__The avo burger can walk...__ and it leaves a carbon footprint. Wild stat: the global food production system accounts for more than [a third](https://investigatemidwest.org/2019/09/27/agriculture-is-one-of-the-biggest-contributors-to-climate-change-but-it-can-also-be-a-part-of-the-solution/) of human-made greenhouse gases. Wilder stat: [~45%](https://downloads.ctfassets.net/hhv516v5f7sj/54h9AkKqqLK8FEJ2cnFZ5D/4bf80ecb3589923dc6d0aba02e0a7cd2/Impossible_Foods_Impact_Report_2020.pdf) of Earth's ice-free land is covered by crops to feed livestock — that means fewer trees and plants to suck up CO2. 

- __10%:__ The portion of US greenhouse gas emissions generated by agriculture. Cows used for beef and milk are the largest emitters (they breathe out methane when they digest).
- __28X:__ Cows require [28X](https://thecounter.org/mcdonalds-greenhouse-gas-emissions-reduction-pledge-beef/) more land and 11X more water than other farm animals... and emit 5X more greenhouse gas.

__pea.protein22 has joined the chat....__ Sustainability concerns have propelled the rise of plant-based foods. In March 2020, [9.7M](https://www.google.com/url?q=https://www.ipsos-retailperformance.com/en/vegan-trends/&sa=D&source=editors&ust=1619049745179000&usg=AOvVaw1s_tGCFbcgIsTHv5QHK3Oh) Americans reported following plant-based diets, up from 300K in 2004. __[Beyond Meat](https://robinhood.com/stocks/BYND)__ and __Impossible Foods__ say their plant burgers generate ~90% fewer emissions than beef (and require less water and land). Now, alt-food companies are gaining mainstream appeal:

- __Beyond__ is expanding in chains like __[Walmart](https://robinhood.com/stocks/WMT)__ and __Subway__ — and recently partnered with __[McDonald's](https://robinhood.com/stocks/MCD)__ and KFC-owner __[Yum Brands](https://robinhood.com/stocks/YUM)__.
- __Impossible__ launched at TJ's and Walmart, and has breakfast sammies at __[Starbucks](https://robinhood.com/stocks/SBUX)__ and __Burger King__ (plus, the Impossible Whopper).
- __Oatly__ snagged a key partnership with Starbucks (Brown Sugar Oatmilk Espresso FTW). Sales of its sustainable milk [~2X'd](https://www.wsj.com/articles/oprah-backed-oatly-files-for-ipo-11618873268) in 2020 from 2019. Oh, and it filed to go public this week. 


Food

__Food is a change-maker...__ UN climate head Christiana Figueres sees the food industry as "one of the main levers of change" on global warming (she's also on Impossible's board). Alt-meat companies like Impossible and Beyond are explicitly targeting meat eaters who want to cut down — *not* vegetarians. If they succeed in full-mainstreamification of alt-protein, it could make a big difference. The plant-based meat industry is already a $20B biz, set to grow to $23 billion by 2024. But these companies still face pushback from the "real" beef and milk industries.

The Food Footprint: agriculture and the rise of plant-based food

__*Et tu, Bitcoin?*...__ When we hear "carbon emitters," we think of industries that have been around for 100+ years. But there's a new, "sneaky" carbon emitter on the scene: cryptocurrency. While crypto isn't on the same level as agriculture, transportation, and manufacturing, it's not great for the environment. Crypto mining uses tons of electricity... which is mostly generated by burning fossil fuels, like coal and gas.

- __Wild stat:__ __[Bitcoin](https://robinhood.com/crypto/BTC)__ 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 and Holland.
- __Wild(er) stat:__ A single Bitcoin transaction generates the same amount of carbon as [~1M](https://digiconomist.net/bitcoin-energy-consumption/) Visa transactions — *or 78K hours of YouTube binging*.

__Electricity vacuum...__ When Bitcoin was created by the mysterious Satoshi Nakamoto, he/she/they wanted to ensure people wouldn't use it fraudulently. Enter "mining"... People mine Bitcoin by using a massive amount of computing power to verify transactions on the blockchain. Special mining computers solve complex equations, making quintillions of attempts per second to verify the legitimacy of transactions (read: major energy suck). 

- __While crypto hasn't been a big target__ of environmental pressure/criticism (yet), a few companies are already working to reduce its footprint.
-  __Seetee__, a Norwegian investment company, said it planned to invest in cleaner energy (like wind and solar) to power mining operations. 
-  __Also,__ there are new ways to conduct greener Bitcoin transactions. Like: “the Lightning Network,” a payment channel that uses less energy.


_Post-Bitcoin mining sesh energy [RyanJLane/E+ via GettyImages]_

Crypto

__As Bitcoin grows, so does the energy drain...__ While retail and corporate investors pour into crypto, the total value of the crypto market has doubled since January to $2T. Companies like PayPal started accepting crypto payments, while others added BTC to their balance sheets. Growing Bitcoin activity could make it hard for certain countries to meet environmental goals. Meanwhile, [95%](https://www.morganstanley.com/content/dam/msdotcom/infographics/sustainable-investing/Sustainable_Signals_Individual_Investor_White_Paper_Final.pdf) of millennials are interested in sustainable investing, according to Morgan Stanley. Growing interest in ESG investing could amp up pressure to green-ify crypto. 

Crypto carbon: Bitcoin and its (energy-sucking) environmental impact

__A gassy journey...__  Car, truck, ship, train, bus, or plane — burning gas is usually required to get from Point A to Point B.   Not-so-wild stat: transportation is the [largest](https://www.epa.gov/transportation-air-pollution-and-climate-change/carbon-pollution-transportation) contributor of GHG emissions in the US (28% of the total). The solution is simple, but also complicated: *reduce reliance on fossil fuels*. 

__Turn me on with your electric wheel...__ The world is far from ditching gas entirely, but companies are laying the groundwork for an electric future. 

- __Consumer EVs:__ __[GM](https://robinhood.com/stocks/GM)__ set an ambitious 2035 target for phasing out gas vehicles from its lineup. __[Volkswagen](https://robinhood.com/stocks/VWAGY)__ said it'll slash the cost of batteries (the priciest part of EVs) by up to 50% by 2030, making them cheaper than gas cars. __[Tesla](https://robinhood.com/stocks/TSLA)__ [delivered](https://snacks.robinhood.com/newsletters/14Hg085xWwEvJnaWbkrQrd/articles/4UtTPkEjyCpP3Ry2vGbqHG/) a record-breaking 180K cars last quarter. __[Nio](https://robinhood.com/stocks/NIO)__ (aka: the "Tesla of China") said deliveries more than doubled to ~45K. 

- __Business EVs:__  __[Amazon](https://robinhood.com/stocks/AMZN)__ ordered 100K electric vans from __Rivian__, the largest order of delivery EVs ever. It's promising to become carbon neutral by 2040. GM unveiled a futuristic delivery solution, complete with electric pallets and a fresh fleet of e-vans.  __[FedEx](https://robinhood.com/stocks/FDX)__ pledged to replace 100% of its mail fleet with battery-powered vehicles by 2040.  Meanwhile, Tesla, __[Nikola](https://robinhood.com/stocks/NKLA)__, and __[Volvo](https://robinhood.com/stocks/VLVLY)__ are working on electric semi trucks for long hauls.

- __Electric planes (?!):__ __[Airbus](https://robinhood.com/stocks/EADSY)__ is [working](https://www.airbus.com/innovation/zero-emission/electric-flight.html) on alternative propulsion systems for e-planes, laying the groundwork for zero-emission flights.

Transport

__Policy is powerful...__ And it's moving the needle for sustainable transportation (and the companies behind it). Major governments — from CA, to Japan, to the UK — have said they'll start to ban the sale of new gas-powered vehicles in the 2030s. Meanwhile, President Biden's $2.3T infrastructure proposal includes EV rebates and a network of 500K electric vehicle chargers. Government incentives for buying green could accelerate the move away from fossil fuels. 


Movers and shakers: who's laying the groundwork for greener transportation

Dow Jones

S&P 500

Nasdaq

Bitcoin

🌍 Special Earth Day Edition (feat. crypto carbon)

__It's the ~ aesthetic ~ for Apple...__ Yesterday, __[Apple](https://robinhood.com/stocks/AAPL)__ hosted its first event of the year. Starburst must have taken over Cupertino, because the tech giant [unveiled](https://www.cnn.com/business/live-news/apple-event-april-20-2021/index.html) a slate of deliciously colorful products. Like: a lavender-colored iPhone 12, and an iMac that comes in seven dreamy colors, including peach and mint. Apart from tea-flavored tones, Apple dropped:

- __New iPad Pro:__ Now built with Apple's powerful M1 chip and a better camera.
- __Redesigned iMac:__ Also with the M1 chip, and a fingerprint scanner. 
-  __Podcast Subscriptions:__ For paid ad-free listening and exclusive content. 

__The star of Apple's show...__ is also its worst-kept secret. Apple *finally* unveiled AirTags, little Bluetooth buttons you stick on things like wallets and keys to locate them (yep, just like Tile). They start at $29 each and drop on April 30. AirTags use Apple's U1 chip — the same one used in iPhone 12. The chip will make AirTags trackers [more](https://www.cnn.com/business/live-news/apple-event-april-20-2021/index.html) accurate than those from Tile, Samsung, and Sony. Also...

 - __AirTags use the "Find My" network,__ the same one used for Find My iPhone, Friends, etc. 
 - __Like blockchain, for iPhones:__ "Find My" is a crowdsourced network of hundreds of millions of Apple devices that can help users locate their missing tech through Bluetooth connection. Whoa.


Hermes

__AirTags = ultimate brand power move...__ Apple’s powerful brand is a statement – that's currently limited to Apple devices. But with AirTags, people can slap expensive Apple labels on *non*-Apple products. The Find My network will expand beyond your iPhone, to your wallet, suitcase, and $300 Hermès key chain (seriously: Apple [created](https://www.apple.com/shop/select-airtag-hermes) one). Unlike Tile, AirTags are fancy-sleek: stainless steel and Apple-branded, with a smiley face on one side. There's a built in speaker that rings to help you find items. To cap it off, you can add free engraving (emojis included). 


Apple's big product unveil: AirTags, pod subscriptions, and a whole lot of color

__Charmin, Tide, Gillette, Swiffer...__ Your pandemic grocery list = __[Procter & Gamble](https://robinhood.com/stocks/PG)__'s pandemic winners list. In October, the consumer packaged goods giant [dropped](https://snacks.robinhood.com/newsletters/1lIBEJ2Lv8q0dpc73o8pZy/articles/43IGuBwgWOjs0UMuRmsm3g/) its largest quarterly sales increase in 15 years (thanks to obsessive sanitizing). *Last* quarter, sales jumped 5% — the slowest increase in three years. But the headliner from P&G's earnings was price hikes. 

- __P&G will raise prices__ for some household staples, from Pampers to Tampax. Expect 5% to 9% hikes in September. It cited rising costs for raw materials and transportation.

__Your PB&J is getting pricier...__ P&G isn't the only consumer giant hiking prices — we're seeing the first widespread [increases](https://www.wsj.com/articles/kimberly-clark-to-boost-prices-as-commodity-costs-rise-11617197449?mod=article_inline) since 2018. As supply chain shortages and inflation raise prices, CPG giants are passing on the costs to consumers. 

- __[Kimberly-Clark](https://robinhood.com/stocks/KMB),__ which makes Huggies and Scott TP, plans to broadly raise prices in North America to offset higher raw materials cost. 
- __[General Mills](https://robinhood.com/stocks/GIS)__ (think: Cheerios, Cocoa Puffs) will raise prices to offset rising commodity and production costs.
- __[Hormel Foods](https://robinhood.com/stocks/HRL)__ raised prices of its Jennie-O turkey products in February to counter soaring grain costs. It upped Skippy peanut butter.
- __[Smucker](https://robinhood.com/stocks/SJM)__ hiked up Jif peanut butter (PB can't catch a break), and might do the same with pet snacks.

_When inflation hits the PB jar [Enes Evren/E+ via Getty Images]_

PB&J

__Prices are fueling inflation concerns...__ but they may be overblown. People are worried that the purchasing power of the dollar could decrease, and prices could rise. Trillions of $$$ have been pumped into the economy over the past year, boosting spending (and sometimes, prices). As "revenge spending" [soared](https://snacks.robinhood.com/newsletters/2lFqgJt0AfN3zJsbqdxm7m/articles/17MF35F4AhEUwPGvF1qKzt/) in March, consumer prices jumped 2.6% from 2020 — the largest rise since August 2018. But Fed Chairman Jerome Powell said that one-time price increases will likely have only short-term effects on inflation (which has been hovering at a tame ~2% since 2008). While we're seeing prices rise faster in some sectors, like food, the Fed expects overall inflation to stay in check. 


Rising prices, inflation, and pricier peanut butter... through the lens of P&G's earnings

 📲 Apple's colorful new gadgets 

__Much doge, such funny...__ __[Dogecoin](https://robinhood.com/crypto/DOGE)__ is a cryptocurrency that was created by two engineers in 2013 as a joke. It's a literal meme investment, themed around the OG “doge” Shiba Inu meme. Unlike __[bitcoin](https://robinhood.com/crypto/BTC)__, which is capped at 21M coins, dogecoin currently has no hard cap (theoretically: unlimited supply).

- __Dogecoin has massively rallied__ since January, when it was worth less than 1 cent. It’s up a whopping 8,000% this year, and hit a record of 45 cents last week.
- __Doge Day:__ Doge has more than 5X’d over the past week, after an ad campaign by Slim Jim (yes, the beef jerky) set off a social frenzy to drive Doge’s price up.

__Not April Fool’s Day…__ More like April 20. In case the nature of Doge wasn’t clear enough, certain fans are now gunning for the crypto to hit 69 cents on 4/20 (which some are calling "Doge Day”). Doge’s total market value has crossed $50B — more than __Ford__ and __DoorDash__ are worth. Meanwhile, celebs like Elon Musk and Snoop Dogg have been promoting doge, further fueling the social-driven buying campaign.

- __In context:__ Stimulus checks, the rise of retail investing, and the stay-at-home life may have all contributed to Doge’s rally — as well as a growing desire to “stick it” to the Wall Street establishment.


Doge

__The punchline is TBD...__ If Doge is a joke, then its future is determined by how long people are entertained by it. With traditional investing, people buy because they believe that the earnings and growth potential they see in an investment will drive more demand. With doge, people may buy because they believe others will buy based on a cultural fad. Investors could benefit short-term. But the long-term outcome of investing in these types of cultural assets remains unclear. Investing interest can wane as fast as it rises. From April 16 to April 17 alone, Doge plunged to nearly half its value.


Dogecoin’s big rally: the joke, the rise, and the punchline

__Warned...__  __[Peloton](https://robinhood.com/stocks/PTON)__ was the epitome of a corona-conomy thriver. Its stock ~5X'd in 2020, as its connected home fitness products sprinted off shelves. As SoulCycle and Equinox locations reopen, Peloton shares have fallen 26% this year. Peloton has been trying to expand beyond $2K spin bikes — so it launched $4K treadmills in 2018. Those are causing major problems now:

- __In March,__ Peloton's CEO disclosed that a child had died in an accident involving a Tread+. 
- __On Saturday,__  the US Consumer Product Safety Commission [said](https://www.cpsc.gov/Newsroom/News-Releases/2021/CPSC-Warns-Consumers-Stop-Using-the-Peloton-Tread) people should stop using Peloton's Tread+ if small children or pets are at home.
- __39:__ The CPSC cited 39 incidents involving a Tread+, including instances of children and pets getting sucked underneath it. See: this disturbing [video](https://www.youtube.com/watch?v=onXNnlCYJ4Y).

__Peloton got defensive...__ It called the agency’s claims inaccurate, [saying](https://www.prnewswire.com/news-releases/peloton-refutes-consumer-product-safety-commission-claims-301270942.html) there’s no reason to stop using the Tread+ if people follow safety instructions (which are included in the manual and on the treadmill). Peloton's instructions say that children, pets, and objects should always be kept away from the Tread+. Peloton also reminded adults to remove the "Safety Key," which prevents the Tread from being turned on post-workout. 

Warn

__Rule #1 of crisis management = *overcorrect*...__  While Peloton may not be technically at fault, it could've done more to maintain trust and safety with users. Potential examples: shipping a protective tread cover to owners, or releasing a safety-related software update. Instead, all it did was warn people to follow instructions. It could also have issued a recall, which would be a big financial hit (think: moving Treads out of houses, plus compensating owners). Still, sometimes companies recall products — and Peloton now [faces](https://www.wsj.com/articles/peloton-faces-mounting-pressure-to-recall-treadmills-after-one-death-dozens-of-injuries-11618873584) mounting pressure to recall its Treads.

Peloton faces pressure to recall its treadmills after dozens of injuries and one death

_The "Super League" has arrived [peepo/E+ via Getty Images]_

🐕 A Doge story

__Miss the extra butter...__ With the Oscars coming up on Sunday, we're taking a look at how the entertainment industry has transformed over the past year — and what's next. Pre-pandemic, tech companies were already investing big in streaming. Then everything fast-forwarded:

- __In April 2020,__ __[Universal](https://robinhood.com/stocks/CMCSA)__'s *Trolls* 2 made more $$$ in three weeks via streaming rental than the original did after five months in theaters.
- __In July,__  __[AMC](https://robinhood.com/stocks/AMC)__ [slashed](https://snacks.robinhood.com/newsletters/6RFtJk3mnCKOO7aaL4NeV/articles/5k77brddXY731lGleLUGG4/) the theatrical window for Universal films at its theaters. Instead of waiting the usual 75 days, people could stream new flicks after 17.
- __In December,__  __[AT&T](https://robinhood.com/stocks/T)__'s Warner Bros. [said](https://snacks.robinhood.com/newsletters/NhBPQsSaMB2BlXHd0BCKh/articles/mI6qijWrErv5JWjfb31eR/) it would release *all* its 2021 movies on HBO Max *at the same time* they hit theaters. 

__Lights, camera, play button...__ While theaters like AMC struggled to survive 2020, streamers could barely keep up with demand. Subscription streaming time soared [34%](https://www.axios.com/pandemic-sped-digital-media-shift-1e5ef4d7-8238-4c34-9971-41cf4b15f6e8.html) last year, to over an hour a day. __[Netflix](https://robinhood.com/stocks/NFLX)__, which reports earnings tomorrow, crossed 200M paid subscribers. __[Disney+](https://robinhood.com/stocks/DIS)__ crossed 100M subscribers last month, just 16 months after launching. 

- __Studios are becoming streamers...__ OG streamers face fresh competition from OG studios, which are focusing on streaming now, too. Think: Universal's Peacock, Warner's HBO Max, and __[Viacom](https://robinhood.com/stocks/VIAC)__'s Paramount+.
- __...and streamers are becoming studios.__ Case in point: Netflix's original movie "Mank" is a Best Picture nominee at this year's Oscars. __[Amazon](https://robinhood.com/stocks/AMZN)__ spent a whopping $11B on Prime Video and Music content last year, up 41% from 2019.


_"It's a nail-biter" [Klaus Vedfelt/DigitalVision via Getty Images]_

Stream

__The hybrid model could stick...__  AMC, the world's largest theater chain, reopened nearly all its US theaters last month. But the hybrid streaming/theater release model could stick around. Last week, Disney said it'll roll out Marvel's “Black Widow” and "Cruella" on Disney+ and theaters simultaneously. People will always watch movies on the big screen – but it'll be more for love of the shared experience, rather than the only way to see new films.


The future of entertainment: the new normal for studios, theaters, and streamers 

__"Revenge spending"...__ US retail sales soared 10% in March from February, the largest jump since May. As $1.4K stimulus checks hit bank accounts and vaccines hit arms, Americans [splurged](https://snacks.robinhood.com/newsletters/2lFqgJt0AfN3zJsbqdxm7m/articles/17MF35F4AhEUwPGvF1qKzt/) on (non-stretchy) clothes, restaurants, and travel. A whopping ~1M jobs were added last month. Now, consumer spending is expected to propel economic growth to +6.4% this year, the best rate in decades.

__Shell's environmental vote...__ Just in time for Earth Day (on Thursday): __[Shell](https://robinhood.com/stocks/RDS.A)__ asked shareholders to endorse its clean energy transition [strategy](https://www.shell.com/promos/energy-and-innovation/shell-energy-transition-strategy/_jcr_content.stream/1618407326759/7c3d5b317351891d2383b3e9f1e511997e516639/shell-energy-transition-strategy-2021.pdf), with a vote set for May 18. Shell is the [first](https://www.wsj.com/articles/shell-to-let-shareholders-vote-on-shift-to-cleaner-energy-11618491951?mod=business_lead_pos11) oil giant to seek investor approval on a pivot away from oil (it's leaning into electricity). If investors ship Shell's strategy, it could push others to do the same.

__Johnson & Johnson earnings...__ Last week, the FDA asked states to halt __[J&J](https://robinhood.com/stocks/JNJ)__'s one-shot Covid vax, after six people developed rare blood clotting.  It could be a blow to the rollout — but Dr. Fauci [predicts](https://www.wsj.com/articles/fauci-predicts-j-j-vaccine-returning-friday-perhaps-with-limits-warnings-11618763497) J&J's shot will return by Friday. Earnings drop tomorrow, but don't expect a major boost from vax sales: unlike __[Moderna](https://robinhood.com/stocks/MRNA)__ and __[Pfizer](https://robinhood.com/stocks/PFE)__, J&J [pledged](https://snacks.robinhood.com/newsletters/6jwYdiy4al8n5v0GOdIik/articles/7kSxhWesI8SzTyVJS53x2B/) to sell its vaccine "at cost" (read: no profit).

__Snap drops earnings...__ Thursday. In February, __[Snap](https://robinhood.com/stocks/SNAP)__ excited investors by saying it expects 50% annual sales growth for the next few years. But it's still unprofitable (and earns [10X](https://snacks.robinhood.com/newsletters/4xb7z6qlpUK2BEuIpPn3mA/articles/4KWjn4C3xdmPqHHyw5CmsG/) *less* revenue per user than __[Facebook](https://robinhood.com/stocks/FB)__). Snap has been [focused](https://snacks.robinhood.com/newsletters/6ayK3gl1rqepiw8vkFk0FE/articles/1w3MRpNTnNQjpGR8ALRL7z/) on growing ad revenue in non-messaging features. We'll see if it grew ads in Snap Maps, Discover, and its TikTok copycat “Spotlight."


Zoom Out

Stories we're watching...

__Johnson & Johnson earnings...__ Last week, the FDA asked states to halt __[J&J](https://robinhood.com/stocks/JNJ)__'s one-shot Covid vax, after six people developed rare blood clotting.  It could be a blow to the rollout — but Dr. Fauci [predicts](https://www.wsj.com/articles/fauci-predicts-j-j-vaccine-returning-friday-perhaps-with-limits-warnings-11618763497) J&J's shot will return by Friday. Earnings drop tomorrow, but don't expect a major boost from vax sales: unlike __[Moderna](https://robinhood.com/stocks/MRNA)__ and __[Pfizer](https://robinhood.com/stocks/PFE)__, J&J [pledged](https://snacks.robinhood.com/newsletters/6jwYdiy4al8n5v0GOdIik/articles/7kSxhWesI8SzTyVJS53x2B/) to sell its vaccine "at cost" (read: no profit).

__Snap drops earnings...__ Thursday. In February, __[Snap](https://robinhood.com/stocks/SNAP)__ excited investors by saying it expects 50% annual sales growth for the next few years. But it's still unprofitable (and earns [10X](https://snacks.robinhood.com/newsletters/4xb7z6qlpUK2BEuIpPn3mA/articles/4KWjn4C3xdmPqHHyw5CmsG/) *less* revenue per user than __[Facebook](https://robinhood.com/stocks/FB)__). Snap has been [focused](https://snacks.robinhood.com/newsletters/6ayK3gl1rqepiw8vkFk0FE/articles/1w3MRpNTnNQjpGR8ALRL7z/) on growing ad revenue in non-messaging features. We'll see if it grew ads in Snap Maps, Discover, and its TikTok copycat “Spotlight."


Events

Coming up this week...

- __[Big banks, big earnings](https://snacks.robinhood.com/newsletters/2BaDoIcdXsja53tyH93ccQ/articles/5K9cPXQOlSNtntgG0U2X40/):__ __Chase__, __Goldman Sachs__, and __Morgan Stanley__ scored record quarters thanks to the SPAC and IPO-palooza.

- __[China cracks down](https://snacks.robinhood.com/newsletters/2aUdFDcS8HbDWWvTUoLlRp/articles/7hzAn3zqutap8eurhdXv40/):__ __Alipay__, Earth’s biggest financial app, will now be overseen by China’s central bank. China is also [warning](https://www.reuters.com/technology/china-warns-online-platform-companies-halt-anti-competitive-practices-2021-04-13/) dozens of other tech companies to follow regulation.

- __[Rise of "Super-apps"](https://snacks.robinhood.com/newsletters/73PYCZgEW1bG9MUNOaqJQc/articles/3mJwpmK77yoS0MetcedE4n/):__ Singapore's __Grab__ is going public at a ~$40B valuation, in the biggest SPAC merger *ever*. Grab = Uber, DoorDash, and Venmo (*all in one*).


ICYMI

Our biggest stories last week...

🍿 The future of entertainment

__Went stimulus shopping...__ Retail sales [surged](https://www.wsj.com/articles/us-economy-march-retail-sales-coronavirus-recovery-11618450223?mod=hp_lead_pos1) in March, soaring ~10% from February — the largest jump since May of last year. As $1.4K stimulus checks hit bank accounts and vax shots hit arms, Americans hit stores and restaurants. The biggest pops in consumer spending were in pandemic-pummeled sectors:

- __Risers:__ Restaurant sales were up 13%, while clothing store sales [soared](https://www.cnn.com/2021/04/15/business/retail-sales-march/index.html) 18%. Sporting goods and hobby stores were up a whopping 23%. 
- __Fallers:__ Grocery sales barely budged from February, and actually *fell* 14% from March last year. Sales at online retailers jumped only 6%.

__Slim fit, revenge fit...__ After a year of saving up and holding back, Americans are "revenge spending" on pre-pandemic pleasures. Think: non-stretchy clothes, non-canned cocktails, and non-Zoom experiences. A few examples...

- __[Bank of America](https://robinhood.com/stocks/BAC):__ In March, debit and credit card spending jumped the most for plane tickets (up ~40%) and clothing (up ~20%). 
- __[American Eagle](https://robinhood.com/stocks/AEO)__'s quarterly sales are on pace to top $1B, thanks to a surge in sales of jeans and dressier tops. 
- __[Pepsi](https://robinhood.com/stocks/PEP)__ expects sales of oatmeal, box pancakes, and other packaged foods to slow as we eat out more (less Quaker, more IHOP).
- __[Delta](https://robinhood.com/stocks/DAL)__'s passenger revenue jumped 50% in March from February, as we traveled outside the Netflix catalog.


_"Revenge (spending) is sweet"              [kali9/E+ via Getty Images]_

Spend

__The US economy has come a long way....__ in a short time. April 2020 seems like eons ago. But just 365 days ago we had: a world-halting pandemic, 22M unemployed, and zero vaccines. We're far from coming full circle, but this March rebound feels like a return to “normalcy.” US consumer confidence is at its highest level since the pandemic began. Nearly 1M jobs were added last month — the biggest gain since August. Now, consumer spending is expected to help propel US economic growth to +6.4% this year — its best rate in decades.


"Revenge Spending” has arrived: retail sales surge as the economy glows up

__At least it has the Slurpee...__ __[Pepsi](https://robinhood.com/stocks/PEP)__ isn’t just the soda you order when they don’t have Coke — it's a multinational snack *beast*. It owns the four big Os of snacking (Cheetos, Doritos, Tostitos, Fritos...and Lay's). It also owns Quaker Oats, and random airplane favorites like SmartPop, Sun Chips, and Sabra hummus. Thanks to  pandemic snacking:

- __Pepsi's sales jumped 9% last quarter,__ despite closed sports stadiums and movie theaters (where XL-sized soda thrives). 
- __But US drink sales also jumped__, thanks to demand for *non*-soda beverages. Like: Gatorade Zero, Starbucks-branded frapps, and Bubly sparkling water (all "functional beverages").

__Big hemp energy...__ Since the 2000s, sales of full-calorie soda in the US have plummeted. So Pepsi has been leaning harder into "functional beverages." Functional = providing more than just sugar/alcohol, enhanced by a healthy(ish) touch. Think: vitamin-packed energy drinks and enhanced waters. This year, Pepsi partnered with Beyond Meat for plant-based snacks and drinks. Another example of its functional focus:

- __Rockstar Energy:__ Pepsi [bought](https://snacks.robinhood.com/newsletters/2N4J8I3LVoH4TJ41Xmtvys/articles/7MwIKLPyFE9qMQ5p4isrVU/) the canned energy drink company back in March 2020 for $4B — its sales hadn't grown in years.
- __B Vitamins and Taurine included:__ Pepsi revamped the brand, gave it a Super Bowl commercial, and launched Rockstar Energy + Hemp in Germany. 
- __Rockstar's sales started growing again__. Now Pepsi is [accelerating](https://www.cnbc.com/2021/04/15/rockstar-energy-sales-growth-returns-after-pepsico-revamps-brand.html) its global expansion, aiming to double Rockstar's footprint over three years.


__Functional = marketing markup...__ People graviate toward products they think make them healthier and/or more productive. Companies like Pepsi know you're willing to pay more for the "functional" alternative (even if that’s just one unpronounceable ingredient). So they're doubling down on it, especially in marketing. From __[Bud](https://robinhood.com/stocks/BUD)__'s hard green tea and coconut water, to Sephora's CBD-infused body oils and hair gummies — the fashion is in the function.  


Pepsi is really a snack company, but it's leaning into "functional beverages"

👖 "Revenge Spending" receipts

__Chase Sapphire Reserve...__ *minus the reserves*. Banks kicked off earnings season with jaw-dropping earnings. __[JPMorgan Chase](https://robinhood.com/stocks/JPM)__ and __[Goldman Sachs](https://robinhood.com/stocks/GS)__ reported first — __[Citi](https://robinhood.com/stocks/C)__, __[BoA](https://robinhood.com/stocks/BAC)__, and __[Morgan Stanley](https://robinhood.com/stocks/MS)__ are up next. A year ago, banks added [billions](https://snacks.robinhood.com/newsletters/7AbTHa6Ld095hkHZCRzEaL/articles/6MiIgW9CSp3vQEIYRasNPN/) in rainy day funds to their reserves. 17M Americans were newly unemployed, so banks set aside $$$ to prep for loan losses. Think: defaults on mortgages and biz loans. But economic healing happened faster than banks expected — and big loan losses never materialized. In fact...

- __Chase had a record quarter.__ Profit ~5X'd from 2020, coming in at a record $14.3B. JPM released $5.2B in loss reserves (which turned into profit).
- __Goldman had a record quarter.__ Revenue more than doubled from 2020 to  $17.7B... and profit hit an all-time high, too. 

__Bankers dropping bangers...__ Your quarterly reminder that Goldman's CEO is an [EDM DJ](https://www.rollingstone.com/politics/politics-news/goldman-sachs-ceo-dj-788267/). The IPO boom also helped banks, *big time*. JPM's investment banking revenue more than tripled, while Goldman's i-banking revenue soared 73%. Corporate and investment banking made up nearly half of JPM's revenue last quarter, and most of Goldman's. 


Reserve

__Banks are selling shovels..__ *to the Wall Street gold rush*. In the first quarter of the year, IPO companies raised a record $162B (compared to $37B in the first quarter of 2020). And SPACs have already raised more in 2021 than they did in *all of 2020*. Banks are the ones making IPOs and SPAC mergers happen — and they're getting paid big bucks for underwriting and advising. Banks with big Wall Street arms (like Goldman and JPM) are cashing in the most. 


Chase and Goldman Sachs score record quarters, thanks to the IPO-palooza

__*Très cool*...__ When your name is so luxurious, it's a mouthful to say: __Louis Vuitton Moët Hennessy__ (aka: LVMH) owns 75 luxe brands, including Dior, Bulgari, and Dom Pérignon. Yesterday, LVMH [posted](https://www.wsj.com/articles/luxury-shares-soar-in-europe-as-lvmh-sales-rebound-11618401340?mod=hp_lista_pos2) quarterly earnings that were a major glow-up from 2020. And its shares soared to a record. 

- __~$17B:__ Sales jumped 30% from last year, thanks to strong demand from China and the US, where LVMH has been opening more stores.
- __~$360B:__ LVMH's market cap makes it Europe’s most valuable company, beating out oil giants and banks. It's even worth more than __[Nestlé](https://robinhood.com/stocks/NSRGY)__ (Earth's largest food company).

__Still in vogue...__ When the pandemic hit, big-spending Chinese and American tourists disappeared from Europe's shopping streets — problematic, since a quarter of LVMH's sales come from Europe. While Europe locked down again *this year*, LVMH proved it could thrive anyway: sales from Asia nearly doubled, while US sales popped 23%. 

- __LVMH created a mass market__ for luxury by offering a spectrum of brands with broad pricing, for a broad customer base – not just the mega-rich.
- __LVMH’s edge = appealing to the *aspirational* rich__. You can get a Marc Jacobs tote for $185... or a Louis Vuitton purse for $4K. A $35 bottle of Hennessy, or a $200 bottle of Dom — it's all in the LVMH fam.


_"The last Louis Vuitton shopper in Milan"         (Alyson Aliano/Stone via Getty Images)_

Luxey

__The "double lookback" is key...__ Earnings are compared to the year-ago period. We're now in a period where earnings are being compared to 2020 (read: pandemic results). Unless a company was a corona-conomy thriver, its earnings likely look *much better* in 2021 than in 2020. LVMH sales soared from the quarter that ended around April 2020 — that's not saying much. But when we do a "double lookback" to 2019, we see that LVMH's sales were 8% higher than they were in *pre*-pandemic times. LVMH passed the "double lookback" test last quarter, proving the strength of its brands.

Louis Vuitton-owner LVMH makes a comeback (now it's Europe's most valuable company)

🏦  Big banks, big comeback 

__SPAC at it again...__ Singapore-based __Grab__ is going public on the [Nasdaq](https://learn.robinhood.com/articles/1GXPrecRfkSNp0aBblBSsL/what-is-the-nasdaq/) by merging with a [SPAC](https://learn.robinhood.com/articles/5ayx8lwpw1L19BcHmtKA9D/what-are-mergers-and-acquisitions-m-and-a/#Whats_a_Special_Purpose_Acquisition_Company_SPAC) (a public company that exists only to acquire others... *and then become them*). Grab will notch a ~$40B valuation, making it the [largest](https://www.wsj.com/articles/grab-to-go-public-in-record-breaking-spac-merger-11618308181) SPAC merger in history. It'll also be the largest US equity offering by a Southeast Asian company. Grab started as a ride-hail platform, but now it's a claaassic Super-app...  

- __Super-app:__ Think Uber, DoorDash, Venmo, and Amazon... *all in one*. Grab is the top ride-hail and delivery app in Southeast Asia, *and* offers digital wallets and financial services. 
- __Swiss army knife:__ Book a car, order a salad and floss for home delivery, pay for coffee *in*-store, send money, and buy insurance...all in Grab. 

__You can leave the chat...__ *but you can't leave the app*. Mega-apps like Grab are widely used in Asia (the convenience factor is next-level). But along with that convience comes a 360° insight into your daily life: A single app can know what you’re buying, where you're going, who you’re dating, what you’re chatting about, and your Bulldog's entire life story (think: Google X 10). 

- __China is leading super-app innovation__ with  __[WeChat](https://robinhood.com/stocks/TCEHY)__ – [aka](https://qpsoftware.net/blog/all-wechat-features-2020): the app for *everything*. Other notable Chinese mega-apps: __Alipay__, __[Alibaba](https://robinhood.com/stocks/BABA)__, and __[Baidu](https://robinhood.com/stocks/BIDU)__. The question isn't "what can they do?" but "what *can't* they do?"


Super

__The future of apps is unified...__ Grab's massive SPAC highlights the value in mega-app platforms. And American companies have been leaning deeper into super-app territory: __[Facebook](https://robinhood.com/stocks/FB)__ unified its payment tools, launched shopping in Insta, and [integrated](https://snacks.robinhood.com/newsletters/1kYmxcOR7aF1J3uKX3DUot/articles/1w4tRYiuvv24F8QXsGlwIg/) messaging across its apps. __[Uber](https://robinhood.com/stocks/UBER)__ [launched](https://snacks.robinhood.com/newsletters/1D3tkm10PGnxrVOWgEDFKP/articles/4elR6MraWRLDXQoo2e4Q99/) food delivery, e-scooters, and public transit. And food delivery apps like __[DoorDash](https://robinhood.com/stocks/DASH)__ have [expanded](https://snacks.robinhood.com/newsletters/4yhv7qpAlq3DX3thTIcyoh/articles/3n4ZkqjcDzE9VieqzKwZPz/) into "delivery everything." All-in-one platforms are a goldmine for advertisers, and super convenient for users. But that comes at a cost: bigger privacy and regulatory concerns. 

Super-app Grab is going public in the biggest SPAC merger ever

__YouTube on, mat out, Target mirror up...__ For many of us, it's the go-to setup for home workouts. Not for __Tempo__: the AI-powered home gym company just [raised](https://news.crunchbase.com/news/home-fitness-studio-tempo-gets-stronger-with-220m-series-c/) a muscular $220M in funding. 

- __Tempo Studio:__ This $2.5K contraption looks like a giant iPhone mixed with a West Elm cabinet — *sleek*. It [includes](https://tempo.fit/) "over $1K of premium weights" inside (#flex). But when it's off, it looks like furniture.
- __Smart tracking:__ Tempo captures your movements as you lift and squat through classes, while its AI "coach" gives you instant feedback on-screen.

__*Equinox is paging you...*__ Home fitness companies were corona-conomy thrivers. Tempo says it grew [10X](https://news.crunchbase.com/news/home-fitness-studio-tempo-gets-stronger-with-220m-series-c/) last year. __Mirror__, a $1.5K fitness screen that doubles as a mirror, was [acquired](https://snacks.robinhood.com/newsletters/q4J6y6mMs3jtkXwdTmJlG/articles/3H03bXAENNJQMZaqbIocvY/) by __[Lululemon](https://robinhood.com/stocks/LULU)__ for a whopping $500M. __[Peloton](https://robinhood.com/stocks/PTON)__'s 2020 sales nearly doubled from 2019 (and its stock nearly 6X'd in a year). 

- __With vaccines rolling out and gyms reopening,__ you'd think Tempo's customers would be part way to SoulCycle by now. Some might expect home fitness to shrink. 
- __*Not VC investors*:__ Tempo isn't the only one raising big $$$. __Tonal__, [another](https://www.tonal.com/) expensive workout screen company, [raised](https://www.businesswire.com/news/home/20210331005191/en/Tonal-Raises-250M-in-Funding-at-1.6B-Valuation) $250M just last month.  


__Work(out)-from-Home is here to stay...__ At least, in part. People have become conditioned to their home workout routines. Going back to commuting, searching for parking, and sweating in public would be a change of habit. And with restrictions still in place at gyms, many are choosing to sweat from the comfort of their homes. According to a recent McKinsey study, [68%](https://www.wsj.com/articles/the-gym-is-open-but-everythings-different-11615887001) of people who worked out at home during the pandemic plan to stick with it. Venture capital investors seem to believe this, too.

Tempo raises $220M, because home fitness has made itself at home

_When you don't have a $2K workout mirror_

🛍  The largest SPAC merger ever 

__The biggest IPO...__ that never was. __Ant Group__ is the Chinese fintech giant that was *supposed* to have the largest IPO ever. In November, Ant was on track to raise $34B+ in its Shanghai and Hong Kong IPOs (at a huge $300B valuation). Ant's Alipay app offers every money service imaginable (think: payments, loans, insurance, and investing... *all in one*). It's massive, with *1B+ users*.

- __Strike 1:__ Last year, Ant's billionaire founder Jack Ma publicly [criticized](https://www.cnn.com/2021/01/04/tech/jack-ma-alibaba-ant-group-intl-hnk/index.html#:~:text=At%20a%20conference%20in%20Shanghai,risks%20is%20to%20kill%20innovation.) Chinese regulators for stifling innovation in the financial industry.
- __Strike 2:__ Ant's blockbuster IPO was [suspended](https://snacks.robinhood.com/newsletters/3Y16VU6wsQpOaP5bwzUgFf/articles/10lyNbTzg1HbB3563ygUqe/) due to vague regulatory reasons. Then Ma [wasn't](https://snacks.robinhood.com/newsletters/66eEsAltTmjRV2qtUGM2Qk/articles/40dUNHXEy37uMuUculNMIK/) seen in public from November to January (odd). 
- __Strike 3 (The News):__ Ant will now apply to become a financial holding company overseen by China’s central bank — read: stricter regulation.

__Jack of all problems...__ China may have felt threatened by Ant's financial dominance ($17T in digital payment transactions *per year*).  Now, Ant will have to shrink its assets under management, and break an “information monopoly” on its vast consumer data. Ant is falling in line: it "will spare no effort in implementing the rectification plan.” But it's not the only one getting heat...

- __[Alibaba](https://robinhood.com/stocks/BABA)__ — aka: the Amazon of China — was just fined a record $2.8B by China’s anti-monopoly regulator. BTW: Alibaba was also co-founded by Jack Ma... and it owns 33% of Ant (#facepalm). 
- __Other Chinese tech giants__ are also facing fresh regulatory pressure: China recently [fined](https://www.bbc.com/news/business-56410769) __[Tencent](https://robinhood.com/stocks/TCEHY)__, __[Baidu](https://robinhood.com/stocks/BIDU)__, __Didi Chuxing__, __[SoftBank](https://robinhood.com/stocks/SFTBY)__, and others over anti-monopoly rules.
- __Also:__ China just launched its own digital currency, which could hurt Alipay (ICYMI: we covered that [here](https://snacks.robinhood.com/newsletters/5gmxJQUqpvzHWE4CeHvylQ/articles/1UVV5lKmuNvZyE2FiTurJg/)). 


Squash

__China's power > company's growth...__ China wanted to “[set an example](https://www.cnbc.com/2021/04/12/jack-mas-ant-group-to-become-financial-holding-company.html)” for regulation of the platform economy... and it did. Not even billionaire Ma or Alipay's 1B+ users could stop that. Now, analysts expect Ant’s profit potential to fall as it scales back. In China, these regulatory crackdowns could limit future innovation in tech. Abroad, they could make investors think twice before buying into Chinese companies. And other companies might think more carefully about building a presence there.

Ant, the biggest financial app in the world, gets "squashed" again 

__*Did you say, cheesy fiction?*...__ Close: *acquisition*. __[Microsoft](https://robinhood.com/stocks/MSFT)__ is buying voice recognition company __[Nuance Communications](https://robinhood.com/stocks/NUAN)__ for a loud $16B. If investors approve, it'll be Microsoft's biggest corporate shopping splurge since LinkedIn in 2016 (price tag: $26B). Nuance shares popped 16% yesterday. The 30-year-old company sells AI speech recognition tools for doctors' offices, customer service calls, and voicemails. And get this...

- __77%__ of US hospitals and over [half](https://news.microsoft.com/2021/04/12/microsoft-accelerates-industry-cloud-strategy-for-healthcare-with-the-acquisition-of-nuance/) of US physicians use Nuance's solutions. Its tools listen to and intelligently transcribe your doctor‑patient convos.
- __Siri 1.0:__ Nuance was a Big Tech acquisition target for years. Its software formed the basis of Siri before Apple intro'd an in-house version. 

__(Doctor's) Office 365...__ Microsoft looked at industries ripe for technological innovation... and decided it's *bullish on healthcare*. That's why it'll use Nuance's tech in its cloud solutions for healthcare providers. The doctor-savvy AI tech level up its game in a fast-growing field: Nuance's healthcare cloud sales jumped 29% last year. And it'll double Microsoft’s total addressable market in the healthcare provider space to ~$500B.   


_Cloudy with a chance of $16B healthcare cloud_

Listen

__Max out the core competency...__ Microsoft is an enterprise software beast. But when it launched its old consumer voice assistant Cortana, it was competing with Apple's Siri, Amazon Alexa, and Google's Home assistant. When Cortana fell behind, Microsoft pivoted: instead of competing for consumers like us, it focused on businesses. With Nuance, it's investing in strengthening its key competency: enterprise. That boosts its competitive edge.

Microsoft makes its biggest splurge since LinkedIn (and it's all about healthcare)

🐜 The biggest IPO, squashed again

__Sarah cast her ballot...__ and the votes are in. Fun fact: there are more __[Amazon](https://robinhood.com/stocks/AMZN)__ employees than Americans named Sarah. Now, a massive labor showdown at America's second-largest employer is making headlines (again). Amazon workers in Alabama just [voted](https://www.wsj.com/articles/what-amazons-alabama-union-vote-means-for-the-company-and-workers-11617787801) *not* to unionize their warehouse. It would've been Amazon's first unionized US warehouse. Some context:

- __Last month,__ Amazon warehouse workers in Bessemer, Alabama were pushing to unionize for job security and better working conditions. 
- __Amazon pushed back__ (think: anti-union bathroom flyers). It doesn't want to be legally required to bargain with the retail union over its workers' rights.  
- __Last week,__ ~71% of the Alabama workers who cast ballots voted *against* joining the RWDSU (Retail, Wholesale and Department Store Union).

__Prime outcome...__ While Amazon says it "didn't win" because employees made the choice, it's a victory for the 'Zon. Union rules could've limited its freedom to quickly hire (or cut) workers, and its ability to automate (think: more robot-hiring). On Friday, Amazon shares jumped 2% to their highest level in months. Why some workers voted "no"...

- __Unnecessary middleman:__ Workers who voted against the union said issues could be resolved within Amazon, without the union middleman. 
- __Unnecessary dues:__ Some didn't see a benefit in paying dues to a union. Amazon says it already offers competitive benefits and wages.

Vote

__The pushback isn't over...__ Blue-collar unions have been falling out of favor in the US: the unionization rate fell from 35% in the mid-1950s, to 11% in 2020. This vote seems to confirm that trend. But it’s not the end of the labor pushback against Amazon. Labor activists are already looking at other methods to challenge Amazon’s practices. And they could get a boost from legislators: politicians on both sides of the aisle are eager to reign in Amazon’s power, and many are advocating for better conditions for workers. Think: better hours [and](https://www.theguardian.com/technology/2021/mar/11/amazon-delivery-drivers-bathroom-breaks-unions) bathroom breaks. 

Amazon emerges victorious from its historic labor battle against unionization

__Bringing S3XY back...__ __[Tesla](https://robinhood.com/stocks/TSLA)__ shares ticked up for the week after it delivered a record ~185K cars last quarter. That's more than double its deliveries from the same quarter last year (when Covid hit), thanks to healthy demand from China. Still, competitors in the side-view mirror may be closer than they appear: it's [losing](https://snacks.robinhood.com/newsletters/dXjXBUtnIIx60nq4PmLF7/articles/2e4xQmjj3i18XCcn0DYijD/) market share to EV rivals.

__Forgot what a waistband feels like...__ __[Levi](https://robinhood.com/stocks/LEVI)__'s sales fell 13% last quarter because ripped sweatpants are the new ripped jeans. But the stock *jumped* 9% for the week, since Levi's boosted its sales and profit outlook for the first half of the year. Levi's thinks you'll be "revenge spending" on denim for outings, and expects sales will return to pre-pandemic levels by October.

Highs

Who's up...

__Unvaxed...__ __[AstraZeneca](https://robinhood.com/stocks/AZN)__ is causing some vexation... that's preventing *vaccination*. Last week, European regulators [said](https://www.wsj.com/articles/astrazeneca-covid-19-vaccine-restrictions-pile-up-complicating-shot-roll-outs-11617901430?mod=business_lead_pos4) there might be a link between AstraZeneca's vax and rare (but sometimes deadly) blood clotting. Now: Australia, Italy, Spain, the UK, and others are restricting the rollout of its shot. 

__*Wrong direction*...__  Real estate tech firm __[Compass](https://robinhood.com/stocks/COMP)__ watched its stock plunge 14% since it IPO'd last Thursday. The Softbank-backed startup is the second-largest residential brokerage in the country — and the housing market is thriving thanks to ultra-low interest rates. But some investors [see](https://www.curbed.com/2021/04/compass-real-estate-ipo.html) a basic old brokerage model behind Compass' charming techy exterior. 


Lows

...and who's down

__*Stories we're watching:*__

- __The corporate tax debate...__ The tax filing deadline was extended to May 17 (eyy). But for corporations, the headache is just starting. The Biden admin plans fund its $2.3T infrastructure [proposal](https://snacks.robinhood.com/newsletters/5LFeKLcW6vcwl0ortNgrtm/articles/4n7AMG2fFNs2TmR0EXgTgO/) by raising corporate taxes. Treasury Secretary Janet Yellen says the hikes would bring home ~$2T in overseas profits. To keep the US [attractive](https://snacks.robinhood.com/newsletters/2FGYY02td4t3rp9KjKvLQM/articles/1d7eiIZp8iwgUI9aKXGIQZ/) to corporations, Yellen has been pushing for a *global* minimum corporate tax rate. It's working: now the G-20 [aims](https://www.wsj.com/articles/g-20-to-seek-agreement-on-global-minimum-tax-rate-by-mid-2021-11617807018) to agree on a global minimum by mid-2021.

- __The rise of digital currency...__  China became the first major economy to [launch](https://snacks.robinhood.com/newsletters/5gmxJQUqpvzHWE4CeHvylQ/articles/1UVV5lKmuNvZyE2FiTurJg/) an e-currency: the digital yuan (#digi-yuan). Unlike crypto, digi-yuan is state-backed. Unlike cash, it's fully traceable. The wildest part: Beijing is testing digi-yuan expiration dates to encourage people to spend, and could use it to automatically fine people for rule-breaking. Beyond China, digi-yuan threatens the global dominance of the US dollar. Now the US is more seriously [exploring](https://www.cnbc.com/2021/02/27/op-ed-a-digital-dollar-would-help-the-us-and-its-allies-keep-china-in-check.html) its *own* digital currency. So are 60+ other countries. 

__*What's dropping:*__

- __Banks kick off earnings season...__ Wall Street's finest, including __[JP Morgan Chase](https://robinhood.com/stocks/JPM)__, __[Citi](https://robinhood.com/stocks/C)__, and __[Goldman Sachs](https://robinhood.com/stocks/GS)__, all report this week. Banks' performance will be compared to a year ago (aka: the quarter ended April 2020). Back then, banks [added](https://snacks.robinhood.com/newsletters/7AbTHa6Ld095hkHZCRzEaL/articles/6MiIgW9CSp3vQEIYRasNPN/) billions to their reserves to prepare for pandemic loan losses (like mortgage defaults). By April, Chase had set aside $8.3B. Banks are expected to release more reserves as the economy recovers. That could lift their results. 

- __Coinbase goes public...__  The largest crypto exchange in the US plans to go public on Wednesday via direct listing. It'll be the first crypto exchange to go public in the US, at a time when investors have been pouring into crypto. __Coinbase__ thrived last quarter, estimating $1.8B in revenue from January to March — *more than it made in all of 2020*, and 9X more than the year-ago quarter. Coinbase's huge growth highlights the "[seasonal](https://snacks.robinhood.com/newsletters/4ivhnY1RscwdC1MNfKSQqi/articles/3D0DnltBHdA072YBLL7koC/)" nature of its biz. 

- __Delta reports earnings...__ Since mid-March, pandemic travel has been [notching](https://www.tsa.gov/coronavirus/passenger-throughput) record highs, with 1M+ people taking off their watches for TSA each day. __[Delta](https://robinhood.com/stocks/DAL)__'s Thursday earnings will give us a window seat into how airlines fared over the last quarter — and whether people are really "revenge spending" on travel during the vax rollout. 

_Banks about to drop the earnings anchor_

📦  Amazon's union "victory" 

__Free samples are back...__ __[Costco](https://robinhood.com/stocks/COST)__, the Disneyland of bulk retail, just dropped its March sales numbers. Sales growth accelerated from February, jumping 18% compared to March of last year — impressive, since that was the month when 56-packs of TP were more cherished than gold. While pandemic hoarding season has passed, the bulk love has not: Costco's 807 warehouses brought in $18B in sales from March to April this year. 

__Not just 20-pound salmon...__ Packaged food is Costco's literal bread and butter, but it also has "ancillary businesses"  (read: side-hustles). These include gas stations, which make up 9% of Costco's yearly sales. Gasoline = a convenient perk that lures Costco members to shop more frequently. Stop for the gas, stay for the Costco Muffins (and vice versa). But oil didn't shine last quarter...

- __As demand for gas fell__ from December to February, gas prices fell 10% on average. Related to that...
- __Costco's quarterly gas sales__ by volume dropped 9% from 2020 as people drove less (and online-ordered Kirkland coffee pods, instead).


_Costco-sized samples or nothing_

Gassy

__Costco has a "gas paradox"...__ No matter which way gas prices move, it kind of loses either way: When gas prices rise, so do Costco's sales numbers. But its profit margin generally *falls* — since it's spending more on gas, it keeps less in profit. Its gas biz is also generally less profitable that its other businesses, so the more gas it sells, the more its overall profit margin dips. On the flip side: when gas prices fall, so does sales growth. Costco believes gas stations build loyalty and attract customers — but long-term, it'll have to decide if the "gas paradox" is worth it.


Costco's sales are rising, but it has a nagging gas problem

__Sounds like an organic food company...__ actually an autonomous truck startup. San Diego-based __TuSimple__ is planning to go public, [targeting](https://www.reuters.com/article/us-tusimple-ipo-idUSKBN2BU1N1) an $8B valuation. TuSimple's autonomous trucks have already hit American roads for testing (with human supervision). It wants investors to know it has a lot more on its TuDo list:

- __TuSimple is developing Level 4__ (aka: highly automated) self-driving semi trucks with __[Navistar](https://robinhood.com/stocks/NAV)__, slated to enter production in 2024. 
- __It launched a self-driving freight__ network partnership with __[UPS](https://robinhood.com/stocks/UPS)__, which is also one of its investors (ETA: live by 2024).  

__A truckload...__ There’s a lot of innovation happening in trucking. Two key themes for the truck fleets of the future: electric and self-driving. On the electric side: __[Tesla](https://robinhood.com/stocks/TSLA)__, __[Nikola](https://robinhood.com/stocks/NKLA)__, and __[Volvo](https://robinhood.com/stocks/VLVLY)__ are a few companies working on electric semi trucks. On the autonomous side: TuSimple, Mercedes-owner __Daimler__, Google's __Waymo__, and Volvo are covering self-driving semis. The global truck freight market is worth $4T, and there's a big opportunity for disruptors:

- __Electric Pros:__ EV companies have the power of the Green Rush (and green policies) behind them. Plus, a recent study shows electric semis will soon compete economically with diesel trucks.  
- __Autonomous Pros:__ Self-driving truck companies say they'll cut labor costs, reduce accidents, and increase efficiency for long-haul trips. Think: fewer exhausted drivers... and fewer Amazon drivers peeing in [bottles](https://www.cnet.com/news/amazon-apologizes-says-peeing-in-bottles-thing-is-actually-a-thing-for-its-drivers/). 
- __*But*:__ 3.5M+ people work as truck drivers in the US, and wide-scale automation could significantly cut jobs.


Trucked

__Trucks are the backbone of the online economy...__ The growth of ecommerce, plus trends like next-day shipping, are boosting demand for trucking (and trucking innovation). But plenty of challenges remain. On the electric side, there's the issue of charging times and #RangeAnxiety. On the autonomous side, there's the risk that these new technologies won't gain acceptance from the public or regulators. There's also the chance that these developing technologies won't work. Even TuSimple notes these as some of its biggests risks ahead. 

🌍 Special Earth Day Edition (feat. crypto carbon)

📲 Apple's colorful new gadgets

🐕 A Doge story

🍿 The future of entertainment

👖 "Revenge Spending" receipts

🏦 Big banks, big comeback

🛍 The largest SPAC merger ever

🐜 The biggest IPO, squashed again

📦 Amazon's union "victory"

🚛 Self-driving IPO