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

ICYMI

Highlights from last week...

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

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

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

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


Down

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


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

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

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


Zoom Out

Stories we're watching...

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

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


Highlights from last week...

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