__Clear aisles, full carts, can’t lose…__ America’s largest retailer is seeing the bright side of dark times. __[Walmart](https://robinhood.com/stocks/WMT/)__ shares spiked 7% yesterday to a six-month high after it delivered surprisingly strong quarterly sales (up 8%) and boosted its forecast. The MVP of earnings: groceries. Kitchen staples like canned beans and hot dogs carried the quarter. 

- __In the cart:__ Food was the fastest-growing category with double-digit sales growth as more shoppers turned to Walmart for its “everyday low prices.” 
- __In the storeroom:__ Discretionary items like TVs, air fryers, and clothing were weak. On the plus side, Walmart unloaded some of its excess inventory piles. 
- __[Target](https://robinhood.com/stocks/TGT/),__ which reports today and is also a grocery go-to, could echo these trends. 

__$6 Hu chocolate to $1 [Hershey’s](https://robinhood.com/stocks/HSY/)…__ Americans are trading down. Walmart’s CFO said customers have been turning to less pricey protein sources like hot dogs, beans, and store-brand peanut butter. __[Tyson’s](https://robinhood.com/stocks/TSN/)__ lackluster report this week confirmed that demand for premium beef and pork is dropping. But it’s not just lower-income customers trading down: 

- __More high-income customers__ turned to Walmart last quarter for cheaper groceries. 75% of its market-share gains in food came from households making $100K+. 
- __With grocery prices up 12%__ from a year ago, discount retailers like __[Dollar General](https://robinhood.com/stocks/DG/)__ and __[Grocery Outlet](https://robinhood.com/stocks/GO/)__ have also [gained](https://www.forbes.com/sites/laurendebter/2022/11/15/walmart-attracting-wealthier-customers-looking-for-cheaper-groceries-as-inflation-rages/?sh=447b83843e8d) wealthier customers. 
- __It’s a theme:__ In its latest earnings, __[McDonald’s](https://robinhood.com/stocks/MCD/)__ said it attracted more higher-income customers who opted for fast-food over pricier sit-down restaurants.

Seeing the cart as half full (Gilles Mingasson/Getty Images)

PB&J

__Tough times can be growth times…__ or an opportunity for big companies to grab a larger slice of the pie. Walmart gained US grocery market share as inflation spurred higher-income shoppers to browse its aisles. Corporate titans like Walmart, __[Amazon](https://robinhood.com/stocks/AMZN/)__, and McDonald’s can afford to keep prices relatively low during downturns to grow their market share (McD’s did [just that](https://slate.com/business/2009/08/how-mcdonald-s-won-the-recession.html) in ’08) while smaller or pricier players could suffer.

Walmart stock spikes as higher-income shoppers boost its grocery market share

__Prefab(ulous) homes…__ coming to a lawn near you. This week __[Airbnb](https://robinhood.com/stocks/ABNB/)__ cofounder Joe Gebbia [unveiled](https://www.wsj.com/articles/airbnb-co-founders-new-business-is-building-small-homes-in-backyards-11668414543) his newest venture, __Samara__, which plans to sell small homes for backyards. Samara’s accessory dwelling units (aka: ADUs) start at $289K for studios and $329K for one-bedrooms. Samara hopes homeowners will use its little abodes not just as rental properties but as extra space for themselves. 

- __Guest-house vibes:__ Each ADU has a spacious bathroom, kitchen, and washer/dryer. You can even splurge $10K for solar panels.
- __FYI:__ The mini homes will first be available in California, where new laws have made it easier for residents to build on their lots. But Samara has plans to expand.

__Back to WFMH…__ work from mom’s home. More Americans might start turning garages into guest houses as sky-high prices box out would-be buyers (average home sale price = $542K). As of July, more than half of young adults (age 18 to 24) were living with their parents. And last year nearly a fifth of Americans were living in multigenerational homes. As US housing affordability hits its lowest level since 2012, mini homes are gaining popularity: 

- __CA issued nearly 20K ADU__ building permits last year, up 58% from 2019. The US tiny-home market is expected to grow at a [record](https://www.prnewswire.com/news-releases/tiny-homes-platform-market-to-record-a-yoy-growth-rate-of-3-88---technavio-identifies-north-america-as-key-market-301614953.html) pace this year.
- __Mobile homes are hot too:__ From 2016 to 2021, the median price of trailers surged 34%.

Cozy

__If you build it, they could come…__ Experts say there’s a nationwide housing shortage of up to 6M new homes. By one estimate, there’s room for 1.5M backyard homes in CA, which could help ease some of the state’s crunch. But with rising interest rates and inflation cutting into homeowner budgets, it could be a while before they become mainstream.

Airbnb cofounder launches a tiny-home biz to tackle California’s housing shortage as Americans are crunched for living space

Dow Jones

S&P 500

Nasdaq

Bitcoin

Household debt grew at its fastest pace in 15 years last quarter as credit-card balances ballooned

🌭 Walmart’s hot-dog quarter

__Chilling in Miami with the heat…__ Not enjoying the Florida sunshine: FTX. The bankrupt crypto exchange had signed a 19-year, $135M deal for naming rights to the Miami Heat’s home arena last year. Now Miami-Dade County and its NBA team say they’re “immediately taking action” to [end](https://www.espn.com/nba/story/_/id/35004915/miami-heat-cut-ties-bankrupt-ftx-rename-home-arena) their relationship with FTX. The exchange had paid $14M up front and was scheduled to make a $5.5M payment in January.

- __Bye, FTX Arena:__ It’ll still be referred to as FTX Arena for Saturday’s Heat game, but social-media [pics](https://twitter.com/shiv2268/status/1591195099199049729) suggest the FTX logo is already being dismantled. 
- __Hi, [insert name here] Arena:__ Miami said it would work with the Heat to find a new naming-rights partner for the arena. 

__From the NBA to the MLB…__ FTX has a stacked portfolio of sports sponsorships. Last year, Major League Baseball signed a five-year deal to name FTX its official crypto-exchange partner (think: FTX.us patches on umpire uniforms).

- __Racing:__ FTX also had a long-term sponsorship deal with __[Mercedes’](https://robinhood.com/stocks/MBGYY/)__ Formula One team — that’s now been scrapped (no more FTX logos on F1 cars). 
- __Esports:__ FTX had struck a naming-rights deal with US esports giant __TSM__, among other esports players. Brazilian org Furia tweeted that it’s ending its deal with FTX. 
- __Football:__ Last year UC Berkeley struck a $17.5M, 10-year naming-rights deal with FTX for its football stadium. TBD if it’s getting a new name.

New name coming in hot (Andy Lyons/Getty Images)

Defense

__Crypto has covered its bases…__ in sports. Crypto brands spent $130M+ on NBA sponsorships alone last season, up from ~$2M in the previous season. Five crypto companies — including FTX, __Crypto.com__, and __[Coinbase](https://robinhood.com/stocks/COIN/)__ — were responsible for 92% of NBA sponsorship spending in the crypto category. Crypto.com’s Lakers’ stadium-naming deal alone is reportedly worth $700M. But now that the Enron-style “[naming-rights curse](https://protos.com/has-the-naming-rights-curse-finally-hit-crypto/)” has hit FTX, sports orgs might need to cover their bases too.

Miami ditches “FTX Arena” as sponsorships with the bankrupt exchange haunt sports orgs

__Big opening weekend for Wakanda…__ __[Disney’s](https://robinhood.com/stocks/DIS/)__ “Black Panther: Wakanda Forever” just [raked](https://www.axios.com/2022/11/14/black-panther-sequel-box-office-momentum) in $180M in North America, the second-biggest box-office haul of the year and the highest-grossing November debut ever. 

- __It’s a much-needed win__ for Disney, whose sales and earnings fell short of expectations last quarter despite rebounding attendance at its parks.
- __Big shoes to fill:__ “Wakanda Forever” was the first flick to crack $100M since July. But the super sequel fell short of the original “Black Panther,” which featured the late Chadwick Boseman ($202M on opening weekend). 

__It’s Marvel’s universe…__ we’re just living in it. The only movie that’s outperformed “Wakanda Forever” this year was another Marvel flick, the latest “Doctor Strange.” In fact, 9 of the top 15 domestic debuts in history are now Marvel films (not adjusted for inflation). 

- __Marvel mania:__ The seven Marvel movies that Disney’s released in the past two years have grossed $2.3B, more than a fifth of total box-office sales in that period. 
- __Well-versed:__ Disney uses its Marvel-verse to cross-promote shows, parks, and merch. It plans to build an Avatar-verse around its new “Avatar” film, which opens next month.

Versed

__It’s the “-verses” versus everyone…__ Disney has invested heavily in “theatrical universes” like the Marvel-verse and the “Star Wars”-verse, whose recognizable characters still attract large audiences even as theater attendance slumps. Last month, rival Hollywood heavyweight __[Warner Bros. Discovery](https://robinhood.com/stocks/WBD/)__ released “Black Adam” to bolster its growing DC-verse. But as studios focus on a few mega-blockbusters, theater chains like __[AMC](https://robinhood.com/stocks/AMC/)__ are suffering: US box-office sales this year are still a *third* below prepandemic levels.

Disney’s “Black Panther” sequel broke a November box-office record — another win for the Marvel-verse

*📊 Like if your banker did a show-and-tell, but left half the presentation at home…*

Crypto exchanges are in the spotlight after FTX’s bankruptcy. Now nine exchanges are rushing to reassure everyone that they've actually got customers' assets. __Binance__ said it would issue "[proof of reserves](https://fortune.com/crypto/2022/11/14/binance-promised-transparency-proof-of-reserves-crypto-ftx/)": cryptographic proof it holds the coins it claims. But proof of reserves has been criticized because it's only one part of an exchange's financial health. Another part: proof of *liabilities* (how much the exchange *owes*).

DEFI(NE)

Heard on the Block: “proof of reserves”

The human population has doubled in just 48 years, hitting 8B this week

🏀 FTX Arena bounces

__The midterm hangover…__ isn’t over. It’s still too close to call, but the US might get a split government, with one GOP-controlled chamber of Congress. Stocks plunged Wednesday after midterm results didn’t show clear gridlock. Investors generally prefer when power’s shared, because historically that’s meant less legislation (it’s harder to agree on things). That can mean fewer potential blockers for business, regardless of which party’s in power. 

- __Democrats maintained__ their slim majority in the Senate after key victories in Nevada and Arizona over the weekend. Georgia’s runoff election is slated for December 6. 
- __If Republicans take the House__ (which they’re favored to) that’s enough to unlock gridlock. Either way, majorities will likely be slim within both chambers.  

__Ballot bubbles giving SAT flashbacks…__ From choosing lawmakers to voting on propositions, Americans’ ballot decisions could have big implications. A few sectors that could be affected:

- __Energy:__ Republican lawmakers have supported US energy independence, and that could lead to easier access to drilling permits if the GOP takes the House. 
- __Cannabis:__ Voters in Maryland and Missouri legalized recreational marijuana, joining 19 other states and DC. Meanwhile, Colorado voted to decriminalize and regulate some psychedelic substances (think: magic mushrooms). 
- __EVs:__ California voted down an extra tax to build EV infrastructure. __[Lyft](https://robinhood.com/stocks/LYFT/)__ was the biggest backer of the prop, since the funds would’ve helped it meet the state’s requirements. 
- __Gambling:__ CA voters also struck down a prop that would’ve allowed gambling companies like __FanDuel__ and __[DraftKings](https://robinhood.com/stocks/DKNG/)__ to offer online sports betting.
- __Tobacco:__ And CA became the largest state to ban flavored-tobacco products after voters upheld the state’s ban. Tobacco titans like __[Philip Morris](https://robinhood.com/stocks/PM/)__ and __[RJ Reynolds](https://robinhood.com/stocks/RAI/)__ had spent big in hopes of overturning it.

Wall Street’s waiting (Kena Betancur/Getty Images)

Voted

__Investors care more about the Fed right now…__ Because the central bank has the levers to influence rates and inflation. Inflation was voters’ [most pressing](https://www.npr.org/2022/11/07/1134832876/inflation-is-top-issue-in-this-weeks-midterms) issue in these elections (two years ago it wasn’t on the radar). Markets rallied hard Thursday after news that inflation cooled more than expected last month, which suggests the Fed might slow its rate hikes (top of mind for investors).

How midterms could affect the markets, from inflation to energy to cannabis

__Major whiplash…__ Crypto exchange __FTX__ (including FTX US and 130 affiliated companies) filed for bankruptcy Friday after a whirlwind week revealed an $8B balance-sheet hole — and rival __Binance__ bailed on its takeover plan. Oh, *and* FTX halted customer withdrawals — but that didn’t stop $515M from being moved out of the exchange Friday night in a possible hack. Sam Bankman-Fried, the exchange's now former CEO, had been a Capitol Hill regular lobbying for industry-friendly regs. Now, that regulation's in doubt. Meanwhile, investors fear FTX's "contagion" could spread. One sign that it may have already: __BlockFi__ (which got bailed out by FTX in June) suspended withdrawals, citing FTX's downfall. 

__Googling “packing hacks”...__ to avoid the $50 luggage fee. Budget airlines are booming as more travelers turn to no-frill flights to hit the inflated skies. Last week, Irish airline __Ryanair__ reported record passengers and profits for its summer quarter. Meanwhile, US-based __Frontier__ saw sales jump 35% as passengers paid extra for perks (think: bearable legroom). Travel is still hot: even with airfare forecast to be the priciest in five years, half of Americans plan to travel this holiday season.

Zoom Out

Stories we’re watching...

__Xi Jinping saw his shadow…__ and Chinese stocks may have six more weeks of winter. China’s tech giants posted their slowest growth *ever* in August as Beijing’s zero-Covid policy raised costs and hurt demand (because: more lockdowns). Chinese stocks popped this month on reopening rumors. But as Covid cases surged last week hawkish President Xi said he planned to “hold fast” to the strict policy (though he relaxed *some* rules on Friday). We’ll see how wounded giants __Alibaba__, __JD.com__, and __Tencent Music__ are faring when they report this week.

__Jingle bells in November…__ Retailers are getting into the holiday spirit early. __Walmart’s__ sales jumped 8% last quarter, but profits were squeezed as inflation-fatigued shoppers avoided big-ticket items like TVs. __Target’s__ profits fell 90% as it offered steeper discounts on overstocked goods. Still, holiday sales are expected to rise from last year, and retailers are already setting up festive displays to hype demand. But an unmerry combo of discounts and high costs could keep Walmart and Target from wowing investors when they report this week.

Events

Coming up this week...

- __[HitTok](https://snacks.robinhood.com/newsletters/4gOzlWfuufbhkgNYnGBQA1/articles/6WbU0NDw8OQzavUs2zgGWp/):__ From __Sony__ to __Universal Music__, the largest record labels want a bigger cut from __TikTok__ as the app becomes a hit-maker. While TikTok needs the music industry, the industry increasingly needs the Tok.
- __[iSag](https://snacks.robinhood.com/newsletters/1rIPKyj7VdAtV8FpwShSUE/articles/gRGR2FVnkico17JfZqUlQ/):__ __Apple's__ expecting a drop in iPhone shipments this holiday season (picture: 3M fewer iPhone 14s than anticipated). Last week, China’s Covid policy triggered a weeklong shutdown at the main iPhone assembly site. 
- __[Alexa](https://snacks.robinhood.com/newsletters/4sSb6rTTRHcOl77ZhrZz2R/articles/4s4UBkKJDUcEfl5DFMLZsx/):__ __Amazon's__ reportedly looking to cut costs, and Alexa could get downsized. But instead of __Meta__-sized layoffs, Amazon is said to be pushing workers to find roles in more lucrative divisions of the company.

ICYMI

Last week's highlights...

China is nearly as wide as the US, but the entire country officially has just one time zone

🇺🇸 Midterms and markets

__“Alexa, stop losing money”...__ There’s trouble in the house Bezos built: __[Amazon](https://robinhood.com/stocks/AMZN/)__ is looking to cut costs, notably in its Alexa division, a WSJ [report](https://www.wsj.com/articles/amazon-has-launched-a-cost-cutting-review-focused-on-unprofitable-business-units-11668094823?mod=business_lead_pos1) says. In the past three years Amazon spent lavishly as ecomm demand surged: it hired 800K+ workers and splurged $10B on acquisitions, including Roomba maker __[iRobot](https://robinhood.com/stocks/IRBT/)__ and health clinic __[One Medical](https://robinhood.com/stocks/ONEM/)__. But now that rising prices are denting profits, the Prime padre is looking to cut costs:

- __Try harder, Alexa:__ Amazon’s Alexa team has 10K+ employees (about as many as __[Snap](https://robinhood.com/stocks/SNAP/)__ and __[Airbnb](https://robinhood.com/stocks/ABNB/)__ *combined*) and has lost up to $5B annually in recent years. Now Amazon is said to be encouraging Alexa workers to find jobs in other divisions. 
- __Company-wide:__ Amazon has lost $3B this year — after making $33B in *profits* last year. Cue: Amazon just announced a hiring freeze.

__Alexa has company…__ Numerous tech giants have resorted to radical cost cutting as the Fed’s hikes have hit rate-sensitive tech businesses hard. This week __[Meta](https://robinhood.com/stocks/META/)__ laid off 11K employees (13% of its workforce), and 330+ other techies have laid off workers this year. Others, including __[Apple](https://robinhood.com/stocks/AAPL/)__, have frozen most corporate hiring and reeled in spending (think: less $$ for R&D and moonshots).

Bad robot (Joby Sessions/Getty Images)

Alexcut

__Not all cost cuts are created equal…__ Some are easier to reverse than others, and poorly executed cost cutting can be expensive: just look at __[Twitter](https://robinhood.com/stocks/TWTR/)__, which is already trying to rehire some of the workers Elon fired just days ago. On the other hand, strategic cuts can pay off in the long run: by downsizing growth plans instead of laying off workers, companies like Amazon and __[Google](https://robinhood.com/stocks/GOOGL/)__ hope to position themselves for an easier scale-up in the next boom.

Amazon reportedly considers downsizing Alexa as tech giants scramble to cut costs

__Cuffing szn is here…__ but investors have mixed feelings about __[Bumble](https://robinhood.com/stocks/BMBL/)__. It grew sales 16% last quarter, but the pace of its swipe-driven growth is slowing. Bumble’s female-focused dating app also added a record 164K paying users last quarter, but experienced lower renewal rates on key paid subscriptions (especially with younger users). The company issued a weak forecast for this quarter as the strong US dollar hurts sales for its international dating apps like Euro-focused Badoo and [Fruitz](https://snacks.robinhood.com/newsletters/1I3jIJQkqK0ygv51yekmCQ/articles/3sQjWePKwSnxQK96KTX8T5/), which it picked up this year. 

__Post-work drinks…__ over Two-Buck Chuck. Since 2017 Bumble has nearly doubled its market share, but the brand is starting to see weaker spend from younger users on perks like unlimited swipes and extended matches. It’s a theme: this year nearly a quarter of millennials and nearly as many Gen Zers say they’ve gone into debt from splurging on dates, a recent survey [found](https://www.cnbc.com/2022/10/10/millennials-going-into-debt-from-dating-lendingtree.html). Still: 

- __Tinder owner [Match Group](https://robinhood.com/stocks/MTCH/)__ beat expectations last week thanks to its diverse portfolio of 20+ e-romance businesses, including Hinge, which last month saw record downloads.
- __But Match also warned__ that the gloomy economy was weighing on discretionary app spend and hurting Match brands that serve swipers with lower incomes.

Infla-date

__Finding a date is only half the equation…__ Inflation is forcing people to be thriftier — both with how they *find* dates and what they *spend* on dates. Nearly half of Gen Zers and millennials are having more budget-friendly meetups (think: walks, coffee dates), another survey [found](https://nypost.com/2022/11/04/infla-dating-is-making-cheap-dates-trendy/). As more singles prioritize IRL experiences over swipe sessions, $3 lattes could win over $3 extra swipes.

Bumble’s dating boom slows as zillennial users cut swipey spend (and choose cheaper dates)

- __🤔 Sus…__ After __FTX__ imploded, a WSJ source said the crypto exchange [secretly lent](https://www.wsj.com/articles/ftx-tapped-into-customer-accounts-to-fund-risky-bets-setting-up-its-downfall-11668093732?mod=hp_lead_pos5) over half its customers' funds to its sister trading firm, __Alameda Research__, forcing FTX to suspend withdrawals as customers rushed to get their money back. And…
- __🔎 Sleuthy…__ While Bahamas-based FTX crumbles, the SEC is [investigating](https://www.wsj.com/articles/sec-investigates-crypto-platform-ftx-11668020379) FTX’s separate US subsidiary. The commission is said to be looking into whether FTX.us sold unregistered securities — in addition to FTX's handling of Americans' money. 
- __📜 Policy…__ Before the FTX fiasco, lawmakers had been [working](https://www.protocol.com/fintech/crypto-lobbying-binance-ftx) with CEO Sam Bankman-Fried to shape industry-friendly crypto regulation like the Digital Commodities Consumer Protection Act. Any collab may now be toast as elected officials eye the fallout.

REKTX

The Crypto Catch-Up…

About half of America’s 19M veterans are employed full time in the civilian workforce today

👄 Amazon’s Alexa ache

__The best-laid plans…__ still require due diligence. About 24 hours after the world's largest crypto exchange said it would acquire its collapsing rival, Binance said the deal to purchase FTX [was off](https://www.wsj.com/articles/binance-is-said-to-be-likely-to-walk-away-from-deal-to-buy-ftx-11668020963). One possible reason: Binance got a look at FTX's books and spotted a reported [shortfall](https://www.wsj.com/articles/binance-is-said-to-be-likely-to-walk-away-from-deal-to-buy-ftx-11668020963) of up to $8B. The about-face sent crypto markets tumbling (again):

- __Blockdrain:__ Yesterday __[bitcoin](https://robinhood.com/crypto/BTC/)__ fell under $16K to a two-year low as the fleeting hope that FTX would get bailed out dissipated. 
- __Faultcoins:__ Altcoins weren't spared from the FTX-odus. __[Ether](https://robinhood.com/crypto/ETH/)__, __[dogecoin](https://robinhood.com/crypto/DOGE/)__, and __[XRP](https://robinhood.com/crypto/XRP/)__ all dropped more than 14%.
- __It's unclear__ if (or when) FTX customers will get their money back. FYI: FTX’s US biz, which makes up 5% of its revenue, wasn't part of the planned deal. 

__Decentralized déjà vu…__ With Binance out, FTX could be on the verge of bankruptcy. Crypto followers might feel like they’ve seen this show before: over the past year, crypto lenders including Celsius have declared bankruptcy. Earlier this year FTX founder Sam Bankman-Fried (aka SBF) bailed out companies like __BlockFi__ and __Voyager__ that were felled by crypto winter. The industry once viewed SBF as its "white knight" riding in to save companies. Now SBF’s own company may need saving.

Binance CEO Changpeng Zhao takes center stage (Antonio Masiello/Getty Images)

Whiplash

__The aftershock could be bigger than the quake…__ Plunging crypto prices turn heads, but SBF's and FTX's sudden unraveling presents a larger reputational problem for crypto. The 30-year-old CEO (and political mega donor) was the face of crypto lobbying efforts on Capitol Hill. With so much regulation up in the air, FTX's implosion might sour crypto-friendly lawmakers. But if it leads to clearer US crypto regulation, it could benefit investors and ultimately fortify the industry's reputation.

Binance abandons its FTX takeover plan as crypto reels from the whiplash

__The Mario-verse is growing…__ The world’s most popular plumber is making money moves: __[Nintendo](https://robinhood.com/stocks/NTDOY/)__ [lifted](https://apnews.com/article/business-japan-shootings-education-3e4489d26cf21721fd7d58d6e80d4e64) its annual earnings forecast this week after reporting a 34% increase in quarterly profits. The Japanese gaming icon said chip shortages were still cutting into sales of its popular Switch console, but revealed Super Mario-sized plans to expand *beyond* video games:

- __Flipping a Switch:__ This week Nintendo partnered with mobile-game biz __DeNA__ to launch Nintendo Systems, a joint venture to smartphone-ize Nintendo’s console-focused biz.
- __Mario mania:__ Nintendo’s making Mario spin-offs to “build a relationship” with new fans: “The Super Mario Bros. Movie” (feat. Chris Pratt’s [funny voice](https://www.youtube.com/watch?v=iZg0yGQLSac)) debuts in April, and Super Nintendo World opens in Hollywood next year (one opened in Japan last year).

__Game Boy Advance(ing)…__ Nintendo’s expansion comes as the broader gaming industry slows: __[Roblox](https://robinhood.com/stocks/RBLX/)__ and __[Take-Two](https://robinhood.com/stocks/TTWO/)__ shares tumbled this week after both reported unexpectedly big losses. As the lockdown gaming boom fades, __[EA](https://robinhood.com/stocks/EA/)__ and others are also struggling to keep momentum. But Nintendo has a cheat code: Japan’s weak yen means Nintendo is earning *more* yen from overseas sales, after currency conversions (think: 1 USD now = more yen). __[Honda](https://robinhood.com/stocks/HMC/)__ has also benefited. It’s the *opposite* of what’s happening to US companies who do biz abroad.

Peachy

__Mario is getting the Mickey treatment…__ because IP is a terrible thing to waste. Just ask __[Disney](https://robinhood.com/stocks/DIS/)__: the House of Mouse has proved that popular characters can successfully spin off into toys, sequels, merch, theme parks, and cruises. If Nintendo succeeds in transforming the Mario-verse into a park and media empire, it might be able to offset any gaming weakness — and pave the way for a Princess Peach sequel.

From movies to theme parks, Nintendo expands its Mario-verse to boost revenue as Switch sales slow

LA just experienced record rainfall of over 1.4 inches, beating the previous record set in 1998

👋 Binance walks away from FTX

__Sam Smith remix on loop…__ a __TikTok__ loop, that is. As TikTok turns more tunes into viral hits, the world’s biggest music labels have taken note. Yesterday, Bloomberg reported that Universal Music, __[Sony Music](https://robinhood.com/stocks/SONY/)__, and __[Warner Music Group](https://robinhood.com/stocks/WMG/)__ want TikTok to pay up to 10X more in license royalties — and share its lofty ad revenue with them. And negotiation time is ticking as contracts near expiration. 

- __Trending up:__ TikTok raked in $4B in revenue last year and is on track to triple that this year as advertisers keep flocking to it. 
- __Trending down:__ Back in 2020 labels were OK receiving a flat fee for TikTok to use their extensive music catalogs. But now that it has 1B+ users — and countless music-backed videos — labels want more $$ when their artists’ songs are used.

__Running up that hill…__ As TikTok’s popularity has grown, so has its ability to turn tracks into chart-topping tunes. Now labels have started relying on the addicting app to promote new artists and singles, and with good reason:

- __HotTok:__ Last year 175+ songs that trended on TikTok charted on the Billboard Hot 100, double the number from 2020.
- __Nearly half__ of active TikTok users pay for a music subscription like __[Spotify](https://robinhood.com/stocks/SPOT/)__ or __[Apple Music](https://robinhood.com/stocks/AAPL/)__, versus just a quarter of the general population.

“Juicy” revenue opportunity (Rich Fury/Getty Images)

Looped

__Musical attention spans are shrinking...__ but music’s presence is expanding. In the ’80s, people were listening to albums beginning to end. Then single-song streaming took over, and now tracks are featured in everything from 30-second cooking clips to games like Fortnite. TikTok has modeled itself as more of a promo tool and *doesn’t* pay labels with the same revenue breakdown as Spotify or YouTube. But while TikTok needs the music industry, the industry increasingly needs TikTok.

From Sony to Universal Music, the largest record labels want a bigger cut from TikTok as the app becomes a hit-maker

__Ubering to the polling place…__ Investors didn’t cast a vote of confidence for __[Lyft](https://robinhood.com/stocks/LYFT/)__ yesterday. Shares of __[Uber’s](https://robinhood.com/stocks/UBER/)__ smaller, pinker rival tumbled 23% as investors reacted to its quarterly earnings. Lyft beat on profit expectations, but fell slightly short of Wall Street’s revenue forecast. 

- __Lyft’s #s were solid,__ but investors [expected](https://www.barrons.com/articles/lyft-earnings-disappoint-51667858128) a big beat based on Uber’s results last week — and we all know how important expectations are with investing.
- __Pricing up:__ Lyft’s revenue rose 22% from last year, to a record $1B, thanks to record *prices*. Revenue per rider surged to $52 as long trips and airport rides rebounded. 
- __Cutting down:__ Last week Lyft announced it was laying off 13% of its employees (700 people) as its net loss for the quarter quadrupled to $422M. 

__A tale of two strategies…__ Lyft’s mission is to “improve people’s lives with the world’s best transportation,” but Uber has diversified beyond urban mobility. While ride-hail majorly rebounded, Uber’s *delivery* business made up half of its gross bookings last quarter (think: Uber Eats). Its Freight biz, which connects semitruck drivers with high-volume loads, quadrupled its revenue to $1.7B. That means that Uber’s Freight division alone makes more money than Lyft as a whole.

Duopoly

__Your worst enemy is your best comparison…__ In the ride-hail duopoly, Uber and Lyft constantly compete as riders toggle between the two apps. Even though they’re two different companies, Lyft tanked as investors compared it to Uber, whose results had raised expectations for its rival. In industries with a few dominant players, the biggest competitors can’t escape these comparisons. The next frontier Uber and Lyft will be competing on: [ads](https://snacks.robinhood.com/newsletters/74zHu2wNENpA7EgJyuw9OM/articles/7aqUbrU41BN6Q7GgITCtKZ/).

Lyft shares plunge 23% as investors compare its record revenue (and growth strategy) to Uber’s

From Sony to Universal Music, record labels look to TikTok as the app becomes a hit-maker

Midterm campaign spending is expected to exceed $16.7B this year — $3B more than in 2018

🎶 Labels come for TikTok

__An iPhone under the Christmas tree…__ may be harder to come by this holiday season. __[Apple](https://robinhood.com/stocks/AAPL/)__ [warned](https://www.reuters.com/technology/foxconn-revises-down-q4-outlook-zhengzhou-covid-woes-2022-11-06/) of lower iPhone shipment volumes for the year as production snags dampen its outlook. It’s reportedly expecting to churn out at least [3M](https://www.bloomberg.com/news/articles/2022-11-07/apple-trims-new-iphone-output-by-3-million-units-as-demand-cools) *fewer* iPhone 14s than previously anticipated. The hardware heavyweight began selling its iPhone 14 line in September, but sales have swiftly cooled. Two reasons: 

- __Underwhelming demand:__ Consumers aren’t splurging as much on fancy gadgets, which explains weaker demand for Apple’s pricey Pro offerings. Last month Apple reported record quarterly sales, but iPhone revenue was softer than expected. 
- __Overwhelming rules:__ China’s zero-Covid policy has [messed with](https://www.reuters.com/technology/foxconn-revises-down-q4-outlook-zhengzhou-covid-woes-2022-11-06/) Apple’s production this year. The latest snafu: the main iPhone assembly site, in Zhengzhou (aka: “iPhone City”), is under a weeklong Covid shutdown. Apple said customers should expect longer wait times. 

__Everybody talks…__ Last week there were rumors flying about when China would end its strict Covid restrictions (think: [locking visitors](https://www.cbsnews.com/news/shanghai-disneyland-closed-covid-china-visitors-locked-in-park-for-testing/) inside __[Disneyland](https://robinhood.com/stocks/DIS/)__). Chinese stocks surged on speculation that authorities could lift some measures earlier than expected. The rumor mill may’ve boosted some US stocks, too, since so much production depends on China. Now investors aren’t so optimistic: on Sunday China reported its highest # of new Covid infections in six months (4.4K). Chinese health officials said they would stick with their strategy.

iMessage from Santa: “I might be late” (George Frey/Getty images)

Unboxed

__No one puts China in a corner…__ except maybe China. The world’s second-largest economy is putting blockers in front of its own growth, and fourth-quarter GDP is already hitting [speed bumps](https://www.reuters.com/world/china/chinas-q4-gdp-hits-early-speed-bump-covid-stifles-economy-2022-10-25/) as Covid rules depress demand and productivity. But the US and corporate titans like Apple can’t just brush that off as a “China problem.” Since the US imports more from China than any other country, it’s an *everyone* problem — that only China can tackle.

iPhone production is expected to take a holiday hit as China’s Covid rules continue to mess with supply

__Backup plan = beer...__ Cannabis companies have been waiting for US federal regulators to legalize marijuana, and now they’re having a (few) drinks while they bide their time. Yesterday Canadian cannabis giant __[Tilray](https://robinhood.com/stocks/TLRY/)__ [bought](https://www.globenewswire.com/news-release/2022/11/07/2549865/0/en/Tilray-Brands-Acquires-Montauk-Brewing-Company.html) NYC’s top craft brewer __Montauk Brewing Co.__. 

- __Big swigs:__ Montauk is sold in 6K+ stores, including __[Target](https://robinhood.com/stocks/TGT/)__, Whole Foods, Trader Joe's, __[Costco](https://robinhood.com/stocks/COST/)__, and __[Walmart](https://robinhood.com/stocks/WMT/)__. It joins beer maker SweetWater and bourbon brand Breckenridge Distillery in Tilray’s growing beverage portfolio.
- __Two cans with one stone:__ Tilray said the purchase would boost profitability. But it serves another purpose: Tilray plans to leverage Montauk’s US distribution network (and customers) to start selling canna-beverages nationwide as soon as they’re legal.

__Stuck in the weeds…__ Recreational cannabis is legal in 19 states and DC — and five more states are voting *today* on whether to greenlight it. But since cannabis still isn't *federally* legal, many canna-companies are struggling to build national distribution networks. 

- __Impatient partners:__ Bud brewer __[AB-InBev](https://robinhood.com/stocks/BUD/)__ ended a two-year partnership with Tilray this year after waiting for legalization. Meanwhile, drink giants __[Constellation](https://robinhood.com/stocks/STZ/)__ and __PBR__ have launched their own canna-beverages in smaller markets.
- __Placeholder products:__ Pot rival __[Canopy Growth](https://robinhood.com/stocks/CGC/)__ has launched non-cannabis lines, like a skincare biz and sports-drink brand, to prep for legalization (think: eventually infusing moisturizer with CBD).

__The star player is on the sidelines…__ While Tilray, __[Aurora Cannabis](https://robinhood.com/stocks/ACB/)__, and Canopy posted overall losses last quarter, Tilray’s smaller non-canna brands are already profitable — and Tilray expects positive cash flow by the end of the year (FYI: Aurora reports Thursday). But the cannabis industry’s main attraction (cough, cannabis) could spur rapid growth when it gets in the game: the market is forecast to grow from roughly $1B last year to $19B by 2028.

Cannabis giant Tilray bets big on boozy beverages as it waits for broad US legalization

*⚾ When Little League underdogs take on Major League players…*

Crypto winter has hit hard, with bitcoin down 56% this year. But analysts (and crypto __[Twitter](https://robinhood.com/stocks/TWTR/)__) are starting to whisper about a possible "alt szn" as altcoins like __[dogecoin](https://robinhood.com/crypto/DOGE/)__ and __[matic](https://robinhood.com/crypto/MATIC/)__ have seen outsized gains relative to BTC over the past month. Possibly boosting alts: Elon Musk and Instagram NFTs.

Heard on the Block: “alt season”

Apple's iPhone production is expected to take a holiday hit as China’s Covid curbs continue

For the first time, lab-grown blood has been transfused into humans

🎄 iPhone’s sad holiday

__Buying a cherry-red smile…__ but the outlook is more matte than glossy. Beauty titans are often shielded during economic downturns thanks to the so-called lipstick effect. In gloomy times, cash-stressed consumers can’t afford big-ticket items, so they console themselves by indulging in small luxuries (think: $38 Dior Lip Glow). 

- __$20 gloss > $200 hydrafacial:__ As the US economy shrank in the first quarter, lipstick sales jumped 48% from last year (2X as fast as other beauty products). 
- __Lip*stuck*:__ But now even cosmetics giants are [struggling](https://www.bloomberg.com/news/articles/2022-10-29/-lipstick-effect-starts-fading-for-consumer-beauty-groups?sref=q3KSFp38) to cover up ugly economic effects. 

__Losing luster…__ Last week __[Estée Lauder](https://robinhood.com/stocks/EL/)__ said its quarterly makeup sales fell 10%, and it lowered its outlook on weakening demand. Rival __L’Oréal__ reported slowing growth as its profit-puppy luxe division (think: __[Prada](https://robinhood.com/stocks/PRDSY/)__, Lancôme) underperformed. FYI: Cover Girl owner __[Coty](https://robinhood.com/stocks/COTY/)__ reports next week. But while consumers are cutting back on makeup, spending *rose* more than expected in September as Americans splurged on “experiential” indulgences. 

- __Travel go-tos__ are booming. __[Airbnb](https://robinhood.com/stocks/ABNB/)__ reported its best quarter ever last week while __[Marriott](https://robinhood.com/stocks/MAR/)__ joined __[Hilton](https://robinhood.com/stocks/HLT/)__ in lifting its annual forecast. __[Booking’s](https://robinhood.com/stocks/BKNG/)__ profit more than doubled. 
- __Chains__ including Burger King, __[Starbucks](https://robinhood.com/stocks/SBUX/)__, and KFC and Taco Bell owner __[Yum Brands](https://robinhood.com/stocks/YUM/)__ had robust sales growth as Americans opened their wallets for premium items like PSLs. 
- __Big food staples__ like __[Kellogg](https://robinhood.com/stocks/K/)__, __[Pepsi](https://robinhood.com/stocks/PEP/)__, and __[Kraft](https://robinhood.com/stocks/KHC/)__ have reported strong sales this season as consumers kept stocking Frosted Flakes and Cheetos despite price hikes. Booze big shots like Smirnoff maker __[Diageo](https://robinhood.com/stocks/DEO/)__ have also proved resilient.

Passing on the $30 lip glow (Budrul Chukrut/Getty Images)

Ungloss

__Consumers are in “bite or flight” mode…__ While the economy's in stressful fight-or-flight mode, some Americans are finding solace by indulging in brand-name treats (bites) or getaways (flights). Despite broad price hikes, a lot of consumers are still shelling out for Whoppers and Airbnb glamping weekends. We might need to kiss the lipstick effect goodbye, because the seemingly “protected” categories during this downturn appear to be experience-based.

The “lipstick effect” is fading for cosmetics giants as consumers find comfort in experiential splurges

__A whole new world…__ While streaming entertainment powered __[Disney](https://robinhood.com/stocks/DIS/)__ through the pandemic, real-life entertainment is propelling growth now. Revenue for the first nine months of the year was up 28% as US parks and resorts recovered and is expected to be up 25% for the year (Disney reports tomorrow). With Disney+, Hulu, and ESPN+, Disney surpassed __[Netflix’s](https://robinhood.com/stocks/NFLX/)__ total subs in August but lowered its 2024 forecast for Disney+ as growth slows. If the streamer hadn’t added 9M subs last quarter, as expected, investors might be bummed despite Disney's strong overall growth. 

__Insert (more) coins to continue...__ Gaming behemoths are struggling to beat their own high scores as the pandemic video-game boom slows. In the second quarter, NBA 2K maker __[Take-Two Interactive](https://robinhood.com/stocks/TTWO/)__ and tween fave __[Roblox](https://robinhood.com/stocks/RBLX/)__ fell short of quarterly earnings expectations after reporting fewer new gamers. Meanwhile, __[Microsoft’s](https://robinhood.com/stocks/MSFT/)__ $70B purchase of __[Activision](https://robinhood.com/stocks/ATVI/)__ — which makes Call of Duty — remains stalled in a lengthy regulatory review. Analysts expect earnings to keep falling when Take-Two and Roblox report this week, but revenues are forecast to rise as in-game spending stays strong.

__“The future of [Twitter](https://robinhood.com/stocks/TWTR/)”…__ Every Twitter thread last week. ICYMI: Elon Musk now runs Twitter (in his [words](https://www.ft.com/content/b0b49bc2-9d6e-4e0d-8962-a0f60185947c): “the bird is freed”). Top execs have left the company and advertisers are [skittish](https://www.nytimes.com/2022/11/01/technology/elon-musk-twitter-advertisers.html). After __[GM](https://robinhood.com/stocks/GM/)__ paused Twitter campaigns, ad giant __[IPG](https://robinhood.com/stocks/IPG/)__ recommended its clients pause their spend too. Meanwhile, Elon seems focused on cutting costs and boosting *non*-ad revenue: On Friday, Twitter laid off half its employees, and over the weekend started rolling out an $8/month charge for blue check marks. There are *many* opinions about the Twitter-quisition, but only time will tell if it’ll help the embattled platform rise or [sink](https://twitter.com/elonmusk/status/1585341984679469056). 

__Giving mixed signals…__ US employers added 261K jobs in October, and there are roughly two open jobs for every unemployed worker (a sign the Fed’s hikes aren’t cooling the economy enough). But job growth slowed and unemployment ticked up to 3.7%. Microsoft, Netflix, __[Snap](https://robinhood.com/stocks/SNAP/)__, and __[Meta](https://robinhood.com/stocks/META/)__ are laying off employees, and __[Amazon](https://robinhood.com/stocks/AMZN/)__ and (reportedly) __[Apple](https://robinhood.com/stocks/AAPL/)__ have frozen corporate hiring. Last week __[Lyft](https://robinhood.com/stocks/LYFT/)__ and __Stripe__ also announced cuts. Non-tech industries may also slow: last week __[Ford](https://robinhood.com/stocks/F/)__ offered buyouts to underperformers.

- __[#Phygital](https://snacks.robinhood.com/newsletters/1ynCBzQDGgEJsiGkLyJv9w/articles/1Xt7kCVMDfQvV1HNDwCAk8/):__ __[Ralph Lauren](https://robinhood.com/stocks/RL/)__ and Epic Games announced a Fortnite fashion collection. The collab is *both* physical and digital, living in closets and in Fortnite avatars. It could help the preppy retailer gain younger fans.
- __[BnBest](https://snacks.robinhood.com/newsletters/4AlGzt3G5mcKHojU0cyOhI/articles/6S5Z7Rvu6WBZMnP9acC1PJ/):__ Airbnb is on top of the world (and can maybe rent you a yurt there). By embracing WFH trends, the rental platform posted its best quarter as consumers seek IRL experiences in an always-online world. 
- __[Scored](https://snacks.robinhood.com/newsletters/18Ma3zsD9SAGoOFKeiDGMH/articles/6jMEWWVI423VNgMxo70CFX/):__ __[Dick’s Sporting Goods](https://robinhood.com/stocks/DKS/)__ launched a $50M venture-capital fund to invest in sports-related startups. Corporate VC is booming, with companies from __[Google](https://robinhood.com/stocks/GOOGL/)__ to __[GE](https://robinhood.com/stocks/GE/)__ to __[J&J](https://robinhood.com/stocks/JNJ/)__ building major funds.

The “lipstick effect” fades for cosmetics giants as consumers find comfort in experiences

The first country to give women the right to vote was New Zealand in 1893

💄 The new “lipstick effect”

__From soccer cleats to term sheets…__ __[Dick’s Sporting Goods](https://robinhood.com/stocks/DKS/)__ just joined the big leagues of a new sport: venture capital. Yesterday the retailer [launched](https://www.bloomberg.com/news/articles/2022-11-03/dick-s-sporting-goods-dks-starts-50-million-venture-capital-fund) a $50M VC fund called DSG Ventures. Dick’s plans to use the in-house fund to invest in new sports products and tech.

- __The first investment round__ includes women’s-sneaker brand __Moolah Kicks__, sports-gear marketplace __SidelineSwap__, and youth sports biz __EL1 Sports__.
- __#SportsSynergy:__ DSG Ventures plans to also offer *non*-financial support, like distribution through Dick’s stores — a win for both Dick’s *and* the startups it invests in.

__Everyone’s a (venture) capitalist…__ An old-school sporting-goods chain might seem like an unlikely source of VC funding, but corporate venture capital (aka: CVC) has a long history. Chemical giant __[DuPont](https://robinhood.com/stocks/DD/)__ became the first big CVC when it invested in fledgling automaker __[General Motors](https://robinhood.com/stocks/GM/)__ in 1917. 

- __Very big:__ Since then, titans like __[Google](https://robinhood.com/stocks/GOOGL/)__, __[Intel](https://robinhood.com/stocks/INTC/)__, __[GE](https://robinhood.com/stocks/GE/)__, and __[J&J](https://robinhood.com/stocks/JNJ/)__ have become major CVC players. In 2020, CVCs invested more than $70B — a quarter of all VC funding that year.
- __Very varied:__ Corporate VC arms exist across lots of industries, including construction (__[Caterpillar](https://robinhood.com/stocks/CAT/)__), convenience (__[7-Eleven](https://robinhood.com/stocks/SVNDY/)__), travel (__[United Airlines](https://robinhood.com/stocks/UAL/)__), and meat (__[Tyson](https://robinhood.com/stocks/TSN/)__). This year even crypto exchange __FTX__ launched a $2B VC fund.

Kayaking to the pitch meeting (Craig Warga/Getty Images)

__VC can act as discounted R&D…__ Instead of spending big to develop new products and tech, corporations can invest in smaller companies that’ve already created them. That could yield financial benefits like IPO returns and strategic wins like product partnerships. __[General Mills’](https://robinhood.com/stocks/GIS/)__ VC arm helped launch __[Beyond Meat](https://robinhood.com/stocks/BYND/)__, and Google Ventures backed __[GitLab](https://robinhood.com/stocks/GTLB/)__, Slack, __[DocuSign](https://robinhood.com/stocks/DOCU/)__, and __[Toast](https://robinhood.com/stocks/TOST/)__. Dick’s hopes to do the same with sporting goods, but it’ll be up against __[Nike](https://robinhood.com/stocks/NKE/)__, __[Adidas](https://robinhood.com/stocks/ADDYY/)__, and __[Under Armour](https://robinhood.com/stocks/UA/)__ — all of which have VC divisions.

Dick’s Sporting Goods debuts a $50M fund as the VC-fication of corporate America continues

__Decentralized pain…__ Crypto financial services firm __Galaxy Digital__ is [reportedly](https://www.bloomberg.com/news/articles/2022-11-01/novogratz-s-galaxy-digital-explores-workforce-cuts-of-about-20) considering cutting one-fifth of its staff as crypto winter's freeze sets in. Galaxy is seen as a bellwether for the industry because its business services __[bitcoin](https://robinhood.com/crypto/BTC/)__ miners and crypto traders, and it invests in blockchain projects like __[polygon](https://robinhood.com/crypto/MATIC/)__. Galaxy's not alone in its cuts:

- __Bit-axed:__ This week, crypto exchange __BitMex__ announced layoffs of up to 30%.
- __Sadder:__ Web3 studio __Dapper Labs__ said it's cutting 22% of its 600-person team.
- __DCGone:__ Crypto conglomerate (and CoinDesk parent) __DCG__ laid off 10% of staff.

__Misery loves coin-pany…__ and this party's crowded. It's not just *crypto* fintechs feeling the squeeze of record inflation and spiking interest rates. __Stripe__ announced yesterday that it'll lay off 14% of its workforce. Layoffs are often *forward*-looking — a sign that companies expect more slowing growth or falling earnings. This week the cofounder of __[Tezos](https://robinhood.com/crypto/XTZ/)__, a proof-of-stake blockchain, said crypto winter is "only going to get worse." More cost cuts could be coming. 

DeFi

__The future of finance is still tied to the present…__ Crypto companies want to revolutionize the financial system with decentralized finance (DeFi). In the meantime, those companies are still accountable to investors, boardrooms, and centralized finance (CeFi) realities. Since crypto is still viewed by many primarily as an *investment* opportunity (*not* a transactional currency), the industry has to deal with today's rising interest-rate reality that’s dampened demand.

Crypto firms like Galaxy Digital eye layoffs as DeFi dreams struggle with CeFi realities

- __🖼️ Showy…__ Instagram's got the NFT bug. The __[Meta](https://robinhood.com/stocks/META/)__-owned platform said some users can now [mint](https://www.coindesk.com/web3/2022/11/02/instagram-users-will-soon-be-able-to-mint-and-sell-nfts/) and sell NFTs. But Meta didn't launch its own blockchain — at least to start, any selfie NFTs will live on polygon. 
- __📸 Flashy…__ Hello, 401(k)rypto? A [survey](https://www.cnbc.com/2022/11/01/schwab-nearly-half-of-gen-z-and-millennials-want-crypto-in-401ks.html) of millennials and Gen Zers with 401(k)s found nearly half wish they could incorporate crypto into their retirement account. __[Fidelity](https://robinhood.com/stocks/FNF/)__ moved to include bitcoin in some 401(k)s this year. 
- __🤖 Techy…__ __[Twitter](https://robinhood.com/stocks/TWTR/)__ may be crypto's social home, but __Kraken's__ vying for real estate. A subsidiary of the crypto exchange [launched](https://www.protocol.com/bulletins/kraken-cryptowatch-social) a new platform dubbed Cryptowatch Social. Think: BTC price charts with built-in viral sharing.

Social

Dick’s Sporting Goods debuts a $50M fund as corporate America’s VC-fication continues

Yesterday Apple was worth more than Google, Amazon, and Meta combined

💸 Corporate America’s VC-fication

__Weekend in the treehouse yurt…__ __[Airbnb](https://robinhood.com/stocks/ABNB/)__ has doubled down on quirky lodging like tiny homes, desert RVs, and castles. That focus on “experiential” stays appears to be paying off: the rental platform posted its [best](https://skift.com/2022/11/01/airbnb-posts-best-quarter-yet-on-relentless-travel-demand/) quarter ever as travel demand stays hot. 

- __Record revenue *and* profit:__ Sales spiked thanks to a record 90M guest arrivals and 100M “nights and experiences” booked. Earnings surged 46% from last year to $1.2B. 
- __Yet:__ Airbnb shares have fallen 13% since it reported Tuesday, after it issued slightly lower-than-expected guidance for this holiday quarter. 

__Zooming in from a Portuguese windmill…__ If there’s WiFi, *how would they know?* These latest numbers show that Airbnb continues to be one of the best pandemic comeback stories. Airbnb’s biz was crushed when the pandemic hit, but it quickly embraced the WFH life and revamped its platform to complement changing travel trends. It’s using the new norm of flexible work to its advantage: 

- __CEO Brian Chesky__ said that despite return-to-office requirements, 20% of Airbnb’s total nights booked remain long-term stays (think: a month or longer). 
- __Wow-worthy stays:__ Last month, Airbnb made a $10M [investment](https://www.fastcompany.com/90795952/airbnb-just-invested-10-million-in-100-absurd-buildings) to build 100 absurd accommodations, from a floating avocado abode to a giant cheese wedge.

Sea suite (Chesnot/Getty Images)

Yurt

__Real-life experiences are rarer than ever…__ In a society where socializing means chatting online and shopping means browsing the web, IRL experiences have newfound value. Chesky said: “Because the mall is now __[Amazon](https://robinhood.com/stocks/AMZN/)__, the movie theater is now __[Netflix](https://robinhood.com/stocks/NFLX/)__, people still want to get out of the house.” While consumers are cutting back in some areas, they’re still splurging on experiences. Yesterday, Kayak owner __[Booking](https://robinhood.com/stocks/BKNG/)__ reported that quarterly profit more than doubled from last year as travel bookings surged. Airbnb rival __[Vacasa](https://robinhood.com/stocks/VCSA/)__ is set to report next week.

Comeback kid Airbnb has its best quarter ever as IRL experiences become a rare commodity

__8 MVPs, 1 pop star…__ Tiger Woods’ latest venture has a [stacked](https://www.cnbc.com/2022/11/02/serena-williams-justin-timberlake-invest-in-tiger-woods-new-venture.html) roster of A-list investors. In August, Woods and fellow pro golfer Rory McIlroy launched __TMRW Sports__, a biz aimed at techifying sports entertainment. Yesterday we learned that Steph Curry, Serena Williams, F1 champ Lewis Hamilton, and Justin Timberlake are among TMRW’s newest backers. One of TMRW's first ventures is a new golf league — and it’s teeing up big buzz.

- __[Topgolf](https://robinhood.com/stocks/MODG/) for the pros:__ Starting in 2024, six teams of three PGA players will compete in 18-hole matches at a custom tech-infused arena ([think](https://twitter.com/TGL/status/1562483830933450753?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1562483830933450753%7Ctwgr%5E579878cb09c39c76bcd610454511f0c56f6059a6%7Ctwcon%5Es1_&ref_url=https%3A%2F%2Fwww.sportingnews.com%2Fus%2Fgolf%2Fnews%2Ftgl-tiger-woods-rory-mcilroy-new-golf-league-explained%2Fjgniybbnu6yzndakyxlmlbay): a stadium-size golf simulator).
- __FYI:__ Last year golf-related sales boomed thanks to the sport’s socially distant popularity, with brands like Callaway and Titleist notching record earnings.

__Not your dad’s golf channel…__ Golf is gaining entertainment value as big players drive innovation. TMRW’s launch comes as the new Saudi-backed LIV Golf tour [lures](https://snacks.robinhood.com/newsletters/2n1tfbP2sL0dLHd6d2tSbw/) PGA players and fans with bigger prizes, looser schedules, and flashy festival-style tournaments. Meanwhile, Callaway-owned Topgolf's party-style atmosphere and accessible simulator tech have lured Zillennials (over half of its visitors have never played golf before).

Swing

__Big players can change the game…__ because often they *are* the game. Tiger and his celeb-vestors want to use features like real-time stats and indoor arenas to attract younger fans and families to the old sport. Down the road, TMRW wants to expand into sports beyond golf. Meanwhile, soccer superstar Lionel Messi recently launched his own firm to invest in sports, media, and tech. 

From Serena Williams to Steph Curry, stars are backing Tiger Woods' venture to techify sports entertainment

Airbnb has its best quarter ever as IRL experiences become a rare commodity

Google searches for realistic excuses to skip work hit 2M this year, up from 300K in 2018