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

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

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

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

11 minutes of ads (Matt Winkelmeyer/Getty Images)

Play

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

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

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

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

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

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

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

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

Private

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

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

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

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

DEFI(NE)

Heard on the Block: "layer 2"

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

Dow Jones

S&P 500

Nasdaq

Bitcoin

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

🍿 Netflix’s (ad)option

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

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

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

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

Flop

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

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

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

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

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

Hooked

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

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

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

🛰️ Virgin’s anti-Orbit

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

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

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

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

Banking jitters spread (Nancy Lane/Getty Images)

Edge

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

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

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

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

Events

Coming up this week

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

Zoom out

Stories we’re watching

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

ICYMI

Last week's highlights

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

🏦 Banking jitters

__That escalated quickly…__ The __TikTok__-ban saga, which just a few months ago seemed to have been forgotten in a dusty corner, has intensified big-time. Earlier this month, President Biden supported [a bill](https://snacks.robinhood.com/newsletters/6wxiLf0iRxZlUulU1qvIH6/articles/4Vm354Syx1blY16GEISm4a/) that would give him the power to ban (or force a sale of) TikTok in the US. POTUS urged Congress to pass the bill because of national-security concerns. This week: 

- __Biden time:__ TikTok said that the Biden admin threatened to ban it in the US unless the popular app [separates](https://thehill.com/policy/technology/3902609-biden-administration-threatens-to-ban-tiktok-if-chinese-parent-company-doesnt-sell-stakes/) itself from its Chinese parent, __ByteDance__.

- __For You rage:__ Biden demanded that ByteDance agree to spin off TikTok. While ByteDance owns other apps — including Douyin, the Chinese (censored) version of TikTok — losing TikTok and its 100M American users would be a massive blow.

- __Endless scroll:__ Americans spend, on average, nearly an hour a day on TikTok — more than on either Facebook or Instagram. 

__Interesting timing…__ It may not be a coincidence that Biden threatened a Tik ban within a day of the Chinese government announcing an [overhaul](https://www.wsj.com/articles/chinas-communist-party-overhaul-deepens-control-over-finance-technology-6acdd43c) to strengthen its control over its tech sector. China’s Communist Party set up a new bureau to [mine data](https://www.technologyreview.com/2023/03/15/1069814/china-new-bureau-data-economiy/) for economic growth, and established a central technology commission to boost the party’s oversight of the sector. Chinese President Xi Jinping also [encouraged](https://www.cnn.com/2023/03/07/economy/china-two-sessions-xi-jinping-speech-us-challenges-intl-hnk/index.html) the country’s private companies to “fight” alongside the Communist Party. The US is worried TikTok could share American data with China.

The clock’s ticking (Olivier Douliery/Getty Images)

__Bad news for one is great news for some…__ __[Meta](https://robinhood.com/stocks/META/)__, __[Snap](https://robinhood.com/stocks/SNAP/)__, and __[Google](https://robinhood.com/stocks/GOOGL/)__ stock surged after reports of an increasingly likely TikTok ban. The disappearance of TikTok in the US would be a dream come true for Instagram, Snap, and YouTube. Despite their efforts to replicate TikTok’s success (think: Instagram Reels, Snap Spotlight, YouTube Shorts), they’re still losing engagement (and advertiser $$) to Gen Z mega favorite TikTok.

Biden threatens to ban TikTok unless it separates from its Chinese parent (and US social stocks pop)

__A glass from the past…__ returns to the dustbin of history. __Google__ said it would stop selling its [Glass Enterprise](https://snacks.robinhood.com/newsletters/2ta13i6miTQPNcfww0jH8g/articles/5LQAdAg1EQ5RERapBHMKUe/) smart glasses. The $1K camera-equipped lab-goggle-looking wearables were marketed for industrial use (picture: warehouse workers scanning crates with their faces) and were an evolution of 2013's much-hyped Google Glass. Google stopped selling the first (consumer-focused) version of Glass two years after its debut after it elicited immediate pushback — both on privacy *and* style grounds. 

- __Google pass:__ Glass was called antisocial and "too dorky to succeed" by the tech-forward Wired magazine.

- __Ogle glass:__ Concerns that Glass would be used surreptitiously to record patrons led several bars to ban the devices. 

__Face computers lose face…__ Google isn't the only biz to struggle with making smart glasses shine. In 2016 __Snap__ released $130 video-recording Spectacles, but apparently overestimated demand to the tune of $40M in losses. In 2021, __Meta__ [launched](https://snacks.robinhood.com/newsletters/IoFpxzaCMWYIRwnWz8IHa/articles/6aRpVMxqEwEvfe2Crkv3qp/) its $300 Ray-Ban Stories for video recording and sharing, but despite the fashion-forward frame, they seem to have failed to catch on. __[Apple](https://robinhood.com/stocks/AAPL/)__, one biz that could allay style and privacy objections, keeps delaying its rumored Apple Glasses. Meanwhile, VR headset sales fell last year, and Meta slashed the price of its Quest Pro just months after launch.

Look

__The higher the bar, the higher the value prop…__ and smart glasses have a high barrier to adoption without a high value prop. Getting a pricey tech product on a customer's face — vs. tucked inside a pocket — is a big ask. Unless wearable makers can demonstrate a compelling practical benefit, smart glasses might forever stay in their cases.

Google stops selling its smart glasses as face wearables struggle to gain traction 

📸 __Flashy…__ US and European law enforcement [shuttered](https://www.wsj.com/articles/chipmixer-is-shut-down-for-allegedly-laundering-3-billion-in-crypto-325a55ee) __ChipMixer__, a “crypto mixer” that lets people commingle funds to boost anonymity. Authorities said it was used by criminals, including North Korean hackers, to launder $3B+ in crypto. 

🤖 __Techy…__ The Fed said its instant-payments service, FedNow, will [go live](https://finance.yahoo.com/news/federal-reserve-to-launch-instant-payment-service-fednow-in-july-210022218.html) in July. The system could overhaul how Americans move money each day. Think: not having to wait for checks to clear could cut demand for payday loans. 

🪙 __Coins…__ __[Fidelity](https://robinhood.com/stocks/FNF/)__ quietly [opened](https://www.theblock.co/post/220298/fidelity-crypto-quietly-went-live-giving-millions-of-retail-customers-access-to-bitcoin-ether) its crypto service up to millions of retail customers, with __[bitcoin](https://robinhood.com/crypto/BTC/)__ and __[ether](https://robinhood.com/crypto/ETH/)__ available to trade. The timing suggests Fidelity isn’t dissuaded by crypto winter and increased regulatory scrutiny.

UNMIX

The Crypto Catch-Up…

Biden threatens to ban TikTok unless it separates from its Chinese parent

Lucille Ball was the first woman to own and run a major TV production company

🚫 Biden’s Tik-ban plan

__Blinked and missed it…__ This week __[Meta](https://robinhood.com/stocks/META/)__ quietly announced an end to its nonfungible-token platform (#sadtrombone). The [exit](https://www.barrons.com/articles/meta-nft-crypto-bitcoin-non-fungible-tokens-facebook-instagram-zuckerberg-7a4b56c5) followed grand ambitions: Meta launched NFTs on Facebook and Instagram last year in 100 countries, targeting adoption among its billions of users. It reportedly considered monetizing NFTs and said creators could mint tokens on __polygon__ and sell them to fans. Now Meta's looking to lean down as it focuses on “efficiency”:

- __Pink-slipped:__ On Tuesday, CEO Zuck said he planned to lay off 10K more employees after slashing 11K in November. 
- __Meta-hearse:__ Meta's Reality Labs division, which houses its metaverse projects, lost nearly $14B last year and is expected to lose *$16B* this year. 

__Nonfungible growin’…__ Meta may be ditching NFTs, but they're having a low-key moment. Though NFT trading volume has plunged from early 2022 highs, it jumped nearly 40% to $946M from December to January and hit $2B last month. Brands have found an NFT audience by tying tokens to pop-culture faves (like: HBO's "Game of Thrones" [collectables](https://snacks.robinhood.com/newsletters/6v5OnIrayfa5vXLtAWhJy1/articles/6YW2jKhtl22U6VpDi9vBi3/) and __[Starbucks](https://robinhood.com/stocks/SBUX/)’__ "journey stamps"). __[Amazon](https://robinhood.com/stocks/AMZN/)__ reportedly plans to launch a fashion-focused NFT marketplace next month. Meanwhile, [ordinals](https://snacks.robinhood.com/newsletters/hVxJ5P0UXNj7GiarHRYHR/articles/6h6QfaEiiWIYYTVHHiqAf/) birthed a new NFT market on the bitcoin blockchain. 

Unfortunate timing (Drew Angerer/Getty Images)

NFTrend

__Timing is everything…__ Meta announced its NFT push right as the algo stablecoin TerraUSD collapsed — kicking off crypto winter — and is now walking away as NFTs could be regaining relevance. It's not the first time Meta's missed the trend boat: its metaverse transformation kicked off as spenders shifted to prioritizing IRL [experiences](https://snacks.robinhood.com/newsletters/7Eii6CUWY0BFV8UUv3TpJD/articles/6HBcxIs3mE0INLHalLT7zn/), while recession fears made big bets like the metaverse even riskier investments. Recently, Meta announced its ChatGPT rival. Brands that miss trend timelines risk becoming leading indicators of trend death.

Meta ends its NFT push, in the latest example of bad trend timing (metaverse included)

__Blooming estates…__ __[Lennar](https://robinhood.com/stocks/LEN/)__, the US’s second-largest homebuilder, posted expectation-beating quarterly growth this week, even as debt-fatigued Americans cool on home buying. Lennar’s revenue and profit both grew, while home deliveries rose 9%. Lennar’s CEO said the beat was partly thanks to buyers accepting higher mortgage rates as “the new normal.” Still…

- __Small nails:__ Lennar’s new-home orders dipped 10% from last year, and the average price of its new-home sales dropped to $452K from $495K.
- __Big hammer:__ Mortgage rates fell this week after the bank collapses, but are still 2X higher than in 2020. And in February, US home sales fell for the 12th straight month.
- __Hard wall:__ Still, lofty house prices have stuck as supply remains low. Case in point: housing costs drove *70*%+ of consumer inflation last month.

__3BDRs + patio…__ break out the bidding paddles. Mid-pandemic, houses were built at the fastest pace in a decade as more Americans took advantage of low interest rates and fled to the ’burbs. But rates have surged, making homeownership unaffordable for even high earners. Meanwhile, current homeowners locked into lower rates are staying put and listing less, exacerbating the supply problem. 

Bloom

__The housing bud may start blooming…__ Homebuilder confidence rose for the third straight month in March as rates started to cool. That could set up the housing market for a warm spring (the season when most US home sales happen). Next week is crucial: if the Fed cools or pauses rate hikes, it could be a green light for more buyers to hit the market. 

Lennar’s sturdy earnings are a window into the housing market ahead of a key spring season

Meta ends its ambitious NFT push, in the latest example of bad trend timing

Campbell Soup’s Goldfish crackers are on track for $1B in annual sales

⌛ Meta's mistimed NFTs

__J. Powell may need an energy drink…__ or some chamomile. It’s only Wednesday, but it already feels like *next* Wednesday. A lot’s happened in the past week that could influence the Fed’s rate-hike decision on March 22. Three banks [collapsed](https://snacks.robinhood.com/newsletters/5AtBujCpd8XgLHLBe7atvu/articles/7zPyo6DswDCVfx1kuMG7Ja/) (including the second-biggest bank failure in US history) and the February inflation report came out yesterday. 

- __Top line:__ The pace of inflation cooled for the eighth straight month (good), but it’s not slowing as fast as the Fed would like (not so good).

- __No surprises:__ US consumer prices were up 0.4% for the month and 6% for the year, as expected. Energy dropped, but housing costs soared.

- __Reaction:__ Stocks popped after the release, and traders priced in an 85% chance that the Fed will hike rates by 25 basis points (down from 50 last week).

__Seeing the vault half full…__ __[Silvergate](https://robinhood.com/stocks/SI/)__, __Silicon Valley Bank__, and __[Signature Bank](https://robinhood.com/stocks/SBNY/)__ all collapsed this month. US regulators swooped in with extraordinary measures to guarantee that depositors at SVB and Signature would have access to their funds. Three bank failures in one week may not seem amazing from an economic perspective, but some investors [think](https://markets.businessinsider.com/news/stocks/why-silicon-valley-bank-collapse-good-for-stock-market-rates-2023-3) it could actually be *bullish* for markets. 

- __Bull case:__ Some now expect that bank failures will pressure the Fed to cool on rate hikes. Some Wall Street firms are even predicting that Powell will *pause* hikes (#Pow-se). __[Goldman Sachs](https://robinhood.com/stocks/GS/)__ said it no longer expects any hike on March 22 “in light of recent stress in the banking system.”

Considering a Pow-se? (Liu Jie/Getty Images)

Hike

__Panic could force the Fed’s hand…__ to cool its hiking crusade. The Biden admin and US regulators seem willing to do just about anything to prevent a banking crisis. And while the Fed wants to temper sticky inflation and the hot labor market, it *really* wants to avoid a crisis. The aggressive interest-rate environment contributed to bank failures and has been one of the main causes of the stock market’s woes.

Bank failures and slowing inflation could lead the Fed to cool (or even pause) rate hikes

__The Prop 22 saga…__ could be reaching its finale. On Monday, a California court [ruled](https://www.cnbc.com/2023/03/13/uber-lyft-shares-rise-after-california-court-upholds-prop-22.html) that gig companies *can* continue to treat their drivers as independent contractors instead of employees under Prop 22. Refresher: in 2021, a CA judge ruled that Prop 22 was unconstitutional and unenforceable, even after CA voters [passed](https://snacks.robinhood.com/newsletters/16eEsik1Fk53zullntgMTm/articles/1p7Zbl78TlS0t7oJltTCT0/) the bill. This new decision reverses that.

- __[Uber](https://robinhood.com/stocks/UBER/)__, __[Lyft](https://robinhood.com/stocks/LYFT/)__, and __[DoorDash](https://robinhood.com/stocks/DASH/)__ shares jumped on the gig-friendly news yesterday, despite the court’s additional ruling that gig companies can’t prevent drivers from joining unions and bargaining for better conditions.

__Uber by day…__ __DoorDash__ by moonlight. Workers are increasingly joining the gig economy to earn extra $$. Estimates [vary](https://www.bloomberg.com/news/articles/2023-03-06/millions-more-us-workers-possibly-self-employed-than-thought), but at least a tenth of the US workforce is made up of gig workers, and analysts predict hundreds of thousands more will join as inflation continues. Meanwhile, Europe [expects](https://www.reuters.com/markets/europe/eu-lawmakers-agree-tougher-draft-gig-labour-rules-2022-12-12/) its 28M gig workers to nearly double by 2025.

- __The gig model__ lets people work flexible hours and drive for several companies, but doesn’t offer full-time benefits (think: healthcare and PTO).

- __As the most populous US state__, CA is a critical market for gig companies, and its latest ruling could influence gig law across the country and abroad.

Surge

__The big gig debate isn’t over…__ Critics still don’t think Prop 22 provides critical labor protections (like: minimum wage, overtime, and health insurance). Now, many expect that the Service Employees International Union will appeal the ruling to the California Supreme Court. Meanwhile, EU lawmakers are drafting strict new gig-labor laws, which could go into effect next year.

Uber and Lyft spike on California’s Prop 22 win, but the big gig debate isn’t over yet

🤝 *Like a banking superapp… without the bank*

Decentralized finance, aka __DeFi__, describes peer-to-peer financial services done on the blockchain through smart contracts. Think: borrowing or lending crypto, earning interest, or trading digital assets like NFTs, all without the involvement of a third party like a bank or crypto exchange. This week, the __Euler Finance__ [DeFi protocol](https://www.bloomberg.com/news/articles/2023-03-13/defi-s-euler-finance-hit-by-197-million-hack-experts-say) lost $197M worth of crypto in a flash loan attack.

Heard on the Block: "DeFi"

For the first time since 1987, more vinyl records were sold last year in the US than CDs

🤔 The Fed post-SVB

__From ski resort to last resort…__ Earlier this month __Silicon Valley Bank__ hosted a “snow summit” for tech CFOs at the Deer Valley ski resort in Utah. Last week, SVB tried to borrow from the Fed — a lender of last resort — to avoid collapsing (spoiler: it still collapsed). Here’s a high-level recap of the second-largest bank failure in US history: 

- __Who:__ Silicon Valley Bank was the go-to for tech startups, servicing about half of America’s venture-backed tech companies. 
- __Rise:__ SVB was flooded with deposits in 2021 as startups easily raised venture cash in an extra-low-interest-rate environment, parking their funds at SVB. 
- __Problem:__ Banks largely make $$ by making loans, but SVB’s clients were already flush with cash. Plus, interest rates on loans (especially short term) were super low. 
- __“Solution”:__ To earn a slightly higher interest rate on its loans, SVB invested most of its deposits into US Treasury bonds with long durations (think: 10+ years). 
- __Risk:__ If interest rates soared, the value of SVB’s bond portfolio would plunge (because its old bonds would be paying out at lower interest rates). 
- __Result:__ Interest rates did in fact soar. The market value of SVB’s bonds plummeted by $15B (and its savvy customers paid attention). 
- __Re-tweet:__ SVB’s close-knit clients chatted and pulled their cash out at the same time (on Thursday alone, they tried to withdraw $42B — a quarter of SVB’s total deposits).
- __Reckoning:__ SVB ultimately couldn’t meet withdrawal requests, the FDIC took control and declared it insolvent, and panic ensued (__[Signature Bank](https://robinhood.com/stocks/SBNY/)__ also failed). 

__Pulling out all the (back)stops…__ To avoid more bank runs, regulators announced an emergency backstop to ensure that all depositors at both failed banks would have access to all their funds (as of yesterday). The Fed is also creating a “Bank Term Funding Program” to offer loans to financial institutions who present high-quality securities (think: Treasurys) as collateral — instead of having to fire-sell securities during times of stress.

- __The FDIC__ guarantees customer deposits of up to $250K at every insured bank, but most of SVB’s and Signature Bank’s deposits were *un*insured (think: tech companies with way more than $250K). Still, the FDIC said it would make *all* depositors at these two banks whole, regardless of account size. 

Silicon Valley blues (Justin Sullivan/Getty Images)

Resort

__Panic can be a self-fulfilling prophecy…__ which is why the government is taking extraordinary measures to contain the damage. The three banks that failed this month (including Silvergate) had an unusually high concentration of deposits from tech and crypto companies. Regular folks weren’t likely to have accounts there, and regular folks are *also* less likely to have uninsured deposits (aka: $250K+ in one account). Still, if companies are at risk of losing millions in deposits, then people are at risk of losing paychecks — and damage control could continue to be key to containing further contagion. 

US regulators rush to limit banking contagion after Silicon Valley Bank’s collapse

__Cutting it close…__ Crypto had a weekend it'd rather forget. __Circle__, the biz behind __USDC__ (the second-largest [stablecoin](https://snacks.robinhood.com/newsletters/1alSYApz9fMDqEf8i3IPRi/articles/1vwhQv8VIIqij4eXh9Wsvw/)), said on Friday that $3.3B of the stablecoin's US-dollar reserves were in the failed __Silicon Valley Bank__ — which regulators had taken over earlier that day. With the future of SVB's deposits in doubt, crypto investors worried that USDC might no longer be fully reserved (aka: backed one to one with US dollars). 

- __The drop:__ USDC, which was designed to always = $1, depegged over the weekend. The stablecoin fell to as low as 87 cents. 
- __The climb:__ Circle said it'd "cover any shortfall," and on Sunday the gov’t said all SVB depositors would be made whole. Yesterday USDC regained its $1 peg. 

__Have crypto, will travel…__ While SVB's collapse sent shockwaves through crypto, it wasn't the first crypto-friendly bank to run into trouble. Last week crypto [mega bank](https://snacks.robinhood.com/newsletters/1N6EVPNiFMVnsRFMeZq1Si/articles/7mcLpvg5uE1w1Dg08UBtdR/) __[Silvergate](https://robinhood.com/stocks/SI/)__ said it'd shut down after a surge in post-__FTX__ withdrawals. And on Sunday regulators moved to close New York's __Signature Bank__ (over a fourth of its deposits were from crypto companies like __[Coinbase](https://robinhood.com/stocks/COIN/)__ and __Paxos__). Now, with three big crypto banking players off the board, the industry’s [scrambling](https://www.bloomberg.com/news/articles/2023-03-13/crypto-scours-the-globe-for-banks-to-replace-collapsed-us-lenders) to find alts.

CHAIN

__Crypto can't shake TradFi's grip…__ Circle's rough weekend is a reminder that crypto's fortunes remain tied to traditional finance (aka: TradFi). It wasn't just the stablecoin heavyweight that was forced to face this reality: bankrupt crypto lender __BlockFi__ and __Ripple Labs__ — the biz associated with the $19B __XRP__ token — both had exposure to SVB. Still, some crypto fans see the recent bank failures as an argument *for* digital assets. Think: self-custodied crypto vs. bank-custodied dollars.

SVB's implosion depegged the second-largest stablecoin, highlighting crypto's dependence on traditional banking

As home prices soar, 3M US households making $150K+/year are still renting

🏦 Silicon Valley spillover

__Prada? In this economy?…__ “I could have my Gucci on” takes a literal turn: 62% of respondents in a new __Saks Fifth Avenue__ survey said they [planned](https://www.bloomberg.com/news/articles/2023-03-06/shoppers-are-cooling-on-luxury-purchases-saks-fifth-avenue-says) to spend the same or more on luxury goods in the coming months. It’s a theme: global luxury sales grew 22% last year as consumers shrugged off price hikes from brands like __Chanel__ and __Hermès__. In January, Dior owner __Moët Hennessy Louis Vuitton__ (aka: LVMH) reported record revenue and profit, and last week __Prada__ reported booming annual sales. 

__Not so home alone…__ It might seem odd that luxury sales are thriving in this high-interest-rate, recession-flavored environment. But an unlikely cohort may be keeping the cash flowing: young adults who moved back in with the ’rents (#no-pay-rent). Nearly half of US adults 18 to 29 live at home, and __Morgan Stanley__ suggested that some of that money saved on housing is being spent on handbags. Spending by Gen Z and millennials accounted for all of the luxury sector's growth last year. But rent-free livin' is probably not the only luxury booster: 

- __IOU for Jacquemus:__ Consumers have been leveraging credit and buy now, pay later services to make flashy purchases. Credit-card debt is at a record high, soaring 19% last quarter. 
- __Gucci-gram:__ Social media is driving luxe splurging among younger consumers, who see designer staples as TikTok status symbols.
- __The rich = still richer:__ The top 40% of earners built up $1T+ in extra savings during the pandemic.

Bags in bags (Robert Alexander/Getty Images)

Flex

__A “richcession” could be coming…__ because even luxury's not immune to macro trends. Shoppers earning between $100K and $200K are feeling more cautious, and some higher earners have been trading down (even __Walmart__ said it's attracting higher-income customers). Because mass layoffs have disproportionately affected higher-income workers (think: tech), wealthier Americans could fare worse than usual in a down market. That could lead to a “richcession,” The Wall Street Journal [said](https://www.wsj.com/articles/get-ready-for-the-richcession-11672615577). Meanwhile, the hospitality sector (picture: bars, hotels) — which employs Americans with lower incomes — is one of the US’s fastest-growing employers.

Shoppers aren't skimping on luxury, but a “richcession” could be on the horizon

__The bot battle intensifies…__ __Microsoft__ is set to [host](https://www.engadget.com/microsoft-is-holding-a-future-of-work-ai-event-on-march-16th-165818278.html) a “Future of Work With AI” event on Thursday, and it’s hoping to excel with some ChatGPT-fueled power points. A possible outlook: Microsoft *could* introduce AI-infused versions of apps like Word and Outlook (think: email-reply suggestions). It’s *already* integrated AI into its “new Bing” search. Recently, rival __Google__ held an event to show off its Bard bot, while __Meta__ introduced LLaMA. But concerns around broad use of AI tech remain (especially after the Bing chatbot went viral for unhinged convos). 

__Blooming estates…__ The housing market’s been in a chill, but __Lennar__ could experience warmer days ahead. Last quarter the nation’s second-largest homebuilder by sales beat on earnings, but revenue fell short after its new-home orders dipped 15%. High interest rates put a squeeze on housing affordability, sending mortgage applications to a 28-year low. But inventory is also low, as homeowners locked into low rates stay put. Now bidding wars are breaking out for what’s left. The lingering demand could lift Lennar’s results when it reports Thursday.

__Goodbye, unlimited snacks…__ As corporations cut costs and shift to growth mode, cushy employee perks are [vanishing](https://snacks.robinhood.com/newsletters/52n5q990ifpz2YhcWhQvqn/) fast. __Meta__ ended free laundry, __Salesforce__ canceled its wellness retreat, and __Goldman Sachs__ nixed free cabs to the office. It’s not just the fun stuff: about half of US companies plan to cut benefits like parental leave, childcare subsidies, and adoption programs. Disappearing perks and layoffs are just a few symptoms of corporates' profit push, which could translate to better returns for investors.

__TikTok on the clock…__ ’cuz the drama don’t stop. Last week the White House endorsed a bipartisan bill that could give President Biden the power to ban TikTok in the US (or force a sale) — *and* urged Congress to pass it ASAP over national-security concerns. It’s expected to pass in the GOP-controlled House, but its fate is more TBD in the Dem-led Senate. Critics of the bill could also bring challenges over free-speech concerns (FYI: 100M Americans use the app). A Tik ban would be a huge boon for __Meta’s__ Instagram and __Google’s__ YouTube.

Zoom Out

- __[Lead](https://snacks.robinhood.com/newsletters/6egD8EKaKsuXeJXn0jLxRV/articles/4vmKfnPR8bRXWs5vF10QpA/):__ Women leaders are leaving companies at the highest rate ever as they continue to be passed over for promotions. Now companies risk losing their current (and next generation) of female leaders.
- __[Score](https://snacks.robinhood.com/newsletters/1BUh6EMXa2ElyqCFBuv5qn/articles/1uWpxgEpsoY47JG34sPpAF/):__ __Dick’s Sporting Goods__ dropped record earnings as shoppers splurged on everything from footwear to team sports merch. Dick’s benefited as shoppers put a $$ premium on their active lifestyles.
- __[Register](https://snacks.robinhood.com/newsletters/60A6ahVYR5KpMBNjxn77SE/articles/2QXhkJdnxyvhz8mY07ZAYG/):__ __Amazon__ plans to close eight of its futuristic Amazon Go convenience stores next month as it backs off of in-person retail. ICYMI: Amazon's brick-and-mortar biz represents only 3% of its revenue.

Clara Zetkin first proposed an international day to advocate for women's demands in 1910

🛍️ Luxury's "richcession"

__*Farewell, unlimited kombucha tap…*__ and free post-meeting Pilates. As corporations prioritize cost cuts, cushy employee perks that’ve long been used to attract talent are vanishing faster than tortillas at a build-your-own-taco happy hour. From Silicon Valley’s tech titans to Wall Street’s banking walruses, the “perk-cession” has arrived, The Wall Street Journal [reports](https://www.wsj.com/articles/the-perk-cession-is-under-way-at-some-companies-9cb04e9c?mod=business_lead_pos5). 

- __Companies are slashing benefits__ like barista-brewed coffee, fitness classes, pet insurance, extra PTO days, and catered meals.

- __Some examples:__ __[Meta](https://robinhood.com/stocks/META/)__ ended free laundry and dry cleaning, __[Salesforce](https://robinhood.com/stocks/CRM/)__ canceled its wellness retreat, and __[Goldman Sachs](https://robinhood.com/stocks/GS/)__ nixed free cabs to the office.

- __Not just the fun stuff…__ About half of US companies plan to cut benefits like parental leave, childcare subsidies, and adoption programs, a new survey [suggested](https://www.bloomberg.com/news/articles/2023-03-09/parental-leave-child-care-benefits-face-cuts-as-recession-looms). 

__Hard fork…__ The perk-cession comes after mass layoffs at companies that are scaling back after hyper growth during the pandemic. Meta, famous for its cushy office perks, slashed 11K employees in the biggest layoff of the year so far. Beyond tech, banks like __Goldman__ and __[Citi](https://robinhood.com/stocks/C/)__ and manufacturers like __[GM](https://robinhood.com/stocks/GM/)__ and __[Ford](https://robinhood.com/stocks/F/)__ have announced reductions. 

- __But the US job market is historically *hot*:__ In January there were nearly two open roles for each available worker, and unemployment was just 3.4%.

- __Unbalanced:__ But that’s largely thanks to the hospitality industry (think: hotels, restaurants), which became the US’s fastest-growing employer.

So long, ping-pong (Kim Kulish/Getty Images)

Perky

__Perk-cession is a symptom…__ of the efficiency bug. Instead of growth at all costs, the focus for many companies is now profit at *less* cost — which means “efficiency” is key. And ping-pong tables don’t exactly scream efficiency. Disappearing perks and layoffs are just a few symptoms of the profit focus, which could translate to better returns for investors. Meta shares popped after Zuck announced 2023 was the company’s “[year of efficiency](https://snacks.robinhood.com/newsletters/4Tr1pVtVj5AQBMTXX7CQ0g/).” 

The “perk-cession” has landed: companies are cutting back on employee benefits as profit takes precedence

__Roadblock ahead…__ __[Uber](https://robinhood.com/stocks/UBER/)__ is [reportedly](https://www.bloomberg.com/news/articles/2023-03-08/uber-technologies-is-said-to-consider-spinning-off-freight-logistics-division) considering spinning off its freight division as the trucking industry hits some bumps. The ride-hailing leader launched Uber Freight in 2017, connecting semitruck drivers with companies that make high-volume deliveries (think: a truck full of Pepsi). Last quarter, Freight’s sales grew 43% to $1.5B, and made up nearly a fifth of Uber’s total revenue. But in January Uber Freight said it would cut 3% of its workforce as trucking cools. 

- __Initial Truck Offering?__ Uber is said to be thinking of spinning off Freight as a separate publicly traded company, or just selling it altogether. But it’s TBD if either will happen.

__Slowing the (freight) train…__ During the pandemic, trucking was essential in delivering tons of backlogged goods across the nation. But as supply chains start to balance out, so has demand. Last quarter truckload freight deliveries fell 7%, the biggest drop since 2020. Now analysts say shippers will have to charge even less to stay competitive, which could eat into profits.

- __Delivery doldrums:__ __[UPS](https://robinhood.com/stocks/UPS/)__ warned its annual sales could fall for the first time since 2009, and rival __[FedEx](https://robinhood.com/stocks/FDX/)__ saw its quarterly profits dip.

- __Oh ship:__ Global shipping demand has also [dropped](https://www.wsj.com/articles/idled-ships-empty-containers-ocean-shipping-faces-its-biggest-slump-in-years-6f8dfcc4) from pandemic highs. It now costs less than $1.5K to ship a container from China to LA vs. $15K a year ago.

Cargo

__Sometimes you can do more with less…__ Ditching Freight could help Uber focus on its core ride-hail and food-delivery businesses, both of which saw record growth last quarter. While offering different services can be helpful, Uber may’ve realized it was diversified enough when its food-delivery biz helped offset a major ride-hail downturn during lockdowns.

Uber may spin off its truck-focused freight biz as the lockdown logistics boom cools

💰 __Costly…__ Crypto mega bank __[Silvergate](https://robinhood.com/stocks/SI/)__ said it would [shut down](https://www.wsj.com/articles/crypto-bank-silvergate-to-shut-down-repay-deposits-4bc2a469) after being forced to sell assets [at a loss](https://snacks.robinhood.com/newsletters/1N6EVPNiFMVnsRFMeZq1Si/articles/7mcLpvg5uE1w1Dg08UBtdR/) to cover a rush of withdrawals post-__FTX__. The closure of crypto’s go-to bank could make it harder for industry players to move $$. 

📜 __Policy…__ CFTC Chair Rostin Behnam [said](https://fortune.com/crypto/2023/03/08/stablecoins-ether-commodities-cftc-rostin-behnam-sec-gary-gensler/) that __ethereum__ and stablecoins are commodities — aka: should be regulated by *his* agency. Note: SEC Chair Gary Gensler likely disagrees. He's argued that all crypto (except __[bitcoin](https://robinhood.com/crypto/BTC/)__) may actually be a security.

🌶️ __Spicy…__ __Yuga Lab's__ bitcoin NFT (aka: [ordinal](https://snacks.robinhood.com/newsletters/hVxJ5P0UXNj7GiarHRYHR/articles/6h6QfaEiiWIYYTVHHiqAf/)) auction brought in $16.5M. But the creator of ordinals [blasted](https://decrypt.co/122771/critic-says-yuga-labs-bitcoin-nfts-auction-sets-really-bad-precedent) the process — which required that bidders send their BTC to Yuga — suggesting it could be abused by scammers.

ORDINOT

The “perk-cession” has landed: companies cut employee benefits as profit takes precedence

As of 2021, there were 4M more women in the US than men

🌮 “Perk-cession” problems

__An appetite for growth…__ __[WW International](https://robinhood.com/stocks/WW/)__ (aka: WeightWatchers) has its eye on telehealth. The OG weight-loss biz said it's buying health biz __Sequence__ for $106M. Sequence's members pay $100/month for access to video appointments with docs who can prescribe weight-loss meds like Wegovy. WW says prescription meds can complement its lifestyle-based "points" program. 

- __Sell-ehealth:__ The latest weight-loss push involves a class of drugs that include Wegovy and Ozempic. While Wegovy is FDA-approved for weight management, Ozempic is not (it’s approved to treat diabetes).
- __Hot topic:__ Elon Musk and Chelsea Handler are just two of several celebs who've said they've taken one of these injectable drugs.
- __StockWatchers:__ WW's stock jumped nearly 80% after the Sequence deal announcement, but is down 90% over the past five years as subscriptions have sagged.

__The doctor is in…__ your iPhone. Telemedicine boomed during the pandemic, when trips to the doc’s office carried heightened Covid risks. But the path ahead is less clear. While __[Teladoc](https://robinhood.com/stocks/TDOC/)__ and __[Hims & Hers Health](https://robinhood.com/stocks/HIMS/)__ are still seeing some growth, other players like __[GoodRx](https://robinhood.com/stocks/GDRX/)__ saw declines. Meanwhile, scrutiny’s heating up: last year __Cerebral__ paused prescriptions of controlled substances like Adderall after regulators reportedly began investigating. Now, as the Biden admin moves to require *in-person* doctor visits for prescriptions like Adderall and Oxycontin, the telehealth industry could pivot to cater to a growing demand for weight-loss meds.

On-screen appointment (Rafael Henrique/Getty Images)

__You don’t need to buy the skyscraper…__ sometimes all it takes is a blueprint. WeightWatchers is one of the better-known weight-loss brands, but declining subs suggest it’s lost its star power. Meanwhile, Sequence is relatively unknown with only 24K members. Yet it has the prescription foundation that could help WW build on a growing trend: weight-loss meds prescribed virtually. 

WeightWatchers steps into the Ozempic market as the telehealth industry tries to find its footing

__“The Great Breakup” is here…__ and it’s not a new rom-com. A recent __McKinsey__ [study](https://www.mckinsey.com/featured-insights/diversity-and-inclusion/women-in-the-workplace) says women leaders are leaving their companies at the highest rate *ever* as they demand more from their workplaces. Obstacles to getting promoted, pay gaps, and office microaggressions are all contributing to departures. Female leaders are 2X as likely as male leaders to be mistaken for someone in a junior position. And in the US women are paid 17% less than men. So while women have made major strides in the past century, leadership gaps remain: 

- __Two steps ahead:__ For the first time in history, female CEOs run more than a tenth of Fortune 500 companies, including names like __[GM](https://robinhood.com/stocks/GM/?sharer_id=brandoo1255)__, __[Oracle](https://robinhood.com/stocks/ORCL/)__, __[Walgreens](https://robinhood.com/stocks/WBA/)__, and __[AMD](https://robinhood.com/stocks/AMD/)__. 
- __Still four steps back:__ Only one in five C-suite execs is a woman, and just one in 20 is a woman of color. Men also still make up the vast majority of S&P 500 board seats, despite the fact that companies with more women leaders tend to outperform. 

__Two weeks’ notice…__ Despite some gains over the past eight years, women are still underrepresented at each level on the corporate ladder. Men are more likely to be promoted from entry to management positions — a problem known as “the broken rung” — making it harder for women to climb the ranks. Only 87 women are promoted to managerial positions for every 100 men, and it’s lower for women of color.

Notice

__It’s a self-feeding cycle…__ until the broken rung is fixed. When there are fewer women in top positions, women are less likely to have the same advancement opportunities as their male counterparts. Now companies risk losing the relatively few women leaders they have left — and consequently could risk losing the *next* generation of leaders.

Women leaders are switching jobs at the highest rate as “the broken rung” stalls promotions

WeightWatchers steps into the Ozempic market as telehealth tries to find its footing

Americans want to delete Instagram more than any other app, a search-trend analysis found