__A Shiba with a bone to pick...__  ICYMI, cryptocurrency prices have been plummeting. A week ago, __[Bitcoin](https://robinhood.com/crypto/BTC)__ was trading around $57K, down from its record of $63K in mid-April. At one point yesterday, Bitcoin plunged to  ~$30K. Meanwhile, __[Ethereum](https://robinhood.com/crypto/ETH)__, __[Doge](https://robinhood.com/crypto/DOGE)__, and __[Litecoin](https://robinhood.com/crypto/LTC)__ all dropped more than 40%, before recovering (some) losses. 

- __Nearly $1T has been wiped off__ total crypto market value since last week, when it was over $2T. 
- __Shares of crypto-invested companies__ like __[Coinbase](https://robinhood.com/stocks/COIN)__, __[Square](https://robinhood.com/stocks/SQ)__, and __[MicroStrategy](https://robinhood.com/stocks/MSTR)__ — an analytics company that invests in Bitcoin — also dipped.

__Decrypted...__ [More](https://www.gemini.com/state-of-us-crypto) than half of crypto investors say they’re buying for the long-term. Still, crypto prices are infamously volatile compared to other assets. The current annualized historical volatility for the S&P 500 index is about 15% — for Bitcoin, it's *80%*. Historical volatility = how much an asset price deviates (on average) from the average price over a time period. What may have caused this latest plunge:

- __Elon:__ BTC fell last week after Elon tweeted that __[Tesla](https://robinhood.com/stocks/TSLA)__ would no longer accept it. This week, it fell *again* after Elon's reply in a thread ("Indeed") led to  speculation that Tesla had sold Bitcoin. It hadn’t.  
- __China:__ On Tuesday, China reiterated its ban on offering cryptocurrency services, saying crypto is dangerous to the financial order.


_Home improvement, feat. crypto stools [Morsa Images/E+ via GettyImages]_

Crypto

__The three-legged stool of crypto cracked...__ Cryptocurrencies sit upon a three-legged stool. The first leg: public enthusiasm (culturally-driven momentum). The second: corporate validation (like company investments, or crypto payments support). The third: government regulation — or its lack thereof, a key element of crypto. Last week, Elon cracked the corporate validation leg. This week, China cracked the regulation leg. That doesn't mean the crypto stool is broken. But when any of the legs show cracks, prices tend to wobble.


Bitcoin’s big plunge: how it relates to Elon, China, and kitchen furniture

__Still retiling the bathroom...__ When lockdowns hit last March, Americans shifted their spending from restaurants and clothes to the only place that mattered: home. People re-painted kitchens, and bought enough scented candles to light a small town. We [thought](https://snacks.robinhood.com/newsletters/7Fl0kcKPHzNEVEVwnee0Zp/articles/3djXYQJYytx1qKMDTR9yG1/) the DIY House Hype might start slowing down *last May*. A year later, the House Hype is going stronger than ever. 

- __Wild:__ __[Home Depot](https://robinhood.com/stocks/HD)__'s sales soared 33% last quarter to $37.5B. For reference: Home Depot's quarterly sales growth for the same quarter in 2019 and 2018 was ~5%. Oh, and profit nearly doubled. 
-  __[Lowe's](https://robinhood.com/stocks/LOW)__ sales jumped 24% on the continued home improvement hype. 

__"I was lightning, before the lumber"...__ If Imagine Dragons wrote a home improvement song. Home Depot says there's a "storm environment" for lumber right now. That's partly thanks to the housing market boom and a reopening-driven building frenzy. Zillow-scrolling just got pricier...

- __Wild stat:__ Lumber prices have more than 4X'd in the past year. The surge has added [$36K](https://www.cnbc.com/2021/04/30/soaring-lumber-prices-add-36000-to-the-cost-of-a-new-home.html) to the price of an average new single-family home. 
- __Soaring lumber demand__ boosted Home Depot's sales, both to professionals (think: contractors) and DIY customers (think: Uncle Bobby).

Homey

__"Homevesting" has arrived...__ The initial House Hype was driven by spending to make our 24/7 biodomes more enjoyable. You had to stare at the bedroom wall all day, so you painted it pastel blue. As the US reopens, we're seeing a different kind of spending: "Homevesting." Home sales are hitting 15-year highs, so prices are soaring. Now, people are investing to level-up their precious homevestments. Home Depot's CEO thinks that's a great sign for the home improvement industry looking ahead. 


The House Hype lives on: Home Depot's killer earnings reveal something else, too

Dow Jones

S&P 500

Nasdaq

Bitcoin

🌀 Crypto's chaotic week 

__Cybertruck is shaking...__ Yesterday, President Biden visited __[Ford](https://robinhood.com/stocks/F)__'s Dearborn, Michigan plant to check out a shiny new toy: the all-electric F-150 Lightning pickup. Tonight, Ford will publicly reveal deets about the highly-anticipated EV. [Spoiler](https://www.detroitnews.com/story/business/autos/2021/05/18/biden-tour-ford-plant-dearborn-electric-vehicle-priorities/5133176001/) from Biden, who took it for a spin: "This sucker’s quick."  But there was more to Biden’s agenda than a joy ride...

- __Clean energy future:__ Biden pitched his $174B EV plan, part of his $2.3T [proposal](https://snacks.robinhood.com/newsletters/5LFeKLcW6vcwl0ortNgrtm/articles/4n7AMG2fFNs2TmR0EXgTgO/) to give US infrastructure a green makeover.
- __Chip-independence:__ Biden also advocated to move more chip production to the US, as the auto industry struggles with a shortage. 

__The Madonna of metal...__ Ford's F-150 (*non*-electric) has been the best-selling vehicle in the US for *39 years straigh*t. Ford sold nearly 800K F-Series vehicles last year, because America loves a good pickup...

- __Pickup trucks accounted for *half*__ of the auto industry’s top 10 best-selling vehicles last year. 
- __The three best-selling vehicles were *all* pickups__, and made up [13%](https://www.cnbc.com/2021/01/08/pickup-trucks-dominate-americas-10-best-selling-vehicles-of-2020.html) of all cars sold in the US last year. GM's Chevy Silverado was #2, and Chrysler's Ram was #3. 
- __Wild stat:__ Ford's annual sales from F-150s are more than Tesla's *total* yearly sales of all its models. 


Pickup

__This could be the first "EV ambassador"...__ Tesla gets a lot of hype, but it's not an "ambassador" for democratizing EVs across the US. CA accounts for 35% of Tesla's sales. Meanwhile, F-150 sales are strongest in red states, with Texas being its No. 1 market. Winning over F-150 owners means winning over America’s heartland — *and electrifying it*. That's exactly what Biden's trying to do. If F-150 owners like Lightning, it could be a turning point for EV adoption. 

Ford gives Biden a peek at the most successful car in American history (EV-style)

__When Bezos buys a lion...__ it comes with a whole movie studio. __[Amazon](https://robinhood.com/stocks/AMZN)__ is [reportedly](https://variety.com/2021/digital/news/amazon-mgm-acquisition-talks-9-billion-1234975168/?stream=top) in negotiations to purchase __MGM__ for $9B. This would be the 'Zon's biggest move yet into entertainment. Amazon has made big investments in Prime Video, which attracted 175M viewers over the past year. But Netflix still gets most of Hollywood's spotlight. With this acquisition...

- __Content:__ MGM has a major library. Think: 4K movie titles, from *James Bond* to *Rocky*.  It also has 17K TV episodes — from *The Handmaid's Tale* to *Real Housewives*.
- __Swagger:__ MGM is old Hollywood. Its historic name and titles would bring prestige to "newbie" Prime Video. 

__Coming to America...__ and the red carpet. Streamers are investing to become more Hollywood, less Chrome tab. In 2020, the 'Zon spent $11B on shows, movies, and music for Prime, up 40% from 2019. __[Netflix](https://robinhood.com/stocks/NFLX)__ spent more than *$17B* on content last year, mostly on originals. But it's deeper than content splurges...

- __Theaters:__ Netflix bought iconic theaters in Hollywood and NYC to premiere its Oscar-worthy films, like *Roma*. Last May, there were [rumors](https://snacks.robinhood.com/newsletters/3E2MYqmOkTAKbBTKPPKQw7/articles/4IOYTvbMXdjgzwwFYRqYdL/) that Amazon wanted to buy AMC. 
- __Awards:__ Netflix snagged 36 Oscar noms this year, the most of any studio. __[Disney](https://robinhood.com/stocks/DIS)__ won five, Amazon won two, and *Nomadland* — which premiered on Hulu — got Best Picture.


Action

__Streamers are becoming studios...__ In 2017, Netflix and Amazon [became](https://www.hollywoodreporter.com/news/general-news/amazon-netflix-score-first-streaming-service-oscar-wins-2017-salesman-white-helmets-980725/) the first streamers to ever win Oscars (and there was [pushback](https://variety.com/2019/film/awards/steven-spielberg-oscars-netflix-1203155528/)). Now, streamers are getting dozens of Oscar noms and spending billions on big originals. Meanwhile, studios are leaning into streaming. Think: Universal's Peacock, Warner's HBO Max, and Viacom's Paramount+ — plus, more direct-to-streaming releases. 


When streamers become studios: Amazon is reportedly in talks to buy MGM for $9B 

_Pickup Party in the USA [Leo Patrizi/E+ via GettyImages]_

🚘 Elon's Cybertruck has competition

__*90 Day Fiancé* meets GOT...__  __[AT&T](https://robinhood.com/stocks/T)__ is ditching the entertainment biz, leaving its media assets to fend for themselves. The telecom giant [reached](https://www.wsj.com/articles/at-t-to-combine-warnermedia-division-with-discovery-11621250928) a deal with __[Discovery](https://robinhood.com/stocks/DISCA)__ to combine their media assets into a new, publicly-traded company (name TBD). Meet the cast...

- __AT&T:__ Famous for its phone plans, but also for buying __WarnerMedia__ for $81B in 2018. That gave it CNN, HBO, TBS, and Warner Bros. In 2015, it snagged DirecTV. 
- __Discovery:__ Famous for reality shows like *Shark Week*, *Extreme Makeover*, and *90 Day Fiancé*. Its networks: Food Network, Animal Planet, HGTV, and... Discovery Channel. 

__Do you think you're better off alone?...__ If the deal is approved, AT&T will get $43B — around half of what it paid for Warner (womp). AT&T's media biz has [struggled](https://snacks.robinhood.com/newsletters/3VYgq4XRGydXCiWCpJd3rW/articles/5XPdRwH7GPf2fZGiyykxV5/) thanks to cord-cutting, streaming, and pandemic movie theater closures. In February, it sold a large stake in its DirecTV business. The Warner spin-off marks the end of AT&T's big bet on entertainment — which ended up costing it $93B. Some big plot points:

- __71%:__ AT&T shareholders' stake in the new company. Discovery shareholders get the rest.
- __$20B:__ How much AT&T and Discovery spend on content combined (more than Netflix). 
- __Two__ streaming services: HBO Max and Discovery+. TBD if they'll merge.

Finale

__Losing focus can be dangerous...__ especially in quickly-changing industries. AT&T lost more than money — it lost focus on wireless, which is going through a 5G revolution. Instead of just competing against __Verizon__ and __T-Mobile__, AT&T was *also* competing against __Netflix__ and __Disney__. Now, it'll need to spend tens of billions to match broadband/wireless investments made by Verizon and T-Mobile to upgrade their networks. This sale would help it do that, but it has already fallen behind. 


AT&T’s big experiment in entertainment is over (it's breaking up with Daenerys)

__Still haven't finished the Amazon 100-pack...__ While you were collecting crumpled-up masks from your car and purse, the CDC dropped a big one. On Thursday, America's public health agency [said](https://www.cnn.com/2021/05/13/health/cdc-mask-guidance-vaccinated/index.html) people who are fully Covid-vaccinated *don't* need to wear masks indoors or outdoors (except in certain cases). Fully-vaxed peeps (FVPs) also don't need to social distance. Companies moved quickly:

- __Unmasked:__ __Target__, __Starbucks__, __Chipotle__, __CVS__, __Walmart__, __Costco__, and TJ’s are allowing mask-free shopping for FVPs.
- __Half-masked:__ __Disney__ Orlando is letting FVPs roam mask-free in outdoor common areas (but not while waiting for Space Mountain — or riding it).
- __Full-masked:__ __Home Depot__, __Gap__, __Kroger__, and __Ulta__ are among those maintaining their mask precautions for now. 

__Mask on, mask off?...__ The answer may be as confusing as LA street parking signs. Plus, state and local laws take precedence over company policies (eg: FVPs can unmask in Starbs Miami, but not in LA). The new guidelines could encourage more Americans to get vaxed. But many stores aren't verifying vax status. That "honor code" comes with risks — especially to immunocompromised people. For companies...

- __Foot traffic:__ The guidelines could increase capacity and help bring customers back — *or* scare some away. Think: bar seating and regularly-spaced tables. 
- __Employees:__ The option to go mask-free during a long shift could help lure workers back (ICYMI, there's a [labor shortage](https://snacks.robinhood.com/newsletters/3o33BaDrVUn7Qvhf5sZumz/articles/2rjYa4D3zFcw5Zgdm33xCE/)). But some companies are still requiring *employees* to wear masks, while customers can go mask-free.


_Trying to understand new mask guidelines like [mediaphots/E+ via GettyImages]_

Unmask

__Companies can act like mini-governments...__ The hierarchy of health mandates has three layers: nation-wide (CDC), state and local (22 states still have mask mandates), and corporate. While government rules take precedence, companies can shape policies of places we visit every day. We'll see if "unmasked" vs. "masked" companies gain a leg up over each other — and if these rules-within-rules create public confusion. 

From Disney to Starbucks, companies are making their own (confusing) mask rules

🍿 AT&T says bye to GOT

__Check the math...__ Something strange is happening in US employment. 9M+ Americans are still unemployed, and companies are scrambling to hire as the economy revs up — *but they can't find enough people*. In March, job openings hit a record 8.1M... but exceeded hires by 2M+. And in April, the unemployment rate *jumped*. Now, companies are [boosting](https://www.wsj.com/articles/big-companies-woo-scarce-hourly-workers-with-higher-pay-bonuses-11620930575) wages to lure workers (and your Chipotle delivery just got pricier).

- __[Amazon](https://robinhood.com/stocks/AMZN)__ is now paying new hires an average starting wage of $17/hour (up from $15). It's also offering $1K signing bonuses. 
- __[Chipotle](https://robinhood.com/stocks/CMG)__ is bumping average pay for restaurant workers to $15/hour, and says employees can earn $100K/year after three years. Meanwhile, __[McDonald's](https://robinhood.com/stocks/MCD)__ is raising wages for 36K+ workers. 
- __[Uber](https://robinhood.com/stocks/UBER) and [Lyft](https://robinhood.com/stocks/LYFT)__, which are dealing with driver shortages, are offering large bonuses to get people driving. 
- __[Walmart](https://robinhood.com/stocks/WMT)__, aka: America's largest private employer, raised its average hourly wage to $15+.

__*Now add it up*...__ Average hourly earnings for private-sector employees rose by 21 cents to $30.17 in April, as companies struggled to hire. A few potential reasons workers aren’t returning:

- __Unemployment $$$:__ President Biden extended the  $300 extra/week benefit through September. Now, the [average](https://www.wsj.com/articles/millions-are-unemployed-why-cant-companies-find-workers-11620302440?mod=hp_lead_pos1) monthly unemployment payout is ~$2.5K (tax-free up to $10.2K). 42% of people receiving benefits earn more than they did at their jobs. 
- __Childcare:__ Only 60% of the largest US school districts were fully open in April, leaving some without childcare. Women [carried out](https://snacks.robinhood.com/newsletters/4FiPxYkU4FGEKs36P1LNJJ/articles/4kp1BqJkQIJqk2dJ3iMTuU/) the bulk of duties.
- __Corona:__ Workers are worried about catching Covid while rolling burritos side-by-side.


_"When Uber surge pricing never ends" [Henrik Sorensen/DigitalVision via GettyImages]_

__The Hiring Dilemma could have two outcomes...__ #1: it could help workers and the economy through rising wages — real wage growth has been [sluggish](https://www.pewresearch.org/fact-tank/2018/08/07/for-most-us-workers-real-wages-have-barely-budged-for-decades/) for decades. #2: it could become an Economic Dilemma. Wage growth could be canceled out by weaker purchasing power if prices continue to [spike](https://snacks.robinhood.com/newsletters/7HkkS4VanKbpTUDjbeQ51k/articles/5tVDiejV1yGV2RWElrSk28). Rising prices [especially](https://www.cnn.com/2021/05/13/economy/inflation-lower-income-households/index.html) hurt low-income households. The labor shortage could also slow econ growth. Workers will likely return as benefits expire and schools reopen — but businesses may find it hard to lower wages, which could result in downsizing. 

 The Hiring Dilemma: corporate America is raising wages to bring reluctant workers back 

__Retiled the bathroom (five times)...__ Fresh off the House Hype of 2020, __[Home Depot](https://robinhood.com/stocks/HD)__ and __[Lowe's](https://robinhood.com/stocks/LOW)__ report first quarter earnings this week. Home retailers *thrived* last year as home ownership rose, and we invested in our 24/7 biodomes — from $5 candles to pastel paint. Home Depot rode the DIY wave to its [best](https://snacks.robinhood.com/newsletters/2TDWxjOTY5rfmtK8uZVDWC/articles/6xBACHifKO398SwGZL49TI/) quarter in 20 years. Lowe's also saw jaw-dropping growth. Investors want to know if the House Hype continued... or cooled with reopenings.

__The Tractor Factor intensifies...__ Tractor legend __[John Deere](https://robinhood.com/stocks/DE)__ rolls up with earnings on Friday. In February, Deere reported a killer profit and boosted its outlook as farming and construction perked up. Since then, US manufacturing and home building has [boomed](https://www.barrons.com/articles/u-s-building-boom-is-sending-lumber-and-steel-prices-through-the-roof-51618482600), sending lumber and steel prices soaring (#flated). We'll see if Deere experienced greener pastures last quarter thanks to its construction machinery. 


Events

Coming up this week...

__Crypto carbon in the spotlight...__ Cryptocurrency prices plunged last week after a bombshell tweet from Elon: __[Tesla](https://robinhood.com/stocks/TSLA)__ will no longer accept Bitcoin payment, because it [burns](https://snacks.robinhood.com/newsletters/4xclkSJaYAU12PaicjZrLh/articles/4OCWE9kGhme60DCcKsfIUl/) too much fossil fuel. At one point, as much as $365B was wiped from crypto market value.  Now, Tesla is looking at altcoins that use <1% of Bitcoin’s energy. The big reckoning with crypto’s energy footprint could boost companies building greener crypto pipes… and potentially add volatility. 

__IPOh No...__ IPOs kicked off 2021 hot and heavy, raising a record $162B in the first quarter. But the momentum seems to be cooling: big IPOs like __[Bumble](https://robinhood.com/stocks/BMBL)__ and __[Coinbase](https://robinhood.com/stocks/COIN)__ have struggled in recent weeks, as many inflation-worried investors move away from high-growth stocks. Now, a few IPOs are getting [delayed](https://www.bloomberg.com/news/articles/2021-05-13/ipos-are-getting-delayed-as-market-volatility-spooks-debutants?srnd=premium&sref=q3KSFp38) as market volatility spooks companies.

Zoom Out

Stories we're watching...


- __[Hack](https://snacks.robinhood.com/newsletters/4G8N3WpBgRoMSpXHAML44t/articles/v7Ixe754ezFPvMk4gSHBw/):__ The US' largest fuel pipeline got hacked by "DarkSide," causing gas shortages and panic-buying. Aaaand: it had to pay a $5M ransom. 
-  __[AAPI](https://snacks.robinhood.com/newsletters/4xclkSJaYAU12PaicjZrLh/articles/4cJEgATKMsqbzHNdcLDEtg/):__ Asian American businesses have suffered “Twin Crises” and an outsized impact during the pandemic. 
- __[Swipe](https://podcasts.apple.com/us/podcast/hot-vax-summer-bumbles-friend-zone-bitcoins-hummer/id1386234384?i=1000521696564):__ Hot Vax Summer is coming, so we jumped into __[Bumble](https://robinhood.com/stocks/BMBL)__'s expectation-beating earnings (psst: it wants to friend-zone you). 

ICYMI

Highlights from last week...

💰  Why paychecks are getting bigger

__Technoking, or Cryptoking?...__ Elon Musk tweeted a bombshell on Wednesday: __[Tesla](https://robinhood.com/stocks/TSLA)__ will no longer accept __[Bitcoin](https://robinhood.com/crypto/BTC)__ payment for cars. Then: *as much as [$365B](https://www.cnbc.com/2021/05/13/bitcoin-btc-price-falls-after-tesla-stops-car-purchases-with-crypto.html) was wiped from cryptocurrency market value* (that loss = Mastercard's entire market cap). Elon is #concerned about Bitcoin's fuel-burning environmental impact (we [covered](https://snacks.robinhood.com/newsletters/18QR0SyWNU2shCThYbl30f/articles/35CXk15pizW3Ju68UBK6WO/) that last month). That's a major reversal from the Technoking's previous stance:

- __February:__ Tesla [invested](https://www.cnbc.com/2021/02/08/tesla-buys-1point5-billion-in-bitcoin.html) in $1.5B worth of Bitcoin, and started accepting it as payment for cars. Bitcoin soared on the news. Side note: is anyone *actually* buying Teslas with BTC? 
- __Wednesday:__ BTC payments = suspended. Tesla also won’t be selling any of its Bitcoin, but will only transact when “mining transitions to more sustainable energy.”
- __Yesterday:__ Bitcoin, __[Ethereum](https://robinhood.com/crypto/ETH)__, __[Dogecoin](https://robinhood.com/crypto/DOGE)__, __[Ripple](https://robinhood.com/crypto/XRP)__, and other cryptocurrencies plunged. 

__The EV senses a disturbance...__ Tesla is worried about the rapidly rising use of fossil fuels (like: coal) for Bitcoin mining and transactions. Bitcoin is a sneaky carbon emitter, because powering it requires much more electricity than other cryptos. Bitcoin mining computers verify the legitimacy of blockchain transactions, making quintillions of attempts per second to solve increasingly complex equations (aka: major energy suck).

- __Bitcoin alone__ accounts for [0.5%](https://fortune.com/2021/03/28/crypto-bitcoin-carbon-energy-consumption/) of global electricity consumption — more than entire countries like Argentina. A single BTC transaction generates the same amount of carbon as [~1M](https://digiconomist.net/bitcoin-energy-consumption/) Visa transactions.
- __In context:__ Bitcoin consumes [707 KWh](https://www.trgdatacenters.com/most-environment-friendly-cryptocurrencies/) of energy per transaction — that's 11X more than Ethereum, 38X more than Litecoin, and nearly 6,000X more than Doge. That's partly because the systems required to verify BTC transactions are more complex, and less energy-efficient.


_When Elon wants greener crypto mining [OJO Images via GettyImages]_

__The next phase in crypto mainstreamification...__ has arrived. The new trend of culturally-driven "coin crowding" is colliding with another trend: commitment to a clean energy future. Tesla said it's looking at other cryptos that use <1% of Bitcoin’s energy. Regardless of Elon’s next move, this has sparked a wider reckoning on crypto’s environmental impact — among individual investors, to climate-minded corporate investors. This shift could boost companies looking to make crypto’s infrastructure more sustainable. Like: Bitcoin-focused investment company __Seetee__ and the new, more eco-friendly network, __Chia__.


Crypto’s price collision: Elon’s green move spotlights Bitcoin’s environmental impact

__Lay down the stats…__ The pandemic has brought suffering for everyone, hitting small business owners especially hard. On a national scale, [34%](https://www.visualcapitalist.com/mapped-the-state-of-small-business-recovery-in-america/) of America’s small businesses have closed since January 2020. And Asian American-owned businesses have suffered an outsized impact: [according](https://www.nbcnews.com/news/asian-america/asian-american-owned-businesses-suffer-outsized-toll-pandemic-rcna678) to a recent report from the NY Fed, small firms owned by Asian Americans suffered more than those owned by Black, white, and Hispanic Americans.

- __~90%__ of small Asian-American firms lost sales last year, a rate higher than for other groups. 
- __~60%__: By the end of March, sales for Asian American businesses were down by [60%](https://www.jpmorganchase.com/institute/research/small-business/small-business-financial-outcomes-during-the-onset-of-covid-19#finding-4) from 2019 — compared to a ~50% drop suffered by others.

__Explain it…__ Only ~9% percent of firms owned by Asian Americans were financially “distressed” in 2019 — compared to 19% of Black-owned firms and 16% of Hispanic owned businesses. Despite starting the pandemic in a stronger financial position, Asian-American businesses suffered a heavier financial toll. A few reasons why...

- __Business type:__ Pandemic-related closures and restrictions were particularly hard on the restaurants, stores, nail salons, spas, and other service industries in which many Asian-owned businesses are concentrated.
- __Trouble accessing aid:__ Language barriers and a lack of banking relationships made it hard for some business owners to access government aid like PPP loans. 
- __Racism,__ violence, and prejudiced rhetoric blaming Asians for the coronavirus may also have contributed to business declines. Over the past year, there has been a disturbing uptick in violence and hate crimes against Asian-Americans. 
- __Geography:__ Asian populations are concentrated in states like NY, NJ, and CA, and in big urban areas — all of which have taken crushing financial hits.


AAPI

__Asian Americans have been facing “Twin Crises”...__ Economic struggle paired with racism amplified by the pandemic. Emily Yueh, a partner at McKinsey, [says](https://www.marketwatch.com/story/asian-american-businesses-are-dealing-with-two-viruses-reeling-from-racist-incidents-many-are-hurting-financially-during-covid-19-11613610159) that while causation is difficult to prove, there is a correlation between rising discrimination and the financial injury experienced by Asian businesses. Looking ahead, Asian businesses are also taking longer to recover relative to others. 

Asian American businesses have suffered “Twin Crises” during the pandemic

🚗 Elon's crypto collision 

__Started from the valley, now we here...__ __[SoftBank](https://robinhood.com/stocks/SFTBY)__ is the Japanese tech and telecom investment giant behind companies like __Uber__ and  __Alibaba__. A year ago, SoftBank [posted](https://snacks.robinhood.com/newsletters/6U1RbzmR4p7uaUZVMizhlT/articles/KZr5tV9gdPXsuOb1tpLZH/) a record-shattering $18B loss for its techy Vision Fund, as the value of its Uber and __WeWork__ stakes plunged. SB's precious unicorns were (literally) falling into the "Valley of Coronavirus" (see: [slide 50](https://group.softbank/system/files/pdf/ir/presentations/2019/earnings-presentation_q4fy2019_01_en.pdf)). Now...

- __Softbank posted a record $46B profit__ for its 2020 fiscal year, the highest *ever* for a Japanese company. 
- __That's *double*__ the previous record set by __Toyota__ — and $5B *more* than __Google__'s 2020 profit. Whoa. 

__“Producer of Golden Eggs”...__ how SoftBank [describes](https://group.softbank/system/files/pdf/ir/presentations/2020/earnings-presentation_q4fy2020_01_en.pdf) itself in its iconic decks. During IPO-Palooza, a few of SoftBank's biggest fund unicorns made splashy public debuts. As their valuations soared, so did SoftBank's investment gains (at least, on paper). As of March, its $100B Vision Fund had racked up $57B in  gains — 84% of which were unrealized (SoftBank didn't sell its shares).

- __Coupang__ (aka: the Amazon of South Korea) had the biggest US IPO of the year in March. SoftBank gained $24B from its 40% stake in the ecomm giant, which just [reported](https://www.investors.com/news/technology/coupang-stock-wavers-on-first-quarter-earnings-report-cpng/) strong quarterly sales.
- __DoorDash__, now SoftBank's third-largest Vision Fund winner, had a [monster](https://snacks.robinhood.com/newsletters/3dRtKJ3pIUtnX1yDSLVTJY/articles/47zqImTPv4BiAjpmDbiqv4/) December debut. It started trading at nearly double its IPO price (but has fallen since).

Boom

__SoftBank is going long...__ *on tech* (see: [300-year](https://www.cnbc.com/2019/05/19/masayoshi-son-genius-or-insane-maybe-neither.html) plan). Instead of selling shares, SoftBank is holding... *and adding*. Despite recent shakiness in the market, SoftBank is doubling down on tech investments — and shifting away from telecom. It tripled the amount of capital it has pledged to its second techy Vision Fund (which includes __Cameo__ and __Didi Grocery__). Meanwhile, SoftBank has sold billions worth of T-Mobile and Sprint shares. 

SoftBank's profit hits a national record, thanks to IPO-Palooza (but it's not cashing in)

__The Walmart of matching paper cups...__ and throw in some Baby Yoda napkins. Your #1 destination for birthdays, Mardi Gras parties, and last-minute Halloween costumes has survived the Zoom celebration era — and it's not just scraping by. 

- __[Party City](https://robinhood.com/stocks/PRTY) stock has soared 20%__ this week on expectation-beating earnings. January to March sales jumped 3% from 2020, and it's even projecting a profit this quarter. 
- __Revenge Celebrations:__ As the vax rollout continues and the economy reopens, more people are ready to "revenge" spend, travel, and celebrate... in person. Party City = epitome of the Revenge Economy. 

__Don't pop it...__ Party City has one important goal that's critical to its growth strategy: "*win in balloons*." After surviving the helium shortage of 2019, PC became obsessed with balloons "as a key driver of our differentiated brand experience."  

- __Happy 30th:__ PC brought "innovation" to its balloon biz, launching online-ordering, curbside pickup, and delivery of "balloon bouquets." Think: Insta-worthy birthday creations (your age is floating). 
- __Happy Anything:__ With reopenings picking up, Americans are eager to celebrate. And PC believes there's no shindig without helium-filled plastic. 


Partay

__Party City found a product to cure "seasonality"...__ For many companies, sales fluctuate predictably around the same time(s) each year. Think: boosted retail sales during Christmas (@CanadaGoose), and spiked seltzer sales in the summer. Party City is prioritizing balloons because they can be sold for *all* occasions (unlike Halloween costumes and July 4th decorations). Party is turning its stores into helium hubs because it wants to celebrate all year round — from the grad party, to the random reunion brunch. 

Party City stock soars as Zoom celebrations decline (and its balloon-obsession grows)

_SoftBank's unicorns emerging from the valley [Helen Alderton/Moment via GettyImages]_

🦄  SoftBank's (Google-status) profit 

__It's going Dow...__ and Wall Street yelled "timber" (thanks, Ke$ha). The industrials-heavy __[Dow](https://learn.robinhood.com/articles/13urVTf3GSQYdsr7Eq5fHL/what-is-the-dow/)__ index fell 1.4% yesterday, after closing last week at a record high. On Monday, the techy __[Nasdaq](https://learn.robinhood.com/articles/1GXPrecRfkSNp0aBblBSsL/what-is-the-nasdaq/)__ plunged  2.5%, dragging the whole market down. What's going on:

- __A widespread surge in prices__ is [spooking](https://www.cnn.com/2021/05/11/investing/dow-stock-market-today-shortages/index.html) investors, inspiring the "i word" (inflation). Inflation =  a general rise in the price level of an economy. Inflation concerns have lingered for months, but hit the market yesterday. 
- __Why investors worry:__ Spiking prices can decrease the purchasing power of a dollar (aka: your $1 gets you less). Investors are worried the Fed will raise interest rates sooner than expected to fend off inflation. 

__The entire drive-thru just got pricier...__ including the car. Supply chain and labor shortages are driving up prices of raw materials and consumer goods. Meanwhile, the Fed has added trillions to the money supply through stimulus packages and bond-buying sprees, adding to concerns. Some areas seeing notable spikes:

- __Raw materials__ and commodities like copper, steel, lumber, and corn, are hitting [record](https://www.cnn.com/2021/05/09/investing/stocks-week-ahead/index.html) prices as production quickly revs up.
- __Consumer packaged goods__  giants like __[General Mills](https://robinhood.com/stocks/GIS)__, __[Kimberly Clark](https://robinhood.com/stocks/KMB)__, and __[Smucker's](https://robinhood.com/stocks/SJM)__ [hiked](https://snacks.robinhood.com/newsletters/eto2AkKAyWnKqhapU8qK1/articles/62H1VZQ7fErOkYBzrT8WvO/) prices (on everything from diapers to peanut butter) for the first time since 2018, citing higher materials and production costs. 
- __Car prices__ hit [records](https://snacks.robinhood.com/newsletters/xxzKq0L1JKq9mrKPFzS8t/articles/4xe3n6XauflL6FPNIZ6knM/) thanks to the [Great Chip Shortage](https://snacks.robinhood.com/newsletters/31E6cwe7ndD6pM602Hiv9R/articles/3Nn6tVCu3oGQg2XsCbQmyc/), which is shutting down factories.
- __Poultry prices__ are at all-time [highs](https://www.wsj.com/articles/chicken-shortage-sends-prices-soaring-and-restaurants-cant-keep-up-11620302400?mod=business_lead_pos5), as demand for fried chicken sandwiches soars. Chicken nugget icon __[Tyson](https://robinhood.com/stocks/TSN)__ just [warned](https://www.thestreet.com/investing/tyson-foods-slides-ceo-sees-substantial-inflation-pressures) that "substantial" inflation pressures would hurt its profit margins. 


_The entire drive-thru just got pricier [Foodcollection via GettyImages]_

Pricey

__Everyone's asking: temporary or trend?...__ Is this a one-time price increase as the economy rebounds — *or*, the start of higher yearly inflation? Economists expect these rising costs are temporary. But if they become a trend, that could push the Fed to hike interest rates. Higher rates can make bonds and savings accounts more attractive than riskier assets (like stocks). They also increase the cost of borrowing, which can dampen growth. So far, the Fed has stayed committed to its low-rate policy. But investors worry rising prices could change that.

Falling stocks, rising prices, and inflation concerns (feat. fried chicken sandwiches)

__"Give my regards to Broadway...__ remember me to Herald Square!" (Macy's mood right now). __[Macy's](https://robinhood.com/stocks/M)__ flagship Herald Square location is one of the largest department stores in the world (think: 50 departments across 10 floors). Now, the mall OG wants to go even bigger — despite a rough, losing year that spurred it to [close](https://fortune.com/2021/01/05/macys-closing-45-stores-turnaround-plan/) dozens of stores. The ambitious [proposal](https://www.macysinc.com/news-media/press-releases/detail/1681/macys-inc-unveils-vision-for-renewing-its-flagship): 

- __Step 1: Transform Herald Square.__  Macy's is commiting $235M to improve the Herald Square subway stations, and “transform Herald Square and Broadway Plaza into a modern, car-free pedestrian-friendly urban space for New Yorkers and visitors.” *Bold*. 
- __Step 2: Put an office on it.__ Macy's wants to build a big commercial office tower on top of its Herald Square store (which can only happen after the area is rezoned — Step 1). Macy's says the proposal would support ~16K jobs.

__Not your typical "future of work"...__ For all the talk about permanent WFH, hybrid workspaces, and hologram colleagues, companies are still investing in office space. NYC [expects](https://www.nytimes.com/live/2021/05/10/business/stock-market-today?campaign_id=4&emc=edit_dk_20210511&instance_id=30579&nl=dealbook&regi_id=83712167&segment_id=57737&te=1&user_id=05114d149fce45660cf01aea64f5af7e#macys-herald-square) a boom in new office jobs, forecasting a return to pre-pandemic office employment  by the end of the year. NYC would get $250M in new tax revenue from the proposal. Macy's would get prime corporate real estate (that it can charge sky-high rent for).  

Shop

__Lean into your strengths (*creatively*)...__ Macy's understands physical retail, and it knows where tourists want to shop (Buddy the Elf worked at its Herald Square location). Now, Macy's is leaning into its strengths — boldly and creatively. Coincidentally, it was also one of the few departments stores that didn't go corona-bankrupt (see: JCPenney, Lord Taylor, Neiman Marcus). Last quarter, it even managed to turn a small profit. We'll see if "[revenge spending](https://snacks.robinhood.com/newsletters/2lFqgJt0AfN3zJsbqdxm7m/articles/17MF35F4AhEUwPGvF1qKzt/)" boosted its sales when it reports earnings next week.

After dozens of closures, Macy's has a bold plan to turn its flagship store into an NYC destination 

💰 Rising prices, falling stocks

__Screw it, we'll do it...__ on Zoom. In 2020, concert giant __[Live Nation](https://robinhood.com/stocks/LYV)__ saw its sales plunge 84% from 2019, because the nation was 0% live. *Last* quarter, Live Nation's sales were down 79% ("live factor" = still low). It's a sad tale... but Live Nation isn't crying to The Weeknd in bed. 

__Save your tears for another day...__ Live Nation stock jumped 4% yesterday after a Jefferies analyst [called](https://www.cnbc.com/2021/05/10/jefferies-upgrades-live-nation-to-buy-says-2022-will-be-a-big-year-for-the-return-of-concerts.html) it a pure-play reopening stock. Despite the massive sales plunge and big losses, Live Nation shares are trading higher *now* than they ever were *pre*-pandemic. Ariana Grande fans are having withdrawal, and Wall Street is upbeat about Live Nation's reopening potential, for two reasons:

- __Bad Bunny (2022):__ Live Nation is seeing the effects of "significant" pent-up demand for concerts, saying bookings are seriously booming. It has already booked twice as many shows for 2022 as it did in 2019.
- __Live (From Home):__ Last year, Live Nation invested heavily in streaming. It took a majority stake in livestreaming platform __Veeps__, outfitted 60 of its 289 concert venues with livestream tech, and announced a virtual concert series that launches this month. 

_Dreaming of The Weeknd 2022 [Flashpop/DigitalVision via Getty Images]_

Live

__Live Nation could be a "slingshot stock"...__ We're calling it slingshot potential. "Recovery stocks" are companies that could rebound to pre-pandemic levels. "Slingshot stocks" go a step further — they could *surpass* pre-pandemic levels. Live Nation says its concerts are returning stronger than they were in 2019. Plus, it now has a new source of sales to pad its balance sheet: live streaming. Another potential slingshot stock is __[Carnival](https://robinhood.com/stocks/CCL)__, which [says](https://www.travelandleisure.com/cruises/carnival-cruises-booking-numbers-2022#:~:text=Had%20in%202019-,Carnival%20Says%20It%20Already%20Has%20More%20Bookings%20for%202022%20Than,Carnival%20CFO%20David%20Bernstein%20said.) it already has more cruise bookings for 2022 than it did in 2019. 


Live Nation had a terrible quarter, but its stock soared on "slingshot" potential

__Like a bad LimeWire download...__ except way worse. Colonial is the largest fuel pipeline in the US — and it just got majorly cyberhacked. Colonial is what the East Coast runs on (besides Dunkin'): its 5.5K-mile system [carries](https://www.wsj.com/articles/cyberattack-forces-closure-of-largest-u-s-refined-fuel-pipeline-11620479737?mod=hp_lead_pos1&mod=article_inline) nearly half of the gas and diesel consumed on the East Coast. Over the weekend, that car fuel and heating oil stopped moving.

__SaaS's evil twin...__ Colonial was hit by a ransomware cyberattack, forcing it to temporarily halt all pipeline operations. Ransomware = hijacking computer systems and demanding payment for the release of the "hostage." The culprit is a hacking group called __DarkSide__ (makes sense). DarkSide is the evil alter ego of a software startup. Instead of kombucha, it drinks companies' tears.

- __The motive:__ Instead of selling Software-as-a-Service, DarkSide sells RaaS (Ransomware-as-a-Service) to criminals, who carry out the attacks. DarkSide [says](https://www.cnbc.com/2021/05/10/hacking-group-darkside-reportedly-responsible-for-colonial-pipeline-shutdown.html) it has no political motives, and is purely driven by $$$. 
- __The fallout:__ If the pipeline system is down for more than a few days, consumers will likely start to feel the pain. Think: rising gas prices and/or shortages. 
- __The PR move:__ DarkSide is now implementing "moderation" checks to make sure its clients don't debilitate companies that could cause societal problems. So thoughtful. 


Hack

__Cyberattacks aren’t only a threat to cyberspace...__ they're increasingly targeting critical infrastructure. Think: pipelines, power grids, hospitals, and schools. These "physical" attacks hurt their targets, but they also pose a wider threat to public security. For example, hackers could hijack pipelines' control valves and sensors. Software runs almost everything, so the risk is widespread. That's why government agencies and corporations are investing more heavily in tools to fight ransomware attacks. That could be a boon for cybersecurity companies like __[FireEye](https://robinhood.com/stocks/FEYE)__, __[Palo Alto Networks](https://robinhood.com/stocks/PANW)__, __[Zscaler](https://robinhood.com/stocks/ZS)__, and __[Fortinet](https://robinhood.com/stocks/FTNT)__. 

The US' largest fuel pipeline gets hacked by "DarkSide" (gas could get pricier)

🎸 Live Nation's slingshot moment

__Much wow, such coin...__ Crypto "mainstreamification" has reached a level that goes far beyond just Bitcoin. [14%](https://www.gemini.com/state-of-us-crypto) of the US population now invests in cryptocurrency, and American crypto owners could *double* in 2021. This year, __[Bitcoin](https://robinhood.com/crypto/BTC)__ has nearly 2X'd in value – and altcoins have seen even bigger rallies: __[Ethereum](https://robinhood.com/crypto/ETH)__ is up ~400%, and __[Dogecoin](https://robinhood.com/crypto/DOGE)__ has soared *13,000%*. According to a Gemini [survey](https://www.gemini.com/state-of-us-crypto): two-thirds of US adults who don't own crypto are "crypto curious.” ~60% of people who *do* own crypto rate their knowledge level as low.

__Not just Elon...__ A few factors seem to be contributing to "coin crowding" — aka: people pouring into various crypto coins. 

- __Retail investors__ have more access to crypto than ever through commission-free brokerages and crypto exchanges. Savings have been padded by stimulus checks, and many are sitting at home with free time. 
- __Institutional investors__ like banks, hedge funds, and corporations have been investing in Bitcoin — some even see it as a hedge against inflation. In March, __[Tesla](https://robinhood.com/stocks/TSLA)__ [said](https://www.reuters.com/business/autos-transportation/tesla-says-bitcoin-investment-worth-248-billion-2021-04-28/) its Bitcoin investment was worth $2.5B.
- __Cultural trends:__ Celebs like Elon, Lil Yachty, and Jake Paul have promoted Bitcoin and altcoins (see: Elon's SNL Doge [skit](https://www.youtube.com/watch?v=x5RCfQyTDFI)). Crypto convos are dominating social media, from Clubhouse to subreddits. And Bitclout "influencer coins" [are](https://www.benzinga.com/markets/cryptocurrency/21/04/20747194/how-bitclout-aims-to-let-people-bet-on-twitter-influencers-using-creator-coins) apparently a thing. 
- __Expanded uses__ of crypto and blockchain tech are fueling excitement. __[Paypal](https://robinhood.com/stocks/PYPL)__ is letting users shop at 26M merchants with crypto. Developers are building "[decentralized finance](https://snacks.robinhood.com/newsletters/2ljZrAfkicFWeqM3uRyEVF/articles/7pjZAtHAv8QEKdd9xnkN1R/)" apps on the  Ethereum blockchain — which is also used to mint those [viral](https://snacks.robinhood.com/newsletters/4CMp4ZxaXNDVcia7phbTi8/articles/2dLrCxa5wrlsuga9kmuKtF/) NFTs. 


_Mood: watching Elon and Miley on SNL [DigitalVision via GettyImages]_

Crowd

__“Coin crowding” is here...__ In January, Bitcoin made up 70% of total crypto value (which was $1T). As altcoins like Doge and Ethereum have rallied, Bitcoin now makes up less than 50% of crypto market cap — which has doubled to over $2T. Now, smaller altcoins like DigiByte, VeChain and SafeMoon are gaining traction. But the Fed just [warned](https://www.wsj.com/articles/covid-19-still-among-major-risks-to-financial-stability-fed-says-11620331219) that asset prices are vulnerable to significant declines if investor sentiment shifts. And it's possible that out of hundreds of coins, only a few might survive over time. It's a new, culturally-driven phenomenon with high volatility risk – and the long-term outcomes are still unclear. 

"Coin Crowding" has arrived — and it's not just a Bitcoin trend

__Mickey's back...__ __[Disney](https://robinhood.com/stocks/DIS)__ reports earnings on Thursday, two weeks after The Happiest Place on Earth reopened in CA. For a year, Disney has been a tale of two earnings: sales of its profit puppy Parks & Experiences [plunged](https://snacks.robinhood.com/newsletters/7kUCvPmXZ2AB4lOFC3m77C/articles/1FLj6gpv6tXolPZxSGju70/), because the only park we experienced was in a car. Meanwhile, streaming thrived thanks to Disney+, which hit 100M subs (half a Netflix). Investors want to know if Mickey can keep up strong subscriber growth. 

__Google Meet me in Miami...__  __[Airbnb](https://robinhood.com/stocks/ABNB)__ doesn't do room service, but it's worth more than __[Marriott](https://robinhood.com/stocks/MAR)__ and __[Hilton](https://robinhood.com/stocks/HLT)__ *combined* (its IPO was a bigger [blockbuster](https://snacks.robinhood.com/newsletters/5bz9qW2WXWRwJlMpsAJeyn/articles/3hbeTbZoN5WvRJteko4DaC/) than *Wonder Woman*).  Airbnb was resilient last year, despite the travel-pocalypse. US travel is picking up, and the work-from-anywhere life has you Zooming in from forest cabins. Airbnb's "single priority" now is prepping for a travel rebound. In Thursday's earnings, we'll see if that's panning out. 


__Bad timing...__ Last week, __[Pfizer](https://robinhood.com/stocks/PFE)__ and __[Moderna](https://robinhood.com/stocks/MRNA)__ reported chunky Covid vaccine earnings. Also: the Biden admin [supported](https://snacks.robinhood.com/newsletters/7smONUNjrn1RF9LBhEgLe7/articles/4GUGqbhYGdsfyMcKDiqUuK/) a proposal to temporarily waive IP protections for Covid-19 vaccines. Vax-makers' recipes would be public. Pharma companies [say](https://snacks.robinhood.com/newsletters/7smONUNjrn1RF9LBhEgLe7/articles/4GUGqbhYGdsfyMcKDiqUuK/) that *won't* help curb rising global Covid cases short-term, because of production challenges. Pfizer's CEO said patent-sharing would discourage innovation. On Friday, EU countries [pushed back](https://money.usnews.com/investing/news/articles/2021-05-07/eu-split-on-vaccine-waiver-idea-unlikely-to-take-clear-stance) on the proposal, too.

__Broke the streak...__ After falling for nearly 12 months straight, the US unemployment rate unexpectedly [jumped](https://www.wsj.com/articles/april-jobs-report-unemployment-rate-2021-11620332156) to 6.1% in April. 266K jobs were added last month — economists were expecting *1M* (womp). Millions of Americans are unemployed, but companies in industries like construction, manufacturing, and restaurants still [can't](https://www.wsj.com/articles/millions-are-unemployed-why-cant-companies-find-workers-11620302440?mod=hp_lead_pos1) find enough people to hire. Potentially holding workers back: child-care burdens, Covid fears, and boosted unemployment benefits.


- __[Ban](https://snacks.robinhood.com/newsletters/xxzKq0L1JKq9mrKPFzS8t/articles/S1MoP96NVK4Fxs70nHlr3/):__ __FB__'s Oversight Board delivered a precedent-setting Trump ban decision. Buuut: FB still needs to decide whether to *permanently* ban Trump. 
- __[App](https://snacks.robinhood.com/newsletters/5mrz8IgUB1Bjuc9ILsHQOj/articles/4GARoezVkzR6VmTXvlwEa1/):__ The heated __Epic__-__Apple__ trial kicked off last week — it could be a make-or-break moment for Apple's iPhone app control.
- __[Eats](https://snacks.robinhood.com/newsletters/7smONUNjrn1RF9LBhEgLe7/articles/2aGMAsFF7RhrjGK8g17FCy/):__ __Uber__ scored record quarterly bookings, because it's a food delivery company now. Eats = more than 60% of Uber's biz. 

👩‍🎤  Crypto "coin crowding" 

__*Another one*...__ (DJ Khaled). On Wednesday, __[Pfizer](https://robinhood.com/stocks/PFE)__ [delivered](https://snacks.robinhood.com/newsletters/2ljZrAfkicFWeqM3uRyEVF/articles/4ux3nBcOvqjyl5IY5JmZY5/) the first Covid-19 vaccine profit. Yesterday,  __[Moderna](https://robinhood.com/stocks/MRNA)__ delivered its first profit — *period*. 

- __$1.7B:__ Moderna's Covid vax sales from January to March — a major glow up from last year, when it made just $8M in *total* revenue. 
- __$1.2B:__ Moderna's big-shot profit. Pfizer did double Moderna's vax sales, but its vax profit is estimated at just $900M.

__Terrible earnings timing...__ On Wednesday, the Biden admin [announced](https://www.wsj.com/articles/u-s-backs-waiver-of-intellectual-property-protection-for-covid-19-vaccines-11620243518?mod=article_inline) it supports a WTO proposal to temporarily waive companies' intellectual property protections for Covid-19 vaccines, to help end the pandemic. The US was originally opposed, saying IP protection provides a key incentive for innovation. If the proposal passes, others could develop shots using public patents (without getting sued). Vax-makers' recipes would be open to all. 

- __The reasoning:__ New Covid cases are hitting global records. But as of mid-April, 87% of vax doses distributed went to wealthy countries. The WTO thinks sharing IP would allow poorer nations to develop vaccines.
- __The investor response:__ Moderna shares have plunged 10% since Wednesday, and Pfizer shares dropped 5%. J&J, which isn't taking vax profits, barely budged. 
- __The company response:__ Pfizer's CEO said patent-sharing would discourage companies from developing products for the next pandemic. The two who decided to profit from the vaccine (Pfizer and Moderna) were the fastest to get FDA-authorized. Moderna said the proposal won't affect it because it's *already* not enforcing Covid patents during the pandemic. 


__Recipes are valuable, but don't forget the chef...__ and the ingredients. Patents don't come with the ability to produce complex drugs at scale. Pharma companies say public patents won't help curb the pandemic short-term, because of the challenges that come with producing Covid vaccines. Including: setting up complex factories, securing scarce raw materials, and hiring skilled employees to operate new tech. Even Moderna and Pfizer haven't been able to scale fast enough to meet demand. 


Moderna drops its first profit, and the US (potentially) drops Covid-19 vaccine patents

__Call an XL...__ for the big stacks. __[Uber](https://robinhood.com/stocks/UBER)__'s bookings reached an all-time high of $19.5B last quarter, up 24% from last year. But don't call it a ride-hailing company — it's a food delivery company now. 

- __Uber's "core" rides biz__ saw bookings plunge 38% last quarter. 
- __Uber's food delivery__ bookings more than doubled from a year earlier. 
- __Wild stat:__ *Uber Eats now accounts for more than 60% of Uber's biz*. 

__Pizza > People...__ If you thought your ride to Girls' Night got pricier, that's because it did. Uber and Lyft are dealing with driver shortages. Prices are rising as riders return, while some drivers still prefer delivering pizza over (potentially contagious) people. Now, both are offering drivers incentives to return as demand picks up. 

- __Uber is already prepping__ for the decline of the delivery life. Last week, it [rolled out](https://www.wsj.com/articles/uber-tweaks-app-to-further-integrate-food-with-rides-11619622303?mod=article_inline) new features to further merge Eats with rides in-app. 
- __Uber + Udon:__ You can now pick up Uber Eats meals en route to your Uber destination (#inception). Or get Eats delivered by your home ETA. 


_"Your Uber and Udon has arrived" [E+ via GettyImages]_

Eats

__The gig cloud still looms...__ Despite Uber's food delivery win, total sales *fell* because of new driver benefits in the UK, where it was forced to [reclassify](https://snacks.robinhood.com/newsletters/1pA68KIKChD9WMr3DJ2OMP/articles/2sYAJhcq3cv7kMzg2aLfHE/) gig drivers. *Aaand*: it's still unprofitable. Last week, US Labor Secretary Walsh [said](https://www.marketwatch.com/story/gig-work-could-change-under-bidens-labor-secretary-and-heres-how-11620141865) he believes gig workers should be classified as employees in many cases. This week, the Biden admin said it's blocking a proposal that would make it easier for gig companies to continue classifying workers as independent contractors. Down the road, these stances could put the gig economy in danger ([again](https://snacks.robinhood.com/newsletters/7jMUu1TK8PviqbKCFjQhjC/articles/f06IOakKwXbXOcwTVNbjX/)).


🌀 Crypto's chaotic week

🚘 Elon's Cybertruck has competition

🍿 AT&T says bye to GOT

💰 Why paychecks are getting bigger

🚗 Elon's crypto collision

🦄 SoftBank's (Google-status) profit

💰 Rising prices, falling stocks

🎸 Live Nation's slingshot moment

👩‍🎤 Crypto "coin crowding"

💉 Vax patents for all