🏆 FB's $1T win
![$1 trillion company launch party [Morsa Images via GettyImages]](https://cdn.robinhood.com/static_content/mwphzyq69oso/en-US/assets/files/1vhxHxEXuFsEJMU5TryBR8_1_GettyImages-522730503.jpg)
Hey Snackers,
Call it a corporate wardrobe malfunction — Shares of Burberry fell on word its CEO was quitting to join rival Ferragamo. Sometimes you just want a new look.
Stocks are enjoying fresh record highs midway through 2021. And today’s Facebook news is a key reason stocks popped on Monday.
Judge dismisses FTC case against Facebook. But the victory could motivate the social giant’s foes in Congress
Facebook vs. many government lawyers… The FTC and 46 states sued Facebook back in December, arguing it unfairly maintained its monopoly status (in social media, DMs, and likes/comments) by crushing competition and buying rivals. The government asked that Facebook unwind Instagram and WhatsApp, separating them as different companies.
- Facebook’s lawyers filed a motion to dismiss, fearing an expensive legal fight and a heartbreaking goodbye to Insta.
- Yesterday, the judge granted the dismissal.
But, the judge critiqued the government’s complaint, not the case... The judge said the government’s complaint failed to identify an actual violation of antitrust law. “Legally insufficient” were his exact words about the evidence. The judge also gave the government a chance to amend its complaint within 30 days.
- That didn’t temper Wall Street joy... FB surged 4% to a record high. Add up all of FB’s stock today, and it’s worth more than $1T. The $1T club includes Apple, Microsoft, Saudi Aramco, Amazon, Google, and now – Facebook.
FB won the battle, but there could still be a war... Last week, a House Committee advanced six bills that would crackdown on what many in Congress have called unfair play by tech giants. Yesterday, a federal judge said that existing antitrust law — which was written 100 years ago — doesn’t paint Facebook as doing anything wrong. That gives FB some short-term breathing room, but could motivate Congress to change antitrust law. 21st century tech requires 21st century antitrust laws. New talking points could be coming.
Honda finally announced its first EV — But someone else is making the car
Throwback to 2006… Honda’s stock is at the same place it was 15 years ago. The Japanese car legend has been coasting in neutral, without an electric or self-driving plan — Until now. Honda just announced its first fully electric car (“The Prologue”) and plans to be 100% electric in North America by 2040 (FYI: Nothing excites car shoppers like a literary reference in a vehicle name).
But one weird thing... Honda’s not building the new Prologue — General Motors is taking care of that. This goes back to a “strategic alliance” announced last year. But Honda’s kind of acting like Robin saying they’re cofighting crime with Batman.
- Awkward: Honda’s first electric car will be pumped out of GM’s Mexico plant.
- Awkwarder: Even its higher-end Acura electric will come from GM’s Tennessee plant.
- Awkwardest: Honda says it has designed the “exteriors and interiors” — But GM’s making the batteries and powertrain, and running the assembly.
Is it an alliance or a dependence?... So far, it’s not clear if GM is teaching Honda how to drive electric, or if GM is in the process of it slowly taking over. Honda claims it won’t rely on GM forever and will make its own Prologue after 2024. But Honda is also in the middle of a 15-year stretch of stagnation, without electric or fully self-driving mojo. So GM could be helping Honda complete the transition to 100% electric. Or maybe this “alliance” could develop into a longer-term dependence.
What else we’re Snackin’
- Smoked: E-cigarette-maker Juul agreed to pay North Carolina $40 million and change its business practices to settle a lawsuit alleging it targeted teens with its marketing.
- Coin: Cryptocurrency exchange Binance, the world’s largest crypto exchange by trading volumes, has been banned from running in the UK by the country’s markets regulator.
- Vax: Mixing first and second doses of Pfizer’s and AstraZeneca’s mRNA Covid-19 vaccines could generate strong immunity from the virus, according to early results from an Oxford University study.
- Budget: Medicare, the federal health insurance program, could be forced to restrict access to a new, $56,000 a year Alzheimer’s drug from Biogen to manage costs.
- Scored: The NCAA signaled it will let athletes make money from their name, image, and likeness, as soon as July.
- Spree: Rising home prices have led some Fed officials to call for reducing mortgage-bond purchases sooner than Treasury bonds, as part of a plan to scale back easy-money policies.
Tuesday
- Earnings expected from FactSet
Authors of this Snacks own shares of: Apple and Amazon
ID: 1702803