- __[Stuck](https://snacks.robinhood.com/newsletters/1UaryfLlNYafGqkVnZiU00/articles/4pzAi33V9xaok1Q7KIh3Rt/):__ __Amazon__'s $1.7B deal to buy Roomba maker __iRobot__ is gathering dust as the FTC gets tougher on mergers. As antitrust gets anti-er, companies might think twice before snagging startups.
- __[Oops](https://snacks.robinhood.com/newsletters/Ku8oHOygOUFBElNxmnQHt/articles/2e3J0mmmxTJv7LWksc4Fd7/):__ __Samsung__ workers reportedly leaked secret company info while asking ChatGPT for help. Nearly half of companies (and the Biden admin) are exploring guidelines for AI-chatbot usage.
- __[Volt](https://snacks.robinhood.com/newsletters/3ITpC4k9Ogb756gLlOX7Ht/articles/3QQUl0m7n653lLXE6UcpIp/):__ __Tesla__'s building a Shanghai “Megapack” plant to build more energy-storage solutions for businesses and homes. Rising energy demand could fuel Elon’s biz as EV growth slows. 


ICYMI

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__’Tis the season…__ but it may not be so jolly. Earnings season is upon us, and expectations aren’t high for the first-quarter stocking. Quarterly profits from S&P 500 companies are expected to have dropped 6.8% from last year — that would be the sharpest earnings decline since lockdown-era 2020 and the second straight quarter of falling profit. Meanwhile, analysts expect that sales inched up a measly 1.8%. But the kickoff to earnings season pleasantly surprised: 

- __Bank buster:__ On Friday __JPMorgan Chase__ and __Citi__ reported stronger-than-expected #s, with JPM posting record revenue and a 50% profit surge on higher interest rates. 
- __Stocking stuffer:__ Despite less-than-stellar earnings expectations, the S&P 500 is up 8% for the year, while the techy Nasdaq has gained 17%. 

__Growth at all costs < profit at *less* cost…__ Soaring interest rates and sticky inflation have eaten into profits and cooled demand. Cue: companies are shifting away from growth-driven investments to focus on cost-cutting profit boosters. It’s “the year of efficiency,” __Meta__ CEO Zuck says. Corporate titans are tightening their belts to prep for a downturn. Last week the Fed said it expected that the banking-crisis fallout would tip the US into a recession this year. 

- __Cold-brew cuts:__ In addition to sweeping layoffs, companies like Meta, __Goldman Sachs__, and __Salesforce__ have cut cushy employee perks like barista-brewed coffee. __Google__ is swapping pricey MacBooks for Chromebooks. 
- __Robo-savings:__ Companies like __Disney__ and __Microsoft__ are backtracking on big bets like the metaverse. Instead, corporations are investing in things that could reduce costs long term (think: __Walmart__ and __Amazon__ leaning into warehouse automation). 


Busy week on Wall Street (Mario Tama/Getty Images)

__“How low will you go” is the question…__ on investors’ lips. They’ll be listening for guidance about how much lower corporate profits could fall. If companies signal further declines ahead, this year’s rally could reverse. But if cost-cutting measures start to show up on earnings reports as improving profits, markets could be pleasantly surprised.

Earnings-season forecasts are dim for America’s biggest companies as profits get pressured

__Biscoff cookies en route to Cabo…__ __United Airlines__ and __Alaska Air__ may have reason to join the spring-break party when they report this week. While US airline fares are up 17% on the year, travel demand is still taking off. The TSA's expecting a record-breaking year for flights, and analysts think this may be airlines' busiest spring ever. Last week __Delta__ unloaded a quarterly loss, but projected strong growth and profit ahead. It expects record advance summer bookings as consumers prioritize [delayed YOLO](https://snacks.robinhood.com/newsletters/1UaryfLlNYafGqkVnZiU00/articles/37SFbEAZ3QyWYdncUFOaA1/) experiences. 

__It’s finally here…__ Tuesday is the deadline to file tax returns for most Americans (many residents of CA, GA, and AL have until October). And it may be the last go-around for what you could call “IRS 1.0.” Over the next two years, the IRS will use billions in federal funding to upgrade its ’60s-era tech and hire 20K new employees. For you: faster returns and shorter phone wait times. Next tax year, the IRS will require anyone earning $600+ on payment apps (for goods and services — not from splitting checks) like Venmo to report it. 

Events

Coming up this week

__An apple a day…__ keeps the bills away. More Americans could see a boost in their credit scores after credit agencies scrapped 70% of all medical debt in collections. Last year, __Experian__, __TransUnion__, and __Equifax__ removed already paid medical debt from millions of credit reports. Last week they took it a step further by removing all *unpaid* debt up to $500. Nearly a tenth of US adults owe at least $250 in medical debt, but many don’t notice until it dings their credit score. The move could provide relief at a time when US households carry record debt. 

__Still watching…__ Votes will be counted today to see if the Writers Guild of America will strike in the event that a new contract agreement isn’t reached with studios by May 1. If the WGA strikes, we could see a repeat of the last screenwriting stoppage in 2007, which lasted 100 days. On the table: shortened TV seasons, cancellations, and a bump in unscripted content (imagine: more “Love Is Blind”). A strike would be a headache for streamers who are hungry for the next “Succession.” They’re expected to splurge $23.4B on scripted titles this year.

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