__Hype machine (learning)…__ __Nvidia__ is riding the artificial-intelligence wave near a trillion-dollar valuation. The chipmaker’s stock surged 25% yesterday after it [reported](https://www.cnn.com/2023/05/25/tech/nvidia-earnings-ai/index.html) earnings, catapulting it to the #5 spot of highest-valued US companies (behind #4 __[Amazon](https://robinhood.com/stocks/AMZN/)__). Nvidia’s revenue was down 13% from last year as demand for its gaming chips sagged. But sales grew 19% quarter over quarter thanks to demand for its data-center chips for cloud and AI. 

- __What investors *really* liked:__ Nvidia expects revenue to be 50% higher this quarter than last as the need for AI chips soars.

- __Rising tide:__ Techy boats lifted on Nvidia’s news as investors piled into other chip stocks like __[AMD](https://robinhood.com/stocks/AMD/)__, __TSMC__, and __[ASML](https://robinhood.com/stocks/ASML/)__. 

__Selling shovels to an AI gold rush…__ and Nvidia’s set up shop in a boomtown. Nvidia’s A100 chip was already the gold standard used in the large language models that underpin AI tools (thousands of A100s were used to train __OpenAI__'s ChatGPT). But last month a hot new bombshell entered the server: the H100 chip, which is apparently faster and stronger than its predecessor. Orders are flooding in for the supercomputing chip from companies like __[Dell](https://robinhood.com/stocks/DELL/)__ and __[Google](https://robinhood.com/stocks/GOOGL/)__. 

- __Ahead of the pack:__ Unlike rivals __[Intel](https://robinhood.com/stocks/INTC/)__ and __AMD__, Nvidia has specialized in GPUs (graphics chips), positioning it well for the latest rush.

FYI: It’s pronounced “En-vidia” (Jakub Porzycki/Getty Images)

Chipper

__Change your shovels based on the gold…__ Nvidia is known for its graphics cards for gaming consoles like __[Nintendo](https://robinhood.com/stocks/NTDOY/)__'s Switch. Gaming sales made up nearly a third of its revenue last quarter, even after dropping 38% from last year. As the pandemic-fueled gaming boom fades and controllers start to gather real dust (not just Cheeto dust), Nvidia is shifting its focus to the AI gold rush to drive growth.

Nvidia nears a $1T market cap as it positions its chips as fuel for the AI race

__Eyes, lips, profits…__ __[E.l.f.](https://robinhood.com/stocks/ELF/)__ shares jumped 20% yesterday after the budget makeup brand [posted](https://www.barrons.com/articles/elf-beauty-stock-price-earnings-d3ffc145) head-turning results. Its sales grew nearly 80% last quarter, marking 17 straight quarters of growth, and flying past Wall Street’s forecasts. E.l.f rose to drugstore fame with its variety of affordable makeup (picture: $7 glosses, $10 primer). Now it’s ranked the #4 largest mass cosmetics brands in the US, topping OG icons like __Revlon__ and __CoverGirl__. 

- __Mixed foundation:__ Last month rival __[Estée Lauder](https://robinhood.com/stocks/EL/)__ disappointed as makeup and skincare sales fell. __L’Oreal__ saw growth thanks to a rebound in the US and Europe.

- __Glowy outlook:__ E.l.f’s CEO said its “winning formula” of value helped it issue what could be its strongest growth forecast ever. 

__Coffee gloss and glitter bombs…__ E.l.f. has long been a staple of the beauty industry’s dupe-economy, and gained even more fame thanks to buzzy collabs and social-media reviews (#GRWM). FYI: E.l.f has been tagged on __TikTok__ nearly *7B*+ times. Skincare took center stage during lockdowns, but after folks started going out again, “Euphoria”-style color cosmetics rebounded. Meanwhile, more “fresh face”-focused brands (cough, __Glossier__) are losing their shine. For the first time since 2020, teenagers are spending more on makeup than skincare.

Smize

__It’s the inside that counts…__ E.l.f.’s no-frills packaging is the opposite of flashier (but pricier) competitors. Instead, E.l.f. has leaned into quirky collabs with brands like __[Chipotle](https://robinhood.com/stocks/CMG/)__ and __Dunkin’__ and word-of-mouth from TikTok beauty gurus. Its affordable prices allow teens to experiment with makeup trends without breaking the bank. Now E.l.f has become Gen Z’s #1 beauty brand, topping cult faves like Selena Gomez’s __Rare Beauty__ and Rihanna’s __Fenty Beauty__.

E.l.f. reports stunning earnings as Gen Z goes all in on budget beauty trends

🤹‍♀️ __Quirky…__ Shaq got [served](https://www.wsj.com/articles/shaq-served-again-in-ftx-lawsuitat-former-ftx-arena-a2ccbfd8). The NBA Hall of Famer was delivered a summons related to the __FTX__ crypto exchange, for which he was a paid spokesman. He was reportedly served in the formerly named FTX Arena.

🤔 __Sus…__ Reuters sources said that __Binance__ [commingled](https://www.reuters.com/investigates/special-report/crypto-binance-money/) billions of dollars in customer funds with its own revenue. The world's largest crypto exchange denied the report. Former regulators said mixing customer and exchange cash puts clients' $$ at risk.

🤖 __Techy…__ The maker of the __Ledger__ crypto hardware wallet [paused](https://decrypt.co/142105/ledger-recover-rollout-delayed-humbling-ceo-experience) the rollout of a key recovery feature after customers pushed back over worries that "Ledger Recover" could put their secret seed phrases at risk.

DUNK

The Crypto Catch-Up…

Dow Jones

S&P 500

Nasdaq

Bitcoin

Miami’s bitcoin conference attendance dropped more than half from last year

🤖 Nvidia’s AI gold rush

__Something’s in the air…__ and it’s not Fierce cologne. __[Abercrombie & Fitch](https://robinhood.com/stocks/ANF/)__ shares soared 31% yesterday after the mall icon unloaded decade-high Q1 sales, a [surprise profit](https://www.cnbc.com/2023/05/24/abercrombie-fitch-anf-q1-earnings-report-2023.html), and a boosted annual forecast. A&F was a middle-school must-have in the early-2000s (moose shirts sold by shirtless models were a status symbol). But in the 2010s its popularity fell lower than a Y2K waistline. Then came a turnaround:

- __New look:__ A&F stopped aggressively spritzing stores and scrapped the moose logo in 2017 when Fran Horowitz joined as its new CEO, leading an “America’s Next Top Model”-level makeover with Aaron Levine, who revamped its clothing design.

- __Inclusivity:__ After notoriously refusing to carry sizes above L in the ’00s, the retailer added extended sizing and showed it off in a 2020 ad campaign featuring plus-size models, and has leaned into inclusive marketing. 

__Super-high rise…__ A&F’s brand refresh started in the late 2010s but only recently started paying off after serious legwork by top execs. It’s avoided the mall graveyard, despite a critical Netflix doc last year titled “White Hot: The Rise & Fall of Abercrombie & Fitch.” The comeback was driven by social media: 

- __For You:__ A&F hired a Gen Z consultancy to expand its TikTok presence and collab’d with TikTok stars Charli and Dixie D’Amelio to launch a sub-brand called Social Tourist.

- __#AbercrombieJeans:__ Out of its portfolio of brands (including Hollister and Gilly Hicks), it was Abercrombie’s namesake denim that went viral last year.

That’s so Fitch (Michael M. Santiago/Getty Images)

Y2Comeback

__A&F found its spending sweet spot…__ While retailers like __[Walmart](https://robinhood.com/stocks/WMT/)__ and __[Target](https://robinhood.com/stocks/TGT/)__ recently said consumers were tightening discretionary budgets, fashion retailers like A&F that hit a mid-level price point (somewhere between Shein and Chanel) are seeing success. This week, __[Urban Outfitters](https://robinhood.com/stocks/URBN/)__ reported double-digit sales growth for its Free People and Anthropologie brands, and __[American Eagle](https://robinhood.com/stocks/AEO/)__ delivered record Q1 revenue thanks to Aerie.

Abercrombie & Fitch stock pops after a years-in-the-making comeback yields results

__Walking the talk…__ Employees at __[Amazon](https://robinhood.com/stocks/AMZN/)__'s HQ in Seattle say they’re going to [walk off](https://www.washingtonpost.com/technology/2023/05/22/tech-layoffs-amazon-walk-out-meta/) the job next week to protest the company’s return to office (RTO) mandate, layoffs, and a perceived lack of commitment to climate pledges. Organizers are looking for at least 1K workers to participate. 

- __Primed:__ After Amazon announced an RTO mandate in February, nearly 30K employees (about 10% of its corporate workforce) signed a petition opposing the hybrid plan. But 700 staffers joined a *pro*-RTO __Slack__ group.

- __Returned:__ Days after announcing another wave of 9K layoffs in March (for a total of 27K since last year), Amazon CEO Andy Jassy rejected the employee petition and doubled down on his three day/week in-office rule (which started this month), despite some offices apparently not being ready for employees until fall.

__Big tech’s morale-gorithm appears to be broken…__ Tech employee morale is said to be plunging as mass layoffs, hiring freezes, and stalled projects have left workers anxious. Even before __[Meta](https://robinhood.com/stocks/META/)__'s 21K layoffs, only 31% of employees were confident in its leaders. Yesterday, Meta wrapped up its latest round of job cuts, which employees said had caused a standstill. __[Microsoft](https://robinhood.com/stocks/MSFT/)__ execs fielded employee questions about “rock bottom” morale at an all-hands this week, while vibes at __[Google](https://robinhood.com/stocks/GOOGL/)__ have also reportedly tanked following layoffs and perk cuts.

RT-No

__RTO may be retreating…__ The number of companies requiring workers in the office full time has fallen to 42% from 49% three months ago. Last year a Gallup poll found that worker engagement had declined the most among workers with remote-friendly jobs who were working from the office. While employers want to get staffers back at office desks to boost collaboration, they risk crushing morale.

Amazon workers plan RTO walkout as tech’s corporate morale nosedives

The world’s priciest ice cream, made with rare white truffles, is sold in Japan for $6K/scoop

👖 Abercrombie’s super-high rise

__Putting down roots…__ The US’s two largest hotel chains, __[Marriott](https://robinhood.com/stocks/MAR/)__ and __[Hilton](https://robinhood.com/stocks/HLT/)__, are [launching](https://www.wsj.com/articles/hilton-marriott-square-off-in-extended-stay-battle-c4b98bc2?mod=pls_whats_news_us_business_f) extended-stay brands to tap into the growing market for longer bookings in apartment-style units. Extended-stay travel (20+ nights) has boomed since the remote-work shift gave employees greater flexibility. Now the hospitality industry is betting it’ll be a long-term moneymaker through economic ups and downs. 

- __Forget the minibar:__ Hilton’s extended-stay rooms will feature kitchens with a full fridge, dishwasher, and cooktop. Lobbies will have markets for snacks and toiletries, and there’ll be shared laundry facilities.

- __Competing with rent:__ Marriott plans to price extended-stay rooms at $80/night, while Hilton looks to charge $100. The average US hotel room rate last year = $150/night.

- __Low vacancy:__ Extended-stay hotels had a 75% occupancy rate last year, up from 2021 and well above the overall hotel-occupancy rate of 63%. Last quarter, nearly a fifth of __[Airbnb](https://robinhood.com/stocks/ABNB/)__'s nights booked were for long-term stays. 

__Status: work from beach…__ Extended stays are no longer just for those relocating for a job or workers on temp assignments. As millions have disconnected from the 9-to-5 office life, blended business-leisure travel (#bleisure) has allowed for longer trips. Biggies like __[Hyatt](https://robinhood.com/stocks/H/)__, __[Wyndham](https://robinhood.com/stocks/WH/)__, and __Best Western__ parent __BWH__ plan to give guests the local lifestyle with extended-stay chains. They’re hoping to attract restless WFHers fed up with the excessive cleaning fees, long chore lists, and rising rates on Airbnb.

The laundry-on-vacation goldrush (Hilton)

Vacay

__You can’t rely on vacay mode…__ While the travel industry is enjoying huge summer demand, hotels are bracing for a potential downturn. Doubling down on the affordable extended-stay model can help them recession-proof. Plus, less guest turnover means lower staffing costs and higher margins from not changing sheets every day.

Hilton and Marriott bet big on extended stays as hospitality unpacks for the long haul

__It’s not a cat filter on the Zoom call…__ it’s an actual cat. __[Walmart](https://robinhood.com/stocks/WMT/)__ is [partnering](https://www.cnbc.com/2023/05/22/walmart-partners-with-pawp-to-offer-free-pet-telehealth.html) with pet-telehealth provider __Pawp__ to offer veterinarian video calls as a perk for Walmart+ members. Subscribers to Walmart’s Amazon Prime competitor can now get unlimited free virtual vet visits for a year (and Fluffy McFluffhead can meow his symptoms into the mic). 

- __Not a streaming service:__ Launched in 2020, Walmart+ is the retailer’s cheaper Prime rival (cost: $13/month or $98/year).

- __Perks in the cart:__ The creatively named membership offers benefits like unlimited free same-day grocery delivery and fuel savings at 14K+ spots. 

__Grass-fed organic lamb for Fido…__ canned peas for Francis. While a lot of Americans have been cutting back on personal splurges, they’re not skimping on their fur babies. Adding pet perks to boost subs is a timely move by Walmart as spending in the category explodes: the US pet market, already worth $124B, is expected to balloon to $200B by 2030. Pet owners are spending on everything from premium treats to [$250 salon](https://www.wsj.com/articles/doodle-dogs-grooming-prices-salons-61da7936) groomings. Healthcare services, including vets and insurance, are driving the spending surge. Last month, Washington state rolled out a law to regulate pet insurance.

Paws

__A niche can help you go mainstream…__ With an estimated 11M+ subs as of last year, Walmart+ is still far behind Prime (~200M members). But Walmart could inch closer to Amazon’s lead by leaning on its key strengths (like discount groceries) and unique perks (like pet telehealth). In a recent earnings call, Walmart said that members spend more than non-members. Boosting subscription revenue could become more important as spending on discretionary goodies sags.

Walmart introduces pet-telehealth perks to boost subscriptions for its Prime rival

💵 *When you pay in cash so that it doesn't show up on your credit-card bill…*

Like an anonymous Venmo, crypto mixers can offer privacy on public blockchains by hiding a coin’s transaction history. Broadly speaking, these services break the connective tissue between crypto put in and crypto pulled out, allowing folks to move digital currency more anonymously. Last year mixers processed nearly $8B in cryptocurrency.

Tornado Cash, a mixer sanctioned by the US government last year, was [hijacked](https://www.bloomberg.com/news/articles/2023-05-21/sanctioned-crypto-mixer-tornado-cash-hijacked-by-hackers). The attacker swapped stolen tokens for 372 __[ethereum](https://robinhood.com/crypto/ETH/)__ (worth about $688K), before using the Tornado Cash smart contract itself to mix the loot.

DEFI(NE)

Heard on the Block: "crypto mixer"

It costs retailers an average of $27 to process $100 in returned merchandise

🏨 Extended stay’s day

__Continental breakfast + lightsaber training…__ __[Disney](https://robinhood.com/stocks/DIS/)__'s shutting [down](https://www.cnbc.com/2023/05/18/disney-worlds-star-wars-galactic-starcruiser-to-shutter.html) its immersive “Star Wars''-themed hotel less than two years after opening it. The high-end stay let fans of the intergalactic franchise to embark on a choose-your-own-adventure experience aboard the Halcyon Starcruiser, and it got rave reviews. The catch: tickets for a two-night stay started at $6K+ for a family of four and nearly $5K for couples. Visitor #s have dwindled, even after Disney began offering discounts to its most loyal customers. 

- __The final frontier:__ Disney said it would stop accepting guests at the hotel this September and is modifying arrangements for fans who booked stays after the close.

- __Return of the Bob:__ The move comes just months after CEO Bob Iger laid out plans to cut Disney’s costs by $5B+ and slash 7K jobs to boost the bottom line. 

__Not-so-happiest place on Earth…__ Disney has tested its theme-park fans' budgets by hiking prices to make up for billions in lockdown-era losses. Last year the Mouse House raised admission prices twice, with hikes of up to 14% at Florida’s Magic Kingdom. FYI: nearly a third of Disney's revenue comes from its parks and experiences, which carried the company last quarter with 17% sales growth. But as Mickey merch and admission fees start to break the bank, even some superfans complained.

A galactic check-in (Allen J. Schaben/Getty Images)

Deathstar

__Magic has a price cap…__ Disney diehards are known for their loyalty, but even they have limits. In a poll last year, 68% of Disney fans said the parks had “lost their magic.” In March, Iger admitted that price hikes have been "a little too aggressive" and said the company plans to be smarter with pricing. The closure of the “Stars Wars” hotel shows that superfans have a breaking point.

Disney’s (already) closing its immersive “Star Wars” hotel as superfans hit their splurging limits

__A pill a day…__ keeps the injections away? A new __[Pfizer](https://robinhood.com/stocks/PFE/)__ drug could shake up a weight-loss industry already undergoing an overhaul. A peer-reviewed study [showed](https://www.cnbc.com/2023/05/22/pfizer-weight-loss-drug-compares-to-ozempic-by-novo-nordisk.html) that, in phase-two clinical trials, patients taking Pfizer’s twice-daily pill lost a similar amount of weight as those taking __[Novo Nordisk](https://robinhood.com/stocks/NVO/)__'s injectable Ozempic — but shed pounds almost twice as fast. Pfizer shares popped yesterday after the news.

- __Ozem-fluencers:__ Ozempic and a similar drug, Wegovy (also made by Novo Nordisk), have become associated with red-carpet celebs looking to lean down.

- __Off-label demand__ for Ozempic, which is FDA approved to treat type 2 diabetes but *not* weight loss, has led to shortages for people who rely on the drug to control their blood sugar.

__Bulking up…__ If approved by the FDA, Pfizer’s pill could become a key player in a growing weight-loss industry supercharged by demand for blockbuster drugs. Last year Ozempic and Wegovy did about $10B in sales. Experts say that a similar drug from __[Eli Lilly](https://robinhood.com/stocks/LLY/)__ could do $25B+ in annual revenue, and that the broader market could hit $100B in a decade. FYI: obesity affects over 40% of US adults.

LOS ANGELES, CALIFORNIA - APRIL 17: In this photo illustration, a box of the diabetes drug Ozempic rests on a pharmacy counter on April 17, 2023 in Los Angeles, California. Ozempic was originally approved by the FDA to treat people with Type 2 diabetes- who risk serious health consequences without medication. In recent months, there has been a spike in demand for Ozempic, or semaglutide, due to its weight loss benefits, which has led to shortages. Some doctors prescribe Ozempic off-label to treat obesity. (Photo illustration by Mario Tama/Getty Images)

Getty Images / Mario Tama

Gulp

__Innovations can upend solid foundations…__ and the ground under the weight-loss industry — which racked up $76B in sales last year — is shaking. Case in point: last month, __[WW International](https://robinhood.com/stocks/WW/)__ (aka: WeightWatchers) finalized its [purchase](https://sherwoodmedia.com/snacks/newsletters/6egD8EKaKsuXeJXn0jLxRV/articles/5zVyZjzopVBAa3J1slcJ5W/) of __Sequence__, a telehealth that puts patients in touch with docs who can prescribe drugs like Wegovy, illustrating how quickly the OG industry has pivoted. If approved, a new generation of oral meds like Pfizer’s pill could again jolt the market.

Pfizer's pill outperforms the competition in trials as the weight-loss race heats up

Nasdaq data link logo

⚔️ Disney’s “Star Wars” snafu

__Zillow scrolling for a fantasy…__ Wannabe homebuyers in the US might’ve been encouraged by some news last week: home prices had their [biggest](https://www.wsj.com/articles/home-prices-posted-largest-annual-drop-in-more-than-11-years-in-april-613f2d58) annual drop in more than 11 years. Last month, the median existing-home price fell to $389K (down 1.7% from a year earlier), mainly driven by declines in the western half of the country.

- __The good(ish):__ It’s the second straight month that home prices fell, a positive sign for prospective buyers. But don’t pop the bubbly yet…

- __The bad:__ The median home price is still $100K higher than it was three years ago, while mortgage rates have soared, hitting 6.4% last week for a 30-yr fixed.

- __The ugly:__ Housing supply is ridiculously low in part because folks scooped up homes during the pandemic when interest rates were near zero. In 2021, the rate on a 30-yr fixed was ~3% — and folks don’t want to give that up. 

__Dreaming of a California 2-bedroom…__ will stick to the one in “The Sims” (FYI: the median CA home price = $815K). Only one-fifth of Americans think it’s a good time to buy a home, a record low, a recent Gallup survey found. Overall it’s a *nobody’s* market, but there are regional differences: 

- __Thumbin' my way into North Carolina…__ The South saw more home sales in April than any other region (nearly 2M homes sold, vs. ~500K for the Northeast, which had the fewest). Over half of Southern home sales were priced between $250K and $500K.

House hunting with no plans to move (Crispin la valiente/Getty Images)

Benched

__Both teams are on the bench…__ as buyers and sellers sit on the sidelines. Home sales have plunged from last year. People who want to move aren’t selling because they feel trapped by the “golden handcuffs” of low mortgage rates. People who want to buy aren’t buying because prices are high while supply’s low. Some experts hope for more activity later this year, as the Fed is expected to pause rate hikes while traders are betting the central bank will even start cutting.

Americans are bench-warming the housing market, creating a game with no winners

__*Not* For You page…__ Last week, Montana [became](https://sherwoodmedia.com/snacks/newsletters/4JvwKZHBJEKUPlmeF8Y0w8/articles/5xVg8eZicN15h6V6c4ZMOl/) the first US state to ban TikTok. Starting in January, the legislation will make it illegal for app stores to offer TikTok within Montana’s borders — TikTok, __[Apple](https://robinhood.com/stocks/AAPL/)__, and __[Google](https://robinhood.com/stocks/GOOGL/)__ could be fined for violations. Montana's move could set a precedent for a nationwide ban: in March, Congress proposed legislation that would allow for a Tik-ban, and President Biden urged lawmakers to pass it over national security concerns. But Montana’s law is expected to face legal challenges over free-speech rights. 

__Miners on the move…__ After the White House proposed a 30% tax on crypto miners' electricity costs, __[Bit Digital](https://robinhood.com/stocks/BTBT/)__ said it’s expanding to Iceland. The NY-based __[bitcoin](https://robinhood.com/crypto/BTC/)__ mining and __[ethereum](https://robinhood.com/crypto/ETH/)__ staking biz said that it [bought](https://www.wsj.com/articles/bitcoin-miner-bit-digital-adds-machines-in-iceland-before-possible-u-s-tax-crackdown-9e645b31) 2.5K mining rigs for $5M and will spin them up in the land of fire and ice. If the tax proposal goes through, other miners may follow in the crypto exod-US. They’d have company: this month, US-based __[Coinbase](https://robinhood.com/stocks/COIN/)__ and __Gemini__ opened trading platforms in Bermuda and Singapore as regulators turned the screws at home.

Zoom Out

Stories we’re watching

__(AI) chip off the old block…__ __[Nvidia](https://robinhood.com/stocks/NVDA/)__ shares neared a record high last week ahead of the chipmaker’s earnings Wednesday, and have more than 2X’d this year. In Nvidia’s last report, sales were down 21% on the year as gaming demand slowed and it shipped fewer chips for consoles like __[Nintendo](https://robinhood.com/stocks/NTDOY/)__'s Switch. But sales for its AI-centered GPUs are taking off as biggies like __[Microsoft](https://robinhood.com/stocks/MSFT/)__, __Alphabet__, and __[Meta](https://robinhood.com/stocks/META/)__ pour $$ into the emerging tech. Despite the future-focused bot buzz, analysts expect Nvidia to report more earnings declines as broader chip demand sags. 

__Prepare for memorial delays…__ This Memorial Day weekend is gearing up to be one of the busiest ever for travel. __AAA__ predicts 42M+ Americans will go out of town instead of BBQ’ing in the backyard, up 7% from last year. Beyond traffic jams, air travel is expected to surpass prepandemic levels, with more folks extending trips beyond the long weekend (s/o #WFH). It’s a boost for airlines, but could also be a delay nightmare: carriers are struggling to meet demand with staff shortages and jet-delivery delays (better pack your Kindle).

Events

Coming up this week

- __[Jolt](https://sherwoodmedia.com/snacks/newsletters/4xGinCufx64B1PV1h0iWbJ/articles/18lxMVPzN1LPUcd03errax/):__ Elon Musk said __[Tesla](https://robinhood.com/stocks/TSLA/)__ will try advertising for the first time after years of relying on word-of-mouth fame. The EV maker is no longer in a lane of its own as electric competition revs into high gear.

- __[iSpy](https://sherwoodmedia.com/snacks/newsletters/4JvwKZHBJEKUPlmeF8Y0w8/articles/7lzEbLcMGDR915JZfCPAbq/):__ The DOJ charged a former __Apple__ software engineer with stealing autonomous driving tech secrets. Stolen intellectual property costs the US up to $600B/year, and China’s the biggest offender.

- __[UnZero](https://sherwoodmedia.com/snacks/newsletters/BAiwG6UN0VIjo3BcvhYLb/articles/4XKAFkPoc1p0vn5uswQeme/):__ China’s reopening boosted sales last quarter for American companies like __[Disney](https://robinhood.com/stocks/DIS/)__ and __[Starbucks](https://robinhood.com/stocks/SBUX/)__, but the post-lockdown recovery is moving much slower than hoped.

ICYMI

Last week’s highlights

Last month 15 US states saw their lowest unemployment rates on record

🏠 Housing market benchwarmers

__*Not* For You page…__ On Wednesday, Montana [became](https://www.reuters.com/world/us/montana-governor-signs-bill-banning-tiktok-state-2023-05-17/) the first US state to completely ban TikTok. Montana Governor Greg Gianforte signed legislation that will make it illegal for app stores to offer TikTok within the state’s borders starting January 2024. TikTok and app store operators __[Apple](https://robinhood.com/stocks/AAPL/)__ and __[Google](https://robinhood.com/stocks/GOOGL/)__ could face fines of $10K/day for each violation, but individual users won’t be penalized. 

- __POV #1:__ The move reflects growing concerns over TikTok’s China ties. Gianforte said his priority is “to protect Montanans from Chinese Communist Party surveillance.”

- __POV #2:__ TikTok, owned by Chinese tech titan __ByteDance__, has denied that it has ever provided user data to the Chinese gov’t.

- __POV #3:__ The ACLU and other critics say the ban violates free speech rights, and Montana’s move is expected to face significant legal challenges.

- __Stitch:__ A trade group funded by Apple and Google has said enforcement would be impossible and that stores can’t geofence downloads state by state.

- __Just Duet:__ Others say the app could be regulated in the same way states restrict online sports gambling ([see](https://time.com/5759895/new-jersey-sports-betting/): New Yorkers taking trains to Jersey to place bets). 

__From feed to shining feed…__ The “ban TikTok” movement goes far beyond Montana’s ~1M population. The app has 150M users in the US, where the government’s been talking about a nationwide ban for years. Recently, things… intensified: in March, Congress proposed two bills that would allow for a Tik-ban. President Biden urged lawmakers to pass the legislation. And TikTok’s CEO got grilled by Congress over national security. The US, Canada, and the EU have already barred federal employees from having TikTok on gov’t devices, and India fully banned the app.

TikTok supporters protest in March (Brendan Smialowski/AFP via Getty Images)

__A Tik-ban would upend the social economy…__ Montana’s law could set a legal or technical precedent for broader bans. TikTok has economic weight, from driving sales for big companies and small businesses, to making songs popular for labels like __[Warner Music](https://robinhood.com/stocks/WMG/)__ and __Universal__. Its disappearance would be a boon for rivals like __Instagram__ and __[Snap](https://robinhood.com/stocks/SNAP/)__.

Montana’s historic TikTok ban could lay the foundation for a nationwide block (or a SCOTUS case)

__The spy who came in from the watercooler…__ The DOJ charged former __Apple__ software engineer Weibao Wang with [stealing](https://www.cnbc.com/2023/05/16/doj-charges-former-apple-engineer-with-theft-of-autonomous-car-tech-for-china.html) autonomous driving tech trade secrets (yep, the Apple Car is a thing) and sharing them with the Chinese self-driving car company he joined. The announcement came in a five-pack of cases, covering airplane parts intended for Russia and an attempt to send weapons materials to Iran.

- __Agent Avengers:__ The five cases were the first from the Disruptive Technology Strike Force (cool name, ngl), which was formed in February to counter corporate spies. The team-up: agents from the FBI, Homeland Security, and US Attorneys' Offices. 

__Tinker tailor corporate spy…__ Stolen intellectual property (including trade secrets, pirated software, and counterfeit goods) costs the US up to $600B/year, the FBI estimates, and China’s the biggest offender. Last year FBI Director Christopher Wray warned that Chinese spying has become “more damaging than ever before.” 

- __Tight grip:__ The US is working overtime to prevent China from riding America’s intellectual coattails. Example: rules introduced last year prevent US citizens from working at certain Chinese chip companies.

- __Slippery methods:__ A former __[GE Aviation](https://robinhood.com/stocks/GE/)__ exec convicted of revealing need-to-know info to China in 2021 explained how the country recruits expats through LinkedIn to attend academic events where they’re pressured to spill trade secrets.

iSpy

__Keep your frenemies close…__ From the spy balloon scandal to the trade war, US-China relations just keep getting worse. But America can’t exactly cut off the world’s No. 2 economy and one of its main trade partners. Still, the crackdown on corporate espionage combined with America-centric policies (like requiring more EV parts to be made domestically) could help the US stay in the economic lead.

An ex-Apple engineer was charged with stealing company secrets, as the US cracks down on corporate espionage

🪙 __Coins…__ __[Tether](https://robinhood.com/crypto/USDT/)__, the biz behind the largest [stablecoin](https://sherwoodmedia.com/snacks/newsletters/1alSYApz9fMDqEf8i3IPRi/articles/1vwhQv8VIIqij4eXh9Wsvw/), said it will [put](https://www.wsj.com/articles/tether-to-buy-more-bitcoin-for-stablecoin-reserves-eaeeee3d) up to 15% of profits into __[bitcoin](https://robinhood.com/crypto/BTC/)__ purchases — adding to its existing $1.5B+ BTC stash. Critics suggested that the move could undermine confidence in Tether’s reserves.

📜 __Policy…__ The DOJ said it [plans](https://www.ft.com/content/5aac457e-cc80-44ae-ac40-9b51d9b601a3) to crack down on crypto platforms that allow or commit crimes like money laundering. Last year illicit crypto transaction volumes hit an all-time high of $20B+. 

🤖 __Techy…__ This week the __[dogecoin](https://robinhood.com/crypto/DOGE/)__ blockchain saw [record](https://www.theblock.co/post/231128/tokens-built-on-dogecoin-results-in-all-time-high-in-daily-transactions) daily transaction #s (even beating bitcoin). Driving the surge: "doginals," a protocol that lets people build memecoins on *top* of dogecoin.

SHIBES

Heinz’s famous “57 varieties” number was made up by the company’s founder

❌ Montana’s Tik-ban

__Coming to a billboard near you…__ Elon Musk [dropped](https://www.caranddriver.com/news/a43920589/tesla-musk-shareholder-meeting-cybertruck-future-cars/) some electric updates at __[Tesla](https://robinhood.com/stocks/TSLA/)__'s annual shareholder meeting this week. Some highlights: the CEO said Tesla would finally deliver its first (long-delayed) Cybertrucks this year, and might eventually produce up to 500K/year. The EV icon teased two upcoming models with a (very dark) silhouette of a car. Elon also said Tesla “will try a little advertising” after years of relying on word-of-mouth fame.

- __Shifting gears:__ Elon tweeted in 2019 that Tesla “does not advertise or pay for endorsements,” but may have changed his mind after buying ad-reliant __Twitter__.

- __Speed bump:__ Despite record deliveries last quarter, Tesla’s profit dropped by more than $1B after multiple price cuts this year failed to fuel demand as much as hoped. 

__Elon has company(s)…__ For years, Tesla was in its own lane as the go-to EV maker. While it’s still the world’s top full-electric car seller, the competitive tide is turning. OG automakers like __[Ford](https://robinhood.com/stocks/F/)__, __[GM](https://robinhood.com/stocks/GM/)__, and __[Volkswagen](https://robinhood.com/stocks/VWAGY/)__ are spending billions to ramp up their own electric production, while Chinese EV makers are [catching up](https://www.businessinsider.com/cheap-chinese-electric-cars-will-upend-the-us-vehicle-market-2023-5) with cheaper, high-tech whips. In January, __[BYD](https://robinhood.com/stocks/BYDDY/)__ overtook Tesla as the world’s largest EV seller (if you count plug-in hybrids). In the first quarter, Tesla controlled just 60% of the full-electric market in California — down from 73% last year.

Three years and counting… (Frederic J. Brown/AFP via Getty Images)

update

__The first-mover advantage doesn’t last…__ Tesla has long enjoyed the advantages of being *the* buzzy EV pioneer. As its sleek cars turned heads on streets, it didn’t need to advertise to grow. But with a plethora of new (and cheaper) EVs flooding the market, Tesla can no longer lean on its first-mover status to compete. Now, it’s hoping ads will convince customers to look its way.

Tesla’s planning to advertise for the first time as EV competition revs into high gear

__A day late and a dollar short…__ Efforts to rein in safety violations and address wage concerns at __[Dollar General](https://robinhood.com/stocks/DG/)__ and __[Dollar Tree](https://robinhood.com/stocks/DLTR/)__ are ramping up. On Tuesday, two activist investment firms [introduced](https://www.cnbc.com/2023/05/16/dollar-general-dollar-tree-urged-to-improve-worker-safety-wages.html) a pair of resolutions that would audit the state of employee well-being and pay inequality at the two leading US dollar stores. FYI: together, the chains make up over 60% of the discount market (#DollarDuopoly). Dollar General and Dollar Tree have asked investors to vote down the proposals.

- __OSHoot:__ Dollar General was deemed a “severe violator” by the Labor Dept., racking up $15.5M in workplace safety violation fines since 2017 (picture: blocked fire exits). In the same period, Dollar Tree (and its subsidiary __Family Dollar__) were fined $19M for violations.

- __Pocket change:__ Those penalties pale in comparison to earnings. DG’s total fines since 2017 amount to just 0.04% of its sales last year.

- __Checked:__ Combined, the two chains employ 377K workers in the US, but lack minimum-wage commitments like the $15/hour guarantee at retail peers like __[Amazon](https://robinhood.com/stocks/AMZN/)__ and __[Target](https://robinhood.com/stocks/TGT/)__. As of last year, 92% of DG’s workforce made less than $15/hour.

__Low prices are in high demand…__ Family Dollar was behind only __[Walmart](https://robinhood.com/stocks/WMT/)__ in food and beverage sales growth as of February. As inflation-pummeled shoppers hunt for savings and #[DollarTreeDinners](https://www.tiktok.com/@dollartreedinners?lang=en), companies like __[Kraft](https://robinhood.com/stocks/KHC/)__ and __[Hershey](https://robinhood.com/stocks/HSY/)__'s are working with dollar stores to stock their products. Dollar General said it’s seeing more traffic from higher-income customers ($75K+/year), and has sought ways to encourage higher spending (think: broom pieces sold separately).

Change

__Rolling stones are hard to stop…__ Fines aren’t slowing the dollar duopoly: more than one-third of all US stores opened in 2021 and 2022 were dollar stores, and DG plans to open 1K+ more this year. But some areas have opted to banish the chains to protect mom-and-pop shops: at least 75 communities have voted down dollar store openings since 2019.

Dollar stores face wage and safety side-eye as inflation fosters a discount retail boom

The new “Zelda” sold 10M copies in 3 days, becoming Nintendo’s fastest-selling game ever in the Americas

🚗 Tesla’s ad U-turn

__Cold Brew spring in Beijing…__ After years of strict zero-Covid policies and lockdowns, China is again open for business. Last quarter consumers returned to spots like China's 6.2K __[Starbucks](https://robinhood.com/stocks/SBUX/)__ and Shanghai Disney Resort, boosting sales for US corporations. Lots of companies — including __[MGM Resorts](https://robinhood.com/stocks/MGM/)__, __[Procter & Gamble](https://robinhood.com/stocks/PG/)__, KFC parent __[Yum Brands](https://robinhood.com/stocks/YUM/)__, __Starbucks__, and __[Disney](https://robinhood.com/stocks/DIS/)__ — [said](https://www.cnbc.com/2023/05/14/china-sales-help-starbucks-yum-mgm-disney-tapestry.html) that the China rebound lifted their latest earnings. But it didn’t help everyone: 

- __iDidn’t benefit:__ __[Apple](https://robinhood.com/stocks/AAPL/)__'s China sales *shrank* last quarter from a year earlier, foiling hopes that demand would bounce back after restrictions were lifted.

- __Mascara tears:__ __[Estée Lauder](https://robinhood.com/stocks/EL/)__ stock plunged this month after the beauty behemoth gave a weak outlook, saying Asia demand didn’t come back as strong as expected.

- __Travel light:__ Though international Chinese tourism is back, it’s still much lower than prepandemic levels. Many are traveling closer to home (think: MGM’s Macau casinos). 

__Not so snappy…__ So far China’s recovery has been meh. April economic data released this week disappointed, with industrial production and retail sales growing less than forecast. Meanwhile, the youth-unemployment rate last month surpassed 20% for the first time. That’s far from inspiring, since younger consumers are key to fueling spending. Five months into the reopening, most companies are still waiting to reach prepandemic sales levels.

A half-and-half recovery (CFOTO/Getty Images)

Unzero

__The Chinese consumer is key…__ As the second-most-populous country with a growing middle class, China holds a lot of weight for multinational corps. Spending there is even *more* important to US companies now that Americans are tightening their budgets. The highly anticipated rebound has underwhelmed so far, yet some analysts predict a summer of “revenge spending.”

China’s reopening boosts sales for US companies, but not nearly as fast as hoped

__“Succession”-size problems…__ Last year the median pay for S&P 500 CEOs dropped for the first time in a decade, falling to $14.5M, The Wall Street Journal [reported](https://www.wsj.com/articles/ceo-pay-packages-fell-sharply-in-2022-as-the-stock-market-sank-3d06eb69?mod=hp_lead_pos1). Chief execs are mostly paid in company stock, and the S&P 500 shed nearly 20% last year (womp). By the end of 2022, two-thirds of executives got smaller pay packages than originally awarded. 

- __New rule:__ Traditionally packages were revealed only when they were awarded. As of last year, the SEC started requiring reporting of compensation “actually paid” by the end of the year.

- __Expectation vs. reality:__ The change forces a direct comparison between how much executives were initially awarded and how their companies performed.

__Started from the top…__ Some execs who were initially awarded the biggest packages saw the value of their equity plunge, while others rose through the ranks: 

- __Wipe-out:__ The top-paid corporate leader, __[Alphabet](https://robinhood.com/stocks/GOOGL/)__'s Sundar Pichai, was awarded a package valued at $226M, but that fell to $116M after a year of battered tech stocks.

- __Gains:__ The big bosses of __[Exxon](https://robinhood.com/stocks/XOM/)__ and __[Chevron](https://robinhood.com/stocks/CVX/)__ saw the value of their payouts more than double by the end of the year as oil stocks surged, pushing them from the No. 15 and No. 62 best-paid CEOs into the top 5.

Paycut

__When times are tough, scrutiny gets tougher…__ Last year, a record # of companies *didn’t* receive majority support from shareholders for CEO pay packages. Recently, entertainment execs’ pay has been put under a microscope as the Writers Guild of America strikes. Nearly half of __[Warner Bros.](https://robinhood.com/stocks/WBD/)__ shareholders voted on Monday against CEO David Zaslav’s pay. At the same time, record buybacks are drawing side-eye from investors who worry they’re merely pumping execs’ bonuses.

CEO pay fell for the first time in a decade as shareholders size up top execs’ comp

Nearly 8 in 10 Americans say it's a bad time to buy a house — a 45-year high

🇨🇳 China’s meh rebound

__The seat-belt sign is on…__ and there could be turbulence ahead for summer travelers. At least 25K US pilots have voted to [authorize](https://www.washingtonpost.com/travel/tips/southwest-strike-united-american/) a strike this month as peak travel season approaches and new contracts haven’t been reached with major carriers. Pilots at __[American Airlines](https://robinhood.com/stocks/AAL/)__ and __[Southwest](https://robinhood.com/stocks/LUV/)__ overwhelmingly approved a strike, and those at __[United](https://robinhood.com/stocks/UAL/)__ picketed last week.

- __Full flight:__ 80% of US air travel is flown by four carriers — American, United, Southwest, and __[Delta](https://robinhood.com/stocks/DAL/)__ — three of which have potential work stoppages looming.

- __Slipstream:__ After Delta pilots authorized a strike last year, the airline approved a $7.2B pay hike that’ll boost wages by 34% over four years. Pilots at competing airlines are seeking similar deals, plus more reliable schedules.

- __Red-eye:__ For airlines this is particularly bad timing for a labor dispute. The industry faces a staffing crunch, __[Boeing](https://robinhood.com/stocks/BA/)__ jet shortages, and booming summer demand.

__Planes, trains, and labor disputes…__ Airline and railway strikes are rare because Congress can vote to block them with a law that protects interstate commerce (see: Biden blocking a nationwide rail strike in December). But frustrated pilots could still disrupt airline schedules by refusing to work overtime. Meanwhile, airlines are facing a surge in pilot retirements given the FAA’s age limit of 65: half will be forced to retire in the next 15 years.

United Airlines pilots at SFO (Justin Sullivan/Getty Images)

Boarding

__Essential workers are waiting for their payday…__ Pilots — like rail workers, delivery drivers, educators, and nurses — were all essential to the economy as the pandemic halted work in other sectors. Contract negotiations are coming due in nearly all these industries, as essential workers come out of the pandemic without significant pay bumps. If unresolved, it could mean disruptions in everything from shipping to healthcare.

US pilots seem set on striking as staffing shortages collide with booming vacay demand

__Sunset in Viceland…__ __Vice Media__, the news company behind sites like Motherboard, Refinery29, and (of course) Vice.com, has [filed](https://www.nytimes.com/2023/05/15/business/media/vice-bankruptcy.html) for bankruptcy. Yesterday it agreed to sell most of its assets to a group of creditors for $225M — a far cry from its $5B+ valuation six years ago. Refresher: Vice launched in the mid-'90s and quickly gained fame thanks to its edgy headlines and quirky docu-series ([see](https://video.vice.com/en_us/topic/snakeman): “Snakeman”). But Vice has struggled to turn a profit as news-consumption habits shift.

- __Old series:__ Vice's monthly US visitors dropped to 20M in March — just half its audience in 2019. Last week it axed 100 jobs and its flagship “Vice News Tonight” program.

- __New chapter:__ The company says it plans to use the creditors’ cash to keep biz running as usual, while looking for a larger buyout offer to help escape its $800M+ of debt.

__The digi-darling downfall…__ Vice’s bankruptcy follows the unraveling of other digital-native media sites that’ve struggled to keep eyeballs. Last month __[BuzzFeed](https://robinhood.com/stocks/BZFD/)__ closed its news division, and its stock has plunged 90% since its SPAC IPO in 2021. And last week __[Paramount](https://robinhood.com/stocks/PARAA/)__ shuttered MTV News after 36 years on the air. In 2017 __Mashable__ sold for a fifth of its 2016 valuation.

Click

__News go-tos are consolidating views…__ Half of US adults are getting some or most of their news from social media, redirecting precious ad dollars away from digital publishers. While buzzy headlines from Vice and BuzzFeed can rack up likes on social feeds, it doesn’t translate to consistent site traffic. Meanwhile, traditional publishers are holding their weight: __[The New York Times](https://robinhood.com/stocks/NYT/)__ added 1M digital-only subscribers last year, in its second-best year for online subs.

Vice Media goes bankrupt as buzzy digital publishers lose their click status

🥸 *When someone makes a bunch of alt accounts to dominate a Twitter poll…*

On the internet nobody knows you're a dog, or that you're behind the 70 profiles voting #beef in a pet-food company's poll. A "Sybil attack" involves creating numerous accounts to manipulate a system (picture: bots), and it's a long-standing problem in cybersecurity and crypto. Sam Altman's __worldcoin__, which uses eye-scanning orbs to establish a person's uniqueness (and reward them with crypto), is said to be on the verge of [scoring](https://www.ft.com/content/f1de2aee-ee13-45e1-bd61-0a269cd650d3) $100M in funding.

Heard on the Block: "Sybil attack"

Nearly half of Americans eat at least three snacks a day

✈️ Now (not) boarding

__Birkin-shaped Amazon bag…__ #Dupe-tagged videos have billions of views on TikTok, with feeds full of [frugal influencers](https://www.ft.com/content/9609381f-8ad5-4f95-b2b2-2b8b050107d4) unboxing look-alikes — or straight up counterfeits — of designer clothes, bags, and shoes (picture: $75 “Louis Vuitton” slippers). Users have also proudly shared dupes of skincare, makeup, and even toilet paper (“Sharmin”?).

- __Duping = new thrifting?__ Google searches for “dupe” hit a record this year, and “[superfake](https://www.nytimes.com/2023/05/04/magazine/celine-chanel-gucci-superfake-handbags.html?)” handbags have __Reddit__ communities dedicated to finding the perfect Chanel replica.

- __Trending up:__ Last year, 37% of 15- to 24-year-olds surveyed by the EU Intellectual Property Office said they bought at least one fake product. That’s up more than double from 2019.

- __FYI:__ Not all dupes try to pass as designer. But even unbranded look-alikes can cross the legal line (think: mimicking the Birkin shape). 

__Countering counterfeits…__ has gotten tougher as more dupes are sold online (sorry, Canal Street). Many producers are thought to operate out of China, with supply chains set up like “Love Is Blind” pods: sales reps might talk to factories, but details like location are kept secret. It’s estimated that counterfeiters rake in *trillions* annually.

- __Fighting them:__ Designer brands like __Moët Hennessy Louis Vuitton__ (aka: LVMH) spend millions each year taking legal action against counterfeiters. LVMH refused to partner with __[Amazon](https://robinhood.com/stocks/AMZN/)__, saying it doesn’t do enough to take down fakes.

- __Joining them:__ __[Lululemon](https://robinhood.com/stocks/LULU/)__ is hosting “Dupe Swap” events where it replaces customers’ look-alikes of its cult-favorite Align leggings with the bona fide $118 item. #Lululemondupe has 188M views on TikTok.

Playing spot the dupe on TikTok? (Christian Vierig/Getty Images)

Superduper

__Social media has rebranded the copyconomy…__ Viral #baddiesonabudget opting for look-alikes are proud of their frugality, hence the rebrand of “knockoff” to “dupe.” That’s a threat to the *real* luxury market, which has boomed recently as wealthier consumers snatch up price-hiked Prada bags and Rolexes. Last year global luxury sales grew 22% and LVMH reported record sales and profit.

Dupes might be 2023’s biggest shopping trend as social media transforms the copyconomy

__IOU blues…__ On Friday, the Congressional Budget Office said there’s a “significant risk” the US gov’t won’t be able to pay all its bills in June if the debt ceiling isn’t lifted. If lawmakers don’t reach an agreement, the outlook isn’t rosy: Treasury Secretary Yellen predicted an “economic catastrophe,” and __[JPMorgan](https://robinhood.com/stocks/JPM/)__'s CEO said panic could sweep markets. Meanwhile, some are proposing [wacky workarounds](https://sherwoodmedia.com/snacks/newsletters/2pD65Q8aooZgjmKs5sRVfC/articles/73wPYa3nmWgFJby87XMkXK/), including a trillion-dollar coin and using the 14th Amendment to argue the debt limit is unconstitutional (President Biden said he’s considering that one). 

__Refill relief…__ After years of gov’t pressure to lower diabetes drug costs, last week __[Eli Lilly](https://robinhood.com/stocks/LLY/)__ promised the Senate it would stop raising the price of its existing insulin meds. It’s a big deal, since Eli Lilly and its rivals __[Sanofi](https://robinhood.com/stocks/SNY/)__ and __[Novo Nordisk](https://robinhood.com/stocks/NVO/)__ supply 90%+ of the world’s insulin, and *all* of the US’s (#three-opoly). This year, all three announced plans to slash insulin prices, which could provide relief to 8M+ Americans who rely on the lifesaving drug. Companies charge as much as $200/dose, though it can cost less than $10 to make.

Zoom out

__John Deere in the headlights…__ __[Deere](https://robinhood.com/stocks/DE/)__ is expected to report on Friday, and the tractor titan hopes to reap the benefits of a heavy equipment boom that netted competitor __[Caterpillar](https://robinhood.com/stocks/CAT/)__ a 26% profit bump. Deere’s recent moves suggest it’s aiming to be the __[Apple](https://robinhood.com/stocks/AAPL/)__ of agriculture. It’s leaning into software to release techy, self-driving machinery *and* investing in a satellite network to help connect advanced equipment in remote areas of the US and Brazil. By the end of the decade, Deere wants 10% of its revenue to come from software fees. 

__Bananas > blenders…__ Big box behemoths __[Walmart](https://robinhood.com/stocks/WMT/)__ and __[Target](https://robinhood.com/stocks/TGT/)__ are set to report, and the retail picture’s jumbled. Consumers have been cutting back on big-ticket items like TVs, clothes, and blenders, which typically have higher margins. At the same time, Walmart benefited as discount seekers turned to the value seller for groceries and other essentials. But when they last reported, both retailers gave tepid annual forecasts as Americans cut back on discretionary spending. We’ll see later this week if cooling inflation has shaken up those forecasts.

- __[Huney+](https://sherwoodmedia.com/snacks/newsletters/1UxmY3BSEFwFupcPoRituz/articles/Z5sWGxQTAJQxOndjiQOSi/):__ __[Disney](https://robinhood.com/stocks/DIS/)__ will merge its streamers Disney+ and Hulu into one app as it tries to apply a tourniquet to its cash-bleeding streaming biz. Subscription fatigue has led to similar consolidations by __[Warner Bros.](https://robinhood.com/stocks/WBD/)__ and __[Paramount](https://robinhood.com/stocks/PARAA/)__.

- __[Standby](https://sherwoodmedia.com/snacks/newsletters/2mR6HB0rxS2Ky7HplIKsY8/articles/1ECkqL7snWOkXJF4yK7bYW/):__ After __[Southwest](https://robinhood.com/stocks/LUV/)__'s holiday meltdown, the White House pitched new rules that would require airlines to compensate passengers for flight disruptions *beyond* just refunds (like: hotels, meals, cabs).

- __[Gap](https://sherwoodmedia.com/snacks/newsletters/6J1cMGlepW40UWB5HyrHi6/articles/4CF3ye1tUeS3JDA6JXxPIG/):__ __[Goldman Sachs](https://robinhood.com/stocks/GS/)__ agreed to pay $215M in one of the largest ever gender discrimination settlements. Women made 82 cents on the dollar compared to men last year — only 2 cents more than in 2002.

Most of the light in the universe is invisible to human eyes (think: radio waves, UV rays)