__Trump’s back...__ with a SPAC? Former President Trump wants to take on Big Tech and “create a rival to the liberal media” with his *own* biz: __Trump Media & Technology Group__. ICYMI: Trump’s still barred from __[Twitter](https://robinhood.com/stocks/TWTR)__, __[Facebook](https://robinhood.com/stocks/FB)__, and YouTube. Yesterday, Trump’s company [said](https://www.cnbc.com/2021/10/21/trump-linked-spac-shares-soar-more-than-40percent-on-news-of-social-media-deal.html) it was going public by merging with __[Digital World Acquisition Corp.](https://robinhood.com/stocks/DWAC)__ (aka DWAC), a special purpose acquisition company (aka SPAC — or blank check company). 

- __DWAC shares more than *4X’d*__ in value yesterday. It became the most traded stock on the Nasdaq and NYSE, changing hands 470M+ times. 
- __Trump’s company plans to launch a social network__ called Truth Social next year (it [looks](https://rumble.com/vnzzot-truth-social.html) a lot like __Facebook__). 
- __Also in the works:__ a self-described “non-woke” __[Netflix](https://robinhood.com/stocks/NFLX)__ rival called TMTG+, a __CNN__ competitor called TMTG News, and an __[Amazon](https://robinhood.com/stocks/AMZN)__ cloud rival.
- __Few deets:__ The only other TMTG employee announced was Scott St. John, former producer of “Deal or No Deal.”

__The Trump hype machine…__ Trump has used his name to promote other businesses, like his casinos, hotels, and Trump University. But his biz record is financially and legally questionable. His only previous public company, __Trump Hotels & Casino Resorts__, lost money every year until it went bankrupt (one of his six bankruptcies). And the __Trump Org__ and its CFO were recently charged with 15 felony counts, including tax evasion.

DWAC

__SPACs attract big names…__ Companies that go public via a SPAC sometimes face less oversight than those that IPO, which can help raise cash more quickly — especially when there’s a big name behind them. Other celebs like Shaq, Serena Williams, and Jay-Z have launched their own SPACs. Meanwhile, the SEC [warned this year](https://www.investor.gov/introduction-investing/general-resources/news-alerts/alerts-bulletins/investor-alerts/celebrity) that it’s “never a good idea to invest in a SPAC just because someone famous sponsors or invests in it.” 

“The Trump SPAC” quadruples as his company vows to take on Big Tech

__Elon(g) profit streak…__ nine quarters long, to be exact. __[Tesla](https://robinhood.com/stocks/TSLA)__ notched another sales and delivery record last quarter. Despite supply-chain crunches and a global chip shortage, Tesla has been resilient compared to other carmakers, and still plans to boost deliveries by 50% each year.

- __241K:__ The number of Teslas delivered last quarter. The lower-priced Model 3 and Model Ys made up a whopping 96% of the haul (sorry, S and X). 
- __$1.6B:__ Tesla’s profit more than 4X’d from the same quarter last year, despite rising material and labor costs (#flation). 

__A Muskular effort...__ Tesla wasn’t immune to supply struggles: Its gig factories still aren’t operating at full capacity, which means longer delivery times and [slower](https://www.wsj.com/articles/tesla-poised-for-record-quarterly-earnings-on-supply-chain-resilience-11634722200?mod=newsviewer_click) product rollouts (new Cybertruck ETA: *2023*). Still, Tesla owns multiple stages of its own supply chain (it’s “vertically integrated”). Think: Tesla makes the [machine](https://evannex.com/blogs/news/elon-musk-tesla-is-absurdly-vertically-integrated-compared-to-other-auto-companies) that makes the Tesla. That's made it more resilient during the pandemic than many other carmakers. 

- __[GM’s](https://robinhood.com/stocks/GM)__ US car deliveries dropped to 446K last quarter, down one-third from a year ago, because of supply disruptions. 
- __[Ford](https://robinhood.com/stocks/F)__ slashed production of its best-selling F-150 pickup truck and other profitable cars — again.
- __Chip shortages could cost automakers $210B__ this year. Tesla avoided some of the drama by manufacturing some of its *own* chips for its latest models.

A Musk-ular quarter [skynesher/E+ via Getty Images]

Muskular

__Sometimes fewer products can mean more profits…__ especially during a global supply shortage. Legacy car manufacturers like GM and Ford produce numerous models on a larger scale. Meanwhile, Tesla and Chinese EV rival __[Nio](https://robinhood.com/stocks/NIO)__ offer just a handful, relying on a leaner supply chain to meet demand. Like Tesla, Nio also posted record deliveries last quarter, partly thanks to China’s investment in domestic production.

Tesla drops record profits thanks to big deliveries and supply-chain shortcuts

Trump’s stock surge, Tesla’s record quarter, and more of today’s top Snacks stories

Dow Jones

S&P 500

Nasdaq

Bitcoin

📣 Trump’s stock surge

__Return of the "try me" moisturizers...__ __[Ulta](https://robinhood.com/stocks/ULTA)__ is Sephora's less swanky rival, with 1.3K US stores compared to Sephora’s 2.7K global stores. Ulta shares have dropped 13% since its investor day on Tuesday. Its three-year growth outlook [missed](https://www.cnbc.com/2021/10/19/ulta-beauty-to-focus-on-speedy-delivery-as-some-pandemic-habits-stick.html) expectations, though it expects to outpace the rest of the beauty industry.

- __Beauty sales plunged last year,__ as face masks replaced lip gloss and __[Zoom](https://robinhood.com/stocks/ZM)__ face replaced foundation. Meanwhile, consumers became even more digitally savvy. Now...
- __Beauty is glowing up,__ as we refresh our makeup bags instead of refreshing __[Netflix](https://robinhood.com/stocks/NFLX)__. Last quarter, Ulta's sales surged 56% from 2020, surpassing *pre-pandemic* levels.

__TikTok blush...__ As the shift to digital continues, Ulta is following Sephora’s lead and rolling out same-day delivery. But IRL browsing is key, too: Ulta customers who shop *both* online and in stores typically spend 3X more than online-only shoppers. So Ulta plans to open 50 new stores a year, and have 100 mini shops inside __[Target](https://robinhood.com/stocks/TGT)__ this year. But the juiciest update from Ulta:

- __“Digital store of the future”:__ Ulta just [invested](https://wwd.com/beauty-industry-news/beauty-features/the-future-of-ulta-beau) in AI company __Adeptmind__, which aims to power a new personalized search engine for a futuristic shopping experience.
- __Think:__ Tailored recs and content-driven product discovery on Ulta’s platforms. The goal: to "seamlessly merge content with commerce.” About that...
- __Ulta’s launching a media platform__ that partners can use to advertise on Ulta’s site and app. A new editorial team will create “culturally relevant” content, including beauty tips.

Brows(e)

__*Being* a social hub > using a social hub...__ Product discovery and spending have shifted to TikTok and Insta. But instead of only advertising on social platforms, Ulta wants to create its *own* social commerce hub. That way Ulta — *not* Insta — will gain valuable browsing data that it can use to sell targeted ads to brand partners. By making its digital sales channels more like content-focused social apps, Ulta could unlock a big new revenue stream.

Ulta Beauty wants to steal TikTok’s and Insta's thunder with "the digital store of the future"

__It’s getting Messi…__ A breakup between a soccer power couple could be coming. Video-game giant __[Electronic Arts](https://robinhood.com/stocks/EA)__ (EA) and soccer org FIFA have released a new FIFA game together for 28 years, making FIFA the best-selling sports-game franchise *ever*. Fans love that FIFA lets them play with friends while rooting for their favorite teams. But EA is reportedly considering [walking out](https://www.nytimes.com/2021/10/13/sports/soccer/ea-sports-fifa.html) on its longtime teammate.

__Trouble in the FIFA-verse…__ EA has made $20B+ from the FIFA franchise over the past 30 years or so, and FIFA currently makes $150M in yearly licensing fees from EA. But their 10-year contract ends after next year’s World Cup in Qatar, and they can’t agree on a new deal. Here’s why:

- __Putting the “fee” in FIFA:__ FIFA wants to *double* the yearly licensing fee it charges EA to use its name.
- __Open relationship:__ EA wants *exclusive* rights to develop FIFA extensions like arena gaming tourneys and NFTs, but FIFA wants to *limit* EA and launch its own ventures.
- __Uneven split:__ FIFA, a nonprofit, made more than *half* its nearly $270M in revenue last year from its EA deal. But EA, which is valued at $40B, made $5.5B last year distributing *several* hit games like Madden, The Sims, and Apex Legends.
- __New partners:__ EA has already lined up 300+ partners from national leagues to players’ unions, and filed to trademark “EA Sports FC.” Now, FIFA could start looking for a new gaming partner like __Epic Games__ or __[Activision Blizzard](https://robinhood.com/stocks/ATVI)__.

A FIFA by any other name would play as sweet [Dmytro Aksonov/E+ via Getty Images]

Breakup

__You need the name to *join* the game…__ But you only need loyal fans to *keep* playing. EA leveraged FIFA’s brand to generate buzz and build a huge global fan base: More than 31M people have played FIFA 21 since it launched last fall. But EA’s games *themselves* are what keep fans plugged in. Most sports fans don’t abandon their teams when they trade star players; EA hopes customers show similar loyalty.

FIFA and EA might break up after 28 years — but EA could keep the die-hard fans

FIFA’s gaming breakup, Ulta takes on TikTok, and more of today’s top Snacks stories

⚽️ FIFA might break up with EA

__*Goodbye, my couch pizza*...__ A loyal pandemic friend. __[Domino's](https://robinhood.com/stocks/DPZ)__, the Earth's largest pizza company, just [broke](https://www.wsj.com/articles/dominos-same-store-sales-decline-breaks-growth-streak-11634217150?mod=hp_lista_pos4) its 10-year hot streak: Its US same-store sales *fell* for the first time in over a decade, ending 41 straight quarters of cheesy growth.

- __Supply is chained:__ Supply and labor shortages forced Dom's to reduce hours as it hunted for more drivers. FYI: Fast-food prices are up nearly 7% from last year.
- __Date night's back:__ And it doesn't involve a box of BBQ cheesy bread. With IRL eateries back open, the pizza-delivery surge has cooled. 
- __Americans = unstimulated:__ Dom’s partly blamed its US sales slump on reductions in stimulus payments, which boosted spending last year.

__Not as stale as it sounds...__ Compared to last year's pandemic pizza boom, Dom's US store sales were down 2%. But compared to the same quarter in 2019, US sales were *up* nearly 16%. Meanwhile, international sales growth boomed 20% — Dom's *111th* straight quarter of non-US growth. Here's how Dom's is keeping its strategy crispy:

- __Tech focus:__  Dom's intro'd online ordering for carryout and a delivery app with real-time order tracking.
- __Speed central:__ It launched designated lanes to cut carryout wait times, and a two-minute guarantee for car-side delivery.
- __Surprise "frees," not fees:__ Instead of surprise fees, Dom's launched a $50M campaign to give one in every 14 digital delivery orders a surprise free item, like lava cake.

Crispy

__Direct competition isn't always correct competition...__ Dom's direct competitors are chains like Pizza Hut and __[Papa John's](https://robinhood.com/stocks/PZZA)__. Its real competitors: online-ordering apps like __Grubhub__, __[DoorDash](https://robinhood.com/stocks/DASH)__, and Uber Eats. Dom's is one of the few big chains that refuse to work with outside delivery apps, so it has full control over its service. Dom's said consumers were irritated about all the fees charged by delivery apps. That's why it focused on tech, speed, and delivery freebies last quarter.

Domino’s 10-year hot streak is over, but its digital strategy is extra crispy 

__The AirPod doesn’t fall far from the iPhone…__ And we *still* can’t find it. __[Apple](https://robinhood.com/stocks/AAPL)__ unveiled a bushel of redesigned classics at its second product event in two months — including updated AirPods, revamped MacBooks, and new HomePods.

- __Gone by popular demand:__ Apple listened to buyers and ditched unliked features such as the MacBook’s touch bar (sorry, emojis) and AirPods’ rubber tips. 
- __Homemade chips:__ The new MacBooks feature improved Apple-made M1 chips, which were first intro’d to the Mac lineup last year. The new Macs are said to be 70% faster. 
- __Colorful colors:__ Apple rolled out blue, yellow, and orange HomePod Mini speakers, which previously came in only white and gray.

__iPad or hardcover book?...__ Unwrap to find out. Apple’s updated gadgets hit shelves next week, meaning new iPhones, Watches, Macs, *and* AirPods will be out in time for the profitable holidays. Case in point: Apple’s $29B in profits last holiday quarter were the highest of *any company — ever*. But this year, Apple and other retailers are sweating over production due to shipping delays and chip shortages. So Apple’s new iProducts could serve *another* purpose: Push shoppers to buy *older-but-in-stock* iPhones and AirPods, whose prices have just been reduced.

Found an AirPod and an earplug [JGI/Jamie Grill via Getty Images]

AirProfit

__Essential tech = profitable tech…__ Apple crammed iPhones full of features that make customers feel they *need* pricey phones to navigate, take good pics, and stay connected. AirPods are the next luxe product Apple wants to make *indispensable*. Apple plans to stuff AirPods with health-focused features — like hearing enhancement, body-temperature reading, and posture monitoring — that conveniently integrate with its expanding fitness and health platforms.

Apple’s holiday iGoodies: Goodbye touch bar, hello health-monitoring AirPods

Apple’s new iGoodies, Domino’s freebies, and more of today’s top Snacks stories

👂 Apple’s new iGoodies

__Back to the futures...__ Big day for crypto: Today the first-ever __[Bitcoin](https://robinhood.com/crypto/BTC)__-linked ETF is [expected](https://www.cnbc.com/2021/10/18/first-bitcoin-futures-etf-to-make-its-debut-on-the-nyse-tuesday-proshares-says.html) to start trading on the New York Stock Exchange. Refresher: [ETFs](https://learn.robinhood.com/articles/QkpPOCYYd2fMe76837dvG/what-is-an-exchange-traded-fund/), or exchange-traded funds, traditionally track an index (like the [S&P 500](https://learn.robinhood.com/articles/7kFFEUv46vmMCmMfLuNiRX/what-is-the-s-and-p-500/)), a sector (such as tech), a commodity (like oil), or other assets. In this case, the new ETF will track Bitcoin *futures*. It’s the first Bitcoin futures ETF that the SEC will allow on the market. Breaking it down:

- __Futures, aka futures contracts,__ are agreements to buy or sell an asset in the future at a specific price. In this case, futures let investors speculate on BTC's future price.
- __Because this ETF tracks futures,__ it *doesn't* invest directly in Bitcoin — and its performance could differ from BTC's actual price. 

__So much future...__ The launch of this ETF is a milestone for the crypto industry, which has struggled to gain acceptance in the tightly regulated financial space. About [14%](https://www.gemini.com/state-of-us-crypto) of people in the US — mostly high-income men — own cryptocurrency, according to Gemini’s 2021 “State of US Crypto” report. BTC futures could make crypto more accessible to a wider base who might not have invested in crypto. 

- __BTC exposure, minus the BTC:__ Futures give investors exposure to Bitcoin without having to hold or exchange the crypto. No Bitcoin wallet required.
- __Regulated alternative:__ BTC futures are traded on a regulated exchange, which may offer some investors more confidence than directly investing in unregulated Bitcoin.
- __Wider access:__ Investors with regular brokerage accounts can access BTC futures ETFs without having to create an account with a crypto provider.

Future

__The next step in crypto "mainstreamification"...__ could be futures. Two-thirds of US adults who don't own crypto are "[crypto-curious](https://www.gemini.com/state-of-us-crypto),” according to Gemini. Three additional Bitcoin futures ETFs are expected to launch this month, with others in the pipeline. What the crypto industry ultimately wants: funds that invest *directly* in crypto. So far, the SEC has shot all of them down.

The first Bitcoin-linked ETF could pave the way for a more mainstream future

__Avatars grow up so fast…__ Tween-favorite gaming platform __[Roblox](https://robinhood.com/stocks/RBLX)__ announced it has 43M daily users — double what it had two years ago. Roblox, which went public in March and has a $44B market cap, is like YouTube for user-generated games (think: Lego-like avatars). This year Roblox expects to pay out $500M to 1.3M content creators.

- __Wild stat:__ Last year in the US, 75% of kids ages 9 to 12 played Roblox. The platform has come under [scrutiny](https://www.wsj.com/articles/roblox-struggles-with-sexual-content-it-hopes-a-ratings-system-will-address-the-problem-11618660801) over safety issues, but has taken steps this year like launching content ratings for games and bolstering parental controls, to promote safety. 
- __FB-owned Instagram Kids__, however, got paused last month after getting backlash for its *lack* of parental controls. Experts say platforms like __[Facebook](https://robinhood.com/stocks/FB)__, Instagram, and __TikTok__ lag behind Roblox in their efforts to curb bad behavior (though even Roblox isn’t perfect).

__Adulting welcome…__ It’s not *just* young kids Robloxing. Last month Roblox said that for the first time over half its users were *older* than 13. Last week it announced several features to appeal to non-tweens and adults:

- __Realistic avatars__ offer alternatives to cartoonish characters, and 13+ gaming filters allow games catered to older players. AI-powered voice-chat features are set to roll out to older users too.
- __Limited e-merch__, which could appeal to older users interested in fashion and NFTs, will go on sale for Robux, an in-game currency bought with *actual* bucks.
- __Getting meta:__ Roblox hosts virtual concerts and brand-sponsored meeting spaces, and sees itself as a hub for an immersive “metaverse” — a digital world where kids and adults can “learn, work, play, create, and socialize.”

Morning stroll through the meta neighborhood [gremlin/E+ via Getty Images]

Roblox lays the foundations for a kid-safe “metaverse” — but it needs adults, too

Bitcoin’s futures, Roblox’s metaverse, and more of today’s top Snacks stories

🪙 Bitcoin’s futures

__Thanks for connecting...__ *Or not.* __[Microsoft's](https://robinhood.com/stocks/MSFT)__ LinkedIn is [removing](https://www.cnbc.com/2021/10/14/microsoft-to-shut-down-linkedin-in-china.html) itself from China's network. The software giant is shutting down LinkedIn in China, citing the country's intensifying pressure to censor. FYI: China was LinkedIn’s third-largest market, with 50M+ users. Microsoft plans to launch a new China-specific version of LinkedIn this year, which *won't* include social features: no ability to share opinions, news articles, or "some personal news."

- __LinkedIn was the last major American social network__ still running in China, and it’s the [biggest](https://www.wsj.com/articles/microsoft-abandons-linkedin-in-china-citing-challenging-operating-environment-11634220026?mod=djemalertNEWS) tech departure from China in years.
- __The networking site launched in China in 2014__ with limited features in order to comply with China's strict internet laws. (Refresher: Microsoft bought LinkedIn for $26B in 2016.)
- __Last year,__ LinkedIn received 42 requests from Chinese authorities to take down content, and acted on 38. Then last month LinkedIn blocked the profiles of several US journalists in China.

__Great walls of fire...__ China’s “Great Firewall” monitors and censors online. __[Facebook](https://robinhood.com/stocks/FB)__ and __[Twitter](https://robinhood.com/stocks/TWTR)__ have been blocked in China since 2009, and __[Google](https://robinhood.com/stocks/GOOGL)__ left in 2010 after declining to censor search results. This year China blocked the social audio app Clubhouse and the encrypted chat app Signal. Some savvy internet users can access Western sites through VPNs, but many don’t.

- __American tech companies aren't thrilled__ about being blocked from billions of potential users in China — even Zuck’s [Mandarin](https://www.latimes.com/world/asia/la-fg-facebook-zuckerberg-speaking-chinese-20151026-story.html) couldn’t get FB unbanned.
- __But they also face criticism in the West__ if they censor content to appease the communist government. Cue: LinkedIn’s departure. A few other examples...
- Google dropped the China-compliant search engine it was building, and __[Zoom](https://robinhood.com/stocks/ZM)__ faced backlash for shutting down a human-rights account to comply with Chinese law.

Wall

__It's a tale of two internets...__ The only way to get social in China is to get *censored* by China. The Great Firewall has created two internets operated by the world’s superpowers. For the US, China’s digital wall blocks a major business opportunity. For China, it’s hurting interest from US investors and biz partners. As China increasingly [cracks down](https://snacks.robinhood.com/newsletters/lmendgmwiqrFZ5v9KHvVo/articles/7elgOaDupMl8Er1xxvUq14/) on its *own* tech companies, US companies are becoming even more wary of making the move.

Blocked: LinkedIn becomes the last US social network to leave China as censorship intensifies

__Espresso machine delivery ETA…__ 124 days. Three (related) themes are defining earnings season for companies, from airlines to pizza chains. First, supply-chain snarls are curbing sales of retailers like __[Nike](https://robinhood.com/stocks/NKE)__, which had to close some factories despite booming demand. Second, rising materials costs have led companies like __[Clorox](https://robinhood.com/stocks/CLX)__ to lower yearly profit forecasts. Third, labor shortages are compounding both those problems, with companies like __[FedEx](https://robinhood.com/stocks/FDX)__ blaming worker shortages for lower-than-expected sales. Expect these issues to continue into the holidays.

__Catered bagels for the branch…__ Big banks reported tasty quarterly profits. Profits at consumer-focused __[Bank of America](https://robinhood.com/stocks/BAC)__, __[Wells Fargo](https://robinhood.com/stocks/WFC)__, and __[Citi](https://robinhood.com/stocks/C)__ boomed after the banks released billions in loan loss reserves set aside for defaults that never happened. A jump in credit-card spending helped Citi’s profits soar 48% from last year, while IPO and merger-palooza boosted profits at investment banking giants __[JPMorgan Chase](https://robinhood.com/stocks/JPM)__ and __[Morgan Stanley](https://robinhood.com/stocks/MS)__. Trading activity is expected to slow, so we’ll see if investment banks can keep profits pumping.


Zoom Out

Stories we’re watching...

__Cracked the dalgona candy...__ Whoops. __[Netflix](https://robinhood.com/stocks/NFLX)__ gained a whopping 36M subscribers last year while you binged “Tiger King.” But that led to subscription saturation (#subscripturation), *and slowing growth this year* as non-couch activities return. Last quarter Netflix lost 400K subscribers in North America, which now makes up just 35% of customers. Investors want to know if Netflix’s new focus on foreign shows boosted subscribers when the Flix drops earnings on Thursday. FYI: Korean thriller "Squid Game" is Netflix’s best-performing show *ever*.

__Self-driving PR...__ __[Tesla](https://robinhood.com/stocks/TSLA)__ hit another delivery record last quarter, with 240K cars. In the previous quarter, Tesla raked in $12B in sales, nearly *double* from a year ago. For reference, Chinese EV-competitor __[Nio](https://robinhood.com/stocks/NIO)__ generated over $1B in Q2. Tesla recently launched full self-driving (think: reading stop signs and auto lane change) for select drivers, even though its Autopilot feature is in the hot seat with regulators. We’ll see if Tesla can keep up the record pace and manage its self-driving woes when it rolls up with earnings on Wednesday.

ETA for “Squid Game” Halloween costume: 37 weeks [Westend61 via Getty Images]

Events

Coming up this week...

- __[Puff](https://snacks.robinhood.com/newsletters/6TFkwNsv6HEX4noFP6SOQg/):__ Vuse’s tobacco-flavored e-cig became the first FDA-approved vape. Vuse Solo got the green light by doing what Juul didn’t.
- __[Pill](https://snacks.robinhood.com/newsletters/5uDmFiCAGnQetvrB0Wj8JL/articles/4vswHrDasJzLTAbQtUvcnR/):__ Pharma giant __[Merck](https://robinhood.com/stocks/MRK)__ filed for FDA approval of its Covid pill. If approved, the first swallowable antiviral Covid drug could help cut hospitalization and death rates.
- __[Brew](https://snacks.robinhood.com/newsletters/4jcFjXipUTUzqVCym6SfG4/):__ __[Starbucks](https://robinhood.com/stocks/SBUX)__ turned 50. We’re looking at Starbs’ transformation from a small bean seller to a $131B giant that accounts for nearly half of US coffeehouses.

ICYMI

Last week's highlights...

LinkedIn leaves China, Netflix and Tesla earnings, and more of today’s top Snacks stories

👤 LinkedIn leaves China

__Looking for traction…__ 10K __[John Deere](https://robinhood.com/stocks/DE)__ workers went on strike yesterday to protest the tractor giant’s latest wage contract, which they said offered too slim a pay increase. With prices rising like “Squid Game” views (#inflation), Deere employees aren’t the only ones demanding bigger paychecks and better benefits. 

- __Frosty Flake:__ Workers at cereal maker __[Kellogg](https://robinhood.com/stocks/K)__ and Oreo maker __[Mondelez](https://robinhood.com/stocks/MDLZ)__ went on strike recently to demand better benefits, like vacation pay. Mondelez workers succeeded in getting a pay increase and a higher company match for 401(k) contributions. 
- __Temp check:__ Nurses at __Kaiser Permanente__ voted to strike this month to protest low wages and poor working conditions. 
- __Action:__ Hollywood crews plan to strike Monday if they can’t secure better benefits, hours, and workplace treatment.

__Strike while the labor market is hot…__ It’s hard out here for employers trying to hire. Job openings soared to record highs this summer, labor-force participation is stalled at pandemic levels, and 4.3M workers quit their jobs last month. Workers know they’re hot commodities, so they’re demanding higher wages, better benefits, and stronger workplace protections. They’ve already made some progress:

- __+4.6%:__ the hourly-pay increase for US workers last quarter from a year ago. __[Walmart](https://robinhood.com/stocks/WMT)__, __[CVS](https://robinhood.com/stocks/CVS)__, and __[Costco](https://robinhood.com/stocks/COST)__ are among those who upped minimum wages to $15/hour.
- __Free college tuition__ is now available to __[Target](https://robinhood.com/stocks/TGT)__ and Walmart employees. One-third of companies with 20K+ workers also plan to expand health benefits.
- __Bathroom breaks__ are now protected for __[Amazon](https://robinhood.com/stocks/AMZN)__ warehouse workers — 74% of whom said they avoided pee breaks to hit quotas. 


Bacon

__Spending power isn’t just about wages…__ It’s also about prices. Hourly pay increased 4.6% last month, but consumer prices jumped 5.4%. Wages rose but spending power didn’t, because bacon, gas, and rent all got more expensive. Since lower-income Americans are especially sensitive to spikes, they don’t just want higher wages — they also want higher spending power and more valuable benefits. Until that happens, workers may keep asking for more.

John Deere strike aims to lift wages — but workers really want more spending power

__Sounds like a scary laboratory...__ actually just a really big software company. Once dubbed “the Facebook of programming,” __[GitLab](https://robinhood.com/stocks/GTLB)__ is a one-stop shop for developers to create, store, and distribute new software. Instead of sending a “per my last email: code change” to your coworker, you can see and make all changes in one place. 

- __Shares of GitLab jumped 35%__ yesterday after going public on the Nasdaq. GitLab closed well above its IPO price of $77, giving it a $14B+ valuation, nearly double what it was in January. 
- __During the pandemic,__ GitLab benefited from companies rushing to streamline their operations remotely. It generated $152M in revenue in 2020 — up nearly double from 2019.
- __Fun fact:__ San Francisco 49ers legend Joe Montana invested $100K in GitLab through his fund Liquid2 Ventures back in 2015, when GitLab’s valuation was just $12M.

__Like a sibling rivalry…__ except there’s no relation. GitLab’s main rival, __GitHub__, has more than 65M developers and was scooped up by Microsoft in 2018 for $7.5B. GitLab has attracted new users by offering its popular DevOps software free. The hope was more nonpaying users would turn into premium paying subscribers, but it hasn’t panned out:

- __<1%:__ how many of GitLab’s 30M users converted to a $19.99 or $99.99 a month subscription. For context: Spotify had a 46% conversion rate in 2019.
- __$40M:__ GitLab's loss last quarter as a result of ramping up its marketing budget to attract big spenders. 


Code

__Developers are the backbone of the hybrid work economy…__ but they need the tools to keep up with cloud demand. As more companies offer a flexible WFH lifestyle, it’s critical for businesses to make office apps available remotely. Companies like GitLab, whose employees are 100% remote, are gaining steam by trying to make that transition seamless. Still, it could be a while before they actually make money doing it.

GitLab goes public at an $11B valuation to support the hybrid work economy

Worker wage strikes, GitLab’s IPO, and more of today’s top Snacks stories

_Head in the cloud [skynesher/E+ via Getty Images]_

🚫 John Deere in the headlights 

__Scratch the mango e-juice...__ For the first time, the FDA has authorized an e-cigarette to stay on the US market. Refresher: Juul, Puff, and others still *don't* have the green light. The FDA authorized three Vuse vaping products from Camel-maker __R.J. Reynolds__, one of the world's largest cigarette companies. Unlike competitors, this vape is far from “cute”:

- __The Vuse Solo e-cig...__ looks more like an emergency medical syringe — no bright colors and no puffy-cloud illustrations.
- __The approved cartridges__ are strictly tobacco-flavored. A far cry from watermelon ice or cotton candy. Still, they contain as much nicotine as a pack of cigarettes.
- __The verdict:__ FDA said the health benefit of helping smokers ditch tobacco cigs outweighs the risk of getting kids hooked... on tobacco-*flavored* Vuse Solo.

__First Vuse...__ The landmark decision means the FDA thinks some vapes could offer more benefits than risks — keyword: “some." The FDA rejected 10 other flavored Vuse products, which are popular with teens. As global tobacco use falls, smokers are trading paper for puffable nicotine tech. The e-cig market was worth [$14B](https://www.prnewswire.com/news-releases/global-e-cigarettes-market-to-reach-22-5-billion-by-2026--301302268.html#:~:text=Amid%20the%20COVID%2D19%20crisis,8.3%25%20over%20the%20analysis%20period.) last year, and is expected to hit $22.5B by 2026. So far the FDA hasn't been sipping the e-juice.

- __The Vape Purge:__ Over the past few months, the FDA has ordered thousands of vaping products off the market, including Puff Bars.
- __Puff has surpassed Juul__ as a teen favorite thanks to its candy-like flavors, cheap disposable bars, and colorful packaging.

Puff

__Vice companies can’t have it all...__ Companies in industries like tobacco, alcohol, drugs, and weapons face unique risks. Case in point: Tobacco giant __[Altria](https://robinhood.com/stocks/MO)__, which bought a 35% stake in Juul, has been dealing with a torrent of litigation as regulators blamed Juul's marketing and Jamba Juice-inspired flavors for a teen-vaping epidemic — and Altria has lost billions. Juul and Puff rose to popularity thanks to their branding, but they may have to be more conservative like Vuse if they want to survive.

Vuse Solo becomes the first e-cig authorized by the FDA — after doing what Juul didn’t

__Say “supply shortage” again…__ Three major global problems have dominated headlines and weighed on markets. First, supply-chain snarls are straining everything from USPS delivery to Grape Nuts availability. Second, a chip shortage is slowing production of __[GM](https://robinhood.com/stocks/GM)__ trucks, gaming consoles, and lots more. Third, a surge in ransomware cyberattacks has disrupted a large variety of organizations, including beef suppliers and big governments. Meanwhile, the IMF lowered its forecast for 2021 global economic growth this week. To get things on track, President Biden and other leaders are getting involved.

__ETA on that rice cooker: 97 days…__ Corporations don’t necessarily have financial incentives to help solve global operations and security problems. So Biden’s encouraging them to address the far-reaching threats. Some examples: 

- __Unblocking the supply chain:__ Biden brokered a deal for ports in LA and Long Beach, which process nearly half of US cargo, to operate 24/7 to ease the backlog. 
- __Cracking down on hackers:__ Biden gathered 30 state leaders to combat cyberattacks, which cost victims $74B last year. The US also sanctioned a crypto exchange accused of letting criminals launder stolen __[Bitcoin](https://robinhood.com/crypto/BTC)__.
- __Supercharging chips:__ Japan reportedly might partner with __[TSMC](https://robinhood.com/stocks/TSM)__ and __[Sony](https://robinhood.com/stocks/SONY)__ to build a $7B chip factory to address the shortage. Meanwhile, the White House spearheaded a $52B bill to boost domestic chip making in June.

The great chip scare [Victor Dyomin/Moment via Getty Images]

Dilemma

__It’s a pandemic “prisoner’s dilemma”…__ When facing huge shared costs, individual companies often wait for *someone else* to pay first. But if no one pays, everyone loses — so governments sometimes get involved to spur action. Exhibit A: climate change. Without fines or rewards, companies have little financial incentive to curb pollution. Biden’s hoping that big bucks and hefty fines convince companies to tackle global economic threats together.

From supply headaches to cyberhacks, leaders tackle global business threats

The first FDA-approved vape, and more of today’s top Snacks stories

💨 Goodbye, Puff Bars

__A tall vanilla latte walks into a Porsche…__ Midlife crisis, __[Starbucks](https://robinhood.com/stocks/SBUX)__ edition. The chain is [celebrating](https://www.bloomberg.com/opinion/articles/2021-10-12/starbucks-is-50-and-emboldening-its-rivals-more-than-ever?srnd=premium&sref=q3KSFp38) its 50th birthday. Today, it's a corporate giant worth $131B that accounts for 40% of US coffeehouses. In honor of the big 50, we're taking a look back:

- __1971:__ The first Starbucks opened in Seattle’s Pike Place Market. But it only sold beans and equipment for DIY brews.
- __1982:__ Howard Schultz, a sales rep for a Starbs supplier, became Starbucks' marketing chief. He believed it could become “synonymous with great coffee.”
- __1987:__ Schultz ended up buying Starbucks, with a vision of turning it into a nationwide café chain inspired by Milan coffee bars.
- __1991:__ A year after turning its first profit, Starbs started a national rollout. LA stores were instant hits, with celebs like Paula Abdul rolling up for nonfat lattes.

__Cold brew, hot growth...__ Today Starbucks has over 33K stores around the globe, up from 1K in 1996 and [double](https://www.starbucks.com/assets/ba6185aa2f9440379ce0857d89de8412.pdf) what it had in 2010. Most Americans had never experienced "café culture" pre-Starbs. Now the US has 37K+ coffeehouses — Starbs accounts for a whopping ~15K. Since going public in 1992, Starbucks stock is up more than 300X, and has doubled over the past five years. It's the world's [second most](https://www.forbes.com/the-worlds-most-valuable-brands/#81d1a56119c0) valuable restaurant brand, trailing only __[McDonald's](https://robinhood.com/stocks/MCD)__. Two recent areas of focus:

- __Digital:__ Starbs has doubled down on store pickup, delivery, and drive-thru. Last quarter, more than 25% of transactions came from app mobile orders, and rewards members accounted for more than half of US sales.
- __Product line up:__ Since Starbs acquired the Frappuccino in 1994, it's expanded from hot coffee to fancy foods and premium cold bevs, including egg-white bites and Mango Dragonfruit Refreshers.

Go oat, brew cold [Adam Hester/The Image Bank via Getty Images]

Brew

__"Premiumization" could be a frothy growth opp...__ Starbs has upped the dividend it pays to investors since 2010, when it first intro'd dividends. But to keep growing profit in the face of hot competition, Starbs might need more premiumization — fancy-fied products it can charge extra for. That's why it’s pushing premium treats like __[Beyond Meat](https://robinhood.com/stocks/BYND)__ breakfast sammies and __[Oatly](https://robinhood.com/stocks/OTLY)__ iced coffees. We'll see if the premium push is still working when Starbucks reports earnings this month.

Starbucks turns 50: the past, present, and future of the world's largest coffee chain

__Sounds like a lake monster…__ the Seattle Kraken. The NHL’s newest hockey team hit the ice last night. This season, the NHL signed a $635M/year broadcast deal with ESPN and __Turner__ — nearly twice the size of last year’s deal with __[Disney](https://robinhood.com/stocks/DIS)__ and NBC, but far from the NFL’s recent $10B/year deal. The NHL has high hopes for Seattle’s first team in 97 years. Here’s why:

- __No expense spared:__ The Kraken raised $2B from billionaires like __[Amazon](https://robinhood.com/stocks/AMZN)__ CEO Andy Jassy, who along with his ownership group paid $650M — more than 20 of 31 teams are *valued* — to join the NHL.
- __The Climate Pledge Arena__, sponsored by Amazon, cost $1B+ to upgrade and is 100% renewable-energy-powered. Think: more LED video screens than any other arena.
- __Digital approach:__ The Kraken built a mobile app that gives fans personalized experiences, like finding their favorite wines waiting at their seats.
- __Monster demand:__ An average Kraken ticket sells for $188 on __SeatGeek__, double the NHL average. 

__Streamable hat trick...__ The Kraken’s debut is part of a bigger e-vamp for the NHL, whose ratings hit a 10-year low last season. The NHL-ESPN partnership is the first major US sports broadcasting deal that’s streaming-focused: It gives the NHL access to 15M ESPN+ subscribers and 43M Hulu subscribers — and an opportunity to boost its fan base. 

Puck

__The future of pro sports is omnichannel…__ and the NHL doesn’t want to miss out. The NBA and NFL have built ways for fans to consume live sports across *multiple* platforms. The NBA teamed up with __[Microsoft](https://robinhood.com/stocks/MSFT)__ to provide AI-customized content across streaming and social platforms, and the NFL partnered with __[Verizon](https://robinhood.com/stocks/VZ)__ to deliver 5G-powered stats in the stadium. The Kraken could spearhead the NHL’s plans to engage viewers in stadiums *and* on streamers.

The NHL’s pricey new puck drops in Seattle as it takes a page out of other leagues' playbooks

Starbucks turns 50, the NHL’s big deal, and more of today’s top Snacks stories

☕️ Starbucks’ big 50th

__Hard to swallow...__ because “molnupiravir” is a mouthful. American pharma giant __[Merck](https://robinhood.com/stocks/MRK)__ and __Ridgeback Biotherapeutics__ just [filed](https://www.wsj.com/articles/merck-asks-fda-to-authorize-promising-covid-19-pill-11633946402?mod=business_lead_pos1) for FDA approval of molnupiravir — aka *the Covid pill*. If approved, it would be the first swallowable antiviral Covid drug. So far, __[Gilead’s](https://robinhood.com/stocks/GILD)__ remdesivir is the only FDA-approved antiviral, but it's just for hospital patients and has to be injected. Merck said its pill reduced hospitalizations and deaths by *half* in high-risk people with Covid.

- __Only people with Covid can take the treatment__ (eight pills/day for five days). The goal: Prevent cases from leading to hospitalizations, which carry a dangerous health toll, and cost an average of [$20K](https://www.healthsystemtracker.org/brief/unvaccinated-covid-patients-cost-the-u-s-health-system-billions-of-dollars/#:~:text=While%20real%2Dtime%20data%20on,COVID%2D19%20hospitalizations%20average%20%2424%2C033.) per stay.
- __We're still waiting on final results__ from Merck's big study, but the FDA could clear the pill in the next few weeks.

__Winter is coming...__ and it could be chilly. Sheltering indoors could lead to another Covid surge. Merck is pushing to get this pill out: It's already started production and plans to manufacture 10M treatment courses this year. Oh, and it has a $1.2B contract to provide 1.7M courses to the US gov't, at $712 for each five-day course — or [40X](https://theintercept.com/2021/10/05/covid-pill-drug-pricing-merck-ridgeback/) what it reportedly costs to produce.

Pill

__Pharma’s Covid story is far from over...__ And pills could play a big role, both for those who aren’t vaxxed, and for those who *can't*. While 80% of US adults are vaccinated, [more than half](https://ourworldindata.org/covid-vaccinations?country=OWID_WRL) of the world's population *hasn't* gotten a shot, and only 35% is fully vaxxed. Since unvaccinated people are [11X](https://www.usnews.com/news/health-news/articles/2021-09-10/cdc-finds-unvaccinated-11-times-more-likely-to-die-of-covid) more likely to die from Covid, the pill could lower death rates in countries with poor vaccine access — *if* Merck makes it affordable. Merck says it plans to price its pill based on the wealth of the country buying it.

The Covid pill: Merck seeks FDA approval for its first-of-a-kind drug — it could be big

__Scratch the fuzzy pink neck pillow...__ and forget the Biscoff cookies. __[Southwest Airlines](https://robinhood.com/stocks/LUV)__ cancelled 2K+ flights between Saturday and Monday, causing headaches from Miami to Denver. SW blamed the cancellation-palooza on air-traffic issues and bad weather. Awkward, since the FAA reported no air-traffic-control issues, and angry customers posted [pics](https://twitter.com/KamVTV/status/1447614181402894344) of baby-blue skies. SW shares sank as much as 3% yesterday.

__The rumors were flying…__ unlike Southwest’s planes. Critics speculated that the cancellations stemmed from pilots’ massive “sick-in” protest of SW’s vaccine mandate. But SW — and the pilots’ union — said the cancellations weren’t part of a protest. Instead, they may have stemmed from Southwest’s opportunistic pandemic strategy: 

- __Unpredictable moves:__ While __[American Airlines](https://robinhood.com/stocks/AAL)__ and __[Delta](https://robinhood.com/stocks/DAL)__ cut flights in smaller cities to save cash mid-pandemic, Southwest *expanded* to 18 new destinations to try to grab market share.
- __Predictable delays:__ As flight demand ramped up quickly, SW struggled to staff its new flights. This summer, one-third of SW flights were late — much more compared to those of its rivals.
- __In context:__ __30%__ of Southwest flights were cancelled on Sunday. The next most affected airline, __American__, cancelled just *2%* of its flights.

Two days late for the one-day NFT convention [bymuratdeniz/E+ via Getty Images]

__It’s hard to refund a canceled rep…__ The financial cost of cancellations is bad for airlines, but the *reputation cost* is worse. Southwest soared to success with low prices and an aggressive expansion strategy. But after this PR nightmare, thousands of travelers may avoid it at a time when travel is rebounding. Domestic travel is nearly back to pre-pandemic levels, and is expected to keep growing. But Southwest could miss out.

Southwest cancels 2K+ flights, grounding its reputation as flight demand takes off

Merck’s new Covid pill, and more of today’s top Snacks stories

💊 The Covid pill

__Climate-change stress…__ is getting *financial*. Risks related to climate change could affect global markets in a big way, and US officials are taking note. Last week, the Fed moved closer to launching climate-risk safety checkups. And the SEC is trying to amp up rules for corporate climate reporting. The disclosures could change company valuations, and how investors view entire industries. The details:

- __Climate checkup:__ The Fed wants to require Big Banks to tally climate risks — aka how much $$ is threatened by intensifying wildfires and floods. 
- __Climate filings:__ The SEC wants public companies to share how climate change could affect their business (think: fossil-fueled lawsuits), demand for carbon-heavy products, and what they’re spending to stay compliant.
- __Targets:__ The SEC might also make companies share five-year plans for cutting emissions, plus net-zero goals. 

__Late to the climate rally…__ The US is playing catch-up with countries like England and France, which have already set corporate climate-reporting standards. Meanwhile, companies have been making their own rules:  

- __Neutralize:__ Tech giants like __[Amazon](https://robinhood.com/stocks/AMZN)__ and __[Microsoft](https://robinhood.com/stocks/MSFT)__ made plans to go carbon-neutral. __[Google](https://robinhood.com/stocks/GOOGL)__ says it’s been carbon-neutral since 2007.
- __Transition:__ Oil companies __[Exxon](https://robinhood.com/stocks/XOM)__, __[Shell](https://robinhood.com/stocks/RDS.A)__, and __[BP](https://robinhood.com/stocks/BP)__ have made multibillion-dollar plans to shift to renewable energy.
- __Clean-vest:__ Investment firms like __[BlackRock](https://robinhood.com/stocks/BLK)__ have prioritized renewables to de-risk funds.

__Green filter...__ About 90% of S&P 500 companies share *voluntary* climate reports. But they’re usually not regulated, and sometimes “greenwashed” to inflate progress:

- __Facts:__ Most Fortune 500 companies have emissions targets, but only 20% are based on science.
- __Dally:__ Amazon committed to carbon neutrality by 2040 in 2019, but its emissions have actually *grown* 15%+ annually since. 
- __Lip service:__ Companies like __[Costco](https://robinhood.com/stocks/COST)__ have said they want to reduce their footprints, but haven’t set formal targets yet.


This storm looks expensive [Rapideye/E+ via Getty Images]

Scrub

__Goodbye, greenwashing…__ Because climate accounting is about to be clearer. Standardized climate reporting through the Fed and SEC will likely make it harder for companies to fudge their environmental impact. US officials say better reporting will drive more capital to greener industries, and help countries reach net-zero emissions. Big money is at stake too: Extreme weather has cost the US [$1.9T](https://capitalmonitor.ai/institution/government/big-names-back-climate-disclosure-in-the-us/) since 1980, and $95B last year alone.

__Correction:__ In the original version of this story published Monday, Oct. 11, we misstated that __Netflix__ had not yet set targets to reduce its carbon footprint. The company *has* set targets, which you can read about [here](https://ir.netflix.net/governance/ESG/default.aspx) and [here](https://sciencebasedtargets.org/companies-taking-action). 

The Green Sheet: The Fed and SEC plant seeds for better corporate climate reporting

__Leaky roof…__ Last week the Senate raised the $28T debt ceiling by $480B, preventing a historic and [“catastrophic”](https://www.nytimes.com/2021/09/28/business/economy/yellen-powell-senate.html) default, for now. Lawmakers will need to go back to the drawing board to make a long-term plan in December. One solution: The President could order the Treasury to mint a trillion-dollar platinum coin to help offset the nation’s debt. The idea emerged a decade ago but was nixed over inflation worries. TBD if it will happen. 

__Lifting off...__ Flights to Cabo still haven’t returned to pre-pandemic levels, but US airline travel is poised to rev up during the holidays. __[United Airlines](https://robinhood.com/stocks/UAL)__ said it planned to offer 91% as many domestic flights in December as it did the same month in 2019. __[Delta](https://robinhood.com/stocks/DAL)__ said US business traffic is starting to grow, and next year could be its best year since before the pandemic. Flight searches for holiday trips are also up 16% compared to 2019. We’ll see if Delta concerns change airlines’ outlook.

__Banks’ big week...__ __[Citigroup](https://robinhood.com/stocks/C)__, __[JPMorgan Chase](https://robinhood.com/stocks/JPM)__, __[Morgan Stanley](https://robinhood.com/stocks/MS)__, and __[Wells Fargo](https://robinhood.com/stocks/WFC)__ all report this week. Earlier this year, banks profited from strong consumer spending (thanks, [stimmy](https://www.reuters.com/article/us-usa-banks-stimulus/cash-strapped-americans-ask-mnuchin-where-their-stimmy-checks-are-idINKBN294259) checks) and by moving billions of “rainy day [funds](https://snacks.robinhood.com/newsletters/2Dx6BpeCelL6ERgFEQBzuf/articles/7FGQ9LWK0pYQ0cJrD5MQd9/)” to reserves. __[Goldman Sachs](https://www.cnbc.com/2021/07/13/goldman-sachs-gs-earnings-q2-2021.html)__ and other top IPO underwriters have benefited from a [record](https://markets.businessinsider.com/news/stocks/ipo-volume-2021-spac-171-billion-us-capital-markets-boom-public-6) year for market debuts. Now, investors are watching loan revenue from products like mortgages. Loan growth has been stagnant, and makes up [more](https://www.reuters.com/business/finance/us-banks-see-big-jump-2q-profits-before-results-return-normal-2021-07-08/) than half of the banking industry’s revenue. 

__Dough-eyed…__ America’s biggest pizza chain saw sales skyrocket during lockdown when more people munched from their couch. Domino’s sales growth has slowed down this year, but the chain is still growing sales in places where Covid restrictions are lifting. Small price hikes for delivery fees and menu items have helped. When __[Domino’s](https://robinhood.com/stocks/DPZ)__ reports on Thursday, we’ll see whether the labor shortage impacts results (the chain hires its own delivery [drivers](https://www.wsj.com/articles/dominos-goes-it-alone-on-delivery-11566219685)), and if the pizza fever is still going strong as more cities reopen. 

1. __[Global](https://snacks.robinhood.com/newsletters/79a47f1ZHASWmFqj21BRZ8/articles/4vjRWY6cPN5u2Khu4WU4ft/):__ Netflix’s South Korean hit “Squid Game” didn’t become the top TV show in 90 countries by accident — it’s part of the ’Flix’s strategy to go global.
2. __[Levi’s](https://snacks.robinhood.com/newsletters/BsDe10e9xAgHvtNWL9X9r/):__ The denim icon's sales blew past pre-pandemic levels last quarter thanks to “casualization” (think: baggy), plus a sturdy supply chain behind the seams. 
3. __[Robotaxi](https://snacks.robinhood.com/newsletters/13cF1yKnOi3d4KGQe6K8q2/articles/4EByRZTA6SoI4Jqbuu9VmJ/):__ __[GM](https://robinhood.com/stocks/GM)__ isn’t only doubling down on EVs to catch up to __[Tesla](https://robinhood.com/stocks/TSLA)__ —– it’s launching a robotaxi fleet in a push to zoom past it.

The Gov v. corporate greenwashing, and more of today’s top Snacks stories