success yet. *Black Widow*'s ticket sales could give us a glimpse into summer demand. 

__Labor shortage update...__ Still short. US employers [added](https://www.wsj.com/articles/june-jobs-report-unemployment-rate-2021-11625176511?mod=hp_lead_pos1) an expectation-beating 850K jobs in June, the biggest gain in 10 months. Unemployment ticked up to 5.9%, in part because more Americans started job-searching. As the US economy roars back to life, demand for workers is revving up, too. Wages jumped last month as employers from restaurants to gig apps tried to attract workers. Case in point: __[Uber](https://robinhood.com/stocks/UBER)__ and __[Lyft](https://robinhood.com/stocks/LYFT)__ are spending millions on driver incentives, and you've probably seen ads recruiting food delivery drivers. 

__Heat waves in the middle of June...__  A record-breaking heat wave has been [plaguing](https://snacks.robinhood.com/newsletters/5MbpAg6JNCCUZT9rzZmVeK/articles/786ZOvBNd39DMDQ0HLmZ2b/) the Pacific Northwest. The temp in Portland soared to 116 degrees last week, hotter than Miami, Dallas, and LA have *ever* been. All that sweat means more $$$ for A/C companies like __[Carrier](https://robinhood.com/stocks/CARR)__, __[Lennox](https://robinhood.com/stocks/LII)__, and __[Trane](https://robinhood.com/stocks/TT)__, whose stocks are near record highs. But for the agriculture industry, the too-hot-handle temps could mean [smaller](https://www.nationalobserver.com/2021/07/02/news/heat-wave-bc-prairies-farmers-climate-change) crops and fewer workers. For consumers, it could mean even pricier food. 


- __[Dismissal](https://snacks.robinhood.com/newsletters/3do8YTeMc1o5ouXYxDJMjM/articles/2VeNxgBDUGn9Tyo5q82MGq/):__ The FTC was disappointed when a judge failed to Like its antitrust complaint against __[Facebook](https://robinhood.com/stocks/FB)__. 
- __[Tok](https://snacks.robinhood.com/newsletters/4pL5CXoQ8WqEd2krxJNCcR/articles/4xlYC1FzgdfLlf3hjCbsBz/):__  __TikTok__ is rolling out longer videos, but the real story is its Chinese sister Douyin. 
- __[Spaghetti](https://snacks.robinhood.com/newsletters/5MbpAg6JNCCUZT9rzZmVeK/articles/1TtaqnhsNW91YZNIQTFbsb/):__ __[Bumble](https://robinhood.com/stocks/BMBL)__ is opening its first restaurant to facilitate IRL connections. But it's not about dating — it's about relevance.


_Bezos' galactic greeting committee [Donald Iain Smith via GettyImages]_

📦 Amazon's next era

__"Say So," the full version...__ Well, almost. __TikTok__ is [rolling](https://www.theverge.com/2021/7/1/22558856/tiktok-videos-three-minutes-length?scrolla=5eb6d68b7fedc32c19ef33b4) out three-minute videos for everyone, a boost from the current one-minute limit. That means you could learn the full lyrics of viral songs, instead of half a chorus. It *also* means that the nature of TikTok — and its bite-sized content — could change. 

- __24.5 hours:__ How long the [average](https://www.adweek.com/media/app-annie-tiktok-leads-youtube-in-average-time-spent-per-month-in-the-us/) US TikToker spends on the app each month — over 30 years, that would amount to nearly a full year of life scrolling the Tok (#womp). 
- __20 hours:__ How long US users spends on __YouTube__ each month. YT has biased its algorithm toward viewer retention. Read: longer vids.
- __If longer videos__ lead to higher usage, TikTok could tweak its addicting algorithm to promote long clips. 

__While vids get longer...__ the wallet is getting fatter. TikTok's Chinese owner __ByteDance__ saw sales more than double last year to $34B, [according](https://www.wsj.com/articles/tiktok-owner-bytedances-annual-revenue-jumps-to-34-3-billion-11623903622) to WSJ — nearly 14X __Snap__'s annual revenue. 

- __Even wilder stat:__ Last year, ByteDance reportedly had *1.9B* monthly users across its platforms, which include TikTok and Douyin, the Chinese TikTok. 
- __Douyin__ =  the original, non-international version of TikTok used by Chinese nationals. Same branding, same parent, separate content — censored by the Chinese gov't. 

Toker

__ByteDance has the "two worlds" advantage...__ That could be its biggest competitive edge. Nearly one in four people on Earth use a ByteDance app — that puts it on par with Facebook and YouTube, and far past Snap and Twitter. Meanwhile: Facebook, YouTube, Snap, and Twitter are all *banned* in China. Because these platforms aren't censored by China, they're closed off from the world's most populous country, limiting their growth. With TikTok *and* Douyin, ByteDance has the best of both worlds. 

TikTok is rolling out longer videos — but the real story is its Chinese sister Douyin 

__Legally Zoomed...__ to the public market. When you need legal help, you either a) do hours of Googling, or b) beg your friend to FaceTime with their lawyer mom — anything to avoid paying $500/hour. __[LegalZoom](https://robinhood.com/stocks/LZ)__ tries to fix that by offering legal services online. Think: DIY legal documents and e-consultations. You fill out some questions, and LZ whips up completed legal docs. On Wednesday, the 20-year-old company whipped up an IPO:

- __LegalZoom shares__ soared 35% from their IPO price on their first trading day, giving it a $7B+ market cap.  
- __8%:__ LZ's CEO says that only 8% of legal services are delivered online, creating a big opportunity for online legal providers. Legal services market = ~$50B opp. 

__"Call my e-lawyer...__ I need to LLC my CBD kombucha startup." 2020 was the [best](https://www.npr.org/sections/money/2021/06/29/1010229557/what-americas-startup-boom-could-mean-for-the-economy) year on record for new business creation, and applications for new businesses have continued to soar this year. LegalZoom reaped the benefits of all those business apps:

- __Last year, 10% of new LLCs__ (limited liability companies) and 5% of new corporations in the US were formed through LegalZoom. LZ's sales soared to nearly half a billion. 

Kombucha

__LZ is a piggyback stock...__ to the Creator Economy. In September, WSJ [reported](https://www.wsj.com/articles/is-it-insane-to-start-a-business-during-coronavirus-millions-of-americans-dont-think-so-11601092841) that Americans were starting businesses at the fastest rate since 2007. And it's not just brick-and-mortar stores. During the pandemic, Americans created new businesses from Etsy shops, online fitness services, apps, and podcasts. And those creators needed legal docs to seal the deal.   

LegalZoom jumps after IPO: the DIY legal service is riding high on the business boom 

When the CBD kombucha LLC gets approved [10'000 Hours via GettyImages]

📱 TikTok does long Toks 

__Crank the A/C to "Arctic Tundra"...__ ICYMI: a record-breaking heat wave has been plaguing the Pacific Northwest. Portland makes you think of rainy days in coffee shops — this summer, it feels more like you're *in* the coffee. The temp in Portland [soared](https://www.nbcnews.com/news/weather/portland-soared-116-degrees-hotter-dallas-miami-la-have-ever-n1272617) to 116 degrees yesterday, hotter than Miami, Dallas, and LA have *ever* been. Seattle has seen hundreds of heat-induced ER visits, and Portland is dealing with [melting](https://www.npr.org/2021/06/29/1011269025/photos-the-pacific-northwest-heatwave-is-melting-power-cables-and-buckling-roads) power cables and roads.

__Too hot to handle...__ Not for A/C companies. All that sweat means more $$$ for HVAC companies like __[Carrier](https://robinhood.com/stocks/CARR)__, __[Lennox](https://robinhood.com/stocks/LII)__, and __[Trane](https://robinhood.com/stocks/TT)__. Not so coincidentally, *their stocks are near record highs*. There's just one problem: A/C generates tons of carbon emissions. Keeping the world cool requires heavy electricity use, which is often powered by fossil fuels like coal and gas. 

- __15% of greenhouse gases come from HVAC systems__ — aka: heating/cooling tech. Now, some A/C giants are trying to go "sustainable."
- __Enter Trane Technologies:__ Trane's sales jumped last quarter as the world heated up, but it says its #1 strategy is "winning through sustainable innovation." 
- __Trane's goal:__ Reduce 1 gigaton of CO2 emissions from its customers’ footprint by 2030, through “clean” technologies and higher energy-efficiency. 

Cool

__A/C companies are their own tailwind...__ Thanks to the "Conditioning Climate Cycle." A/C helps fight the sweat-inducing effects of climate change, but it also significantly contributes to them. Nineteen of the hottest years on record have been in the past 20 years. That means more people installing and cranking A/C, which means growing sales for HVAC companies — and more climate-warming emissions. But if HVACs can become more sustainable, they can start reversing more of their negative impact, too.

Air conditioning stocks are at record highs, and so are outside temps: it's a self-feeding cycle

__Swipe right on the zucchini pasta...__ Four months after its IPO, __[Bumble](https://robinhood.com/stocks/BMBL)__ is doing an IRO: initial restaurant offering. The dating app where women make the first move is [opening](https://www.bloomberg.com/news/articles/2021-06-30/dating-app-bumble-will-open-its-first-cafe-in-new-york-in-july) its first restaurant in NYC this month: "Bumble Brew."  The bar/restaurant concept was orginally focused on “date-friendly” food. Read: no splattering sauces or volcanic burritos. Then, the pandemic forced Bumble to put its gastronomic plans on hold, and it emerged with a different mission. 

__Not just first dates...__ Bumble wants Brew to be a spot for connections of all kinds, from frittata with friends and family to networking over chardonnay. So it scrapped the date-friendly menu and added riskier choices like squid ink spaghetti. 

- __That aligns with Bumble's new biz strategy:__ *not just a dating app*. Bumble has expanded with Bumble Bizz for career networking, and Bumble BFF for new friends.
- __*Back to the dating*:__ 90% of US Bumble users say they're ready to date IRL again. While Brew could host career chats, pent-up dating demand is Bumble's biggest opportunity. 
- __Dating app folder is overheating:__ Bumble will have to share that demand with its much bigger rival __[Match](https://robinhood.com/stocks/MTCH)__, which owns Tinder, Hinge, and 20+ other e-romance apps. 

_Remembering how to swipe right IRL [Westend61 via GettyImages]_

Buzzy

__Apps bring scale, but community brings relevance...__ If out of sight = out of mind, then Bumble wants to be the opposite — and gain an edge over Match in the process. Bumble shares are down 24% since it IPO'd. Building community with a physical presence could help it get its groove back. That's one reason companies like __Warby Parker__ and __AllBirds__ keep opening physical stores, despite having successful ecomm businesses. 

Bumble is opening its first restaurant, but it's not about dating — it's about relevance 

 🐝  Bumble's restaurant play

__They should pay in points…__ [United](https://robinhood.com/stocks/UAL) is buying 270 new Boeing and Airbus planes in the [largest](https://www.axios.com/united-biggest-plane-order-in-its-history-bf07b4b1-367f-4a29-bf5a-fcbe2f356002.html?utm_source=newsletter&utm_medium=email&utm_campaign=newsletter_axiosam&stream=top) aircraft deal in a decade. We’re talking [$30B](https://www.wsj.com/articles/united-places-its-biggest-jet-order270-boeing-and-airbus-planes-11624960800?mod=hp_lead_pos2) worth of flying metal that’ll result in: 100 new flights/day, 30% more seats, and a hefty 25K new jobs.

__When you say “Work From Anywhere”...__ does that include 35K feet? United’s new birds aren’t the ultra skinny ones — and that’s on purpose. To get business flyers back, United seems to be creating flying offices with hopes that you’ll “Work From Airplane”:

- __More:__ More legroom, in-seat screens, and overhead suitcase space.
- __Faster:__ WiFi speeds kicked up a few notches so… you’re… not… buffering.
- __Premium-ier:__ Overall seating capacity will rise 30%, but [premium seating](https://www.wsj.com/articles/the-battle-to-lure-back-premium-travellers-has-begun-11624977777) will jump 75%, meaning more room to physically network.

Takeoff

__United could be opting for the  Field of Dreams strategy...__ If you build it, they may come. Bill Gates predicted that [half](https://www.cnbc.com/2020/11/17/coronavirus-bill-gates-says-more-than-50percent-of-business-travel-will-disappear-long-term.html) of business travel is never coming back. But United’s CEO disagrees: “Every day tells us that business and international travel will ultimately come back 100%.” Bold. But that may be why United splurged a record amount on this deal: As marketing to convince you that working from an airplane is comfy. United isn’t just predicting demand — it’s trying to create demand.

United just placed its biggest airplane order — we call them “Sky Offices”

__Check the back of your Apple device…__ “Designed in California, assembled in China” — not on the label: Assembled at Foxconn’s Chinese manufacturing facility. [Taiwan-based](https://www.foxconn.com/en-us/about/worldwide) Foxconn has done to electronic manufacturing what Henry Ford did to carmaking. And it was supposed to expand that expertise to a brand new factory in the US. Time for an update:

__“8th Wonder of the World”...__ That’s what then-President Trump called the Foxconn plan for Wisconsin: Hire up to 13K local workers to make [screens](https://www.cnbc.com/2017/07/26/watch-trump-announces-wisconsin-jobs--maybe-with-apple-supplier-foxconn.html) for cars, TVs, and other electronics. In exchange, Foxconn would get up to [$4B](https://madison.com/wsj/news/local/govt-and-politics/state-foxconn-say-new-deal-reached-for-southeast-wisconsin-manufacturing-plant-with-fewer-tax-credits/article_baf80224-69ac-5a65-a65c-d3337f1a2d81.html) in benefits from the state, county, and the small town of Mount Pleasant, WI. So here’s the update:
- __1.5K:__ That’s the new job goal, after the deal got negotiated — [90%](https://madison.com/wsj/news/local/govt-and-politics/foxconn-to-receive-80-million-not-3-billion-under-new-deal-with-wisconsin/article_1a25e3b9-d37d-5031-b297-199f6bfb3b78.html) smaller than planned.
- __$1B:__ That’s how much Wisconsin has [spent](https://www.cnbc.com/2021/06/29/after-wisconsins-foxconn-debacle-states-rethink-giant-subsidies.html) to prep the site — not cheap.

__Transactional incentives can be a powerful weapon…__ that can backfire. Wisconsin hoped to be the epicenter of advanced American manufacturing. Instead, the town is saddled with debt, and local workers face broken job promises. The lesson Wisconsin officials took: One-off deals with corporations for job creation may not be optimal. Instead, [CNBC](https://www.cnbc.com/2021/06/29/after-wisconsins-foxconn-debacle-states-rethink-giant-subsidies.html) highlights that Wisconsin is pivoting to focus on workforce development, infrastructure, and biz-friendly policies – not deals. 