__Oh, Zuck...__ Even legless metaverse [avatars](https://www.gizmodo.com.au/2021/12/facebook-takes-a-first-step-toward-making-the-metaverse-a-real-thing/) can't distract from this reality: __[Meta](https://robinhood.com/stocks/FB)__ [posted](https://www.wsj.com/articles/meta-platforms-facebook-fb-q1-earnings-report-2022-11651022191?mod=business_lead_pos3) its slowest quarterly revenue growth since going public as Facebook in 2012. In the *previous* quarter, Meta [reported](https://snacks.robinhood.com/newsletters/6As9U5PUBzvDKmuDeCPCxK/articles/2KGgx4q5eCK1xFQBgb2QMp/) a $1B profit hit and its first-ever dip in daily users (cue: __TikTok__ smirk). The latest: users actually ticked up last quarter, but financials… weren’t great.

- __Top line:__ Sales growth majorly slowed to 7%, from 20% in the previous quarter. Meta has blamed Apple’s iOS privacy update for sagging ad sales (ads = nearly all its revenue).
- __Bottom line:__ Profit fell for the second quarter in a row, down to $7.5B, from $9.5B a year earlier. Meta has spent $10B on its meta-ambitions, and it's eating into earnings.
- __Wall Street's line:__ “Could’ve been worse.” Meta stock popped 16% after it reported, as investors were surprised by better-than-expected profit. 
- __Plot line:__ As of yesterday’s close, Meta stock had lost nearly half its value this year. Compare that to the Nasdaq, which has lost one-fifth (also… not great).

__FAANG may be losing its teeth...__ Meta isn't the only Big Techie with slacking growth. Last week __[Netflix](https://robinhood.com/stocks/NFLX)__ [tanked](https://snacks.robinhood.com/newsletters/1hJKveGEOmvpzuLtfVejiF/articles/43M2Oild3MGMPYMecA8Q7K/) on news that it lost 200K subscribers last quarter — and expects to lose millions more. On Monday, __[Google](https://robinhood.com/stocks/GOOGL)__ [reported](https://www.theverge.com/2022/4/26/23043402/google-alphabet-youtube-q1-2022-earnings) slowing sales growth and profits. Investors also ghosted __[Snap](https://robinhood.com/stocks/SNAP)__, which [disappointed](https://www.cnbc.com/2022/04/21/snap-earnings-q1-2022.html) on earnings as ads faced pressure.

All eyes on Big Tech (Justin Tallis/AFP via Getty Images)

Fangs

__Revenue diversity is winning...__ Between Covid, inflation, and war, the economic situation is too fragile to rely on one $$ stream (think: Meta with ads). Even Netflix has [cracked](https://snacks.robinhood.com/newsletters/1hJKveGEOmvpzuLtfVejiF/articles/43M2Oild3MGMPYMecA8Q7K/) the door open to ads, after years of renouncing them. Microsoft crushed earnings thanks to [strong demand](https://www.wsj.com/articles/microsoft-msft-q3-earnings-report-2022-11650941899?mod=article_inline) not only for its software but also for its cloud and cybersecurity services (yep, it has a [$15B](https://www.cnbc.com/2022/04/26/microsoft-15-billion-security-unit-gives-investors-reason-for-hope.html) cyber biz). And even though Google ads slowed, [growth](https://www.theverge.com/2022/4/26/23043402/google-alphabet-youtube-q1-2022-earnings) in cloud, hardware, and services saved the day.

Meta’s sales grew at the slowest pace since its IPO, as Big Techies hit a wall

__Splurging on a new Tulum fit…__ or three. Credit-card companies are racking up profits as you go on a pre-summer swipe spree. Last quarter, __[Visa’s](https://robinhood.com/stocks/V)__ sales [jumped](https://s1.q4cdn.com/050606653/files/doc_financials/2022/q2/Q2-2022-Earnings-Release-_FINAL.pdf) 25%, from a 2% decline a year ago. Now it [expects](https://www.fool.com/investing/2022/04/27/why-visa-and-mastercard-are-rising-today/) to top pre-pandemic levels this year. FYI: Visa makes up over half of the US payments market. 

- __Jett(spend)ing:__ Visa's cross-border volume — aka the number of transactions outside the US — made up [nearly](https://s1.q4cdn.com/050606653/files/doc_financials/2022/q2/Q2-2022-Earnings-Release-_FINAL.pdf) half of revenue as international biz and leisure travel picked up.
- __Visa’s CEO says pent-up__ demand for summer bookings is “very high” and cross-border travel spend, including Europe, is already above 2019 levels. 

__Dusting off the passport…__ As most pandemic-era restrictions have now been lifted, consumers are making up for lost time when it comes to travel. More than 80% of Americans [will](https://news.yahoo.com/americans-plan-to-travel-more-and-often-151304546-151902867.html) take at least one trip with family and friends this year, and at least half plan to spend more than before the pandemic. For tourists visiting the US, Visa execs say there’s “plenty of recovery” to come.

- __Big balances:__ Last quarter, rival __[Amex](https://robinhood.com/stocks/AXP)__ [saw](https://www.reuters.com/business/finance/amex-profit-tops-estimates-strong-travel-entertainment-spending-2022-04-22/) a 121% rebound in entertainment and travel spend, while __[Capital One](https://robinhood.com/stocks/COF)__ got more [swipes](https://www.fool.com/earnings/call-transcripts/2022/04/26/capital-one-financial-cof-q1-2022-earnings-call-tr/) in its “heavy spender” category.
- __Swipe-off:__ __[Mastercard](https://robinhood.com/stocks/MA)__, which has a similar biz to Visa, is also expected to score a travel-related sales surge when it reports earnings today.

Plastic

__Consumer spending is in a U-turn…__ People aren’t spending less — they’re spending differently. Think: moving dollars from __[DoorDash](https://robinhood.com/stocks/DASH)__ and Netflix and into restaurants and delayed vacays. But it’s TBD how long the spree can last: concerns are [rising](https://www.cnbc.com/2022/04/26/us-bonds-treasury-yields-dip-as-economic-slowdown-fears-mount.html) that the global economy might be in for a significant slowdown that could hit consumers just as they’re venturing back into their pre-Covid routines.

Visa sales soar as consumers ignore inflation and keep swiping on summer travel

Meta’s sales grew at the slowest pace since its IPO, as Big Tech hits a wall

Dow Jones

S&P 500

Nasdaq

Bitcoin

Thomas Jefferson and John Adams died on the same (symbolic) day: July 4, 1826

🧱 Big tech hits a wall

__Crypto primer...__ the moisturizing kind. __Oddity__ is the tech-focused parent company of [TikTok-approved](https://www.tiktok.com/@ilmakiage) makeup brand Il Makiage. Think: AR shade-matching and algorithmic foundation quizzes. Its employees are [mostly](https://news.yahoo.com/il-makiage-parent-company-oddity-050134136.html) data engineers with zero background in beauty. Now Oddity has become one of the first non-crypto companies to tie a blockchain-based security directly to its equity ownership. Let’s de-jargon that:

- __Oddity tokens:__ The viral D2C makeup company [launched](https://www.wsj.com/articles/beauty-company-oddity-to-offer-crypto-token-tied-to-ipo-11650934255?mod=markets_lead_pos6) a digital “security token” that runs on the ethereum blockchain. The tokens are digital contracts that can be tied to assets like stocks, commodities, and real estate. 
- __Investors could get:__ The token will convert into regular shares when/if Oddity goes public, at a 20% discount to the IPO price. But it *won’t* be tradeable until an IPO. 
- __Oddity gets:__ Fresh cash from “accredited investors,” not just VCs. Accredited = $200K+/year or $1M net worth.
- Oddity was valued at $1.5B after raising $130M in January, and is rumored to be prepping its public debut.

__Ethereal blush…__ on __[ethereum](https://robinhood.com/crypto/ETH)__ blockchain. Oddity’s token will be issued through an SEC-registered blockchain platform called Securitize, which has been developing the (still tiny) market for security tokens. Oddity says its token is a “[trailblazing](https://www.beautypackaging.com/contents/view_breaking-news/2022-04-26/oddity-launches-digital-token-and-aims-to-democratize-investing/)” financial innovation. It might be onto something:

- __Security tokens__ could unlock an opportunity for more people to invest pre-IPO, changing the way private companies fundraise.

Cateye goes crypto (Ilya S. Savenok/Getty Images)

Contour

__Security tokens could also be a gateway…__ to wider crypto acceptance. Unlike the stock market, the “[Wild West](https://www.wsj.com/articles/sec-will-police-cryptocurrencies-to-maximum-possible-extent-chair-gary-gensler-says-11628007567?mod=hp_lead_pos6)” of crypto is still largely unregulated. Security tokens could be a bridge between the new world of digital assets and the old world of traditional markets. They’re created and traded on digital platforms, like cryptocurrencies. But they’re offered as regulated assets, like stocks and bonds. That could help set a standard for crypto regulation.

Techy makeup company Oddity links a digital token to its IPO, tying crypto to regulated markets

__Zelle-ing into the void…__ America’s biggest money-transfer app (hint: not __Venmo__) is in the hot seat. When payment apps like __Zelle__, Venmo, and __Cash App__ [boomed](https://fortune.com/2020/05/20/venmo-paypal-cash-app-use-coronavirus-pandemic-mobile-payments/) during the pandemic — as people ditched germy ATMs — scammers paid attention: 18M people in the US [reportedly](https://www.nytimes.com/2022/03/06/business/payments-fraud-zelle-banks.html) got swindled on payment apps in 2020 alone. Now lawmakers are [accusing](https://www.nytimes.com/2022/04/26/business/zelle-fraud.html) Zelle of not taking responsibility in cases of fraud — just as the app considers expanding into retail payments. The details: 

- __What the Zelle:__ This week US senators [accused](https://www.nytimes.com/2022/04/26/business/zelle-fraud.html) __Early Warning Services__ (EWS), the company that owns Zelle, of leaving users exposed to scams. 
- __How the scams work:__ NYT [reported](https://www.nytimes.com/2022/03/06/business/payments-fraud-zelle-banks.html) that thieves accessed accounts by impersonating banks, and used Zelle to siphon cash. EWS reportedly doesn’t often reimburse customers because the customers *technically* do authorize the transfers. 

__Late to the payments party…__ but showing up with a bang. EWS is owned by __[Bank of America](https://robinhood.com/stocks/BAC)__, __[Capital One](https://robinhood.com/stocks/COF)__, __[Chase](https://robinhood.com/stocks/JPM)__, __PNC__, __[Truist](https://robinhood.com/stocks/TFC)__, __[US Bank](https://robinhood.com/stocks/USB)__, and __[Wells Fargo](https://robinhood.com/stocks/WFC)__. The banks launched Zelle in 2017 to compete with __[PayPal](https://robinhood.com/stocks/PYPL)__-owned Venmo and other fintech rivals. Zelle has grown quickly because — unlike Venmo — it doesn’t charge instant-transfer fees and is auto-included in many bank accounts.

- __Caught up:__ Last year Americans sent $490B with Zelle — and just $230B with runner-up Venmo.
- __Still growing:__ WSJ [reported](https://www.wsj.com/articles/banks-weigh-using-zelle-to-challenge-visa-mastercard-11649246400) earlier this month that some banks want Zelle to compete directly with __[Visa](https://robinhood.com/stocks/V)__ and __[Mastercard](https://robinhood.com/stocks/MA)__ by getting into point-of-sale payments.

__Moving money is making money…__ and banks don’t want to miss out. Ten fintech startups have scored $10B+ valuations in recent years by streamlining money movement for the digital era. But the big banks stayed competitive by joining forces to undercut payment apps like Venmo with fee-free Zelle. Now they may use that same fee-cutting strategy to take on credit-card giants — if Congress doesn’t punish them first over the fraud reports.

Zelle users say they’re being scammed — and Congress is taking notice just as the payment app looks to expand

Makeup company Oddity links a digital token to its IPO, tying crypto to regulated markets

TikTok was — once again — the world’s most downloaded app last quarter

💄 Makeup IPO, blockchain-style

__He really did it…__ Elon [bought](https://www.nytimes.com/live/2022/04/25/business/elon-musk-twitter) Twitter. Yesterday Twitter agreed to sell itself to Elon Musk for $44B after weeks of intrigue. A recap: three long weeks ago Elon outed himself as Twitter’s biggest shareholder and (briefly) joined its board. Then he tried to take over, prompting the board to use a [poison pill](https://snacks.robinhood.com/newsletters/6SU09oBawHBluL6GDg7VT8/) to try to stop him. It didn’t work…

- __Money talks:__ Elon’s offer was 38% higher than Twitter’s pre-Musk value. So once Elon got $13B from __[Morgan Stanley](https://robinhood.com/stocks/MS)__ and other banks, $12.5B from loans against __[Tesla](https://robinhood.com/stocks/TSLA)__ stock, and put up the rest in cash, the board changed its tune. 
- __It’s a pricey purchase,__ even for the world’s richest guy. Elon’s $21B personal investment is one-fifth of his net worth.
- __The deal,__ unanimously approved by Twitter’s board, is expected to close this year, pending regulatory approval.

__The internet’s town square…__ is about to get Elon-ified. After loudly criticizing Twitter for suppressing free speech, he has hinted at making changes to the platform:

- __Fewer ads:__ Elon [wants](https://www.wsj.com/articles/twitter-and-elon-musk-strike-deal-for-takeover-11650912837) to reduce Twitter’s reliance on ads, which make up 90% of revenue, by prioritizing subscriptions. 
- __Less moderation:__ He wants to change current moderation policies to promote free speech, which could frustrate advertisers. 
- __Clearer algos:__ Elon plans to open-source Twitter’s algorithm to show users how posts reach their timelines and reduce bots.


The bird app’s going private (Nikolas Kokovlis/NurPhoto via Getty Images)

Chirp

__The Technoking is a famously hands-on tycoon…__ He’s less interested in reputation and more interested in influence. Twitter doesn’t have __TikTok’s__ user base or __[The New York Times’](https://robinhood.com/stocks/NYT)__ cachet, but it has outsized influence because it's used by everyone from US presidents to Kim K. So while some billionaires pay for prestige (see: Jeff Bezos buying __The Washington Post__), Elon pays for primacy: he wants to be at the center of the issues that interest him. First it was accelerating the green transition with Tesla, then colonizing other planets with __SpaceX__, then “solving” traffic with __The Boring Company__ — and now “saving” free speech with Twitter.

Elon’s buying Twitter for $44B, and now the world’s richest man will own the world’s most influential platform

__Have a Coke and a smile…__ __[Coca-Cola](https://robinhood.com/stocks/KO)__ sales have taken off as more people sip on Gatorades and super-sized movie-theater Sprites. Coke’s [stock](https://robinhood.com/stocks/KO) hit an all-time high yesterday after smashing Wall Street's earnings expectations, posting growth in every category:

- __Soda-licious sales:__ Coke notched a 16% jump in revenue (up [3X](https://www.coca-colacompany.com/press-releases/coca-cola-reports-first-quarter-2021-results) since last year), thanks to strong demand for everything from tea to its signature soda line. 
- __Bubbling over:__ Blaming higher ingredient and packaging costs, Coke hiked prices by [nearly](https://finance.yahoo.com/news/coca-cola-jacks-up-prices-on-shoppers-reports-big-quarter-115645732.html) 10% — but kept its upbeat annual forecast (translation: it expects consumers to keep paying).

__High-fructose frenzy…__ Between inflation, rising interest [rates](https://snacks.robinhood.com/newsletters/2xWxnsCtcEtYcv012Yelqy/articles/5RKIqhn4ILH2LzzUNrtBTn/), and the war in Ukraine, investors have had a tough time finding stable profits in the market. But pantry powerhouses like Coke have weathered the recent volatility as consumers keep splurging on brands they can’t live without.

- __Pampers or bust:__ Last week Gillette and Tide parent __[P&G](https://robinhood.com/stocks/PG)__ [notched](https://www.wsj.com/articles/procter-gamble-posts-its-biggest-sales-gain-in-decades-11650452394) its biggest sales gain in decades, with its most expensive products seeing the highest demand.
- __Sugar high:__ Shares of Coke, __[Pepsi](https://robinhood.com/stocks/PEP)__, and Cheerios maker __[General Mills](https://robinhood.com/stocks/GIS)__ are all up about 20% in the past year, while the [S&P](https://www.google.com/search?q=s%26p+500+chart&rlz=1C5GCEM_enUS969US969&ei=XBlnYuz_EL-HptQPuYeWqA4&ved=0ahUKEwjsneHVmrD3AhW_g4kEHbmDBeUQ4dUDCA4&uact=5&oq=s%26p+500+chart&gs_lcp=Cgdnd3Mtd2l6EAMyDwgAELEDEIMBEEMQRhD6ATILCAAQsQMQgwEQkQIyCAgAELEDEJECMgUIABCRAjIFCAAQgAQyBQgAEIAEMgUIABCABDIFCAAQgAQyBQgAEIAEMgUIABCABDoLCAAQgAQQsQMQgwE6DgguEIAEELEDEMcBENEDOggILhCxAxCDAToLCC4QgAQQxwEQowI6CAgAEIAEELEDOgUILhCABDoRCC4QgAQQsQMQgwEQxwEQ0QM6BAgAEEM6CggAELEDEIMBEEM6CQgAEEMQRhD6AUoECEEYAEoECEYYAFAAWP4LYPwOaABwAXgAgAF6iAHuB5IBBDExLjKYAQCgAQHAAQE&sclient=gws-wiz) has gained only 3% and the [Nasdaq](https://www.google.com/search?q=nasdaq+chart&rlz=1C5GCEM_enUS969US969&ei=ZxlnYomRJPvJptQP4LSguAM&ved=0ahUKEwjJ4JPbmrD3AhX7pIkEHWAaCDcQ4dUDCA4&uact=5&oq=nasdaq+chart&gs_lcp=Cgdnd3Mtd2l6EAMyEAgAELEDEIMBEJECEEYQ-gEyBQgAEJECMgUIABCRAjIFCAAQkQIyCwgAELEDEIMBEJECMgYIABAHEB4yBQgAEIAEMgYIABAHEB4yBggAEAcQHjIGCAAQBxAeOggIABAHEAoQHjoECAAQDToLCAAQBxAeEEYQ-gFKBAhBGABKBAhGGABQAFjoBmDSB2gAcAF4AIABYogB5wOSAQE3mAEAoAEBwAEB&sclient=gws-wiz) is down 8%.

__Consumer staples are the port in an economic storm…__ along with other [non-cyclical stocks](https://learn.robinhood.com/articles/6SSoCuDTYUitHFQrcPb8Yp/what-is-a-cyclical-stock/) — aka companies selling [essential](https://www.investopedia.com/investing/consumer-defensive-stocks/) goods and services (think: groceries, gas). When the economy is booming, non-cyclicals tend to be less popular than their high-growth cyclical peers (like: tech, travel, and cars). But when growth slows, investors gravitate toward necessity-driven non-cyclicals since sales and earnings tend to remain stable regardless of the broader economic conditions.

In this rough market, investors are turning to pantry powerhouses like Coca-Cola to find stability

Elon’s buying Twitter for $44B, and taking charge of the world’s most influential platform

Texas generates nearly double the wind power of any other US state

🐦 Elon’s new nest

__Stark contrast...__ While Americans fly to spring vacays (legally) unmasked, 26M people in Shanghai are under strict Covid lockdown, policed by [robot dogs](https://www.ft.com/content/5c437146-2d18-466b-84af-24a47b32de59) and drones. China's largest city has been on a monthlong freeze as the government enforces its zero-Covid policy. Last week Shanghai [reported](https://www.cnn.com/2022/04/18/china/shanghai-reports-covid-deaths-mic-intl-hnk/index.html) three Covid deaths, the first official fatalities of an outbreak that’s infected about 400K people since March. Despite a near-zero death rate and [falling](https://www.wsj.com/articles/shanghai-to-continue-strict-covid-19-measures-despite-drop-in-cases-11650630510) cases…

- __China’s doubled down__ on the harshest measures since the pandemic began: it’s [sending](https://www.wsj.com/articles/shanghai-to-continue-strict-covid-19-measures-despite-drop-in-cases-11650630510) all Covid-positive patients in Shanghai to quarantine centers, regardless of symptoms. It’s also amping up mass testing and tracing. 
- __Some residents are running out__ of food and water as clogged ports and closed roads crush supplies. It's illegal to leave home to get groceries, and food-delivery drivers are overstretched. The food crisis has sparked [clashes](https://www.cnn.com/videos/world/2022/04/21/shanghai-residents-push-back-against-covid-measures-culver-dnt-ebof-vpx.cnn) between residents and police.

__A city 3X the size of NYC...__ Shanghai accounts for a 10th of China's exports, but now the world's busiest port is at a virtual standstill. It’s hurting China: spending [fell](https://www.bbc.com/news/business-61137195) last month and unemployment hit the highest level since early in the pandemic. It’s also rippling across the global economy, disrupting everything from corporate profits to the ETA of your Shein order:

- __Pricey shipping:__ The cost to export a container is 5X higher than pre-pandemic, and air freight rates have doubled. 
- __Deflated earnings:__ Nearly a fifth of S&P 500 companies get at least 5% of their business from China, and half of US companies in China have reduced their annual sales estimates. 
- __Crushed output:__ __[Tesla](https://robinhood.com/stocks/TSLA)__, __[Volkswagen](https://robinhood.com/stocks/VWAGY)__, and iPhone-assembler __Pegatron__ are among the manufacturers that’ve had to shut down plants during the lockdown.

Traffic jam in Shanghai (Lu Hongjie/Costfoto/Future Publishing via Getty Images)

Waves

__It could be worse than 2020…__ at least economically. That’s because the world’s been relying *more* on Chinese products since the pandemic started. China’s shares of global exports surged to [15.4%](https://www.cnbc.com/2022/04/15/bernstein-chinas-2022-covid-lockdowns-inflation-risk-bigger-vs-2020.html) last year, the highest in a decade. Read: China’s lockdowns will likely have an even greater impact on inflation and global growth than they did the first time around.

As China tightens its “zero-Covid” lockdowns, the world’s economy could get rocked 2020-style

__Break out the breath mints…__ The great de-masking is here, and it’s confusing. Last week a federal judge tossed the mask mandate for transportation. Airlines like __[United](https://robinhood.com/stocks/UAL)__, __[American](https://robinhood.com/stocks/AAL)__, and __[JetBlue](https://robinhood.com/stocks/JBLU)__ dropped their mask rules in response (some pilots did so [midflight](https://www.nytimes.com/2022/04/19/us/mask-mandate-flights.html)). __[Uber](https://robinhood.com/stocks/UBER)__ and __[Lyft](https://robinhood.com/stocks/LYFT)__ followed suit. But the Biden admin is appealing the ruling. Travelers now face a maze of rules heading into the busy summer travel season: masks are optional on flights, but must be on for public transit (subways, buses, cabs) in cities like NY and LA. 

__Putting the “more” in mortgage...__ It’s a hard time to be a house hunter. In the past two years, inventory sank to a 20-year low just as home prices started hitting record highs. Now mortgage rates are above 5% — their highest level in a decade. Soaring rates are making it more expensive for buyers to borrow $$, if they’re lucky enough to win a bid. Though rising rates are already [starting](https://fortune.com/2022/04/04/redfin-red-hot-housing-market-shows-first-signs-cooling-mortgage-rates/) to cool demand, experts expect housing prices to stay high for a while. Some economists even [worry](https://www.jpmorgan.com/insights/research/us-housing-risk) the US is at risk of another housing bubble.

Zoom Out

Stories we’re watching...

__Growing, growing, gone...__ Big Tech may be in for a bumpy earnings week. Last week, Netflix [reported](https://snacks.robinhood.com/newsletters/1hJKveGEOmvpzuLtfVejiF/articles/43M2Oild3MGMPYMecA8Q7K/) a subscriber loss for the first time in a decade, which wiped $50B from its market cap. It’s not the only techie stalling out: in February, __[Meta](https://robinhood.com/stocks/FB)__ [posted](https://www.vox.com/recode/2022/2/2/22915110/facebook-meta-user-growth-decline-first-time-metaverse-mark-zuckerberg-tiktok-competition-earnings) its first user drop *ever*. Other tech giants [face](https://www.marketwatch.com/story/the-big-tech-earnings-boom-is-over-and-investors-are-now-searching-for-safety-11643135288) a combo of labor, inflation, and regulatory issues. We’ll see if the pandemic profit party’s ending for __[Microsoft](https://robinhood.com/stocks/MSFT)__, __[Google](https://robinhood.com/stocks/GOOGL)__, __[Apple](https://robinhood.com/stocks/AAPL)__, and __[Amazon](https://robinhood.com/stocks/AMZN)__ when they report this week, and whether Meta has reversed its last quarter’s user shrinkage.

__Treat-yo-self season...__ is still here. __[Visa](https://robinhood.com/stocks/V)__ and __[Mastercard](https://robinhood.com/stocks/MA)__ are seeing a spike in swipes as you splurge on new fits and dining out. Last quarter, [both](https://s25.q4cdn.com/479285134/files/doc_financials/2021/q4/4Q21-Mastercard-Earnings-Release.pdf) saw revenues jump 25%. Now higher credit costs (which rise with interest rates) could boost payments from card holders. Plus, this month Visa and Mastercard plan to raise swipe fees for merchants, which make up the bulk of their profits. But since those fee hikes are passed to customers, lawmakers are calling for them to be shelved. Still, the swipe fees could push profits close to records when they report this week.

Events

Coming up this week...

- __[Bravo](https://snacks.robinhood.com/newsletters/5dnTQ7q29VzDY0QQYtzv4g/):__ The maker of pricey __Steinway__ pianos [filed](https://www.sec.gov/Archives/edgar/data/1897640/000119312522104954/d212165ds1.htm) to go public on the NYSE. The IP-ian-O comes as luxe spending booms, especially in China, where 30M kids study piano (compared to 10M in the *rest of the world*).
- __[Rev](https://snacks.robinhood.com/newsletters/36fBoHhcd4FMlxtriYB5p0/):__ Tesla’s delivering more cars than ever, even in the face of parts shortages that are holding back its OG competitors. While __[GM](https://robinhood.com/stocks/GM)__ and __[Toyota](https://robinhood.com/stocks/TM)__ saw big sales declines, Tesla’s making record profits. But China’s zero-Covid policy could slow it down.
- __[Adflix](https://snacks.robinhood.com/newsletters/1hJKveGEOmvpzuLtfVejiF/):__ Are you still watching? Apparently not. Netflix’s surprise subscriber loss is sending shockwaves through the streaming world. The Flix is planning an ad-supported tier and a crackdown on password sharing to juice growth.

ICYMI

Last week's highlights...

As China tightens its “zero-Covid” grip, the world’s economy could get rocked 2020-style

Nearly 12B spam texts were sent last month in the US. That’s about 40 texts for every American

🇨🇳 China’s “zero-Covid” effect

__Enter the piano-verse…__ The maker of Steinway pianos is going from the concert stage to the stock exchange. Last week __Steinway Musical Instruments__ [filed](https://www.sec.gov/Archives/edgar/data/1897640/000119312522104954/d212165ds1.htm) to go public on the NYSE (the exact date isn’t set). Its IPO comes as luxury spending booms, particularly in China.

- __Old keys:__ Steinways sell for between $60K and $2.4M. Last year the 169-year-old brand scored nearly $60M in profits, a 14% jump from 2020.
- __New tricks:__ Steinway’s self-playing Spirio accounted for a third of its piano sales last year. Two out of three Spirio owners can’t even play piano, but they can stream live concerts or classic Duke Ellington shows at cocktail parties.

__Powerhouse performers, meet luxury listeners…__ Steinway’s come far from its NYC roots. The company built its brand on partnerships with star pianists (Billy Joel) and iconic venues (Sydney Opera House): 97% of pianists use Steinways in concert. Steinway ships pianos anywhere on Earth for its nearly 2K elite “Steinway Artists” (it even [sent](https://www.steinway.com/news/features/ludivico-einaudi-makes-a-splash) one to an iceberg). But to expand, Steinway is focusing on homebuyers. Increasingly they’re in China:

- __More music:__ Today China has 7X as many pianists as the US. That trend’s accelerating: 30M kids in China study piano, compared to fewer than 10M in the entire rest of the world. 
- __Bigger spending:__ Luxury spending in China’s surging: consumers worth $30M+ — Steinway’s sweet spot — have doubled in the past five years.

Nothing like that new piano smell (Isabel Infantes/AFP via Getty Images)

Ivories

__It’s good to sell pianos, but better to sell luxury…__ Steinway calls itself a luxury brand first and a piano brand second. The reason: the luxe goods market is 135X as big as the musical-instrument market, and it's growing 3X as fast. Steinway mentioned China 156 times in its IPO filing: by catering to China’s music-loving upper class, the piano powerhouse hopes to grow its customer base of big-spending piano lovers.

Steinway files for an IPO to bring its pricey pianos to China’s luxury listeners

__Just in time for Earth Day…__ Carl Icahn's latest beef differs from his usual shareholder-focused strategy of corporate raiding. Yesterday the billionaire investor wrote a passionate letter to __[McDonald’s](https://robinhood.com/stocks/MCD)__ investors accusing the fast-food giant of animal cruelty. Icahn has a small ($50K) stake in the Golden Arches, but it hasn’t kept him from [waging](https://www.wsj.com/articles/blackrock-other-esg-minded-investors-should-back-his-mcdonald-s-campaign-icahn-says-11650503034?mod=markets_lead_pos6) a public proxy battle over the company’s pork-supply-chain practices. 

- __The issue:__ A decade ago, McDonald’s vowed to phase out suppliers that use controversial gestation crates (think: supertight metal stalls for pregnant pigs). Update: still hasn’t happened.
- __Icahn’s answer:__ Add two of his hand-picked directors to McDonald’s board to ensure the pigs are treated better.
- __Mickey D’s response:__ Icahn’s demands are “unfeasible” and would create a “financial burden” for its customers (read: more expensive bacon). 

__Sustainability hypocrisy…__ ESG (environmental, social, and governance) investing is one of the hottest trends on Wall Street. Last year, investors poured a [record](https://www.fastcompany.com/90706552/esg-investing-continued-to-soar-in-2021-the-government-could-boost-it-even-more) $120B into sustainable assets — 2X more than in 2020. While arguing animal welfare should be a pillar of ESG, Icahn’s also calling out corporate green promises as hollow marketing ploys. And he says the big asset managers (like: __[BlackRock](https://robinhood.com/stocks/BLK)__) reap billions without holding companies accountable.

Caged

__A small stake can make a big difference…__ Activist investors are using their influence to force corporations to make sustainable changes. It’s worked before: activist fund Engine No. 1 [won](https://www.bloomberg.com/news/articles/2022-04-07/exxon-faces-emissions-net-zero-votes-a-year-after-activist-win) three seats on __[Exxon's](https://robinhood.com/stocks/XOM)__ board last year with just a 0.02% stake after it convinced shareholders Exxon needed to get serious about climate change. McDonald's shareholders will get their chance to weigh in on Icahn’s cause at its annual meeting next month.

Billionaire Carl Icahn takes on McDonald’s animal-welfare practices, while calling out Wall Street’s ESG “hypocrisy”

Steinway files to go public, and China’s piano-loving upper class is listening

Over 90% of the world’s plastic is never recycled

🎹 Steinway’s IP-ian-O

__Taking a break from [Twitter](https://robinhood.com/stocks/TWTR)...__ Between tweeting about buying Twitter, posting __[Shiba Inu](https://robinhood.com/crypto/SHIB)__ memes, and hopping on __[Tesla's](https://robinhood.com/stocks/TSLA)__ earnings call, Elon is having a busy month. Despite supply struggles and China’s Covid lockdowns, Tesla crushed earnings expectations yesterday.

- __Above and Elon'd:__ The electric-car leader [reported](https://tesla-cdn.thron.com/static/IOSHZZ_TSLA_Q1_2022_Update_G9MOZE.pdf?xseo=&response-content-disposition=inline%3Bfilename%3D%22TSLA-Q1-2022-Update.pdf%22) that sales were up 81% from a year ago, while profit more than 7X'd. The stock spiked 5% after hours.
- __Tesla managed to deliver a record__ [310K](https://ir.tesla.com/press-release/tesla-vehicle-production-deliveries-and-date-financial-results-webcast-first-quarter) cars last quarter, up from 308K the previous quarter. The Model 3 and Model Y (its least pricey models) made up nearly all deliveries.

__It goes Elong way...__ Tesla emerged victorious from "an exceptionally difficult" quarter thanks to #versatility. Its software prowess [allowed it](https://www.nytimes.com/2022/04/02/business/tesla-sales-electric-vehicles.html) to swap hard-to-find chips for ones that were less supply chain-ed. Others weren’t so lucky: while Tesla deliveries were up 70% from the year-ago quarter, OGs like __[GM](https://robinhood.com/stocks/GM)__ and __[Toyota](https://robinhood.com/stocks/TM)__ reported big sales declines because of parts shortages.

- __Showing up:__ Tesla nearly doubled deliveries last year, to 936K, and recently [started](https://www.cnn.com/2022/04/20/investing/tesla-earnings-preview/index.html) shipping cars from its two new Gigafactories in Germany and Texas.
- __Catching up:__ Tesla’s production numbers are moving closer to being on par with traditional luxe carmakers like __[Mercedes](https://robinhood.com/stocks/DMLRY)__ and __[BMW](https://robinhood.com/stocks/BMWYY)__. It’s already pulled ahead of __[Volvo](https://robinhood.com/stocks/VLVLY)__ and __[Subaru](https://robinhood.com/stocks/FUJHY)__.

All lined up and ready to go (Johannes Eisele/AFP via Getty Images)

Tweeter

__China’s clouding the picture…__ for Tesla and for everyone. While some analysts think Tesla could sell 2M cars this year, China’s zero-Covid crackdown is complicating projections. Tesla had to halt production at its key Shanghai factory for weeks because of citywide lockdowns. Yesterday, Elon said “Shanghai’s coming back with a vengeance” ([sleeping bags](https://insideevs.com/news/580746/tesla-retarts-production-close-loop-system/) and all). But the plant’s closure is [expected](https://www.washingtonpost.com/technology/2022/04/20/tesla-elon-musk/) to knock 50K cars off this quarter’s output.

Tesla shows up OG carmakers by crushing earnings with a delivery record, but China is complicating its future

__You’ve hardly touched your Grub…__ and now it’s getting cold. Dutch food deliverer __Just Eat Takeaway__ says it’s [considering](https://www.wsj.com/articles/just-eat-takeaway-considers-putting-grubhub-up-for-sale-after-orders-fall-11650455192) a sale of its US unit, __Grubhub__. It was only last year that Just Eat bought Grubhub for $7.3B, after a boom in pandemic ordering. But the Hub has slowly been crowded out as the delivery rivalries intensified:

- __Lost appetite:__ Just Eat posted a 5% decrease in orders last quarter in North America. 
- __Shrinking slice of the pie:__ Last month Grubhub delivered only 10% of US online orders, down from *nearly 70%* in 2016. In that same span, __[DoorDash](https://robinhood.com/stocks/DASH)__ boosted its share more than 10X, to 59%, and __[Uber Eats](https://robinhood.com/stocks/UBER)__ upped its take 6X, to 30%.

__People are still ordering food online…__ just not on Grubhub. Monthly sales across the online food-delivery biz have increased about 6X since 2018. This year they’re expected to jump 15% from 2021. But well-funded competition and mounting regulatory pressure have made it hard for Grub to stay on top.

- __Dining and dashing:__ Customers will gladly ditch one app to order a cheaper burrito from another; Grubhub’s ex-CEO [said](https://secondmeasure.com/datapoints/food-delivery-services-grubhub-uber-eats-doordash-postmates/) these “promiscuous customers” limit growth.
- __Fee frustration:__ Early in the pandemic, big markets like NYC capped delivery fees to protect struggling restaurants. Grubhub [lost](https://qz.com/2157060/just-eat-takeaway-explores-grubhub-sale-less-than-a-year-after-buying-it/) $100M+ from US fee caps in 2020.

Takeout

__It’s hard to overcome the “first-mover disadvantage”…__ Grubhub dominated US delivery for years before IPO’ing in 2014. But going public first may have worked against it. Although Grubhub posted its first profit in 2018, it sacrificed growth to get there, and now it’s losing money again. Meanwhile, Uber Eats and DD have *never* turned an annual profit, but they’ve burned through VC cash to take a big bite from Grubhub’s market share.

Grubhub may be sold — again — as the one-time delivery leader falls behind Uber and DoorDash

Tesla sets a delivery record, but China is complicating its future

Netflix estimates that 100M+ non-paying households share passwords, and now it’s planning to crack down on moochers

🚚 Tesla delivers

__Binged “Anatomy of a Scandal”...__ Netflix knows we can devour a limited series as if we had unlimited time. The streaming leader revealed yesterday that it [*lost*](https://www.wsj.com/articles/netflix-earnings-q1-2022-11650325682) 200K subscribers last quarter (it was expected to add 2.5M). Even worse: it expects to lose 2M global subs this quarter. Flix shares plunged 25% after hours and are down over 40% this year.

- __Old plot:__ Netflix saw explosive growth in 2020 as Emily in sweats binged “Emily in Paris.”
- __Current plot:__ The pandemic boom led to subscription saturation (#subscripturation) and slowing growth. Netflix added 18M paid subs last year, versus 37M in 2020. Now it’s *losing* subs. 
- __New plot:__ To spur growth, Netflix has expanded beyond content. Last year it [launched](https://snacks.robinhood.com/newsletters/7Kx3ILkPTkUU1EpjaVEiu7/articles/44NJYUat1m1imvGSWMklvL/) a show-themed merch shop (think: “Ultimatum” [tees](https://www.netflix.shop/collections/the-ultimatum)) and five in-app [games](https://www.cnbc.com/2021/11/02/netflix-launches-its-first-mobile-games.html). It’s also expanded into “[experiences](https://techcrunch.com/2022/04/11/stranger-things-fans-can-explore-the-upside-down-in-new-nyc-experience/)” like a “Stranger Things” Upside Down world in NYC.

__Netflix’s ultimatum...__ Unlike Hulu, HBO Max, and other ad-supported streamers, Netflix has rejected commercials, relying instead on subscription $$. In 2019, CEO Reed Hastings said he’d never do ads, “period.” But high prices (#flation) + subscription overload (#subscripuration) have made it harder for consumers to afford multiple streamers. Fast-forward to now:

- __Netflix__ CFO Spencer Neumann recently cracked the door open to ads, saying "never say never" to an ad-supported tier. 
- __Even [Disney+](https://robinhood.com/stocks/DIS)__ is [launching](https://www.nytimes.com/2022/04/19/business/media/netflix-amazon-disney-ads.html) a lower-priced ad tier to hit its subscription goals.

From “never ads” to “never say never” to ads (Ethan Miller/Getty Images)

Ultimatum

__It’s the price-cutting paradox…__ Lowering prices can boost revenue — but only if customers who were paying “premium” prices don’t downgrade. Netflix’s $15.50/month standard plan may be out of reach for many budget-conscious households, so adding a cheaper plan supported by commercials could help it grab a new market. The risk: subscribers who are paying for pricier ad-free plans might downgrade (that [*hasn’t*](https://www.nytimes.com/2022/04/19/business/media/netflix-amazon-disney-ads.html) happened to HBO Max yet). As streaming competition intensifies, it may be worth the risk for the Flix.

Netflix lost 200K subs last quarter and expects to lose millions more. Now ads could be its saving grace

__Slow burn…__ Today is 4/20, the unofficial holiday of cannabis connoisseurs. It’s been a decade since recreational pot was first legalized in the US, in Washington and Colorado. Since then, 16 more states and DC have followed. While national legalization remains an open question, the industry has found ways to [advance](https://fortune.com/2022/04/11/legal-marijuana-sales-33-billion-2022/): 

- __Legal cannabis sales__ are expected to total $33B in 2022, a 32% jump from last year.
- __Three quarters__ of Americans now live in states with some form of legalized weed.
- __520K workers__ are now employed in the US cannabis industry.

__Put that in your pipe and vote on it…__ This month the House [passed](https://www.nbcnews.com/politics/congress/house-vote-bill-legalize-marijuana-rcna22527) legislation to legalize cannabis nationwide. But the bill’s stuck in the Senate, where it’s unlikely to pass because of partisan gridlock — even though it has [support](https://news.gallup.com/poll/356939/support-legal-marijuana-holds-record-high.aspx) from nearly 70% of voters. The absence of a federal law has been a buzzkill for cannabis companies as they try to expand nationally:

- __Green stocks turn red:__ Shares of billion-dollar cannabis giants __[Tilray](https://robinhood.com/stocks/TLRY)__ and __[Canopy Growth](https://robinhood.com/stocks/CGC)__ have fallen to five-year lows as legalization efforts have stalled. Many canna-businesses have chosen to sell in only one state to avoid complex interstate commerce laws.
- __Nowhere to put the green:__ Banks like __[Chase](https://robinhood.com/stocks/JPM)__ and __[Citi](https://robinhood.com/stocks/C)__ and payment processors like __[Visa](https://robinhood.com/stocks/V)__ won’t handle cannabis $$ for liability reasons — even where it's legal. But small banks and credit unions are [embracing](https://www.bloomberg.com/news/newsletters/2022-01-18/marijuana-banking-is-moving-forward-despite-federal-uncertainty) the industry and could open the door to “cannabis banking.”

__High demand doesn’t always assure fast growth…__ Sometimes it’s in the hands of politicians. President Biden hasn’t pushed for pot legalization, which makes it unlikely the Dem-controlled Senate approves the current bill. But analysts think lawmakers may greenlight canna-banking this year, which could help cannabis companies expand to multiple states even without full legalization.

A decade after the first legal toke, a lack of federal laws still weighs on cannabis companies

Netflix lost subscribers for the first time in a decade. Ads could be its saving grace

The term “4/20” was apparently coined by a group of California teenagers in 1971.

🍿 Netflix + ads?

__Bitter medicine…__ __[Twitter’s](https://robinhood.com/stocks/TWTR)__ taking drastic measures to get rid of its Elon headache — a sign it *really* doesn’t want to be under the Technoking’s tweet-happy thumb. Quick recap: two weeks ago Elon Musk [revealed](https://snacks.robinhood.com/newsletters/5lepo7UAINWNcn90JfK6HE/articles/68N6hnLpsgBLa7R4OZx8YF/) a 9.2% stake in Twitter. He then made a $43B offer to buy the company (after declining a seat on its board). Twitter responded by creating a “poison pill” — a tried-and-true way for companies to avoid a hostile takeover. 

- __How it works:__ If Elon tries to buy 15% of Twitter’s shares, the pill kicks in and lets every shareholder *except* Elon buy shares at half price — making a buyout way costlier for him (and diluting Twitter’s stock in the process). Twitter’s board voted unanimously to adopt the plan for one year. 

__The opposite of shareholder activism…__ is board *react-ivism*. Poison pills were invented in the 1980s to stop “corporate raiders” from taking over public companies. To date, no buyer has [ever](https://qz.com/2155991/what-is-a-poison-pill-inside-twitters-plan-to-block-elon-musk/) swallowed a poison pill and forced a takeover at an inflated price (they usually back down). 

- __Taking their pills:__ __[Netflix](https://robinhood.com/stocks/NFLX)__ [used](https://money.cnn.com/2012/11/05/technology/netflix-poison-pill/) a poison pill to stop activist investor Carl Icahn from taking over in 2012, and __[Papa John’s](https://robinhood.com/stocks/PZZA)__ adopted one to [prevent](https://www.nytimes.com/2018/07/23/business/papa-johns-john-schnatter-poison-pill.html) disgraced founder John Schnatter — Papa John himself — from regaining control in 2018.

Case of Elon-itis? Take one and call us in the morning (Peter Dazeley/Getty Images)

Swallow

__But poison pills aren’t 100% effective…__ and if anyone’s willing to swallow one, it might be Elon. With enough money and influence, it’s possible to avoid a poison pill. Theoretically, Elon could persuade 51% of shareholders to replace Twitter’s board — and then buy Twitter anyway, thereby circumventing the pill. But that would take a while, and Twitter’s board could choose another buyer in the meantime. Already, private-equity giants __Thoma Bravo__ and __Apollo__ are [reportedly](https://www.reuters.com/technology/apollo-global-considers-participating-bid-twitter-wsj-2022-04-18/) considering bids.

Twitter pops a “poison pill” to block Elon’s buyout. One possible side effect: selling to someone else.

__The sound of Pop2K...__ a road-trip playlist must. __[SiriusXM](https://robinhood.com/stocks/SIRI)__, the home of Howard Stern and all-day Bruce Springsteen radio, was once a struggling player in a dying industry. It has since turned its fortunes around by focusing on cars… and drivers who’d rather flip on their fave station than fiddle with an aux cord. But Sirius shares fell nearly 3% yesterday after an analyst said the car industry’s ongoing chip shortage could turn into a profit prob. 

- __Last quarter Sirius’ free-trial subscribers__ fell 19% from 2020, partly because of declining car sales. FYI: Sirius relies on converting its trial members into full-time subscribers to make $$. 

__Capitalizing on the commute...__ Sirius’ market cap is nearly the same as __[Spotify’s](https://robinhood.com/stocks/SPOT)__ (about [$26B](https://robinhood.com/stocks/SPOT)), thanks to its 32M+ monthly subscribers. Over the years, automakers from __[GM](https://robinhood.com/stocks/GM)__ to __[BMW](https://robinhood.com/stocks/BMWYY)__ have teamed up with Sirius to integrate its satellite-radio software into their newest models. Now over 80% of new cars sold are Sirius-equipped. But global supply shortages that’ve made car inventory so tight have also put the squeeze on Sirius to diversify:

- __Sirius is focused on creating [content](https://investor.siriusxm.com/investor-overview/press-releases/press-release-details/2022/SiriusXM-Reports-Fourth-Quarter-and-Full-Year-2021-Results/#:~:text=SiriusXM%20Revenue%20Increased%204%25%20to,the%20full%20year%20of%202020.)__ for on and off the dashboard, like hosting exclusive virtual concerts and building up its slate of podcasters.

Tunes

__Low churn is the key to profits…__ Till now, Sirius has largely dodged its car troubles by providing a wide variety of curated programming for road warriors, whether they want Top 40, podcasts, or Howard. And they’re still tuning in: Sirius’ churn rate (aka the # of subscribers who opt-out each year) is less than 2%. That’s better than traditional streamers like __[Disney+](https://robinhood.com/stocks/DIS)__, Spotify, and even Netflix. Yet its long-term success is still tied to the health of the car market.

SiriusXM could be the next company hit hard by the chip shortage, but “sticky” subscribers are helping cushion the blow

Twitter prescribed a “poison pill” to stop Elon’s buyout, but it’s not 100% effective

People born in early 1980s — aka elder millennials — held 8.6 jobs, on average, before they turned 35

💊 Twitter’s “poison pill”

__Open-mic night in the metaverse...__ where the drinks are virtual and the comedians can only roast your avatar. But if the comedy club wants to sell merch or tickets, they'll have to give __[Meta](https://robinhood.com/stocks/META)__ a huge cut. Last week Meta became the largest company to unveil its metaverse-monetization plans. Facebook’s parent [will charge](https://www.reuters.com/technology/meta-take-nearly-half-sales-made-by-its-metaverse-creators-fees-2022-04-13/) creators a 47.5% fee on sales of digital goodies and experiences sold through its VR platform, Horizon Worlds. Some background:

- __Horizon Worlds__ is *kind of* like the App Store, but in 3D (because we're not removed from reality enough already). You need its $300 Oculus VR headset to access it.
- __Instead of apps__ made by programmers, there are “worlds” created by everyday users (think: building a Sims house). And you can hop between worlds.
- __Avatars play and socialize__ in VR. Imagine: Latin dance clubs and games where all players can hear each other (feat. [screaming kids](https://youtu.be/zVWC1tnClSw?t=157)). 
- __Meta released Horizon Worlds__ in December after years of positioning it as a metaverse building block and says it has 300K users so far. 

__Back to met-onetization…__ Meta’s decision to take nearly half of creators’ sales is raising eyebrows. It’s significantly more than __[Apple’s](https://robinhood.com/stocks/AAPL)__ infamous 30% “App Tax” on in-app purchases and downloads, which Zuck himself has criticized. It’s also more than NFT platforms like __Sandbox__, __Decentraland__, and __OpenSea__ get — they take between 2% and 5%. 

- __Horizon’s “creators”__ include regular people as well as corporations like Wendy’s and its “[Wendyverse](https://www.thedrum.com/news/2022/03/30/wendy-s-unveils-wendyverse-within-meta-s-horizon-worlds).” Meta [said](https://www.oculus.com/blog/testing-new-tools-for-horizon-worlds-creators-to-earn-money/) it’ll test new ways to sell digital accessories and access to exclusive spaces (like: influencer AMAs).

Brb, creating my metaverse (Miguel Candela/Anadolu Agency via Getty Images)

MetaMoney

__If you build it, they might *not* come…__ Meta’s putting the cart before the virtual horse. For years Facebook put off monetizing through ads, prioritizing growth over $$. As J. Timberlake [put it](https://youtu.be/k5fJmkv02is?t=100) in “The Social Network”: “You don’t even know what the thing is yet.” Meta’s trying to profit from Horizon before it takes off, and has already invested $10B in its meta-vision — but it’s still TBD whether consumers will spend $300 on bulky headsets to hang there.

Meta reveals its hefty metaverse-monetization plans, taking a bold risk that could alienate “creators”

__Crypto in the capitol(s)…__ While the federal government debates how to regulate cryptocurrencies, lobbyists are taking a state-by-state approach. Pro-crypto lawmakers in states like Florida have passed bills that make it easier for the industry to operate. Already this year 150+ crypto-related bills have been proposed in 40 states. But on the federal level, the Biden admin [thinks](https://www.wsj.com/articles/washington-debates-cryptocurrency-rules-with-sights-set-on-stablecoins-11649588581) stablecoins (pegged to currencies like the USD) could be the real jumping-off point for digital-currency regulation.

__The new silver and gold…__ are lithium and cobalt, the crown jewels of the electric-vehicle biz. The metals are essential to EV batteries, and their prices are soaring: In the past decade cobalt prices have 3X’d and lithium prices have *18X’d*. Now carmakers are securing supply. Last week, __[Ford](https://robinhood.com/stocks/F)__ reportedly [bagged](https://www.wsj.com/articles/gm-strikes-deal-to-secure-cobalt-for-electric-car-batteries-11649775349) a deal with extraction startup __Lake Resources__ to pull lithium from Argentina, while __[GM](https://robinhood.com/stocks/GM)__ teamed up with mining giant __[Glencore](https://robinhood.com/stocks/GLNCY)__ to nab cobalt from Australia. But supplies are still so low that __[Tesla’s](https://robinhood.com/stocks/TSLA)__ considering [mining](https://www.cnbc.com/2022/04/08/elon-musk-telsa-may-have-get-into-mining-refining-lithium-directly.html) its own metals.

__The road to net zero...__ This Earth Day (Friday) high oil prices and the war in Ukraine have boosted global interest in energy independence and sustainability. One option gaining steam: nuclear energy. Last week South Korea (one of the largest fossil-fuel importers) [reversed](https://www.ft.com/content/6329e02a-d3e9-4812-9062-d5fda8ad7c61) plans to phase out its nuclear projects. In the US, President Biden has already committed $1B to nuclear investments and research. Shares of some uranium companies like __[NexGen](https://robinhood.com/stocks/NXE)__ and __[Uranium Energy](https://robinhood.com/stocks/UEC)__, which make the fuel for nuclear power plants, have more than doubled.

__Up in the air...__ It’s a pesky paradox for US airlines: flight demand for everything from domestic beach weekends to European tours is soaring heading into the summer travel season. But so are airlines’ operating [costs](https://www.reuters.com/business/aerospace-defense/us-airline-demand-costs-soaring-earnings-kick-off-2022-04-12/), like labor and fuel, which spiked 30% over the past month. Airlines have [raised](https://www.wsj.com/articles/airfares-jumped-nearly-11-in-march-from-prior-month-11649803255) fares in a push for profitability, but so far, vacay-hungry fliers don’t seem deterred. __[Delta](https://robinhood.com/stocks/DAL)__ said last week that it became profitable again in March. We’ll see if __[United](https://robinhood.com/stocks/UAL)__, __[American](https://robinhood.com/stocks/AAL)__, and __[Spirit](https://robinhood.com/stocks/SAVE)__ follow suit when they report this week.

- __[Throwback](https://snacks.robinhood.com/newsletters/jtHnqwq8xydDjbgiulBNB/articles/52RH4YD9VAEjyTWHTDlDNR/):__ Time to limber up: __[Nintendo](https://robinhood.com/stocks/NTDOY)__ is reviving its old “Wii Sports” game for its newer Switch console, banking on the appeal of lo-fi, motion-controlled nostalgia over ultra-immersive AR.
- __[Sneaky-flation](https://snacks.robinhood.com/newsletters/jtHnqwq8xydDjbgiulBNB/):__ Companies are getting creative in handling inflation: __[Pepsi’s](https://robinhood.com/stocks/PEP)__ shrinking packaging to mask price hikes, __[GM’s](https://robinhood.com/stocks/GM)__ ditching heated seats, and __[Hilton’s](https://robinhood.com/stocks/HLT)__ nixing daily housekeeping. 
- __[Upstream](https://snacks.robinhood.com/newsletters/aHxrhlzudIs7bopZbJSGR/articles/jw8WzXcTXZhgCC7cyV676/):__ __[Warner Bros. Discovery](https://robinhood.com/stocks/WBD)__ is Hollywood’s newest streaming heavyweight: after last week’s $43B media merger, HBO hits like “Euphoria” and Discovery classics like “Shark Week” are under the same roof.

Meta reveals hefty metaverse-monetization plans, a bold risk that could alienate “creators”

The average tax refund is set to top $3,400 this year, nearly 14% higher than last year

👾 Metaverse money

__Plus isn’t always positive…__ CNN+ is off to a rough start. The network that invented cable news launched its $6/month subscription streaming service two weeks ago. It went live days before CNN’s parent [merged](https://snacks.robinhood.com/newsletters/aHxrhlzudIs7bopZbJSGR/articles/jw8WzXcTXZhgCC7cyV676/) with Discovery to form __[Warner Bros. Discovery](https://robinhood.com/stocks/WBD)__, and it raised [questions](https://www.axios.com/cnn-plus-cuts-warner-brothers-discovery-1be0ac3a-6952-4af0-b8e2-03dd6ae0839c.html) that the launch may’ve been rushed. Sure enough, early numbers don’t look good:

- __Tiny viewership:__ CNN+ is said to have fewer than 10K daily viewers, making its goal of 2M subscribers in its first year seem far-fetched. __[Disney+](https://robinhood.com/stocks/DIS)__ got 10M subs on its *first day*.
- __Limited programming:__ The app does *not* have live news (more on that in a sec). It *does* have a Jake Tapper-hosted book club and a show about Anderson Cooper navigating parenthood.
- __Big cuts:__ Execs are reportedly planning to slash hundreds of millions from the project’s budget, which was originally $1B.

__Stuck in the carriage…__ As more consumers ditch cable, media OGs have repackaged their content in apps to appeal to the cord-cutting crowd. Discovery+, Disney+, and HBO Max offer the programming those brands are known for — *plus* extra content (hence all the + signs). But CNN can’t include live news in its app because of “carriage contracts.”

- __Carriage contracts__ give cable giants like __[Comcast](https://robinhood.com/stocks/CMCSA)__ and __[AT&T](https://robinhood.com/stocks/T)__ exclusive rights to live news from outlets like CNN — and prevent simulcasts on apps.
- __Cable sold separately:__ If you subscribe to CNN+, you don’t actually get CNN. In contrast, HBO Max subscribers get *all* HBO shows and then some.

Can CNN’s A-Team get people to pay for streaming news? (Slaven Vlasic/Getty Images)

Nonplussed

__Streaming is fighting subscription fatigue…__ For news junkies who already pay for cable — or cord-cutters who pay for 12 different TV apps and don’t know Chris Wallace from Chris Hemsworth — CNN+ may feel unnecessary. One possible solution: bundling. Many analysts expect CNN+ to get bundled with other WBD apps like HBO Max and Discovery+ to attract subscribers.

CNN’s new streaming service is reportedly pulling in fewer than 10K daily viewers, and it’s raising concerns that cord-cutters won’t pay for news

__A DIY dilemma…__ [Millions](https://www.wsj.com/articles/etsy-sellers-strike-as-site-ramps-up-to-battle-amazon-11649681740) of small-biz merchants use [Etsy’s](https://robinhood.com/stocks/ETSY) ecommerce platform to sell everything from embroidered crewnecks to hand-sculpted vases. Now thousands of those vendors are on strike, closing up their shops for the week. They’re protesting transaction fees that are going from 5% to 6.5%. Just three years ago fees were half that. 

__Blinged-out face masks…__ circa: 2020. Etsy was the [go-to](https://www.wsj.com/articles/etsy-sellers-strike-as-site-ramps-up-to-battle-amazon-11649681740) marketplace in the early days of the pandemic, when mask scarcity at major retailers forced consumers to go the homemade route. As a result Etsy saw record profits and was the S&P’s [second-best-performing](https://snacks.robinhood.com/newsletters/1huKaRyrqLQlWLkXap0P29/) stock in 2020 (after __[Tesla](https://robinhood.com/stocks/TSLA)__). But like other pandemic thrivers, sales are starting to cool as shoppers return to their pre-Covid routines and shopping habits. Now Etsy’s execs want to __[Amazon](https://robinhood.com/stocks/AMZN)__-ify the biz by widening its appeal: 

- __Etsy's CEO said it’s competing__ against some of the biggest retailers and needs to hike fees to reinvest in elements of its core biz, such as speeding up response times to sellers. 
- __Etsy’s sellers have complained__ that the rapid growth has also attracted a flood of wholesale and mass-produced vendors — which is against company policy.

Crafty

__Etsy risks losing what made it special…__ its sellers. Etsy now aspires to be the first place you go to shop online. But those Amazon-esque ambitions conflict with its original mission of providing a platform for artists, arts-and-crafts folks, and their customers. The tension playing out between Etsy and its sellers suggests that as it aims for a bigger piece of the e-commerce pie, the mission may have to change.

Etsy sellers go on strike, protesting the Amazon-ification of the niche marketplace

CNN+ is struggling, raising doubts about demand for streaming news

Interns are much less sold on remote work than seasoned employees, with 70% viewing it negatively