__Not the boat that blocked the Suez…__ But this company’s causing big issues, too. Real estate giant Evergrande’s shares sank 10% yesterday, contributing to a global stock plunge. Evergrande is the 2nd largest property developer in China, with a $30B market cap — but it owes $300B to partners. With $83M in payments due on Thursday, analysts worry Evergrande could default and affect the global economy. 

- __1.4M__ = Buyers waiting for their pre-purchased apartments to be built.
- __85%__ = Drop in Evergrande’s stock value in the last six months.
- __$8B__ = How much Evergrande raised this year — just $292B short of its debt obligations.  

__Charge it to the card…__ Evergrande entered the real estate biz right after China embraced private home ownership in 1998, when homes became a symbol of China’s booming middle class. But Evergrande borrowed heavily to grow, which led to a cash crunch when regulators started cracking down on debt last year. Evergrande has asked employees for loans and tried to pay bills with half-built houses. Now, all eyes are on regulators:

- __It wouldn’t be China’s first bailout…__ Regulators took over the once-thriving Anbang Insurance Group three years ago due to massive IOUs.
- __Too big to (fully) fail...__ Regulators let Evergrande renegotiate payment deadlines earlier this month, signaling their willingness to keep the company alive.

Bills

__It’s not the whale, it’s the splash…__ If a big fish like Evergrande goes belly up, its lenders and investors — including HSBC, BlackRock, and UBS — could lose big money. Businesses that work with it could also suffer (think: paint suppliers). But the ripple effects could be worse: Since three-quarters of China’s wealth is in real estate, Evergrande’s collapse could cause stock sell-offs across China’s real estate sector — or potentially a global sell-off, like Lehman Brothers’ collapse did in 2008. But, some analysts don’t expect Evergrande’s financial struggles to trickle into other parts of the world.

Chinese real estate giant Evergrande could cause global turmoil if it can’t pay its bills

__A Royal Flush…__ Netflix has taken its obsession with royal titles into the real world, bringing home the most gold at Sunday’s Emmy awards. For the first time,  streaming services won the most coveted categories, like Best Drama and Best Limited Series. 

- __Netflix__ won a whopping 44 Emmys for its original shows including “The Crown" and “Queen’s Gambit,” tying a record last set by CBS more than 40 years ago. 
- __AppleTV+__ became the first streamer to win Best Comedy for “Ted Lasso.” It was only the Fruit’s second-ever Emmy appearance.  
- __Disney+__ received 71 nods but only got the primetime gold for “Hamilton.”
- __HBO & HBO Max__ snagged 19 wins, including four for crime series “Mare of Easttown,” starring Kate Winslet.  

__Virtual rewind…__ Netflix first made its mark in 2007 when it ditched DVDs for digital play buttons. In 2013, its show "House of Cards" became the first online-only TV series to nab a primetime Emmy, setting the stage for other streamers. Fast-forward:

- __In 2019,__ Disney+ and AppleTV+ made their streaming debuts with originals like “The Mandalorian" and “The Morning Show.” Last year, HBO Max debuted with 10K hours of shows.
- __This year,__ director Steven Spielberg, who once tried to boot Netflix from the Oscars, inked a multi-year production deal with the Flix this summer.


_Netflix takes home the crown [roman makhmutov/Moment via GettyImages]_

Flixy

__(Original) Content is King…__ and streamers are serving it like royal scones. Streamers have prioritized original content as a way to dominate a field once ruled by Hollywood OGs. This year, the Flix will spend $17B on original content, up from $11.8B last year. Meanwhile, Amazon’s total content spend hit $11B last year. Netflix also plans to make 90 original films per year –3X more than Lionsgate’s most productive year. Beyond scale, Netflix has data on your viewing habits, plus a smart recommendation engine to keep you clicking “next."

Netflix reigns supreme at the Emmys as streamers double down on content at scale

Dow Jones

S&P 500

Nasdaq

Bitcoin

⭐️ The streaming Emmys

__Self-absorbed shopping spree...__ Last week, __[Microsoft](https://robinhood.com/stocks/MSFT)__'s board [approved](https://www.wsj.com/articles/microsoft-plans-60-billion-share-buyback-program-raises-dividend-11631720770) a plan to buy back as much as $60B of the company's own stock — the software giant's largest share repurchase program *ever*. Stock buybacks are (kind of) like gifts to shareholders: by reabsorbing their own shares, companies can potentially improve their stock prices by reducing the number of available shares. 

- __When shares outstanding decrease,__ investors' ownership in the company pie can increase. Think: owning 1 share out of 10 total, vs. owning 1 out of 5. 
- __Slightly awk:__ Microsoft shares are already sitting near records, and have soared 38% this year. But it's *also* sitting on a $130B cash pile, so it has money to spend. 

__Takeout or delivery?...__ Corporations have different options when it comes to spending extra $$$. They can invest it back into the business (think: hiring, R&D, building factories) — *or*, they can return value to shareholders through dividends and stock buybacks. Microsoft has used its ginormous cash pile to fund acquisitions, boost dividends, *and* do buybacks. Many companies flush with excess cash are doubling down on buybacks, too. 

- __Spending on buybacks increased much faster__ than capital expenditures (think: buildings, equipment) in the first half of 2021.
- __S&P 500 companies spent *more* on buybacks__ than on capital expenditures in the first half 2021. Share repurchases hit $370B, up ~30% from the first half of 2020. 
- __For example:__ __[Lowe's](https://robinhood.com/stocks/LOW)__, which thrived on the DIY [House Hype](https://snacks.robinhood.com/newsletters/7Fl0kcKPHzNEVEVwnee0Zp/articles/3djXYQJYytx1qKMDTR9yG1/), spent $6B on share repurchases — compared with barely $850M on capital expenditures. __[Target](https://robinhood.com/stocks/TGT)__, another corona-conomy thriver, recently [announced](https://www.marketwatch.com/story/target-earnings-and-revenue-beat-expectations-11629283071#:~:text=Target's%20board%20has%20authorized%20a,end%20of%20the%20second%20quarter.) *$15B* in buybacks.


Back

__The Big Buyback relates to the Big Shortage...__ Many US businesses are cash-rich, thanks to low interest rates on debt and strong earnings fueled by economic recovery. The problem: supply and labor shortages are limiting *how much* companies can invest back into their businesses. But the Big Buyback, which could be contributing to soaring stock prices, could hit speed bumps ahead: Democratic senators just [proposed](https://www.forbes.com/sites/jonathanponciano/2021/09/10/a-2-tax-on-stock-buybacks-is-being-proposed-by-democratic-senators-to-offset-their-35-trillion-budget-plan/?sh=7424ec77270c) a 2% tax on corporate buybacks to help fund the $3.5T US budget bill.


The Big Buyback: Microsoft is splurging $60B on its own shares, and it’s not the only one

__To boost or not to boost...__ With 65% of US adults fully vaxxed and Delta cases surging, President Biden hoped to start distributing __[Pfizer](https://robinhood.com/stocks/PFE)__ booster shots *this week*. But on Friday, scientists overwhelmingly [advised](https://www.nytimes.com/live/2021/09/17/world/covid-delta-variant-vaccine) the FDA *not* to recommend boosters for the general public — only for people 65 and older, and those at high risk. Third shots are already controversial since many countries still don’t have *first* shots. The FDA’s final decision on boosters is expected this week, and it usually follows scientists’ counsel. 

__Nemo’s loving the WiFi...__ __[Google](https://robinhood.com/stocks/GOOGL)__ just [completed](https://www.cnet.com/tech/google-finishes-3900-mile-subsea-cable-connecting-us-to-uk-and-spain/) a 3.9K mile-long undersea internet cable between the US and Europe. Since [98%](https://cloud.google.com/blog/products/infrastructure/announcing-googles-grace-hopper-subsea-cable-system) of global web traffic flows through undersea cables, e-giants like __[Facebook](https://robinhood.com/stocks/FB)__, __[Amazon](https://robinhood.com/stocks/AMZN)__, __[Microsoft](https://robinhood.com/stocks/MSFT)__, and __Huawei__ pay big bucks for bandwidth on shared cables. But Google’s cable is Google-exclusive, and can handle more traffic than all existing cables *combined*. As the cloud computing boom continues, internet giants will either compete to buy more bandwidth — or to build it.


Zoom Out

Stories we're watching...


__The Chipotle of homebuilding__... Instead of BYOB, __[Lennar](https://robinhood.com/stocks/LEN)__ and __[KB Home](https://robinhood.com/stocks/KBH)__  help you build-your-own-home. The housing market has been [#thriving](https://snacks.robinhood.com/newsletters/3W8LX1jIAswA4HFNTbvVHO/articles/4Fw8bHVeO2Nn0unnSjroHO/) since millions of Americans ditched city-living for pandemic-friendly suburbia. Demand is still sky high, with housing inventory sitting at 40-year lows. But last month, home sales dropped for the first time in over a year. We’ll see if homes are still booming when Lennar and KB Home, two of America’s largest homebuilders, drop earnings this week.

__Limited breadsticks…__ As eager foodies return to indoor dining, restaurants are having a hard time keeping up with demand. Supply chain and labor shortages have forced some eateries to trim menu items and shorten hours. And many small restaurant owners have [seen](https://www.cnbc.com/2021/09/17/inflation-labor-and-delta-variant-hit-restaurant-owners-goldman-sachs-data-finds.html) a surge in operating costs due to rising prices (#din-flation). Last quarter, __[Cracker Barrel](https://robinhood.com/stocks/CBRL)__ and Olive Garden-owner __[Darden Restaurants](https://robinhood.com/stocks/DRI)__ said sales were almost back to pre-pandemic levels. We’ll see if the rebound continued when they serve up quarterly earnings. 


Events

Coming up this week...

- __[Flyer](https://snacks.robinhood.com/newsletters/3aWztqHlVK88aCAOHKHyt5/articles/615L4UeXRNrBv69BPlY4ep/):__ Design startup __Canva__ notched a $40B valuation, making it the world’s most valuable female-founded and female-led startup.
- __[Hike](https://snacks.robinhood.com/newsletters/6273N36MQkF8DmmFKWXxCz/articles/2ocN7ACZMnCJkI07wU92mq/):__ House Dems proposed a $2.9T tax hike for high earners and big businesses to pay for President Biden’s $3.5T social agenda.
- __[Juicy](https://snacks.robinhood.com/newsletters/3aWztqHlVK88aCAOHKHyt5/articles/4UO2q0R1L2P5z8jG1RFv1f/):__  __Rivian__ became the first to bring a fully electric pickup truck to the consumer market, beating __[Tesla](https://robinhood.com/stocks/TSLA)__, __[Ford](https://robinhood.com/stocks/F)__, and __[GM](https://robinhood.com/stocks/GM)__ — who merely unveiled prototypes.


ICYMI

Last week's highlights...

_Corporate card: would you like $60B buy back? [YuriArcurs/E+ via GettyImages]_

💰 Microsoft's big buyback

__Just got served…__ And not in a yummy way. __DoorDash__ sued NYC over a law that requires food-delivery apps to give restaurants more data about customers ordering dumplings at 10pm. That would potentially enable your go-to pizza spot to deliver to you directly (hold the Dash). It’s the latest in a food feud simmering between delivery giants and NYC. Quick recap:

- __At the start of the pandemic__, NYC capped the fees that __DoorDash__, __Uber Eats__, and __Grubhub__ can charge restaurants at 15% — they were up to 30% — to keep your local spots  alive.
- __This summer__, the City Council made those caps permanent.
- __Early this week__: DoorDash, Uber Eats, and Grubhub sued NYC over the fee limits.
- __Now__: DoorDash sued NYC *again* over a law that requires delivery platforms share customers’ contact info with restaurants. 

__The profits are getting cold…__ Food delivery companies struggled to deliver profits even *before* the pandemic. Now, their fee-skimming biz model is under fire nationwide. DoorDash and Grubhub were sued by Chicago last month for using deceptive fees, and 70 of the 100+ pandemic-era fee caps across the country are *still* in place.

_New lawsuit delivery to: City Hall [Ivan Pantic via GettyImages]_

Served

__Cost effective =/= politically effective…__ In many cities, business isn’t just financial — it’s *political*. NYC loves restaurants because they employ thousands of full-time workers,  promote consumer spending, and generate tax revenue. NYC *doesn’t love* delivery platforms’ treatment of gig workers or its funneling of profits to distant corporate HQs. Since DoorDash and Uber are failing politically in NY, they need help from the courts to keep their businesses cooking. 

DoorDash files a 2nd lawsuit against NYC as the city prioritizes restaurants over delivery apps

__Sustainability is in session…__ Harvard announced it’s officially ending investment ties to fossil fuels after years of pressure from students, staff, and climate activists. Harvard’s $42B endowment fund is the largest of any school in the US — and is bigger than roughly *half* of the world’s economies. 

- __179 to 20__: # of Harvard faculty who voted for and against fossil fuel divestment. 
- __<2%__: Harvard had already ended direct investment in companies that extract fossil fuels, but a tiny percentage was still indirectly invested — now, Harvard’s letting those “[runoff](https://www.thecrimson.com/article/2021/9/10/divest-declares-victory/).” 

__ESG Domino Effect…__ While the sustainability movement appeals to a wide range of people, younger generations have been among the most *vocal* supporters. During a Harvard vs. Yale football game, 200+ students stormed the field to protest the school’s fossil fuel investments. This year, a student activist group filed an official complaint with the state’s Attorney General. Dominos are falling:

- __2020__: The University of California became the largest college to go fossil fuel free.
- __-90%__: How much Stanford has reduced its fossil fuel investments since 2011.


GreenU

__Institutions may have to go green to get peace...__ Harvard’s landmark decision is yet another example of ESG investing's momentum (Environmental, Social, and Governance). As Millennials and Gen Z are expected to inherit $61T over the next 20 years, companies will need to attract their investment bucks. For higher education, ESG may be one way of satisfying climate conscious students while setting the stage for a new wave of endowments. 

The collegiate domino effect: Harvard ups its ESG credentials by divesting from fossil fuels 

🌯 DoorDash delivers a lawsuit

__Presentation deck looking like a Picasso...__ Sydney-based startup __Canva__ wants to make graphic design accessible to non-design pros. You might've used it to create snazzy flyers, Insta carousels, and that presentation you forgot was due yesterday. Those DIY design templates just helped Canva [raise](https://techcrunch.com/2021/09/14/canva-raises-200-million-at-a-40-billion-valuation/) $200M at a whopping $40B valuation, *up from $15B barely five months ago*. 

- __The big $40B:__ With its new valuation, Canva is now the world’s [most valuable](https://fortune.com/2021/09/15/the-rise-of-the-worlds-most-valuable-female-led-startup/) female-founded and female-led startup — and  the world's fifth-most valuable private startup.  

__Like a blank Bob Ross canvas...__ Canva went 0 to 60 real quick. CEO Melanie Perkins and her team launched Canva as a free product in 2013, and eventually introduced "freemium" and enterprise layers. Canva now has: 

- __60M__ monthly users across 190 countries, double what it had just over a year ago. And it's not just individuals looking for design help...
- __500K+__ teams pay for Canva, including corporate giants like Salesforce, Marriott, PayPal, and American. In 2019, Canva [said](https://techcrunch.com/2019/10/16/canva-now-valued-at-3-2-billion-launches-an-enterprise-product/#:~:text=More%20than%2020%20million%20users,to%20be%20on%20the%20platform.) *85%* of Fortune 500 companies use it.
- __$1B:__ Canva has been [doubling](https://www.bloomberg.com/news/articles/2021-09-14/canva-vaults-to-40-billion-value-as-online-collaboration-surges?sref=q3KSFp38) its revenue each year, and is expected to exceed $1B in annualized revenue by the end of 2021.


_The world is your canvas [Westend61 via GettyImages]_

__Canva is fuel for the era of “Tap-anomics”...__  We've gone from in-store shopping, to Instagram shopping. During the pandemic, corporate America realized the importance of tap-ability: the number of "taps" companies receive is closely related to their posts' *aesthetic*. Companies don't need to hire a million pro designers — they just need professional-looking designs that are easy for employees to collab on. That simplicity helped Canva notch its eye-watering valuation. 

Design startup Canva notches a massive $40B valuation in the era of "tap-onomics"

__Sorry, Elon…__ Earlier this week, __Rivian__ produced the first electric truck that will actually end up in customers’ driveways — competitors like __[Tesla](https://robinhood.com/stocks/TSLA)__, __[Ford](https://robinhood.com/stocks/F)__, and __[GM](https://robinhood.com/stocks/GM)__ merely unveiled prototypes. The e-truck startup has raised $10.5B+ from investors including __[Amazon](https://robinhood.com/stocks/AMZN)__ and __Ford__, and is [seeking](https://www.theverge.com/2021/8/27/22644601/rivian-ipo-november-december-filing-amazon-ford) to go public at an $80B valuation. The deets on its R1T pickup:

- __Fully charged:__ The R1T has a range of 314 miles per charge and starts at $68K — a longer range, but higher price tag than most upcoming e-trucks.
- __Fully stocked:__ R1Ts come with off road-ready air compressors, built-in drink coolers, 11K pound towing capacity, and tailgates that can be lifted via app — bound to impress at any MIT tailgate.
- __Ready to roll:__ R1Ts trucks are now certified for sale in all 50 states. Rivian expects deliveries to start this month.

__A truckload of competition…__ Some analysts expect the e-truck industry will more than double between 2020 and 2026. Large automakers like __Ford__, __GM__, and __Tesla__ have spent years developing smaller EVs. But by staying laser-focused on trucks, Rivian crossed the e-truck finish line first. Others are expected to follow:

- __Tesla__ expects to start production of its $40K __Cybertruck__ in 2022.
- __[Lordstown](https://robinhood.com/stocks/RIDE)__ plans for limited production of its $55K __Endurance__ this month. 
- __GM__ says production of its $113K __Hummer EV__ will begin later this fall.
- __Ford__ hopes to start producing its $40K all-electric __F-150 Lightning__ in 2022. The *non-electric* version has been America’s top-selling vehicle for 39 years straight.


__Trucks could be the real EV ambassadors…__ America may be the home of the brave, but it’s also the land of the F-150. Pickup trucks accounted for *half* of the US auto industry’s top 10 best-selling vehicles last year, and the three best-sellers were *all* pickups. The best bet for automakers to pull Americans into an EV future could be towing them there... with e-pickups. If the US builds as many EV charging stations as Biden hopes, the success of e-truck makers may come down to pricing, timing, and range.

Rivian is the first to bring an e-pickup to market — but the truck wars are just beginning

🖼 Canva's big $40B

__13th time’s the charm…__ Is it though? __[Apple](https://robinhood.com/stocks/AAPL)__ dropped a new iPhone at its [launch event](https://www.cnbc.com/2021/09/14/apple-event-iphone-live-updates.html) yesterday, but Fruit-heads hoping for dazzling news iProducts may be disappointed by marginal upgrades. A few highlights: 

- __Oscar-level selfies:__ iPhone 13 features improved cameras with cinematic video features, better graphics, and a bigger battery. Price didn't budge: still $799 for the mid-range — or $33/month in installments. 
- __Fewer ways to lose your stuff__, thanks to new accessories, like a leather MagSafe wallet that connects to Apple’s “Find My” network.
- __More ways to sweat__ using the new Apple Watch 7, including Group Fitness classes, a calorie tracker for indoor cyclists, and a new crash alert system for outdoor bikers. 

__The apple of Apple's eye…__ Still iPhone. iPhone sales make up over half the Fruit's total, though they slowed in 2019 and 2020. This year, sales soared as the new 5G-enabled 12 fueled an upgrade cycle. While iPhone sales have slowed quarter-to-quarter, Apple is hoping the new model + jacked-up services will rev up demand for its precious hardware. 


_It's a bigger battery [Klaus Vedfelt/DigitalVision via GettyImages]_

Club

__Easier to walk in, harder to leave…__ By keeping iPhone prices flat and offering accessible installment payment options, Apple’s making it easier to walk into “Club Apple.” And it's making it harder *to walk out*. Apple is expanding its connected ecosystem, getting customers hooked on original content like *Ted Lasso* and services like Fitness+. That way, the world’s most valuable company could continue growing with some relatively simple additions.

The iPhone 13 may not be a jaw-dropper, but it's still getting harder to leave Club Apple

__Lay down the stats…__ Hispanic and Latino Americans are still far from the pandemic recovery finish line. The community has been disproportionately affected, both from economic and health standpoints. Latinos account for [over half](https://www.nbcnews.com/news/latino/latinos-account-half-countrys-population-growth-rcna1667) of the US' population growth over the past decade, and make up ~18% of the total population — but represent nearly [30%](https://www.tampabay.com/news/2021/08/05/new-study-affirms-that-pandemic-hits-hispanics-harder-than-others/) of coronavirus cases.

__The pandemic effect…__  Hispanics have a [higher](https://www.cnbc.com/2021/08/06/unemployment-rate-falls-but-is-higher-for-black-and-hispanic-workers.html) labor force participation rate than any other US demographic. But Covid sparked a sharp surge in unemployment — and the economic effects still linger today. That’s partly because Latinos are disproportionately represented in industries that were hardest hit, like restaurants and hotels. With Hispanics already earning [26%](https://www.cnbc.com/2021/08/06/unemployment-rate-falls-but-is-higher-for-black-and-hispanic-workers.html) less than their white counterparts pre-pandemic, elevated unemployment has been even harder to endure financially. 

- __Today:__ While the Latino unemployment rate is falling, it was [6.4%](https://www.cnbc.com/2021/09/03/black-unemployment-rises-in-august-jobs-report.html) in August — compared to 4.5% for white Americans, 4.6% for Asian Americans, and 8.8% for Black Americans. 
- __Still…__ Over the course of the pandemic, Latinos have become [more optimistic](https://www.pewresearch.org/race-ethnicity/2021/07/15/for-u-s-latinos-covid-19-has-taken-a-personal-and-financial-toll/) about the country's direction and the situation of US Latinos.  
- __As one of the largest and fastest-growing__ populations in the US, the Latino community has seen major economic growth over the past decade.


__There's more growth ahead…__ Hispanic Americans saw [faster](https://www.bloomberg.com/opinion/articles/2020-10-06/hispanic-american-incomes-rising-faster-than-any-other-group-s?sref=q3KSFp38) income growth than any other major demographic group from 2014 to 2019. Despite pandemic challenges: in the past two-years, Latino-owned businesses grew revenue at an average rate of [25%](https://www.nbcnews.com/news/latino/latino-owned-businesses-are-seeing-record-growth-big-banks-are-n1256884) per year, vs. 19% for white-owned businesses. The young and educated Latino labor force is expected to continue driving growth for the US economy. Case-in-point: If the US Latino market was its own country, it'd be the [8th-largest](https://www.forbes.com/sites/seansalas/2020/09/27/the-26-trillion-us-latino-market-the-largest-and-fastest-growing-blindspot-of-the-american-economy/) economy in the world. 


The pandemic effect on Hispanic Americans: looking back, and looking forward

🍎 Apple's new(ish) gadgets

__VIP pug life…__ A bombshell WSJ [report](https://www.wsj.com/articles/facebook-files-xcheck-zuckerberg-elite-rules-11631541353) revealed __[Facebook](https://robinhood.com/stocks/FB)__ rolled out the moderation red carpet for at least 5.8M celeb users — including Donald Trump, Elizabeth Warren, soccer star Neymar, and even Doug the Pug. The drama revolves around a secret program known as “XCheck,” which shields millions of VIP users from FB's normal moderation process — kind of like an invisible verified badge. 

- __For "regular" users,__ AI usually scans posts for rule-breaking content and quickly removes it if there’s an infraction. Meanwhile...
- __XCheck accounts__ are placed on a "whitelist" that allows them to post without the same level of scrutiny or repercussions (the moderation equivalent of bottle service).

__Reporting politicians...__ It happens. Famous people get reported more than Berta from Oregon, even if their posts aren't flag-worthy. XCheck was conceived as a quality-control measure for actions taken against these high-profile accounts. 

- __The problem:__ XCheck only reviewed A-lister content *less than 10% of the time*, according to WSJ. For example: In 2019, Neymar posted naked images of a woman who accused him of sexual assault. 
- __Due to XCheck bias,__ 56M Facebook and Insta users saw the post before it was finally removed. While FB admits XCheck has flaws, it’s still not technically liable for its users' posts because of [Section 230](https://snacks.robinhood.com/newsletters/34Yw0kPPDSo5aJBnQRKCXN/articles/5pdRGmSLIP5qovztp6wkY/). 


_XCheck status [Hill Street Studios/Stone via GettyImages]_

Celeb

__This drama adds fuel to the fire…__ the *big*, familiar fire. Social giants like FB and __[Twitter](https://robinhood.com/stocks/TWTR)__ have been accused of letting abusive content run rampant, not applying moderation policies equally, and acting more like editors than social platforms. The mishandling of XCheck gives ammo to legislators who’ve argued for years that social giants should bear more liability for users' posts. TBD if they ever will.

Facebook's secret moderation program exempts some celebs from usual posting restrictions

__A taxing weekend…__ House Democrats [proposed](https://www.wsj.com/articles/democrats-release-details-of-tax-increase-11631539532) a plan to raise up to $2.9T in tax dollars over the next 10 years, the biggest tax hike in decades. The goal: pay for Biden’s ambitious $3.5T plan to expand America’s social safety net and combat climate change. Lawmakers plan to vote this week on the proposals. Whose taxes would be affected:

- __Individuals__ who make $400K+ per year and married couples that make $450K+ would pay higher taxes on income and capital gains — nearly 40% on income vs. the current 37%.
- __Corporations__ that make more than $5M in income/year would pay a 26.5% tax rate, up from  21%.
- __Small businesses__ that make less than $400K/year would pay *lower* taxes (18%). 

__9 am hike up Capitol Hill…__ Expect some sweat. Democrats don’t need Republican support to pass the plan — but they’ll need just about every Dem vote. Progressives are committed to the plan, even though the tax hikes aren’t as high as Biden's original pitch. But some moderates like Joe Manchin aren’t sold. 

- __Pros:__ The plan could raise trillions of dollars to rebuild America's aging infrastructure, fight climate change, invest in public housing, and expand public education.
- __Cons:__ It could stifle economic growth — think: reduced corporate hiring and investment. The US could also [lose](https://snacks.robinhood.com/newsletters/2FGYY02td4t3rp9KjKvLQM/articles/1d7eiIZp8iwgUI9aKXGIQZ/) corporate investment activity to countries with lower tax rates. 

Hike

__Higher corporate taxes = lower corporate profits…__  which could mean falling stock prices, at least in the short term. Stocks soared in 2017 when ex-President Trump cut corporate taxes, making companies more profitable overnight. Biden’s tax increase would partially roll back those cuts, reducing the cash companies keep as profit. Since stock prices often reflect investors’ expectations of future returns — think: dividends, cash flow, rising prices — lower profits could mean lower expectations.

Dems propose $2.9T tax hike for high earners and big businesses to pay for Biden’s $3.5T agenda

⭐️ Facebook's secret celeb list 

__ABC, easy as…__ ESG? Socially responsible investing, aka ESG (or environmental, social and governance) investing, has boomed recently. ESG criteria — like a company’s enviro-impact, board diversity, and/or exec compensation —  is used by some firms and investors to evaluate companies for funds or personal portfolios. S&P Global, Bloomberg, and Moody’s are a few of the companies that rate and measure ESG performance.

__Spell it out…__ Like with most stock purchases on public markets, people aren’t *directly* funding ESG-conscious companies when they buy their stock. But investors gain voting rights that could help companies make better decisions. Increasingly, people are using their values and ethics to guide investment choices — especially Millennials. 

- __10X:__ Investors contributed $51B to sustainable funds in 2020, compared to less than $5B five years ago.
- __90%__ of Millennial investors say they believe in sustainable investing, according to a 2019 [report](https://www.morganstanley.com/pub/content/dam/msdotcom/ideas/sustainable-signals/pdf/Sustainable_Signals_Whitepaper.pdf).
- __$285B:__ How much ESG funds [grew](https://qz.com/guide/esg/) last year — nearly double their 2019 value. 

__Lean in to green…__ This month, the SEC said it may require companies to report climate-risk info along with their annual earnings. Think: emissions metrics and progress toward climate goals. In recent years, companies have been doubling down on ESG initiatives — *especially* environmental ones. Big Tech companies are the largest allocations for most ESG funds. __[Amazon](https://robinhood.com/stocks/AMZN)__ pledged to become carbon neutral by 2040, __[Microsoft](https://robinhood.com/stocks/MSFT)__ committed to become carbon-negative by 2030, and __[Google](https://robinhood.com/stocks/GOOG)__ bought enough wind and solar energy in 2019 to power 500M European homes.


_Up close and personal with ESGs [David Trood/ DigitalVision via GettyImages]_

__The next step in ESG is validation…__ Many aspects of ESG investing still aren't well-defined. Dozens of sources share company ESG scores, but many use different criteria that can be tough for companies to measure. It can also be hard to measure ESG investing’s impact: One study found that increasing ESG investment didn't lead companies to reduce pollution, or improve workplace safety or board diversity. The next step is having clearer, standardized criteria to assess ESG investments — and keep companies accountable.

The ESG boom: “ethical investing” has taken off – but what does it actually mean?

__Shots in the hot seat...__ Last week, President Biden ordered companies with 100+ employees to require employee vaccinations or weekly testing. __[Amazon](https://robinhood.com/stocks/AMZN)__  praised the move, while __[Nike](https://robinhood.com/stocks/NKE)__ and __[Target](https://robinhood.com/stocks/TGT)__ questioned America’s ability to meet the requirement. Some smaller employers and Republican politicians criticized the mandate as costly overreach. Meanwhile, others like __[United Airlines](https://robinhood.com/stocks/UAL)__ and __[Tyson](https://robinhood.com/stocks/TSN)__ have already passed vax mandates. We’ll see how companies approach implementation.

__Prime cap and gown...__ __[Amazon](https://robinhood.com/stocks/AMZN)__  offered to pay full college tuition at select schools for 750K+ employees, in a push to attract workers in a tight labor market. The US has a record 10.9M job openings, but 8.4M Americans are still unemployed. __[Walmart](https://robinhood.com/stocks/WMT)__ and __[Target](https://robinhood.com/stocks/TGT)__  began offering college tuition perks  earlier this summer, __[Uber](https://robinhood.com/stocks/UBER)__ and __[Lyft](https://robinhood.com/stocks/LYFT)__ debuted huge bonuses to attract drivers, __[Chipotle](https://robinhood.com/stocks/CMG)__ and __[McDonald’s](https://robinhood.com/stocks/MCD)__ raised wages, and some big banks even offered employees free Pelotons. TBD if the perks will work.


__The core of the Apple…__ Tomorrow, __[Apple](https://robinhood.com/stocks/AAPL)__ is expected to drop the iPhone 13 and other new tech goodies at its big launch event. iPhone sales consistently make up over half of the Fruit's total, but they fell in 2019 and 2020. *This* year, iPhone sales soared as the new 5G-enabled iPhone 12 fueled a sweet upgrade cycle — but they’ve slowed quarter to quarter. We’ll see if the iPhone 13 has the specs to rev up demand.

__Here comes the sun…__ energy. Solar energy powers 3% of the US electric grid, but Biden wants it to power *nearly half* by 2050 — which would require solar infrastructure to double each of the next four years, and again by 2030. It’s potentially brilliant news for solar battery makers like __[Tesla](https://robinhood.com/stocks/TSLA)__ and __[Panasonic](https://robinhood.com/stocks/PCRFY)__, and solar panel producers like __[First Solar](https://robinhood.com/stocks/FSLR)__ and __[JinkoSolar](https://robinhood.com/stocks/JKS)__, the world’s largest panel-maker. JinkoSolar’s earnings this Wednesday could shed light on momentum in the solar biz.


- __[Shade](https://snacks.robinhood.com/newsletters/IoFpxzaCMWYIRwnWz8IHa/articles/6aRpVMxqEwEvfe2Crkv3qp/):__ Another day, another Zucking. __Facebook__ partnered with Ray-Ban to launch “Stories,” smart glasses that shoot videos, play music, and *aren’t* FB-branded.
- __[B-Day](https://snacks.robinhood.com/newsletters/16uFOszfvdJpLmfPxuN8cQ/articles/1VGWOHosnNxOoSHGQ0xRm/):__ El Salvador became the first country to adopt __Bitcoin__ as a national currency. It's the first big coin experiment, and the stakes are *high*.
- __[Blood](https://snacks.robinhood.com/newsletters/1FAijBlzaHGLZcAV5Dg4Rm/articles/4cHeVkQK4qzzwBVhLUqqOV/):__ The trial of Elizabeth Holmes, disgraced founder of blood-testing startup __Theranos__, kicked off last week— “fake it till you make it” culture is also getting heat.

🌎 The ESG investing boom

__*Throwing major shade...*__ First, __[Facebook](https://robinhood.com/stocks/FB)__ copied (aka: #Zucked) __[Snap](https://robinhood.com/stocks/SNAP)__'s stories  on Insta. Then, FB [announced](https://snacks.robinhood.com/newsletters/20h2lIyDiEHNUxZmIBTfPu/articles/4mgk5kAhdN1WxA59eWKcKo/) plans to launch a smartglass rival to Snap Spectacles. *Yesterday*, FB [unveiled](https://about.fb.com/news/2021/09/introducing-ray-ban-stories-smart-glasses/) those smartglasses — *and they're called "Stories."* FB teamed up with Italian glasses giant __Luxottica__ to launch Ray-Ban branded glasses. FB's first smart glasses are about everything the selfie stick *isn't*: first-person perspective. 

- __Capture:__ Say "Hey Facebook" or press a button to shoot photos and videos (up to 30 secs). Tiny lights let others know when you're recording. *Not* included: AR features.
- __Post:__ Share content to social apps like Insta and TikTok through the FB View App, or save to your camera roll. FB is envisioning [Latte Art](https://www.facebook.com/facebook/videos/2981541412094376/) tutorials. 
- __Hear:__ Listen to music or take phone calls from open-ear speakers. 
- __Pay:__  Stories start at $299 — in the same range as luxury "dumb" glasses. They'll be available in 20 style combos online and in stores like LensCrafters and Sunglass Hut.

__Lab goggle vibes...__ Smart glasses are Big Tech's holy grail, but all efforts have flopped so far: "Google Glass" was an epic fail. Snap lost $40M on 300K unsold AR Spectacles. But FB's smart glasses have one key advantage: they don't *look* like smart glasses.

- __Italian style:__ Luxottica’s chief wearable officer Rocco Basilico, who cold emailed Zuck about the glasses collab, [says](https://www.google.com/url?q=https://www.theverge.com/2021/9/9/22662809/facebook-ray-ban-stories-camera-smart-glasses-hands-on&sa=D&source=editors&ust=1631224633389000&usg=AOvVaw1W1hVZx_ngqAUytZVmvDTm) Stories aren't just a tech gadget, "but something sexy.” Peep this snazzy [video](https://about.fb.com/news/2021/09/introducing-ray-ban-stories-smart-glasses/), starring Basilico and Zuck.
- __American dreams:__ FB hopes to expand Stories into AR, overlaying graphics onto IRL vision. One day, FB hopes AR glasses will be as widely used as smartphones.  


Shade

__FB’s big opportunity = unbranding itself...__ Stories look like Ray-Bans, *not* FB-branded gadgets — unlike FB's other hardware, Oculus and Portal. While FB supplies the tech, Ray-Ban handles the design and sales — a key difference from other tech-designed smart glasses. FB has [admitted](https://www.axios.com/facebook-trust-deficit-digital-wallet-0c89e71b-9aad-4864-97a4-7bec3828051f.html) it has a public "trust deficit." By partnering with a well-loved brand, FB is giving Stories a higher chance of success. 

Facebook unveils its first smart glasses, designed by Ray-Ban: why un-branding is key

__Beautiful (cell) reception...__ __[Verizon](https://robinhood.com/stocks/VZ)__ is celebrating in the endzone. Yesterday, the NFL and Verizon announced a 10-year 5G partnership. By installing faster 5G connectivity in NFL stadiums, Verizon wants to foster new in-person experiences for football fans. 

- __Better than a jumbotron:__ Fans in stadiums can now see seven different live angles and AR overlays of Next Gen Stats on 5G-enabled phones.
- __Game tickets > couch tickets:__ The NFL hopes to get fans off the couch and buying $300 tickets by offering a live experience *plus* at-home stats and insights.
- __Gameday exclusives:__ Verizon gets a chance to show off its fresh 5G capabilities, and potentially poach fans from __[AT&T](https://robinhood.com/stocks/T)__ and __[T-Mobile](https://robinhood.com/stocks/TMUS)__ with exclusive gameday coverage.

__Brands go long on NFL partnerships...__ because they want the NFL's huge — and hugely engaged — audience. Last year, 71 of TV’s 100 most-viewed events were NFL games. Meanwhile: Verizon, AT&T, and T-Mobile spend billions competing for the 5G market — which is expected to hit $148B by 2028 — but have still struggled to win customers. If football fans need 5G to get the most premium access at Cowboys games, they may migrate to Verizon.


Score

__Defining the relationship is key...__ and brands want to make it *official*. __[Anheuser-Busch](https://robinhood.com/stocks/BUD)__, __[Pepsi](https://robinhood.com/stocks/PEP)__, __[Nike](https://robinhood.com/stocks/NKE)__, and __Verizon__ pay as much as $100M+ per season to be *official* NFL partners. Thanks to corporate partnerships, NFL revenue increased 10% last season — despite empty stadiums. Similarly, the Tokyo Olympics had the worst TV viewership in 33 years, but the International Olympics Committed (IOC) still raked in a record $2B+ in global sponsorships — because __[Coca-Cola](https://robinhood.com/stocks/KO)__, __[Toyota](https://robinhood.com/stocks/TM)__, and __[Airbnb](https://robinhood.com/stocks/ABNB)__ paid big bucks to be “official” Olympic partners.

The NFL’s Verizon collab shows the power of DTR’ing partnerships 

_Major shade [Whitney Tuttle/Moment via GettyImages]_

👓 Facebook's smart Ray-Bans

__Not a chapter in the Twilight saga...__ but this story features blood, drama, and bad actors. Yesterday kicked off the trial of Elizabeth Holmes, the disgraced founder of blood testing startup __Theranos__. The Theranos saga has spawned a book, a documentary, a miniseries, and an upcoming movie — but we're Snack-ifying it. 

- __The company...__ was seen as revolutionary. Theranos claimed it had devised blood tests that, using only a few finger pricks of blood, could detect hundreds of health conditions from cancer to high cholesterol — and make lab testing more accessible. 
- __The founder:__ Holmes dropped out of Stanford at 19 to start Theranos, grew it to a $9B valuation, and became the youngest female self-made billionaire. She saw herself as the female Steve Jobs, even sporting the black turtleneck. 
- __The come-up:__ Theranos raised $700M+ from big investors, and had partnerships with companies like __Walgreens__, which planned to open Theranos testing in-store.
- __The scrutiny:__ In 2015, scientists started raising questions about Theranos' secretive testing tech, and the FDA began investigating. Then, a bombshell WSJ report found that Theranos was running its samples through the same machines used by traditional blood-testing companies, since its own machine wasn’t accurate. 
- __The fall:__ In March 2018, Theranos and Holmes were charged with "massive fraud" by the SEC for allegedly lying to investors and customers. Ramesh Balwani, Theranos’ former president and Holmes’ ex-boyfriend, is facing the same charges in a trial set for 2022. Both have pleaded not guilty. 

__The trial...__ is high stakes. If convicted, Holmes faces up to 20 years in prison, plus $2.7M in fines, *plus* restitution to victims. Think: investors who lost money, and thousands of patients who were wronged by Theranos — like people who received false HIV-positive results. The trial is expected to last three months, and legal experts say the prosecution has a strong case. 


Blood

__Holmes is a cautionary tale...__ To the "move fast and break things" ethos of Silicon Valley culture. Recent SV falls-from-grace share one feature:  highly charismatic founders who sold investors on larger-than-life ideas. Think: __WeWork__'s Adam Neumann and __Nikola__'s Trevor Milton. But it's rare for a CEO to face trial and 20 years in jail. 

Theranos saga: the rise, the fall, and the trial of disgraced founder Elizabeth Holmes

__Making Costco blush...__ Direct-to-consumer beauty buyer’s club __Beauty Pie__ just raised $100M at a reported $1B valuation. Beauty Pie's self-described "Sephora meets Costco" model gives e-shoppers access to marked-down products from the same factories that supply premium cosmetics companies. 

- __For $59/year, BP members__ can buy skincare, makeup, and fragrance goodies for a fraction of their “typical” price. Think: Triple Hyaluronic Acid Elastic Lifting Eye Serum for $12.38 instead of $50. 
- Last year, BP’s members doubled — and so did its sales.

__Scrub away the makeup markup...__ BP founder Marcia Kilgore is the ultimate beauty insider — she also founded Bliss, Remède, and Soap & Glory. Kilgore knows makeup markups are *huge* — typically 10X the product's production cost. Beauty Pie strips away marketing frills to focus on competitive pricing. 

- __Members first:__ On its site, BP sells the same products to non-member at “typical” full prices — while subscribers pay special “insider prices.”  
- __Community vibes:__ BP's website features members' favorites, like the Wonderscrub Face Polish, and includes BTS industry tips.


That skincare insider glow [stock_colors/E+ via GettyImages]

__Shoppers want insider access…__ and insider *deals*. Consumers are used to paying retail prices for almost everything, but businesses like Costco and Beauty Pie give them *wholesale* access. That can inspire long-term loyalty: Beauty Pie’s customer retention rates are *20X* higher than other D2C beauty companies — on an elite list of companies that have hit 90%+ member retention rates, including __Costco__ and __Amazon__.

With fresh funding, Beauty Pie bets that insider pricing will inspire extreme customer loyalty

💉 The Theranos saga

__"Happy B-Day"...__ Just got a whole new meaning. Yesterday, El Salvador [became](https://www.wsj.com/articles/bitcoin-comes-to-el-salvador-first-country-to-adopt-crypto-as-national-currency-11631005200) the first country to adopt __[Bitcoin](https://robinhood.com/crypto/BTC)__ as a national currency. Crypto enthusiasts call it "B-Day." Bitcoin is now legal tender alongside the US dollar, which has been El Salvador's official currency since 2001. The Salvadoran government is rolling out Bitcoin ATMs and snazzy kiosks — and offering a $30 BTC credit to those who download its govt-run Bitcoin wallet, Chivo.

- __Crypto pupusas:__ Salvadorans can now pay for anything in Bitcoin, from tortillas to  rent. Twitter was flooded with images of BTC-bought [McMuffins](https://twitter.com/AaronvanW/status/1435236902274220040).
- __Crypto finances:__ Salvadorans can pay taxes and bank loans in BTC, and won't pay capital gains tax when converting to USD.

__Crypto instead of cake...__ Not everyone's into it. El Salvador plans to spend $225M+ in the rollout, but ~65% of Salvadorans *don’t* want the govt to spend tax money on Bitcoin adoption, and 80% lack confidence in BTC. Meanwhile, the IMF is worried BTC's volatility poses major [risks](https://snacks.robinhood.com/newsletters/1ExFruUiLLc3sM39AgchDw/articles/1W2c6WnMGNOPU4Dj6ZMTS2/) to El Salvador's economy, which is already one of Central America's poorest. A Bitcoin price plunge could make its huge debt load even worse. Just yesterday, BTC dropped 10%. Some potential pros...

- __Access:__ El Salvador's President says BTC will improve financial inclusion among the 70% of Salvadorans who don’t have access to traditional financial services.
- __Remittances:__ Because BTC is often cheaper to transfer, it could lower fees for Salvadorans abroad who send money to family in El Salvador. Nearly a third of the economy’s dollars come from “remittances.”

_Not your average B-Day [MEDITERRANEAN/E+ via GettyImages]_

__It's the first big coin experiment...__ and the stakes are high. El Salvador's BTC adoption could destabilize its fragile economy, boost corruption, and be a boon to the Salvadoran president’s authoritarian tactics — *or* it could be a social and economic success. It’s all TBD. But the experiment could be valuable for other governments considering using crypto as legal tender. 


The big coin experiment: El Salvador becomes the first to adopt Bitcoin as legal tender

__Down to the wire...__ Hurricane Ida cut off power for ~1M people in Louisiana and Mississippi. The storm knocked out 31K electric poles – more than hurricanes Katrina, Ike, Delta, and Zeta *combined*. Plus, all those poles were above ground – aka: not protected against 150-mph wind. __[Entergy](https://robinhood.com/stocks/ETR)__, the utility giant with 3M customers across the Gulf states, has restored power to less than half of its affected customers. 

__Pole-arizing issue...__ After the Senate passed its $1T infrastructure bill, officials are debating whether to build new power lines above or below ground. Underground wires can be more than 10X as expensive to build as above-ground wires — but they're also more resilient in disasters like hurricanes and wildfires. And America’s ~70-year-old electric grid is 20 years overdue for an update: 

- __10X__ = The increase in major US electricity outages between the mid-80s and 2012. Outages more than *doubled* between 2017 and 2020.
- __$7T__ = The estimated cost of modernizing America's electricity grid — around 9X more than Biden's infrastructure bill sets aside for electric infrastructure investment.


Wires

__Natural monopolies, extreme outcomes...__ One-third of US electricity companies are state-regulated "natural monopolies" that earn pre-determined returns, which means little incentive to pay for pricey upgrades. Often, taxpayers end up footing the costs: a whopping $99B just last year. Now, policy makers are debating whether to pay utility companies to update their infrastructure, or fine them if they don't: Last year, __[PG&E](https://robinhood.com/stocks/PCG)__ was fined ~$2B after its old wires caused several devastating wildfires.
