__When Congress gives you lemons…__ make Lemon8. __ByteDance__ has been busy, and not just defending its social superstar, TikTok, from US lawmakers, who are [considering](https://snacks.robinhood.com/newsletters/20cy8V96PfEU6UKh8gt8ZF/articles/4aHj2SGTicN7e8FGVMqGwi/) a ban. The Chinese tech titan has *another* social app, dubbed Lemon8, which hit US App Store top charts this week. Described as a cross between __Meta's__ Instagram and __Pinterest__ (picture: style pics, shopping recs), Lemon8 is said to use the same recommendation algo powering TikTok's addictive feed. 

- __Slow squeeze:__ After introducing the app in 2020, in Japan, ByteDance grew Lemon8 to 5M monthly users last year by rolling it out in countries including the UK and Indonesia. 
- __Cre8tors:__ ByteDance paid US creators to juice up Lemon8 with #sponsored content, and some social stars are posting about Lemon8 on TikTok. ByteDance is reportedly [gearing up](https://www.nytimes.com/2023/03/29/technology/tiktok-lemon8-content-creators.html) to (officially) promote Lemon8 globally next month. 
- __Another slice:__ ByteDance also owns CapCut, a Tok-friendly video-editing app with 400M+ global downloads last year. 

__Lemon8 and left some crumbs…__ Lemon8's low-key launch contrasts with ByteDance's high-key TikTok tangle. A bipartisan group of lawmakers are pushing legislation that would give President Biden the power to ban (or force a sale of) TikTok — plus other apps seen as posing national-security concerns. Think: platforms that might share data with China or other sanctioned countries. POTUS urged Congress to pass the bill, but not everyone's on the ban-wagon: Sen. Rand Paul and Rep. AOC recently opposed a ban on free-speech grounds. TikTok users have also been posting fan content supporting the app’s CEO, who was grilled by Congress last month. 

Juicing those downloads (Jakub Porzycki/Getty Images)

SQUEEZED

__Whac-A-Mole never ends…__ Even if the US gov’t squashes TikTok, lawmakers might sour on TikTok-adjacent apps, leaving them forever chasing viral hits. Meanwhile, federal privacy legislation — which could address the root of many app-privacy concerns — has been stalled in Congress for years. As officials keep whacking moles, apps like Insta, __Snap__, and __Google’s__ YouTube stand to benefit if their competition gets smashed.

ByteDance pushes an Instagram-like app as DC battles over banning TikTok

__Your creation takes on a life of its own…__ We’re not talking Frankenstein. Last week, 1.4K+ tech leaders and AI researchers (including Elon Musk and __Apple__ cofounder Steve Wozniak) signed an open letter calling for a six-month pause in the race to train AI tools. They warned that ignoring caution could lead to “loss of control of our civilization” and said a pause would give the industry “breathing room” to set safety standards and understand threats. It could be hard to put the genie back in the bottle, though: __Microsoft__ and others have already started integrating AI. 

__Curfew incoming…__ Scrutiny’s rising over the effects of social media on kids. Last week Arkansas sued __Meta__ and __TikTok__, saying their apps harm mental health. Last month Utah passed strict laws aimed at protecting minors: social platforms must give parents access to teens' accounts and enforce a 10:30 p.m. curfew. Congress is eyeing legislation to protect kids on social, while some school districts are also suing social apps. Since half of US teens said they’re online “almost constantly,” the most susceptible group may also be the most bankable.

Zoom Out

Stories we’re watching

__Must add curly fries…__ __Lamb Weston__ has been cooking up success as Americans feast on french fries, no matter the economic weather. Last quarter the potato powerhouse hit a record $1.3B in sales and raised its annual forecast as fry demand sizzled. FYI: LW makes $$ both from grocery-store frozen aisles *and* from restaurants (think: corporate customers like __McDonald’s__ and KFC parent __Yum Brands__). But even as dining out declines, LW says its “fry-attachment rate” is still above prepandemic levels as people keep adding fries to their orders.

__Eggstra-pricey Easter…__ Big Egg’s big holiday is upon us, but you might wanna stick to chocolate. __Cal-Maine__, America’s largest egg producer, reported an 8X quarterly profit jump as prices yolked up. The average price of a dozen was $4 in February (up from $2 a year earlier), adding merit to those “eggs as a symbol of wealth” [memes](https://www.nytimes.com/2023/01/20/dining/egg-inflation-meme.html). Supply is at a three-year low as the industry deals with the avian flu (though Cal-Maine said its chickens weren’t affected). Americans are expected to spend a record $24B on Easter this year, including $7.3B on food. 

Events

Coming up this week

- __[Split](https://snacks.robinhood.com/newsletters/5oP8mbx6TJlK7JAyNs2Kx3/articles/1mdNRN6dZ2iRagPyzjalxb/):__ __Alibaba__ (aka the __Amazon__ of China) is splitting its biz into six independent companies. Keeping units separate could help execs focus on industry-specific growth — and avoid more regulatory scrutiny. 
- __[RT](https://snacks.robinhood.com/newsletters/77yJwmBscjyOo60LxT6mzG/articles/14xhMV3r36sMCfBXKRoENP/):__ Starting April 15, only paying blue-check __Twitter__ subscribers will have their posts recommended to non-followers and be allowed to vote in polls. Since Tweeters are used to having that free, it could backfire and alienate users. 
- __[Disno](https://snacks.robinhood.com/newsletters/5oP8mbx6TJlK7JAyNs2Kx3/articles/3bQ9Cdk4F6yPB948KNCDQ/):__ __Disney__ laid off its 50-person metaverse team as IRL macro conditions lead companies to ditch their pricey meta-ambitions. Last month __Microsoft__ and __Tencent__ shuttered meta projects to cut costs. 

ICYMI

Last week's highlights

As DC battles over banning TikTok, ByteDance pushes Instagram-like app Lemon8

Dow Jones

S&P 500

Nasdaq

Bitcoin

Texas was home to 6 of the top 10 largest-growing US counties last year

🍋 ByteDance makes Lemon8

__NYC’s rush hour…__ has moved from the streets to the skies. The FAA announced plans last week to reduce airport congestion in NYC and DC this summer by cutting flights into the hubs. A big issue: NY’s air-traffic-control staff (which is hired by the FAA) is at only 54% of capacity, compared to a national average of 81%. Now __[JetBlue](https://robinhood.com/stocks/JBLU/)__ plans to [cut](https://www.bloomberg.com/news/articles/2023-03-29/jetblue-set-to-cut-ny-flights-during-very-busy-summer) a chunk of its flights just before peak flying season. 

- __Smaller apple:__ JetBlue’s prepping to axe up to 10% of its flights in busy airports like JFK and LaGuardia. That could mean fewer route options for your summer vacay.

- __True blues:__ JetBlue could take a bigger financial hit than rivals who aren’t based in NYC, because nearly 60% of its flights go in and out of the NY area daily.

- __Request received:__ __[Delta](https://robinhood.com/stocks/DAL/)__ and __[United](https://robinhood.com/stocks/UAL/)__ also offered to cut some of their NY-based flights, but only if regulators promise to give the routes back after the busy season.

__Four-hour flight…__ an hour on the tarmac. Last year about 2.7% of all US flights were canceled, the highest rate in a decade (apart from pandemic 2020) — and JetBlue had the highest percentage of cancellations. Weather was a key factor, but staffing shortages didn’t help. To improve reliability, Delta and __[American](https://robinhood.com/stocks/AAL/)__ have agreed to multiyear raises for their pilots, while JetBlue splurged on new staff and planes. But even if the airlines are better staffed, it’ll be hard to fly high without enough FAA *airport* employees to get ’em off the ground.

Big Apple gets big traffic (Gary Hershorn/Getty Images)

Grounded

__Sometimes you have to off-load to take off…__ While fewer routes would mean fewer options (and likely higher prices), airlines are trying to avoid more cancellations and delays by being proactive. By making congestion-fighting cuts now, they could avoid angry customers later. Last summer, 350 flights/day were delayed in NY, partly because of the air-traffic-control shortage. Congestion would be 45% worse this year without industry-wide cuts, JetBlue CEO Robin Hayes said, citing the FAA.

JetBlue’s axing up to 10% of its NYC routes as airport shortages cloud a busy travel season

__Working the count…__ no strikes. Major League Baseball players usually get the spotlight, but this week the minor league’s making headlines. The players making up the MLB’s 5.5K-person minor-league system tentatively struck a [collective-bargaining agreement](https://www.wsj.com/articles/mlb-minor-leaguers-collective-bargaining-agreement-aff37cc4?mod=pls_whats_news_us_business_f) with the league, a milestone in baseball history. Players and owners could ratify the five-year deal by as soon as today.

- __Peanuts to Cracker Jacks:__ The agreement’s most drastic change is minimum player pay, which will at least double. Season salaries will jump from $4.8K to $19.8K at the lowest level, and from $17.5K to $38.5K at the highest level before the majors.

- __Strike one:__ Last year minor leaguers used social media to express disdain about their paychecks and living conditions, with some saying they stayed in cramped apartments with several players sleeping on air mattresses.

- __Whiff:__ In July the MLB agreed to pay $185M to settle a federal class-action suit brought by minor leaguers over wage violations.

__Bullpen billions…__ Despite last season’s World Series drawing its second-lowest TV audience *ever* (and a 99-day player lockout), the MLB hit a revenue record, pulling in a ballpark $10.8B. The league’s national media-rights renewals with Fox, TBS, and __[Disney](https://robinhood.com/stocks/DIS/)’s__ ESPN brought in $1.8B, a $250M/season boost from previous deals. On the streaming side, new deals with __[Apple](https://robinhood.com/stocks/AAPL/)__ and __[NBCUniversal](https://robinhood.com/stocks/CMCSA/)’s__ Peacock brought in an additional $115M. Sponsorship agreements were up too.

Changeup

__You can’t ignore the talent pipeline…__ In the corporate world, businesses invest heavily in recruiting, internships, and training to keep their talent supply chains healthy. To succeed, the sports world has to do the same. While it's estimated that only 10% of minor leaguers will play in the majors, the 120-team system is the foundation for talent in the highly lucrative league. Players like José Bautista have transitioned from farm-team obscurity to MLB leaders.

The MLB agrees to a hefty pay bump with the minor league, investing in its talent pipeline

🤖 __Techy…__ __[Ethereum](https://robinhood.com/crypto/ETH/)__'s [Shanghai](https://snacks.robinhood.com/newsletters/7g8WyDpRHlBW4XKb0ArYq9/articles/3YIdBYT3OuwOf9IqZp0aMK/) update is [expected](https://decrypt.co/124812/ethereum-staking-tokens-shanghai-upgrade-gets-date) to take place on April 12. If successful, validators who [staked](https://snacks.robinhood.com/newsletters/3Zy7nWCeAzQOjEeKFD5zwW/articles/7A7vAvybFvXFNBUcPqFsGU/) ether will be able to withdraw (and sell) the millions of ETH currently locked up as collateral — potentially affecting prices.

💰 __Costly…__ Matt Damon said he took the (now infamous) "fortune favours the brave" ad gig to [raise](https://decrypt.co/124936/matt-damon-did-crypto-com-ad-due-down-year-clean-water-foundation) money for his clean-water nonprofit. The 2021 __Crypto.com__ commercial premiered shortly before a crypto-wide selloff.

🤔 __Sus…__ The [CFTC](https://snacks.robinhood.com/newsletters/5tWO7MybQ6hruclDYZW4bS/articles/2IF7a4zafGF2KA53v4mz4z/) sued __Binance__, [accusing](https://www.nytimes.com/2023/03/27/business/binance-cftc-lawsuit.html) the world’s largest crypto exchange of illegally letting US customers trade crypto derivatives (which the regulator says it has authority over). If it prevails, the CFTC could force Binance to abandon the US market.

BRAVE

The Crypto Catch-Up…

In 2013, 64-year-old Diana Nyad became the first person to swim 110 miles from Cuba to Florida without using a shark cage for protection

✈️ JetBlue’s NYC blues

__Blue-check anxiety…__ Big changes are coming soon to the blue bird. On Tuesday, __Twitter__ boss Elon Musk [said](https://www.bbc.com/news/business-65095684) that, starting April 15, only verified subscribers (think: people who pay $7/month for blue check marks) will have their posts recommended to others in the “For You” stream. Read: *non*-paying users’ posts will be shown only to their followers. 

- __No viral:__ After backlash, yesterday Elon [added](https://www.theguardian.com/technology/2023/mar/29/twitter-to-no-longer-only-promote-paid-for-accounts-after-backlash-elon-musk) that accounts you follow will also be shown in For You. But it sounds like posts from non-paying users that you *don’t* follow won’t be featured — meaning it’ll be nearly impossible for those users to go viral.

- __No vote:__ Non-paying users also won’t be able to vote in polls starting on April 15 (that “privilege” will be reserved for Twitter Blue subscribers).

- __No check:__ Last week Twitter said it would remove the verified status of “legacy accounts” (think: pre-Elon-era checks) starting April 1 — unless those folks pay up. 

__Hard PaaS…__ The new Twitter Blue sounds like paying for “popularity as a service” (some are getting [roasted](https://www.rollingstone.com/culture/culture-news/twitter-blue-shame-memes-1234628528/) on Twitter for subscribing). But it’s all part of Elon’s revenue-driving and bot-fighting plan. Twitter’s ad sales are sagging and growth has been tough, so Musk’s trying to diversify revenue with subs. Yet the blue-check benefit of Twitter Blue wasn’t enough to attract droves of users willing to pay $7/month. Now Elon’s raising the stakes.

Retweeting is about to get messier (STR/NurPhoto via Getty Images)

__Revenue chasers can chase people away…__ Twitter’s chasing subscription revenue with Blue-exclusive perks, but not by adding perks — it’s doing it by *taking away* long-standing features from existing users. Tweeters are used to blue check marks, voting in polls, and having their posts recommended for *free*. Removing those could backfire by alienating users.

Twitter’s April overhaul highlights Elon’s revenue-driving plan — but could backfire

__Put another iPhone on the tab…__ This week __[Apple](https://robinhood.com/stocks/AAPL/)__ [launched](https://www.ft.com/content/fca35d55-8a6d-4945-a7bf-893d7e937258) its long-promised entry into the crowded buy now, pay later (BNPL) market. Apple Pay Later (APL) lets eligible users split an Apple Pay purchase (capped at $1K) into four payments over six weeks with no interest. Apple’s payment products fall under its services biz (think: App Store, Apple TV), which last year made up a fifth of its $394B revenue. APL has lots of competition:

- __Buy now, pay whoever:__ __Klarna__, __Afterpay__, __[Affirm](https://robinhood.com/stocks/AFRM/)__, __[PayPal](https://robinhood.com/stocks/PYPL/)__, and __Sezzle__ all offer BNPL. Affirm's shares fell more than 7% after Apple’s announcement.

- __Popular pay:__ Nearly half of merchants already let users pay later online. And as of last August, over a quarter of surveyed Americans said they had used BNPL.

__Trouble now, more later…__ The Consumer Financial Protection Bureau (CFPB), created after the ’08 financial crisis, said last year that it planned to [regulate](https://snacks.robinhood.com/newsletters/35lzRs5F4ifGlwO2EylF4f/articles/5EJsoxWGwhdhZYCpcJ7lj/) BNPL companies, which could translate to costly safeguards and added credit checks. Its goal: protect consumers from things like unclear loan terms and over-borrowing.

- __Inflation-stretched shoppers__ are increasingly relying on BNPL to pay for basics like groceries. And in 2021, 11% of BNPL users paid a late fee for missed payments.

- __Bad debt:__ This month, a CFPB report found that 69% of BNPL users don’t pay off their monthly credit-card balances.

BNPA

__Chase after trends and you might slip…__ APL was originally set to launch in September, but was delayed for technical reasons. Meanwhile, the BNPL boom has fizzled. Klarna's valuation dropped 85% last year as it posted a $1B loss. Last month Affirm laid off almost 20% of its employees after disappointing earnings. Still, with APL available for many of the merchants that already accept Apple Pay, it could have an accessibility edge over established BNPL players.

Apple launches BNPL as the micro-loan industry falls under the regulatory spotlight

43% of Americans say that money, as a value, is “very important” to them, ranking it higher than patriotism, religion, and having children

🗳️ Twitter’s Blue backlash

__Jack’s back…__ but Baba’s breakin’ up. A day after cofounder Jack Ma was *finally* spotted in China again, __[Alibaba](https://robinhood.com/stocks/BABA/)__ (aka the __[Amazon](https://robinhood.com/stocks/AMZN/)__ of China) said it was [splitting](https://www.cnbc.com/2023/03/28/alibaba-says-it-will-split-into-6-units-that-can-raise-funds-and-ipo.html) its biz into six independent companies. Refresher: Alibaba.com connects 1B+ buyers/sellers, but Alibaba the company is much more than e-comm — offering services like cloud computing, logistics, and entertainment. Now Baba’s gearing up for a breakup:

- __New focus:__ Each Alibaba-held company will have its own C-suite and be able to IPO independently. Units include cloud, e-comm, logistics, and media.

- __Less trouble?__ Alibaba shares jumped 14% yesterday on hopes that the breakup would ease China's regulatory concerns over its power. Smaller companies = less of a threat. 

__Beijing’s “tech rectification”…__ means tech’s gotten #rekt. Over the past two years China has [cracked down](https://snacks.robinhood.com/newsletters/4Kd4lO6WFcc5HwEH5XR6SP/articles/60LT4dehwCO5TEQWhowccI/) on dozens of tech companies, levying big fines and imposing strict anti-monopoly laws to reel in their influence. In 2021, Baba was fined a record $2.6B after the gov’t said it failed to comply with anti-monopoly laws. Fintech giant __Ant Group__ (1.3B+ users) was forced to halt its $35B mega-IPO. The country’s crackdown plunged the value of Chinese tech stocks and contributed to its slowest GDP growth in decades. 

- __The regulatory tide may be turning:__ __DiDi__ (the __[Uber](https://robinhood.com/stocks/UBER/)__ of China) got the gov’t green light to relaunch its biz after an 18-month ban.

Baba breakup (David Becker/Getty Images)

Split

__Getting smaller can make you stronger…__ By breaking into smaller businesses, Baba could avoid being seen as too dominant, which could mean less scrutiny (and fewer penalties) from Chinese regulators. Keeping biz units separate could also help execs focus on industry-specific growth, rather than juggling several balls at once. If Baba’s split goes well, others could follow.

Alibaba plans to split into six companies to position itself for a Chinese tech comeback

__No more meta Mouse House…__ Entertainment all-star __[Disney](https://robinhood.com/stocks/DIS/)__ [reportedly](https://www.wsj.com/articles/disney-eliminates-its-metaverse-division-as-part-of-companys-layoffs-plan-94b03650) laid off the 50-person team leading its dive into the metaverse. Formed last year, the group was partly responsible for what then-CEO Bob Chapek called the "next great storytelling frontier" (picture: immersive fantasy sports, digital theme-park rides, meta-movies). The cuts are only a sliver of 7K planned layoffs as Disney slashes costs and tries to make its streaming biz profitable. 

__Meta-messy…__ Disney is just the latest company to see its lofty metaverse goals get squeezed under the IRL weight of rising interest rates and a corresponding shift from #growth-mode to #profit-first. __[Microsoft](https://robinhood.com/stocks/MSFT/)__ is said to have dissolved its 100-person, manufacturing-focused metaverse team after four months in operation. And last month __[Tencent](https://robinhood.com/stocks/TCEHY/)__ reportedly dropped its metaverse-adjacent hardware and software VR effort. And then there's __[Meta](https://robinhood.com/stocks/META/)__:

- __Reality bites:__ Reality Labs, the business unit responsible for Meta's metaverse ambitions, lost nearly $14B last year.

- __Faceplant:__ After quarterly profit plunged, CEO Mark Zuckerberg introduced the company's "year of efficiency" — which could translate to a meta-vestment pullback.

- __New buzzword:__ This month Zuck wrote that AI, not the metaverse, is now Meta’s "single largest investment." Last month Meta released its large language model (LLaMa).

Disno

__Big bets don't have to be all or nothing…__ as Disney's mouse-sized metaverse move makes clear. Shifting macro conditions have sent media and tech titans scrambling away from their metaverse bets. Companies like Disney were smart not to overhaul their entire biz. But the trend doesn't mean the metaverse is dead on arrival. __[Roblox](https://robinhood.com/stocks/RBLX/)__'s no-headset-required take on the metaverse is [booming](https://snacks.robinhood.com/newsletters/uT55YYjHMaCpHlECAHSwL/articles/51draBZktcdzNVD8m2FYrf/), but remains a far cry from the "next chapter of the internet" hyped by Zuck. Still, it could eventually be enough to turn a profit.

Disney and others backtrack on the metaverse as “the future of entertainment” gets old

Alibaba plans to split into six as the “Amazon of China” preps for a tech comeback

Women make up 14% of heavy-load delivery and big-rig truck drivers

🛍️ Alibaba’s big breakup

__Browsing 10 menus…__ from the same joint. __[Uber Eats](https://robinhood.com/stocks/UBER/)__ is going ghostbusting as hungry users get bogged down by menu dupes. The food-delivery app launched “virtual brands” (VBs) in 2017 to let restaurants offer unique online-only menus under *different* names. For example, __[IHOP](https://robinhood.com/stocks/DIN/)__ has a “Thrilled Cheese” virtual shop that you wouldn’t associate with IHOP, and __[Denny’s](https://robinhood.com/stocks/DENN/)__ operates “The Burger Den” brand for late-night orders. But some VBs are getting heat for effectively spamming the app, and Uber Eats plans to axe 5K of them, The Wall Street Journal [reports](https://www.wsj.com/articles/uber-eats-to-take-down-thousands-of-virtual-brands-to-declutter-the-app-2e05ca96). 

- __Taking out:__ The cuts mostly target VBs with duplicate menus, not the OG restaurants. For instance, a brunch spot offering the same breakfast burrito across a *dozen* different brands would get its dupes axed. 
- __Order up:__ More listings = more chances of being picked by scrollers. That’s why 41% of independent restaurant operators ran virtual brands last year. Uber Eats’ VBs have quadrupled since 2021, and make up 8% of US and Canada offerings (but less than 2% of orders). 

__Ghost kitchen, real problems…__ VBs were uber-popular during lockdowns as shuttered restaurants used their kitchens to whip up online orders to recoup sales. Big chains like __Denny’s__ and IHOP parent __Dine Brands__ have used VBs to market *new* delivery-only concepts (fine). But some restaurants have taken advantage by rolling out several brands with exactly the same menu (not fine). Now delivery apps are trying to reel it in:

- __[DoorDash](https://robinhood.com/stocks/DASH/)__ has said that restaurants must have at least 50% menu differentiation in their VBs.
- __[Grubhub](https://robinhood.com/stocks/GRUB/)__ has the same guidelines and requires VBs to post at least five different pics of their menu items (to avoid duplicate mozz sticks).

One restaurant, 12 menus (Nathan Stirk/Getty Images)

Dupe

__Too many cooks in the kitchen can make a big mess…__ That’s why Uber wants to clean up a barrage of cooks on its app. Users can get frustrated by choice paralysis when there are too many options, *especially* when many are the same (like: endlessly browsing __[Netflix](https://robinhood.com/stocks/NFLX/)__). For delivery apps, eliminating dupes and improving curation could ease selection fatigue and boost orders. 

Uber Eats is chopping thousands of “virtual brands” as delivery apps crack down on menu dupes

__Jibbitz on the red carpet…__ At some point in the past few years __[Crocs](https://robinhood.com/stocks/CROX/)__ [experienced](https://www.nytimes.com/2023/03/27/business/crocs-sales.html) a vibe shift from ugly-cringe to ugly-cool. The comfort-forward footwear brand regained relevance during the pandemic and hasn’t let its momentum slip off: Crocs’ sales rose 61% last quarter, and its annual sales have tripled since 2019. The clog-olossus expects another record year of growth as marketing investments pay off. 

- __Living room to runway:__ The brand has dipped its rounded rubbery toes into the luxury market through collabs with designers like Salehe Bembury (Versace, Yeezy). His $85 slingback Crocs can sell for hundreds of dollars on StockX.
- __Crocstars:__ Celeb endorsements have helped the brand expand beyond its workwear roots. Musician Questlove rolls up in Crocs to awards shows like the Oscars, and Post Malone, Bad Bunny, and J. Biebs have signed endorsement deals.

__Skewing younger…__ and more passionate. From superfans who own dozens of pairs to collectors who seek out rare collabs, the Croc life isn’t just about comfort. Growth has been fueled by Gen Zers who see the foamy shoes as a blend of comfort, nostalgia, and wearable meme (picture: [KFC Crocs](https://people.com/style/best-crocs-collaborations-of-all-time/)). Last year US teens [ranked](https://www.pipersandler.com/teens) Crocs as their #5 preferred footwear brand. Zillennial-fave footwear company Hey Dude, which Crocs bought for $2.5B in 2021, moved up to #7. 

Holey

__Functional is *still* fashionable…__ because the comfy life is hard to leave. Pandemic thrivers like __[Peloton](https://robinhood.com/stocks/PTON/)__ and __[Zoom](https://robinhood.com/stocks/ZM/)__ experienced a boom thanks to necessity (think: no gym, closed office). But their stocks have plunged from those highs as demand for their products cooled. Meanwhile, Crocs stock is up 48% over the past year because people aren’t willing to give up the sweats-and-clogs life. As workers’ tight grip on remote work shows, it’s hard to sacrifice strides made in comfort.

Crocs is still thriving with comfy clogs, proving not all pandemic trends have fizzled

🕵️ *Like a financial investigator who specializes in complex corn crime…* 

While the SEC regulates securities like stocks and bonds, the Commodity Futures Trading Commission (CFTC) regulates the US derivatives markets, including futures and options on futures (picture: corn futures). The CFTC has said that some crypto, like __bitcoin__, is a commodity, meaning it should oversee bitcoin derivatives trading. Yesterday the CFTC [sued](https://www.nytimes.com/2023/03/27/business/binance-cftc-lawsuit.html) __Binance__ — the world's largest crypto exchange — claiming the exchange failed to register with the CFTC while letting scores of US customers trade crypto derivatives. FYI: nearly 20% of Binance's revenue comes from US customers. 

DEFI(NE)

Heard on the Block: "CFTC"

Uber Eats chops thousands of “virtual brands” as delivery apps crack down on menu dupes

Apple and Microsoft account for a record 13% of the S&P 500

🍔 Uber Eats goes ghostbusting

__“Just Bard it”….__ not as catchy. Last week __Google__ released its ChatGPT rival, Bard, as the chatbot race heats up (#AI-of-the-tiger). But Google expressed caution with the release, warning “things will go wrong,” and hasn’t integrated Bard into its search engine (unlike __Microsoft__, which launched a new CGPT-fueled Bing and 365 apps). Google’s cautiousness may be warranted: media publishers are gearing up for a showdown with Microsoft, Google, and __OpenAI__ over their bots, The Wall Street Journal [reported](https://www.wsj.com/articles/publishers-prepare-for-showdown-with-microsoft-google-over-ai-tools-6514a49e?). 

- __Facebook = no longer media’s biggest threat.__ In 2019, half of Americans got their news from FB, and publishers wanted compensation for lost ad revenue and traffic. 
- __Now it’s AI bots.__ As you’ve probably heard, large language models are trained on a massive amount of text data. That includes copyrighted articles from the web.
- __Media execs are demanding__ compensation for use of their content in AI-generated responses. CGPT has been known to plagiarize and tweak human writing. 

__CGPT feels a connection…__ Last week OpenAI announced that CGPT can now browse the web to pull info from *after* 2021 (in some cases). That could pose an existential threat for news outlets. Publishing execs have started examining how much their content has been used to “train” bots, and are said to be exploring legal options, led by the publishing trade group News Media Alliance. 

- __News Corp. CEO__ Robert Thomson said, “Clearly, they are using proprietary content — there should be, obviously, some compensation for that.”
- __“Fair use” law__ allows portions of copyrighted material to be used without permission in certain cases (think: news reporting, scholarly reports). 
- __In the past,__ techies like Facebook and Microsoft have struck deals to pay publishers for news featured on their platforms. While OpenAI has leaned on fair use, it said it has also paid for rights to certain content. 

Googling Bard or Barding Google? (CFOTO/Future Publishing via Getty Images)

Extra

__Moving faster than your problems can backfire…__ Rapid-fire AI releases show that tech titans are taking an “ask for forgiveness, not permission” approach. Industries haven’t yet had time to digest issues that could arise (picture: educators scrambling to detect cheating), from bias to misinformation to copyright infringement. But when issues catch up to the innovation, it could lead to a backlog of problems all at once.

As AI moves at breakneck speed, publishers gear up for a clash with Google and Microsoft

__TikTok on the (congressional) clock…__ Last week, __TikTok__ CEO Shou Zi Chew spent five hours being grilled by Congress to defend the app. President Biden has supported a bill that would give him the power to ban (or force a sale of) TikTok in the US, and urged Congress to pass it over national-security concerns. TikTok, the world’s fastest-growing app, has 150M+ US users. China said it would “firmly oppose” a forced sale of the app. A Tik ban would be a dream come true for __Meta__, __Snap__, and __Google’s__ YouTube. 

__All's not wells…__ __Coinbase__ is lacing up its gloves for a potential fight with regulators. The crypto exchange [said](https://snacks.robinhood.com/newsletters/XV2nKUGd5DMTWDzADnDXy/articles/29eKBjymymQ1oqSGNKt766/) it had received an SEC Wells notice saying that the commission is likely preparing to sue it over its coin listings and staking service. Coinbase has denied it lists securities and said it'd go to court if necessary. If this *does* go to court, a decision over whether cryptocurrencies are securities could force exchanges to delist some coins and reshape the crypto industry. 

__Sporting $100 leggings…__ from Shanghai to the Champs-Élysées. __Lululemon’s__ stretching its presence overseas in search of fresh $$. Last quarter the athleisure icon’s sales and profit jumped, while revenue from China soared 70% as the country reopened. Lulu plans to triple stores in China, which it expects to be its second-largest market by 2026. In the US, Lulu’s “experiential stores” (see: hot-yoga class next to the yoga-pants rack) have boosted foot traffic. Analysts also expect hot earnings when Lulu reports tomorrow.

__Stuck in the middle with two…__ political parties. __Walgreens__ is set to report tomorrow as it finds itself at the center of the abortion-pill debate. The pharmacy recently said it wouldn't sell the pill in 20 GOP-led states, including some where abortion’s still legal. In response, California said it wouldn’t renew a $54M contract with Walgreens — a drop in the chain's $132B annual sales, but a symbolic move. Meanwhile, Walgreens’ sales were down at the start of the year as Covid-test sales trailed off and vaccinations slowed. 

- __[Juice](https://snacks.robinhood.com/newsletters/XV2nKUGd5DMTWDzADnDXy/articles/1KevFebY5fVYSoamSbTGnX/):__ __Ford’s__ EV unit lost $2B+ last year as the F-150 maker splurged to boost electric production, but its OG biz was profitable. Ford’s “hybrid” structure could keep it charged until its EV biz catches up. 

- __[Handy](https://snacks.robinhood.com/newsletters/3XtgqHUIEm5oE3DC6ZBhxf/articles/3RuvJRJvN9vJbpi65yBtqj/):__ __Panera__ is teaming up with __Amazon’s__ biometric tech to let customers pay by scanning their palm. The bread-bowl icon hopes to make soup-and-salad habits easier (and stickier) for its 52M loyalty members. 

- __[Play](https://snacks.robinhood.com/newsletters/1lStK6DDLtXoSjK8u403uF/articles/7mfAG5UsUH3srAlwmA7QFZ/):__ __Netflix's__ ad tier hit 1M subs as more Americans pivot to cheaper streaming options. But with a password-mooching crackdown looming, the streamer is betting on blockbusters and video games to lure new subs.

Facebook is no longer media's biggest threat: now publishers are demanding compensation for AI bots using their content, The Wall Street Journal reports.

Despite layoffs, tech-sector unemployment was 2.2% last month, lower than the 3.6% national rate

🗞️ Publishers’ AI problem

__Started from the bottom…__ now we’re here? Crypto winter's frost may be starting to melt: __bitcoin's__ price has climbed more than 65% this year, while __ethereum's__ up over 40%. Over the past month alone, BTC's jumped close to 15%. What’s fueling the rally depends on who you ask. 

- __Flight to safety:__ BTC boosters say that recent bank failures actually *helped* crypto prices. When banking concerns grow, the argument goes, crypto becomes an attractive alt. 
- __Fed up:__ Some analysts say a cool-down in Fed rate-hike expectations may’ve boosted appetite for crypto investments.
- __Shallow pool:__ Since __FTX’s__ collapse, the bitcoin market has had reduced liquidity (think: fewer buyers/sellers), which can lead to big price swings. 

__Not fightin' the Fed…__ We know rate-hike decisions often affect stocks, but they can also affect crypto. When interest rates are expected to rise, safer assets (think: Treasury bonds) become more attractive against riskier investments (think: stocks, crypto). Stocks soared after the Fed knocked rates to near zero early in the pandemic, and plunged as the central bank quickly raised rates to fight inflation. Meanwhile, bitcoin's price declined seemingly in tandem with the techy Nasdaq — throwing cold water on the narrative that crypto is an inflation hedge (think: “digital gold”). Recently, expectations of a less hawkish Fed coincided with bitcoin's gains. 

One coin, many sides (Dan Kitwood/Getty Images)

SPRING

__Clean narratives can hide messy truths…__ Some investors may see crypto as a safe haven after __[Silicon Valley Bank](https://robinhood.com/stocks/SIVB/)'s__ implosion and the global banking panic that followed. But ultimately many factors — including rate expectations and liquidity — likely contribute to crypto prices. Now, with the collapse of three crypto-friendly banks, there's yet another factor to consider: the industry’s decreased banking access.

Bitcoin's recent rally has investors pitching competing narratives about crypto’s role

__Panera goes palm reading…__ not the mystical kind. Yesterday the bread-bowl icon [announced](https://www.aboutamazon.com/news/retail/introducing-amazon-one-palm-payment-at-panera) a partnership with __[Amazon’s](https://robinhood.com/stocks/AMZN/)__ biometric tech ("Amazon One”), which lets customers pay by scanning their hand. Amazon rolled out its pay-with-your-palm tech in 2020, and has expanded into dozens of Whole Foods, __[Starbucks’](https://robinhood.com/stocks/SBUX/)__ "pick-up" cafés, and even sports stadiums and concert venues. Now Panera’s testing the tech ahead of a potential IPO this year. 

- __My palm era:__ Customers link their MyPanera membership (or sign up if they don’t have one) and connect with an Amazon One account. After scanning their palm…
- __Hand it to you:__ Panera workers can see personal info like names, loyalty-points balance, and fave orders (think: Asiago bagel with *extra* cream cheese). 
- __Handful:__ The check-out tech is being tested at two Panera locations (in its hometown of St. Louis) but is set to expand to 10+ locations soon.

__“Pick Two” takeover…__ Panera wants to make broccoli-cheddar-soup habits more seamless for its loyal customers, because easy habits are easily *repeatable* habits. Panera has one of the largest loyalty programs in the US (over 52M members) and its loyalty-building habits are paying off:

- __Sip’d up:__ 25% of Panera's transactions come from Sip Club members, who pay $12/month for its unlimited-drinks subscription (imagine: endless coffee and tea). 
- __Paid out:__ A third of Sip Club customers end up spending more $$ on extra goodies (think: free lemonade, but you pair it with a $5 bagel). 

Scan

__Rewarding a habit strengthens a habit…__ By making habits easy and rewarding, chains like Panera and Starbucks can drive more sales. Case in point: over half of Panera’s and Starbucks’ US sales come from loyalty members. With the palm-scan tech, Panera hopes your lunch and coffee habits will get even stickier. 

Panera tests Amazon’s pay-with-your-palm tech to make loyalty (and coffee habits) easier

Tattooing was illegal in New York City between 1961 and 1997

🪙 Behind bitcoin's bump

__12 hours of “Outer Banks”…__ two hours of ads. __[Netflix](https://robinhood.com/stocks/NFLX/)'s__ ad tier is growing as more Americans pivot to cheaper streaming options. Bloomberg [reported](https://www.bloomberg.com/news/newsletters/2023-03-19/netflix-surpasses-1-million-users-for-its-advertising-business) that the $7/month subscription hit 1M US users two months after launching in November. While the #s are a drop in the popcorn bucket compared to Netflix's 230M+ non-ad subs, they apparently topped advertisers’ expectations. 

- __Adoption:__ In January 19% of new Netflix subscribers chose its ad tier. The ad-adoption is slower than that of its rivals: 36% of new __[Disney](https://robinhood.com/stocks/DIS/)__+ subscribers opted for ads after three months (and 21% for HBO Max).

- __#Subscripturation:__ The number of Americans who say streaming subscriptions are getting too pricey is up 50% since 2020, and nearly half of people in a recent [survey](https://www.forbes.com/home-improvement/internet/streaming-survey/) said they pay for streaming services they don’t use.

__Brick-breaking & blockbusters…__ Americans are bracing for Netflix’s password-mooching crackdown (expected this month). Meanwhile, Netflix needs to give 100M+ non-paying households a reason to pay for their own accounts. Yesterday the streaming leader said it planned to release 40 new in-app games this year, with 70 more in the works. It now has 55 games, including a "Too Hot to Handle" spin-off that’s racked up 1M+ downloads. Netflix also [reportedly](https://www.wsj.com/articles/netflix-bets-big-on-the-electric-state-as-it-seeks-to-build-franchises-385eae06?mod=hp_lead_pos6) plans to splurge $200M+ on an original sci-fi flick (“The Electric State”). The Chris Pratt and Millie Bobby Brown movie could spawn more games, shows, and merch.

11 minutes of ads (Matt Winkelmeyer/Getty Images)

Play

__The biggest test is still ahead…__ So far, Netflix has rolled out its password crackdown only in a handful of countries, including Spain and Canada — but complaints are already flooding in. Still, the end of mooching could mean more ad-tier subs. Netflix hopes that if users are price-sensitive enough to “share” accounts with an ex, they might be willing to shell out $7 for ad-Flix. Especially if there are more reasons to tune in.

As Netflix’s ad tier hits 1M subs, the streamer bets on games and blockbusters to lure fresh eyes

__Arrived 20 minutes before takeoff…__ didn’t even fly private. Semi-private flights (think: 15 to 30 passengers) have gained traction since the pandemic began, as germ fears led some travelers to seek out less crowded options. These flights aren’t regulated by the TSA and typically depart from private terminals, so security is much quicker. 

- __While these semi-private perks sound pricey,__ some companies are offering them for prices comparable to first class or even economy.

- __For example,__ __JSX__ offers a round trip from Los Angeles to Vegas for under $200. Or an Austin-Dallas roundtrip for $170. Luxury rivals like __Aero__, __Tradewind__, and __Set Jet__ are more comparable to first-class prices.

- __Sweeteners:__ JSX passengers can valet their cars at the airport and hop on a 30-seat jet (with their pet) just 20 minutes before takeoff. JSX says it’s the first air carrier to roll out in-flight WiFi from __SpaceX’s__ Starlink satellites.

- __Downsides:__ These companies have a limited number of routes (nothing near commercial airlines). And they’re typically pricier than a regular flight. 

__Not too hot, not too cold…__ Most folks can’t afford a first-class ticket, much less a private plane. But most people *also* hate being sandwiched in the middle seat in economy and would rather skip long TSA lines. Travelers are also tired of thousands of cancellations and delays from major airlines. Semi-private flights offer a Goldilocks option between flying private and flying commercial.

Private

__“Too good to be true” is hard to maintain…__ There’s a reason airlines squeeze us in like sardines: $$. Planes are expensive to fly and maintain, and 30-person flights at commercial prices don’t seem like sustainable moneymakers. To expand its routes, JSX said it’s going to add a new aircraft to its fleet every six weeks. These companies are cruising in growth mode, but they might have to lift prices to lengthen their runway.

Semi-private-flight companies like JSX take off as passengers seek a “Goldilocks option”

🛣️ *Like an elevated highway built over a cobblestoned road…*

Layer-1 blockchains like __[ethereum](https://robinhood.com/crypto/ETH/)__ and __[bitcoin](https://robinhood.com/crypto/BTC/)__ have gotten flak for slow transactions and high fees. __Layer-2__ networks are designed to be faster and cheaper: they let users make crypto transactions *outside* the main chains, batch them up, and then report them back to L1s. __Arbitrum__, a leading ethereum L2, is set to [launch](https://www.coindesk.com/tech/2023/03/16/arbitrum-to-airdrop-new-token-and-transition-to-dao/) a hotly anticipated token tomorrow that’ll give holders the ability to vote on changes to its network.

Heard on the Block: "layer 2"

As Netflix’s ad tier hits 1M subs, it bets on games and blockbusters to lure fresh eyes

While 5.9M Americans quit or lost a job in January, 6.4M got hired

🍿 Netflix’s (ad)option

__Failure to launch…__ Sir Richard Branson’s __[Virgin Orbit](https://robinhood.com/stocks/SPCE/)__ could be on the brink of bankruptcy. Last week the satellite-launching startup paused operations and reportedly furloughed most of its staff. Yesterday, CNBC [reported](https://www.cnbc.com/2023/03/20/virgin-orbit-looming-bankruptcy-deal-talks.html) that Branson’s baby was scrambling to raise cash. If Virgin Orbit fails to secure a funding lifeline or a buyer, it could file for bankruptcy as soon as this week. If dollars are rocket fuel, Virgin Orbit is burning it fast. 

- __Boeing up:__ Virgin Orbit (which was spun out from space-tourism company __Virgin Galactic__) developed a new system to launch satellites by dropping rockets from the wings of Boeing 747 jets.
- __Major L:__ In January, Virgin Orbit was poised to send the first satellites into orbit from UK soil. But the historic mission flopped after its rocket failed to reach orbit, which led to the destruction of nine small satellites for governments. 
- __Descent:__ Virgin Orbit stock has plunged nearly 75% this year following the failed launch, and it lost $140M from January to September of last year.

__To infinity, and Elon…__ The satellite industry has mostly been dominated by huge missions to launch huge satellites for huge companies, but startups like __SpaceX__ and Virgin Orbit have found a niche: launching smaller satellites for smaller customers at lower orbits. SpaceX's Starlink satellite-internet biz has launched ~4K satellites to date and has 1M subscribers (think: residential WiFi). Now SpaceX is [gearing up](https://www.engadget.com/spacex-is-getting-ready-to-test-its-starlink-satellite-to-cell-phone-service-181810564.html) to test Starlink satellite-to-cell phone service, which Musk had said would be available on T-Mobile phones this year. Meanwhile, __[Amazon](https://robinhood.com/stocks/AMZN/)__ just [revealed](https://www.theverge.com/2023/3/14/23639450/amazon-project-kuiper-satellite-dish-internet) “Project Kuiper,” its forthcoming low-cost satellite-internet dishes. 

Boeing, Boeing, gone? (Hugh Hastings/Getty Images)

Flop

__A big L can be the nail in a small coffin…__ In the increasingly competitive small-launch market, there may be room for only a few providers, which means that even one high-profile mishap could mean game over. While Virgin Orbit had four successful launches before its failed UK launch, the high-profile flop may’ve been a final blow. 

Virgin Orbit flirts with bankruptcy as SpaceX and Amazon double down on satellites

__Meeting up for an early tee time…__ at 2 on a Wednesday afternoon. Pandemic-born remote work has reshaped the modern office (#hotdesking), but it's also [reshuffled](https://www.nytimes.com/2023/03/16/business/afternoon-fun-economy.html) *non*-office life. The flexibility has created a "whenever economy." Remote workers are taking advantage of their schedules to shop or work out when they'd have typically been at a downtown desk. Now they're working *different* hours (picture: afternoon golf games, late-evening emails). For some industries, that's been a boon:

- __Printing greens:__ A study of 3.4K+ golf courses saw a nearly 4X jump from 2019 to 2022 in Wednesday-afternoon games. Researchers' best guess: WFH golf breaks.
- __Midday blowout:__ According to __ClassPass__, last year the most popular time for salon or spa visits was noon. Before the pandemic, it was around dinner time. 
- __Office-chair pose:__ Yoga studios and rock-climbing gyms are seeing sustained midday business as remote workers downward-dog and scale walls between Zoom calls. 

__Slack pings to an empty desk…__ As big names like __Amazon__, __[Salesforce](https://robinhood.com/stocks/CRM/)__, and __[Meta](https://robinhood.com/stocks/META/)__ require (or “strongly encourage”) in-person office work, they may end up looking like loud outliers. A recent survey of 1.1K corporate execs found that only 3% plan to cut down remote options, while 5% said they'll *expand* them. Many prospective employees are on board: remote opportunities recently attracted a majority of LinkedIn applications, despite making up only 13% of job listings. 

Hooked

__The 9-to-5 is losing its hold…__ Say hello to the 9-to-whenever-it's-done. An overlooked detail of the whenever economy: workers aren't necessarily working *less*. A three-hour lunch break might mean a post-dinner spreadsheet sesh. That flexibility may be hard to relinquish, both for employees lovin' afternoon golf and for employers expecting late-night email replies. 

Businesses embrace the “whenever economy” as remote work powers midday golfing

Men's college basketball players are already earning twice as much as their female counterparts

🛰️ Virgin’s anti-Orbit

__Banking’s no good, very bad week…__ Global bank stocks were on a roller coaster last week after the collapse of __Silicon Valley Bank__, which serviced about half of America’s venture-backed tech companies. A [high-level recap](https://snacks.robinhood.com/newsletters/5AtBujCpd8XgLHLBe7atvu/articles/7zPyo6DswDCVfx1kuMG7Ja/) of the second-largest bank failure in US history: when interest rates were ultralow, SVB invested most of its deposits into US Treasury bonds with long durations (think: 10+ years) to earn slightly higher interest. But when interest rates soared, the value of SVB’s old bonds plunged by $15B and its tight-knit VC customers all tried to pull their money out at once (spoiler: it couldn’t meet their requests). 

__Not-so-balanced sheets…__ Swiftly rising interest rates have led to two main problems for banks that failed to properly factor in this risk: (1) the value of their assets (think: bonds, loans, investments) fell as rates rose, and (2) customers withdrew more idle cash from their accounts in favor of higher-interest investments. After SVB’s fall, regional banks’ financial stability has come under scrutiny as traders and depositors look to identify banks with similar balance-sheet risks. Think: a high rate of uninsured deposits (accounts over the FDIC-insured $250K) and bonds with a long time to maturity. __First Republic__ had the third-[highest](https://www.insiderintelligence.com/content/first-republic-bank-stays-afloat-digitally-fueled-fear-rocks-banking-industry) rate of uninsured deposits among US banks, after SVB and __Signature Bank__. Now it’s in the spotlight. 

- __Initially:__ After the collapse of SVB and Signature, regulators announced an emergency backstop to ensure that depositors at both banks had access to all their funds. But…
- __Monday:__ First Republic stock sank a record 60%+, even after assuring depositors that it had $70B in liquidity thanks to backing from __JPMorgan__ and the Fed.
- __Thursday:__ 11 big banks pledged to inject $30B into First Republic, boosting the stock. But by Friday the rebound lost steam, with First Republic shares falling another 33%. 
- __Meanwhile:__ __Credit Suisse__ secured a $54B lifeline from the Swiss National Bank, and on Sunday UBS agreed to buy its struggling rival for $3.2B. 

__Panic can be a self-fulfilling prophecy…__ which is why governments are taking extraordinary measures to contain the damage. Treasury Secretary Janet Yellen said the US banking system “remains sound,” and President Biden pledged to do “whatever needed” to ensure America's banking-system confidence. Last week 68% of US consumers said they still had a fair amount of confidence in banks. Still, Yellen [said](https://www.cnbc.com/2023/03/16/svb-signature-bank-failures-yellen-says-us-banking-system-is-stable-and-deposits-remain-safe.html) that the government would not refund uninsured deposits for every single bank that fails (only those that would pose a systemic risk if they failed). Most Americans don’t have over $250K in individual bank accounts anyway, but many companies do. 

Banking jitters spread (Nancy Lane/Getty Images)

Edge

__It could go a few ways…__ US banks were sitting on $620B in unrealized losses (think: assets that’ve lost value but haven’t been sold) at the end of 2022. If people identify more poor risk management at small banks, it could lead to cratering trust in regional banking or more regulation for smaller banks. “Too big to fail” banks (like: __JPMorgan Chase__, __Bank of America__, and __Citi__) are already seeing spikes in new deposits. The crisis could also compel the Fed to cool on rate hikes.

Regional bank stocks plunge as regulators (and big banks) rush to limit contagion

__J. Pow needs an herbal tea…__ Between bank collapses and new inflation data, a lot’s happened recently that could influence the Fed’s important rate-hike decision this Wednesday. Some investors expect the banking crisis could pressure the Fed to cool on rate hikes (which contributed to banking woes). Most traders predict a hike of 25 basis points, down from 50 last week. Some firms even expect Powell will pause hikes (#Pow-se). While inflation isn’t cooling as fast as the Fed hoped, __Goldman Sachs__ said it no longer expects a hike on Wednesday.

__China's tech scene checks in…__ WeChat owner __Tencent__ (also the world’s biggest gaming company) and ecomm giant __Pinduoduo__ are set to report. The tech titans’ earnings come as China’s economy reopens after years of strict Covid policy. Meanwhile, China's tech world could be on the verge of an AI-powered shakeup. Both Tencent and __Alibaba Group__ (the __Amazon__ of China) are reportedly working on ChatGPT rivals. Meanwhile, __Baidu__ (the __Google__ of China) disappointed investors last week with its AI-chatbot demo. 

__Affordable EV race…__ __Volkswagen__ plans to [spend](https://www.cnbc.com/2023/03/14/volkswagen-announces-five-year-193-billion-investment-plan-as-electrification-gathers-pace.html) $126B+ on "electrification and digitization" as it pushes to grow its EV market share. The German auto powerhouse rolled out its design for a $26K EV set for release in 2025. The race toward less pricey EVs reflects growing competition for electric market share. __Tesla__ has slashed prices several times this year and said it'll cut future EV production costs by half. Tesla risks getting passed, and not just by Volkswagen: Chinese startup __XPeng__ launched two EVs in Europe that are priced below Teslas. 

Zoom out

- __[TikBan](https://snacks.robinhood.com/newsletters/20cy8V96PfEU6UKh8gt8ZF/articles/4aHj2SGTicN7e8FGVMqGwi/):__ Biden threatened to ban __TikTok__ in the US unless it separates itself from its Chinese parent, __ByteDance__. Meta, Snap, and Google shares surged on the potential demise of their social rival. 
- __[Metout](https://snacks.robinhood.com/newsletters/2ks7eKM2OFTCzODpqYx8b6/articles/4nayOBAZ6zxuYmVl2qAuyb/):__ __Meta__ is ending its ambitious NFT push just as digital collectibles start regaining relevance. It’s the latest example of Meta’s bad trend timing, which includes its massive metaverse investment. 
- __[Resort](https://snacks.robinhood.com/newsletters/5AtBujCpd8XgLHLBe7atvu/articles/7zPyo6DswDCVfx1kuMG7Ja/):__ Within the span of a month, Silicon Valley Bank went from hosting a summit at a fancy ski resort to reaching out to lenders of last resort. Check out our recap of the bank’s swift demise. 

The odds of a perfect March Madness bracket are 1 in 9.2 quintillion