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

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

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

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


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

Swerve

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


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

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

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

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


Build

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

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

Dow Jones

S&P 500

Nasdaq

Bitcoin

🚙 Lordstown Motors, unjuiced

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

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

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

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


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

Merch

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

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


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

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


Events

Coming up this week...

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

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


Zoom Out

Stories we're watching...


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


ICYMI

Highlights from last week...

🧢  Netflix pulls a Disney 

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

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

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

ASAP

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

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

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

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

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

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

Holo

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


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

 🛍 "Buy now, pay later" billions

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

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

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

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


Again

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

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

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

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

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

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


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

The Big IRS Leak: from Elon to Warren Buffett, the US' richest pay little to no income taxes

_Bitcoin's tender embrace [Linda Raymond/Moment via GettyImages]_

💴  Bitcoin's legal tender moment 

__Bite your coin...__ and your nails. Bitcoin fell to its lowest level in months yesterday — its crypto buddies Ether and Dogecoin fell, too. The dip happened after US officials recovered $2.3M in crypto that was paid as ransom to the Colonial Pipeline hackers. ICYMI: the US' largest fuel pipeline got [hacked](https://snacks.robinhood.com/newsletters/4G8N3WpBgRoMSpXHAML44t/articles/v7Ixe754ezFPvMk4gSHBw/) last month. Colonial [paid](https://www.cnbc.com/2021/06/08/colonial-pipeline-ceo-testifies-on-first-hours-of-ransomware-attack.html) the hackers $4.4M in Bitcoin to reclaim its systems. 

- __Bye bye, Bitcoin:__ Investigators accessed the password for one of the hackers’ Bitcoin wallets, and managed to seize more than half of the ransom. 
- __Hello, Feds:__ The $$$ was recovered by the newly launched Ransomware and Digital Extortion Task Force, which was created as part of the government's response to surging cyberattacks.

__Bitcoin for hostage...__ The ransomware surge has been putting a negative spotlight on Bitcoin. One cyber expert [called](https://www.npr.org/2021/06/08/1004223000/how-a-new-team-of-feds-hacked-the-hackers-and-got-colonial-pipelines-bitcoin-bac) BTC the "oxygen that fuels this ransomware fire." Now, the US government is getting involved as hackers are increasingly targeting critical infrastructure. Experts believe Russia is funding this "[ransomware plague](https://www.axios.com/ransomware-industry-jbs-colonial-1c7594e5-31e5-4c05-b74c-45a040413cb2.html)." 

- __This month,__ Earth's largest meat producer got hit. And Energy Secretary Jennifer Granholm [said](https://www.axios.com/cyber-attacks-energy-secretary-power-grid-granholm-d3868010-ce1a-4c23-b15d-89b131eeb728.html) that bad actors are likely trying to shut down the US power grid "as we speak." 

__The Feds pulled back the curtain...__ Hackers who hijack computer systems demand payment in BTC, because it's hard to trace — but yesterday's ransom recovery proved it's *not impossible*. It's a big win for the government, because ransomware is [rarely](https://www.npr.org/2021/06/08/1004223000/how-a-new-team-of-feds-hacked-the-hackers-and-got-colonial-pipelines-bitcoin-bac) recovered. But it may have raised concerns over the security and anonymity of Bitcoin. Another potential reason behind the crypto drop: fear that a regulatory clampdown is coming for the crypto space. 

Crypto prices drop after US officials recover $2.3M in Bitcoin ransom

__503 Service Unavailable...__  The internet had a bad day. Dozens of websites, including the NYT and the UK government's portal, went dark for nearly an hour yesterday. Reddit's and Amazon's sites were also affected. Blame an internal glitch at cloud-service provider __Fastly__. 

- __Fastly is a "stoxygen" company...__ You don't see it, but it's kind of everywhere. Companies use it to speed up their webpages and get things to your screen *faster* (hence, Fastly).
- __Fastly hosts content__ (think: news articles) and delivers them to your screen from a server near you, reducing the time it takes for info to reach users. 

__Fastly was down...__ *but its stock wasn't.* Fastly shares *jumped* 11% yesterday (awkward), despite the outage. Shares of rival content delivery networks, like __Cloudflare__ and __Akamai__, were also up. 

Down

__Investors noticed the flattering details...__ within the not-so-flattering headlines. The outage highlighted how many of the world’s websites rely on Fastly and other content delivery networks. While reading the outage news, investors may have noticed that Fastly has 336 enterprise clients — including big names like Amazon, NYT, Stripe, Shopify, and even a government. The bad news generated some big buzz for Fastly.

CNN, PayPal, and the UK government's website were all down because of one company 

_Fastly's content (un)delivery moment [Pauline St. Denis/Corbis/VCG via GettyImages]_

💰  Bitcoin, un-ransomed 

__Fly like a G7...__ and drop bad news on Big Tech. The Group of Seven = the US, UK, Canada, France, Germany, Italy, and Japan. The G7 met in London over the weekend — and left with some tea to spill: the countries [agreed](https://www.wsj.com/articles/g-7-nations-agree-on-new-rules-for-taxing-global-companies-11622893415?mod=searchresults_pos5&page=1) that multinational companies should pay a minimum tax rate of at least 15% in each country in which they operate. 

- __For a long time,__ companies like __[Google](https://robinhood.com/stocks/GOOGL)__ and __[Amazon](https://robinhood.com/stocks/AMZN)__ have been plopping their international headquarters in countries with low corporate tax rates. 
- __Think:__ Ireland, which has a 12.5% tax rate, hosts the European HQs of many tech and pharma giants. That's created beef with Germany, France, and other EU countries where these companies *also* operate (they want more tax money).

__The luck of the Irish...__ may end. The deal marks a big step toward potentially adopting a 15% global minimum corporate-tax rate. That Dublin office = not so clutch anymore. Companies would have to pay the minimum rate *regardless* of where they're based. The agreement aims to stop large multinationals from seeking out tax havens —  and force them to pay more of their income to governments. But it still has to go through the G20, which includes China, India, and other developing economies.


_The mood at Dublin tech pubs [mihailomilovanovic/E+ via GettyImages]_

Taxy

__This could level the playing field...__ and end the "race to the bottom." For decades, countries have been competing with each other to attract corporate investment for economic growth. The main way to do that: *lower companies' taxes*. In 2000, more than [55](https://www.washingtonpost.com/us-policy/2021/03/15/yellen-pushes-global-minimum-tax-white-house-eyes-new-spending-plan/) countries had corporate tax rates above 30% — now, fewer than 20 do. President Biden wants to raise corporate taxes in the US to [fund](https://snacks.robinhood.com/newsletters/2FGYY02td4t3rp9KjKvLQM/articles/1d7eiIZp8iwgUI9aKXGIQZ/) government programs. The admin is backing  a 15% global minimum to help keep the US competitive.

The G7's historic global tax agreement: corporate giants should pay at least 15% 

__Not vax-related...__ for once. The Food and Drug Administration has made headlines for another reason. Yesterday, the FDA approved __[Biogen's](https://robinhood.com/stocks/BIIB)__ Alzheimer’s drug aducanumab (rolls off the tongue). Biogen shares soared 38% on the news. It's a big deal — so big that the Nasdaq [halted](https://www.investors.com/market-trend/stock-market-today/dow-jones-falls-3-key-stocks-in-buy-range-biogen-rallies-ahead-of-fda-decision/) trading of Biogen shares ahead of the FDA's decision.

- __#1:__ It's the first new therapy for Alzheimer's in *20 years*. It's also the first FDA-approved drug to slow mental decline in people living with Alzheimer’s.
- __6M__ people are affected by Alzheimer's in the US, where the disease is the sixth-leading cause of death. 
- __$56K:__ The drug's list price *per year*. It's expected to generate billions in sales for Biogen. 

__There's a catch...__ The FDA approved it on the condition that Biogen conduct *another* clinical trial. Many Alzheimer’s experts aren't happy with the approval and its mixed supporting data. Some aren't convinced the clinical trial data was enough to prove the drug works.


Drugs

__Drug stocks depend on drug pops...__ Which is why Biogen's five-year stock chart looks like a rollercoaster. In March 2015, Biogen stock was trading even higher than it was yesterday after it [dropped](https://investors.biogen.com/news-releases/news-release-details/biogen-idec-presents-positive-interim-results-phase-1b-study) positive early-stage data from an aducanumab trial (yep, the same Alzheimer's drug). Then in July 2015,  Biogen released additional data about the trial that disappointed investors — and lost $20B in market value as its stock plunged.  The results of Biogen’s next aducanumab trial could impact the stock again. 

Biogen's Alzheimer's breakthrough: shares soar nearly 40% after FDA approval

💰 The Big Tech tax 

__Dream on...__ This month marks the 90th anniversary of the American Dream — or at least, when the term was first [coined](https://www.ncronline.org/blogs/ncr-today/happy-anniversary-american-dream). Historian James Truslow Adams described it as "that dream of a land in which life should be better and richer and fuller for every man, with opportunity for each according to ability or achievement." Ninety years later, thousands of Snackers told us whether they think the American Dream is still alive. 

- __The TLDR:__ It was 50-50. Most of you think the American Dream is  alive, but some think it's dying — and some think it's dead, but could return.
- __The core of the Dream:__ 26% said  financial freedom, 17% said  equal opportunity, and 40% said  a combo of those plus material ownership and racial equity.
- __Key to achieving the Dream:__ 40% said hard work, and 43% said a combo of hard work, luck, and privilege.

__Lay down the stats...__ Generations of Americans have climbed the economic ladder for [decades](https://www.weforum.org/agenda/2020/09/social-mobility-upwards-decline-usa-us-america-economics/#:~:text=For%20decades%2C%20a%20majority%20of,harder%20to%20make%20this%20ascent.), but there are signs that economic mobility is waning. The fraction of Americans who earn more than their parents has shrunk from 90% of those born in the 1940s to 50% of those born in the 1980s. Income inequality in the US has been rising for decades, and is [wider](https://snacks.robinhood.com/newsletters/bg6FaCgu8qc8z1Zllmofx/articles/3ZVsKmCRQNLUOSaAVHfNJi/) between Black and white Americans.  

__In your words...__ We asked what the American Dream means to you today:

- *“The ability to move above the station you were born in life through hard work and perseverance.”*
- *"To fail and have continuous opportunity to get back on our feet regardless of discrimination."*
- *“Filling up my gas tank without checking my bank balance first.”*
- *"Exists because people are still willing to do anything to get to America."*


_What Snackers said the American Dream means to them_

__The dream is what you make of it...__ For some, it aligns with Adams' first description: *opportunity* to succeed, regardless of your background.  For others, it's a lie. And for some, it's changing: thanks to stimulus spending, US households have saved [$2T](https://www.wsj.com/articles/consumer-spending-personal-income-april-2021-11622154969) more than they would have normally. In April, US household income was [11%](https://www.wsj.com/articles/consumer-spending-personal-income-april-2021-11622154969) higher than *pre*-pandemic levels. Biden's presidency could further shape this trajectory, with trillions in proposed spending on social initiatives. 

Is the American Dream still alive? We're diving into your answers

__What do you meme?...__ __[GameStop](https://robinhood.com/stocks/GME)__ reports on Wednesday. ICYMI: GameStop shares have soared 1,400% this year as retail traders [rallied](https://snacks.robinhood.com/newsletters/6jwYdiy4al8n5v0GOdIik/articles/3BaPiKzHQyiMoyxvpIyqNG/) around the money-losing video game company. Some are bullish about its new, ecomm-savvy board. But annual sales have fallen each year since 2017. In April, GameStop raised $551M by [selling](https://www.cnbc.com/2021/04/26/gamestop-shares-jump-after-the-reddit-favorite-raises-more-than-500-million-in-stock-sales.html) new shares and said its CEO is stepping down. Investors will likely be watching for signs of ecommerce progress.

__After Cream of Mushroom Monday...__ and Tomato Bisque Tuesday: __[Campbell Soup](https://robinhood.com/stocks/CPB)__ serves up earnings on Wednesday. The canned soup legend [thrived](https://snacks.robinhood.com/newsletters/7oqsnC8zl2TBCc1NByeQF1/articles/3CS1ynDs6oVhxFPNtQOv9I/) early in the pandemic, as people stocked up on Campbell classics like Snyder's pretzels and Goldfish. After nearly a decade of falling sales, Campbell's soup sales started *growing* again. But growth has slowed as we return to a lifestyle that involves *less* can-hoarding. Campbell is trying to keep momentum going with Millennial-friendly recipes — we'll see if it's succeeding.


__Recovery is chugging along...__ Jobless claims [fell](https://www.wsj.com/articles/global-stock-markets-dow-update-05-27-2021-11622100790?mod=markets_lead_pos1) to a new pandemic low, and wages are [growing](https://www.nytimes.com/2021/06/03/business/economy/wage-growth-pandemic.html).  On the flip side: prices are rising faster than expected as the US economy revs up and shortages abound. Prime example: Ubers are getting [pricier](https://snacks.robinhood.com/newsletters/7E0Xgqi9nVw0CWQRdC3lvE/articles/4mDChkIDEAYryjE2WU9OBa/) (and they're always 24 minutes away). Companies are struggling to bring workers back, since  42% of people on enhanced unemployment earn more than they did at their jobs. 

__Crypto ransoms intensify...__ Cyber attacks are continuing to target critical infrastructure. Last week, Earth's largest meat producer was [forced](https://snacks.robinhood.com/newsletters/5UsR9CJqj5w4UCSqDJZdp7/articles/4fnXenwFLWyEzrp3u1OJl0/) to shut beef plants after a ransomware attack. Last month, the US' largest fuel pipeline was also [hit](https://snacks.robinhood.com/newsletters/4G8N3WpBgRoMSpXHAML44t/articles/v7Ixe754ezFPvMk4gSHBw/)  — and paid $4.4M in Bitcoin to reclaim its systems. Experts believe Russia is funding "[the ransomware plague](https://www.axios.com/ransomware-industry-jbs-colonial-1c7594e5-31e5-4c05-b74c-45a040413cb2.html)." We'll be looking to see if the US government takes a stronger stance. President Biden meets with Russian president Putin next week.



- __[Popcorn](https://snacks.robinhood.com/newsletters/5UsR9CJqj5w4UCSqDJZdp7/articles/7dL53WKkpyqfvZJO0amHD9/):__ __[AMC](https://robinhood.com/stocks/AMC)__ debuted a loyalty program for individual investors (feat. free popcorn), as shares soared. It's catering to the retail investor.
- __[Blue](https://snacks.robinhood.com/newsletters/jF3LIog2WHKh7zqo33DuG/articles/2QKrMaJaf3KxzRpKyGkYbA/):__ __[Twitter](https://robinhood.com/stocks/TWTR)__ launched its first subscription service,  "Twitter Blue," for ~$3/month — but will people pay for social?


🇺🇸  Is the American Dream still alive? 

__I’ll have the Musk Burger...__ *with a side of Ludicrous Mode Mayo*. That could soon be a reality for Tesla owners: __[Tesla](https://robinhood.com/stocks/TSLA)__ just [filed](https://electrek.co/2021/06/01/tesla-files-trademark-restaurant-services/) trademarks for restaurant services, including take-out, self-service, and pop-up restaurants. Think: fries and pressed juice while you juice up your Model S — instant "range anxiety" killer. 

__Pull up the Elon tweet...__ Since 2017, Tesla execs have been flirting with restaurant concepts. Picture: Tesla-only charging stations with convenience stores and upscale burger joints. In 2018, Elon tweeted that he was “Gonna put an old school drive-in, roller skates & rock restaurant" at a Tesla Supercharger station in LA. That hasn't happened yet, but Tesla *has* been developing a "Charge Club" model.

- __Tesla opened a lounge__ at its Kettleman City, CA Supercharger station. Think: free cappuccinos while your car charges — like an airline lounge, but for EV trips.
- __Owner-only perks__ reinforce the "lifestyle brand" strategy. That's why Chinese EV maker __[Nio](https://robinhood.com/stocks/NIO)__ created "Nio Houses," sleek showroom-clubhouses to give Nio owners a place to chill.


_Meanwhile at a Tesla "Charge Club" [Flashpop/DigitalVision via GettyImages]_

Mayo

__Exclusivity breeds brand loyalty...__ exactly what Tesla needs right now. Tesla’s global EV market share [fell](https://www.cnbc.com/2021/06/02/tesla-faces-pressure-as-ev-competition-heats-up-ex-ford-ceo-says.html#:~:text=According%20to%20Credit%20Suisse%20analyst,down%20from%2029%25%20in%20March.) to 11% in April, from 29% in March. __[Ford](https://robinhood.com/stocks/F)__ and others are dropping sleek EVs at attractive prices, and the Biden admin is pushing for wider EV adoption. Competition is hotter than ever, and Tesla needs differentiators to justify its higher prices. With "Charge Clubs," Tesla can offer an ecosystem that others haven't built yet. Just like some people pay extra for loyalty flights with lounges, some might buy a Tesla over a Mach-E thanks to "Charge Clubs." 


Tesla’s drive-in restaurant moment couldn’t have been served at a better time

__I'm Blue, da ba dee da ba di...__ Had to. Yesterday, __[Twitter](https://robinhood.com/stocks/TWTR)__ started [rolling out](https://blog.twitter.com/en_us/topics/company/2021/introducing-twitter-blue.html) its first subscription service in Australia and Canada: "Twitter Blue." For ~$3/month, Blue offers access to exclusive features and perks. Like:

- __Undo Tweet:__ A 30-second timer to undo your tweet before it posts. Better than a delete button, worse than an edit button. 
-  __Bookmark Folders:__ To better organize your saved tweets. Side note: you can save tweets?
- __Reader Mode:__ Provides a "beautiful" reading experience for those long threads we all hate. 
- __*Not* included:__ The power to exceed the 280 character limit. Guess we're sticking with haikus. 

__I see you diverisifying...__ Twitter confirmed that "free Twitter" is never going away (greeeeat). Subscriptions are just part of its goal to double annual revenue by 2023. Ad revenue makes up ~90% of Twitter's sales, so subs could add some #diversification — which is currently top of mind for social media companies. 

- __Apple rolled out iOS changes__ that could [hurt](https://snacks.robinhood.com/newsletters/3pnV87VuDPifCjtp4W4gHh/articles/7vbuNAkTTZcIt3oAQiUaOr/) social apps' precious ad-targeting abilities. 
-  __Social giants have been taking heat__ from lawmakers and regulators about privacy and engagement-driven targeting algorithms. 


__Social media subscriptions are an untested concept...__ __Facebook__, Insta, Twitter, and __Snap__ are free because they sell eyeballs to advertisers. We don't know how many people will actually pay for Twitter Blue, which still shows ads. But if a social giant offered an *ad-free* subscription, that could have wide appeal. Social apps reward engagement because they want users to spend more time scrolling ads. An ad-free sub could change their business incentives. 

Twitter launches its first subscription service — but will people pay for social?

🍧 Tesla's drive-in restaurants

__Vegans aren't sweating it...__ __JBS__, aka: Earth's largest meat producer, was [forced](https://www.bloomberg.com/news/articles/2021-05-31/meat-is-latest-cyber-victim-as-hackers-hit-top-supplier-jbs) to shut down all of its US beef plants after a cyberattack over the weekend. The ransomware attack halted output at facilities that supply *nearly a quarter of America's meat* — and some in Australia and Canada. Ransomware = hijacking computer systems and demanding payment for the release of the "hostage."  The FBI is [blaming](https://www.forbes.com/sites/joewalsh/2021/06/02/the-fbi-is-blaming-the-jbs-hack-on-a-russian-speaking-criminal-gang-heres-what-we-know-about-them/?sh=76f8d4d7fd27) a Russia-based hacking group called REvil (classic). JBS' CEO [said](https://www.axios.com/ransomware-industry-jbs-colonial-1c7594e5-31e5-4c05-b74c-45a040413cb2.html) that most plants would be operating by Wednesday (aka: yesterday).

__*Niet good*...__ JBS is one of four meat giants that control more than 80% of US beef processing, so this attack is raising national food security alarms. Cyber attacks have been increasingly targeting critical infrastructure. Think: pipelines, power grids, and food production facilities. 

- __Since May 2020,__ there have been 40+ publicly reported ransomware attacks against food companies. 
- __Last month:__ Colonial,  the US' largest fuel pipeline, was [hit](https://snacks.robinhood.com/newsletters/4G8N3WpBgRoMSpXHAML44t/articles/v7Ixe754ezFPvMk4gSHBw/) with a crippling ransomware attack. That caused a run on the pumps, since Colonial carries nearly half of the East Coast's gas. Colonial paid [$4.4B](https://www.wsj.com/articles/colonial-pipeline-ceo-tells-why-he-paid-hackers-a-4-4-million-ransom-11621435636) worth of Bitcoin to reclaim its systems. 
- __Last year:__ [~$350M](https://www.axios.com/ransomware-industry-jbs-colonial-1c7594e5-31e5-4c05-b74c-45a040413cb2.html) worth of cryptocurrency payments went to ransomware attacks, up 3X from 2019. "Ransomware-as-a-Service" is a business now. Victims don’t want to lose their data, so they pay up.


Beef

__This corporate problem may require a government solution...__  Hackers are seeking payment in Bitcoin, which is hard to trace — and might require sophisticated government intelligence. Plus, each time a company pays a ransom, it encourages more attacks. Experts [believe](https://www.axios.com/ransomware-industry-jbs-colonial-1c7594e5-31e5-4c05-b74c-45a040413cb2.html) Russia is funding the "ransomware plague." Companies can't pressure Russia to stop — but the government can. President Biden will have plenty to discuss when he meets with Russian president Putin later this month.


The world’s biggest meat supplier shut plants after a major cyber attack — here's what might help

__The corn is popping...__ and AMC smells butter. __[AMC](https://robinhood.com/stocks/AMC)__ stock nearly doubled  yesterday, rallying a whopping 95%. Shares popped so quickly that they triggered [four](https://www.nyse.com/trade-halt-current) NYSE trading halts  — aka: the NYSE temporarily paused trading of AMC stock, because it moved too rapidly outside of its "price band." This year, the stock is up over 3,000%, and AMC now boasts a $28B market cap, up from $500M a year ago.  

- __While it's hot:__ On Tuesday, AMC [sold](https://www.marketwatch.com/story/amc-sells-85-million-shares-at-near-4-premium-to-mudrick-capital-stock-surges-2021-06-01) 8.5M new shares for $230M to an investment firm called __Mudrick Capital__. 
- __Not the first time:__ AMC has sold shares multiple times this year to capitalize on its stock surges and raise cash.

__The corn is free...__ AMC stock closed at a record high yesterday, even while 30% of movie theaters are still closed and some studios are going direct-to-streaming. Retail traders have rallied around the stock, helping AMC avoid pandemic bankruptcy. Now, AMC is turning its individual shareholders into loyalty members:

-  __AMC unveiled a new portal__ on its website, just for retail investors. Shareholders can access exclusive promos, like discounts and invitations to special screenings.
-  __A free (large) popcorn__ is another new [perk](https://investor.amctheatres.com/newsroom/news-details/2021/AMC-Entertainment-Holdings-Inc.-Unveils-All-New-Communication-Initiative-to-Engage-Directly-With-Its-Sizable-Retail-Shareholder-Base-Through-the-Launch-of-AMC-Investor-Connect/default.aspx) for AMC retail investors, along with direct communications from CEO Adam Aron.

_It's on the house  [SolStock/E+ via GettyImages]_

__AMC is catering to the retail investor...__ 3.2M individual investors own 80% of AMC shares. Now, AMC is [taking](https://investor.amctheatres.com/newsroom/news-details/2021/AMC-Entertainment-Holdings-Inc.-Unveils-All-New-Communication-Initiative-to-Engage-Directly-With-Its-Sizable-Retail-Shareholder-Base-Through-the-Launch-of-AMC-Investor-Connect/default.aspx) steps to engage retail shareholders in a way we haven't seen before. In the words of AMC's Aron: "these people are the owners of AMC, and I work for them.” AMC's moves speak to the growing importance of retail investors in the markets.

AMC debuts a loyalty program for individual investors, as shares nearly double in a day

🍿 AMC's stock surge

__Checked both Uber and Lyft...__ then checked the bus schedule. If you were one of the [7M](https://people.com/travel/air-travel-hits-pandemic-era-highs-memorial-day-weekend/) people who passed through TSA during Memorial Day weekend, there's a good chance you Ubered/Lyfted from the airport. There's also a good chance that your rides broke the bank. ICYMI: surge pricing is the new regular pricing. 

- __+40%:__ How much the cost of an Uber/Lyft ride was up in April, [according](https://www.nytimes.com/2021/05/30/technology/uber-lyft-surge.html) to one research firm. In March, prices surged 37%. 

__*Your Uber is 24 minutes away*...__ dope. __[Uber](https://robinhood.com/stocks/UBER)__ and __[Lyft](https://robinhood.com/stocks/LYFT)__ are dealing with major driver shortages, which is boosting prices and wait times. Half of Americans are vaxed, the CDC lifted its mask mandate for FVPs (fully vaxed peeps), and Shot Girl Summer is starting. Ride-hailers don't have enough drivers to meet rebounding demand. 

- __Why drivers aren't returning:__ President Biden extended the $300 extra/week unemployment benefit through September, and 42% of people on unemployment now [earn more](https://snacks.robinhood.com/newsletters/3o33BaDrVUn7Qvhf5sZumz/articles/2rjYa4D3zFcw5Zgdm33xCE/) than they did at their jobs. Plus, childcare and corona concerns are keeping workers home. 
- __Why prices are rising:__ Uber/Lyft are offering large bonuses and running ad campaigns to get people driving — in addition to jacking up prices for rides. 
- __It's not just an Uber thing:__ Prices are [rising](https://snacks.robinhood.com/newsletters/7HkkS4VanKbpTUDjbeQ51k/articles/5tVDiejV1yGV2RWElrSk28/) across many industries, from food to cars, as the US economy revs back up and shortages abound. In April, a key inflation indicator [rose](https://www.cnbc.com/2021/05/28/pce-price-index.html) a faster-than-expected 3.1%.

_Waiting for the surge pricing to end like... [FluxFactory/E+ via GettyImages]_

Flated

__The gig economy is in an awkward phase...__ Ride-flation addresses Uber and Lyft's biggest PR issue: *not paying drivers enough*. More than other types of companies, Uber/Lyft can easily pass on extra costs to consumers. Now, drivers are getting paid more — but customers aren't happy. Long-term, higher fares may cause customers to shift to other modes of transport. That's why Uber/Lyft are trying to solve the shortage before riders do. 

The Great Uber Shortage: ride-hail prices and wait times are soaring on driver scarcity

__A cushy earnings report...__ Canadian pot giant __[Canopy Growth](https://robinhood.com/stocks/CGC)__ revealed that sales were 37% higher in its latest fiscal year. Canopy is finally selling more pot than it harvests, and still holds the #1 spot in Canada's “flower” market (flower = weed). The buzz kill: Canopy *lost* $1.7B, but says it's still on track to turn a profit next year. Despite strong growth across categories, earnings missed expectations and the stock fell 7% yesterday.

__Looking beyond the flower...__ Canopy's goal of "unleashing the power of cannabis to improve lives" goes *beyond* leafy greens. Canopy has been leaning into "beyond the flower" products. Think: CBD wellness gummies and THC iced tea. It's even selling CBD [pet snacks](https://www.shopcanopy.com/en/martha-stewart-cbd) with Martha Stewart (for when your Schnauzer is stressed after work). "Beyond the flower" is thriving: Canopy's "Other" category saw the fastest growth last quarter.

- __Beverages:__ Canopy launched a portfolio of THC drinks in Canada, capturing a 35% dollar share of the entire category.
- __Edibles:__ From Sativa and Strawberry soft chews to cannabis-infused chocolates, Canopy is growing its line of edible treats.
- __Vapes:__ Canopy expanded its marijuana and CBD vape pen and cartridge offerings with the acquisition of __Ace Valley__.


__Legalization is still a big "if"...__ Despite being one of the biggest weed companies, Canopy's yearly sales were just $450M — less than 1% of  Bud-maker __[AB InBev](https://robinhood.com/stocks/BUD)__'s annual sales. To really grow, Canopy and other cannabis cos need marijuana to be federally legalized in the US — it's still as illegal as LSD at the federal level. While cannabis companies try to hash it out with the US government, "beyond the flower" products like CBD edibles and drinks will be key to growth. The CBD market is [expected](https://www.grandviewresearch.com/industry-analysis/cannabidiol-cbd-market#:~:text=The%20global%20CBD%20market%20is,USD%2013.4%20billion%20by%202028.&text=Marijuana%2Dderived%20CBD%20dominated%20the,share%20of%2061.4%25%20in%202019.) to grow to $13.4B by 2028, from $3.5B today.

🚙 Lordstown Motors, unjuiced

🧢 Netflix pulls a Disney

🛍 "Buy now, pay later" billions

💴 Bitcoin's legal tender moment

💰 Bitcoin, un-ransomed

💰 The Big Tech tax

🇺🇸 Is the American Dream still alive?

🍧 Tesla's drive-in restaurants

🍿 AMC's stock surge

🚗 Uber's endless surge pricing