__Long weekend on the beach...__ US air travel over Memorial Day weekend was [back](https://www.tsa.gov/coronavirus/passenger-throughput) to three-quarters of 2019 levels. The US economy is roaring back to life and is expected to grow 6.5% this year, its highest rate since 1984. Other rich countries are also rebounding: China’s economy expanded at a record 18.3% last quarter, and the UK is growing at the fastest rate since WWII. Driving recovery:

- __Vaccines:__ Wealthy countries poured billions into securing vaccines early for their citizens. In 2020, the US spent $12.4B on Operation Warp speed for vaccine development and delivery. Now [half](https://www.wsj.com/articles/half-of-u-s-adults-are-fully-vaccinated-11621974770) of US adults are fully vaxed.
- __Stimulus:__ Rich countries were able to afford stimulus programs to support their economies. The US spent a whopping $5T, more than any other country. 

__While rich countries rebound...__ poor nations are [falling](https://www.wsj.com/articles/covids-next-challenge-the-growing-divide-between-rich-and-poor-economies-11621343332?mod=hp_lead_pos4) further behind. Covid is surging, economies and health systems are crumbling, and poverty is increasing. The pandemic caused the first rise in extreme poverty  since the '90s. Emerging markets are on track to vaccinate  less than one-third of their citizens this year, versus 72% for developed nations. In Africa, just  0.4% of the 1.5B population has been fully vaxed. 

- __1.5M:__ The number of Covid deaths that have already been reported this year will soon surpass the 2020 tally of 1.8M. Latin America, Asia, and Africa account for 72% of deaths.
-  __34M__ people are on the brink of famine because of the pandemic, a record 35% annual increase, compounded by soaring food prices and weak tourism. 
- __100M:__ More than half of children in Latin America are out of school, and many are unlikely to return. Globally, 800M+ students don't have access to computers. 


Macro

__The Great Divide has long-term implications...__ Developing economies will take years to recover. Before the pandemic, the gap between the developing and the developed world was narrowing. The pandemic reversed that progress, deepening inequality. While the middle class barely budged in the US and in China, it's shrinking in developing countries. Looking ahead: more than half of low-income economies are at risk of fiscal crises, which could destabilize other regions. 


The Great Pandemic Divide: rich and poor economies are on diverging paths

__I like big budgets and I cannot lie....__ President Biden [proposed](https://www.npr.org/2021/05/28/1000843544/biden-proposes-a-huge-hike-in-government-spending-in-a-6-trillion-budget) a ginormous $6T budget for next fiscal year. It would push federal spending to its highest levels since WWII — and create deficits of at least $1.3T/year until 2030. The focus: infrastructure, public health, and education. Biden would nearly double the top capital gains tax rate on millionaires to 43.4%. TBD whether it'll fly in Congress, where Dems have a razor-slim majority.   

__Like a G6...__ more like G7. The Group of Seven = the US, UK, Canada, France, Germany, Italy, and Japan. The G7 summit is set for June 11, but the group could greenlight a minimum global corporate tax rate before then. Last week, the US Treasury [offered](https://www.reuters.com/business/finance/us-treasury-backs-off-21-global-minimum-corporate-tax-rate-wants-least-15-2021-05-20/#:~:text=The%20U.S.%20Treasury%20Department%20on,minimum%20for%20U.S.%20multinational%20firms.) to accept a minimum corporate tax of 15%. A global minimum could allow G7 countries to [stay competitive](https://snacks.robinhood.com/newsletters/2FGYY02td4t3rp9KjKvLQM/articles/1d7eiIZp8iwgUI9aKXGIQZ/) while raising taxes on corporate giants — key to funding Biden's budget proposal. 


Zoom Out

Stories we're watching...

__24/7 legging life...__ __Lululemon__ reports earnings on Thursday. Lulu found its zen in the WFH era thanks to the flexibility of its fits: athletic enough for a home yoga sesh, stylish enough for Whole Foods, and comfy enough for a Netflix binge. Direct-to-consumer revenue doubled in 2020 as Lulu's online sales dominated. We'll see how Lulu fared last quarter as the US reopened — retailers are [seeing](https://snacks.robinhood.com/newsletters/lmendgmwiqrFZ5v9KHvVo/articles/21BgOct7iwkh3NajATzc3g/) "revenge spending" on *non*-stretchy clothes. 

__A buzzy report...__ Canadian pot giant __Canopy Growth__ reports earnings today before markets open. 2020 was a breakout year for cannabis: legal sales across the US [hit](https://www.forbes.com/sites/willyakowicz/2021/03/03/us-cannabis-sales-hit-record-175-billion-as-americans-consume-more-marijuana-than-ever-before/?sh=3226b2af2bcf) a record $17.5B, up 46% from 2019. But Canopy's sales have also been growing thanks to "[beyond the leaf](https://snacks.robinhood.com/newsletters/3TPLYshPco821e473TlZwS/articles/3uw7AxyVGXLWeEmtpMqQbQ/)" initiatives. Think: CBD-infused sparkling water, CBD wrinkle cream, and a Martha Stewart partnership. We'll see how those newer products performed compared to the leaf.  


Events

Coming up this week...

- __[Crypto](https://snacks.robinhood.com/newsletters/7JShb5XWJq91aGPuZDaZU2/articles/13qwbHppfBUjQj5YxqHiM6/):__ __Chia__, the "green" alternative to __Bitcoin__, just doubled its valuation and could IPO soon.
- __[Confirmed](https://open.spotify.com/episode/3qsMKlV4FMzcMnE8EQbNWl):__ __Amazon__ is buying __MGM__ for $8.5B, adding thousands of titles to Prime’s streaming library — streamers are (literally) [becoming](https://snacks.robinhood.com/newsletters/1N31BqWqFLT91MgZLUXNEq/articles/6ccELOc86lnzTpPcIn2vKo/) studios.  
- __[Anniversary](https://snacks.robinhood.com/newsletters/5FWjUZF34wCrp57CR8ykmX/articles/2HEWEQpeCQJy5XeMuzxH0v/):__ One year after George Floyd's murder, we looked at how companies have acted on $50B worth of racial equity pledges.


ICYMI

Highlights from last week...

Dow Jones

S&P 500

Nasdaq

Bitcoin

_Post-long weekend vibe [izusek/E+ via GettyImages]_

💵  The Great Divide 

__Fits like an oversized Gap hoodie...__ A classic 2000s look. __[Gap](https://robinhood.com/stocks/GPS)__ is taking off its Zuck hoodie and throwing on its interior designer glasses. The mall icon is partnering with __[Walmart](https://robinhood.com/stocks/WMT)__ to launch a home decor brand called Gap Home (creative). Think: decorations, organic cotton bedding, tabletops, and bath accessories. The confusing twist: the Gap-branded collection will be sold exclusively on *Walmart's* website. Under new CEO Sonia Syngal, Gap has been trying to start new revenue streams. Home goods are an obvious first choice. 

__The house is (still) hype...__ Gap recognized that a bit late. When lockdowns hit, Americans shifted their spending from jeans and cocktails to the only place that mattered: home. We [thought](https://snacks.robinhood.com/newsletters/7Fl0kcKPHzNEVEVwnee0Zp/articles/3djXYQJYytx1qKMDTR9yG1/) the DIY House Hype might start slowing down *last May*. Last quarter, __[Home Depot](https://robinhood.com/stocks/HD)__ and __[Lowe's](https://robinhood.com/stocks/LOW)__ proved that the House Hype is going stronger than ever. Plus, a booming housing market means more homes to fill with scented candles and wall sconces. 

- __For Gap:__ It's a distribution "[slam dunk](https://www.cnn.com/2021/05/26/business/gap-walmart-home/index.html)." While it's starting online, Gap Home will eventually be available in Walmart *stores*. Key stat: [90%](https://corporate.walmart.com/newsroom/2019/02/13/automation-is-reshaping-work-across-america-a-new-report-explores-the-impact-and-how-communities-might-respond) of Americans live within 10 miles of a Walmart.
- __For Walmart:__ Gap Home will make its stores more competitive in the home category through exclusive offerings at accessible prices (think: a $65 king comforter set).

_Gap joins the House Hype party [Maskot via GettyImages]_

Homey

__Retail reflects the economy...__ and the middle may be getting squeezed. The consumer confidence gap between low earners and high earners has nearly [tripled](https://www.axios.com/inequality-consumer-confidence-tripled-year-index-ad01b834-a435-4e8f-8a20-4490bd73db94.html) since May. Louis Vuitton and the Dollar Store are thriving, while J. Crew is in the middle trying to find its customers. Gap was hanging in the "middle" sphere for a while, but Gap Home represents a move *down* market. That could be a smart move, if the consumer confidence gap widens. 


Gap teams up with America's largest retailer to launch a home decor brand — here's why

__It's on sail...__ __[Royal Caribbean](https://robinhood.com/stocks/RCL)__ got the first green light from the CDC to start "test cruises," after being landbound for over a year. Cruise companies like RC and __[Carnival](https://robinhood.com/stocks/CCL)__ haven't been allowed to operate in the US — their biggest profit puppy — since *March 2020*. The test cruises are expected to start sailing from Miami in late June. 

__Will there be "test buffets"?...__  Test cruises are required for ships that *aren't* guaranteeing that at least 95% of passengers have been vaxed. The simulated cruises will carry "Volunteers of the Seas." In case you're interested: you have to be 18+ and agree to be Covid-tested. If Covid cases hit a certain level, RC will have to end the cruise. 

- __"Real" cruises:__ RC said it will require all passengers who are 16 or older to provide proof of vaccination when revenue cruises resume. 
- __Awkward:__ Florida just passed a law that prevents cruise companies from asking passengers for proof of vaccination. 


Cruise

__Cruise companies have "slingshot" potential...__ but they may not be able to milk it yet. "Slingshots" are companies whose performance could surpass *pre*-pandemic levels, thanks to pent-up demand from their pandemic absence. Carnival already has [more](https://www.travelandleisure.com/cruises/carnival-cruises-booking-numbers-2022#:~:text=Had%20in%202019-,Carnival%20Says%20It%20Already%20Has%20More%20Bookings%20for%202022%20Than,Carnival%20CFO%20David%20Bernstein%20said.) cruise bookings for 2022 than it did in 2019. But even though half of US adults are fully vaxed, half *aren't*. Test cruises are a step forward — but CDC restrictions mean cruise companies may not be able to fulfill their slingshot potential for a while. 

Royal Caribbean gets the first go-ahead for dress-rehearsal cruises 

🚢 The test cruises are coming

__Bad week for oil giants...__ Last month, __[Exxon](https://robinhood.com/stocks/XOM)__'s activist investor __Engine No. 1__ slammed Exxon's energy transition plan — or lack thereof. The hedge fund sounded the "[Blockbuster Alarm](https://snacks.robinhood.com/newsletters/GthYqJXfXa1UXvTAPKzZr/articles/1zYvayrbd8lJxnS8ecuB30/)," saying Exxon faces an existential risk from tying its future to fossil fuels. Unlike Shell and BP, Exxon hasn't vowed to move away from oil and gas, arguing they'll remain key. Now, *it might not have a choice*.

- __Surprise:__ Engine No. 1 won at least two seats on Exxon's board, a historic defeat for Exxon that will likely force it to change its oil-focused strategy. 
- __Receipts:__ Engine's bid to win shareholder votes — and Exxon's quest to prevent that — became one of the most expensive proxy fights *ever*. 

__The little Engine No.1 that could...__ Engine No. 1 owns only  0.02% of Exxon’s stock. Though Exxon aggressively  tried to persuade  investors to vote against Engine, it still managed to snag seats. Engine capitalized on retail investors’ worries about Exxon's shrinking profits —  *and its future in a lower-carbon economy*. 110+ countries have pledged carbon neutrality by 2050. CA, Japan, and the UK said they'll start banning sales of new gas cars in the 2030s.

- __[Shell](https://robinhood.com/stocks/RDS.A) took an L, too:__ Yesterday, a Dutch court [ordered](https://www.wsj.com/articles/shell-ordered-by-dutch-court-to-cut-carbon-emissions-11622038961?mod=business_lead_pos1) the oil giant to cut its carbon emissions, an unprecedented ruling that could set a precedent in other European countries. 
- __[Chevron](https://robinhood.com/stocks/CVX)__ investors just [voted](https://www.reuters.com/business/energy/chevron-shareholders-approve-proposal-cut-customer-emissions-2021-05-26/) in favor of a proposal to cut emissions, rebuking the C-Suite. 


Vote

__Tackle climate change or *be* changed...__ Oil giants are facing heightened pressure from governments and investors to reduce emissions and embrace renewable energy. __[BlackRock](https://robinhood.com/stocks/BLK)__, one of Exxon's largest investors, signed a pledge supporting net zero carbon emissions by 2050 or sooner. That pressure from investors and governments has real consequences, as we saw this week. Now, change-resistant companies like Exxon might be *forced* to change.  

Forced to go green(ish): Exxon and Shell may have to radically rethink their biz models

__*"I-I-I'm in the stars tonight"...*__ __[McDonald's](https://robinhood.com/stocks/MCD)__ has been seeing stars (and $$$ signs) thanks to its Famous Orders program, which launched last year. Fried chicken sandwiches weren't the only stars of McD's  quarter: meal partnerships with Travis Scott and J. Balvin boosted digital sales. In McD's own words: "nothing had a greater impact on our digital business than the introduction of Famous Orders." Last quarter, McD's sales even beat *pre*-pandemic levels. 

- __"The BTS Meal"...__ Yesterday, McD's [released](https://www.cnn.com/2021/05/26/business/bts-meal-mcdonalds-merchandise/index.html) its long-awaited meal with K-pop sensation BTS. It's the first celeb collab to launch globally. 
- __Unbox it:__ 10-piece Chicken McNuggets, medium fries, a Coke, and two Korean-style dipping sauces (sweet chili and Cajun). Missed opp to call them "Dynamite Nuggets."

__So much more than nuggies...__ This BTS deal is more than a meal — *it's a global event*. People are obsessed with BTS, and McDonald's is milking it. Fast food chains operate on razor-slim profit margins, so promotions like these can be game-changers:

- __Merch:__ McD's is dropping a limited-edition BTS merch line (including: a fuzzy purple robe with a fries logo). J. Balvin and T. Scott also got merch.
- __Exclusive content:__ McD's is releasing "never-before-seen digital surprises" featuring BTS in the McD's app to drive digital sales. 
- __Spots:__ McDonald's TV ad — which debuted last night —  uses BTS' newest hit, "Butter." *So smooth*. 

_Apparently,  BTS makes fries taste better [Bonfanti Diego/Cultura via GettyImages]_

Dynamite

__It’s the “Golden Repackage” strategy...__ McD's just proved that you don’t need a new product to gain new customers. The best thing about the BTS meal: it's composed of basic items that McD’s is *already* making. Just ship franchisees the dipping sauces, and voila: BTS Meal. Famous Orders drive sales *without* adding new ingredients or workflows. McD's calls it: "maximizing digital investments without adding any restaurant complexity." This repackaging strategy drives customers to the app and keeps them there, boosting loyalty and sales.


McDonald’s mega-partnership with BTS: it’s the “Golden Repackage” strategy

🍟 McD + BTS = Dynamite

__Can't sprinkle it on an acai bowl...__ But the name says it all: __Chia__ promotes itself as an eco-friendly crypto coin. The digital currency platform has more than [doubled](https://www.google.com/url?q=https://fortune.com/2021/05/25/chia-network-green-blockchain-valuation-ipo/?utm_source%3Demail%26utm_medium%3Dnewsletter%26utm_campaign%3Dterm-sheet%26utm_content%3D2021052514pm%26tpcc%3Dnltermsheet&sa=D&source=editors&ust=1622003041673000&usg=AOvVaw1mmQrBu-7W371oaevSDny4) its valuation, after raising a fresh $61M in funding. It's now reportedly valued at ~$500M, and could go public as soon as this year, even though Chia just started trading this month. The new cash infusion is likely not a coincidence.

__The Prius to Bitcoin's Hummer?...__ What Chia wants investors to see. There's suddenly a lot of attention being paid to Bitcoin's enviro impact (which we [wrote](https://snacks.robinhood.com/newsletters/18QR0SyWNU2shCThYbl30f/articles/35CXk15pizW3Ju68UBK6WO/) about in April). It started in mid-May, when Elon [tweeted](https://snacks.robinhood.com/newsletters/4xclkSJaYAU12PaicjZrLh/articles/4OCWE9kGhme60DCcKsfIUl/) that __Tesla__ will no longer accept Bitcoin payment for cars. Elon is concerned about BTC's fuel-burning ways, so Tesla will only accept/buy/sell Bitcoin when “mining transitions to more sustainable energy.” Cue: crypto prices [plunged](https://snacks.robinhood.com/newsletters/4xclkSJaYAU12PaicjZrLh/articles/4OCWE9kGhme60DCcKsfIUl/). 

- __Bitcoin__ operations require much more electricity than other cryptos, which can result in more emissions. Tesla said it's looking at other cryptos that use <1% of Bitcoin’s energy. Then again, Elon just [spoke](https://twitter.com/elonmusk/status/1396914548167233537?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1396914548167233537%7Ctwgr%5E%7Ctwcon%5Es1_&ref_url=https%3A%2F%2Fwww.cnbc.com%2F2021%2F05%2F24%2Fbitcoin-price-soars-after-elon-musk-tweet-on-sustainability-efforts.html) to "North American Bitcoin miners" re: sustainability.
- __Chia__ says its operations are less energy-intensive than traditional mining. Instead of relying on special energy-sucking computers, Chia's network uses available storage space on your hard drive to "farm" coins by validating transactions on its network.


_Chia farm life [funky-data/E+ via GettyImages]_

Crypto

__Chia may have a “but-what-about” problem...__ EVs are greener than gas cars, but what about the electricity needed to power them? Electricity is mostly generated by burning fossil fuels (like: gas). For Chia, it's "what about hard drives?" Some are [concerned](https://cointelegraph.com/news/chia-raises-61m-for-eco-friendly-crypto-despite-critics) that Chia farming could burn out a drive in weeks, while drives subjected to normal usage can last over a decade. That could produce a ton of e-waste, and also [lead to](https://fortune.com/2021/05/20/chia-coin-green-cryptocurrency-hard-drives-western-digital-stock/)) a drive shortage. Solving one problem could cause others, and there's still plenty we don't know in the race to become a more energy efficient crypto.


Chia, the "green" alternative to Bitcoin,  just doubled its valuation and could IPO soon

__All the news that's fit to...__ punt? __The New York Times__ is looking into buying The Athletic, [according](https://www.axios.com/new-york-times-nytimes-acquisition-athletic-7f1dabf4-9315-4975-93f9-68e13c642a43.html) to Axios. 

- __The Athletic:__ The subscription-based sports news site is valued at ~$500M, and reportedly has 1.2M subscribers — but it's still not profitable.
- __NYT__ has a $7B market cap and 8M paying subscribers. It's profitable, and the stock has nearly 4X'd in the past five years. That's likely because... 

__Skipped the paper...__ The New York Times is no longer a newspaper — *it's a multi-multi-media company*. As Google and Facebook ate up newspapers' ad revenue, NYT pivoted. It took its core stories and turned them into documentaries, TV shows, and podcasts like *The Daily*. It acquired an app that turns articles into audio. And it leaned into digital subscriptions, which brought in more revenue than print for the first time last year. 

- __Subscribe or die:__ NYT sells subscriptions for its news, games, cooking, and audio products. ~7M of its 8M paying subscribers have digital subs.
- __The Athletic__ and its 1M+ subscribers could be a boon to NYT's subscription offering — especially if it ever decides to bundle them.

Read

__Cast a wide net, catch a wide audience...__ *continue to grow*. NYT is a 170-year-old company that you would've *only* turned to for news 20 years ago. Now, nearly [half](https://www.axios.com/new-york-times-subscription-gains-non-news-products-0690d5ea-9d7f-4225-97ce-9822200da996.html) of NYT's new digital subscribers came from *non*-core news products last quarter. Think: subs for cooking fans, gamers, and audio buffs (aka: pod-heads). The Athletic could broaden NYT's net even further to catch dedicated sports fans. While its core news audience may be saturated, these extracurriculars have room to grow. 


The New York Times is reportedly eyeing The Athletic (to broaden its net)

💵 Chia's "green" crypto fundraise

__*Welcome to the Hotel Starry-fornia*...__ such a lovely space. __[Virgin Galactic](https://robinhood.com/stocks/SPCE)__ stock soared 28% yesterday, following the space tourism company's successful spaceflight test over the weekend. ICYMI: Virgin's trying to [vacation-ify](https://snacks.robinhood.com/newsletters/1r9xFjfsAFNRg58wQ4L06m/articles/6nxi97j9OUO3HLvof2LvA1/) space travel. Think: restaurant bookings on the International Space Station (we're thinking spaghetti Apollo-gnese). 

- __Milestone #1:__ The launch was the first of four remaining spaceflight tests before Virgin starts flying commercial customers — aka: space tourists. 
- __Milestone #2:__ New Mexico became the third US state to launch humans into space. Virgin owner Richard Branson [shared](https://news.satnews.com/2021/05/23/virgin-galactics-first-human-spaceflight-from-spaceport-america-new-mexico/) the love with NM.

__One small step for man...__ One giant leap for Virgin's "Future Astronauts," as it  [calls](https://www.virgingalactic.com/learn/) prospective customers. The flight  was a critical step for Virgin's space tourism program, which aims to launch early next year. Virgin's mission is to become the "Spaceline for Earth." It *hates* that only 600 humans have left Earth’s atmosphere, and wants to "open space to everybody." But Richard Branson has some intergalactic competition from *other* famous billionaire entrepreneurs (it's a theme with space companies)....

- __[SpaceX](https://robinhood.com/stocks/SPCE):__ Last year, Elon Musk's rocket company [sent](https://snacks.robinhood.com/newsletters/1r9xFjfsAFNRg58wQ4L06m/articles/6nxi97j9OUO3HLvof2LvA1/) NASA astronauts into orbit with a private spacecraft for the first time. In April, SpaceX won a $2.9B NASA contract to build a lunar landing system, beating Blue Origin.
- __Blue Origin:__ This week, a bid to be the first passenger with Jeff Bezos' spacecraft company [hit](https://www.washingtonexaminer.com/news/bidding-nears-3-million-for-bezos-founded-space-firm-first-flight) a whopping $2.8M. The 11-minute crewed flight is set to launch on July 20.


_Space Tourism: where no one can beat your vacay Insta post [peepo/E+ via GettyImages]_

Launch

__The space tourism race is on...__ And there may *not* be plenty of room at Hotel Starry-fornia. NASA is leaning on private companies to help it commercialize space. But when it comes to space travel, the fastest out the gate (read: out of Earth's atmosphere), may have the biggest advantage. Space tourism could be a major market one day — and the companies breaking in early could gain a longer-term advantage. 


Virgin Galactic completes its first-ever human spaceflight: space tourism is near

__Exactly one year ago...__ George Floyd was murdered, leading to protests for racial justice across the US —  and a nation-wide reckoning over race and policing. For corporate America, silence was [no longer](https://snacks.robinhood.com/newsletters/7gqswmVojTVAwxoi4AyfDv/articles/69m6uDAmNzTcLDko3aNntx/) an option. From __[Apple](https://robinhood.com/stocks/AAPL)__'s Tim Cook to __[Goldman](https://robinhood.com/stocks/GS)__'s David Solomon, CEOs spoke about the need to better address racial disparities, both in society and in their own companies. Mentions of “systemic racism” at company events [spiked](https://www.ft.com/content/67e79b20-bc41-4cb0-992f-a28e3eaa5695) to 300+ last quarter, up from nearly zero the year before. Now, we're looking at what companies have actually done.

__Pledge vs. reality...__ Since Floyd’s death, American companies have pledged $50B to racial equity initiatives — __[Chase](https://robinhood.com/stocks/JPM)__ alone [pledged](https://snacks.robinhood.com/newsletters/6CYbtZgaeQFf8W6pRxaYg0/articles/5APdARhy7BYjqPv9X5dWHs/) $30B. Update: only ~$250M has so far been spent or committed to specific initiatives, according to Creative Investment Research. Pledges included donations to civil rights orgs, investments in communities of color, and internal diversity initiatives.

- __Goldman__ started sharing detailed demographic data in January, revealing that just 49 of its 1.5K senior execs and managers are Black. Black Americans hold only 3% of senior roles in companies with 100+ employees.
- __[Lyft](https://robinhood.com/stocks/LYFT), [Levi's](https://robinhood.com/stocks/LEVI), and [Verizon](https://robinhood.com/stocks/VZ)__ conducted pay equity audits, saying they found no systemic pay differences between ethnicities. Only 31 of the 100 largest US companies are analyzing how equitably they pay employees of different races and ethnicities.
- __[Chase]([https://robinhood.com/stocks/PTON](https://robinhood.com/stocks/JPM))__ and other major banks will [reportedly](https://snacks.robinhood.com/newsletters/4C8RPXufy6QttN9RCr8VDz/articles/4SFa7U4G3EmK6YjL3groXb/) give credit cards to people with no credit score, as part of a gov-backed initiative to increase credit access to underserved communities. The plan was launched after Floyd's death.
- __[Peloton](https://robinhood.com/stocks/PTON)__ recently [announced](https://www.instagram.com/p/CNsNu90g78U/?igshid=1w7j5lghvtaz9) its portfolio of partners for its four-year, $100M investment pledge to fight racial injustice.


Year

__There's still much more to be done...__ One year in, corporate pledges are still mostly in progress — or haven't even begun. We can expect companies to update us on their commitments throughout the year. For example: __Amazon__ pledged to double the number of Black leaders at the company to ~8% by the end of 2021. But it’s not just one-time commitments that will make a difference. Addressing systemic injustice requires sustained efforts. And corporations will likely be held increasingly accountable.


One year later: how companies have acted on $50B worth of racial equity pledges 

🚀 Virgin has liftoff

__From NYC to Beijing...__ Big Tech earnings season is (almost) over. This month, Wall Street's "Big Tech 5" –  __[Apple](https://robinhood.com/stocks/AAPL)__, __[Amazon](https://robinhood.com/stocks/AMZN)__, __[Google](https://robinhood.com/stocks/GOOG)__, __[Microsoft](https://robinhood.com/stocks/MSFT)__, and __[Facebook](https://robinhood.com/stocks/FB)__ –  [demolished](https://snacks.robinhood.com/newsletters/4yfojyZE9WLvdIySo7B6GF/articles/5HHwtkiQ6PZUclm1Kohn61/) results with back-to-back records. Still, the techy Nasdaq index is up just 6% this year — half of the S&P 500 and the Dow's gains. Now, we're looking at China, to see how the world’s other tech epicenter stacked up:

- __[Alibaba](https://robinhood.com/stocks/BABA)__ (aka: the Amazon of China) posted its first loss *ever* as a public company, though sales soared 64%. Blame a record fine by China’s regulator. Shares are down 7% this year.
- __[Tencent](https://robinhood.com/stocks/TCEHY)__ is the world's largest video games publisher, and the owner of WeChat (the app for [everything](https://qpsoftware.net/blog/all-wechat-features-2020)). Despite impressive earnings growth, shares have barely budged this year. 
- __[Pinduoduo](https://robinhood.com/stocks/PDD)__ is the ecomm app that connects farmers/distributors with Chinese consumers. We'll see how it fared when it reports tomorrow. Shares have plunged 22% this year. 

__*You've been warned*...__ For years, Chinese tech titans were seen as untouchable sources of national pride. This year, China has been cracking down. China ordered 34 of the country's largest tech cos, including TikTok-owner __ByteDance__, to comply with anti-monopoly laws or face “severe punishment." The scrutiny is hitting companies where it hurts: their share prices and balance sheets. 

- __Alibaba__ was fined $2.8B, while Pinduoduo, ride service __Didi Chuxing__, and others were each fined $200K for “improper pricing behavior.”
- __Fintech giant Ant Group__ will likely be overseen by China’s central bank, after regulators [halted](https://snacks.robinhood.com/newsletters/2aUdFDcS8HbDWWvTUoLlRp/articles/7hzAn3zqutap8eurhdXv40/) its mega IPO. Oh, and China wants companies to know that crypto services are still [banned](https://www.bbc.com/news/business-57169726). 


Down

__China is a window...__ Despite strong earnings, tech stocks are on the struggle bus. While Chinese and US regulation are *very* different, China's crackdown begs the question of how intervention might change in the US —  where it’s been much more light-handed. Antitrust scrutiny is rising, and President Biden’s FTC pick Lina Khan is a well-known tech [critic](https://snacks.robinhood.com/newsletters/2Z4BofvGDzgoroXZ4OTaiL/articles/75lgUHK9VCoHmFBsxK4D6C/). While US regulation isn’t likely to look like China’s, more intervention doesn’t seem far-fetched.


Tech earnings are wrapping up for the US and China — but problems aren't over for tech cos

__Treasure hunt vibes...__ Retailers' sales rebounded last quarter, as you attended your first get-together *without* a virtual background (bye, clouds). __[TJ Maxx](https://robinhood.com/stocks/TJX)__ and __[Ross](https://robinhood.com/stocks/ROST)__ sales soared past pre-pandemic levels on the "affordable splurge." __[Target](https://robinhood.com/stocks/TGT)__ shined as you caved for the floral dresses in the front. __[Macy's](https://robinhood.com/stocks/M)__ sales jumped 56% from last year, and __[Kohl's](https://robinhood.com/stocks/KSS)__ crushed expectations. TBD if pent-up demand will continue as stimulus benefits run out. Macy's CEO thinks it isn't a fluke.

__Tim Cook-ing in the kitchen...__ and it's getting heated. __[Apple](https://robinhood.com/stocks/AAPL)__ CEO Tim Cook was grilled on Friday as the Epic-Apple trial wrapped up. Cook's testimony was highly anticipated — but [anticlimactic](https://techcrunch.com/2021/05/21/tim-cook-plays-innocent-in-epic-v-apples-culminating-testimony/). If Fortnite-maker __Epic__ wins the suit, Apple could be forced to give up control of app distribution. Read: customers could be allowed to freely install software on iPhones (not just through the App Store). It could be a [make-or-break](https://snacks.robinhood.com/newsletters/5mrz8IgUB1Bjuc9ILsHQOj/articles/4GARoezVkzR6VmTXvlwEa1/) moment for Apple's antitrust future.


__Anniversary of George Floyd's death...__ Tuesday marks the one-year anniversary of George Floyd's murder, which led to months of protests for racial justice across the US. Since then, American companies have pledged to spend $50B on racial equity initiatives. Yet only [~$250M](https://www.ft.com/content/67e79b20-bc41-4cb0-992f-a28e3eaa5695) has so far been spent or committed to specific initiatives, according to Creative Investment Research. Stay tuned for more coverage on whether companies have lived up to their pledges. 

__Buying the lip...__ __[Ulta](https://robinhood.com/stocks/ULTA)__, aka: Sephora's less flashy rival, reports earnings on Thursday. If Ulta's quarter was anything like __[Estée Lauder](https://robinhood.com/stocks/EL)__'s, we can expect that skincare sales [thrived](https://snacks.robinhood.com/newsletters/5mrz8IgUB1Bjuc9ILsHQOj/articles/4nwSv0BGXlf0C4iUX8PR4C/), while makeup struggled (eye serum = new eyeshadow). But __[Walmart](https://robinhood.com/stocks/WMT)__ saw more sales of beauty products and teeth whitener last quarter. Since the CDC lifted mask mandates for fully vaxed peeps (FVPs), beauty companies are preparing for a "buy the lip" situation. Matte is already [rallying](https://www.businessinsider.com/lipstick-sales-increase-expected-after-cdc-lifts-mask-mandate-2021-5). 


- __[F-150 Lightning](https://snacks.robinhood.com/newsletters/1N31BqWqFLT91MgZLUXNEq/articles/1l4IxVAMdm6rt4WUz7BL1b/):__ __[Ford](https://robinhood.com/stocks/F)__ unveiled an electric version of the most successful car in American history (and President Biden took a joyride).
- __[Daenerys](https://snacks.robinhood.com/newsletters/6VJuUvnCuWaf7dDbGJi9xR/articles/5e1LVdk7m9ydgNb5z1uBbf/):__ __[AT&T's](https://robinhood.com/stocks/T)__ big experiment in entertainment is over — it's breaking up with WarnerMedia (and GOT).
- __[Crypto](https://snacks.robinhood.com/newsletters/2i8nwaSyl2Kc0M8lzycHlU/articles/78Ghj5v2Fg1jUW5XO8wCIb/):__ __[Bitcoin](https://robinhood.com/crypto/BTC)__ and other cryptocurrencies plunged last week — and it's related to Elon, China, and kitchen furniture.

_Weekend mood: treasure hunting at Ross [Mordolff/E+ via GettyImages]_

🇨🇳 Big Tech: a tale of two internets

__No more FICO scores on Hinge...__ even 800s. __[JPM Chase](https://robinhood.com/stocks/JPM)__, __[Wells Fargo](https://robinhood.com/stocks/WFC)__, and other banks are taking the “history” out of credit history. When reviewing credit card applications, banks will consider *deposit* account info for people with no credit, [according](https://www.wsj.com/articles/jpmorgan-others-plan-to-issue-credit-cards-to-people-with-no-credit-scores-11620898206?mod=hp_lead_pos3) to WSJ's #PFWTM — *and share that info with each other*. Think: $$$ in checking and savings accounts, and overdraft history. It's part of a gov-backed initiative to extend credit to underserved people. The pilot, aimed at financially responsible people without credit scores, could launch this year. 

- __To build credit,__ you need to borrow. Think: credit card spending, car or student loans, or a mortgage. To build *good* credit and avoid interest, you need to pay IOUs on time. 
- __The "chicken or the egg"__ of the banking world: When you've never had a credit card, and need a credit score to get a credit card with your bank (womp). 

__Give the people credit...__ 53M adults in the US don’t have credit scores — many only pay with cash/debit, or  are new to the US. If this program launches, Chase could check your Wells Fargo checkings when reviewing your *Chase* card app. That means millions more Americans could get access to credit — and it could be a boon for banks and credit card companies.

- __Banks make $$$ from merchants__ each time you swipe. That "[Swipe Tax](https://snacks.robinhood.com/newsletters/23rAZNGewLgeWZFmLjk94T/articles/6vidwtG5Jrrkpq1vsrsRcB/)" is why purchase minimums exist (the bodega doesn't want plastic for a $2 muffin).
- __Banks also earn interest__ on overdue balances. But thanks to stimulus checks and #lockdownlife, Americans have reduced their credit card debt (big time): balances are now $157B [lower](https://www.newyorkfed.org/newsevents/news/research/2021/20210512) than pre-pandemic. 


Swipe

__Credit = opportunity...__ Good credit can help people take out cheaper loans like mortgages. Homeownership has been one of the greatest contributors to wealth creation for families. But mortgages are hard to get without a credit score. In 2015, Black and Hispanic adults in the US were more likely than white or Asian adults to lack credit scores — and they're still more likely to be denied mortgages.  Increasing credit access to historically disadvantaged communities is key to narrowing the [racial wealth gap](https://snacks.robinhood.com/newsletters/bg6FaCgu8qc8z1Zllmofx/articles/3ZVsKmCRQNLUOSaAVHfNJi/).


Chase and other major banks will reportedly give credit cards to people with no credit scores

__Starbucks is out of oat milk...__ What else is new? Oat milk icon __[Oatly](https://robinhood.com/stocks/OTLY)__ raised $1.4B in its IPO on Wednesday, snagging a frothy $10B valuation — more than __[Beyond Meat](https://robinhood.com/stocks/BYND)__'s market cap. Yesterday, Oatly shares soared 19% during their first day on the Nasdaq. The IPOat [eased](https://www.reuters.com/business/oatly-procore-debuts-calm-us-ipo-jitters-2021-05-20/) investors' concerns about IPOs, which have been [underwhelming](https://snacks.robinhood.com/newsletters/3o33BaDrVUn7Qvhf5sZumz/articles/f4BjysDmhW5MRxiVgZX7x/) recently. A few things investors were sweet on...

- __Sales:__ Sales of Oatly's sustainable milk ~2X'd in 2020 from 2019 .
-  __Starbs:__ In March, Oatly [won](https://snacks.robinhood.com/newsletters/3J3tNJcBtoyAbAt64x7tUV/articles/3We9DJQD38acMPoUoV1AQq/) the milk lottery: a nationwide rollout at __Starbucks__.
- __Stars:__ The Swedish company is backed by celebs like Oprah, Natalie Portman, and Jay-Z.

__My oat milk brings all the boys...__ to the Starbs. Oat milk is a barista staple today, but for decades after Oatly was born in 1994, it was pretty obscure. Wild stat: the founder of Oatly [literally](https://www.cnbc.com/2021/05/20/oatly-ipo-how-the-swedish-oat-milk-became-popular-in-us.html) invented oat milk. In 2017, Oatly expanded to the US and launched a major rebrand. That hip, spunky branding has been key to its growth. Oatly's marketing strategy =  *anti*-marketing (see: [these](https://medium.com/the-mission/oatlymarketingadcampaign-eeae9250c018) murals, these [cartons](https://thechallengerproject.com/blog/2017/ctw/oatly), and this Super Bowl [ad](https://www.youtube.com/watch?v=_HQU0MB0D5A)). And it's provocative...


__Provocative marketing comes with risks...__ Oatly highlighted its "provocative and unconventional marketing" as a business *risk*, which could expose it to more scrutiny from food regulators and lawsuits from dairy lobbyists. Oatly's slogan: "It's like milk, but made for humans." But for Oatly, the branding strategy has also come with big rewards. Oat milk is oat milk, but people seek out Oatly specifically, thanks to its "cool brand" factor. That's likely why Starbs chose to feature Oatly, too. 

Oatly, the spunky company that invented oat milk, raises $1.4B in its IPO

_Give the people credit cards...and Oatly? [pixelfit/E+ via GettyImages]_

💳  Give the people credit 

__A Shiba with a bone to pick...__  ICYMI, cryptocurrency prices have been plummeting. A week ago, __[Bitcoin](https://robinhood.com/crypto/BTC)__ was trading around $57K, down from its record of $63K in mid-April. At one point yesterday, Bitcoin plunged to  ~$30K. Meanwhile, __[Ethereum](https://robinhood.com/crypto/ETH)__, __[Doge](https://robinhood.com/crypto/DOGE)__, and __[Litecoin](https://robinhood.com/crypto/LTC)__ all dropped more than 40%, before recovering (some) losses. 

- __Nearly $1T has been wiped off__ total crypto market value since last week, when it was over $2T. 
- __Shares of crypto-invested companies__ like __[Coinbase](https://robinhood.com/stocks/COIN)__, __[Square](https://robinhood.com/stocks/SQ)__, and __[MicroStrategy](https://robinhood.com/stocks/MSTR)__ — an analytics company that invests in Bitcoin — also dipped.

__Decrypted...__ [More](https://www.gemini.com/state-of-us-crypto) than half of crypto investors say they’re buying for the long-term. Still, crypto prices are infamously volatile compared to other assets. The current annualized historical volatility for the S&P 500 index is about 15% — for Bitcoin, it's *80%*. Historical volatility = how much an asset price deviates (on average) from the average price over a time period. What may have caused this latest plunge:

- __Elon:__ BTC fell last week after Elon tweeted that __[Tesla](https://robinhood.com/stocks/TSLA)__ would no longer accept it. This week, it fell *again* after Elon's reply in a thread ("Indeed") led to  speculation that Tesla had sold Bitcoin. It hadn’t.  
- __China:__ On Tuesday, China reiterated its ban on offering cryptocurrency services, saying crypto is dangerous to the financial order.


_Home improvement, feat. crypto stools [Morsa Images/E+ via GettyImages]_

__The three-legged stool of crypto cracked...__ Cryptocurrencies sit upon a three-legged stool. The first leg: public enthusiasm (culturally-driven momentum). The second: corporate validation (like company investments, or crypto payments support). The third: government regulation — or its lack thereof, a key element of crypto. Last week, Elon cracked the corporate validation leg. This week, China cracked the regulation leg. That doesn't mean the crypto stool is broken. But when any of the legs show cracks, prices tend to wobble.


Bitcoin’s big plunge: how it relates to Elon, China, and kitchen furniture

__Still retiling the bathroom...__ When lockdowns hit last March, Americans shifted their spending from restaurants and clothes to the only place that mattered: home. People re-painted kitchens, and bought enough scented candles to light a small town. We [thought](https://snacks.robinhood.com/newsletters/7Fl0kcKPHzNEVEVwnee0Zp/articles/3djXYQJYytx1qKMDTR9yG1/) the DIY House Hype might start slowing down *last May*. A year later, the House Hype is going stronger than ever. 

- __Wild:__ __[Home Depot](https://robinhood.com/stocks/HD)__'s sales soared 33% last quarter to $37.5B. For reference: Home Depot's quarterly sales growth for the same quarter in 2019 and 2018 was ~5%. Oh, and profit nearly doubled. 
-  __[Lowe's](https://robinhood.com/stocks/LOW)__ sales jumped 24% on the continued home improvement hype. 

__"I was lightning, before the lumber"...__ If Imagine Dragons wrote a home improvement song. Home Depot says there's a "storm environment" for lumber right now. That's partly thanks to the housing market boom and a reopening-driven building frenzy. Zillow-scrolling just got pricier...

- __Wild stat:__ Lumber prices have more than 4X'd in the past year. The surge has added [$36K](https://www.cnbc.com/2021/04/30/soaring-lumber-prices-add-36000-to-the-cost-of-a-new-home.html) to the price of an average new single-family home. 
- __Soaring lumber demand__ boosted Home Depot's sales, both to professionals (think: contractors) and DIY customers (think: Uncle Bobby).

__"Homevesting" has arrived...__ The initial House Hype was driven by spending to make our 24/7 biodomes more enjoyable. You had to stare at the bedroom wall all day, so you painted it pastel blue. As the US reopens, we're seeing a different kind of spending: "Homevesting." Home sales are hitting 15-year highs, so prices are soaring. Now, people are investing to level-up their precious homevestments. Home Depot's CEO thinks that's a great sign for the home improvement industry looking ahead. 


The House Hype lives on: Home Depot's killer earnings reveal something else, too

🌀 Crypto's chaotic week 

__Cybertruck is shaking...__ Yesterday, President Biden visited __[Ford](https://robinhood.com/stocks/F)__'s Dearborn, Michigan plant to check out a shiny new toy: the all-electric F-150 Lightning pickup. Tonight, Ford will publicly reveal deets about the highly-anticipated EV. [Spoiler](https://www.detroitnews.com/story/business/autos/2021/05/18/biden-tour-ford-plant-dearborn-electric-vehicle-priorities/5133176001/) from Biden, who took it for a spin: "This sucker’s quick."  But there was more to Biden’s agenda than a joy ride...

- __Clean energy future:__ Biden pitched his $174B EV plan, part of his $2.3T [proposal](https://snacks.robinhood.com/newsletters/5LFeKLcW6vcwl0ortNgrtm/articles/4n7AMG2fFNs2TmR0EXgTgO/) to give US infrastructure a green makeover.
- __Chip-independence:__ Biden also advocated to move more chip production to the US, as the auto industry struggles with a shortage. 

__The Madonna of metal...__ Ford's F-150 (*non*-electric) has been the best-selling vehicle in the US for *39 years straigh*t. Ford sold nearly 800K F-Series vehicles last year, because America loves a good pickup...

- __Pickup trucks accounted for *half*__ of the auto industry’s top 10 best-selling vehicles last year. 
- __The three best-selling vehicles were *all* pickups__, and made up [13%](https://www.cnbc.com/2021/01/08/pickup-trucks-dominate-americas-10-best-selling-vehicles-of-2020.html) of all cars sold in the US last year. GM's Chevy Silverado was #2, and Chrysler's Ram was #3. 
- __Wild stat:__ Ford's annual sales from F-150s are more than Tesla's *total* yearly sales of all its models. 


Pickup

__This could be the first "EV ambassador"...__ Tesla gets a lot of hype, but it's not an "ambassador" for democratizing EVs across the US. CA accounts for 35% of Tesla's sales. Meanwhile, F-150 sales are strongest in red states, with Texas being its No. 1 market. Winning over F-150 owners means winning over America’s heartland — *and electrifying it*. That's exactly what Biden's trying to do. If F-150 owners like Lightning, it could be a turning point for EV adoption. 

Ford gives Biden a peek at the most successful car in American history (EV-style)

__When Bezos buys a lion...__ it comes with a whole movie studio. __[Amazon](https://robinhood.com/stocks/AMZN)__ is [reportedly](https://variety.com/2021/digital/news/amazon-mgm-acquisition-talks-9-billion-1234975168/?stream=top) in negotiations to purchase __MGM__ for $9B. This would be the 'Zon's biggest move yet into entertainment. Amazon has made big investments in Prime Video, which attracted 175M viewers over the past year. But Netflix still gets most of Hollywood's spotlight. With this acquisition...

- __Content:__ MGM has a major library. Think: 4K movie titles, from *James Bond* to *Rocky*.  It also has 17K TV episodes — from *The Handmaid's Tale* to *Real Housewives*.
- __Swagger:__ MGM is old Hollywood. Its historic name and titles would bring prestige to "newbie" Prime Video. 

__Coming to America...__ and the red carpet. Streamers are investing to become more Hollywood, less Chrome tab. In 2020, the 'Zon spent $11B on shows, movies, and music for Prime, up 40% from 2019. __[Netflix](https://robinhood.com/stocks/NFLX)__ spent more than *$17B* on content last year, mostly on originals. But it's deeper than content splurges...

- __Theaters:__ Netflix bought iconic theaters in Hollywood and NYC to premiere its Oscar-worthy films, like *Roma*. Last May, there were [rumors](https://snacks.robinhood.com/newsletters/3E2MYqmOkTAKbBTKPPKQw7/articles/4IOYTvbMXdjgzwwFYRqYdL/) that Amazon wanted to buy AMC. 
- __Awards:__ Netflix snagged 36 Oscar noms this year, the most of any studio. __[Disney](https://robinhood.com/stocks/DIS)__ won five, Amazon won two, and *Nomadland* — which premiered on Hulu — got Best Picture.


Action

__Streamers are becoming studios...__ In 2017, Netflix and Amazon [became](https://www.hollywoodreporter.com/news/general-news/amazon-netflix-score-first-streaming-service-oscar-wins-2017-salesman-white-helmets-980725/) the first streamers to ever win Oscars (and there was [pushback](https://variety.com/2019/film/awards/steven-spielberg-oscars-netflix-1203155528/)). Now, streamers are getting dozens of Oscar noms and spending billions on big originals. Meanwhile, studios are leaning into streaming. Think: Universal's Peacock, Warner's HBO Max, and Viacom's Paramount+ — plus, more direct-to-streaming releases. 


When streamers become studios: Amazon is reportedly in talks to buy MGM for $9B 

_Pickup Party in the USA [Leo Patrizi/E+ via GettyImages]_

🚘 Elon's Cybertruck has competition

__*90 Day Fiancé* meets GOT...__  __[AT&T](https://robinhood.com/stocks/T)__ is ditching the entertainment biz, leaving its media assets to fend for themselves. The telecom giant [reached](https://www.wsj.com/articles/at-t-to-combine-warnermedia-division-with-discovery-11621250928) a deal with __[Discovery](https://robinhood.com/stocks/DISCA)__ to combine their media assets into a new, publicly-traded company (name TBD). Meet the cast...

- __AT&T:__ Famous for its phone plans, but also for buying __WarnerMedia__ for $81B in 2018. That gave it CNN, HBO, TBS, and Warner Bros. In 2015, it snagged DirecTV. 
- __Discovery:__ Famous for reality shows like *Shark Week*, *Extreme Makeover*, and *90 Day Fiancé*. Its networks: Food Network, Animal Planet, HGTV, and... Discovery Channel. 

__Do you think you're better off alone?...__ If the deal is approved, AT&T will get $43B — around half of what it paid for Warner (womp). AT&T's media biz has [struggled](https://snacks.robinhood.com/newsletters/3VYgq4XRGydXCiWCpJd3rW/articles/5XPdRwH7GPf2fZGiyykxV5/) thanks to cord-cutting, streaming, and pandemic movie theater closures. In February, it sold a large stake in its DirecTV business. The Warner spin-off marks the end of AT&T's big bet on entertainment — which ended up costing it $93B. Some big plot points:

- __71%:__ AT&T shareholders' stake in the new company. Discovery shareholders get the rest.
- __$20B:__ How much AT&T and Discovery spend on content combined (more than Netflix). 
- __Two__ streaming services: HBO Max and Discovery+. TBD if they'll merge.

Finale

__Losing focus can be dangerous...__ especially in quickly-changing industries. AT&T lost more than money — it lost focus on wireless, which is going through a 5G revolution. Instead of just competing against __Verizon__ and __T-Mobile__, AT&T was *also* competing against __Netflix__ and __Disney__. Now, it'll need to spend tens of billions to match broadband/wireless investments made by Verizon and T-Mobile to upgrade their networks. This sale would help it do that, but it has already fallen behind. 


AT&T’s big experiment in entertainment is over (it's breaking up with Daenerys)

__Still haven't finished the Amazon 100-pack...__ While you were collecting crumpled-up masks from your car and purse, the CDC dropped a big one. On Thursday, America's public health agency [said](https://www.cnn.com/2021/05/13/health/cdc-mask-guidance-vaccinated/index.html) people who are fully Covid-vaccinated *don't* need to wear masks indoors or outdoors (except in certain cases). Fully-vaxed peeps (FVPs) also don't need to social distance. Companies moved quickly:

- __Unmasked:__ __Target__, __Starbucks__, __Chipotle__, __CVS__, __Walmart__, __Costco__, and TJ’s are allowing mask-free shopping for FVPs.
- __Half-masked:__ __Disney__ Orlando is letting FVPs roam mask-free in outdoor common areas (but not while waiting for Space Mountain — or riding it).
- __Full-masked:__ __Home Depot__, __Gap__, __Kroger__, and __Ulta__ are among those maintaining their mask precautions for now. 

__Mask on, mask off?...__ The answer may be as confusing as LA street parking signs. Plus, state and local laws take precedence over company policies (eg: FVPs can unmask in Starbs Miami, but not in LA). The new guidelines could encourage more Americans to get vaxed. But many stores aren't verifying vax status. That "honor code" comes with risks — especially to immunocompromised people. For companies...

- __Foot traffic:__ The guidelines could increase capacity and help bring customers back — *or* scare some away. Think: bar seating and regularly-spaced tables. 
- __Employees:__ The option to go mask-free during a long shift could help lure workers back (ICYMI, there's a [labor shortage](https://snacks.robinhood.com/newsletters/3o33BaDrVUn7Qvhf5sZumz/articles/2rjYa4D3zFcw5Zgdm33xCE/)). But some companies are still requiring *employees* to wear masks, while customers can go mask-free.


_Trying to understand new mask guidelines like [mediaphots/E+ via GettyImages]_

Unmask

__Companies can act like mini-governments...__ The hierarchy of health mandates has three layers: nation-wide (CDC), state and local (22 states still have mask mandates), and corporate. While government rules take precedence, companies can shape policies of places we visit every day. We'll see if "unmasked" vs. "masked" companies gain a leg up over each other — and if these rules-within-rules create public confusion. 

💵 The Great Divide