- __[Zuck](https://snacks.robinhood.com/newsletters/4Tr1pVtVj5AQBMTXX7CQ0g/articles/1CI1mRFvVBDI35dSkciBqP/):__ __[Meta](https://robinhood.com/stocks/META/)__ shares popped 26% after better-than-feared quarterly revenue, despite ad-pocalypse. Zuck said 2023 is Meta’s “year of efficiency” (sorry, metaverse). It expects to spend less after slashing 11K+ employees.
- __[UnPod](https://snacks.robinhood.com/newsletters/hVxJ5P0UXNj7GiarHRYHR/articles/5upo6arBMCyFdOxzmT6V0u/):__ __[Spotify](https://robinhood.com/stocks/SPOT/)__ popped after reporting record user growth, driven by podcasts. But its quarterly loss widened to $250M and the “growth at all costs” pod-palooza could be over as the streamer chases profitability. 
- __[Cody](https://snacks.robinhood.com/newsletters/4BQOCvfFjpmfTUqq7GuMPh/articles/3oSTcViaA2PXLCPreOXfnT/):__ __[Peloton](https://robinhood.com/stocks/PTON/)__ shares surged 28% after its pivot from hardware to subscriptions helped spin down quarterly losses. While equipment sales fell, revenue from its on-demand fitness classes grew 22%.

ICYMI

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__Pump it up…__ Energy powerhouses pulled in ginormous profits last year, continuing a multiyear streak of blockbuster earnings. Last week, __[Exxon](https://robinhood.com/stocks/XOM/)__ reported a historic $56B profit for 2022, the biggest for *any* Western oil biz ever. __[Shell](https://robinhood.com/stocks/SHEL/)__ also rang in a slick annual profit, which was *$10B* higher than its last record, in 2008. Meanwhile, __[Chevron](https://robinhood.com/stocks/CVX/)__ pulled in a record $35B, but fell short of expectations. Up next: __[BP](https://robinhood.com/stocks/BP/)__, __[TotalEnergies](https://robinhood.com/stocks/TTE/)__, and __[Valvoline](https://robinhood.com/stocks/VVV/)__ report this week.

- __Full tank:__ Rather than ramping up production, oil giants are investing in themselves — and their shareholders. Last week Chevron agreed to buy back a whopping $75B of its shares, and last year Exxon tripled buybacks to $30B. 
- __Big crank:__ Western oil biggies are expected to have earned a combined $200B in profit last year, reigniting talks among US lawmakers about imposing a windfall tax on their excess earnings.

__Drilling down…__ For much of last year, oil giants benefited from rising prices as Russia’s war on Ukraine strained supply and demand rebounded while production stayed tight. But in the last quarter of the year, gassy growth slowed as prices fell. This year, big oil’s profit boom is expected to cool. Pump prices have dropped 30% from last year’s highs, as the global economy slows and recession jitters curb demand. Still, with China’s reopening, analysts predict oil could climb as high as $120/barrel (China’s the world's second-largest oil consumer behind the US).

Pump Anxiety flashbacks (Win McNamee/Getty Images)

Slick

__It could be big oil’s big finale…__ before the fall. Last week, oil titan __BP__ said it expects renewables will make up 35% to 65% of the energy market by 2050, up from just 10% today. The pivot from fossil fuels to green energy could be accelerated by the “energy trilemma” (affordability, security, sustainability). Last year, clean-energy investment hit a record $1T, matching fossil-fuel investment for the first time. It’s expected to hit $2T by 2030.

Oil giants are (still) raking in historic profits, but it could be a grand finale as green energy ramps up

__Closing the gap…__ As America’s fastest-growing group of entrepreneurs, Black women are increasingly [leaving](https://snacks.robinhood.com/newsletters/349vN9seEikUONVdVtRvP0/articles/uMbh670ekDujd6duoyTol/) corporate roles to launch their own companies — starting businesses at 4.5X the rate of the overall population. But while the rate of Black entrepreneurship is high, bias and funding gaps pose roadblocks to growth. As of January 2022, just 4% of Black businesses were still open after 3.5 years, compared to the national average of 55%. A key issue: Black startups, especially those run by women, tend to have less access to funding.

__Spot the bots…__ Last week __OpenAI__ announced a $20/month premium subscription for ChatGPT. More quietly, it [released](https://www.wsj.com/articles/chatgpt-creator-releases-tool-to-detect-ai-generated-text-calls-it-unreliable-11675204820) a tool that detects AI-generated text. It could be especially useful for teachers and employers looking to spot bot submissions — but OpenAI said it fails 75% of the time (womp). Meanwhile, an app called GPTZero uses __ChatGPT__ against itself to detect AI. There’s growing concern over the use of genAI tools for cheating, plagiarism, and spamming. AI detection tools could be key to addressing these issues — but first they’ll have to get reliable. 

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__Rolling in Corollas…__ __Toyota__ reports earnings this week along with __Nissan__ and __Honda__. Toyota has been the world’s top-selling carmaker for three years straight, but auto sales in general have been losing traction. Last year was the worst for new-car sales in 10+ years as production issues hit supply (picture: record-low inventories). Meanwhile, higher interest rates are making car payments pricier, which could ding demand. But while __Ford__ reported weak #s last week, Chevy maker __GM__ infused hope with expectation-smashing earnings and gave strong guidance for the year.

__KenTacoHut earnings…__ __Yum Brands__, the owner of fast-food faves like KFC, Pizza Hut, and Taco Bell, is expected to deliver earnings this week — along with fast-casual icon __Chipotle__. Last week, __McDonald's__ [dropped](https://snacks.robinhood.com/newsletters/hVxJ5P0UXNj7GiarHRYHR/articles/4MlfzoaeNBLMSQ0Pc0ru6y/) tasty sales growth as its inflation-friendly prices and cult fave menu items kept McCustomers coming. But while McD’s prices *dropped* last year, Chipotle and Yum kept hiking. Analysts expect same-store sales growth, but price hikes might be dimming appetites. Meanwhile, rising avo prices are threatening Chipotle’s “burrito season” profits. 


Events

Coming up this week

Oil giants rake in historic profits, but it could be a grand finale as green energy ramps up

Dow Jones

S&P 500

Nasdaq

Bitcoin

For the first time in Super Bowl history, two Black quarterbacks are set to face off

🛢️Big oil’s profit peak?

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