__Color of the week: red...__ We're not talking lipstick. Last week the __[Nasdaq](https://learn.robinhood.com/articles/1GXPrecRfkSNp0aBblBSsL/what-is-the-nasdaq/)__ index entered [correction](https://learn.robinhood.com/articles/5Ox6TeuJAgvthA6NbsWmu0/what-is-a-correction/) territory — a drop of 10% or more from the most recent high — for the first time since March. The Nasdaq is the techiest of the Big Three US indexes.

- __Big Tech:__ [More than half](https://www.investopedia.com/terms/n/nasdaqcompositeindex.asp) of the Nasdaq’s 3K+ stocks are tech. After gaining 22% last year, it's down *13%* from its November record (#corrected).
- __Big *Red*:__ 40% of Nasdaq stocks have [fallen by half](https://www.wsj.com/articles/global-stock-markets-dow-update-01-19-2022-11642581538?st=3cy88re685iu59a&reflink=desktopwebshare_twitter) since November.

__Some ingredients…__ of the tech sell-off: Most are related to *inflation*, which is nearly at a [40-year](https://www.latimes.com/business/story/2022-01-12/consumer-prices-soared-past-year) high as demand > supply. To tame rising prices, the Fed is expected to hike rates at least [three](https://www.cnbc.com/2022/01/10/goldman-predicts-the-fed-while-hike-rates-four-times-this-year-more-than-previously-expected.html#:~:text=The%20Wall%20Street%20firm's%20chief,of%20just%20a%20month%20ago.) times this year. The problem for tech stocks: They’re “competing” with other investments.

- __Rising interest rates__ can make US gov’t bonds and savings accounts *more attractive* compared to riskier assets like tech stocks. 
- __Wall Street tends to value stocks__ based on their potential *future* returns (key word: future). But $1 today is worth more than $1 tomorrow because… inflation. 
- __As interest rates rise,__ the value of a dollar *today* also rises because it could be invested ASAP in bonds or savings with higher returns. But the prices of many high-flying tech stocks are based on potential growth. That’s one reason __[Tesla’s](https://robinhood.com/stocks/TSLA)__ worth 12X as much as __[GM](https://robinhood.com/stocks/GM)__, despite having only a quarter of its sales. 
- __Opportunity cost:__ As the potential returns from lower-risk investments (like US gov’t bonds) rises, investors want to see higher returns from tech to justify prices.

__The TLDR…__ Tech shares soared as the Fed gave us near-zero rates during the pandemic, since *any* potential growth seemed better than zero interest. Now that rates are rising, tech is rebalancing. The Dow — which is heavier on non-tech stocks with lower expectations of fast growth — is barely down.

[Mario Tama / Staff via Getty Images]

__Corrections are normal…__ While they might be painful short term, corrections can help rebalance overvalued stocks. They can hit assets, indexes, or entire markets. Tech stocks felt frothy at their November peak (a correction is like a barista skimming off foam). And we’ve been here before: The Nasdaq has had [66](https://www.marketwatch.com/story/nasdaq-composite-has-logged-65-corrections-since-1971-and-as-it-heads-for-66-heres-how-the-stock-index-tends-to-perform-afterward-11642623639) corrections since 1971, but is still up nearly 7,400% over the past 40 years.

Tech stocks’ big plunge: How latte prices and Fed rates help explain the “correction”

__Anti-antitrust...__ Big Tech is [fighting](https://www.wsj.com/articles/senate-panel-approves-antitrust-bill-restricting-big-tech-platforms-11642701487) for its platform power. Last week a Senate panel approved an “Innovation and Choice” bill that would force __[Amazon](https://robinhood.com/stocks/AMZN)__, __[Google](https://robinhood.com/stocks/GOOGL)__, __[Meta](https://robinhood.com/stocks/FB)__, and __[Apple](https://robinhood.com/stocks/AAPL)__ to stop favoring their products over competitors’. Think: Amazon putting its Basics at the top of search results. Smaller techies like __[Yelp](https://robinhood.com/stocks/YELP)__ and __[Sonos](https://robinhood.com/stocks/SONO)__ support the regulation, which they say will boost competition. The bill is moving on to a final vote, but analysts say it’s unlikely to pass before midterms, when Dems could lose the numbers needed to clear it. 

__Boom times for the YOLO-conomy...__ While pandemic powerhouses struggle (cough, Peloton), shares of __Prada__, __[Burberry](https://robinhood.com/stocks/BURBY)__, and __[Richemont](https://robinhood.com/stocks/CFRUY)__ [spiked](https://www.theguardian.com/business/2022/jan/19/burberry-predicts-35-rise-in-annual-profits-backed-by-asia-sales) last week after the luxury retailers reported strong demand for designer goods like chic puffy jackets and diamonds. Sales have actually exceeded pre-pandemic levels for several companies, despite travel restrictions and soaring prices, which wealthy consumers are less sensitive to. As younger spenders treat themselves to Valentino instead of vacays, luxury brands expect profits to keep rising.

Zoom Out

Stories we’re watching...

__Everyone wants BinaxNow…__ *now*. __[Abbott Labs’](https://robinhood.com/stocks/ABT)__ at-home Covid test accounts for 75% of US test sales, but good luck finding one. Test makers Abbott, __[Roche](https://robinhood.com/stocks/RHHBY)__, and __[Becton Dickinson](https://robinhood.com/stocks/BDX)__ saw [massive](https://www.cbsnews.com/news/covid-19-tests-provider-profit/) profits last year as we left the couch. But when cases fell this summer, Abbott laid off workers and closed factories, which led to test shortages. As Omicron surges, Abbott’s revving up production. Biden is paying the company $2B to provide nearly half of the free Covid tests Americans have started ordering. We’ll see how Omicron affected profits when Abbott reports on Wednesday.

__Cybertruck is cyber-stuck...__ Tesla rolls up with earnings Wednesday, and competition is more electric than ever. Tesla has reportedly [pushed](https://www.reuters.com/technology/exclusive-tesla-delays-initial-production-cybertruck-early-2023-source-2022-01-13/) back production of its much-hyped electric Cybertruck to 2023. Meanwhile, rival EV maker __[Rivian](https://robinhood.com/stocks/RIVN)__ is already delivering trucks, and __[Ford](https://robinhood.com/stocks/F)__ plans to drop electric F-150s on driveways this spring. Still, Tesla’s car deliveries [doubled](https://snacks.robinhood.com/newsletters/4JaJC0FkdGD5qt6zW5UWxa/articles/6g5fbLZOViIV6i968tWbF8/) last year from 2020 and its solar-power biz turned profitable. But Tesla’s facing heavy regulatory scrutiny, while a Tesla driver is facing felony charges after a fatal crash involving Autopilot.

Events

Coming up this week...

- __[Spinout](https://snacks.robinhood.com/newsletters/2aaB9GnrWgVHhjJd7bFJu/articles/1cvFtVr0b2fj1m1iC9AgUW/):__ __[Peloton](https://robinhood.com/stocks/PTON)__ shares plunged after a CNBC report said the company was pausing production of its bikes and treadmills. Pelo-demand fizzled last quarter after a pandemic boom, and store closures and layoffs could follow.
- __[#Influence](https://snacks.robinhood.com/newsletters/2aaB9GnrWgVHhjJd7bFJu/articles/2UWDolcoaAHhja6kAnJxsL/):__ Instagram and __TikTok__ rolled out paid subscription tools for creators ranging in price from $1 to $100/month, in a bid to lure top influencers and their followers from rivals.
- __[Gamed](https://snacks.robinhood.com/newsletters/4eOJialeY3vTs2AHV0FkZt/articles/5Tuqimhcf73WVRvJ5YTv5C):__ __[Microsoft](https://robinhood.com/stocks/MSFT)__ made a bid to buy Candy Crush maker __[Activision Blizzard](https://robinhood.com/stocks/ATVI)__ for $70B in the largest cash acquisition ever — it would cement gaming’s crucial role in Microsoft’s metaverse plans.

ICYMI

Last week's highlights...

Dow Jones

S&P 500

Nasdaq

Bitcoin

Calculating the value of a future latte [JGI/Jamie Grill via Getty Images]

The 200 most popular songs last year accounted for just 5% of total streams, as Gen Z discovers retro hits from Fleetwood Mac and Creedence Clearwater Revival on TikTok

🔻 Tech’s big drop, unpacked

__Worse than a fake death on “Sex and the City”...__ Mr. Big news: __[Peloton](https://robinhood.com/stocks/PTON)__ is temporarily halting production of its spin bikes and treadmills, [CNBC](https://www.cnbc.com/2022/01/20/peloton-to-pause-production-of-its-bikes-treadmills-as-demand-wanes.html) reports. In a confidential presentation, Peloton reportedly said that demand for its connected fitness equipment has faced a “significant reduction” since mid-pandemic. Picture: thousands of unsold bikes and treads sitting in storage depots. 

- __Peloton stock tanked 24% yesterday__ to below its IPO price, and was temporarily halted for trading. Shares have lost 70% of their value since November. 
- __Peloton plans to pause bike production__ for two months and treadmill production for six weeks. The pricier "+" versions of each will be paused *even longer*.
- __Last year,__ Peloton majorly [fumbled](https://snacks.robinhood.com/newsletters/4yW1t7ZAlpeTEKYaBK3zSe/articles/4Hhp3uBfBZdGd5inbOOgxo/) its response to demands to recall its Tread+ after thousands of injuries and one death. It belatedly issued a recall in August.

__Pre-[Zoom](https://robinhood.com/stocks/ZM) Beyoncé ride...__ Early in the pandemic, people rushed to snap up Peloton’s $2K bikes and $4K treadmills. Sales nearly tripled, subscriptions more than doubled, and it even turned a profit. But since all that demand was "pulled forward" and IRL workouts have returned, Peloton's growth has dramatically slowed. It *lost* $376M last quarter, and the new year is off to an even rougher start…

- __1st:__ CNBC [reported](https://www.cnbc.com/2022/01/19/peloton-insiders-sold-nearly-500-million-in-stock-before-its-big-drop-.html) that Peloton hired __McKinsey__ to consult on its cost structure, which could translate to layoffs and store closures. It has reportedly started cutting jobs already. 
- __2nd:__ SEC filings [showed](https://www.cnbc.com/2022/01/19/peloton-insiders-sold-nearly-500-million-in-stock-before-its-big-drop-.html) that Peloton insiders sold ~$500M worth of shares before the stock plunged earlier this week.


[SOPA Images / Contributor via Getty Images]

Sweat

__Too much optimism can be dangerous…__ Peloton’s growth forecasts for this year were *way off*. It seriously underestimated the possibility of a drop in demand. As the poster child of pandemic thrivers, Peloton had months-long shipping delays because orders were so strong. Now it has the opposite problem: so much unsold inventory that it could start a warehouse Equinox. 

Peloton pauses production of its fitness equipment as unsold bikes and treadmills pile up

__Like, share, subscribe…__ The influencer's Triple Crown. This week __Instagram__ and __TikTok__ began [testing](https://techcrunch.com/2022/01/19/instagram-launches-early-test-of-creator-subscriptions-in-the-u-s/) tools that allow creators to offer paid subscriptions. Both are hoping to drive more traffic to their apps. TikTok didn’t share details about its subscription, but here’s what we know about Insta’s:

- __Only 10 creators__ were invited to test the feature, including Olympic gymnast @jordanchiles (431K followers) and spiritual coach @bunnymichael (216K followers). 
- __Creators can charge__ anywhere from $1 to $100 for access to subscriber-only content and special badges that help fans stand out in crowded comment sections.
- __Insta is *not* taking a cut__ of creator earnings — yet. But it plans to expand the program to all creators in coming months, and may start “sharing” revenue in 2023.

__Liked Jason Derulo’s TikTok…__ and his Reel, *and* his __[Snap](https://robinhood.com/stocks/SNAP)__ story. Social giants are competing with new features to court top creators, whose millions of followers drive massive engagement. By attracting influencers with paid subscriptions, social platforms hope to win over *their* followers.

- __Instagram__, __TikTok__, and __Snapchat__ have between 38M and 45M users each, and that gap is expected to narrow to *about 1M* users by 2025.
- __Social platforms__ have spent billions on “creator funds” to attract top talent, and the growing creator economy is worth $100B+.
- __Meanwhile, creator-focused platforms__ like __Clubhouse__, __Patreon__, __Cameo__, and __OnlyFans__ boomed during the pandemic by connecting creators directly to fans.

Fluffy only meets subscribers [Westend61 via Getty Images]

Superfan

__Influencers are influencing tech companies…__ Creators have more leverage than ever before. Social companies initially focused on user growth, not creators. But now that the market is saturated and they’re competing for the same users, keeping top talent is key to engagement. And engagement is key to social’s profit puppy: ads. 

Insta and TikTok roll out creator subscriptions — because influencers are their competitive advantage

🚴 Peloton halts production of its fitness equipment as bikes and treadmills pile up 

More homes were sold in the US last year than any year since 2006

🚴 Peloton stops spinning

__Testing, testing...__ 1, 2, 3, 4. Americans can now order four free at-home Covid tests per household, courtesy of Uncle Sam. The ordering [website](https://www.covidtests.gov/) rolled out Tuesday and is surprisingly easy to use: Click the big "order free at-home tests" button, type your name and address, and submit. USPS is shipping all orders, which should arrive in 7 to 12 days.

- __Good execution:__ Government sites aren't known for being sleek. But apart from a few [hiccups](https://www.cnbc.com/2022/01/18/some-americans-blocked-from-ordering-bidens-free-covid-tests-in-early-website-launch.html), [covidtests.gov](https://www.covidtests.gov) appears to be running smoothly.
- __Not-so-good timing:__ Ideally the site would’ve launched *before* the holiday Omicron surge, but the Biden admin had [rejected](https://www.vanityfair.com/news/2021/12/the-biden-administration-rejected-an-october-proposal-for-free-rapid-tests-for-the-holidays) an October proposal for free tests. The US is now logging record Covid cases, with Omicron making up [nearly all](https://www.dailymail.co.uk/health/article-10416035/Up-300-000-Americans-die-time-Omicron-variant-surge-eases-mid-March.html) infections. 

__N-95 problems…__ and a test is one. Many Americans had [trouble](https://snacks.robinhood.com/newsletters/13asBadMK2y3ouhspAuSvD/articles/1sMEmrOSsUo3x8IRzK62vL/) getting tested over the holidays. Think: hours-long lines at free sites and sold-out kits. Meanwhile, retailers like __[Walgreens](https://robinhood.com/stocks/WBA)__ and __[Walmart](https://robinhood.com/stocks/WMT)__ and diagnostic companies like __[Abbott](https://robinhood.com/stocks/ABT)__ and __[Labcorp](https://robinhood.com/stocks/LH)__ raked in [billions](https://snacks.robinhood.com/newsletters/13asBadMK2y3ouhspAuSvD/articles/1sMEmrOSsUo3x8IRzK62vL/). But more help is coming:

- __Tests:__ Private insurers [are now required](https://www.npr.org/sections/coronavirus-live-updates/2022/01/10/1071899471/insurance-at-home-covid-tests-white-house) to reimburse up to eight home Covid tests/month.
- __Masks:__ The US will [distribute](https://www.nytimes.com/live/2022/01/19/world/omicron-covid-vaccine-tests) 400M free N-95 masks at health centers and pharmacies starting next week. 
- __Antivirals:__ The Biden admin purchased 20M courses of __[Pfizer’s](https://robinhood.com/stocks/PFE)__ newly authorized Covid pill, which the pharma giant [said](https://www.wsj.com/articles/pfizers-new-covid-19-pill-works-against-omicron-in-lab-11642528120) was effective at treating Omicron in tests. 

[Chip Somodevilla / Staff via Getty Images]

Ship

__The “new normal” still isn’t normal…__ yet. At a press conference marking Year 1 in office, President Biden said yesterday that the US *wouldn’t* go back to lockdowns or closed schools. He said we now have the tools for a future where Covid isn’t a crisis. Dr. Anthony Fauci [suggested](https://www.cnn.com/2022/01/18/health/us-coronavirus-tuesday/index.html) that Omicron — already peaking in some states — *could* mark the end of Covid’s pandemic phase. Still, economists [cut](https://www.wsj.com/articles/omicron-inflation-drive-down-u-s-growth-outlook-11642345202) the US’s annual growth outlook as Omicron exacerbates shortages and inflation.

The US launches free Covid test orders, as Biden boosts tools to manage the “new normal”

__Can you hear me now?...__ Yesterday __[Verizon](https://robinhood.com/stocks/VZ)__ and __[AT&T](https://robinhood.com/stocks/T)__ finally [activated](https://www.cnbc.com/2022/01/19/5g-launch-wednesday-caps-years-of-hype-investment.html) their faster 5G networks, which could power everything from crisper gaming and video chatting to VR and self-driving cars. Earlier this month __airlines and regulators__ asked the phone carriers to delay the 5G rollout, warning it could cause "catastrophic disruption" for flights by interfering with planes’ navigation systems. 

- __The compromise:__ Verizon and AT&T launched yesterday - but agreed *not* to launch within two-mile “buffer zones” around 50 major airports. 
- __Some airlines canceled flights anyway:__ Airlines have also cut thousands of flights because of Omicron-related staffing shortages and bad weather.

__Will the real 5G please turn on…__ AT&T and Verizon have offered “low-band” 5G (that’s usually not much faster than 4G) in the US for years, while spending billions building infrastructure to deploy the significantly faster “C-band” 5G. Verizon and AT&T together have paid nearly *$70B* for rights to use the newly available wavelengths that power C-band.

- __In nearly 40 countries__ C-band 5G has already been deployed without disrupting airlines. 
- __But in the US__ millions of customers in buffer zones may have to wait a few more months until airlines, carriers, and regulators hash out an air-safety deal.

Twitter sarcasm hits different in 5G [Westend61 via Getty Images]

OM(5)G

__Cell companies can’t afford another long delay…__ because 5G may be losing ground to satellite internet. 5G frustration, plus these latest delays, could help satellite internet take off: The satellite-internet industry is expected to balloon 6X by 2030 as companies like __Starlink__, __OneWeb__, __HughesNet__, and __[Viasat](https://robinhood.com/stocks/VSAT)__ keep growing.

Verizon and AT&T launch their 5G service after flight-safety delays — but they’ve got competition 

Biden admin launches free Covid test orders, masks, and more to manage “the new normal”

NYC is projecting a balanced budget (read: no deficit) for the first time ever — thanks to pandemic aid and a tax hike on millionaires

😷 Free Covid tests

__Candy, crushed…__ Yesterday __[Microsoft](https://robinhood.com/stocks/MSFT)__ [announced](https://www.nytimes.com/2022/01/18/business/microsoft-activision-blizzard.html) plans to buy __[Activision Blizzard](https://robinhood.com/stocks/ATVI)__, which makes hits like World of Warcraft and Candy Crush, for about $70B — the largest all-cash acquisition in corporate history. For reference: Previously Microsoft’s biggest deal was its $26B __LinkedIn__ purchase. Shares of Activision spiked 26% yesterday, after slipping 27% since California regulators sued the company over employee harassment in July. 

- __Microsoft’s__ gaming biz is now the third largest in the world after __[Tencent’s](https://robinhood.com/stocks/TCEHY)__ and __[Sony’s](https://robinhood.com/stocks/SONY)__. Microsoft’s existing gaming biz (think: Xbox, Minecraft) brought in $15B last year, and its Xbox Game Pass monthly subscription now has 25M subscribers.
- __Antitrust scrutiny is expected,__ but Microsoft is reportedly so confident the deal will close, it’s agreed to pay a $3B cancellation fee if it falls through.

__When it games, it pours…__ Sales across the gaming industry boomed 27% during lockdown in 2020 and continued growing last year. Gaming revenues are forecast to jump from $180B in 2021 to $220B by 2024. And as gaming companies reach new sales levels, there’s been a flurry of consolidation: There were $117B worth of gaming acquisitions last year, and Grand Theft Auto maker __[Take-Two](https://robinhood.com/stocks/TTWO)__ agreed to buy FarmVille creator __[Zynga](https://robinhood.com/stocks/ZNGA)__ last week for $12.7B.

[Anadolu Agency / Contributor via Getty Images]

Meringues

__Games could be key to monetizing the metaverse(s)...__ As Microsoft races rivals like __[Meta](https://robinhood.com/stocks/FB)__ (fka: Facebook) and __[Nvidia](https://robinhood.com/stocks/NVDA)__ to build the first widely used metaverse, blockbuster games could help attract skeptics. Platforms like __Fortnite__ and __[Roblox](https://robinhood.com/stocks/RBLX)__ have already built massive followings and in-game virtual economies. CEO Satya Nadella said Activision “will play a key role” in building metaverse platforms for 3B global gamers.

Microsoft’s $70B Activision bid is the biggest cash deal ever, cementing gaming in the metaverse

__Don't look up...__ at your streaming bill. __[Netflix](https://robinhood.com/stocks/NFLX)__ is [raising](https://www.nbcnews.com/news/us-news/netflix-raises-prices-plans-us-canada-rcna12359) prices for its 74M subscribers in the US and Canada across plans. The standard plan (aka: the most popular) is rising by $1.50/month to $15.50. The hike comes less than a year and a half after the Flix's last US increase.

- __Watch again:__ Netflix gained 36M subscribers in 2020 as we hibernated with laptops, ramen, and "Tiger King."
- __Next episode:__ That led to subscription saturation (#subscripturation) and *slowing growth*. Last quarter Netflix added fewer than 4.5M subs.

__The real "Single's Inferno"...__ no one to share a Netflix password with. US-Canada subscribers make up more than a third of Netflix’s 214M subs. But in the second quarter Netflix *lost* US-Canada subscribers. The price hikes could add $1B+ in annual revenue to compensate for sluggish growth in the Flix’d-out market. As streaming competition #intensifies, Netflix is exploring other growth opportunities:

- __New products:__ Last year it launched a merch [shop](https://www.netflix.shop/?gclid=CjwKCAiA55mPBhBOEiwANmzoQquoR8cPayCxsSGKhk79w-amHLMwDBMxo8mnsAKXoK4T7cfniVJ7hBoCjpgQAvD_BwE) (think: "Emily in Paris" sunglasses). It also [released](https://about.netflix.com/en/news/let-the-games-begin-a-new-way-to-experience-entertainment-on-mobile) games on its mobile app, including *two* based on "Stranger Things."
- __New markets:__ Netflix is doubling down on foreign content like “Squid Game” for international growth. Last month it [slashed](https://www.wsj.com/articles/netflix-slashes-india-prices-in-battle-with-amazon-disney-11639650086?mod=hp_lista_pos1) prices in India to $2.60 to compete with __[Disney](https://robinhood.com/stocks/DIS)__ and __[Amazon](https://robinhood.com/stocks/AMZN)__ in the [largest](https://www.wsj.com/articles/netflix-slashes-india-prices-in-battle-with-amazon-disney-11639650086?mod=hp_lista_pos1) untapped digital market. 

Reviewing the subscription bills like [YinYang/E+ via Getty Images]

Inferno

__Saturated customers pay for *un*saturated growth…__ Netflix has become a cultural staple in the US. It’s betting you’ll shell out the extra $1.50/month to not feel left out while your coworkers talk “Cobra Kai.” While saturated markets give Netflix *price power*, unsaturated markets like India can give it growth power. Of India’s 1.4B people, only 5M are Netflix subscribers. Netflix is [looking](https://www.wsj.com/articles/netflix-slashes-india-prices-in-battle-with-amazon-disney-11639650086?mod=hp_lista_pos1) to India for its “next 100 million” — and it can afford to slash prices abroad by hiking prices at home. 

Netflix raises US and Canadian prices again but slashes prices in India to reach its next “100 million”

Microsoft makes $70B Activision bid in a bet on gaming in the metaverse

EVs sales in Europe beat diesel-car sales in December for the first time, but gas-powered cars still sold best of all

🎮 Microsoft’s $70B meta-gaming gambit

__Vertical dancing > vertical integration...__ 17-year-old Charli D'Amelio [earned more](https://www.wsj.com/articles/these-tiktok-stars-made-more-money-than-many-of-americas-top-ceos-11642078170?mod=hp_lista_pos1) last year than the CEOs of __[Exxon](https://robinhood.com/stocks/XOM)__, __[Starbucks](https://robinhood.com/stocks/SBUX)__, __[McDonald's](https://robinhood.com/stocks/MCD)__, *and* __[Delta](https://robinhood.com/stocks/DAL)__ (sorry, Ed). D'Amelio is __TikTok's__ #1 kidfluencer, or under-18 influencer whose fans are mainly kids. While TikTok doesn't share ad revenue, last year the D'Amelio fam converted Charli's 133M following into [$17.5M](https://www.forbes.com/sites/abrambrown/2022/01/07/top-earning-tiktokers-charli-dixie-damelio-addison-rae-bella-poarch-josh-richards/?sh=1ed35a03afa4) worth of brand deals, product promos, and a clothing line. By comparison, median pay for S&P 500 CEOs was $13M (womp).

- __Kidfluencers are getting younger,__ with toddlers and tweens raking in [more](https://www.insiderintelligence.com/insights/influencer-marketing-report/) marketing $$. Like: 10-year-old Ryan Kaji, the star of toy-themed YouTube channel “Ryan’s World,” which clears his family [$25M](https://www.nytimes.com/2022/01/05/magazine/ryan-kaji-youtube.html) a year.
- __Toddler influencers:__ Some of the biggest kid-driven YT channels feature [toddlers](https://www.nytimes.com/2019/03/01/business/media/social-media-influencers-kids.html). Take 3-year-old twins Taytum and Oakley Fisher, whose channel can reportedly rake in [$300K/month](https://www.agilitypr.com/pr-news/public-relations/the-rise-of-kidfluencers-3-examples-of-todays-biggest-stars/) through brand deals, sponsored posts, and ads.

__"Account managed by mom"...__ Instead of watching “SpongeBob” on TV cut by cereal commercials, iPhone-laden kids are consuming sponsored content from young influencers they idolize (Addison Rae vs. Hannah Montana). As internet usage skews [younger](https://www.traackr.com/blog/trend-lightly-keeping-up-with-kidfluencers), corporations are putting kidfluencers at the center of their marketing strategy. Last year the global kids digital ad market was worth __[$1.7B](https://www.traackr.com/blog/trend-lightly-keeping-up-with-kidfluencers)__.

- __[Mattel](https://robinhood.com/stocks/MAT), [Staples](https://robinhood.com/stocks/SPLS), and [Walmart](https://robinhood.com/stocks/WMT)__ are bankrolling major endorsement deals for toddlers and tweens with large followings. Think: "[First Sleepover Opening Giant Presents](https://www.youtube.com/watch?v=WEOMugn0zN4)."
- __[Amazon](https://robinhood.com/stocks/AMZN), Walmart, and [Skechers](https://robinhood.com/stocks/SKX)__ partnered with Ryan to reach kids on his 32M-strong YT channel, where he unwraps and reviews toys.

Subscribe

__Kidfluencer culture is raising concerns…__ Advertisers are [splurging](https://www.nytimes.com/2019/03/01/business/media/social-media-influencers-kids.html) to reach children beyond TVs, but often kids can’t distinguish between ads and content — *especially* on social apps. They can be subconsciously prompted to pine for the latest Hot Wheels or D’Amelio eyeshadow. Also: Kidfluencers [aren’t](https://www.nytimes.com/2019/03/01/business/media/social-media-influencers-kids.html) as legally protected as child actors (e.g.: parents don’t need to set aside their earnings). Kidfluencer marketing is sparking [backlash](https://thehill.com/policy/technology/548342-instagram-sparks-new-concerns-over-kidfluencer-culture) from regulators, who view it as deceptive and potentially [psychologically harmful](https://www.wsj.com/articles/instagram-effects-on-children-is-being-investigated-by-coalition-of-states-11637262000?mod=article_inlinehttps://www.wsj.com/articles/instagram-effects-on-children-is-being-investigated-by-coalition-of-states-11637262000?mod=article_inline). US lawmakers recently [proposed](https://www.markey.senate.gov/news/press-releases/senators-markey-and-blumenthal-rep-castor-reintroduce-legislation-to-protect-children-and-teens-from-online-manipulation-and-harm) legislation to protect kids from manipulative social-media marketing.

The rise of uber-rich “kidfluencers” raises concerns over the growing biz of targeting children

__The Great Sick-Out...__ The fast-spreading Omicron variant has left [millions](https://www.cbsnews.com/news/covid-omicron-workers-out-sick/) of workers stuck at home, with 700K+ new cases [reported](https://www.nytimes.com/interactive/2021/us/covid-cases.html) in the US *daily*. Grocery stores are [operating](https://www.cnbc.com/2022/01/11/empty-grocery-shelves-return-as-sick-employees-supply-chain-delays-collide.html) with half their staff and empty shelves. __[Starbucks](https://robinhood.com/stocks/SBUX)__, __[Apple](https://robinhood.com/stocks/AAPL)__, __Walmart__, __[Lululemon](https://robinhood.com/stocks/LULU)__, __[Macy's](https://robinhood.com/stocks/M)__, and __[Nike](https://robinhood.com/stocks/NKE)__ have [reduced](https://snacks.robinhood.com/newsletters/4EvkfQv2ddElX8wVmHCO7L/articles/3c2guEIznx5uVgAenePw4u/) store hours or temporarily closed locations. Meanwhile, a fifth of US hospitals [are](https://www.bloomberg.com/news/articles/2022-01-05/one-in-five-u-s-hospitals-face-staffing-shortages-most-in-year?sref=q3KSFp38) severely understaffed. But Omicron appears to have [peaked](https://www.wsj.com/articles/omicron-peak-appears-to-have-passed-in-u-k-offering-hope-the-wave-is-receding-11642078349) in the UK, and could be peaking in the US. __[Pfizer](https://robinhood.com/stocks/PFE)__ says its Omicron vax will be ready by March, while President Biden is [preparing](https://www.wsj.com/articles/biden-in-shift-prepares-americans-to-see-covid-19-as-part-of-life-11641465004) Americans to accept Covid as part of normal life.

__“House Hunters” IRL…__ Home sales spiked during the pandemic as Americans took advantage of record [low](https://www.marketwatch.com/story/mortgage-rates-drop-to-new-record-low-as-coronavirus-cases-climb-11605802099) mortgage rates and flocked to the ’burbs. Unprecedented demand and low inventory have pushed home prices to all-time [highs](https://www.businesswire.com/news/home/20220113005655/en/Home-Prices-Start-New-Year-at-New-High). This month alone, the median price of a home jumped 16% to $365K. But the Fed is expected to hike interest rates several times this year, which would lead to higher borrowing costs for home buyers. While housing price growth should start cooling, experts predict demand to stay strong.

__Hold the Biscoff cookies...__ Airlines have [canceled](https://thehill.com/policy/transportation/588495-more-than-1700-flights-canceled-in-us-wednesday-almost-20000-since#:~:text=The%20spike%20in%20cancellations%20coincided,been%20canceled%20since%20Christmas%20Eve.) 20K+ flights since Christmas because of Omicron-driven staffing shortages and bad weather. __[Delta](https://robinhood.com/stocks/DAL)__ recently reported a $408M loss for the holiday quarter, when thousands of workers called in sick. But the airline expects to return to profitability after the first quarter of this year, and predicts business travel will bounce back in the spring. We’ll see whether __[United](https://robinhood.com/stocks/UAL)__, which is expected to post a quarterly loss on Thursday, also sees clearer skies ahead. 

__Not so pumped...__ about #PumpAnxiety. Oil prices [jumped](https://www.bls.gov/news.release/pdf/cpi.pdf) 40% last year, prompting Biden to offer an extra $4.5B to help low-income Americans with winter heating costs. Oil prices could hit $125/barrel this year, up from $50 last year. Soaring gas prices have *benefited* __[Schlumberger](https://robinhood.com/stocks/SLB)__, the world’s largest oil-tech biz (think: giant robo drills). Schlumberger posted expectation-beating profits last quarter as customers like __[Chevron](https://robinhood.com/stocks/CVX)__ boosted production to meet demand. Schlumberger, which reports Friday, expects higher spending on its drilling tech as production revs up.

10 canceled flights later [Dmitry Marchenko / EyeEm via Getty Images]

Coming up this week…

- __[Spoiled](https://snacks.robinhood.com/newsletters/6CD1aBMrjtdn6cA4HQjWbS/):__ __[Beyond Meat](https://robinhood.com/stocks/BYND)__ has been the most shorted stock (investors bet against it), as its protein patties lose market share and the plant-based-meat industry shrinks.
- __[Zynger](https://snacks.robinhood.com/newsletters/ttIvZRE8iPSUMYKDtpCyi/articles/7J1KPl6IrvYfOGG3GCcWHr/):__ Grand Theft Auto maker __[Take-Two](https://robinhood.com/stocks/TTWO)__ is set to buy FarmVille parent __[Zynga](https://robinhood.com/stocks/ZNGA)__ for $12.7B in a bet on mobile games. The small screen accounts for more gaming spend than PCs and consoles *combined*.
- __[Coins](https://snacks.robinhood.com/newsletters/4EvkfQv2ddElX8wVmHCO7L/articles/6tfwvsW2bGsbN5buGA10g4/):__ Kim Kardashian and Floyd Mayweather were sued in connection with promoting alt-coin __EthereumMax__ in an alleged scam — which has added fuel to the push for more crypto regulation.

🧸 Charli D’Amelio earns more than S&P 500 CEOs — why the “kidfluencer” economy is raising concerns

[Gotham]

4X more people worldwide speak English as a second language than as a native one

🧸 The “kidfluencer” economy (feat. Charli D’Amelio)

__Private equity, public markets…__ SF-based private-equity firm __[TPG](https://robinhood.com/stocks/TPG)__ [went public](https://www.wsj.com/articles/tpg-rises-in-first-day-of-trading-after-ipo-11642098376) yesterday in this year’s first major initial public offering. PE firms like TPG invest $$ in private companies, just like venture-capital firms. *But they have different parenting styles:* VCs usually invest in startups and let them run things their way (free-range parenting), while PEs invest in or buy mature companies and try to improve them (more like helicopter parents). 

- __TPG owns a stake in 280 companies__ worth $109B, up 81% from five years ago. Fun fact: It bought __[Petco](https://robinhood.com/stocks/WOOF)__ in 2006. 
- __TPG stock jumped 15%__ on its opening day of trading, pushing its market cap to $10B — a good sign for 2022’s IPOs.  

__Show me the acronyms…__ In 2021, assets managed by private equity and venture capital funds grew 10%, on average, and TPG’s jumped 21%. VCs invested $675B+ in startups, double 2020′s previous record. But at the end of the year two-thirds of 2021 IPOs were below their listing prices, which wasn’t great for retail investors. Still, many unicorns are expected to IPO this year as antitrust pressure makes mergers difficult and SPACs fall out of favor. PE-backed __Chobani__ and VC-backed __Reddit__ have already filed IPO paperwork. 

Bell

__Private equity isn’t private anymore…__ Historically, TPG’s cash arsenal came from private investors, who were also the ones to benefit from its growth. But now TPG is public, along with other publicly listed PE powerhouses like $144B __[Blackstone](https://robinhood.com/stocks/BX)__, $61B __[KKR](https://robinhood.com/stocks/KKR)__, and $19B __[Carlyle](https://robinhood.com/stocks/CG)__. __[Berkshire Hathaway](https://robinhood.com/stocks/BRK.B)__ is also basically a publicly traded PE firm (managed by Warren Buffett). Former Tinder owner __[IAC](https://robinhood.com/stocks/IAC)__ operates in a similar way.

TPG shares spike in the first major IPO of the year, as private equity goes public

__Can’t believe it’s not beef…__ __[Beyond Meat](https://robinhood.com/stocks/BYND)__ was one of the hottest IPOs of 2019, as beef-fatigued consumers jumped into the plant-based craze. From 2018 to 2020, sales of plant-based meat [grew](https://impossiblefoods.com/blog/2021-state-of-meat-in-foodservice-report-is-here) 3X as fast as animal meat sales, while Beyond’s sales *quadrupled*. Beyond has beefed up fast-food partnerships to attract fans. This month, it teamed up with chicken legend KFC to [launch](https://www.washingtonpost.com/food/2022/01/13/kfc-beyond-nuggets-plant-based/) Beyond Fried Chicken nuggets.

- __But Beyond shares have tanked 70%__ since its market debut, and now investors are [betting](https://markets.businessinsider.com/news/stocks/beyond-meat-stock-most-shorted-russell-1000-index-jim-chanos-2022-1?amp) money on it falling *even more* (aka: they’re shorting the stock). Blame falling sales…
- __Last quarter, Beyond’s US sales [sank](https://investors.beyondmeat.com/news-releases/news-release-details/beyond-meatr-reports-third-quarter-2021-financial-results) nearly 14%__ as demand for its protein patties cooled and severe weather [damaged](https://www.fool.com/earnings/call-transcripts/2021/11/11/beyond-meat-inc-bynd-q3-2021-earnings-call-transcr/) its primary US production facility. 

__A plant in *meat’s* clothing...__ Climate activism has become a driving force in the meatless movement. But companies like Beyond and rival __Impossible__ have yet to [prove](https://www.nytimes.com/2021/10/15/business/beyond-meat-impossible-emissions.html) they produce fewer emissions than real meat makers. Plus:

- __Plant-based meats cost 30-40% more__ than *real* meat. Over half of Americans who’ve [tried](https://news.gallup.com/poll/282989/four-americans-eaten-plant-based-meats.aspx) plant-based alternatives come from six-figure households.
- __Despite some nutritional advantages__ (like: fewer saturated fats) Beyond Burgers contain 5X as much sodium as a ground-beef patty.

Mid-Veganuary vibes [bymuratdeniz/E+ via Getty Images]

Spoiled

__It’s a double-loss whopper…__ Beyond is [losing](https://apnews.com/article/business-82e90aa25fb0c28215bb652f2e91fd8e) market share *in a shrinking market*. Not only is it losing sales to plant-based competitors — it’s losing out to more meat consumption. Last year the plant-based-meat industry saw 10 straight months of [decline](https://www.ft.com/content/6e97ac14-5ccb-4643-b3d6-c3592b241032). Meanwhile, OG meat giants like __[Tyson](https://robinhood.com/stocks/TSN)__ have launched cheaper plant-based options. Still, the meatless market is beginning to [rebound](https://www.ft.com/content/6e97ac14-5ccb-4643-b3d6-c3592b241032) as New Year’s resolutions and #Veganuary spotlight health.

Beyond Meat becomes the most shorted stock as meatless mania hits a wall

Beyond Meat becomes the most shorted stock as plant-based sales fall

[Smith Collection/Gado via Getty Images] 

Poet and civil-rights activist Maya Angelou has become the first Black woman to be featured on the quarter, in a series of coins honoring pioneering American women

🍔 Beyond’s big short

__Spreading like wildfire...__ The US is seeing [record](https://www.nytimes.com/live/2022/01/10/world/omicron-covid-testing-vaccines) hospitalizations, driven largely by people under age 60, as uber-contagious Omicron spreads. (FYI: Hospitalization totals include people who test positive after being admitted for non-Covid reasons.) Omicron is [half as likely](https://www.nytimes.com/live/2022/01/11/world/omicron-covid-testing-vaccines#california-omicron-hospitalizations) to hospitalize people compared with Delta, but there are way more cases: The US [logged](https://www.reuters.com/business/healthcare-pharmaceuticals/us-reports-least-11-mln-covid-cases-day-shattering-global-record-2022-01-11/) a record 1.35M new infections on Monday, the highest daily total for any country. Omicron accounts for about [98%](https://covid.cdc.gov/covid-data-tracker/#variant-proportions) of cases in America. 

- __[5M+](https://www.wsj.com/articles/omicron-and-the-week-america-is-calling-in-sick-11641571925) US workers could be isolating__ this week, but only a [third](https://apnews.com/article/coronavirus-pandemic-business-lifestyle-health-pandemics-e5fc6251d51e9142f90dfc81f8047ef8) of low-wage workers are getting paid sick leave, leaving many with a financial burden.
- Meanwhile: __[Walgreens](https://robinhood.com/stocks/WBA)__, __[CVS](https://robinhood.com/stocks/CVS)__, __[Amazon](https://robinhood.com/stocks/AMZN)__, __[Walmart](https://robinhood.com/stocks/WMT)__, and __[Delta](https://robinhood.com/stocks/DAL)__ shortened their paid sick leave after the CDC cut its recommended isolation time to 5 days from 10. 

__Called in sick...__ As if supply and labor shortages weren't enough, Omicron is causing mass disruptions in sectors that require IRL work — think: [empty](https://www.cnbc.com/2022/01/11/empty-grocery-shelves-return-as-sick-employees-supply-chain-delays-collide.html) grocery shelves and global manufacturing delays. A fifth of US hospitals [are](https://www.bloomberg.com/news/articles/2022-01-05/one-in-five-u-s-hospitals-face-staffing-shortages-most-in-year?sref=q3KSFp38) severely understaffed, and [a fifth](https://www.bloomberg.com/news/articles/2022-01-06/covid-related-staff-shortages-on-nyc-subway-imperil-city-revival) of NYC subway workers were out sick last week, which caused train delays. It’s hitting businesses too:

- __[Starbucks](https://robinhood.com/stocks/SBUX), [Nike](https://robinhood.com/stocks/NKE), and [Lululemon](https://robinhood.com/stocks/LULU)__ joined __[Macy's](https://robinhood.com/stocks/M)__, Walmart, and __[Apple](https://robinhood.com/stocks/AAPL)__ in [reducing](https://www.businessinsider.com/nike-lululemon-starbucks-reduce-store-hours-omicron-covid-19-spreads-2022-1) store hours or temporarily closing locations. Lulu even lowered its earnings guidance.
- __US airlines__ have canceled more than [28K](https://www.washingtonpost.com/transportation/2022/01/08/airline-flight-delays-cancellations/) flights, and __[United](https://robinhood.com/stocks/UAL)__ is [planning](https://www.usatoday.com/story/travel/airline-news/2022/01/11/united-airlines-employees-covid-ceo/9171254002/) more flight cuts after nearly a [third](https://www.businessinsider.com/united-one-third-newark-staff-called-out-sick-one-day-2022-1) of its Newark staff called in sick on a single day. (Delta could give a status update when it reports today.)

__2022 could be the year Covid is “normalized”...__ World leaders have started positioning the virus as a normal part of life. The UK told the British public that they would have to “learn to live with” Covid, and Spain’s prime minister [suggested](https://www.cnbc.com/2022/01/12/should-we-treat-covid-like-the-flu-europe-is-starting-to-think-so.html) the EU should consider treating it as an endemic illness like the flu. Biden too is [preparing](https://www.wsj.com/articles/biden-in-shift-prepares-americans-to-see-covid-19-as-part-of-life-11641465004) Americans to accept the virus as part of daily life. The upshot: Scientists are seeing signals that Omicron could [peak](https://abcnews.go.com/Health/wireStory/omicron-headed-rapid-drop-us-britain-82206037) soon in the US.

The national Omicron “sick-out” wreaks havoc across the US, from stores to subways

__Keeping up with crypto...__ Kim Kardashian, Floyd Mayweather, and other celebs are being sued over promoting alt-coin __EthereumMax__ as part of an alleged crypto scam. The mysterious coin debuted in May claiming to “bridge the gap [between](https://coinmarketcap.com/currencies/ethereummax/) community-driven tokens” and legacy crypto — but provided few details.

- __Problem #1:__ EthereumMax’s misleading name. It has *nothing* to do with __[Ether](https://robinhood.com/crypto/ETH)__, the second-largest cryptocurrency after __[Bitcoin](https://robinhood.com/crypto/BTC)__.
- __Problem #2:__ EthereumMax has crashed 98% since June, which has led to allegations it’s a “pump and dump” scheme. Think: Insiders selling everything after hyping the coin. 
- __Problem #3:__ Misleading #ad-vertising. Kim disclosed to her 250M+ Insta followers that EMax was a paid promo (FYI: she [*had*](https://sidewalkerdaily.com/instagram-sponsorship/) to) but didn't discuss risks. Mayweather even accepted EMax as payment for his high-profile fight with Logan Paul.

__Crypto’s Wild West…__ is under scrutiny. While micro-influencers increasingly promote new cryptos, celebs like Kim K have unprecedented reach. As FOMO-driven investors try to score on the $3T crypto [market](https://www.cnbc.com/2021/11/08/crypto-news-ether-hit-an-all-time-high-nftnyc-infrastructure-bill.html#:~:text=2%2C%202021.&text=The%20cryptocurrency%20market%20is%20now%20worth%20over%20%243%20trillion%2C%20according,and%20bitcoin%2C%20rally%20on%20Monday.), a growing number of fraudsters are taking advantage. Last year, crypto crimes hit a record [$14B](https://www.moneycontrol.com/news/business/cryptocurrency-based-crimes-pegged-at-14-billion-in-2021-report-7920261.html), and scammers lured investors with trend-based coins (see: [Squid Coin](https://snacks.robinhood.com/newsletters/6tLuNcjhXyEBeNkwvMiSsY/articles/35hA5ZwBVksopzvcj3xqCK/)). 

- Regulators have warned against crypto-market manipulation for years. But crypto markets and exchanges lack the controls and fraud protections of the stock market. 
- US regulators are calling for coin issuers to be [held](https://www.nytimes.com/2021/11/01/business/stablecoins-cryptocurrency-regulation.html) accountable. SEC Chair Gary Gensler wants crypto to be regulated in the same way the SEC oversees stocks and bonds. 

“Now let’s talk crypto” [Moment via Getty Images]

Coins

__Crypto scams are bad for crypto…__ While some argue that crypto is in the late-adoption phase, celebrity endorsements open the door to millions of *new* investors who might not have enough information to tell which coins are legit. About 100 new coins are [created](https://www.nytimes.com/2021/08/05/business/hype-coins-cryptocurrency.html#:~:text=About%20100%20are%20created%20each,more%20than%20just%20investor%20bros.) *every day*. Scams are further motivating regulators and investors in favor of more transparency and safeguards around crypto.

*Correction: In the Snacks newsletter published on Thursday, January 13, we misstated who Floyd Mayweather fought in his high-profile boxing match. It was Logan Paul, not Jake Paul. We’ve updated the online version of the newsletter, and we regret the error.*

Kim’s K crypto crisis: Influencer-driven coin promos add fuel to the push for regulation

The Great “Sick-Out,” Kim K’s crypto crisis, and more of today’s top Snacks stories

Charli D’Amelio, TikTok’s most-followed star, was the app’s highest earner last year, taking home a reported $17.5M

📷 Kim K’s crypto crisis

__[Airbnb](https://robinhood.com/stocks/ABNB) on wheels…__ When your weekend getaway *is* the red Mustang. __Turo__, which bills itself as the world’s largest car-sharing platform, has [filed](https://www.wsj.com/articles/turo-files-for-ipo-11641861832) to go public. Unlike __[Avis](https://robinhood.com/stocks/CAR)__-owned __Zipcar__ and competitors that *own* shared cars, Turo lets private car owners rent out their Porsches and pickups — and then takes a cut from both owners and renters. 

- __The #s:__ Turo has 85K hosts, 160K cars, and 1.3M monthly users in the US, UK, and Canada. It plans to allocate 5% of its shares to owners and renters.
- __Turo-charged:__ Its revenue tripled in the first three quarters of last year from 2020 — but it still hasn’t turned a profit.

__Car ownership = soo last century…__ according to Turo, at least. US households spend, on average, $11K on getting around, mostly with personal cars. But it’s twice as pricey to *own* a midsize car as it is to *rent* one. As auto prices soared on pandemic supply shortages, most younger drivers say they’d prefer *not* to own. Cue: booming interest in car sharing. 

- __Millennial marketing:__ In October, Turo teamed up with rapper 2 Chainz for a promotion to win over younger drivers.
- __Traditional automakers__ are [launching](https://snacks.robinhood.com/newsletters/5FNosAv8NvHNCzrNb49Ii6/articles/1yqb3lrhGUbJa7JDStTRvD/) subscriptions for commitment-phobic drivers: __[Volvo](https://robinhood.com/stocks/VLVLY)__, __[Nissan](https://robinhood.com/stocks/NSANY)__, __[Porsche](https://robinhood.com/stocks/POAHY)__, and __[Volkswagen](https://robinhood.com/stocks/VWAGY)__ all offer short-term car subscriptions.

Whips

__Mobility companies are counting on a revolution…__ Turo’s betting on a “new world of mobility,” which it’s estimating has a total addressable market of $230B — almost 200X as large as the car-sharing industry’s projected annual revenue. __[Uber](https://robinhood.com/stocks/UBER)__, __[Lyft](https://robinhood.com/stocks/LYFT)__, and __Getaround__ also have plans to build a future on shared mobility. Think: scooters, rentals, and ride-hail. But Turo’s vision will become reality only if car-sharing overtakes car-owning — a big if. US car ownership has risen in the past decade, with consumers spending 70X more *buying* cars in 2021 than *sharing* ’em. 

Car-sharing star Turo files for an IPO, with plans to accelerate a $230B mobility revolution

__Pairs perfectly with a buttery chardonnay...__ cheddar-jalapeño Goldfish? The classic field-trip snack is getting an adult twist: __[Campbell Soup's](https://robinhood.com/stocks/CPB)__ Pepperidge Farms [released](https://www.cnn.com/2022/01/10/business/goldfish-snacks-adults/index.html?utm_source=optzlynewmarketribbon) a line of supersized Goldfish “Mega Bites” in sharp cheddar and jalapeño flavors. Goldfish [said](https://www.foxbusiness.com/lifestyle/goldfish-mega-bites-crackers-adults) it's the first snack it’s created for grown-up tastes.

- __Millennial-friendly:__ Campbell is tapping into nostalgia and pandemic comfort cravings by giving its 60-year-old crackers an adult makeover.
- __It's even suggesting "adult beverage"__ pairings for the smiling fish and their 20+ flavors. See: Goldfish vanilla-cupcake grahams + espresso martini.
- __Why:__ Nearly half of all Goldfish buyers *don't* have kids. In 2020, Campbell's snack sales jumped 5% (impressive for a 153-year-old company) thanks partly to Goldfish.

__*The snack that smiles back...*__ If you hear the ’90s jingle in your head, Campbell is succeeding. The soup legend [thrived](https://snacks.robinhood.com/newsletters/7oqsnC8zl2TBCc1NByeQF1/articles/3CS1ynDs6oVhxFPNtQOv9I/) early in the pandemic as homebound Americans stocked up on its pantry staples, like Snyder's pretzels, SpaghettiOs, and... Campbell’s soup. There was a Goldfish shortage in April 2020, and millennials even started buying canned soup — "a trend that many believed was not possible," Campbell's CEO said. 

- __As we returned to restaurants__ and stopped hoarding tomato bisque, Campbell’s sales fell 4% last quarter from 2020. But sales of snacks like Goldfish and Milano cookies kept [growing](https://s27.q4cdn.com/108522393/files/doc_financials/2022/q1/Q1-FY2022-Earnings-Press-Release-Final_v2.pdf). 
- __Campbell is trying to keep up the momentum__ with millennial-targeted treats. Think: cauliflower-rice soups and hot-sauce-flavored Goldfish. 

But where are the cheddar-jalapeño Goldfish? [Ragnar Schmuck via Getty Images]

Ziploc

__Let the customer choose your market(ing)...__ In the ’60s, Goldfish were marketed as bar snacks (Julia Child paired ’em with martinis). In the ’90s, Goldfish began marketing to kids by adding smiles to the fish faces. Goldfish chose kids as a target market, but adults chose Goldfish. Now that grown-ups are driving snack growth, Goldfish is pivoting to become “a beloved brand for adults.”

Campbell launches adult-targeted Goldfish as millennials revive its snack sales

Turo’s mobility revolution, millennial-friendly Goldfish, and more of today’s top Snacks stories

US greenhouse-gas emissions rose 6% last year, after falling 10% in 2020, as coal consumption and truck traffic picked back up

🚘 Turo’s mobility revolution

__Grand Theft FarmVille...__ Instead of rolling in a sleek [Zentorno](https://gta.fandom.com/wiki/Zentorno), you're cruising on a goat. __[Take-Two Interactive](https://robinhood.com/stocks/TTWO)__ [agreed](https://www.cnbc.com/2022/01/10/take-two-interactive-to-buy-farmville-creator-zynga-for-12point7-billion.html) to buy mobile-gaming icon __[Zynga](https://robinhood.com/stocks/ZNGA)__ for $12.7B. Zynga makes hit apps like FarmVille, Words With Friends, and CSR Racing. Take-Two is known for computer and console franchises like GTA and NBA 2K — but has started snapping up smartphone games.

- __Take-Two said it would buy Zynga's shares__ for a 64% premium to their Friday price. Zynga shares soared 41% yesterday. Take-Two investors were less thrilled: The stock slumped 15%.
- __One of the gaming industry's largest acquisitions *ever*:__ The Zynga deal, expected to close by June, shows that Take-Two is serious about mobile.

__Billions in the palm...__ Wild stat: Consumers now [spend more](https://www.wsj.com/articles/videogame-maker-take-two-interactive-to-buy-zynga-in-12-7-billion-deal-11641818298) on mobile games than on console and PC games *combined*. Zynga makes $$ through its in-game buying biz (tokens, etc.), plus its smaller ad biz (accidentally clicked mid-game). The pandemic supercharged scrolly-tappy gaming: In the first quarter of 2021, users spent a record $1.7B *per week* in mobile games. Also: Children’s screen time [soared](https://www.nytimes.com/2021/01/16/health/covid-kids-tech-use.html) during the pandemic, and parents and researchers are [worried](https://www.bbk.ac.uk/news/gaming-addiction-is-on-the-rise-in-adolescents-due-to-covid-19-pandemic) about kids developing gaming addictions.

- __Zynga shares have plunged__ since August, when it saw audiences drop as pandemic restrictions eased (instead of WWF, you played IRL Scrabble). But last quarter, Zynga notched record third-quarter bookings and narrowed losses, while ad sales nearly *doubled*. 
- __Mobile is booming:__ Take-Two said it expected mobile to make up more than half its bookings in the next fiscal year, up 5X.

GTA: Farm Edition [Moment via Getty Images]

Farm

__Mobile can “maxim-eyes”...__ Maximize users while minimizing costs. We’re spending more time (and money) on our phones. Mobile now accounts for over half of the $180B gaming industry, and is the fastest-growing segment. While social-media games like FarmVille can [cost](https://imaginovation.net/blog/mobile-game-app-development-cost/) less than $250K to make, GTA 5 cost *[$265M](https://www.ibtimes.com/gta-5-costs-265-million-develop-market-making-it-most-expensive-video-game-ever-produced-report)* to develop and market (and took three years to create).

GTA maker Take-Two says it’s buying Zynga for $12.7B, as pandemic mobile gaming booms

__Upping the ante…__ NY [legalized](https://www.cnbc.com/2022/01/08/mobile-sports-betting-goes-live-in-new-york.html) mobile sports betting this weekend, just in time for yesterday’s college-football championship and next week’s NFL playoffs. Before, New Yorkers had to enter New Jersey to bet on sports. Now they can gamble from their couches. Last year US gamblers spent $40B betting on sports — *double* from 2020. 

- Betting apps from __[DraftKings](https://robinhood.com/stocks/DKNG)__, __FanDuel__, __[Caesars](https://robinhood.com/stocks/CZR)__, and __[Rush Street](https://robinhood.com/stocks/RSI)__ started taking NY bets on Saturday. Five other companies are waiting for approval.
- NY officials expect to generate $480M in gambling tax revenue this year, with most proceeds going to education and tax relief.

__What happens in Vegas…__ hasn’t stayed in Vegas. Since the federal sports-betting ban was lifted in 2018, 30 states and DC have legalized live sports betting, but only 18 have legalized *mobile* betting. NY is the largest state yet to go mobile, but NJ has the highest gambling revenue of any state, snagging one-fifth of the US’s gambling bucks.  

- __Atlantic City = cheaper hotels:__ Gamblers in NJ, the second state after Nevada to legalize gambling, have wagered 63X more than NY gamblers on sports betting. 
- __Analysts expect NY’s betting biz will surpass NJ’s__ in 2024. Ohio, Maryland, and Nebraska plan to launch sports betting soon.

Jackpot

__The house always wins…__ but it doesn’t necessarily win big. As gambling is legalized more widely, betting companies’ revenue is expected to 5X by 2026. But new markets don’t guarantee bigger profits: NY’s 51% tax on gambling revenue — 4X as high as NJ’s — will eat into apps’ profits as they grow. Shares of DraftKings and __PointsBet__ have fallen more than 60% over the past year as the companies splurged to compete for customers.

As mobile sports betting goes live in New York, gambling companies might not be feeling so lucky

Grand Theft FarmVille, NY’s legal sports bet, and more of today’s top Snacks stories

More than 1 in 10 first-time home buyers sold crypto last quarter to fund down payments 

🐐 Grand Theft FarmVille

__Pre (and post) NYE test...__ Frequent Covid tests are becoming a necessity, from travel and family gatherings, to entering offices and schools. The US is logging *record* infections as Omicron surges and makes up [95%](https://edition.cnn.com/2022/01/05/politics/covid-19-testing-sites/index.html) of cases. It’s nearly 4X as [contagious](https://www.reuters.com/business/healthcare-pharmaceuticals/omicron-evades-immunity-better-than-delta-danish-study-finds-2022-01-03/) as Delta among the vaxxed, but has been [milder](https://www.nytimes.com/2022/01/05/briefing/omicron-risk-milder-pandemic.html) with [fewer](https://www.webmd.com/lung/news/20220105/hospitalization-omicron-delta) hospitalizations. Last month, a daily record of [2.3M](https://ourworldindata.org/grapher/full-list-covid-19-tests-per-day?country=IND~IDN~ZAF~KOR~GBR~NZL~USA) Covid tests were performed in the US — *not* counting at-home swabs.

- __US officials stress the importance of self-testing,__ but kits are in [short supply](https://time.com/6132183/2022-covid-19-testing-plan/).To ease the crunch, the Biden admin said it [would](https://www.theguardian.com/us-news/2021/dec/21/biden-to-announce-half-a-million-free-home-covid-tests-to-fight-omicron) send 500M free at-home tests to Americans (that’s less than two/person). 
- The ordering website is [expected](https://www.reuters.com/world/us/biden-administration-finalizing-purchase-covid-tests-be-distributed-free-2022-01-04/) to launch this month. Meanwhile, the president [told](https://mashable.com/article/biden-tells-americans-to-google-coronavirus-test) people desperate for tests to "__[Google](https://robinhood.com/stocks/GOOGL)__ it."

__*Testing is a pricey habit...*__ especially for people with lower incomes. Free testing is [available](http://hhs.gov/coronavirus/community-based-testing-sites/index.html) to everyone in the US through 20K government sites (or 1 per ~17K people). But with hours-long lines at free sites, many are [turning](https://www.wsj.com/articles/some-families-shell-out-for-covid-19-tests-as-officials-race-to-offer-more-11641499169?mod=hp_lead_pos2) to lab tests, which can cost $200+, or $25 home kits. Some of the corporations benefiting: 

- __Retailers:__ __[Kroger](https://robinhood.com/stocks/KR)__ and __[Walmart](https://robinhood.com/stocks/WMT)__ have hiked prices on at-home tests (from $14 for a two-pack to $24). Meanwhile, __[Walgreens](https://robinhood.com/stocks/WBA)__ raised its forecast after notching $3.6B in quarterly profit, as shoppers rushed in for at-home and on-site swabs.
- __Test makers:__ Rapid tests can cost a [few dollars](https://www.medpagetoday.com/special-reports/exclusives/95748) to make, but companies like __[Abbott](https://robinhood.com/stocks/ABT)__ and __[Quidel](https://robinhood.com/stocks/QDEL)__ have seen stunning sales. Abbott [tripled](https://www.forbes.com/sites/brucejapsen/2021/04/20/abbott-profits-triple-as-covid-19-test-sales-hit-drugstore-shelves/) quarterly profits last year after its BinaxNow Covid self-test kit became a top seller. 
- __Lab companies,__ which process PCR tests: __[Labcorp’s](https://robinhood.com/stocks/LH)__ profit surged by 40%, to [$4.2B](https://ir.labcorp.com/static-files/d763d970-d7d4-4adf-bec0-bbbac32befc7), in the first nine months of 2021. When the testing boom started, in late 2020, Quest Diagnostic’s quarterly profit [doubled](https://www.sec.gov/Archives/edgar/data/1022079/000102207920000180/dgx093020208-kex991.htm?utm_source=newsletter&utm_medium=email&utm_campaign=newsletter_axiosvitals&stream=top) while Abbotts’ *[tripled](https://www.sec.gov/Archives/edgar/data/920148/000092014820000055/form8-kerex991forq32020.htm?utm_source=newsletter&utm_medium=email&utm_campaign=newsletter_axiosvitals&stream=top)*.  

Swab

__Testing is out of reach for many…__ while demand is soaring. Covid testing in the US [isn’t](https://www.propublica.org/article/heres-why-rapid-covid-tests-are-so-expensive-and-hard-to-find) easy or affordable when compared to testing in many developed countries. Across Europe, home kits cost [much less](https://www.medpagetoday.com/special-reports/exclusives/95748) and are widely available. UK residents can request seven free rapid tests at a time. Even Biden [said](https://edition.cnn.com/2022/01/05/politics/covid-19-testing-sites/index.html) he's "frustrated.” But some help is coming, like: [additional testing](https://edition.cnn.com/2022/01/05/politics/covid-19-testing-sites/index.html) sites in six states. Starting mid-January, those with private insurance can file reimbursement claims for home tests — but 150M+ Americans who *aren’t* privately insured *won’t* be eligible. 

While Americans bear the burden of pricey Covid tests, pharma and retailers are raking in billions

__Fed-y to rumble...__ The Fed [may](https://www.nytimes.com/2022/01/05/business/economy/federal-reserve-minutes-interest-rates.html) end its stimulus early and hike interest rates by *March* to cool spiking prices. Refresher: Higher interest rates discourage borrowing/spending. Last week, the tech-y Nasdaq sank 5%, with __[Netflix](https://robinhood.com/stocks/NFLX)__ down 11% and __[Twitter](https://robinhood.com/stocks/TWTR)__ down 7%. Longer term, analysts say markets could slump 10 months *after* a rate hike. Plus, mortgage rates are at two-year highs, and inflation’s at a *39-year* high. Relief is coming: Biden’s giving out $4.5B to help cover rising winter heating costs, while working to salvage his $1.7T social and climate spending bill.

__Digi-Yuan vs. Dollar...__ Last week China [launched](https://www.cnbc.com/2022/01/04/china-launches-digital-currency-app-to-expand-usage.html) a wallet app to expand use of its state-run digital currency (#DigiYuan) ahead of a national rollout. And WeChat owner __[Tencent](https://robinhood.com/stocks/TCEHY)__, which has 1B+ users, said it’s joining ecomm giant __[JD.com](https://robinhood.com/stocks/JD)__ in supporting the currency. China is positioning the digi-yuan for international use, starting with next month’s Beijing Olympics — and it’s pressuring companies like __[McDonald’s](https://robinhood.com/stocks/MCD)__ and __[Visa](https://robinhood.com/stocks/V)__ to accept it. As US and Chinese financial markets continue decoupling, digi-yuan could threaten the USD’s global dominance while the US debates its *own* digital dollar.

__Vanilla hemp smoothies and THC-lagers...__ Weed stocks got a pandemic boost as millions toked up at home. Last year, US pot sales hit a record $24B as canna-connoisseurs in nearly half of states stocked up on *legal* bud. Weed giant __[Tilray](https://robinhood.com/stocks/TLRY)__, which reports earnings today, saw sales surge 43% last quarter on demand for its core pot biz, plus international growth through its __Aphria__ merger. Now it’s investing “beyond the leaf” (think: buzzy brews, CBD oatmeal) to spark mainstream growth. Still, Tilray’s losses are piling up, and the stock fell 30% last month as investors grow impatient for federal legalization. 

__Racking up reward points…__ __[Chase](https://robinhood.com/stocks/JPM)__, __[Wells Fargo](https://robinhood.com/stocks/WFC)__, and __[Citi](https://robinhood.com/stocks/C)__ kick off bank earnings this week, as pandemic stimulus measures dry up. Last year, bank giants had record quarters on booming IPO activity and consumer spending — thanks to #stimulus, billions in expected loan defaults *never happened*. Bank stocks have boomed to ring in the new year as expected rate hikes could boost their balance sheets (think: more credit-card interest). But Omicron may take a toll on loan activity, which has just begun to [rebound](https://www.nytimes.com/2021/10/11/business/bank-earnings-preview.html) as consumers turn to credit to pay off bills and shopping orders. Nonetheless, analysts expect loan growth to continue this year. 

Mood post CBD oat latte [Westend61 via Getty Images]

- __[Blood](https://snacks.robinhood.com/newsletters/7nJDYIh8RKeeUP9ZdU0AKT/articles/1e3vHxn61NdzCDt5NAYf4d/):__ Last week disgraced __Theranos__ founder Elizabeth Holmes was convicted of defrauding investors, a rare fate for a tech exec. But despite Holmes’ Icarus moment, funding for US biotech startups has nearly tripled since 2015.

- __[Chilled](https://snacks.robinhood.com/newsletters/2XehCVTxDb5NgRyVEbAnGo/articles/4RyNtuwkvl2APvQizTRg8l/):__ Walmart plans to expand its “InHome” service — which delivers perishables like guac directly to *your refrigerator* — to 30M customers this year. The online grocery-delivery market’s predicted to hit $93B in 2022.

- __[Giga](https://snacks.robinhood.com/newsletters/4JaJC0FkdGD5qt6zW5UWxa/articles/6g5fbLZOViIV6i968tWbF8/):__ __[Tesla’s](https://robinhood.com/stocks/TSLA)__ stock jumped 13% last Monday after the EV-maker said it delivered nearly 1M cars in 2021. But as rivals __[VW](https://robinhood.com/stocks/VWAGY)__, __[Ford](https://robinhood.com/stocks/F)__, __[GM](https://robinhood.com/stocks/GM)__, and __[Lucid](https://robinhood.com/stocks/LCID)__ double down on EVs, Tesla may need to build more Giga-factories to maintain its lead.

Last week's highlights....

Covid-testing $$$, “beyond the leaf” cannabis, and more of today’s top Snacks stories

Last year scammers took home a record $14B worth of cryptocurrency, partly thanks to the rise of decentralized-finance (DeFi) platforms 