__Musk vs. Zuck…__ Not talkin’ cage matches. __[Meta](https://robinhood.com/us/en/stocks/META/)__ announced a new social app yesterday, dubbed Threads, and it’s already live in 100+ countries. ICYMI: Like __Twitter__, Threads lets users share real-time text updates as well as like, comment, and repost. Unlike Twitter, Threads didn't launch with a chronological-based feed, and there is no direct messaging. Meta’s hoping its 3B Facebook and 2B Instagram users will add the Twitter dupe to their quiver of apps. Sweetening the deal:

- __IG-friendly:__ Threads users can sign into the new app with their Insta accounts and use the same handle on both platforms.

- __A-list invites:__ Meta recruited celebs including Gordon Ramsay and Shakira to start threading (aka: posting). The hope: big names will attract big download #s. And then there’s the competition…

__Clipped wings…__ From site malfunctions to controversial content-moderation moves, Twitter’s problems have piled up since Elon Musk bought the biz for $44B last year. Musk recently tweeted that unverified tweeters would (at least temporarily) be limited to seeing 1K posts/day, while paying subscribers would get 10K views. Next month, Twitter said it would restrict TweetDeck — a popular tool for following numerous timelines — to subscribers. Now, it’s not just Meta trying to pick up Twitter’s dropped ball:

- __New Nests:__ __Bluesky__, a decentralized social app, had to temporarily pause sign-ups last weekend after seeing record traffic. Rival __Mastodon__ also reportedly saw a sign-up spike. 

Zucked (Justin Sullivan/Getty Images)

Threads

__One app’s troubles can be another’s treasure…__ Meta wants to spin Twitter’s trials and tribulations into biz gold. Some are already calling Threads a “Twitter killer” given Meta’s massive reach. But success isn’t guaranteed. In February, Meta shut down its __Cameo__-esque app Super less than two years after launch, and in March it shuttered its live-shopping feature.

Meta launches a Twitter rival as the tech titans face off for fresh eyeballs

__Joy ride…__ straight off the lot. New US car sales surged by as much as 14% in the first half of this year, as the auto industry pulled ahead into a post-pandemic [comeback](https://www.wsj.com/articles/auto-sales-defy-gloomy-forecasts-431ee1f5). __[GM](https://robinhood.com/us/en/stocks/GM/)__, __Kia__, __[Nissan](https://robinhood.com/us/en/stocks/NSANY/)__, and __[Honda](https://robinhood.com/us/en/stocks/HMC/)__ have all recently reported strong new-vehicle sales in the second quarter, while EV-only peers __[Tesla](https://robinhood.com/us/en/stocks/TSLA/)__ and __[Rivian](https://robinhood.com/us/en/stocks/RIVN/)__ delivered more vehicles than expected.

- __Hittin’ the gas:__ Research firm __Cox Automotive__ (think: Kelley Blue Book, Autotrader) jacked up its estimate of how many new vehicles will be sold this year to 15M, from just over 14M.

- __Butterfly doors:__ As people bought more expensive rides, including EVs, average new-car prices hit $46K last month. That’s up 3% since the start of the year.

__Shiny and new…__ American consumer confidence jumped to a 17-month high in June, even as some experts continued to anticipate a recession. Consumers’ warm-and-fuzzy economic feelings could help drive big-ticket buys like cars, but the open road may hide some speed bumps:

- __Full lots:__ With pandemic-related supply-chain kinks mostly ironed out, automakers’ inventories are growing after three years of being limited.

- __Bumpy road:__ Some analysts say production may’ve ramped up *too* much and that dealers could be left with a glut at the end of the year. Translation: potential discounts.

U-turn

__It’s hard to call a race midway…__ Despite recent rosy #s, Cox Automotive predicts that car buying will cool in the second half of this year (it still hasn’t caught up to pre-pandemic levels). Plus, as used-car prices have fallen from their highs, shoppers may opt for pre-owned versus new. And while consumers’ plans to buy pricey items (picture: cars, houses) have been in high gear, the latest Consumer Confidence Index suggests they could cool later this year as rates rise.

New-car sales soar as US shoppers shrug off sticker shock

Dow Jones

S&P 500

Nasdaq

Bitcoin

Elon Musk’s net worth has increased by about $100B this year

📱 Meta’s “Twitter killer”

__Regulators’ doors of perception…__ may be starting to crack open. The US Food and Drug Administration recently took a big step toward boosting psychedelic drug therapy. The agency — which regulates everything from food to cosmetics to tobacco — [issued](https://hightimes.com/news/fda-issues-draft-guidance-for-clinical-studies-on-psychedelics/) its first draft guidance for how it’ll suggest researchers design clinical trials for psychedelics. It could make the eventual process of gaining FDA approval clearer for drug companies seeking to develop psychedelic drugs intended for alternative therapies (translation: a potential business boom).

- __On the table:__ The FDA’s draft guidance mentions LSD, psilocybin, and MDMA.

- __Playing catch-up:__ Psychedelic-assisted therapy has been used to treat post-traumatic stress disorder, depression, eating disorders, and addiction. 

__Money follows culture…__ Even before the FDA moved to tee up clinical trials, business was ready to take a swing. By last year, 50+ psychedelic companies, including __[Compass Pathways](https://robinhood.com/us/en/stocks/CMPS/)__ and __[ATAI Life Sciences](https://robinhood.com/us/en/stocks/ATAI/)__, had gone public at a combined $2B+ valuation. Analysts expect the market will reach $12B by 2030, and it’s not just a US phenomenon. Australian doctors, for example, can now prescribe MDMA and psilocybin for the treatment of depression and PTSD. Culturally, psychedelics appear to have arrived. The best-seller “How to Change Your Mind” inspired a __[Netflix](https://robinhood.com/us/en/stocks/NFLX/)__ series, and hardly a month goes by without an article detailing Silicon Valley CEOs’ use of psychedelics.

Tuned in (Cole Burston/Getty Images)

DRUGS

__Durable foundations are built brick by brick…__ The road to FDA-approved psychedelic drugs has been long (and is ongoing). MAPS, a nonprofit that advocates for psychedelic therapy, recently held a 10K-person [conference](https://sherwoodmedia.com/snacks/massive-psychedelics-conference-sees-big-names-advocate-for-fda-approval/) in Denver attended by celebs including Aaron Rodgers and Melissa Etheridge. Historically, indigenous populations worldwide have used psychedelics for healing. Looking ahead: the FDA’s draft guidance represents a meaningful step for drug companies looking to enter the market, but hurdles remain. Namely, the DEA still classifies psychedelics as having “no currently accepted medical use.”

FDA creates a wake for psychedelic drugs as a flood of cash flows into alt therapies

__Dustin’ off the ol’ cubicle…__ The jobs market has stayed strong despite high interest rates and pesky inflation. In May, US hiring ramped up as employers added a whopping 339K jobs (economists had predicted 195K). And while industries like leisure and hospitality have seen a flood of new hires, they’ve started to cool. Meanwhile, unemployment has ticked higher. Some economists say the jobs market may’ve peaked as fewer Americans join the tail end of the Great Resignation. We’ll get the latest on the labor market when June’s job #s drop on Friday.

__501s with a fraying hem…__ __[Levi](https://robinhood.com/us/en/stocks/LEVI/)__'s has cemented itself as a multi-generation must-have. In the first quarter, its CEO said it was the “market share leader” among 18- to 30-year-olds after topping revenue and profit expectations. Its direct-to-consumer and ecommerce biz saw strong sales growth, too, contributing 42% of all revenue. But none of it fully offset excess inventory, a problem that has many retailers’ zippers stuck. We’ll see whether discounts to sell off the glut ate into Levi’s margins when the denim icon reports this week.

Events

Coming up this week

__Checkin’ the bill…__ Natural gas ended June costing half as much as it did the same time last year when prices hit a decade+ high as Europe bought US gas after Russia invaded Ukraine. But suppliers on both sides of the Atlantic saved up more than they needed given the unusually warm winter. Now there’s 15% more stored gas than the five-year average, which is setting up households for cheaper electric bills even as scorching heat blankets the US. FYI: last year 41% of the US’s electricity was generated by natural gas.

__Can you hear me now?...__ Last week President Biden announced a $42B plan to make high-speed internet available to every US household by 2030. About 6% of Americans lack broadband, and coverage gaps create hurdles for critical institutions like schools and libraries. The funds’ll be divvied up over the next two years, with each state receiving at least $107M, and up to $3B+ for those that need it most. In rural areas, nearly a quarter of residents (14.5M people) have no reliable broadband. The fresh $$ could be pivotal in closing the digital divide.

Zoom Out

Stories we’re watching

- __[Hot dog](https://sherwoodmedia.com/snacks/costco-comes-for-membership-sharers-as-the-subscription-squeeze-intensifies/):__ __[Costco](https://robinhood.com/us/en/stocks/COST/)__'s cracking down on membership sharing by checking cards *and* photo IDs. The bulk grocer follows in the unchill footsteps of Netflix, which reportedly boosted its paid subs after booting password-moochers.

- __[Rolax](https://sherwoodmedia.com/snacks/from-amazon-to-ebay-online-vendors-face-increased-scrutiny-as-the-inform-act/):__ The Inform Act is now in effect, requiring online marketplaces like __[Amazon](https://robinhood.com/us/en/stocks/AMZN/)__ to check some sellers’ gov’t and tax IDs. __[Home Depot](https://robinhood.com/us/en/stocks/HD/)__ and __[Best Buy](https://robinhood.com/us/en/stocks/BBY/)__ have been pushing to rein in shady resellers.

- __[AYCE](https://sherwoodmedia.com/snacks/the-all-you-can-eat-buffet-is-back-for-seconds-as-diners-search-for-value/):__ Buffets are back as consumers worry less about germs on communal piles of crab legs. Visits to __Golden Corral__, __Cici’s__, and __Pizza Ranch__ have spiked this year, with regular sit-downs seeing a smaller uptick.

ICYMI

Last week's highlights

The winner of the Tour de France will burn the equivalent of about 210 Big Macs

🍄 Psychedelic therapy’s moment

__3-minute vitamin ad…__ no skip button. __[Google](https://robinhood.com/us/en/stocks/GOOGL/)__ is facing intense scrutiny after an ad-analytics biz said the Silicon Valley giant repeatedly [broke](https://www.wsj.com/articles/google-violated-its-standards-in-ad-deals-research-finds-3e24e041) its own policies for video-ad placements. FYI: Google’s YouTube alone takes in 8% of the $47B spent yearly on US digital ads, and name-brand advertisers shell out big bucks for prime YouTube and webpage placement. But this week research firm __Adalytics__ dropped a bombshell report alleging that Google has violated the fine print of its video-ad deals 80% of the time — which potentially costs advertisers *billions*. 

- __ICYMI:__ The report said the ads ran in muted, auto-playing formats or appeared on undesirable webpages (like: clickbait).

- __VIPs:__ __Adalytics__ said ads from __[Macy’s](https://robinhood.com/us/en/stocks/M/)__, __[Disney](https://robinhood.com/us/en/stocks/DIS/)+__, and __[American Express](https://robinhood.com/us/en/stocks/AXP/)__ — plus gov’t agencies like Medicare and the Social Security Administration — were possibly affected.

- __Google__ disputed the findings in the report, saying it “makes many claims that are inaccurate.” But that hasn’t stopped some businesses from asking for their $$ back.

__Ad dilemma…__ While ad-placing platforms like __[Meta](https://robinhood.com/us/en/stocks/META/)__ and __Google__ have rules against deceptive ad practices, it’s an ongoing battle. Last year __Google__ said it blocked (or removed) 142M ads that broke its misrepresentation policy (picture: false advertising, brand impersonation). And last year Meta got fined $414M after EU regulators said it forced users to accept personalized ads.

Do not collect $200 (Leonardo Munoz/Getty Images)

Skip

__One spark can start a fire…__ and Google has its eyes on several. As recently as 2021, advertising made up 80% of its revenue. Now sales have dropped for the past two reported quarters. Moreover, EU regulators are calling to break up Google’s ad biz entirely. The build-up of problems could threaten Google’s ad reign just as the industry slows. Growth in digital-ad spend is forecast to dip below 10% this year for the first time in 14 years.

Advertisers push back against Google after a report accused the tech titan of faulty video-ad placements

__#Sponcon fail…__ __Shein__ invited six influencers to its factory in Guangzhou, China, where the social-media stars posted content praising the fast-fashion giant’s working conditions. The posts [went viral](https://www.buzzfeed.com/alexalisitza/reactions-shein-influencer-trip?) as TikTokers called out the ”vacation” as a PR gimmick that glossed over alleged labor-rights abuses.

- __Concerns:__ Last month US lawmakers asked for an independent audit of Shein over allegations that the retailer relies on Uyghur forced labor.

- __Ongoing issues:__ One investigation said Shein employees worked 18-hour shifts in unsafe environments for as little as $20/day.

- __Failing score:__ The Fashion Transparency Index, which measures brands’ sustainability and working conditions, rated Shein 2.2%... out of 100.

__Fast fashion’s factory problem…__ The $106B fast-fashion industry makes its money by quickly turning #trends into affordable ’fits. Shein’s not the only fashion co that’s gotten supply-chain side-eye. In 2013 a Bangladesh clothing factory collapse killed more than 1K people. __Forever21__ landed in hot water after accusations that it underpaid workers. Now __Zara__ and __Uniqlo__ are being sued in France over allegations related to Uyghur forced labor.

Unfluence

__You can’t influence your way out of structural problems…__ The internet didn’t buy the squeaky-clean narrative Shein’s influencer field trip presented, and now conversations about the brand’s labor practices dominate its hashtags. As it reportedly prepares to IPO, Shein may benefit from focusing on its supply chain over its socials.

Shein’s sponsored influencer trip backfires as consumers call out fast fashion’s labor record

- 🤔 __Sus…__ __Binance__ founder Changpeng “CZ” Zhao, who apparently splits time between Paris and Dubai, has [reportedly](https://www.semafor.com/article/06/29/2023/with-binance-under-attack-in-france-founder-cz-is-bunkered-down-in-dubai) been sticking to Dubai. French authorities were recently said to be investigating Binance in connection with money laundering.

- 🌶️ __Spicy…__ __FTX__ is actively working to [relaunch](https://www.wsj.com/articles/ftx-begins-talks-on-reboot-as-managers-uncover-past-misconduct-38ad7e3c) its international crypto exchange. If successful, a reborn FTX exchange would find a stricter regulatory landscape reshaped by FTX’s own implosion last year.

- 💰 __Spendy…__ __[MicroStrategy](https://robinhood.com/us/en/stocks/MSTR/)__ said it [bought](https://fortune.com/crypto/2023/06/28/michael-saylor-microstrategy-bitcoin-buying-spree-347-million/) nearly $350M worth of __[bitcoin](https://robinhood.com/us/en/crypto/BTC/)__ over the past two months. BTC is up 82% in the past six months as regulators crack down on altcoins like __[solana](https://robinhood.com/us/en/crypto/SOL/)__ and __[matic](https://robinhood.com/us/en/crypto/MATIC/)__.

The Crypto Catch-Up…

Wall Street intern pay has jumped 20% this year

💻 Google’s video-ad drama

__2 hours on the tarmac…__ $20 food voucher. As severe thunderstorms rip across the US, airlines are [feeling](https://www.cnbc.com/2023/06/27/summer-air-travel-severe-weather-faa-shortfalls-kick-off-rocky-start.html) the heat. Since Friday, 15K+ US flights have been delayed and nearly 5K canceled. The disruptions affected flights headed to New York and New Jersey airports — with delays averaging 3+ hours. Additional snags popped up in hubs like DC, Chicago, and Atlanta.

- __Rough skies:__ __[United](https://robinhood.com/us/en/stocks/UAL/)__ said the FAA “failed” it after storm-related restrictions forced the airline to cancel nearly a fifth of its Monday flights.

- __Déjà blues:__ __[JetBlue](https://robinhood.com/us/en/stocks/JBLU/)__ also saw a high # of delays, after which the airline told employees it had room to improve its response.

__A perfect storm…__ Summer is crucial for airlines’ balance sheets as folks pack planes and splurge on tix. Delta boosted its earnings guidance this week, pointing to “off the chain” travel demand. Still, stormy skies could rain on the profit parade. As of February, weather cancellations were up nearly 20 percentage points compared to 2018. What’s more, airlines are still grappling with staff shortages after a pandemic exodus. And setbacks add up: __[Southwest](https://robinhood.com/us/en/stocks/LUV/)__ said it expected to lose up to $425M on its holiday meltdown last year.

Not lovin' it (Selcuk Acar/Getty Images)

Stormy

__It’s more than a passing storm…__ As travel szn takes off and extreme weather picks up, airlines plan on getting put to the test. Summer travel is already topping prepandemic levels, and the FAA said more delays are likely. This July Fourth weekend, nearly 4.2M travelers are estimated to fly — an 11% increase over last year.

Severe weather jolts the airline industry as expected record-breaking summer travel takes off

__No free hot-dog lunch…__ __[Costco](https://robinhood.com/us/en/stocks/COST/)__ said it’ll [start checking](https://www.washingtonpost.com/business/2023/06/28/costco-clamping-down-sharing-membership-cards/) membership cards *and* photo IDs at its self-checkout kiosks. The goal: keep nonmembers out. Similar to the __[Walmart](https://robinhood.com/us/en/stocks/WMT/)__-owned Sam’s Club, Costco charges its 66M paying members a yearly subscription fee. In return, customers get access to the store’s bulk-pricing deals via membership cards they show at checkout. At least in theory. The big-box behemoth said it noticed an uptick in people sneaking in with someone else’s card.

- __Pay to shop:__ Members pay $60/year, with an “executive membership” costing $120.

- __Members only:__ Ensuring its shoppers are actual members matters because the chain makes most of its income from subs. Last year, membership fees raked in $4.2B. 

__When sharing isn’t caring…__ Costco isn’t the only biz sick of subscribers sharing the bounty. After several delays, last month __[Netflix](https://robinhood.com/us/en/stocks/NFLX/)__ said it’d start telling customers “your Netflix account is for you and the people you live with — your household.” Despite years of tolerating (and sometimes encouraging) password sharing, the streamer put the kibosh on the free rides. The ’Flix now charges sharers an extra $8/month for non-household accounts.

SLICE

__More users doesn’t always equal more profit…__ The sharing economy’s getting squeezed, and even companies that explicitly built sharing into membership perks have walked things back. This year __[American Express](https://robinhood.com/us/en/stocks/AXP/)__ said many cardholders could no longer bring guests into its airport Centurion Lounges for free (new charge: $50). While corporates’ anti-sharing moves may come off as Grinch-like, they stand to benefit bottom lines. BTW: despite grumblings about its crackdown, Netflix reportedly saw a lift in paying subs.

Costco comes for membership sharers as the subscription squeeze intensifies

Pickleball injuries may result in up to $500M in added healthcare costs this year

✈️ Airlines’ travel-season turbulence

__The temple of doom…__ an “Indiana Jones” title and an apt nickname for struggling US movie theaters. __[Disney](https://robinhood.com/us/en/stocks/DIS/)__'s “Indiana Jones and the Dial of Destiny” opens this week, and early tracking suggests the franchise finale could pull in an underwhelming $60M (well below its 2008 predecessor). The projections have some analysts [fearing](https://www.wsj.com/articles/box-office-fools-gold-dulls-theater-recovery-deb13547) that in-theater audiences may not return to prepandemic levels.

- __IP’s no guarantee:__ __[Universal](https://robinhood.com/us/en/stocks/CMCSA/)__'s hit “Mario Bros.” movie had the industry hopeful, but Disney’s “Little Mermaid” sales disappointed, while “The Flash” from __[Warner Bros.](https://robinhood.com/us/en/stocks/WBD/)__ tanked 72% in its second weekend.

- __Not great, Bob:__ Flicks released this year have so far pulled in $3.6B at the domestic box, a 31% drop from 2019 based on the same criteria. 

__Feeling down in front…__ With the writers’ strike heading toward the 60-day mark, Hollywood insiders aren’t hopeful about a bounce back: 75% of film-industry pros said ticket sales likely wouldn’t eclipse prepandemic #s for at least five years. Investors may be taking note: __[Cinemark](https://robinhood.com/us/en/stocks/CNK/)__ shares are down 15% from their June peak, and __[IMAX](https://robinhood.com/us/en/stocks/IMAX/)__ shares have fallen 7% in the same period. Still, July releases including “Mission: Impossible,” “Barbie,” and “Oppenheimer” could give theaters a much-needed breath of life.

Not in a museum (Jeff Spicer/Getty Images)

Action

__To find strength, Hollywood must search outside itself…__ International markets increasingly appear to be driving the industry. Overseas ticket sales outnumber North American sales 2-to-1, and 5 of the top 10 films in the first weekend of May were non-English-language movies. In the first quarter, IMAX reported that a third of its global revenue came from foreign content.

Hopes for a smashing summer box office fade heading into the July Fourth weekend

__$200 Fucci ≠ $2K Gucci…__ New legislation dubbed the “[Inform Act](https://www.cnbc.com/2023/06/27/the-inform-act-takes-effect-targeting-organized-retail-theft.html)” went into effect yesterday, marking the latest effort to stamp out counterfeit sales and tamp down retail theft. The law requires major online marketplaces like __[Amazon](https://robinhood.com/us/en/stocks/AMZN/)__ and __[eBay](https://robinhood.com/us/en/stocks/EBAY/)__ to verify third-party sellers’ personal and financial info. Going forward:

- __ID’d:__ Online vendors who’ve had 200+ sales and earned $5K+ in any continuous 12-month period in the past two years must provide platforms a gov’t and tax ID as well as bank account info.

- __Price tag:__ Marketplaces that don’t comply could be forced to pay $50K+ for each violation, and unverified sellers may have their accounts suspended.

- __FYI:__ US Customs and Border Protection seized $1B worth of counterfeit items last year — up 38% from 2021. And that’s just part of the puzzle…

__Retail Whac-A-Mole…__ As shopping online becomes ubiquitous, retailers from __[Home Depot](https://robinhood.com/us/en/stocks/HD/)__ to __[Best Buy](https://robinhood.com/us/en/stocks/BBY/)__ have pushed lawmakers to crack down on sites that let resellers set up digi-storefronts with little oversight. Those storefronts can provide additional outlets for IRL thieves to offload stolen goods. An estimated $500B worth of stolen and counterfeit stuff is sold through online marketplaces each year.

Checkout

__One loose string can undo a whole knot…__ While checking IDs may seem like a tiny speedbump, it could trip up bad actors flooding marketplaces with boosted merch or illegal dupes. Meanwhile, in-store retail theft could become less attractive if legislation successfully makes it harder to resell pinched products.

From Amazon to eBay, online vendors face increased scrutiny as the “Inform Act” goes into effect

Over a quarter of office workers worldwide say they want to change jobs in the next year

🎥 Hollywood’s blockbuster bust

__“Made in India”…__ is having a moment. Indian Prime Minister Narendra Modi and President Biden met in the US last week with some big tech CEOs. The goal: [ramp up](http://bloomberg.com/news/articles/2023-06-23/silicon-valley-ceos-get-biden-modi-pitch-to-invest-in-india) investments in the South Asian country that’s on pace to becoming the world’s fastest-growing economy. (FYI: India is the most populous country with 1.4B+ residents.) And tech biggies are vying to get in on the action:

- __Sparked up:__ __[Amazon](https://robinhood.com/us/en/stocks/AMZN/)__ said it would more than [double](https://techcrunch.com/2023/06/23/amazon-investment-india-jassy-modi/) its India investments to $26B by 2030 (with a big focus on growing its cloud biz), and __[Google](https://robinhood.com/us/en/stocks/GOOGL/)__ said it’d build a global fintech center there.

- __Green light:__ Chipmakers __[Applied Materials](https://robinhood.com/us/en/stocks/AMAT/)__ and __[Micron](https://robinhood.com/us/en/stocks/MU/)__ said they’ll spend a combined $1.2B in the country, and Elon Musk said __[Tesla](https://robinhood.com/us/en/stocks/TSLA/)__ plans to invest in India as soon as possible.

__A tech frenzy…__ Last year India ranked as the fifth-largest economy, overtaking the UK. From January to March of this year, India’s GDP growth outpaced that of China, the US, and Japan. Meanwhile, as US-China tensions escalate, more companies are boosting production in India to keep their supply chains running smoothly (aka: friend-shoring). __[Apple](https://robinhood.com/us/en/stocks/AAPL/)__ aims to make a quarter of its iPhones in India by 2025, and __[HP](https://robinhood.com/us/en/stocks/HPQ/)__ is looking to up manufacturing there too.

The place to be (Ashish Vaishnav/Getty Images)

$PEND

__Old ties can open new opportunities…__ Biden said the US’s relationship with India is stronger than ever, essentially flipping the script after years of regulatory and political turbulence. The US is now India’s #1 trading partner, with trade up 8X in the past two decades. The latest tech-spending announcements could just be the start: __[JPMorgan](https://robinhood.com/us/en/stocks/JPM/)__ already raised its economic forecast for India next year.

Amazon says it’ll invest billions in India as tech biggies go all in on the fast-growing economy

__55 burgers, 55 fries, 55 tacos…__ Buffets, declared dead in recent years, [are back](https://www.nytimes.com/2023/06/26/dining/buffet-restaurants-us.html) on the menu for US diners. Although the self-serve industry saw a steep pandemic drop-off as germ-weary customers said “pass” on shared tongs and communal food bars, demand has piled back up. Buffet mainstay Golden Corral says business is up 20% so far this year, and three leading US buffet chains (Golden Corral, Cici’s, and Pizza Ranch) saw a 125% spike in customer visits between January 2021 and this March.

- __All-you-can-imagine:__ Buffets are attracting customers by appealing to the __TikTok__ crowd with snap-worthy spreads (picture: charcuterie boards, towers of crab legs).

- __All-you-can-buy:__ In buffet hotspot Las Vegas, the Bellagio reopened its signature buffet, while Sin City’s largest buffet, at Caesars Palace, underwent a $10M renovation.

__Unlimited breadsticks, unlimited power…__ From diners to drive-ins to dives, foot traffic increased at almost all restaurant types last quarter as folks favored eating out. Family-friendly Olive Garden parent __[Darden Restaurants](https://robinhood.com/us/en/stocks/DRI/)__ beat Wall Street expectations in its earnings report last week with same-store sales increasing by 4%. And while the pandemic forced some restos to shift strategies, those shifts look like they’re paying off: __[Chipotle](https://robinhood.com/us/en/stocks/CMG/)__'s expansion into small towns is generating record opening sales.

Stuffed

__Customers are still shoppin’…__ for value. Despite inflation, Americans are making space in their budgets for deals. Visits to dollar stores are up, even among those with $100K+ incomes. Buffets, which let diners help themselves to endless plates of shrimp for one fixed price, offer people peace of mind that they’re getting their money’s (and belly’s) worth.

The all-you-can-eat buffet is back for seconds as diners search for value

Nasdaq data link logo

🇮🇳 Big Tech’s “Made in India” push

__Late-night heart-to-hearts…__ with ChatGPT. After 3 a.m. [convos](https://www.wsj.com/articles/softbanks-masayoshi-son-says-hes-focusing-on-ai-inventions-621089ac?mod=business_lead_pos7) with OpenAI’s bot, __[SoftBank](https://robinhood.com/us/en/stocks/SFTBY/)__ CEO Masayoshi Son had a revelation: *AI could lead SoftBank out of its rut*. Its stock popped last week after an AI-centric investor presentation. The Japanese tech investment firm is known for its Vision Fund, which has held major stakes in companies like __WeWork__, __Uber__, and __Alibaba__. Here’s a storytime, with quotes from SoftBank’s quirky earnings decks: 

- __“Valley of Coronavirus”:__ SoftBank’s iconic cartoon of [unicorns falling](https://www.bloomberg.com/opinion/articles/2020-05-18/the-unicorns-fell-into-a-ditch) into a ditch illustrated its struggle in early 2020 as the value of its Vision Fund plunged with billions in losses.

- __“Producer of Golden Eggs”:__ In 2021 it posted a *$46B* profit (a record for Japan) as shares in holdings like __DoorDash__ and __Coupang__ surged during IPO-palooza.

- __“Many Regrets”:__ [Slide 11](https://group.softbank/system/files/pdf/ir/presentations/2020/earnings-presentation_q4fy2020_01_en.pdf)’s poetic sentiment reflected SoftBank’s mood after a record $23B quarterly loss (its investments plunged as rates soared). It sold entire stakes in holdings including __Nvidia__ (which recently soared to a $1T valuation… womp).

- __“What is Mankind?”:__ After posing this q on [slide 4](https://group.softbank/system/files/pdf/ir/investors/shareholders/2023/shareholders-meeting_43_04_en.pdf) of last week’s presentation, SoftBank concluded that its future is artificial intelligence.

__AI of the tiger...__ Son wants SoftBank “to lead the AI revolution,” presumably through investments. He also said ChatGPT helped him brainstorm 600+ ideas, some of which the bot apparently praised as “feasible and wonderful.” He’s not the only one who’s caught the AI bug. A few stats:

- __168:__ # of times Big Tech leaders mentioned “AI” in recent earnings calls.

- __+30%:__ The techy Nasdaq’s gains this year, significantly outperforming the S&P 500. AI-associated names like __Nvidia__, __Symbiotic__, and __C3.ai__ have soared.

- __1 in 4__ new unicorns this year are AI startups.

Masa has a new vision (Alessandro Di Ciommo/Getty Images)

Slide

__Chasing the hype train is risky…__ when it’s barreling at full speed. AI investments could give SoftBank a boost, but going all in could risk repeating mistakes: last year, Son said he’d become "somewhat delirious" after tech valuations soared, and regrets all the $$ he funneled into startups like WeWork. While AI looks likely to stick, it’s hard to know what applications (and companies) will stay valuable when the initial boom fades.

Tech titan SoftBank dreams of an AI-inspired comeback, but risks reliving regrets

Mm-hmm, sure. So, what’s the catch? 

We know it may sound too good to be true. But thousands of investors are already smiling all the way to the bank, thanks to the fine-art investing platform Masterworks.  

__These results aren’t cherry-picking.__ This is the whole bushel. Masterworks has built a track record of 13 exits, realizing +10.4%, +27.3%, and +35.0% net returns, even while financial markets plummeted.

__But art? Really?__ Okay, skeptics, here are the numbers. Contemporary art prices:
- Outpaced the S&P 500 by 131% over the last 26 years
- Have the lowest correlation to equities of any asset class

Got your attention yet? Snacks readers can [skip the waitlist with this exclusive link](https://www.masterworks.com/?utm_source=snacks&utm_medium=newsletter&utm_campaign=6-26-23&utm_term=Snacks+readers&utm_content=banksyheart_banksy32_32return_pp_120_skip).*

Gif - Masterworks test - Bansky

A Banksy got everyday investors 32% returns?

__Checking on Chex…__ Snack star __General Mills__ is happy to spoil your dinner. When the Minnesota-based maker of Dunkaroos, Yoplait, Chex Mix, and cereals like Cheerios last reported, it beat sales-growth expectations. Higher prices played a role, but General Mills has more than just inflation going for it. Nearly half of US consumers are now eating at least three snacks a day, up 10% in the past two years — with snack sales hitting $181B last year. We'll see if the munching momentum continued when General Mills reports Wednesday. 

__Too many swooshes…__ __Nike__ reports on Thursday, and the world’s biggest shoe seller has a sneaker problem. Overstock has plagued the company like a wet sock, with inventory swelling 16% and 44% in the past two quarters. __Foot Locker__, which says Nike makes up 70% of its sales, recently cut its annual outlook and will likely have a glut of Nike kicks to move through markdowns. The shoe surplus comes as Nike pulls back on its direct-to-consumer efforts and pivots back to wholesale, which outpaced D2C growth last fall.

__Halo Effect…__ With pop icons like Beyoncé and Taylor Swift on tour, local economies are feeling their star power as fans travel to see their idols. Last month economists said Beyoncé’s “Renaissance” concert stops in Stockholm likely lifted Sweden’s inflation as hotel prices surged. It's not just Queen Bee: Taylor Swift’s “Eras” tour could add nearly *$5B* to the US economy. The average concertgoer is spending $720 over their budget for things like flights and food. __Morgan Stanley__ expects more pop-star “blips.”

__Double dough…__ Two of the largest grain-shipping and crop-processing companies, __Bunge__ and __Viterra__, plan to merge into the world’s second-biggest agri-business. Farmers say the megadeal could limit crop competition and drive up food prices. Bunge already reaped higher gluten profits after Russia’s invasion of Ukraine hit global grain supplies. Several countries’ regulatory authorities are expected to weigh in on the merger, but carb consolidation is standard: 90% of global grain trading and processing is controlled by four companies.

Zoom out

- __[Cluck](https://sherwoodmedia.com/snacks/the-usda-clears-cell-grown-meat-for-sale-as-labs-try-to-do-what-plant-based/):__ Lab meat is coming to US menus. For the first time, the USDA approved the sale of cell-grown chicken from two companies. The next challenge for cell-grown: overcoming the “ick factor.”

- __[Homer](https://sherwoodmedia.com/snacks/the-ftc-sues-amazon-saying-it-used-trickery-and-sabotaged-consumers-attempts/):__ The FTC sued __Amazon__, alleging it used “trickery” to get Prime sign-ups and made it hard to cancel. The suit says Amazon internally referred to the process for canceling Prime as “The Iliad.”

- __[Rx](https://sherwoodmedia.com/snacks/drugmakers-sue-over-medicares-new-pricing-rules-potentially-setting-the/):__ __Bristol-Myers Squibb__ joined __Merck__ is suing the US gov’t over a Medicare drug-pricing law that could cost them billions. __Eli Lilly__'s CEO said the potential revenue loss could also stunt R&D of future drugs.

Geckos scale walls by syncing electrons in their feet to ones on surfaces

🦄 SoftBank’s AI revelation

__Tastes just like chicken…__ The USDA [approved](https://www.nytimes.com/2023/06/21/us/lab-grown-meat-sale-approval.html) two companies to sell the US’s first lab-grown meat: chicken cultivated from animal cells in a lab. With previously granted FDA approvals in hand, __Upside Foods__ and __Eat Just__ plan to debut the experimental meat at two high-end restaurants in DC and San Francisco. There the Anton Egos of the world will decide whether science chicken tastes good or gives them the ick, and the companies can take any feedback into consideration as they expand production.

- __Foodie nation:__ The US is the second country to approve the sale of lab-grown meat, after Singapore, and experts say other countries tend to follow the USDA’s lead.

- __Cell-grown’s sell:__ Cell-grown is slaughter-free, and companies say it’s good for biodiversity and could reduce emissions, though critics debate some of the benefits.

- __Growing portions:__ 150+ companies have raised $3B to cultivate meat and seafood. The industry was worth about $250M in 2022 and is projected to hit $25B by 2030.

__Overcooked plant patties…__ Cell-grown companies are trying to enter the market as plant-based options wilt. As consumers questioned the healthfulness of the “meat” and its high price, __[Beyond Meat](https://robinhood.com/us/en/stocks/BYND/)__ and other plant-based products have seen sales flattening or falling. Cell-grown companies say the problem is in the patty, arguing their product is *real* meat “that preserves life,” Upside Foods’ CEO said. Big Meat disagrees and is lobbying to strip the “meat” label from cell-grown (like Big Dairy vs. alt-milks).

Homemade look, lab-made interior (Good Meat)

Experimeat

__Warming up a new product takes time…__ Getting approvals to sell cell-grown meat was slow going, and it may just be the first lap in a marathon of getting consumers to put it on their plates. As a never-been-done product, cell-grown meat has an ick factor to overcome. And if companies *can* conquer consumers’ taste buds, affordability will be the next challenge before cell-grown can transition from Michelin-starred restaurants to Walmart.

The USDA clears cell-grown meat for sale as labs try to do what plant-based couldn’t

__Rocky Mountain high…__ What’s being billed as the largest psychedelics conference ever is [underway](https://www.axios.com/local/denver/2023/06/20/psychedelics-conference-denver-mushrooms-spotlight) in Denver this week with 10K attendees, including music artist Jaden Smith and __Whole Foods__ cofounder John Mackey. NFL star Aaron Rodgers, speaking at the conference, credited ayahuasca with his back-to-back MVP awards. The event is a Colorado housewarming for the psychedelics industry, after the state voted last year to decriminalize psilocybin mushrooms.

- __Not for sale:__ Colorado law regulates the supervised use of psychedelic plants (think: in therapeutic treatments) but stops short of allowing recreational sales. First, experts say, more studies are needed.

- __Buddy system:__ Colorful Colorado is the second state to decriminalize psilocybin after Oregon. Oregon’s law went into effect this year and allows each city and county in the state to ban the practice if they choose (many have).

__Getting a foot in the ’shroom…__ Psychedelics like magic mushrooms, MDMA, and ketamine have become pharma darlings, as clinical trials show their potential as a treatment for mental-health conditions like PTSD. Investors are racing to tap into a market that analysts say could grow to $8B by 2027. This week, __Toms Shoes__ founder Blake Mycoskie pledged $100M to support research, and NY Mets owner Steve Cohen pledged $5M to the nonprofit hosting the Mile High conference.

Dose

__Hopes of returns are beating legal concerns…__ Despite still being early on the journey to FDA approval and recreational sale, investors hope that psychedelics can one day bring them the returns seen in cannabis legalization. VC bucks have poured into the space, with companies like __Transcend Therapeutics__, __Gilgamesh Pharmaceuticals__, and __Lusaris Therapeutics__ raising tens of millions this year alone. But even weed hasn’t yet been able to shake its federal classification as a [Schedule 1](https://www.dea.gov/drug-information/drug-scheduling) drug.

Massive psychedelics conference sees big names advocate for FDA approval

🪙 __Coins…__ __[Bitcoin](https://robinhood.com/us/en/crypto/BTC/)__'s price climbed past $30K as four institutional investors including __[BlackRock](https://robinhood.com/us/en/stocks/BLK/)__ filed applications with the SEC to launch [bitcoin ETFs](https://www.bloomberg.com/news/articles/2023-06-22/bitcoin-btc-surge-sparked-by-etf-optimism-pauses-around-30-000-mark). If approved, the spot ETFs would give investors crypto exposure without having to own coins. 

📜 __Policy…__ Fed Chair Powell said stablecoins (picture: __USDC__, __tether__) are a "form of money" and that the central bank should have a role in [regulating](https://decrypt.co/145703/fed-chair-powell-says-bitcoin-has-staying-power-as-an-asset-class) them. A House committee is set to vote on a bill detailing stablecoin regs next month. 

🤹‍♀️ __Quirky…__ An NYC crypto miner's in hot water and loving it. Bathhouse, a Brooklyn spa, said it's using heat generated by its __bitcoin__ mining rigs to warm its pools, and cooler water from tubs to chill its mining setup. Talk about a crypto dip.

The US population is older than ever with a median age last year of 39

🐔 Lab meat on the menu

__You can log out any time you like…__ but you can never leave? The FTC sued __[Amazon](https://robinhood.com/us/en/stocks/AMZN/)__ yesterday, saying it [fooled](https://www.wsj.com/articles/ftc-sues-amazon-over-manipulative-tactics-to-enroll-users-in-premium-service-85400564) millions of customers into signing up for Prime with “manipulative, coercive, or deceptive” user interfaces — and then intentionally made it hard for them to cancel their subscriptions. It’s the most aggressive FTC action against Amazon under the leadership of Chair Lina Khan, a staunch critic of Big Tech power. 

- __Primed or punked?__ Khan alleged that “Amazon tricked and trapped people into recurring subscriptions without their consent.”

- __Homeric effort:__ The suit says that Amazon internally [referred](https://www.nytimes.com/2023/06/21/technology/ftc-amazon-prime-lawsuit.html) to the process for canceling Prime as “The Iliad,” the epic Greek poem about the Trojan War. 

__*Sure* you wanna cancel?__ After all, you’ve only been asked five times. Prime members pay $140/year for “free” two-day shipping, plus other perks like streaming. Nearly 75% of all US households are estimated to have a Prime account, but growth has reportedly slumped. By one estimate, Prime finished last year with 168M US subscribers, down from 170M in 2021. That would mark the first time Prime growth stalled in the US (Amazon doesn’t share country-specific membership #s). As sub growth and online shopping slow, Amazon [reportedly](https://www.wsj.com/articles/amazon-plans-ad-tier-for-prime-video-streaming-service-8944fe51) plans to launch an ad tier for Prime to drum up fresh revenue.

Looking for the cancel button like (Artur Widak/Getty Images)

Homer

__Convenience can’t be used conveniently…__ Amazon has made it #frictionless to enroll in Prime and order online (think: one click), but it also uses a “four-page, six-click, fifteen-option cancellation process,” the FTC said. Having an inconvenient cancellation option *is* convenient for many companies. But retaining customers could get harder as the FTC looks to crack down on designs that make it tricky for consumers to cancel services.

The FTC sues Amazon, saying it used “trickery” and sabotaged consumers’ attempts to cancel Prime

__Not just for kids…__ __[Roblox](https://robinhood.com/us/en/stocks/RBLX/)__ is about to look a little more like “Grand Theft Auto.” The tween-favorite gaming platform said that, for the first time, it’ll let some users create [mature content](https://www.fastcompany.com/90911075/roblox-is-adding-content-for-its-growing-adult-user-base?), including experiences featuring blood, alcohol, and (unplayable) casinos. The content will be restricted to users 17 and older, who’ll have to verify their age by uploading a selfie and ID. 

- __Kidults:__ Until 2021, kids under 13 made up the majority of Roblox’s users. But that flipped this year, with Roblox notching a record number of daily users over 13 and saying 17- to 24-year-olds are now its fastest-growing demo.

- __Intentional:__ Roblox CEO David Baszucki shared a “vision for all ages” manifesto in May, outlining the platform’s plan to appeal to older users.

__Problem child(s)…__ Roblox’s main moneymaker is its virtual currency, called Robux, which users are encouraged to buy (or ask their parents to buy) after seeing in-game ads for items and experiences. But after a watchdog group filed an FTC complaint about these ads being served to kids, Roblox wiped them from the under-13 experience. Branded Roblox experiences, like Nikeland and Froot Loops World, have come under scrutiny too. Last year it started adding in-game ads directly from brands but barred younger kids from seeing them.

Matureverse

__It pays to grow up with your users…__ and Roblox is now 17. By appealing to non-tween audiences with more mature content like gory horror games and experiences like a Mariah Carey concert and a “Super NFL Tycoon” simulation, Roblox can make more $$ from more people. Now that it can’t serve ads to kids, older users are more important than ever — and they’re less likely to get grounded for buying too many Robux.

Roblox invites users to create mature content for its growing young-adult user base

US home prices have jumped 44% since January 2020

❌ Amazon Prime “trickery”

__Bitter pill…__ Pharma giants are [taking](https://www.cnbc.com/2023/06/20/drug-prices-drugmakers-aim-to-fight-medicare-negotiations-at-scotus.html) legal action to try to shut down a new drug-pricing law that could cost them billions. Some 65M Americans (most age 65 and older) are enrolled in Medicare, a federal health-insurance program — and the largest buyer of prescription drugs. Under President Biden’s Inflation Reduction Act, Medicare would be able to negotiate discounts of up to 60% on numerous prescription drugs. __[Merck](https://robinhood.com/us/en/stocks/MRK/)__ says its lucrative diabetes and cancer drugs would be subject to a “sham” negotiation program, which starts in 2026 with an initial round of 10 drugs. 

- __This month:__ Merck and __[Bristol-Myers Squibb](https://robinhood.com/us/en/stocks/BMY/)__ filed suits against the gov’t, arguing the policy is unconstitutional and could hit blockbuster drugs (some of which make up a quarter of their annual sales).

- __Last week:__ __[Eli Lilly](https://robinhood.com/us/en/stocks/LLY/)__'s CEO said the potential revenue loss could also stunt R&D of future drugs.

- __FYI:__ If companies don't comply, they’d face fines that are several times higher than their daily drug revenue and can be avoided only if they pull out of Medicare. 

__Refill relief…__ Lawmakers have fought for years to curb skyrocketing prescription costs. One study indicated that initial prices for new drugs have jumped 20% annually during the past 15 years. Last year nearly a fifth of US adults said they skipped or delayed taking medicine because of the cost. AARP said Medicare's new negotiations could [save](https://www.aarp.org/politics-society/advocacy/info-2022/medicare-budget-proposal.html) qualifying Americans an average of $800/year.

Side effects include lawsuits (Kyle Mazza/Getty Images)

__Solutions can come with side effects…__ By lowering drug costs for Medicare, the program could ease Rx affordability for millions and save taxpayers $102B through 2031. But as more drugmakers argue that it’s a threat to their revenue and research, the legal backlash is expected to intensify — and could end up in the Supreme Court.

Drugmakers sue over Medicare’s new pricing rules, potentially setting the stage for a SCOTUS showdown

__Takin’ over the world…__ one ad at a time. __[Snap](https://robinhood.com/us/en/stocks/SNAP/)__'s chatbot probably isn’t in the category of AI that has experts anxious over humanity’s demise, but the app still has big plans for “My AI.” 150M Snap users have exchanged billions of messages with the feed-pinned bot, and Snap’s hoping it can mine the data to [revive](https://www.wsj.com/articles/snapchat-users-embrace-of-ai-could-improve-ads-snap-ceo-says-210fc1f0?mod=pls_whats_news_us_business_f) its flailing ad biz. Last quarter Snap reported its first sales decline ever (ads = 99% of its revenue). 

- __MyByeBye:__ When My AI debuted in April, users were… not smitten. Frustrated that the bot couldn’t be removed, users blasted the app with one-star reviews — leading to an average US App Store rating of 1.7.

- __Target acquired:__ Boss Evan Spiegel said the bot could improve ad targeting, which the company has struggled with ever since __[Apple](https://robinhood.com/us/en/stocks/AAPL/)__'s privacy overhaul.

- __Sponsored chat:__ Snap started testing advertiser links in My AI convos (picture: chatting about travel plans, and then My AI dropping a link for cruise tickets).

__Adpocalyspe not now?…__ Despite fears that AI-powered search could mean the end of sponsored links as we know them, the ad industry is embracing the tech. Ads have found their way into __[Microsoft](https://robinhood.com/us/en/stocks/MSFT/)__'s ChatGPT-fueled Bing search, and the company is exploring AI tools that could predict an ad’s performance. __[Meta](https://robinhood.com/us/en/stocks/META/)__ has started letting advertisers try out its genAI ad products. __[Amazon](https://robinhood.com/us/en/stocks/AMZN/)__'s building out a team to create AI ad apps, and __[Google](https://robinhood.com/us/en/stocks/GOOGL/)__ recently launched AI tools that aim to help marketers with placements.

Chatty

__Monetizing too early is a risk…__ Infusing ads into AI chatbots and search engines runs the risk of losing users’ trust before it's been gained. But given the staggering costs of running AI servers, the risk may be necessary — unless companies can get users to pay for another subscription, like the $20/month ChatGPT Plus.

From Snap to Microsoft, Big Tech hopes AI can be the wind beneath its ad-biz wings

🛋️ *Like using Craigslist to find a new home for your couch…* 

Non-custodial exchanges facilitate crypto trades between customers but *don't* hold their coins — unlike custodial exchanges like __[Coinbase](https://robinhood.com/us/en/stocks/COIN/)__ and __Binance__. Decentralized exchanges like __[Uniswap](https://robinhood.com/us/en/crypto/UNI/)__ and __PancakeSwap__ are types of non-custodial exchanges. The CEO of __EDX Markets__, a new [non-custodial exchange](https://www.barrons.com/articles/edx-coinbase-crypto-exchange-binance-60662e8c), said __FTX__'s implosion created demand for non-custodials.

DEFI(NE)

Heard on the Block: "non-custodial exchange"

Donations to US charities declined last year — just the fourth drop since 1982