Tangled (Joe Sohm/Getty Images)

CABLE

AT&T halts removal of lead cables as toxic corporate legacies rear their costly heads

Shaped

Kim K’s Skims notches a $4B valuation by modernizing (and stretching) the shapewear industry

Dow Jones

S&P 500

Nasdaq

Bitcoin

Lead pencils have never really contained lead, except in the paint

🚧 AT&T’s toxic troubles

Grain storm (Yasin Akgul/Getty Images)

Bread

Russia ends a critical grain-shipping deal with Ukraine, threatening global food security

JetSet

Airlines add more long-haul routes as Americans’ FOMO fuels an international vacay boom

DEFI(NE)

Heard on the Block: "XRP"

Just 1.4% of US homes have changed hands so far this year

🍞 Grain gets blocked

__U-turn…__ __[Ford](https://robinhood.com/us/en/stocks/F/)__ debuted its F-150 Lightning two years ago, advertising a modest $40K price tag for the e-pickup. But after supply snags, inflation, and a devastating [fire](https://www.theverge.com/2023/4/20/23691743/ford-f-150-lightning-fire-video-watch) curbed production, it hiked the starting price to $60K, forcing some customers to cancel their orders. Now Ford’s slashing prices as EV competition revs up.

- __New tag:__ The cuts range from $6K to $10K across the 2023 Lightning lineup. Trucks ordered (but not delivered) will get the difference refunded.

- __New competition:__ On Saturday __Tesla__ finally produced its first Cybertruck, four years after unveiling it (still TBD when it goes on sale). 

__Electric overload…__ Global EV sales have tripled since 2020 as top players like Tesla, Ford, and __[GM](https://robinhood.com/us/en/stocks/GM/)__ spend billions ramping up production. But inventories are starting to outpace EV demand, which this year has slowed. US car dealers have 92K EVs sitting on their lots (up 3X from a year ago). Meanwhile, 90+ new models are set to hit the market by ’26. With more e-options and bloated inventories, carmakers are lowering prices to stay in the fast lane.

“What can I do to get you in this truck?” (Bill Pugliano/Getty Images)

Pickup

__EVs are losing their premium status…__ The EV-exclusivity era is fading as cheaper models are mass-produced. With competition heating up, EV makers can’t lean on premium prices to pad their profits. Tesla reported record deliveries for its latest quarter, after slashing its Model 3 and Model Y prices by as much as 20% in January. And while price cuts fuel demand, they can weigh on profits too. Following its discount announcement yesterday, Ford shares dropped nearly 6%.

Ford’s slashing the price of its electric pickup as EVs lose premium status

__Netflix cheat codes…__ After logging its slowest revenue growth on record last year, __Netflix__ has focused on money-milking strategies like its password-mooching crackdown and the rollout of its ad tier. But on the content side the streamer is [betting](https://www.businessinsider.com/netflix-invests-streaming-video-games-development-next-chapter-growth-slow-2023-7) on an industry that even the biggest of big techies have struggled with: gaming. 

- __Testing:__ Since Netflix introduced mobile games in 2021, its Games division has expanded to a library of 67 titles and 450 employees.

- __Playing:__ Also in ’21, Netflix bought the studio behind narrative adventure game “Oxenfree.” Since then it’s purchased three more gaming studios and created two from scratch.

- __AAA:__ It plans to launch 40 games this year. Last week it released “Oxenfree II” on its mobile app, __PlayStation__, __[Nintendo](https://robinhood.com/us/en/stocks/NTDOY/)__, and __Steam__. Netflix is also working on a high-budget title from former “Halo” and “Overwatch” creators. 

__Big hands, little controllers…__ Despite trying their best to carve out a slice of the $200B/year gaming pie, new-entrant tech giants have had a hard time leveling up. __[Google](https://robinhood.com/us/en/stocks/GOOGL/)__ shuttered its gaming service, Stadia, in January after three years in operation. __[Amazon](https://robinhood.com/us/en/stocks/AMZN/)__ Game Studios’ $500M/year price tag has resulted in several failures and exec departures. Unlike those two, Netflix plans on moving slow and steady till it finds its footing. Its games have been downloaded only 44M times (or about once per every 100 subscribers).

Highscore

__The transmedia train runs both ways…__ As gaming IP (like “The Last of Us” and “Super Mario”) finds onscreen success, Netflix is hoping that the trend can work the other way around: fans downloading their favorite shows’ video-game counterparts. The streamer released “Stranger Things” tie-in games, and “Queen’s Gambit Chess” is expected this month.

Netflix taps gaming as its next growth play in the transmedia gold rush

A cheetah can go from zero to 60 in 3 seconds

🛻 Ford’s electric discount

__Rethread = the new retweet?…__ __[Meta](https://robinhood.com/us/en/stocks/META/)__'s “Twitter killer,” Threads, became the fastest-growing social app *ever* last week, hitting 100M users within five days of launch. FYI: __Twitter__ had 240M daily scrollers a year ago (the last time it shared #s before Elon Musk bought it). Twitter responded to Threads by saying it would sue Meta, while Musk asked Mark Zuckerberg to [up the ante](https://qz.com/mark-zuckerberg-and-elon-musk-promised-a-cage-match-1850620364) from a cage fight to (ahem) an anatomical-measuring contest.

- __Nepo baby:__ Over 3B (yes, billion) users already use Meta’s “family of apps,” and Threads was launched with close links to popular older sibling Instagram.

- __Locked in:__ Not only do users need an Insta account to sign up, but the only way to delete Threads is to… also delete IG.

__Anything you can do…__ Meta thinks it can do better — by using its “copy, acquire, kill” strategy. It snapped up WhatsApp and Insta early, and after failing to buy __Snapchat__ and __TikTok__ (then called Musical.ly), Meta added copycat features like Stories and Reels. But Threads takes mimicry to another level as a standalone app (Zuck even tweeted the “Spider-Man Pointing at Spider-Man” meme last week — his first tweet in over a decade). 

- __More cats, less controversy:__ While Twitter has lost ad $$ over controversial content, an advertiser-friendly approach could clear Threads’ path to $8B in revenue by 2025. IG head Adam Mosseri said Threads won’t encourage news and politics.

Notification: you just got Zucked (Thilina Kaluthotage/Getty Images)

Re-thread

__Imitation works only when it’s done better…__ Lookalike features have been a win for Meta as users opt for the convenience of its all-in-one social ecosystem. This year, Zuck said Insta usage had grown 24% since adding Reels. Still, it hasn't killed rivals like TikTok and Snap. Plus, some folks are concerned about giving all their social-networking time (and data) to one mega corp. As Threads adds new features, it’s too early to call whether it’ll go the way of Insta or the way of defunct Google+ (which was called a “Facebook killer”).

The success of Meta’s Twitter dupe hinges on one-upping the original (Zuck style)

When incredibly rare and valuable assets come up for sale, it's typically the wealthiest people that end up taking home an amazing investment. But not always…

One platform is taking on the billionaires at their own game, buying up and securitizing some of history’s most prized blue-chip artworks for its investors. Now you can build a portfolio of iconic art, curated by industry-leading research and acquisition teams – without having to fork over tens of millions to get in the game. 

It's called Masterworks. Their nearly $1 billion collection includes works by greats like Banksy, Picasso, and Basquiat, all of which are collectively owned by everyday investors. When Masterworks sells a painting – like the 14 it's already sold – investors reap their portion of the  net proceeds.

It's easy to get started but offerings can sell out in minutes. However, as a trusted partner, Snacks readers can skip the waitlist to [join with this exclusive link](https://www.masterworks.com/?utm_source=snacks&utm_medium=newsletter&utm_campaign=7-17-23&utm_term=Snacks+subscriber&utm_content=starrynightmoney_billionaires54578_3returns_pp_150_skip).*

Billionaires wanted it, but 54,578 everyday investors got it first…

__What banking crisis?…__ Big banks kicked off Q2 earnings season on Friday, with __JPMorgan Chase__, __Citi__, and __Wells Fargo__ beating estimates. It could be a taste of what __Bank of America__, __Charles Schwab__, and __Morgan Stanley__ might report this week. Chase and WF saw profits soar by over 50% as they raked in more interest income on loans thanks to steeper rates (__Citi__ also got a rate boost, but its profit fell). IOU defaults ticked up but are historically low. While “too big to fail” banks are looking solid, results might not be as sunny for smaller players. 

__Rewatching “Wednesday”...__ while waiting for __Netflix__ to report Wednesday. Now that Hollywood writers *and* actors are on strike, the US content-churning machine is on pause. But while Netflix’s Q1 subscriber growth underwhelmed, analysts expect more action from Q2. Netflix’s cheaper ad-based tier has seen 5M+ global sign-ups since November, and the password-mooching crackdown seems to be paying off: since Netflix restricted US account sharing in May, it reportedly notched its four biggest sign-up days on record (thanks, exes).

Events

Coming up this week

__Captcha-ing fire…__ NYC recently began enforcing a first-of-its-kind AI law, centered on the use of AI in hiring. The law says that employers using the tech must inform candidates and submit to audits showing that their systems are unbiased. From résumé screening to initial chatbot interviews, automation has made its way into virtually every part of hiring, and four in five companies use the tech. AI hiring laws are in the works in several states, though experts say federal guidelines will likely be needed. 

__Ripple effects…__ In what experts called a blow to the SEC’s crypto crackdown, a judge ruled that __Ripple__'s __XRP__ token was a security when sold to investors in 2013 but *not* a security when it was offered for sale to the public. (FYI: the SEC has said most cryptos are securities.) XRP’s market cap soared from $25B to $45B+ after the news last week, and crypto broadly rallied. Exchanges like __Coinbase__ celebrated it as a win, but they risk getting ahead of themselves — the case was about Ripple, not all crypto, and the SEC may appeal.

Zoom out

Stories we’re watching

- __[Youth](https://sherwoodmedia.com/snacks/longevity-clinics-promising-to-lengthen-lifespans-are-attracting-venture/):__ “Longevity clinics” promising to lengthen lifespans of wealthy clients are attracting millions in venture investments. Some charge up to $100K/year to provide treatments like plasma transfusions.

- __[Sweat](https://sherwoodmedia.com/snacks/extreme-heat-bakes-the-us-and-boosts-ac-highlighting-the-need-for/):__ This year could be one of the Earth’s hottest ever as dangerous temps bake the Southwestern US. As demand for AC spikes, companies are searching for more energy-efficient cooling solutions.

- __[Copywrong](https://sherwoodmedia.com/snacks/sarah-silverman-sues-meta-and-openai-alleging-their-language-models-ripped/):__ Comedian Sarah Silverman sued __Meta__ and __OpenAI__, saying her book was used in training their AI large language models. The copyright-infringement suit says thousands of other scribes could also be plaintiffs.

ICYMI

Last week's highlights

😽 Meta’s copycat ad-vantage

Gonna need a bigger umbrella (Ralph Freso/Getty Images)

COOKED

Extreme heat bakes the US and boosts AC, highlighting the need for sustainable chill

__H2O IPO…__ __Liquid Death__ could [bring](https://www.theinformation.com/articles/liquid-death-hires-goldman-sachs-aiming-for-2024-ipo) its viral canned water to Wall Street. The six-year-old sparkling-water wiz is popular for its irreverent marketing, gothy aluminum cans, and "Murder Your Thirst” tagline. Its success has attracted investors from Swedish House Mafia to __[Live Nation](https://robinhood.com/us/en/stocks/LYV/)__. Now The Information has reported that Liquid Death has hired __[Goldman Sachs](https://robinhood.com/us/en/stocks/GS/)__ for an IPO listing as soon as next spring.

- __Refreshing:__ LD said its sales nearly tripled to $130M between 2021 and 2022. This year it expects to double that (FYI: it’s still not profitable).

- __Liquid likes:__ Its cheeky promos have turned into a cult fave online, with its pages racking up millions of followers on __[Instagram](https://robinhood.com/us/en/stocks/META/)__ and __TikTok__. 

__Putting the cool in carbonated water…__ Booze-free bevvies have sparkled as more Americans shift to a [sober-curious](https://sherwoodmedia.com/snacks/alcohol-alternatives-are-heating-up-as-gen-z-leans-into-the-sober-curious/) lifestyle. Gen Z is driving the trend, drinking about 20% less alcohol than millennials did at their age. But while OG canned-water brands like __La Croix__ and __[Pepsi](https://robinhood.com/us/en/stocks/PEP/)__'s Bubly have seen growth taper, Liquid Death has grown thanks to its presence at festivals, bars, and concert venues. Meanwhile, over a quarter of folks in the US say they’re trying to drink less this year.

Quench

__The IPO drought seems to be easing…__ After more than a year of sluggishness in the IPO market, Liquid Death could join the wave of businesses returning to Wall Street. This week, fast-growing beauty tech biz __Oddity__ filed for a $315M initial public offering, and shares of __[Chipotle](https://robinhood.com/us/en/stocks/CMG/)__ rival __[Cava](https://robinhood.com/us/en/stocks/CAVA/)__ more than doubled on its market debut last month. With investors hoping that the Fed will halt rate hikes this year, IPO jitters could ease.

Edgy canned-water biz Liquid Death could go public next year in a (less) dry IPO market

⚖️ __Judgy…__ A judge [ruled](https://www.bloomberg.com/news/articles/2023-07-13/cryptocurrenies-jump-as-xrp-ruling-touted-by-industry-supporters) that __Ripple__'s __[XRP](https://robinhood.com/us/en/crypto/XRP/)__ was not a security when sold to the public. The first-of-its-kind ruling is seen as a potential blow to the SEC’s position that most cryptos are securities.

🤔 __Sus…__ Law enforcement [arrested](https://www.bloomberg.com/news/articles/2023-07-13/sec-files-lawsuit-against-celsius-network-alex-mashinsky) former __Celsius__ CEO Alex Mashinsky, saying he misled customers and tried to manipulate crypto prices. Crypto lender Celsius, which imploded last year while owing customers billions, agreed to pay a $4.7B settlement. 

🌶️ __Spicy…__ Analytics company __Arkham Intelligence__ said it’ll launch a [marketplace](https://www.coindesk.com/business/2023/07/10/arkham-intelligence-rolls-out-crypto-data-marketplace-privacy-advocates-cry-foul/) to “deanonymize the blockchain” and help crypto police itself (critics called it “dox to earn”). $300M+ in digi assets were stolen last quarter.

Ripped

The Crypto Catch-up…

In one minute, light can travel nearly 11.2M miles

🥵 Extreme heat

__Tastier than a cheese pull…__ Pizza lovers will soon be [able](https://www.wsj.com/articles/dominos-pizza-strikes-deal-with-uber-in-search-for-new-sales-4e6b21fd) to order __[Domino’s](https://robinhood.com/us/en/stocks/DPZ/)__ on __[Uber Eats](https://robinhood.com/us/en/stocks/UBER/)__ and __Postmates__. The world’s largest pizza biz serves 1M+ customers daily, and this is its first delivery-app partnership in the US. Domino's has long avoided third-party delivery in the States, preferring to handle orders through its own (popular) app and nearly 7K+ locations. Now:

- __New screen:__ Starting this fall, Domino’s will list on Uber Eats in four cities, including Las Vegas, and expand to the rest of the country by year’s end.

- __Same driver:__ Domino’s will still use its own delivery drivers for Uber orders, to ensure quality control and track its ’zas (#DeliveredHot).

- __Pricey slices:__ The pizza powerhouse expects to generate $1B in extra sales through the deal, with Uber as its exclusive partner through 2024. 

__The OG pizza deliverer…__ Domino’s had long been an outlier (#rebel) for exclusively handling its own orders and deliveries, allowing it to keep 100% of each sale (instead of paying fees to apps). But the calculus may’ve changed as Uber and __[DoorDash](https://robinhood.com/us/en/stocks/DASH/)__ take a bite out of Domino’s revenue. Food-delivery apps made up 14% of all pizza sales in the US over the past year — nearly 3X higher than prepandemic. Rivals like __[Papa John's](https://robinhood.com/us/en/stocks/PZZA/)__ and __[Pizza Hut](https://robinhood.com/us/en/stocks/YUM/)__ have been on third-party apps since 2019, and Little Caesars joined Uber in April. Now Domino’s execs think the app-y opportunities outweigh the risks of losing full control.

Spreading the cheesy bread (Domino’s)

Slice

__Have your pie and eat it too…__ By listing on Uber but still delivering its own pies, Domino’s can keep its satisfaction guarantee while gaining exposure to new customers. Uber also plans to share some customer order data with Domino’s. Meanwhile, loyal fans will likely keep using the Domino's app for exclusive offers. Investors seemed to find it all pretty tasty: after yesterday’s announcement, Domino’s stock jumped 11%.

Domino’s pies are coming to Uber Eats as delivery app-ettite heats up

__Crying over spilled skim…__ America is [frothy](https://www.bloomberg.com/news/articles/2023-07-11/milk-oversupply-has-us-farmers-in-the-midwest-dumping-it-in-the-sewer?) with excess milk after dairy production hit a record high in May. Demand isn’t keeping up with cows’ output, and cheese factories hamstrung by labor shortages can’t curdle it fast enough. The last time farmers were drowning in dairy was when Covid closed restaurants and schools. Faced with spoiling supplies, farmers have reportedly been dumping dairy into sewers and pouring it on their fields. 

- __Udders in overdrive:__ Dairy cows don’t have an “off” switch, so the only way to limit milk output is by sending them to slaughter.

- __Dairy discount:__ Milk prices have dropped as producers try to encourage bulk buyers to purchase their glut, and June’s consumer inflation #s show price drops have trickled down to shoppers. 

__Perishable probs…__ Milk has a short lifespan, and suppliers can’t even offload it to schools in cartons (ICYMI: it’s summer break). The USDA has historically stepped in to buy (longer-lasting) cheese to stabilize milk prices, and recently started step one of bidding to buy 47M pounds, which could bring dairy prices back up. But the issue might be deeper: while dairy-cow numbers grew 13K from last year (as of May), milk consumption has trended down as plant-based options sip away at Big Dairy’s 86% market share.

Spoiler

__Discounts alone don’t revive thirst…__ Falling milk prices aren’t enough to [persuade](https://www.glamour.com/story/got-milk-gen-z-does-apparently) Gen Z to opt for 2% over macadamia #mylk. So the dairy industry is leaning on marketing. Recently it ran a splashy ad featuring Aubrey Plaza. A few years ago it launched an #UndeniablyDairy campaign (the hashtag has 216M views on TikTok), and had MrBeast tour a virtual dairy farm in “Minecraft.” The ’90s “Got Milk” campaign famously stalled dairy’s decline, and Hailey Bieber recently wore a “Got Milk” shirt on Insta, jus’ sayin’.

America’s got (too much) milk, leading farmers to discount and dump excess dairy

__A banking battle is underway__ as financial regulators crack down on “junk fees.” On Tuesday, regulators [ordered](https://www.nytimes.com/2023/07/11/business/bank-of-america-fine.html) __[Bank of America](https://robinhood.com/us/en/stocks/BAC/)__ to pay $250M+ in fines and customer repayments for violations including double-dipping on fees, withholding credit-card perks, and opening accounts without customers’ consent.

- __Junk fees =__ additional charges, often not clearly stated, that are usually tacked on at the end of a transaction (think: airline seat selection fees, resort fees at hotels).

- __Double-dipped:__ In the case against BoA, these fees included $35 overdraft charges that could occur several times on one transaction if a merchant resubmitted a request for payment. Regulators say the bank stopped the illegal practices in 2021-22.

- __Trend alert:__ The moves against BoA are significant, but they pale in comparison to the $3.7B regulatory action brought against __[Wells Fargo](https://robinhood.com/us/en/stocks/WFC/)__ in December over overdraft fees and other violations. Last fall, watchdogs slapped __[Regions Bank](https://robinhood.com/us/en/stocks/RF/)__ with a $191M fine over surprise fees.

__By the numbers:__

- __27%__ of checking-account holders are regularly hit with fees, costing them $288/year on average.

- __85%__ of Americans have encountered junk fees, a 2019 survey said.

- __90%:__ the drop in revenue from overdraft and insufficient-funds fees that BoA saw when it slashed these penalties in early ’22.

Junk

Snacks Unpacked: The junk-fee crackdown

The US has nearly 1B square feet of empty office space

🍕 Domino’s Uber pivot

__160 years young…__ and still kickin’. Clinics promising to lengthen life for a growing number of wealthy clients are [popping up](https://www.wsj.com/articles/longevity-clinics-aging-living-longer-2b98e773?mod=business_lead_pos12) across America. Some charge up to $100K/year to provide customers with out-of-(*deep*)-pocket treatments, like testosterone injections, plasma transfusions, hair rejuvenation, and stem-cell therapies.

- __Guinea-pigging:__ Medical experts warn that the market for these “life-enhancing” treatments is unregulated. Some lack scientific backing, aren’t FDA-approved, and could even introduce health risks.

- __Rich in health:__ One study of people age 50+ suggested that the most important factor in predicting lifespan is wealth. The affluent live longer and have eight to nine more healthy years than the poorest people.

__The fountain of youth…__ is turning into a lake of longevity. Venture-capital investments in longevity clinics more than doubled last year to $57M. In the US — which accounts for 70% of global investment in these clinics — the rich are dipping their toes into the forever-young lifestyle. __OpenAI__'s Sam Altman invested $180M in a biotech startup whose goal is to add a decade to the human lifespan (he also paid a startup to [freeze](https://www.yahoo.com/news/silicon-valley-billionaire-pays-10000-digitally-back-brain-live-forever-hell-die-first-104931001.html) and digitally backup his brain #UploadToCloud). 

- __Other tech titans__ who’ve invested in antiaging companies include Jeff Bezos, Mark Zuckerberg, and software entrepreneur Bryan Johnson, who spends millions a year on de-aging himself (his experiments have included a plasma transfusion from his teen son).

Age is just a number — when you have millions (andresr/Getty Images)

YoungMoney

__Sci-fi goals can lead to real-sci discoveries…__ According to __[Bank of America](https://robinhood.com/us/en/stocks/BAC/)__ analysts, the immortality and longevity industry could be worth $600B by 2025. Cash infusions from the ultrawealthy could lead to scientific breakthroughs including new cures and innovative methods for spotting diseases earlier — all of which could benefit more than just the 1%.

Longevity clinics promising to lengthen lifespans are attracting venture millions

__Loading up the wish list…__ with discounted hotel rooms. __[Amazon](https://robinhood.com/us/en/stocks/AMZN/)__ [teamed up](https://www.reuters.com/technology/amazon-partners-with-travel-site-priceline-first-prime-day-2023-07-10/) with travel-booking site __[Priceline](https://robinhood.com/us/en/stocks/BKNG/)__ in its first-ever Prime Day partnership with an online travel agency. The move comes as consumers are increasingly choosing experiences over material splurges like air fryers, and it’s a (small) way for Amazon to get in on the travel-palooza. 

- __Ring up room service:__ During Prime Day(s) — yesterday and today — Amazon’s US members can get 20% off Priceline’s Hotel Express deals, which offer discounts of up to 60%.

- __Mystery book:__ With Express deals you don’t know which hotel you’ve booked until *after* you pay (and it’s non-refundable). But you’ll know details like star rating and location. 

__Fewer Dyson Airwraps, more airports…__ Amazon’s sales growth has cooled from pandemic highs as retail spending has slowed. But consumers have kept shelling out for travel, which Amazon doesn’t offer (it shuttered the hotel-booking site it launched in 2015 after just two months). The ecomm giant is expecting to set fresh records this Prime Day (which runs through today), but analysts expect economic jitters will slim down online carts. Even hotel demand fell below pre-pandemic levels in May, as consumers looked for cheaper getaway options.

Primeline

__Prime Day is like Groundhog Day…__ for retailers eager to see a long spending spring. Stubbornly high inflation and rising interest rates have made discounts more important than ever, with consumers starting to rein in spending and seek bargains for everything from groceries to plane tickets. Prime Day should be a temp check for demand, especially as competitors like __[Walmart](https://robinhood.com/us/en/stocks/WMT/)__ and __[Target](https://robinhood.com/us/en/stocks/TGT/)__ run their own sales events.

Amazon teams up with Priceline on Prime deals to get a piece of the hot travel pie

🧾 *When your paycheck takes a hit but your monthly bills stay the same…*

About every four years, the amount of __[bitcoin](https://robinhood.com/us/en/crypto/BTC/)__ that miners get for mining a block is cut in half. This reward reduction, dubbed “the [Halving](https://www.bloomberg.com/news/articles/2023-07-08/how-bitcoin-s-next-halving-will-affect-struggling-crypto-miners-btc),” steadily decreases the rate at which new BTC is born, to ease inflationary pressure (FYI: total max BTC supply = 21M). The next Halving is expected in April, and barring gains in BTC price or mining efficiency, it could drive some miners into unprofitability.

Heard on the Block: “Halving”

Last week the Earth saw its hottest average temperatures on record

🧬 Buying youth

__“Write a joke in the style of Sarah Silverman”…__ The comedian is suing __OpenAI__ and __[Meta](https://robinhood.com/us/en/stocks/META/)__, saying they [infringed](https://www.theverge.com/2023/7/9/23788741/sarah-silverman-openai-meta-chatgpt-llama-copyright-infringement-chatbots-artificial-intelligence-ai) on the copyrights of her book, “The Bedwetter,” in a case that could spark unfunny consequences for AI companies. Silverman, along with authors Christopher Golden and Richard Kadrey, say OpenAI’s ChatGPT and Meta’s LLaMA were “knowingly and secretly trained” using illegally obtained copies of the authors’ books.

- __Exhibit A:__ The lawsuits’ claims include summaries of the authors’ works that they say ChatGPT churned out when prompted, as well as a document trail suggesting that LLaMA was trained on a “shadow library” site called The Pile, which the complaint says contained illegally copied full works.

- __Payback:__ The authors seek payment and other damages, and the suit says thousands of other scribes could be plaintiffs in the case. 

__When imitation ≠ flattery…__ Generative AI has created a legal obstacle course for copyright law. __[Getty Images](https://robinhood.com/us/en/stocks/GETY/)__ sued __StabilityAI__ earlier this year, accusing its image generator of using copyrighted pics without permission. And Hollywood actors and writers are seeking protections against AI ripping them off in studio-contract negotiations. Meanwhile, major news publishers may be [prepping](https://sherwoodmedia.com/snacks/newsletters/ZFPm5hIgbozaPl1FkBr62/articles/6PN4qPO0CWXUae6KhAijBD/) for a case to force __[Microsoft](https://robinhood.com/us/en/stocks/MSFT/)__ and __[Alphabet](https://robinhood.com/us/en/stocks/GOOGL/)__ to compensate them for using their articles in AI search results. 

- __Law and AI order:__ Last month the EU passed a draft of its “AI Act,” a historic law that would make AI companies create safeguards against illegally generating content.

- __Cite your sources:__ It would also require companies to disclose any copyrighted materials used in training their models (which critics say is technically impossible).

A new chapter for AI lawsuits (Lars Niki/Getty Images)

Copywrong

__AI is a two-headed beast for creators…__ Not only are AI programs trained on original works, but they also use those works to churn out new content. AI has the potential to make pre-existing works less valuable while stealing future opportunities from human creators. Yet some argue AI programs are just another tool that creators can leverage (think: photographers editing in Photoshop).

Sarah Silverman sues Meta and OpenAI, alleging their language models ripped off her book

__The Mouse House has rooms for rent…__ Travel season’s in full swing, but the “Happiest Place on Earth” may be feelin’ a summer slump. __[Disney](https://robinhood.com/us/en/stocks/DIS/)__'s US amusement parks are said to be seeing [thinner crowds](https://www.wsj.com/articles/disney-world-crowds-universal-studios-florida-36b0a579) and shorter ride wait times. Disney World, whose Magic Kingdom puts on a special fireworks show every July Fourth, saw its lightest Independence Day attendance in nearly a decade. Execs have said they’re expecting weaker US earnings this year. 

__Losin’ the magic…__ Despite Disney’s fantasy-land park stylings, attendance may be dropping for earthly reasons. Disney has in recent years upped pricing across the board (tickets, merch, food) and nixed some freebies. Last year Disney raised ticket prices twice, with hikes of up to 14% at Florida’s Magic Kingdom. The goal: squeeze more $$ out of fewer customers. Higher prices appear to be giving would-be visitors pause, and not just in Disney parks: 

- __More-lando:__ Orlando, Florida (home of Disney World and Universal Orlando) is one of the priciest family-vacay destinations. On average, a weeklong trip will cost a family of four $7.3K.

- __Adding up:__ Travel costs more broadly are up 16% from prepandemic times.

GOOFY

__Experiential spending enters the discount phase…__ Demand for “revenge travel” shows few signs of slowing, but it may be *shifting* as experience-seeking vacationers try to spend smarter. In Europe, families are opting for cheaper summer destinations (picture: Costa Brava over the Canaries, Albania over Italy) or delaying trips to shoulder-season September. Cooling attendance suggests Disney’s magic may have a price cap too. In May, Disney said [it would close](https://sherwoodmedia.com/snacks/disneys-already-closing-its-immersive-star-wars-hotel-as-superfans-hit-their/) its “Star Wars” hotel. The cost of a two-night stay for a family of four: $6K.

Disney parks see thinner crowds as family travelers seek bargain experiences

Goldman Sachs said India's economy will surpass the US’s by 2075

📚 Sarah’s AI lawsuit

__Rolling up the red carpet…__ Hollywood’s picket lines could grow longer as more showbiz workers fight for better contracts. In May, the Writers’ Guild of America (repping 11K+ scribes) went on strike to [demand](https://www.wga.org/news-events/news/press/writers-guild-of-america-calls-strike-effective-tuesday-may-2) higher pay and stronger job protections. Then last week, the unrest intensified with actors in the spotlight: the SAG-AFTRA union, covering 160K entertainers, also failed to get better terms from studios, and extended its contract deadline. 

- __Oscar status:__ 1K+ actors (including A-listers like Meryl Streep and Jennifer Lawrence) said they’re prepared to strike if a SAG deal isn’t reached by Thursday. It would be Hollywood’s first two-union strike in more than six decades.

- __Losing gold:__ The writers’ strike is said to be costing California $30M/day. If it runs over 100 days, about $81B in direct wages from 800K film and TV jobs could be at risk.

__Tiny rooms, big problems…__ Much of the Hollywood unrest is a result of streaming’s rise, as studios like __[Netflix](https://robinhood.com/us/en/stocks/NFLX/)__ and __[Disney](https://robinhood.com/us/en/stocks/DIS/)__ hustle to crank out new content to keep subscribers happy. While OG writers’ rooms (think: “Friends,” “30 Rock”) typically employed 7 to 10 staff writers for several months, “mini rooms” are becoming the norm. The problem: mini rooms hire fewer writers and offer lower pay — and contracts often last only a few weeks. Piling on to streaming woes, AI’s causing unrest as writers and actors worry over how chatbots and deep fakes might replace them (see: “Black Mirror”).

Pressed pause (Gary Coronado/Getty Images)

Showbiz

__Hollywood’s lights reach beyond the stars…__ The film and TV biz creates 2M+ jobs in the US, contributing $186B in annual wages. A single film shot on location can add $250K/day to a local economy (picture: hotels and catered veggie trays). Now, Tinseltown could lose its sparkle as studios look outside the US to feed their content machines. Netflix, for instance, said it would spend $2.5B on Korean content in the next few years.

Hollywood strikes intensify as the streaming model turns studios into content farms

__Hip surgery back on the iCal…__ Health insurers padded their profits during the pandemic as folks hunkered down at home and avoided germy waiting rooms. As Americans postponed non-urgent surgeries, insurance giants got to keep their monthly premiums *without* having to cover as many doc bills. But last month, __[UnitedHealth](https://robinhood.com/us/en/stocks/UNH/)__ said its costs are rising as older adults finally return for pricey procedures. The US’s biggest healthcare provider posted a strong $5.6B profit in May, but its streak could be losing steam as older people rack up higher insurance bills.

__Zero-conversation Ubers…__ This week, California regulators are expected to approve permits for __Waymo__ and __Cruise__ to run their driverless ride-hail services 24/7 anywhere in San Francisco. Currently, the city has restrictions for when and where driverless rides can happen. Waymo and Cruise both have standalone apps, and __[Uber](https://robinhood.com/us/en/stocks/UBER/)__ plans to start offering Waymo rides later this year. Hilly SF has been a “hey look, it works” city for autonomous-vehicle makers, but officials say the cars create traffic, block fire trucks, and even whiz through crime scenes.

__“Good news” = “bad news”?…__ After ADP’s piping-hot jobs report came in at [double](https://sherwoodmedia.com/snacks/blistering-june-jobs-growth-and-rising-wages-give-investors-a-case-of-the/) expectations (nearly 500K private-sector jobs added), the Dow and the S&P 500 had their worst day since May. A sizzlin’ labor market means the Fed may keep rates higher for longer to cool inflation, and traders upped their bets of a July hike. But then Friday’s official jobs report showed *strong but cooling* hiring (209K jobs added vs. 240K expected), and the market briefly ticked up. Now investors are waiting on Wednesday’s June consumer inflation data, crossing their fingers for some #goodnews.

__Priming the court suit…__ The FTC could crash __[Amazon](https://robinhood.com/us/en/stocks/AMZN/)__'s birthday (Prime Day’s tomorrow) as it gears up to file a sweeping antitrust suit within weeks. It’d be the fourth and largest suit FTC Chair Lina Khan has led against the e-tailer. The core allegation: Amazon boosts sellers who use its “optional” services, like shipping and advertising, over those who don’t. So its algo may put preferred sellers in the one-click “Buy Box” section. Khan could seek a total restructure of the platform. Amazon would almost certainly appeal.

Zoom Out

- __[Threats](https://sherwoodmedia.com/snacks/meta-launches-a-twitter-rival-as-the-tech-titans-face-off-for-fresh-eyeballs/):__ __[Meta](https://robinhood.com/us/en/stocks/META/)__ launched Threads, a text-focused social network, in 100+ countries —  and within two days it was downloaded 70M times. Some are already calling Threads a “Twitter killer” given Meta’s massive reach.

- __[BAYC](https://sherwoodmedia.com/snacks/bored-apes-flounder-as-the-once-hyped-nft-biz-fails-to-keep-the-buzz-alive/):__ Some Bored Ape NFTs (including Justin Bieber’s) have plunged in value as blue-chip NFT prices slide. Apes biz __Yuga Labs__ has struggled to stay buzzy as its hyped virtual word remains under construction.

- __[Uturn](https://sherwoodmedia.com/snacks/new-car-sales-soar-as-us-shoppers-shrug-off-sticker-shock/):__ New US car sales surged by as much as 14% in the first half of this year. __Cox Automotive__ predicts that car buying will cool in the second half, but still upped its sales estimate to 15M.

The most distant active supermassive black hole, discovered this month, is 9M times the mass of the Sun

🎬 Hollywood strikes back

__It’s hot in here…__ but don’t blame the summer swelter. Last month the US labor market appears to have gone from 75 and sunny to 95 and boiling. Yesterday __[ADP](https://robinhood.com/us/en/stocks/ADP/)__ reported that private-sector companies added nearly 500K jobs in June — more than *double* what was expected, and the most in over a year. It’s a big ramp-up from May’s 267K gain. 

- __Planes, trains, and restaurant chains:__ The leisure and hospitality industry led the charge, accounting for 232K of new hires.

- __Fed up:__ Despite the Fed’s aggressive rate hikes to quell inflation and cool the hot jobs market, there are still nearly two open roles for each available worker.

- __Fell Dow:__ Yesterday the Dow and S&P 500 had their worst day since May as investors feared that “good” labor news could mean more rate-hike woes.

- __FYI:__ Today we’ll get the full jobs report from the Labor Department (which doesn't always match the ADP's #s). 

__Direct-deposit feeling…__ While the pace of wage growth cooled, annual pay jumped 6.4% from a year ago, and for people who switched jobs, the median bump was over 11%. For a chunk of the pandemic, wages weren’t keeping up with rising prices. Recently, though, paychecks were back to growing *[faster](https://www.wsj.com/articles/as-greedflation-starts-to-fade-wageflation-creeps-in-1adb7b9c?mod=business_lead_pos11)* than inflation. That’s good for workers but not great for companies’ bottom lines. In the first quarter, labor costs per unit of sales jumped 6% — more than prices — while profits per unit of output were up a measly 1.6%. 

Comin’ in hot (Michael Macor/Getty Images)

9-to-5

__Payrolls are a two-sided coin…__ A strong labor market and rising wages can boost spending and strengthen the economy. But they can also exacerbate the sticky-inflation problem (higher labor costs can = higher prices). Now investors worry that the Fed’s interest-rate hill could get steeper. If today’s Labor Department report is as hot as the ADP’s, rate-hike expectations could rise.

Blistering June jobs growth and rising wages give investors a case of the Fed sweats

__Got me like, baby, oh no...__ Justin Bieber’s Bored Ape non-fungible [token](https://gizmodo.com/justin-bieber-bored-ape-price-collapse-million-dollars-1850606250) is worth 95% less than the $1.3M he paid for it in January 2022, as the value of Bored Apes and other blue-chip NFT collections plummets. The cheapest Bored Ape on the market (aka the “floor price”) could be had for 27 ETH on Sunday, down 88% from a peak of 152 ETH in April 2022. NFTs in a recently launched Bored Ape spinoff game have fallen too.

- __Class rep:__ __Yuga Labs__ — which owns Bored Apes, CryptoPunks, and other NFT collections — is one of the best-known NFT companies, and cooling interest in its tokens could be a bad sign for the broader industry.

__It’s not a “gm” for NFTs…__ NFTs were a buzzword in 2021-22. But after cratering later last year and clawing back some of its interest earlier this year, the non-fungible tide has turned once again. NFT royalties, a revenue driver for the collections’ creators, are at their lowest point in two years, partly because they often aren’t enforced. Just $10M in NFTs are being sold daily, compared to $30M last year. Popular NFT collections including Doodles and Pudgy Penguins have seen recent price dips, and __Azuki__ Elementals fell nearly 60% last week following a controversy with its founder.

Yawn

__Buzzy businesses need to keep things fresh…__ While investors might not expect much excitement from a century-old canned-goods company, innovative products like NFT collections need to keep churning out new-ness. But Yuga Labs appears to have let its bananas go from ripe to rotten, and it may be running out of time to even make bread. It’s been hyping the release of its virtual world, dubbed Otherside, since March 2022 — but after buyers spent $320M on Otherside “deeds,” they’re still waiting for the world to go live.

Bored Apes flounder as the once hyped NFT biz fails to keep the buzz alive

😰 __Stressin’…__ A new report suggested that crypto-related job [openings](https://fortune.com/crypto/2023/07/06/collapse-crypto-bubble-job-listings-tumble/) in major US cities were down as much as 80% from their highs in 2021 and ’22, when hotspots including Miami and NYC sought to become crypto hubs as __[bitcoin](https://robinhood.com/us/en/crypto/BTC/)__ prices soared. 

🌶️ __Spicy…__ Taylor Swift had reportedly [agreed](https://www.cnbc.com/2023/07/06/taylor-swift-agreed-to-ftx-partnership-despite-contrary-public-claims-source.html) to a $100M promo deal with __FTX__ before the crypto exchange backed out. Investors are suing celebs including Tom Brady and Larry David over their roles in promoting the now failed company. 

🪙 __Coins…__ The price of bitcoin no longer seems so tightly [correlated](https://www.coindesk.com/markets/2023/07/05/bitcoin-is-no-longer-correlated-to-us-stocks/) with US stocks. For some of last year, the OG crypto traded in parallel with tech stocks as investors and pundits declared the "digital gold" narrative dead.

BADBLOOD

The Crypto Catch-Up…

In commercial planes, fuel is usually stored in the wings