__Prime time…__ for a raise. __[Amazon](https://robinhood.com/stocks/AMZN/)__ will [bump](https://www.cnbc.com/2022/09/28/amazon-hikes-pay-for-warehouse-and-delivery-workers.html) average starting pay for delivery and warehouse workers from $18/hour to more than $19/hour. The Zon says the hike will cost nearly $1B over the next year. Though small, the boost could help attract workers ahead of the holidays (which, FYI, are expected to be less frantic than last year as demand softens). It’s not the only one:

- __[Target](https://robinhood.com/stocks/TGT/):__ In February, Target announced it would set a new starting range of $15/hour to $24/hour. It’s trying to hire 100K workers this holiday season (less than last year).
- __[Walmart](https://robinhood.com/stocks/WMT/):__ Last September, Walmart lifted its minimum store wage from $11/hour to $12/hour. This season, Walmart wants to hire just 40K workers (vs. *150K* last year).
- __In context:__ Real hourly earnings (adjusted for inflation) have fallen 2.8%, and an estimated 70% of surveyed workers are looking for extra gigs to afford high prices. 

__Pay to keep unions away…__ Tensions have been rising between Amazon and its front-line workers. In April, Amazon’s Staten Island warehouse became its first US facility to unionize. Amazon tried to reverse the vote and has actively fought union organization efforts, but pumping pay could be a more subtle approach.

Preparing the pay package (Johannes Eisele/Getty Images)

Waged

__America’s retailers set the standard…__ of America’s wages. After the federal government, Walmart is the country's largest employer with 2.3M global workers, followed by Amazon with 1.5M. With a federal minimum wage of just $7.25, retail behemoths boast major influence over America’s paychecks. A boost from Amazon could pressure other employers to keep up. But this pay hike won't come close to matching inflation, with prices up [8.3%](https://www.usinflationcalculator.com/inflation/current-inflation-rates/#:~:text=The%20annual%20inflation%20rate%20for,ET.) in August from a year earlier.

Amazon boosts worker pay ahead of the holidays, but it’s not enough to beat the inflation Grinch

__Shifting gears…__ __[Peloton](https://robinhood.com/stocks/PTON/)__ is taking a new strategy for a spin: yesterday the home fitness biz [said](https://www.cnbc.com/2022/09/29/peloton-to-sell-bikes-treads-at-dicks-sporting-goods-stores-.html) it’ll sell its products at __[Dick’s Sporting Goods](https://robinhood.com/stocks/DKS/)__, its first brick-and-mortar partnership. Peloton aims to have its $1.4K Bikes and $3.5K Treads in 100+ Dick’s stores in time for the holidays. It’s in line with Peloton’s strategy to do less by itself:

- __Outsource sales:__ Originally, Peloton only sold products directly to customers. But after sales slumped as gyms reopened, Peloton began selling on Amazon in August. 
- __Outsource production:__ In July, Peloton [said](https://snacks.robinhood.com/newsletters/iw2tCwjTCvnTryUaqDDzb/articles/3CSchWJYP4rfiMdi0AGrzJ/) it would stop making its own hardware to save $$ on pricey US production. 
- __Cut costs:__ Peloton cut 800 jobs in August in an effort to slash expenses as its quarterly loss nearly quadrupled to $1.2B
- __Weird timing:__ Despite plunging sales, Peloton unveiled a $3.2K rowing machine this month.

__Mirror, mirror (off the wall)…__ Peloton isn’t the only fit-tech company suffering as pandemic-era home sweat sessions decline: fitness mirror company __Tonal__ laid off a third of its staff in July to ease its losses. __[Lululemon](https://robinhood.com/stocks/LULU/)__ slashed its annual outlook for Mirror hardware sales in December. And this week Bowflex treadmill-maker __[Nautilus](https://robinhood.com/stocks/NLS/)__ said it’s considering selling itself.

Rotate

__Luxury hardware is a hard sell…__ *Especially* during a recession. Even Apple, which is outperforming the broader market, got a rare downgrade yesterday on worries of waning demand. Peloton has been called “the Apple of fitness,” but its products are less integral to daily life than smartphones and laptops. Now it’s hoping that big-name retail partnerships will revive demand for its fancy fitness products.

Peloton starts selling bikes at Dick’s, hoping brick-and-mortar will spin its fortunes around

- __📜🖊️ Policy…__ Fed Chair Jerome Powell said it's time for stricter DeFi [regulations](https://techcrunch.com/2022/09/27/feds-powell-says-real-need-for-defi-regulation-because-of-significant-structural-issues/). While this year's "crypto winter" hasn’t damaged the traditional financial (TradFi) system, Powell said next time could be different.
- __🤔 Sus……__ South Korea tried to [freeze](https://www.bloomberg.com/news/articles/2022-09-28/bitcoin-reserve-linked-to-fugitive-do-kwon-denies-moving-tokens) $67M in __[BTC](https://robinhood.com/crypto/btc/)__ it said is tied to TerraUSD stablecoin founder Do Kwon. Kwon said Terra's collapse (think: $40B investor loss) took his $$ with it, and called reports that he tried to cash out "misinformation." 
- __🤹‍♀️ Quirky…__ The Mouse House wants a piece of NFT cheese. __[Disney's](https://robinhood.com/stocks/DIS/)__ looking to hire web3 (think: DeFi, metaverse) [legal counsel](https://www.coindesk.com/business/2022/09/26/disneys-latest-job-posting-hints-at-big-plans-for-nft-and-crypto-adoption/) to explore the rules and regs surrounding NFT sales. Non-fungible Yodas, anyone?

Cryptic

The Crypto Catchup…

Amazon boosts pay ahead of the holidays, but not enough to beat the inflation Grinch

Dow Jones

S&P 500

Nasdaq

Bitcoin

The pivot to remote work fueled 60% of the pandemic housing price boom, according to a new Fed study

📦 Prime paycheck

__The results are in…__ and __[Biogen](https://robinhood.com/stocks/BIIB/)__ scored a multibillion-dollar win. This week the pharma giant [announced](https://www.nytimes.com/2022/09/27/business/alzheimers-drug-biogen-lecanemab.html) that an experimental Alzheimer’s drug it’s developing significantly slowed cognitive decline in a large trial. The results boost the drug’s likelihood of snagging FDA approval, which could lead to blockbuster sales: 

- __Second time’s the charm:__ Biogen stock soared 40% yesterday, erasing its losses for the year. Last year Biogen got a *different* Alzheimer’s drug approved, despite iffy trial results. But that drug failed commercially after getting only limited Medicare coverage.
- __Industry-wide win:__ Shares of __[Eli Lilly](https://robinhood.com/stocks/LLY/)__, which is also developing an Alzheimer's drug, spiked 7%. Shares of Alzheimer’s-focused biotechs __[Prothena](https://robinhood.com/stocks/PRTA/)__ and __[Acumen Pharmaceuticals](https://robinhood.com/stocks/ABOS/)__ surged over *85%*.

__R&D is a roller coaster…__ Pharma giants have tried to develop successful Alzheimer’s drugs for decades. Despite billions in R&D spending, there’s still no commercially successful drug proven to slow Alzheimer’s. But pricey R&D is common in pharma: it costs an average of $1.3B to develop a drug, and approval can take a decade. 

- __High risk:__ __[J&J](https://robinhood.com/stocks/JNJ/)__, __[Roche](https://robinhood.com/stocks/RHHBY/)__, __[Merck](https://robinhood.com/stocks/MRK/)__, and __[Novartis](https://robinhood.com/stocks/NVS/)__ spend up to 25% of their revenue on R&D. 
- __High reward:__ Roche has launched only eight drugs in the last five years, but they’re worth $100B in potential sales.

Waiting for the trial results like… (Silas Stein/Getty Images)

Tried

__Some industries are feast or famine…__ Bio-pharma revolves around trials. If the trial flops, it’s back to the billion-dollar drawing board. If it succeeds, it’s a “feast” for all involved. Those high stakes come with high potential rewards: __[Moderna](https://robinhood.com/stocks/MRNA/)__ notched a $1.2B quarterly profit (its first ever) after its Covid vax got authorized. It took Biogen lots of time and $$ to develop its most recent Alzheimer’s drug, but analysts say it could do up to $8B in annual sales.

Biogen soars on word of a successful Alzheimer's drug trial, paving the way for big sales after big spending

__Hide your tennis courts…__ Pickleball — a mix of badminton, ping-pong, and tennis — has become the fastest-growing sport in the US with nearly 5M players. Now, MVPs want a swing at the pickle pie. Yesterday, the MLP (Major League Pickleball) [announced](https://www.cnbc.com/2022/09/28/lebron-james-is-a-pickleball-fan-and-player-now-hes-buying-a-team.html) that NBA legend Lebron James joined its investor ranks.

- __The backers:__ In July, Super Bowl champ Drew Brees became one of the [first](https://www.cnbc.com/2022/07/21/drew-brees-is-now-a-co-owner-of-a-professional-pickleball-team.html) big sports figures to invest in MLP. Now, the league plans to grow from 12 to 16 teams across six US cities next year. 
- __Match point:__ Next month, the league’s season-ending tournament will have a $319K purse — the largest in pickleball history.

__Game, set, match…__ Pickleball gained popularity during the pandemic as people looked for socially distant group activities. Since it requires less stamina (and formal training) than tennis or b-ball, it’s easier to pick up. Now, pickleball has 10K designated courts in the US, with *three* new ones opening each day.

- __Sour pickle:__ Pickleball matches can draw large crowds and take over public tennis and basketball courts for hours, causing [friction](https://www.latimes.com/california/story/2022-03-03/pickleball-noise-fueling-neighborhood-drama) (and even lawsuits) between players and nearby residents.
- __Fit pickle:__ Gyms like __[Life Time Fitness](https://robinhood.com/stocks/LTH/)__ have expanded their pickleball offerings to 120+ locations.
- __Camp pickle:__ Some investors are building out chains like pickleball-themed restaurants with indoor and outdoor courts.

Pickled

__The pickle jar is far from full…__ Thanks to leagues like the MLP and investors like Lebron, pickleball is gaining corporate attention. Pickleball tourneys have attracted sponsorships from brands like __[DraftKings](https://robinhood.com/stocks/DKNG/)__, __[Hertz](https://robinhood.com/stocks/HTZ/)__, and __[Chase](https://robinhood.com/stocks/JPM/)__. MLP’s founder said MVP investments would help the league reach its goal of 40M players by 2030. If momentum sticks, we could see a pickle-conomy emerge (think: merch, sponsors). 

From Lebron to Drew Brees, MVPs are investing in pickleball as it becomes an American phenom

Biogen soars on a successful Alzheimer's drug trial, which could lead to billions in sales

Monthly NFT trading volume is down 97% from January highs

💊 Biotech’s boom or bust

__A tale of two (electri)cities…__ Here’s an unlikely pairing: OG car-rental giant __[Hertz](https://robinhood.com/stocks/HTZ/)__ is partnering with oil titan __[BP](https://robinhood.com/stocks/BP/)__ to install EV chargers for your weekend getaway. Last year Hertz struck deals to buy up to 340K EVs from __[Tesla](https://snacks.robinhood.com/newsletters/6fvWNlLj06lmuzw6LGoQJT/articles/4ADArtfh2xKfYOP5GrK3Ip/)__, __[Polestar](https://robinhood.com/stocks/PSNY/)__, and __[GM](https://robinhood.com/stocks/GM/)__ by 2027. Last week it signed a deal to buy *175K* EVs from GM over the next five years, adding to its offering at 500 locations nationwide (already the largest EV-rental fleet in North America). Now:

- __Hertz and BP Pulse__ (BP’s electric-charging unit) plan to build a network of charging stations that’ll primarily serve Hertz renters but also ride-hailing drivers and the public. 
- __For BP:__ The charging-as-a-service partnership could bring the oil giant closer to its goal of operating more than 100K chargers by 2030. Back in 2020, BP pledged to go net-zero by 2050, but it’s notching record profits on the back of surging fossil-fuel prices.

__Running on e…__ EVs have been touted as a way for drivers to reduce emissions while saving $$ — but the latter hasn’t been the case lately. While gas prices have [jumped](https://gasprices.aaa.com/) 17% this year, electric-charging prices can fluctuate by as much as 400% in a single day. BP Pulse’s software could help Hertz lower its electricity costs by scheduling EVs to charge at cheaper times.

EV Chargers → that way (Kevork Djansezian/Getty Images)

Range

__If you build it they will come…__ EV demand is higher than ever, but the lack of charging infrastructure has been a top barrier to mainstreamification. The US has nearly 50K charging stations — that's about 100K fewer charging stations than gas stations. By setting up spots with a cost-efficient charging model, Hertz and BP could help address the top EV barriers: price and range anxiety.

Hertz teams up with oil titan BP to install thousands of EV chargers to ease America’s range anxiety

__Chippy ’n’ guac...__ Visit any __[Chipotle](https://robinhood.com/stocks/CMG/)__ today and there's a 100% chance your tortilla chips will be fried and seasoned with salt and lime by Chipotle workers. But starting next month the carne asada icon will add a *robot* to its chip-making operation.

- __Meet "Chippy":__ The autonomous kitchen bot from __Miso Robotics__ will [make](https://www.cnbc.com/2022/09/27/chipotle-mexican-grill-will-test-robotic-tortilla-chip-maker-.html) and season tortilla chips at a Chipotle location in Fountain Valley, California.
- __Taste tested:__ Chipotle’s already tested Chippy's chef skills at its HQ’s innovation hub.

__Hint of lime...__ lots of crunch. Fast-food joints around the US are still dealing with a crippling labor shortage. In May the restaurant industry still had [750K](https://fortune.com/2022/09/21/flippy-robot-fast-food/) fewer jobs filled than prepandemic. Now the hard-hit sector is bringing in bots to fill the gap:

- __[Jack in the Box](https://robinhood.com/stocks/JACK/)__ debuted fries-making robot "Flippy" (also from Miso Robotics) at a California location in July. __White Castle__ and Buffalo Wild Wings are also testing Miso's robots.
- __Chili's__ employed "Rita the Robot" to serve customers in 2020, and has expanded it to 51 locations.
- __Panera__ is [testing](https://snacks.robinhood.com/newsletters/3Xy3kid2cGsNJewaxEmlYl/articles/4PIIQRXDw9FsXq7ZzufP8q/) an AI drive-thru bot called “Tori.” McDonald's is also piloting automated drive-thrus.

Ippy

__It’s a fast-casual conundrum…__ for America’s nearly 200K fast-food spots and their ~5M employees. A 2021 report [found](https://www.restaurantdive.com/news/report-50-of-operators-plan-to-deploy-automation-tech-in-2-to-3-years/608201/) that half of restaurant operators planned to use automation tech in the next few years. Companies may have to spend big in the short term, but could be rewarded with more efficient operations and fatter profit margins longer term. On the flip side, it could mean millions of jobs lost to bots. Plus: a third of customers don’t want to see a robot prep their food, one report said.

Chipotle debuts tortilla-making robot “Chippy” as restaurants bring in bots to deal with the labor crunch

Hertz teams up with oil titan BP to install thousands of EV chargers to ease range anxiety

Nearly half of US schools are facing teacher and staff shortages

⚡ Hertz and BP’s electric alliance

__Brick-and-mortar…__ goes pixel-and-avatar: America’s largest retailer wants a slice of the metaverse pie. Yesterday __[Walmart](https://robinhood.com/stocks/WMT/)__ [launched](https://www.bloomberg.com/news/articles/2022-09-26/walmart-is-making-its-first-move-into-the-metaverse-with-virtual-worlds-on-roblox) two digital lands: “Walmart Land” is focused on "verch" (virtual avatar merch) and “Walmart's Universe of Play” features games and toy worlds. Walmart chose tween-favorite gaming platform __[Roblox](https://robinhood.com/stocks/RBLX/)__ as its big-blox home. 

__Fashionably late…__ Walmart joins a growing # of brands moving into meta-territory. Last year __[Nike](https://robinhood.com/stocks/NKE/)__ launched “Nikeland” on Roblox and Vans maker __[VF Corp.](https://robinhood.com/stocks/VFC/)__ kicked off “Vans World,” also on Roblox. This year Miller Brewing opened a virtual bar in blockchain-based __[Decentraland](https://robinhood.com/crypto/MANA/)__, while __[Wendy's](https://robinhood.com/stocks/WEN/)__ graced __[Meta’s](https://robinhood.com/stocks/META/)__ Horizon Worlds with a VR resto dubbed the "Wendyverse."

- __On Roblox:__ 21M+ people have visited Nikeland since its launch, and 81M+ have strolled through Vans World, with some paying Robux (in-game currency) to customize their digital shoes.
- __Meta's Horizon Worlds__ has struggled to attract crowds. Its reported monthly user base of 300K (as of February) includes users of a separate Meta app called Venues.
- __Barrier to meta-entry:__ Horizon Worlds requires a $400 VR headset, but Roblox and Decentraland are desktop-first experiences (think: "The Sims").

Clean up in the meta-aisle (Courtesy of Walmart)

Verch

__Brands want to be where the people are…__ even if it's just their avatars. As companies like Walmart and Nike plant their flags in the metaverse, they're looking to platforms that are already populated. Why build your shopping mall — digital or otherwise — in a ghost town when there’s a bustling metropolis next door? Roblox has 60M daily active users, up nearly 25% from last year. That could be a problem for higher-barrier Meta's Horizon Worlds.

Walmart dives into Roblox’s metaverse as brands bet on the Meta competitor

__Dangling the carrot (cash)…__ __Hopper__ passed __[Booking.com](https://robinhood.com/stocks/BKNG/)__ as the most downloaded US travel app last year, snagging attention with data-driven features like hotel-price freezes and flight-rebooking guarantees. Now it’s trying to *keep* consumers’ attention — even when they’re not planning trips. Hopper’s [testing](https://www.wsj.com/articles/hopper-travel-rewards-games-11663959822?mod=business_lead_pos11) a program that rewards users for playing games. 

- __Carrot-nomics:__ Hopper gives users “Carrot Cash” for referring friends, playing games, or opening the app seven days a row (think: __[Snap](https://robinhood.com/stocks/SNAP/)__ streak). Users can redeem Carrot Cash for discounts.
- __Games > billboards:__ Hopper has doled out $50M in rewards, vouchers, and deals in the past year — more than it spent on marketing during that time. 

__Hopping into the game…__ Hopper isn’t the first to use games as an engagement booster: Chinese app __[Pinduoduo](https://robinhood.com/stocks/PDD/)__ used gaming and social features to become an ecomm giant across Asia. Now travel apps like India-based __Oyo__ and US-based __[IHG](https://robinhood.com/stocks/IHG/)__ are using mobile games to keep customers engaged as they rack up points for discounted stays. __[Starbucks](https://robinhood.com/stocks/SBUX/)__ added java-themed [games](https://snacks.robinhood.com/newsletters/3zk1PzoMK4g9MSqLIZcEPW/articles/5lo8sn02AgFwfflhKsoKl8/) to its recently revamped rewards app.

Carrot

__Games could be the new ads…__ While digital billboards are easy to gloss over, reward-based games can be attention-grabbing. Hopper says users who engage with games open the app 5X to 10X more than users who don’t. Games bring customers directly into an app — ads have the same goal, but not always the same result. These new engagement strategies could bring more pain to the flagging digital-marketing sector.

Travel app Hopper tests reward-based games as companies compete for eyeballs in the attention economy

Russia’s war on Ukraine is expected to cost the global economy $2.8T in lost output by the end of next year

👾 Walmart’s meta-world

__The streak’s over…__ and pump anxiety returns: Last week US gas prices [rose](https://www.forbes.com/sites/nicholasreimann/2022/09/21/us-gas-prices-rise-for-first-time-in-100-days/?sh=6b18b69b1dad) for the first time in nearly 100 days. On Wednesday, the average price of a good old-fashioned gallon ticked up to $3.68. That’s nowhere near the $5 average in mid-June, but prices might keep rising. A few things that could make the energy crisis worse:

- __War:__ On Wednesday, Russian President Putin declared a “partial mobilization” of 300K reservists to fight in Ukraine — and even made a nuclear threat. 
- __Weather:__ Hurricane season could cause supply disruptions, with Hurricane Fiona hitting Category 4 on Wednesday. 

__A bitter cocktail…__ Gas is just one ingredient. At the base we have inflation, which is weakening consumer demand as it sticks near 40-year highs. To fight the inflation Grinch, we have something just as painful: soaring interest rates. Last week the Fed approved its third “jumbo” hike and signaled more are likely (several other central banks also lifted rates). Mix in a looming energy crisis, and the dark-and-stormy combo is complete: 

- __Earlier this month:__ Russia’s __Gazprom__ indefinitely [shut down](https://snacks.robinhood.com/newsletters/7oETBY36SrLGaQPslRoeYL/articles/79MQ7GeoUXRx4wTJr1vGMn/) natural-gas flows to Europe, blaming Western sanctions. This year Europe’s electricity bills have nearly 4X’d. 
- __Last week:__ Germany announced it would nationalize __Uniper__ (its biggest Russian-gas importer) as Europe races to store supplies to keep homes warm this winter.

A tank full of problems (Brandon Bell/Getty Images)

Brewing

__Uncertainty hurts most, but does help some…__ While most sectors have tanked, energy stocks like __[Occidental Petroleum](https://robinhood.com/stocks/OXY/)__ and __[Valero](https://robinhood.com/stocks/VLO/)__ have had a banner year. Considering gas prices, it’s no surprise that energy has been the best-performing sector, followed by utilities. Meanwhile, growth stocks that rely heavily on the prospect of big *future* returns (think: tech) have plunged. A dollar today is worth more than a dollar in a year, and rising interest rates incentivize investors to earn off their cash *now* (think: savings accounts, bonds). Meanwhile, some investors are turning to slower-growing companies with historically stable earnings vs. unprofitable growth companies.

Gas prices trend up for the first time in months as a bitter economic cocktail brews

__Shoot for the stars…__ Even if you miss, you might land at a __[Hilton](https://robinhood.com/stocks/HLT/)__. Space tourism isn’t light-years away: last week __Voyager Space__ [tapped](https://www.cnbc.com/2022/09/19/hilton-partners-with-voyager-starlab-space-station-to-design-astronaut-suites.html) Hilton to design a space hotel set to launch in 2027 (feat. a galactic gym and room service). The space economy is forecast to hit $1T by 2040, and the space-tourism race is heating up: Voyager, __Axiom Space__, __Blue Origin__, and __[Northrop Grumman](https://robinhood.com/stocks/NOC/)__ are using NASA funding to build private space stations. __[Virgin Galactic](https://robinhood.com/stocks/SPCE/)__, Blue Origin, and __SpaceX__ are now selling trips to space for between $50K and $55M.

__Here comes Santa Claus…__ with a *much* lighter sleigh. __[FedEx](https://robinhood.com/stocks/FDX/)__ sent shivers through the market this month after announcing cost-cutting measures on a slowdown in shipping demand and plunging profits — oh, and its CEO forecast “a worldwide recession.” Package deliveries have dipped for nearly all major couriers this year as the ecomm boom cools. Over half of Americans say it’ll be harder to afford holiday gifts. Holiday sales are expected to grow only 4 to 6% this year, down from 15% last year.

Zoom Out

Stories we’re watching...

__Bed Bath &…__ Beyond repair? Expectations are low for __[Bed Bath & Beyond](https://robinhood.com/stocks/BBBY/)__ when it reports Thursday. Last month, the coupon legend [announced](https://snacks.robinhood.com/newsletters/70AWukI131xlHFLP88EM8T/articles/6EIEdveXK2qaTduU5Hv0ex/) plans to close 150 stores and lay off 20% of employees as it struggles to address slumping sales and sliding market share. BB&B has missed earnings expectations for four straight quarters, and its losses 7X’d last quarter as it struggled to stock items customers actually wanted. BB&B raised $500M in financing last month, hoping to head into the holidays with more cash and less baggage.

__Air Jordan problems…__ __[Nike](https://robinhood.com/stocks/NKE/)__ may be the most popular sneaker company, but it has big shoes to fill when it reports Thursday. Nike's direct-to-consumer sales grew 7% last quarter, but revenue in North America (its biggest market) fell 5% as inflation curbs sneaker splurges. In China, sales fell 20% as Covid lockdowns trip up demand. Now Nike’s focusing on ecomm (which make up a quarter of its sales) to offload kicks. It’s a steep climb: Nike’s spending 5X what it did prepandemic to ship products, and this year the stock’s down 41%.

Events

Coming up this week...

- __[Blank](https://snacks.robinhood.com/newsletters/KzzfFjx1Ng1lyjGJiZJ0W/articles/3ywag1qgBYXGQTzeuSwAkA/):__ “SPAC King” Chamath Palihapitiya is shuttering two special-purpose acquisition companies worth a combined $1.6B. SPAC-tivity has dwindled this year, with 600 SPACs scrambling to find acquisitions before their deadlines. 
- __[Hole](https://snacks.robinhood.com/newsletters/2FNcgbTKZJ40ykkQHDIiIJ/articles/1dho5yASIr1XkJJTtq2DZo/):__ Prices of crypto-mining machines have tanked 70% this year. The issue: plunging BTC prices + surging electricity costs = lower profits for mining companies, which means lower demand for new equipment.
- __[Play](https://snacks.robinhood.com/newsletters/0T1D7HapptEFn8A65c8L2/articles/29JS1dcQRAdaMAnfUljCYh/):__ __[Spotify](https://robinhood.com/stocks/SPOT/)__ launched a pay-to-download audiobook service for US users, taking on __[Amazon](https://robinhood.com/stocks/AMZN/)__ and __[Apple](https://robinhood.com/stocks/AAPL/)__. Audiobooks are experiencing a growth chapter, and Spotify wants to change the playbook for these “B-list” products.

ICYMI

Last week's highlights...

One-way flights out of Russia sold out after Putin’s call for reservists, and since Wednesday prices out of Moscow to Istanbul have soared to thousands of dollars

🔥 The gas also rises

__Déjà vu at the box office…__ You’re not imagining it: the original “Avatar” is back on big screens this weekend. “Avatar” became the highest-grossing film ever (not adjusted for inflation) when it debuted in 2009, raking in $2.8B globally, and fans demanded a sequel. But __[Disney](https://robinhood.com/stocks/DIS/)__ inherited “Avatar” when it bought 20th Century Fox in 2019 and has been slow to release a sequel. Now Disney’s generating hype by [rereleasing](https://www.cnbc.com/2022/09/22/avatar-returns-theaters-disney-hypes-way-of-water.html) the original in US theaters on Friday:

- __The wait’s (almost) over:__ “Avatar: The Way of Water,” the first of *four* planned sequels, is scheduled to debut in December (just 13 years after the OG…).
- __Better than free advertising:__ Advertising that *pays*. The rerelease is forecast to earn ~$10M. But it’s also said to include a sneak peek of the sequel, which is already gaining buzz.

__Theaters aren’t choosy…__ because they’re struggling. Industry-wide box-office sales are still 30% lower than prepandemic, and the world’s second-largest theater chain, __Regal Cinemas__, filed for bankruptcy this month. Part of the problem: big studios like __[Universal](https://robinhood.com/stocks/UVV/)__ are releasing only some films in theaters and sending others straight to streaming.

- __Fewer blockbusters:__ Nine movies made $1B at the box office in 2019. But since the pandemic, only *two* have cracked $1B, and they’re both franchises (“Spider-Man: No Way Home” and “Top Gun: Maverick”). Analysts expect the new “Avatar" to be the third.

Back on the big screen (Tong Yu/Getty Images)

Pandora

__A bird in the hand could yield two in the bush…__ By reusing “Avatar” Disney can give the sequel a big boost — for very little cost. It owns the two biggest cinematic universes (“Star Wars” and Marvel) and makes money cross-promoting them with films, shows, parks, and merch. Disney’s rerelease could position the “Avatar” franchise to become its next profitable cinematic universe.

Disney rereleases “Avatar” in theaters to drum up hype for its sequel (and its cinematic universe)

__Mining rigs hit rock bottom…__ prices. __Bitmain__, a major manufacturer of the computers that create new __[bitcoin](https://robinhood.com/crypto/BTC/)__, said it's [slashing](https://www.coindesk.com/business/2022/09/21/bitmain-discounts-bitcoin-mining-machines-in-an-already-depressed-market) the cost of its machines. The fire sale comes as mining-rig prices have already tanked 70% this year. The issue: plunging BTC prices + surging electricity costs = lower profits for mining companies, which means lower demand for new equipment. 

- __Stocked:__ As crypto prices climbed last year, miners rushed to preorder rigs from manufacturers like Bitmain and __[Canaan](https://robinhood.com/stocks/CAN/)__ to lock in supply. Higher prices = higher incentive to mine. 
- __Boxed:__ As mining costs rise and returns fall, analysts estimate there are up to 500K new rigs sitting in storage in the US alone (almost 40% of all computing power used to mine BTC is US-based). 

__Mining demand…__ caves in. The largest US publicly traded BTC miners had $1B in second-quarter losses this year. It's not just bitcoin: __[ethereum's](https://robinhood.com/crypto/ETH/)__ Merge last week — from proof of work (energy-hungry) to proof of stake (efficient) — means ethereum miners *and* their expensive rigs are no longer needed. The result: the cost of GPUs for ETH mining fell off a cliff (BTC and ETH miners use different types of computers to unearth digital gold).

Hole

__As crypto evolves, mining must follow…__ That’s why some ETH miners are leaving the biz altogether, repurposing their powerful machines for cloud computing and AI instead. On the BTC side, efforts like Bitmain's collab with mining giant __Merkle Standard__ (think: jointly owned mining data centers) earlier this year could also show potential paths forward.

Crypto-mining rigs go on deep discount as the industry scrambles to respond to tech changes and soaring energy costs

- __📸 Flashy…__ __[Nasdaq Inc.](https://robinhood.com/stocks/NDAQ/)__ wants a taste of crypto. Pending regulatory approval, the corp's getting into the crypto [custody biz](https://www.bloomberg.com/news/articles/2022-09-20/nasdaq-makes-first-big-crypto-push-to-lure-institutional-clients). Holding institutional investors' coins could be a first step toward launching its own crypto exchange.
- __🤔 Sus…__ South Korea [issued](https://www.washingtonpost.com/business/2022/09/19/cryptocurrency-founder-do-kwon-red-notice/) an arrest warrant for Do Kwon, the founder of the failed TerraUSD algo stablecoin ($40B in investor value lost). The 31-year-old tweeted he's not "on the run," but authorities say they can't find him.
- __📜 Official…__ Speaking of which: US legislators drafted a [two-year ban](https://www.bloomberg.com/news/articles/2022-09-20/house-stablecoin-bill-would-put-two-year-ban-on-terra-like-coins) on algo stablecoins like TerraUSD. Nothing's final, but it shows Uncle Sam’s not waiting for another Terra-like collapse to spur regulation.

The Crypto Catch-Up…

Disney rereleases “Avatar” to drum up hype for its sequel as it seeks a new hit franchise

Over half of Americans with student loans say their mental-health challenges stem from that debt

💧 Disney’s “Avatar”-verse

__Heavy is the head…__ that wears the SPAC crown. “SPAC King” Chamath Palihapitiya said he’s [shuttering](https://www.wsj.com/articles/spac-king-chamath-palihapitiya-shuttering-two-spacs-after-failing-to-find-deals-11663674342) two special-purpose acquisition companies worth a combined $1.6B. Refresher: SPACs (aka: blank-check companies) are investment firms that IPO for the sole [purpose](https://snacks.robinhood.com/newsletters/2miYQo5VvBqToiUH0v2lTP/articles/147BXMVnvTG2cNtnGXSgCE/) of merging with real private companies to take them public (think: a more frictionless path to listing). But Palihapitiya’s recent SPACs couldn’t find merger partners by their two-year deadline:

- __Time’s up:__ Both SPACs will now return the funds they raised from investors. Palihapitiya himself will forfeit several million dollars he spent forming them.
- __Past results…__ don’t guarantee future returns. He took __[Virgin Galactic](https://robinhood.com/stocks/SPCE/)__, __[SoFi](https://robinhood.com/stocks/SOFI/)__, __[Opendoor](https://robinhood.com/stocks/OPEN/)__, and __[Clover Health](https://robinhood.com/stocks/CLOV/)__ public via SPAC-quisition. Their stocks boomed last year amid social-media hype but have since fallen 75%+ from their highs. 
- __Uneven returns:__ Palihapitiya’s firm still doubled its money thanks to insider pricing. But many of the retail investors who followed his SPAC-vestments are underwater.

__Blank checks → blank stares…__ #SPACtivity has dwindled this year as rising rates and inflation spook investors. Last year SPACs raised more than $160B; this year they’ve raised just $13B. Overall, SPACs have lost half their value this year. In July, Bill Ackman’s $4B SPAC (the largest ever) returned its money to investors after failing to find an acquisition target.

One SPAC, two SPAC… (Brian Ach/Getty Images)

Blanking

__Headless SPACs are running scared…__ Palihapitiya’s challenges are the tip of the iceberg. The clock’s ticking for the other 600 or so SPACs — which hold nearly $175B of investors’ cash — that are scrambling to find partners. But since many private companies are souring on public markets, and the SEC is thinking about tightening its SPAC rules, it’s looking more likely that many will have to return cash to investors in the coming months.

“SPAC King” returns cash to investors in a sign that the blank-check boom is over

__Cutting a check…__ literally. As the creator economy booms, Twitch wants a bigger slice of the $100B pie. The __[Amazon](https://robinhood.com/stocks/AMZN/)__-owned platform is one of the largest live-streaming subscription sites with 30M+ daily active users and 100K streams running 24/7 (think: gaming follow-alongs). Twitch makes $$ by running ads and taking a cut from subscription sales. 

- __Headline:__ Yesterday, Twitch [announced](https://www.theverge.com/2022/9/21/23364050/twitch-subscription-revenue-split-share-premium-partners) that "premium" creators with a 70-30 subscription revenue split will receive just a 50-50 split after earning $100K.
- __Fine print:__ The change won't take effect till next June, and Twitch says it’ll affect only about 10% of its streamers. FYI: smaller streamers already have the 50-50 split.

__24-hour “Fortnite” marathon…__ zero bathroom breaks. From ASMR bubble-popping to esports, live content has taken the world by storm. Live streaming has accounted for about 20% of all internet traffic this year, doubling from 2019. Nearly a quarter of 18- to 34-year-olds regularly watched live streams last year. Now sites like Twitch and YouTube are battling for the top spot.

ASMR

__Creators have more options than ever…__ Last month, Twitch got rid of its exclusivity clause for top streamers, who are frequently lured into high-paying contracts by rivals. Twitch has the most live-stream hours watched compared to rivals YouTube and __[Facebook](https://robinhood.com/stocks/META/)__, and makes up about 75% of the live market. But its new split could drive more creators to YT, which shares ad revenue 70-30 for channels with 1K+ subscribers.

Twitch is cutting subscription paychecks for its biggest streamers as the creator economy grows more competitive

The “SPAC King” returns cash to investors in a sign that the blank-check boom is over

The US gained 2.5M new millionaires last year, the largest annual boost in millionaires recorded for any country this century

📩 SPAC to sender

__“Spooky vibes” playlist...__ feat. Stephen King. Yesterday __[Spotify](https://robinhood.com/stocks/SPOT/)__ [launched](https://www.nytimes.com/2022/09/20/books/spotify-audiobooks.html) an audiobook service to US users. The catalog has 300K+ titles from independent authors and major publishers like __Penguin Random House__. But your monthly subscription *isn’t* enough to download that Taylor Jenkins Reid best-seller:

- __Pay per download:__ You pay for each audiobook à la carte (prices vary). Malcolm Gladwell's "Talking to Strangers" = $21.90 + tax.
- __Web-only:__ Inconveniently, you can't download books through the app (only on the web). Spotify has [beef](https://techcrunch.com/2021/04/30/europe-charges-apple-with-antitrust-breach-citing-spotify-app-store-complaint/) with __[Apple's](https://robinhood.com/stocks/AAPL/)__ in-app commissions and is avoiding the 30% "App tax."
- __Made for you:__ Eventually Spotify wants to curate audiobooks the same way its algorithms recommend tunes based on your listening habits.

__"Dune" on the I-90...__ Audiobooks are experiencing a growth chapter: audiobook revenues hit $1.7B last year — up 25% from 2020. Spotify believes the audiobook market has massive growth potential that could help drive profits. In July, it bought audiobook distributor Findaway for $119M. But there’s competition in this lucrative market…

- __Top charts:__ __[Amazon’s](https://robinhood.com/stocks/AMZN/)__ Audible is by far the largest audiobook retailer (about half of US sales in April). Apple’s and __[Google’s](https://robinhood.com/stocks/GOOGL/)__ pay-per-book platforms are also popular. 
- __Top concerns:__ Spotify has significantly grown subscribers and content (think: massive pod investments) but has never made an annual profit. The stock’s down 60% this year (lower than its IPO price).

Spotify’s new chapter (Jakub Porzycki/Getty Images)

Playbook

__A big player can change the playbook…__ As the curated-playlist OG, Spotify revolutionized how we listen to music. By taking a novel approach to audiobooks, it could transform that “B-list” product, too (audiobooks still represent less than 7% of the worldwide book market). With its 188M loyal paying subscribers, Spotify could become a hub for book recommendations and bonus content (think: author-curated playlists) and expand the global audiobook audience.

Spotify launches an audiobook business, taking on Amazon and Apple in its quest for profitable growth

__3 jeans, 2 glosses…__ 1 trip. As JCPenney’s mini-shop partnership with Sephora comes to a close, the department-store chain is building its own beauty foundation. Last year JCP launched JCPenney Beauty shops in 10 stores and online, showcasing 250+ makeup and skincare brands. Its debut was designed to offset the end of the Sephora contract:

- __Old digs:__ JCP’s Sephora partnership once included 570+ shops-within-shops (#InceptionRetail) and contributed to nearly 15% of its prepandemic revenue.
- __New digs:__ JCP is expected to open 300 more mini beauty stores (complete with in-department salons) by early 2023 and another 300 in the spring.

__Prime(r) real estate…__ Department stores are prime territory for beauty brands to attract on-the-go shoppers. Last month __[Kohl's](https://robinhood.com/stocks/KSS/)__ announced plans to [expand](https://www.forbes.com/sites/sharonedelson/2022/08/18/kohls-to-roll-out-sephora-beauty-shops-to-all-1100-stores-for-2-billion-in-sales-by-2025/amp/) Sephora mini-shops across its 1.1K US locations (which it expects will yield $2B in sales by 2025). Meanwhile, rival __[Ulta](https://robinhood.com/stocks/ULTA/)__ plans to open 800 more of its stores-within-stores at __[Target](https://robinhood.com/stocks/TGT/)__.

- __Affordability:__ JCP wants to differentiate by offering more inclusive products and prices, shifting its focus from Sephora’s premium brands (think: Bobbi Brown, MAC). 
- __Inclusivity:__ Nearly 20% of JCP Beauty’s products come from Thirteen Lune, a site featuring 100+ BIPOC-founded brands. JCP is also adding indie brands that have never been sold in major retailers.

Masstige

__Masstige > prestige…__ JCP’s Beauty focuses on mass-produced brands that are affordable, innovative, and inclusive. With beauty fans still splurging on cosmetics (see: [lipstick index](https://www.cnbc.com/2022/08/14/-the-lipstick-index-is-back-and-retailers-are-trying-to-cash-in-.html)), “masstige” retailers are luring shoppers with affordability and variety. Last quarter, budget brand __[E.L.F.](https://robinhood.com/stocks/ELF/)__ [grew](https://www.wsj.com/articles/the-3-lipstick-that-ignores-inflation-11663639487) sales 26% — more than double what Wall Street expected — despite keeping prices low on best-sellers.

JCPenney phases out Sephora mini-shops and expands its own beauty stores in a shift to “masstige” cosmetics

Spotify launches an audiobook biz, taking on Amazon in its quest for profitable growth

Amazon said its “Thursday Night Football” debut drew a record number of Prime signups over a three-hour period

📚 Spotify’s audiobook bet

__A tiny taste of normal…__ Starting today, __[McDonald’s](https://robinhood.com/stocks/MCD/)__ will begin [reopening](https://www.nytimes.com/2022/09/19/business/mcdonalds-reopen-ukraine.html) some of its restaurants in Ukraine. McD’s closed all of its 109 locations there after Russia invaded over six months ago. (Refresher: McD’s sold its Russian stores in May and they [reopened](https://snacks.robinhood.com/newsletters/74Rmw5VlxBTIazWlkKzrHf/articles/6JLig31chFCLXR55AUMuC6/) in June under new ownership.) Today, war’s still raging in Ukraine, but McDonald’s says it hopes to restore “a small but important sense of normalcy.” 

- __Taking it slow:__ McD’s plans to open restaurants gradually over the next two months in Kyiv, where __[Nike](https://robinhood.com/stocks/NKE/)__ and KFC stores are open. For now, Big Macs are delivery only, with in-store dining and drive-thru set to resume next month.
- __Safety first:__ McD’s will close during air-raid alerts to allow customers and workers to move to shelters.

__The violence is ongoing…__ but Ukraine's already planning for recovery. Russia’s war on Ukraine has left tens of thousands of people dead, in addition to at least 7M refugees and $100B+ in damage — and it’s not over. But last week, Ukrainian President Zelensky [met](https://www.nytimes.com/2022/09/19/business/zelensky-blackrock-reconstruction-fund.html) with __[BlackRock](https://robinhood.com/stocks/BLK/)__ CEO Larry Fink to discuss a reconstruction fund to attract public and private investment.

- __Donations won’t do it:__ So far, countries have pledged $83B+ in aid to Ukraine, but some analysts say rebuilding could cost as much as $750B. To encourage private investment, Ukraine’s offering entrepreneurs grants and no-interest loans.

Golden arches. Blue-and-yellow flags. (Yurii Stefanyak/Getty Images)

McRecovery

__Recovering from war takes a global effort…__ and McD’s and BlackRock aim to play a part. Ukraine’s economy is set to fall about 30% this year, but it didn’t collapse as Russia wanted: industry’s [rebounding](https://www.wsj.com/articles/ukraine-economy-stabilizes-military-gains-11663078436) and unemployment’s falling. Plus, the same countries and companies pushing Russia out of the global economy are pulling Ukraine in: creditors including the US government and BlackRock have agreed to freeze billions in debt to kick-start recovery.

McDonald’s reopens some restaurants in Ukraine, helping to kick off recovery talks as war rages on

__Grand Theft IP...__ Video-game titan __[Take-Two Interactive](https://robinhood.com/stocks/TTWO/)__ is feeling the heat as it suffers from one of the biggest [leaks](https://www.bloomberg.com/news/articles/2022-09-19/grand-theft-auto-vi-gta6-leak-is-a-shock-to-rockstar-games#xj4y7vzkg) in gaming history. Over the weekend a hacker posted 90 previously unreleased clips from Take-Two's highly anticipated "Grand Theft Auto VI," including new locations and characters. Yesterday Take-Two's stock dropped 3% before rebounding higher — but is still down almost 30% this year.

- __Pause:__ GTA's publisher, Rockstar Games, confirmed the leaked videos are real and is trying to stop their spread on sites like YouTube.
- __Play:__ "GTA V" is still one of the best-selling video games ever, despite being released nearly a decade ago. 

__Ready player none…__ Take-Two's GTA hack kicks the video-game biz (which is on pace for its first sales decline in seven years) while it's down. Cyberattacks on gaming companies and users have increased 167% over the past year, as hackers look for more ways to exploit the multibillion-dollar industry. Leaks could be just the start: in July hackers posted stolen documents from __[Roblox](https://robinhood.com/stocks/RBLX/)__ in an attempt to extort the biz.

__It’s hard to put the IP genie back in the bottle…__ Gaming companies are famous for keeping releases secret. While leaks can sometimes boost hype, they can also force developers (like Take-Two and Rockstar) to make changes to games and delay releases. And delays = lost $$. "GTA VI" is expected to earn $3.5B in bookings on its 2025 debut, and $2B a year after that.

Take-Two suffers one of the biggest leaks in video-game history, as hackers up the pressure

McDonald’s reopens restaurants in Ukraine, kicking off recovery talks as war rages on

Scientists estimate there are 20 quadrillion (that's 20,000 trillion) ants on Earth

🍟 Ukraine’s McRecovery

__“Buy now” is the easy part…__ It’s the “pay later” that gets tricky. Buy now, pay later companies help you sport that $400 __Aritzia__ coat now and pay for it *later* in monthly installments. BNPLs gained popularity by [positioning](https://snacks.robinhood.com/newsletters/68Ji759EUo3BnTZxw9mAj1/articles/4ged1i28lf9nr12iGW3oBC/) themselves as trendier credit-card alternatives for Gen Z — with fewer strings attached (think: no interest, just late fees). Now they’re facing serious heat, and they can’t deal with it later:

- __Regulated:__ Last week the Consumer Financial Protection Bureau [outlined](https://www.cnbc.com/2022/09/15/harvard-fellow-cfpb-crackdown-on-buy-now-pay-later-is-good-news.html) plans to regulate BNPL businesses like __Klarna__, __[Affirm](https://robinhood.com/stocks/AFRM/)__, __[PayPal](https://robinhood.com/stocks/PYPL/)__, and __[Block](https://robinhood.com/stocks/SQ/)__-owned Afterpay.
- __Risky business:__ Regulators said BNPLs pose risks to consumers because they lack protections, harvest data, and encourage over-borrowing. 
- __Credit rules:__ Officials plan to regulate BNPLs like credit-card companies, which means BNPLs may have to add pricey safeguards and do more credit checks.

__Boom earlier, crash later…__ BNPL giants thrived during the pandemic when interest rates were low and stimmy cash was flowing. BNPL loans jumped from $2B in 2019 to *$24B* last year (a 12X increase). But as the economy soured and IOUs increased, so did BNPL’s blues:

- __Gucci to grapes:__ Mid-pandemic, stimmy-flushed shoppers used BNPL for luxuries like __Balenciaga__ bags. Now 15% of BNPL users are “buying now, paying later” for gas and groceries. 
- __Missed payments:__ ’Flation-stressed folks are increasingly struggling to pay for necessities up front, and more BNPL users are racking up late fees — and failing to repay their loans.

A case of the BNPL blues (Daniel Harvey Gonzalez/Getty Images)

BNPL

__Pain now can mean gains later…__ BNPL’s looser-than-credit rules helped attract users. But now its lax policies are hurting the bottom line: despite soaring revenues, Affirm’s still unprofitable and Klarna’s losses tripled in the first half as bad debts mounted. Affirm shares are down 75% this year, while Klarna’s valuation dropped 85% in July. Now that BNPL staples face stricter rules (read: higher costs), it may be even more difficult for them to reach profitability short term. But regulation could help them reduce bad debt long term.

Regulators announce plans to crack down on BNPL giants, threatening their path to profits

__No Powell pause…__ aka: Pow-se. On Wednesday the Fed is expected to hike interest rates by a “jumbo” 75 basis points (or even 100) after August inflation came in [hotter](https://snacks.robinhood.com/newsletters/ZgP04cuwhMSae0wDNeDsj/) than expected. Though it slowed from July, inflation was still up 8.3% from last year. The spooky numbers sent stocks tumbling to their worst day in two years. Analysts expected better results since gas prices fell, but food and rent kept rising. Now investors predict even more pain from the Fed chair, who’s committed to fighting #flation with aggressive hikes.

__Up in smoke…__ Cannabis sales are sparking upward worldwide, but not all sellers are feeling the high. Last quarter, Canadian pot giant __[Aurora Cannabis](https://robinhood.com/stocks/ACB/)__ saw its revenue drop 8% while losses 5X’d as it struggled to cut costs. In the US, canna-fans are starting to trade down for cheaper greens as inflation kills the buzz. Shares of Canadian cana-rivals __[Tilray](https://robinhood.com/stocks/TLRY/)__ and __[Canopy](https://robinhood.com/stocks/CGC/)__ are down 50%+ this year as US legalization slows, while Aurora’s down 80%. We’ll see whether Aurora’s sales slumped (as analysts forecast) when it hashes out results tomorrow.

__The Merge went smoothly…__ but there could be bumps ahead. __[Ethereum](https://robinhood.com/crypto/ETH/)__ successfully shifted from proof of work (energy-guzzling) to proof of stake (efficient) last week, eliciting relieved cheers from crypto fans. Now investors can stake their ETH to earn yield (think: interest), creating added incentives for crypto titans and hedge funds to [hold](https://www.bloomberg.com/news/articles/2022-09-13/what-s-ethereum-eth-merge-proof-of-stake-differs-from-bitcoin-btc) ether. But there could be trouble ahead: ethereum devs are warning of post-Merge bugs, and the SEC said Thursday that a crypto that allows people to stake coins and earn yield might be a [security](https://www.wsj.com/articles/ethers-new-staking-model-could-draw-sec-attention-11663266224).

__Construction disruption…__ The pandemic housing boom has gone bust, and it could hit homebuilders hard. In July, new-home construction [fell](https://www.businessinsider.com/housing-market-outlook-downturn-bubble-home-values-dropping-2022-8#:~:text=In%20July%2C%20residential%20housing%20construction,affordable%20housing%20options%20for%20Americans.) 10% as soaring mortgage rates and high prices make homes less affordable. US home sales have [fallen](https://www.wsj.com/articles/existing-home-sales-prices-housing-market-july-2022-11660774574) for six months straight, and homebuilder confidence has [dropped](https://www.bloomberg.com/news/articles/2022-08-15/us-homebuilder-confidence-hits-worst-slump-since-2007-collapse) for eight months (the worst slump since 2007’s collapse). But homebuilding giants __[Lennar](https://robinhood.com/stocks/LEN/)__ and __[KB Home](https://robinhood.com/stocks/KBH/)__, both of whom report Wednesday, posted rising sales last quarter and upheld their growth forecasts. That could be because inventory’s still tight. 

- __[Photoshop](https://snacks.robinhood.com/newsletters/4DxKjaxcBBGxy0yyBuYx9F/articles/3pzeouzW81imZVi8xBUZR0/):__ __[Adobe](https://robinhood.com/stocks/ADBE/)__ agreed to buy design-software startup __Figma__ for $20B — its largest acquisition *by far*. Cue: Adobe stock had its worst day since 2010, as investors worry that it’s overpaying to quash competition.
- __[Searched](https://snacks.robinhood.com/newsletters/7KTQ2MUJHzWX25g9adlgVP/articles/1a0ZyqNit2YojO6QpTKXHl/):__ The EU ordered __[Google](https://robinhood.com/stocks/GOOGL/)__ to pay a record $4B after it lost its appeal to an Android-related antitrust ruling. Crackdowns abroad could increase pressure in the US, where tech regulation has stalled. 
- __[iCharge](https://snacks.robinhood.com/newsletters/3zk1PzoMK4g9MSqLIZcEPW/):__ __[Goldman Sachs’](https://robinhood.com/stocks/GS/)__ loss rate on __[Apple](https://robinhood.com/stocks/AAPL/)__ Card loans is the worst among major US credit-card issuers (read: problems with bad FICO scores). Banks with more subprime exposure would feel the hit of a recession first.

Buy now, pay never? Regulators aim to crack down on BNPL giants like Klarna and PayPal

The autumnal equinox — when day and night are the same length — will happen on September 22, marking the beginning of fall