__Like Conor McGregor vs. the Paul Bros…__ This week the Securities and Exchange Commission [sued](https://www.axios.com/2023/06/06/sec-sues-coinbase-binance) the No. 1 and No. 2 largest crypto exchanges, __Binance__ and __[Coinbase](https://robinhood.com/us/en/stocks/COIN/)__. The separate lawsuits could be a regulatory KO for crypto companies in a smackdown with regulators that’s been escalating since __FTX__ collapsed in November, taking customer funds down with it.

- __The charges:__ The SEC said that Binance and Coinbase are operating as unregistered exchanges in the US, buying and selling crypto assets that the SEC now classifies as securities (including popular tokens like Solana and Cardano). It also said Binance mishandled customer funds, among other charges.

- __The consequences:__ Significant fines and penalties are on the table. Bigger picture: If it’s decided the exchanges broke US laws, more crypto companies could move operations to crypto-friendlier countries (which some have already started doing).

__Two POVs…__ For the umpteenth time, SEC Chair Gary Gensler called crypto a “Wild West” industry that intentionally skirts the rules. SEC Enforcement Chief Gurbir Grewal said, “You simply can't ignore the rules because you don’t like them or because you’d prefer different ones.” But many crypto companies have yelled “nuh-uh!” on repeat, calling out regulators for relying on “regulation by enforcement,” instead of providing clear guidance up front.

Taming the “Wild West”? (Kevin Dietsch/Getty Images)

CryptoKeeper

__If crypto companies were in the Shire before…__ now they’re spotlighted by the Eye of Sauron. Whether they wanted rules or not, crypto companies have avoided many of the rules and regulations traditional US financial companies must comply with. The crackdown could slow an industry known to move fast (think: fewer new tokens), and Coinbase said the SEC’s ability to deny new listings could hurt its transaction revenue. Yet consumers may be better protected.

The SEC sues the 2 biggest crypto exchanges in a one-two punch for the industry

__If you can’t beat ’em…__ Yesterday the PGA Tour agreed to “join under one umbrella”
with the Saudi-backed LIV Golf, ending a heated rivalry. In a joint statement, LIV, the PGA, and DP World Tour (aka the European Tour) said they'd work together to combine their businesses and drive fan engagement. The merger will end all legal disputes between the tours, and potentially bring some champion players back under the PGA’s 94-year-old umbrella. 

- __Green treaty:__ The PGA will have majority voting rights and control over the new entity (which doesn't have a name yet), but final details won’t come for a few months.

- __Mixed reviews:__ While some pros say the merger is good for the game, others are accusing the PGA of selling out to the controversial Saudi wealth fund (which has been accused of engaging in sportswashing). Some players missed out on hundreds of millions by refusing to work with LIV and stay loyal to the PGA. 

__Tough competition…__ LIV broke into pro golf last June, luring top-tier players with contracts worth $100M+ and record tournament prizes. But tensions were high: After LIV’s launch, the PGA Tour [suspended](https://sherwoodmedia.com/snacks/newsletters/2n1tfbP2sL0dLHd6d2tSbw/articles/2GU5O3zeoGJuW6L7ddBK6e/) 17 players, including champs Phil Mickelson and Dustin Johnson, for competing in rival LIV’s first tournament. In return, LIV and a number of its players sued the PGA, arguing that the tour used monopoly power to prevent vendors, media companies, and others from working with them. Now they’re joining forces.

Match

__It's a new chapter for golf…__ The partnership could combine resources, sponsorships, and media rights. And it could benefit players and boost the sport’s popularity globally. But the controversy around using Saudi-backed $$ could also lead to tension between the newly created entity and players and fans.

Saudi-backed LIV Golf surprisingly joins forces with the PGA Tour, teeing up a new era

Dow Jones

S&P 500

Nasdaq

Bitcoin

Beyoncé’s “Renaissance” tour could rake in over $2B

🪙 Crypto’s double trouble

__New sheriff in town…__ Yesterday Elon Musk officially handed over his CEO of Twitter title to Linda Yaccarino, a former head of advertising at __[NBCUniversal](https://robinhood.com/us/en/stocks/CMCSA/)__, weeks ahead of schedule. Elon will serve as CTO with a focus on new products. Meanwhile, Yaccarino is taking the reins as Twitter struggles to win back advertisers.

- __In April,__ Musk said Twitter's finances were "roughly breaking even," even after more than half of its top 1K advertisers had pulled promos from the app.

- __Now:__ Twitter's US ad revenue reportedly dropped 59% between April 1 and May 1 compared to last year. Twitter estimated that sales would be down at least 56% each week this month, The New York Times [reported](https://www.nytimes.com/2023/06/05/technology/twitter-ad-sales-musk.html), citing sources.

__Content controversy…__ Twitter's content safety has been under scrutiny after reports that some moderators had been laid off. And last week two of Twitter's key content-safety officers [resigned](https://www.bloomberg.com/news/articles/2023-06-02/twitter-s-top-content-moderation-executive-ella-irwin-resigns). Twitter's ad team is apparently worried that big advertisers may be fleeing after a rise in hate speech and pornography, along with more “vice industry” ads (like: gambling and weed). During one week last month, four of Twitter’s top 10 US advertisers were online gambling or sports-betting companies. Now some lawmakers are warning that moderation-staff departures could put Twitter in violation of consumer-protection laws.

Twitter’s new CEO, Linda Yaccarino (Slaven Vlasic/Getty Images)

Boss

__Where you stick your billboard matters…__ Companies don’t want to shell out millions to have their ads surrounded by shady neighbors, even in the digital realm. While new leadership may help spark a reputation turnaround for Twitter, the recovery could take a while. Family-friendly brands like __[Apple](https://robinhood.com/us/en/stocks/AAPL/)__, __[Amazon](https://robinhood.com/us/en/stocks/AMZN/)__, and __[Disney](https://robinhood.com/us/en/stocks/DIS/)__ are said to be spending less on Twitter ads compared to last year. This year, Twitter is projected to generate $3B in revenue — down from $5B in 2021.

Twitter could be facing an ad-pocalypse, just as its new CEO takes the reins from Elon

__Happy Mealski…__ A year after __[McDonald’s](https://robinhood.com/us/en/stocks/MCD/)__ left Russia, its replacement, Vkusno & Tochka (translation: “Tasty & That's It”), is experiencing a [growth spurt](https://www.reuters.com/business/retail-consumer/russias-mcdonalds-heir-growing-quickly-long-haul-2023-06-05/?). After McD’s closed about 850 Russia locations, “Tasty & That’s It” took them over with a quick-and-dirty rebrand. The McD’s knockoff is on pace to have 900 spots by the end of this year, owner (and Siberian oil billionaire) Alexander Govor said. 

- __Not the Big Mick:__ So far, it said it’s been serving about 2M people/day and has sold 24M+ “Big Hit” burgers (its version of the Big Mac).

- __Overtime:__ Gover said Vkusno & Tochka is “here for the long haul,” but McD’s has the option to buy back its locations within 15 years. 

__Checking in…__ An estimated 1K companies have ceased operations in Russia since it invaded Ukraine in February 2022. Chains like __[Starbucks](https://robinhood.com/us/en/stocks/SBUX/)__, __[KFC](https://robinhood.com/us/en/stocks/YUM/)__, and __Pizza Hut__ sold off franchise locations, retailers including __[Adidas](https://robinhood.com/us/en/stocks/ADDYY/)__ and __[Nike](https://robinhood.com/us/en/stocks/NKE/)__ shuttered stores, and financial companies like __[Visa](https://robinhood.com/us/en/stocks/V/)__ halted transactions. A CNBC review of Dow companies suggested that, as of February, most had kept their promises to fully suspend or scale back their presence in Russia.

- __Workaround:__ __Apple__ and __[Coca-Cola](https://robinhood.com/us/en/stocks/KO/)__ are being sold in Russia through third-party countries, even though the companies stopped direct sales.

- __Still there:__ Brands that haven’t cut ties yet are gaining market share as competitors flee. Earlier this year Russia imposed an exit tax to slow the exodus.

BigHit

__Breakups are hard on both sides…__ McDonald’s had been in Russia for 32 years before bowing out, and in 2021 Russia and Ukraine made up 9% of its revenue. Russia’s economy hasn’t been as hard hit by the exodus as economists predicted, but some Russian consumers have complained about their new knock-off economy. Apparently, they’re not lovin’ it.

Russia’s McDonald’s dupe is growing after American staples pulled out of the country

__Waiting for the “one more thing”...__ During the opening of Apple’s annual developer conference, CEO Tim Cook and other execs shared updates like FaceTime video voicemails and a feature that lets you AirDrop your contact info (“NameDrop”). But the real highlight came at the end: Apple’s long-rumored [headset](https://www.cnbc.com/2023/06/05/apple-vision-pro-announced-its-first-major-product-since-2014.html) is no longer a rumor. 

- __Vision Pro:__ Apple’s first new major product since the Apple Watch in 2014. The VR and AR headset looks like ski goggles and is packed with powerful tech. Apple calls it “the most advanced personal electronics device ever.” Might explain the $3.5K starting price.

- __Your phone on your face:__ Familiar apps virtually overlay your IRL environment. You can navigate with your eyes, scroll with your fingers, and use your voice to dictate. You can control your level of immersion, and the screen will digitally display your eyes when you’re talking to someone (looks less creepy than [feared](https://sherwoodmedia.com/snacks/apple-could-resurrect-the-metaverse-with-a-headset-but-its-a-risky-and/)).

- __TL;DR:__ It removes the limitations of physical displays, bringing apps and windows into your space (instead of having three monitors).

__Movie-theater experience…__ in your economy middle seat. While existing headsets have been marketed largely for gaming, Apple didn’t focus heavily on gaming in its presentation. The pitch was heavy on entertainment value: you can expand streaming-app shows into movie-theater-size screens (and spatial audio gives a surround-sound effect). Apple claims resolution is crystal clear thanks to 23M pixels, saying that’s more than a 4K TV for each eye. __Disney__ boss Bob Iger even took the stage to share ways the House of Mouse will use VisionOS to bring its stories to life. Picture: 3-D Baby Yoda.

Wrapped

Snacks Wrapped: Apple rolls out its long-hyped mixed-reality headset

Nasdaq data link logo

🐦 Twitter’s new boss

__Party like it’s 2021…__ __[Apple](https://robinhood.com/us/en/stocks/AAPL/)__ [could](https://www.vox.com/technology/2023/5/31/23742675/apple-headset-goggles-vr-ar-mixed-extended-reality-peter-kafka-media-column) tap back into tech’s old New Big Thing: the metaverse. At its annual software conference this week Apple is expected to reveal long-awaited details of its mixed-reality (both VR and AR) headset. It would be the company’s first new major product line since 2014’s Apple Watch — and has been called Tim Cook’s riskiest move as CEO. 

- __The rumored $3K price tag__ is steep, about 6X the cost of __[Meta](https://robinhood.com/us/en/stocks/META/)__'s recently announced $500 Quest 3 and roughly 3X the price of Sony’s PSVR2 (including the PS5 needed to use it). Analysts expect fewer than 500K Apple headset shipments in year one.

- __Standout specs__ could include a live POV view-sharing feature called “copresence,” 4K displays, and screens on the front of lenses that digitally display users’ eyes (not creepy at all).

- __Keep in mind:__ Apple is rumored to have been developing the device for seven years, and it faces pressure to release it before its hardware becomes outdated.

__Virtual reality bites…__ There have been better moments to jump into the metaverse as companies reroute their virtual-world investments into the new buzzword: AI. __[Disney](https://robinhood.com/us/en/stocks/DIS/)__ shut down its metaverse strategy division this year, and __[Microsoft](https://robinhood.com/us/en/stocks/MSFT/)__ scaled back its team building AR goggles. Globally, VR/AR device shipments fell 12% to fewer than 10M last year, while Sony’s new headset badly missed its launch-window sales target of 2M units. Use of the tech has been mostly limited to gaming. And consumers have yet to embrace face gadgets (flops include __[Google](https://robinhood.com/us/en/stocks/GOOGL/)__ Glass, __[Snap](https://robinhood.com/us/en/stocks/SNAP/)__ Spectacles).

Tim cooking up a headset? (Justin Sullivan/Getty Images)

Shades

__It can pay to be late…__ to a party that hasn’t started. Apple has shown it can expand (and define) the markets that it enters (see: iPhone, Apple Watch). Its interconnected ecosystem of iProducts and famously sleek design could give it an edge, letting it set a standard and compete for market share. But it’s risky: Apple has apparently poured billions into its headset project, and failure would smudge its reputation (and dent profits).

Apple could resurrect the metaverse with a headset, but it’s a risky (and overdue) bet

__Not dryer-shrunk jeans…__ “Retail shrink” (the loss of inventory) is a [growing](https://www.cnbc.com/2023/05/31/what-are-retail-shrink-and-organized-retail-crime.html) problem in the US, and retailers are blaming rising theft. __Target__ recently said that organized retail crime would lead to $500M more in losses this year. __Dollar Tree__, __Home Depot__, __T.J. Maxx__, and others have cited shrink and theft as a hit to profits. FYI: shrink cost retailers $95B in 2021. In December, __Walmart__ said rising theft could even lead to store closures. Now retailers are bulking up precautions (think: more items behind glass).

__Brands get “Bud Lighted”...__ This Pride Month is off to a tumultuous start for several companies. Last month Bud Light faced backlash after transgender influencer Dylan Mulvaney posted about beer that the __AB InBev__-owned brand had sent her. Bud sales fell by as much as 40% in some Southern markets. __Target__ and __Kohl’s__ have been boycotted because of their Pride merch, and Target pulled some products over threats to employees. Lots of companies still plan to move forward with their Pride plans, including Coors Light’s Denver Pride Parade.

Zoom Out

Stories we’re watching

__The soup’s hot…__ __Campbell__'s is set to report Wednesday, and the 153-year-old canned-soup icon's been on a roll since shoppers started snapping up pandemic pantry staples. Before Covid, its sales were falling. In Q2, its sales grew 12% as consumers kept stocking its snacks like Goldfish and Milanos, despite price hikes (FYI: half of US consumers now eat 3+ snacks/day). But as Big Foodies like Campbell, __Pepsi__, and __Kraft__ get accused of profit-padding prices, snackers could scale back on brand names. 

__Never an outfit repeater…__ __Rent the Runway__ could drop ’Gram-worthy results this week as shoppers pay to rent their fits and keep things fresh. In April, RTR posted record revenue and subscribers after adding an extra item to its monthly subscription. Meanwhile, __Urban Outfitters__' Nuuly rental service more than doubled sales last year, and Urban thinks it could become a $1B biz. While RTR has yet to turn a profit, rentals are trending up: the value of the digi-fashion rental market is expected to 2X to nearly $3B by 2030.

Events

Coming up this week

- __[IOU](https://sherwoodmedia.com/snacks/snacks-unpacked-what-the-debt-deal-means-for-student-loans/):__ The US debt deal will end the pandemic pause on student-loan payments, after three years, restarting repayments (and interest accrual) for millions of borrowers in August. The average paused balance = $37K.

- __[Jet](https://sherwoodmedia.com/snacks/americas-top-ceos-flock-to-china-after-a-three-year-break-despite/):__ From __Tesla__'s Elon Musk to __JPMorgan__'s Jamie Dimon, America’s top CEOs are flocking back to China for the first time in years. US-China relations are at a low point, but big biz can’t detach.

- __[Sus](https://sherwoodmedia.com/snacks/deltas-carbon-neutrality-lawsuit-highlights-issues-with-companies-trying-to/):__ __Delta__ has been sued over its carbon-neutrality claims, with plaintiffs arguing that its carbon offsets are “junk.” There’s growing backlash against the unregulated offsets market, which Greenpeace has labeled a scam.

ICYMI

Last week's highlights

Nvidia’s trillion-dollar biz started as an idea at a Denny’s

🍎 Apple’s headset bet

__Servers get served…__ This week __[Amazon](https://robinhood.com/us/en/stocks/AMZN/)__ agreed to settle FTC charges that it illegally [stored](https://apnews.com/article/amazon-alexa-ring-doorbell-privacy-violations-ftc-971419109d7af10203d7ccfd28fcd0ad?ref=biztoc.com) children’s data (like voice recordings and locations) gathered from Alexa devices. The commission said that 30K Amazon employees had access to Alexa transcripts in 2018 and 2019, and that children’s data was used to train Alexa to better understand kids' lingo. That would be a violation of the Children's Online Privacy Protection Act, or COPPA. Amazon denied it broke the law. 

- __Pay up:__ If the settlement is approved, Amazon will pay a $25M fine and be required to delete any saved children’s data.

- __Separately:__ Amazon agreed to pay $5.8M in refunds to Ring customers to settle FTC allegations that employees had illegally viewed Ring footage. Amazon said it had fixed the issue before the commission looked into it.

__The kids aren’t alright…__ While $25M is a drop in the bucket for Amazon, it’s part of a bigger regulatory push to crack down on misuse of kids’ data by tech giants. Last year, “Fortnite” maker __Epic Games__ settled with the FTC for $520M, partly over claims of unlawfully collecting children’s info, and __[Google](https://robinhood.com/us/en/stocks/GOOGL/)__ agreed to pay a $170M penalty for YouTube channels harvesting kids’ data. 

- __Thinking ahead:__ Several recent bills aim to bar platforms from targeting ads to under-13-year-olds, mostly by setting and enforcing age restrictions.

- __Red flag:__ The bills seek to protect kids’ mental health, not just their data. But experts warn that age-verification processes could require more info to be shared with platforms.

Alexa pays up (Brandon Thibodeaux/Getty Images)

Grounded

__It’s supposed to be user data, not used data…__ Big Tech’s once unfettered access to sensitive info is being reined in. The EU and California have passed sweeping data-privacy laws that restrict digital platforms’ ability to gather data without users’ permission. Four more US states will start enforcing similar laws this year.

Amazon agrees to settle children’s-privacy charges for $25M as regulators sleuth out data misuse

__Heartbreak not feelin' so good…__ __[AMC](https://robinhood.com/us/en/stocks/AMC/)__ said yesterday that it would [close](https://variety.com/2023/digital/news/amc-theatres-on-demand-fandango-vudu-1235629533/) the curtain on its streaming service. Launched in 2019, AMC Theatres on Demand let users rent or buy movies to watch at home. The platform likely came in handy during the pandemic when theaters were closed, but now AMC says it's focused on "making movies better by enhancing the theatrical experience." 

__If you can’t join ’em…__ beat ’em. US movie chains are charging ahead to deck out the in-theater experience, since butts-in-seats still bring in more $$ than couchbound streams. In addition to dropping top dollar on new IMAX screens (cost: $1M, not including install), theaters are [splurging](https://www.nytimes.com/2023/05/31/business/movie-theater-upgrade-pandemic.html) on plush-grades like heated seats that move with on-screen action, fans who blast viewers during chase scenes, and on-call dinner servers. In February, AMC even rolled out tiered seat pricing (picture: paying extra for center row). The premiumization push seems to be paying off: 

- __Seat-side sushi:__ Theaters are charging up to 65% more for tickets in fancified theaters, easily topping $20 apiece.

- __More from less:__ Upgraded screens are expected to bring in 17% of theaters’ revenue this year, up from 9% in 2019.

- __Some pain, some gain:__ AMC’s losses are shrinking ($178M last quarter versus $266M a year earlier).

Credits

__Experiences command a premium…__ After the streaming surge and lockdowns knocked theaters on their heels, chains are trying a luxury-driven comeback. The US box office hit $7.5B last year (up from $2.3B in 2020), and could top $9B this year. Meanwhile, studios like __[Warner Bros.](https://robinhood.com/us/en/stocks/WBD/)__ and __[Disney](https://robinhood.com/us/en/stocks/DIS/)__ have cooled on plans to release films straight to streaming as cineplexes draw more customers off the couch and into heated, reclining theater thrones.

AMC shutters its streaming service as theaters push blockbuster-size plush-grades

🌶️ __Spicy…__ The DOJ said it might [drop](https://www.wsj.com/articles/sam-bankman-fried-could-have-some-charges-dropped-if-bahamas-objects-f3c22fce) some of the charges against Sam Bankman-Fried if the Bahamian gov’t says they violate the terms of his extradition to the US. The __FTX__ founder is awaiting trial over his role in the exchange’s implosion.

 📸 __Flashy…__ __[Charles Schwab](https://robinhood.com/us/en/stocks/SCHW/)__ and __[Nomura](https://robinhood.com/us/en/stocks/NMR/)__ are among the Wall Street titans backing or [building](https://www.ft.com/content/870bef48-9bec-4408-8601-d97c5603a76b) their own crypto companies. In a post-FTX world, finance institutions are hoping that customers will trust them more than they do crypto-native firms. 

🪙 __Coins…__ __Tether__ (aka: USDT) now [has](https://www.barrons.com/articles/crypto-stablecoin-tether-record-6a1f3766) a record $83B+ market cap. Tether’s share of the stablecoin market grew this year after regulators ordered its competitor to stop minting BUSD (a __Binance__-branded stablecoin).

SBF'D

The Crypto Catch-Up…

The median age of the world’s billionaires is 67

🚸 Amazon’s privacy fines

__Back in Beijing…__ Elon Musk got a hero’s welcome this week when he [returned](https://www.reuters.com/business/elon-musk-visits-chinas-commerce-ministry-2023-05-31/) to China for the first time in three years. During a high-stakes visit to the country that houses __[Tesla](https://robinhood.com/stocks/TSLA/)__'s biggest production hub, the chief exec was greeted with flattery and a 16-course feast. Musk met with China’s foreign minister on Tuesday, and Tesla stock spiked following reports that he’s willing to expand business in China. 

- __#Twinning?__ China’s foreign ministry quoted Musk as saying that the US and China are “conjoined twins” and that he’s against a decoupling of the world’s largest economies. 

__Fire up the private jets…__ Elon isn’t the only biz leader on the move. US-China relations are at their worst point in decades, but CEOs of American companies are returning to China now that it’s reopened its borders. This week __[JPMorgan Chase](https://robinhood.com/stocks/JPM/)__'s Jamie Dimon and __[Starbucks](https://robinhood.com/stocks/SBUX/)__' Laxman Narasimhan also flew over. In March, __[Apple](https://robinhood.com/stocks/AAPL/)__'s Tim Cook paid a visit to the country where most Apple products are manufactured. 

- __Expand:__ According to Chinese outlets, Narasimhan said he hopes China will become Starbucks’ largest market, and plans to significantly grow locations there.

- __Engage:__ Dimon called for “real engagement” between the US and China and warned against trying to cut ties between the two economic powers.

Flattered and feasted (Xinhua/Ding Ting/Getty Images)

__If you can’t detach, attach…__ From spying to tech wars, US-China relations have soured. But big corporations can’t detach themselves from the manufacturing power and massive consumer base of the world’s second-largest economy. And China, whose post-lockdown economic rebound has been [underwhelming](https://sherwoodmedia.com/snacks/newsletters/BAiwG6UN0VIjo3BcvhYLb/articles/4XKAFkPoc1p0vn5uswQeme/), needs and welcomes US investment.

America’s top CEOs flock to China after a three-year break, despite geopolitical tensions

__Crude news…__ Starting this week, global oil prices will [start](https://www.wsj.com/articles/move-over-scotland-u-s-oil-enters-worlds-most-important-benchmark-d7602b5f?mod=markets_lead_pos3) taking cues from the US. The price of Brent crude oil, which is primarily sourced in the North Sea between Scotland and Norway, has long been used as a benchmark for calculating global oil and natural-gas prices. By some estimates, Brent is used to set the price of two-thirds of all crude oil sold globally. But as Brent oil fields dry up, exchanges are looking stateside to set the new pricing standard.

- __Full tank:__ West Texas Intermediate crude oil is used as a benchmark for American oil. But starting today, WTI crude will become the first non-European oil to be used in the Brent pricing benchmark.

- __Full steam:__ In March, the US shipped a record # of barrels of WTI crude to China and Europe, which has been more reliant on American oil since Russia’s war. 

__Don’t mess with Texas…__ America’s rise up the energy ladder marks a major turning point from the early 2000s when it *imported* up to 60% of all its oil. Today, that number is down to about 40%. As shale production boomed in Texas' Permian Basin over the past decade, US dependence on foreign oil dipped. Meanwhile, supply began to pile up with top producers Saudi Arabia and Russia, who’ve recently curbed production to keep prices higher.

Slick

__The energy is shifting…__ With US oil holding greater weight in global energy prices, the market could become less vulnerable to demand shifts or manipulation. Some analysts say factoring cheaper American barrels into Brent could help lower oil prices overseas and boost biz for US exporters. Still, the US shale boom is expected to slow this decade as lucrative wells get tapped out.

US oil earns a spot in the famous Brent benchmark, securing its superpower status

__Student-loan payments will resume…__ for up to 45M borrowers if the bipartisan debt-ceiling deal is passed into law (which President Biden expects to happen). A provision in the deal would [end](https://www.nytimes.com/2023/05/30/us/politics/student-loan-payments-biden-debt.html) the pandemic pause on payments after eight extensions, three years, and two presidents; prohibit future pause extensions without an OK from Congress; and restart repayments (and interest accrual) at the end of August. 

__What it means…__ 

- __For borrowers:__ Millions will find themselves with a different loan servicer after federal contracts changed during the pandemic. FYI: several servicers have cut customer-service hours, which could cause headaches.

- __For student-debt cancellation:__ Biden’s debt cancellation isn’t affected by the proposed deal. That remains in the hands of the Supreme Court, which is expected to issue a ruling in the coming weeks.

- __For the White House:__ The deal is in line with the Biden admin’s timeline to end the pause. But it would block the executive branch’s ability to *extend* the pause if SCOTUS strikes down the debt-cancellation plan.

__By the numbers:__
- __$37K:__ the average paused student-loan balance

- __$200-$300:__ the typical monthly loan payment prepandemic

- __38%:__ share of borrowers with at least one loan in deferment prepandemic

- __$5B:__ the monthly cost of the pause to the US gov’t

Unpacked

Snacks Unpacked: What the debt deal means for student loans

HBO said that 2.9M people watched the "Succession" finale on Sunday

🇨🇳 Elon’s China trip

__Offput by offsets…__ __[Delta](https://robinhood.com/stocks/DAL/)__, which has called itself “the world’s first carbon-neutral airline,” is facing a class-action lawsuit over that claim. Plaintiffs say it’s “false and misleading,” [arguing](https://www.theguardian.com/environment/2023/may/30/delta-air-lines-lawsuit-carbon-neutrality-aoe) that the airline’s carbon offsets — credits that can be bought by companies to counteract their emissions — are “junk” (i.e.: not actually counteracting the climate crisis). The case adds to growing backlash against the carbon-offset market, which Greenpeace has labeled a greenwashing scam.

- __Sus-tainability:__ Evian parent __Danone__ is being sued over its carbon-neutrality claims, which also rely on offsets. Last week, research from a nonprofit watchdog said that 93% of offsets bought by __[Chevron](https://robinhood.com/stocks/CVX/)__ between 2020 and 2022 were “worthless.”

- __Certified:__ An investigation this year said that 90% of rainforest offsets approved by __[Verra](https://robinhood.com/stocks/VRRM/)__ (the world’s leading carbon-credit certifier) and used by major companies like __[Disney](https://robinhood.com/stocks/DIS/)__ and __[Shell](https://robinhood.com/stocks/SHEL/)__ were worthless — and could actually *increase* global heating. Verra said it plans to phase out its program by 2025.

__Buying the forest for the trees…__ The offsets market jumped from $520M in 2020 to $2B in 2021, and could reach $40B by 2030. Companies appealing to environmentally conscious consumers and investors are seeking quick ways to reduce their footprints. But not every offset is equal: 

- __Credits tied to renewable-energy__ projects or forest protection are cheaper, but experts say they doubt their effectiveness at reducing CO2 levels (picture: buying a forest that already exists).

- __More effective offsets,__ like investments in direct carbon-capture technology (sucking carbon out of the air), can cost thousands of dollars more per credit.

Green landing? (Nicolas Economou/Getty Images)

Green-ish

__It ain’t easy being green…__ The offsets market is unregulated. Even as some low-quality offsets are rejected by certifiers, new certification boards are popping up to approve junkier credits. But as ESG interest grows, calls for oversight are mounting: last fall, a group of Democratic senators asked a federal regulator to crack down on the market and develop standards for climate credits.

Delta’s carbon-neutrality lawsuit highlights issues with companies trying to buy their way to net zero

__Ghosted by Jake…__ Over the weekend __State Farm__ [stopped](https://www.reuters.com/world/us/state-farm-stops-new-home-insurance-sales-california-wildfire-risks-grow-2023-05-30/) taking applications for new home insurance policies in California, saying its wildfires and rebuilding costs are hurting its bottom line. The “like a good neighbor” company was the largest home-insurance provider in the US and CA as of 2021, with more than 8% of the state’s market share. 

- __More destructive:__ The Golden State’s wildfire season has burned through 2M+ acres on average each year for the past half decade. The deadly Camp Fire in 2018 destroyed 11K homes, displaced 50K residents, and resulted in staggering losses for insurers. 

__Frightful weather…__ Extreme weather is squeezing the home-insurance biz from coast to coast. In response to events like fires and floods, insurers raise premiums and up the eligibility requirements for residents to get a policy, especially if they live in high-risk areas. In CA, regulators barred insurers from canceling or refusing to renew policies in some ZIP codes.

- __Last resort:__ Last year __[American International Group](https://robinhood.com/stocks/AIG/)__ (AIG) also left CA, and in hurricane-prone Louisiana 20+ insurers have gone bankrupt or left the state over the past two years, leaving thousands dependent on state resources.

- __Insurance crisis:__ 9 in 10 US homeowners saw their premiums rise from 2021 to 2022, insurance marketplace Policygenius reported. Premiums in Louisiana were 46% higher than the national average as of January.

Unsure

__The problem could get worse…__ Structural damage from severe weather totaled $145B in 2021, and the climate crisis is expected to make weather catastrophes even more frequent. Ditching areas where insurance is most critical may help corporate profits, but it could leave more people uninsured or dependent on state-run plans made for those who can’t get traditional insurance.

State Farm ditches new home insurance in California after fires became costly catastrophes

The college-enrollment rate for recent US high-school grads fell to 62% from 66% prepandemic

🌳 Sustainability side-eye

__More heated than the “Succession” finale…__ the [greedflation](https://www.wsj.com/articles/greedflation-is-realand-probably-good-for-the-economy-6c475b8e) debate. With inflation still stubbornly high, some are pointing fingers at corporate profits. The idea, also dubbed profit-led inflation or “[excuseflation](https://www.bloomberg.com/news/articles/2023-03-09/how-excuseflation-is-keeping-prices-and-corporate-profits-high),” is that some corporations hike prices beyond what's needed to cover rising costs — leaning on broad inflation and black-swan events (like: pandemic, war) as an excuse. In a recent [survey](https://dashboard.askattest.com/survey/K9CBNJNR7QC2VG/results/overview?date=1676470808278) of 2K US consumers, over half said they believe greedflation is happening “a lot.” They’re not alone. 

- __Makin’ bank:__ European Central Bank economists said that businesses have been padding profits, which they argued was a bigger inflation driver than rising wages in the second half of last year.

- __Corporate profit margins__ hit a 70-year high last year as consumers stomached higher prices, and this year companies continued [flexing](https://sherwoodmedia.com/snacks/newsletters/48bbCfnWRsuLXxDs0G1SaW/articles/2Eq0FgXv6pjFfOOzgnM1Xp/) their “pricing power.”

__Not everyone's on team #greedflation…__ While some margin-padding may be happening, many economists say there’s little evidence that corporate profits are significant contributors to inflation. Last week, former Fed Chair Ben Bernanke and ex-IMF chief economist Olivier Blanchard [released](https://www.wsj.com/articles/why-inflation-erupted-two-top-economists-have-the-answer-6919042c) a study that pointed to Covid supply shocks (and the trillions in gov’t stimulus that followed) as the main causes of US pandemic-era inflation. Picture: fewer goods available + more $$ to buy them with. Last year, Treasury Secretary Yellen rejected the idea that corporate greed is driving inflation, pointing to good-old supply and demand as the main culprit.

A scrambled debate (Justin Sullivan/Getty Images)

Spicy

__The “greedflation” debate is a symptom…__ of unusually resilient demand. US consumer spending jumped last month and inflation accelerated. Despite its aggressive interest-rate hikes, the Fed hasn’t been able to cool demand/inflation/the labor market nearly as fast as hoped. Without continued spending, prices wouldn’t have been able to stay so elevated. Resilient demand could be a result of extraordinary stimulus measures and years of near-zero rates that helped lead to historically low unemployment and rising wages. But some retailers are starting to see that consumers are tightening their budgets.

Corporate price hikes get the side-eye as #greedflation trends, stoking the inflate debate

__Not-so-fancy feast…__ Americans are (finally) starting to spend less on their furry friends after years of explosive growth in the $124B US pet market. __Chewy__ thrived during the pandemic as 1 in 5 Americans took in furry companions and showered them with goodies. But Chewy’s sales growth has slowed recently as the puppy-palooza wanes. Last week, rival __Petco__ dropped disappointing results as owners ditched pricey kennels for smaller treats. Analysts think the trend could keep chomping on Chewy when it reports Wednesday.

__Little brown bag…__ __Macy’s__, which reports Thursday, predicted lower sales this year as consumers cut back on discretionary splurges. But the mall staple’s non-namesake, higher-end brands have been a bright spot: Blue Mercury, Bloomingdale’s, and mini stores called Market by Macy’s and Bloomie’s (s’cute) have outperformed the flagship. __Kohl’s__ got a boost from its in-store Sephoras last quarter, and __Urban Outfitters__ from Anthropologie and Free People. __Abercrombie__'s stellar earnings last week could bode well for Macy’s smaller-format foray.

__Shock me like an electric wheel…__ California is [reportedly](https://www.reuters.com/business/autos-transportation/california-seeks-us-approval-end-gas-only-new-vehicle-sales-by-2035-2023-05-23/) urging the EPA to approve a proposal that could supercharge EV adoption. In August, America’s most populous state approved a plan to ban new sales of gas-only vehicles by 2035 (sales would have to be electric or plug-in hybrid). But CA still needs the Biden admin’s approval to move forward, and the White House hasn’t endorsed setting a hard date to phase out gas vehicle sales. Still, CA is leading the EV charge: last year the state accounted for 40% of zero-emission vehicles sold in the US. 

__Esports on hard mode…__ Esports has [struggled](https://www.nytimes.com/2023/05/20/technology/e-sports-revenue-video-gaming.html) to turn hype into profits as it copes with budget-tightening from sponsors (especially crypto ones) and waning lockdown-era interest in gaming. Last week the __Madison Square Garden Co.__ offloaded its team, and esports org __FaZe Clan__ said it’s laying off 40% of staff. The team Evil Geniuses is reportedly ditching high-paid players. But it could be hard to cut costs since companies running the tourneys (like __Tencent__-owned __Riot Games__) are charging lofty entry fees (even $10M+).

- __[WFH](https://sherwoodmedia.com/snacks/newsletters/dVp7geMbUIPwB931MAQ4s/articles/7BeN3vWpvBNGUjqylY97IJ/):__ __Hilton__ and __Marriott__ announced extended-stay brands to tap into hybrid workers’ flexible travel style. Extended-stay hotels had 75% occupancy last year, compared to 63% for the overall market.

- __[Smize](https://sherwoodmedia.com/snacks/newsletters/6Dn5NOVENzBNXXKh6CVwlL/articles/5otNlLPhOHFGvtEhVwJGgR/):__ Budget makeup brand __E.l.f__ stunned investors with 80% quarterly sales growth. E.l.f.’s no-frills products have gained buzz on social media, helping it become Gen Z’s #1 beauty brand.

- __[Chipper](https://sherwoodmedia.com/snacks/newsletters/6Dn5NOVENzBNXXKh6CVwlL/articles/3azSiyhkUyVo8TAf9d8Khw/):__ __Nvidia__ soared near a trillion-dollar valuation as it positions its supercomputing chips as shovels in the AI gold rush. But quarterly revenue was down 13% as demand for its gaming chips sagged.

The DNA of any two humans is 99.6% identical

💰 The “greedflation” debate

__Hype machine (learning)…__ __Nvidia__ is riding the artificial-intelligence wave near a trillion-dollar valuation. The chipmaker’s stock surged 25% yesterday after it [reported](https://www.cnn.com/2023/05/25/tech/nvidia-earnings-ai/index.html) earnings, catapulting it to the #5 spot of highest-valued US companies (behind #4 __[Amazon](https://robinhood.com/stocks/AMZN/)__). Nvidia’s revenue was down 13% from last year as demand for its gaming chips sagged. But sales grew 19% quarter over quarter thanks to demand for its data-center chips for cloud and AI. 

- __What investors *really* liked:__ Nvidia expects revenue to be 50% higher this quarter than last as the need for AI chips soars.

- __Rising tide:__ Techy boats lifted on Nvidia’s news as investors piled into other chip stocks like __[AMD](https://robinhood.com/stocks/AMD/)__, __TSMC__, and __[ASML](https://robinhood.com/stocks/ASML/)__. 

__Selling shovels to an AI gold rush…__ and Nvidia’s set up shop in a boomtown. Nvidia’s A100 chip was already the gold standard used in the large language models that underpin AI tools (thousands of A100s were used to train __OpenAI__'s ChatGPT). But last month a hot new bombshell entered the server: the H100 chip, which is apparently faster and stronger than its predecessor. Orders are flooding in for the supercomputing chip from companies like __[Dell](https://robinhood.com/stocks/DELL/)__ and __[Google](https://robinhood.com/stocks/GOOGL/)__. 

- __Ahead of the pack:__ Unlike rivals __[Intel](https://robinhood.com/stocks/INTC/)__ and __AMD__, Nvidia has specialized in GPUs (graphics chips), positioning it well for the latest rush.

FYI: It’s pronounced “En-vidia” (Jakub Porzycki/Getty Images)

Chipper

__Change your shovels based on the gold…__ Nvidia is known for its graphics cards for gaming consoles like __[Nintendo](https://robinhood.com/stocks/NTDOY/)__'s Switch. Gaming sales made up nearly a third of its revenue last quarter, even after dropping 38% from last year. As the pandemic-fueled gaming boom fades and controllers start to gather real dust (not just Cheeto dust), Nvidia is shifting its focus to the AI gold rush to drive growth.

Nvidia nears a $1T market cap as it positions its chips as fuel for the AI race

__Eyes, lips, profits…__ __[E.l.f.](https://robinhood.com/stocks/ELF/)__ shares jumped 20% yesterday after the budget makeup brand [posted](https://www.barrons.com/articles/elf-beauty-stock-price-earnings-d3ffc145) head-turning results. Its sales grew nearly 80% last quarter, marking 17 straight quarters of growth, and flying past Wall Street’s forecasts. E.l.f rose to drugstore fame with its variety of affordable makeup (picture: $7 glosses, $10 primer). Now it’s ranked the #4 largest mass cosmetics brands in the US, topping OG icons like __Revlon__ and __CoverGirl__. 

- __Mixed foundation:__ Last month rival __[Estée Lauder](https://robinhood.com/stocks/EL/)__ disappointed as makeup and skincare sales fell. __L’Oreal__ saw growth thanks to a rebound in the US and Europe.

- __Glowy outlook:__ E.l.f’s CEO said its “winning formula” of value helped it issue what could be its strongest growth forecast ever. 

__Coffee gloss and glitter bombs…__ E.l.f. has long been a staple of the beauty industry’s dupe-economy, and gained even more fame thanks to buzzy collabs and social-media reviews (#GRWM). FYI: E.l.f has been tagged on __TikTok__ nearly *7B*+ times. Skincare took center stage during lockdowns, but after folks started going out again, “Euphoria”-style color cosmetics rebounded. Meanwhile, more “fresh face”-focused brands (cough, __Glossier__) are losing their shine. For the first time since 2020, teenagers are spending more on makeup than skincare.

Smize

__It’s the inside that counts…__ E.l.f.’s no-frills packaging is the opposite of flashier (but pricier) competitors. Instead, E.l.f. has leaned into quirky collabs with brands like __[Chipotle](https://robinhood.com/stocks/CMG/)__ and __Dunkin’__ and word-of-mouth from TikTok beauty gurus. Its affordable prices allow teens to experiment with makeup trends without breaking the bank. Now E.l.f has become Gen Z’s #1 beauty brand, topping cult faves like Selena Gomez’s __Rare Beauty__ and Rihanna’s __Fenty Beauty__.

E.l.f. reports stunning earnings as Gen Z goes all in on budget beauty trends

🤹‍♀️ __Quirky…__ Shaq got [served](https://www.wsj.com/articles/shaq-served-again-in-ftx-lawsuitat-former-ftx-arena-a2ccbfd8). The NBA Hall of Famer was delivered a summons related to the __FTX__ crypto exchange, for which he was a paid spokesman. He was reportedly served in the formerly named FTX Arena.

🤔 __Sus…__ Reuters sources said that __Binance__ [commingled](https://www.reuters.com/investigates/special-report/crypto-binance-money/) billions of dollars in customer funds with its own revenue. The world's largest crypto exchange denied the report. Former regulators said mixing customer and exchange cash puts clients' $$ at risk.

🤖 __Techy…__ The maker of the __Ledger__ crypto hardware wallet [paused](https://decrypt.co/142105/ledger-recover-rollout-delayed-humbling-ceo-experience) the rollout of a key recovery feature after customers pushed back over worries that "Ledger Recover" could put their secret seed phrases at risk.

DUNK

Miami’s bitcoin conference attendance dropped more than half from last year

🤖 Nvidia’s AI gold rush

__Something’s in the air…__ and it’s not Fierce cologne. __[Abercrombie & Fitch](https://robinhood.com/stocks/ANF/)__ shares soared 31% yesterday after the mall icon unloaded decade-high Q1 sales, a [surprise profit](https://www.cnbc.com/2023/05/24/abercrombie-fitch-anf-q1-earnings-report-2023.html), and a boosted annual forecast. A&F was a middle-school must-have in the early-2000s (moose shirts sold by shirtless models were a status symbol). But in the 2010s its popularity fell lower than a Y2K waistline. Then came a turnaround:

- __New look:__ A&F stopped aggressively spritzing stores and scrapped the moose logo in 2017 when Fran Horowitz joined as its new CEO, leading an “America’s Next Top Model”-level makeover with Aaron Levine, who revamped its clothing design.

- __Inclusivity:__ After notoriously refusing to carry sizes above L in the ’00s, the retailer added extended sizing and showed it off in a 2020 ad campaign featuring plus-size models, and has leaned into inclusive marketing. 

__Super-high rise…__ A&F’s brand refresh started in the late 2010s but only recently started paying off after serious legwork by top execs. It’s avoided the mall graveyard, despite a critical Netflix doc last year titled “White Hot: The Rise & Fall of Abercrombie & Fitch.” The comeback was driven by social media: 

- __For You:__ A&F hired a Gen Z consultancy to expand its TikTok presence and collab’d with TikTok stars Charli and Dixie D’Amelio to launch a sub-brand called Social Tourist.

- __#AbercrombieJeans:__ Out of its portfolio of brands (including Hollister and Gilly Hicks), it was Abercrombie’s namesake denim that went viral last year.

That’s so Fitch (Michael M. Santiago/Getty Images)

Y2Comeback

__A&F found its spending sweet spot…__ While retailers like __[Walmart](https://robinhood.com/stocks/WMT/)__ and __[Target](https://robinhood.com/stocks/TGT/)__ recently said consumers were tightening discretionary budgets, fashion retailers like A&F that hit a mid-level price point (somewhere between Shein and Chanel) are seeing success. This week, __[Urban Outfitters](https://robinhood.com/stocks/URBN/)__ reported double-digit sales growth for its Free People and Anthropologie brands, and __[American Eagle](https://robinhood.com/stocks/AEO/)__ delivered record Q1 revenue thanks to Aerie.

Abercrombie & Fitch stock pops after a years-in-the-making comeback yields results

__Walking the talk…__ Employees at __[Amazon](https://robinhood.com/stocks/AMZN/)__'s HQ in Seattle say they’re going to [walk off](https://www.washingtonpost.com/technology/2023/05/22/tech-layoffs-amazon-walk-out-meta/) the job next week to protest the company’s return to office (RTO) mandate, layoffs, and a perceived lack of commitment to climate pledges. Organizers are looking for at least 1K workers to participate. 

- __Primed:__ After Amazon announced an RTO mandate in February, nearly 30K employees (about 10% of its corporate workforce) signed a petition opposing the hybrid plan. But 700 staffers joined a *pro*-RTO __Slack__ group.

- __Returned:__ Days after announcing another wave of 9K layoffs in March (for a total of 27K since last year), Amazon CEO Andy Jassy rejected the employee petition and doubled down on his three day/week in-office rule (which started this month), despite some offices apparently not being ready for employees until fall.

__Big tech’s morale-gorithm appears to be broken…__ Tech employee morale is said to be plunging as mass layoffs, hiring freezes, and stalled projects have left workers anxious. Even before __[Meta](https://robinhood.com/stocks/META/)__'s 21K layoffs, only 31% of employees were confident in its leaders. Yesterday, Meta wrapped up its latest round of job cuts, which employees said had caused a standstill. __[Microsoft](https://robinhood.com/stocks/MSFT/)__ execs fielded employee questions about “rock bottom” morale at an all-hands this week, while vibes at __[Google](https://robinhood.com/stocks/GOOGL/)__ have also reportedly tanked following layoffs and perk cuts.

RT-No

__RTO may be retreating…__ The number of companies requiring workers in the office full time has fallen to 42% from 49% three months ago. Last year a Gallup poll found that worker engagement had declined the most among workers with remote-friendly jobs who were working from the office. While employers want to get staffers back at office desks to boost collaboration, they risk crushing morale.

Amazon workers plan RTO walkout as tech’s corporate morale nosedives

The world’s priciest ice cream, made with rare white truffles, is sold in Japan for $6K/scoop

👖 Abercrombie’s super-high rise

__Putting down roots…__ The US’s two largest hotel chains, __[Marriott](https://robinhood.com/stocks/MAR/)__ and __[Hilton](https://robinhood.com/stocks/HLT/)__, are [launching](https://www.wsj.com/articles/hilton-marriott-square-off-in-extended-stay-battle-c4b98bc2?mod=pls_whats_news_us_business_f) extended-stay brands to tap into the growing market for longer bookings in apartment-style units. Extended-stay travel (20+ nights) has boomed since the remote-work shift gave employees greater flexibility. Now the hospitality industry is betting it’ll be a long-term moneymaker through economic ups and downs. 

- __Forget the minibar:__ Hilton’s extended-stay rooms will feature kitchens with a full fridge, dishwasher, and cooktop. Lobbies will have markets for snacks and toiletries, and there’ll be shared laundry facilities.

- __Competing with rent:__ Marriott plans to price extended-stay rooms at $80/night, while Hilton looks to charge $100. The average US hotel room rate last year = $150/night.

- __Low vacancy:__ Extended-stay hotels had a 75% occupancy rate last year, up from 2021 and well above the overall hotel-occupancy rate of 63%. Last quarter, nearly a fifth of __[Airbnb](https://robinhood.com/stocks/ABNB/)__'s nights booked were for long-term stays. 

__Status: work from beach…__ Extended stays are no longer just for those relocating for a job or workers on temp assignments. As millions have disconnected from the 9-to-5 office life, blended business-leisure travel (#bleisure) has allowed for longer trips. Biggies like __[Hyatt](https://robinhood.com/stocks/H/)__, __[Wyndham](https://robinhood.com/stocks/WH/)__, and __Best Western__ parent __BWH__ plan to give guests the local lifestyle with extended-stay chains. They’re hoping to attract restless WFHers fed up with the excessive cleaning fees, long chore lists, and rising rates on Airbnb.

The laundry-on-vacation goldrush (Hilton)

Vacay

__You can’t rely on vacay mode…__ While the travel industry is enjoying huge summer demand, hotels are bracing for a potential downturn. Doubling down on the affordable extended-stay model can help them recession-proof. Plus, less guest turnover means lower staffing costs and higher margins from not changing sheets every day.

Hilton and Marriott bet big on extended stays as hospitality unpacks for the long haul

__It’s not a cat filter on the Zoom call…__ it’s an actual cat. __[Walmart](https://robinhood.com/stocks/WMT/)__ is [partnering](https://www.cnbc.com/2023/05/22/walmart-partners-with-pawp-to-offer-free-pet-telehealth.html) with pet-telehealth provider __Pawp__ to offer veterinarian video calls as a perk for Walmart+ members. Subscribers to Walmart’s Amazon Prime competitor can now get unlimited free virtual vet visits for a year (and Fluffy McFluffhead can meow his symptoms into the mic). 

- __Not a streaming service:__ Launched in 2020, Walmart+ is the retailer’s cheaper Prime rival (cost: $13/month or $98/year).

- __Perks in the cart:__ The creatively named membership offers benefits like unlimited free same-day grocery delivery and fuel savings at 14K+ spots. 

__Grass-fed organic lamb for Fido…__ canned peas for Francis. While a lot of Americans have been cutting back on personal splurges, they’re not skimping on their fur babies. Adding pet perks to boost subs is a timely move by Walmart as spending in the category explodes: the US pet market, already worth $124B, is expected to balloon to $200B by 2030. Pet owners are spending on everything from premium treats to [$250 salon](https://www.wsj.com/articles/doodle-dogs-grooming-prices-salons-61da7936) groomings. Healthcare services, including vets and insurance, are driving the spending surge. Last month, Washington state rolled out a law to regulate pet insurance.

Paws

__A niche can help you go mainstream…__ With an estimated 11M+ subs as of last year, Walmart+ is still far behind Prime (~200M members). But Walmart could inch closer to Amazon’s lead by leaning on its key strengths (like discount groceries) and unique perks (like pet telehealth). In a recent earnings call, Walmart said that members spend more than non-members. Boosting subscription revenue could become more important as spending on discretionary goodies sags.

Walmart introduces pet-telehealth perks to boost subscriptions for its Prime rival

💵 *When you pay in cash so that it doesn't show up on your credit-card bill…*

Like an anonymous Venmo, crypto mixers can offer privacy on public blockchains by hiding a coin’s transaction history. Broadly speaking, these services break the connective tissue between crypto put in and crypto pulled out, allowing folks to move digital currency more anonymously. Last year mixers processed nearly $8B in cryptocurrency.

Tornado Cash, a mixer sanctioned by the US government last year, was [hijacked](https://www.bloomberg.com/news/articles/2023-05-21/sanctioned-crypto-mixer-tornado-cash-hijacked-by-hackers). The attacker swapped stolen tokens for 372 __[ethereum](https://robinhood.com/crypto/ETH/)__ (worth about $688K), before using the Tornado Cash smart contract itself to mix the loot.

DEFI(NE)

Heard on the Block: "crypto mixer"

It costs retailers an average of $27 to process $100 in returned merchandise