__Insta-worthy fit…__ for less than $10. After years of explosive growth, *ultra*-fast-fashion titan __Shein__ is laying out lofty sales goals in preparation for a potential IPO this year. Shein became America’s largest fast-fashion brand thanks to its online offering of endless trendy clothes at super-low prices (think: 6K new styles listed *each day*). Now Shein could become the largest Chinese company ever to list in the US — its #1 market. 

- __New fit:__ In an investor presentation last week, Shein said it was aiming to double its annual sales to nearly $60B by 2025. FYI: that’s more than __H&M__ and __Zara’s__ yearly sales *combined*. 
- __Loose thread:__ Analysts say Shein’s goal could be a stretch, since it would need to get more repeat customers and sell pricier pieces (think: $30 blouse vs. $3 tank). 

__From A to Gen Z…__ Shein became a go-to for young adults thanks to viral __TikTok__ [hauls](https://theweek.com/feature/briefing/1016752/the-real-cost-of-fast-fashion) and influencer endorsements. During the pandemic, its valuation soared from $10B to $100B in two years (but recently dropped to $65B). The novelty of endless cheap clothing scrolling is starting to wear off. Shein’s sales have fallen for six out of the past seven months, and last year it posted its first annual loss since the pandemic.

- __Interest down:__ Online searches for Shein and other fast-fashion faves like __Pretty Little Thing__ and __Fashion Nova__ have tumbled since last fall.
- __Competition up:__ This month Shein’s China-owned rival, __Temu__, became the most downloaded app in the US (topping Walmart and Amazon) after its [Super Bowl ad](https://www.youtube.com/watch?v=RgNuwb9lpeg).

Hit refresh for a Gen Z style overload (Jakub Porzycki//Getty Images)

OOTD

__Cheap is easy to sell, but easier to unravel…__ Gen Z is more open to embracing new brands than other generations, but keeping its attention is hard. Plus, young shoppers are increasingly concerned about the environmental effects of their purchases. That could be bad news for unsustainable fast-fashion brands like Shein, which has been in hot water for contributing to millions of tons of carbon emissions — and has received scrutiny for labor-law violations.

Shein is stitching up a blockbuster IPO, but a fast-fashion slowdown could unravel the plan

__Thursday = the new Friday...__ The four-day workweek is #trending after positive [results](https://snacks.robinhood.com/newsletters/44zd3IQT0JJbWiGwxhlAOc/articles/12KrqK3ZznsRULbKmOL0Go/) from one of the largest trials ever conducted of the concept. The vast majority of companies in the six-month UK study said they’d stick with four-day weeks after seeing major reductions in turnover, happier employees, and mostly steady productivity. Employers in the US, Canada, Australia, Brazil, and other countries are also testing it out. Most companies that have experimented with short weeks are small, but four-day work could become a hot new perk. 

__SCOTUS on YouTube…__ The Supreme Court heard arguments in a case against __Google__ that could decide if tech companies should be liable for content their algos promote. The plaintiffs are the family of Nohemi Gonzalez, an American college student who was killed in a 2015 ISIS attack in Paris. They say YouTube’s recommendations violated anti-terrorism law by helping radicalize viewers. Social giants are protected from being liable for users' posts thanks to Section 230. But now the question of content *promotion* could put some protections in jeopardy.

Zoom out

Stories we’re watching

__Missed the bull’s-eye?…__ __Target__ is expected to report lower sales and profits tomorrow. __Walmart__ unboxed a strong holiday quarter last week as discount seekers flocked to its aisles for essentials like food (groceries = over half of Walmart’s sales). But America’s largest retailer warned that customers are cutting back on higher-margin discretionary items (think: clothes, decor, TVs). That’s even worse news for Target, since discretionary goods make up 60% of its sales. Analysts expect Target’s profit will have dropped by more than half. 

__The doctor will FaceTime you now…__ Telemedicine companies like __Teledoc__, which reported last week, rode the lockdown wave to ballooning growth. But now many IRL doc offices are open and the US government’s Covid emergency declaration is on track to end in May (think: a possible end to video-call Adderall prescriptions). And the shine may be coming off telemedicine's apple. If Teledoc's disappointing forecast is any indication, __Hims & Hers Health__ and __GoodRx__, which report this week, may have reason to call in sick.

Events

Coming up this week

- __[COD](https://snacks.robinhood.com/newsletters/3DpeGe1lyARbnRKJrQl0dF/articles/1NLpPKfmkzaijNqlW1eIyh/):__ Xbox-maker __Microsoft__ struck deals to share some of its top games with rivals __Nintendo__ and __Nvidia__ to win support for its $69B acquisition of __Activision Blizzard__. 
- __[Checkmeta](https://snacks.robinhood.com/newsletters/7njrkTvG6xMWBL9Rp3jjNB/articles/5F00601QGvnAtcX8AWnuoj/):__ __Meta’s__ following __Twitter__ with a blue-check subscription as social giants scramble for *non*-ad revenue. “Meta Verified,” which launched last week, offers Insta and FB app users blue badges for $15/month. 
- __[Scooted](https://snacks.robinhood.com/newsletters/7njrkTvG6xMWBL9Rp3jjNB/articles/1qcuhbwlqr3wvlg1EyIMBh/):__ Electric-scooter startups like __Bird__ and __Helbiz__ have been deeply unprofitable, but __Lime__ said it just became the first micro-mobility company to notch a profitable year thanks to its DIY approach.

ICYMI

Last week's highlights

Dow Jones

S&P 500

Nasdaq

Bitcoin

Raindrops are shaped like hamburger buns, not teardrops

👗 Shein’s IPO runway

__Thursday’s the new Friday?...__ The four-day workweek is #trending. Driving the hype: one of the largest [trials](https://www.wsj.com/articles/after-testing-four-day-week-companies-say-they-dont-want-to-stop-a06089cc) of a four-day workweek ever conducted. In the six-month study, 61 British companies across industries gave 2.9K workers one paid day off each week. The goal: determine whether they could be as productive while working less, but also more *effective* (think: fewer meetings). The results are in — and they’re promising: 

- __More than 90% of companies__ in the study said they’d continue testing the four-day week after seeing major reductions in turnover and absenteeism, in addition to productivity holding mostly steady. And 18 planned to make it permanent.

- __Happy days:__ The pilot found that many workers slept better, were less stressed, and were less likely to say they didn’t have time to care for their loved ones. Male workers spent 27% more time on childcare, compared to a rise of 13% for female workers. 

__Long weekend…__ short week. Four-day-week experimentation isn’t just happening in the UK: companies in the US and Canada recently completed a smaller trial, and pilots are underway in Australia and Brazil. The Spanish government even plans to *pay* companies to try it. But so far, most companies that have experimented with short weeks are small. Many large employers haven’t embraced short weeks, but __[Unilever](https://robinhood.com/stocks/UL/)__ tested four-day work at its New Zealand offices.

Rushing to the three-day weekend (Timothy A. Clary/Getty Images)

Weekender 

__Four days’ work could become the new perk…__ The pandemic transformed the working world, making employers more accepting of flexible arrangements like remote and hybrid work. Four-day weeks could be a new way to attract and retain talent in a still strong labor market. 
But widespread adoption could be hard: it probably wouldn’t work for all businesses, and it’s possible that productivity could go down long term once decisive trial periods end.

The 4-day workweek gains steams as a perk, after positive results from a large trial

__Going hard in the (digital) paint…__ but it's no game. A judge this week [denied](https://www.bloomberg.com/news/articles/2023-02-22/nba-top-shot-nfts-are-securities-judge-says-in-landmark-case) a request from __Dapper Labs__, the maker of NBA-themed NFTs dubbed “Top Shot Moments,” to toss out a lawsuit against it. The suit, brought by Top Shot Moments buyers, alleges that Dapper’s blockchain-based collectibles are securities and therefore should’ve been registered with the SEC. It’s one of the first judicial decisions addressing whether NFTs are securities.

- __Top whats:__ After Moments launched in 2020, the NFT highlight clips found fast success among non-crypto-native collectors.

- __Top whys:__ Collectors could buy Moments with a credit card, no blockchain knowledge required (just a love of b-ball).

- __Top buys:__ Moments have seen $982M in trading volume, with some sought-after NFTs selling for more than $200K.

__On the rebound…__ While crypto winter chilled the already cooling NFT market, it didn't put it on ice. Last month saw $780M in NFT transactions on the __ethereum__ blockchain, up from $547M in December (but way down from *$5B* in January 2022). And Blur, an NFT marketplace that launched in October, has surged in popularity — capturing 40% of NFT retail trades this month. Meanwhile, __[bitcoin](https://robinhood.com/crypto/BTC/)__ hopped on the NFT train with [ordinals](https://snacks.robinhood.com/newsletters/hVxJ5P0UXNj7GiarHRYHR/articles/6h6QfaEiiWIYYTVHHiqAf/). But bubbling NFT hype could be dampened by regulatory scrutiny.

DUNK

__“Fun and games” could get serious…__ While Dapper Labs bills its NFTs as sports collectables, it's not clear if the courts will agree. And although it's no slam dunk, a ruling saying that Top Shot Moments are securities could pressure some crypto businesses to register their NFTs with the SEC and shake up the entire nonfungible industry.

NBA Top Shot heads to court in a case that could classify some NFTs as securities

🌶️ __Spicy…__ Sam Bankman-Fried was hit with *additional* [charges](https://www.coindesk.com/policy/2023/02/23/sam-bankman-fried-hit-with-additional-bank-fraud-charges-in-new-indictment/) this week, including bank fraud and campaign-finance charges. Officials said the former __FTX__ CEO broke donation laws to evade campaign-contribution limits. 

🤹‍♀️ __Quirky…__ A DAO (a crypto community where token holders call the shots) is [angling](https://www.coindesk.com/web3/2023/02/22/linksdao-to-bid-on-scottish-golf-course-following-vote/) to buy a Scottish golf course. The decentralized org, LinksDAO, plans to fund the $900K purchase through NFT sales.

🤖 __Techy…__ __[Coinbase](https://robinhood.com/stocks/COIN/)__ announced it's [launching](https://techcrunch.com/2023/02/23/coinbase-launches-blockchain-base-to-help-developers-build-dapps-on-chain/) a “layer-2” network on top of __ethereum__ with the goal of creating a space for developers to build decentralized apps (“dapps”) on the blockchain.

LINKS

The Crypto Catch-Up…

In the second half of last year, the US housing market had its biggest plunge since 2008, losing $2.3T in value

 📅 4-day workweek?

__Multiplayer mode *on*…__ __[Microsoft](https://robinhood.com/stocks/MSFT/)__ is trying to win friends and influence people. The Xbox maker struck deals to share its gaming treasures with some of its biggest rivals in hopes of pushing its [$69B](https://snacks.robinhood.com/newsletters/4eOJialeY3vTs2AHV0FkZt/articles/5Tuqimhcf73WVRvJ5YTv5C/) __[Activision Blizzard](https://robinhood.com/stocks/ATVI/)__ acquisition across the finish line. Microsoft’s bid to buy the “Call of Duty” maker (which would be the largest tech deal *ever*) has been on ice as regulators and gaming rivals worry the merger would hurt competition. Yesterday Microsoft announced moves to soothe their concerns:

- __Chipper:__ Microsoft said it struck a 10-year partnership with __[Nvidia](https://robinhood.com/stocks/NVDA/)__ to make its Xbox PC games available on Nvidia’s GeForce Now cloud gaming service. Microsoft said Nvidia is now “offering its full support” for the Activision acquisition. 
- __Switch’d on:__ __Microsoft__ also sealed a 10-year deal with __[Nintendo](https://robinhood.com/stocks/NTDOY/)__ to make the newest “Call of Duty” available on its devices at the same time it drops on Xbox (if the acquisition gets approved).

__Thinking outside the Xbox…__ and getting “Minecraft”-y. Microsoft said the Nvidia and Nintendo deals will bring C.O.D. to 150M more people, addressing concerns that the popular game would be less available post-acquisition. But one mega-rival remains: __[Sony](https://robinhood.com/stocks/SONY/)__. Microsoft’s trying to convince the PlayStation maker that it’ll keep C.O.D. on PlayStation if the deal goes through, but Sony hadn’t accepted a deal as of yesterday. Microsoft said Sony makes up 70% of the global console market.

The Candy Crush Saga continues (Hakan Nural/Getty Images)

Pause

__Sharing the treasure can win you the chest...__ While it’s not ideal for Microsoft to share its blockbuster-game trove, it could be a small price to pay to own Activision’s franchise treasure. With console sales slumping, Microsoft wants to stack its cloud gaming service, Xbox Game, with top titles to lure subscribers. And in the gaming wars, a hit title like C.O.D. could be worth the battle.

Microsoft plans to share top games like C.O.D. with rivals to save its Activision-quisition

__New coin, who dis?…__ __[Coinbase](https://robinhood.com/stocks/COIN/)__ said it plans to list a new [stablecoin](https://snacks.robinhood.com/newsletters/1alSYApz9fMDqEf8i3IPRi/articles/1vwhQv8VIIqij4eXh9Wsvw/) next week amid a flurry of regulatory attention directed at the crypto asset class. Dubbed __Euro Coin__ (EUROC), the __Circle__-issued crypto is pegged to the euro — aka: it’s designed to = 1 euro. Circle says EUROC is fully backed by euros held in reserve, similar to its US-dollar-pegged stablecoin, __USDC__, the second-largest stablecoin by market cap. 

__Stables get the shake-up…__ The SEC is [investigating](https://www.wsj.com/articles/stablecoins-attract-scrutiny-in-secs-drive-to-control-crypto-12179e04) whether stablecoins violate investor-protection laws. It’s looking into Coinbase’s and Circle’s stablecoin businesses, though Coinbase says USDC is “not a security.” Meanwhile, the SEC reportedly plans to sue crypto-services company __Paxos__, arguing that its Binance-branded __BUSD__ stablecoin is an unregistered security. The scrutiny is problematic for crypto exchanges as stablecoins are increasingly important to their bottom lines: 

- __Interest-ed:__ In its earnings report this week, Coinbase said it had earned $146M in interest income from USDC — nearly one-fourth of its total quarterly revenue.
- __Fi-nanced:__ Last month (before its market cap nosedived) BUSD stablecoin transactions made up 40% of __Binance's__ trading volume.

__The road to diversification can be bumpy…__ As crypto winter scared off investors, exchanges reliant on transaction fees saw their revenue plummet. Coinbase's trading volume sank 50% last year, making $$ earned from stablecoins (and [staking](https://snacks.robinhood.com/newsletters/3Zy7nWCeAzQOjEeKFD5zwW/articles/7A7vAvybFvXFNBUcPqFsGU/)) more important than ever. Now regulatory scrutiny could threaten that #diversification. While Coinbase said its "regulatory focus" will position it for success, this week it also said it might decide *not* to pull a crypto off its exchange — even if the SEC says it's a security.

Coinbase leans into stablecoins as regulators set their sights on the crypto asset class

⚽ *Like when a team pulls ahead after being down the entire first half…*

In the world of technical analysis, when a stock's 50-day moving average crosses above its 200-day moving average, it makes a cross-like pattern on price charts that’s referred to as a "golden cross." Some investors consider it a bullish signal. __Bitcoin__ just had a [golden cross](https://www.coindesk.com/markets/2023/02/21/crypto-markets-analysis-bitcoin-breaches-rare-golden-cross-threshold/) moment last weekend — its first since August 2021.

DEFI(NE)

Heard on the Block: "golden cross"

This week Jennifer McClellan became Virginia’s first Black congresswoman

🎮 Microsoft’s game plan

__I'm blue da ba dee da ba da.…__ __[Meta](https://robinhood.com/stocks/META/)__ launched a subscription service (dubbed: Meta Verified) in hopes of turning blue checks into big bucks. Starting this week, Facebook and Instagram users can pay $12/month on the web (or $15/month on iOS) to gain the coveted blue check mark (after providing a government ID). The __[Netflix](https://robinhood.com/stocks/NFLX/)__-priced roll-out will kick off in Australia and New Zealand, but other countries are expected to join soon.

- __Big guards:__ CEO Zuckerberg says the service is about “increasing authenticity and security” and that subscribers will get *extra* protection against fake accounts.
- __Small print:__ To start, Meta Verified badges *won’t* be available for businesses, but accounts that already have a blue check won’t have to pay to keep it — yet.

__Déjà blue…__ Big tech has scrambled to find fresh revenue as the ad-pocalypse hits profits. Meanwhile, the clamor for social-media clout has created a multimillion-dollar black market for verification (users have spent thousands of $$ for blue-check status). Now Meta’s joining other social titans like __Twitter__, __Reddit__, and __[Snap](https://robinhood.com/stocks/SNAP/)__ in launching its own (official) VIP badge service. But results so far have varied: 

- __Twitter’s__ Blue subscription, which starts at $8/month, has [reportedly](https://www.theinformation.com/articles/musks-twitter-has-just-180-000-u-s-subscribers-two-months-after-launch) attracted fewer than 300K subscribers (less than 1% of its total users).
- __Snap’s__ Snapchat+, which offers features like exclusive badges and story-rewatch counts, has gained 2M+ paid subscribers just over six months after launching.

Less meta innovation, more revenue generation (Onur Dogman/Getty Images)

Checkmeta

__This is Meta’s anti-Meta move…__ After burning through billions of dollars on its floundering metaverse ambitions, Meta’s going back to basics to recoup some cash. It’s a boring move, but it aligns with Meta’s new “[efficiency](https://snacks.robinhood.com/newsletters/4Tr1pVtVj5AQBMTXX7CQ0g/)” focus. While verified subscriptions could help combat fake accounts, they could also make Meta less accountable in building trust free of charge.

Meta rolls out a blue-check subscription as social biggies look beyond ads for fresh cash

__Scootin’ my way downtown…__ Electric scooters were the talk of the prepandemic town as venture-capital cash flowed into micro-mobility startups with four-letter names. In 2019, __[Bird](https://robinhood.com/stocks/BRDS/)__ became the fastest US startup to reach unicorn status, followed by its scooter rival, __Lime__. But valuations plunged as commuting sagged, and startups like Bird, Lime, and __[Helbiz](https://robinhood.com/stocks/HLBZ/)__ remained deeply unprofitable. 

- __Update:__ Yesterday, Lime said it [achieved](https://techcrunch.com/2023/02/21/lime-reports-first-profitable-year-tests-the-waters-for-ipo/) full-year profitability, which would make it a standout in a sector that’s notorious for burning cash (and giving drivers anxiety). 
- __The (still private) startup__ said it’s the first micro-mobility company to post a profitable year after gross bookings grew to a record $466M last year. FYI: Lime’s eyeing an IPO. 
- __Meanwhile:__ Rival Bird hasn’t reported a profit since going public, and its shares are down 97% since its SPAC debut in November 2021. 

__Stockholm scoot commute…__ Lime says it’s the biggest scooter operator in the US and Europe, and its scooters line streets in cities like Berlin, Sydney, Tel Aviv, and Rio. CEO Wayne Ting said Lime’s global presence is a big differentiator from “weaker” players. But it has another big distinguisher: building its *own* scooters instead of buying from manufacturers. 

Scooted

__DIY is harder, but it can pay off…__ Lime invested in designing and building its own scooters with swappable batteries, which it says has massively reduced its capital expenditures. Lime added that, thanks to its DIY approach, it has won more than 90% of competitive permits against other micro-mobility companies. In 2019, the average e-scooter lasted only three months. But Lime says its latest fleet of e-scooters and e-bikes lasts more than five years.

Lime says it’s the first scooter startup to notch a profitable year, thanks to its DIY moves

Meta rolls out a blue-check subscription as social biggies look beyond ads for fresh cash 

Microsoft's ChatGPT-powered Bing search has had 100M+ users so far

✅ Meta’s verified subscription

__Done playing ketchup…__ Last week Kraft Heinz [said](https://www.wsj.com/articles/kraft-heinz-khc-q4-earnings-report-2022-fa266bb) it would pause its price hikes, noting that 90% of its planned increases were already in effect. The biz behind kitchen staples like Oscar Mayer wieners and Kraft Mac & Cheese grew its sales10% last quarter as it jacked prices by 15% last year. Price hikes have also helped big foodies like __Pepsi__, __McDonald's__, and __Coke__ rake in higher profits. But as inflation starts to cool, some grocery giants are pushing back for fear of losing customers:

- __Smallstart:__ __Walmart__, America’s largest grocer, is reportedly telling some suppliers price hikes are a nonstarter (and is promoting its cheaper private labels). Its earnings today could shed more light on its pricing plans. 
- __Bowl foods:__ __Amazon__-owned __Whole Foods__ said it lowered prices on cereal and bread, and that it'll focus on discounts this year. It *also* reportedly asked big suppliers to lower their prices. 

__Two price roads diverged…__ in a Jell-O wood. While Kraft, Pepsi, and Slim Jim maker __Conagra__ said they’d ease off on price increases, others are taking the hike road. __Nestlé__, the world’s largest food company, said last week that it's still on the hiking path. It raised prices 8% last year, but said that wasn't enough to offset surging costs. Meanwhile, __Unilever__ (picture: Hellman's mayo, Ben & Jerry's), said earlier this month that it'd keep upping prices this year. 

Crafty price moves (Kevork Djansezian/Getty Images)

Fork

__The little guy can win when giants fight…__ While inflation's slowing in the goods and services sector, food has been sticky. Last week's consumer-price report showed that food inflation actually *accelerated* from December to January. It’s early innings, but if grocers and food giants start battling for customers by lowering prices (or at least\ not hiking them) that could cool food inflation. Consumers want to see food prices *fall*, but they’re expected to jump another 7% this year.

Kraft Heinz puts the brakes on price hikes as grocers battle for inflation-weary shoppers

__Chinese tech on deck…__ __Alibaba__ (the Amazon of China) and __Baidu__ (the __Google__ of China) are set to report. Last year China’s economic growth sagged to one of its worst levels on record as its zero-Covid policy and lockdowns crushed production. After China reopened for business this year, its tech stocks have rallied in hopes of a rebound. While last year’s #s might not be stellar, earnings forecasts could be more upbeat (especially as regulatory crackdowns cool). Both Alibaba and Baidu are planning ChatGPT-style AI tools, which could also rev growth. 

__Bubbles & bench presses…__ __Keurig Dr Pepper__, the beverage icon behind K-Cups, Snapple, 7UP, and (of course) Dr Pepper reports Thursday, and analysts expect refreshing results. Last quarter, KDP's sales jumped 11% as people splurged on inflated bevvies. Rivals __Pepsi__ and __Coke__ untapped strong earnings this month. While the overall soda market has been flat, demand for Dr Pepper soda has spiked. And KDP might have another winner in its fridge: it recently took a 30% stake in energy-drink maker __Nutrabolt__, which expects record sales this year.

__Green juice…__ The White House [announced](https://snacks.robinhood.com/newsletters/uT55YYjHMaCpHlECAHSwL/articles/3MU8hqm7IDoDdzsy7wRvAf/) that __Tesla__ would open up at least 7.5K of its US charging stations to *non*-Tesla EVs by the end of next year. Right now, Tesla’s US charging network — the country’s second largest — is compatible only with Teslas. Tesla might lose its exclusivity edge, but it would qualify for a share of billions in federal funding for building a national network. The Biden admin wants 500K+ EV chargers on US roads by 2030, and it also secured commitments from __GM__, __Ford__, __ChargePoint__, and others with charging networks. 

__Ballooning tensions…__ After the US shot down a Chinese surveillance balloon, relations between the world’s two largest economies have worsened. Last week China sanctioned US defense contractors __Lockheed Martin__ and __Raytheon__ over weapons sales to Taiwan. Earlier, the US barred Chinese companies that it said were tied to the balloon incident. China is one of the US’s largest trade partners, but relations are at the worst level in decades and could get worse. President Biden plans to talk with China’s President Xi to “get to the bottom” of things.

Zoom Out

- __[#ad](https://snacks.robinhood.com/newsletters/4cP1wAWKETQMe6BHcsj3mv/articles/1OeheJX1Er2P0In8mmqiVJ/):__ __Uber__ and __Lyft__ are seeing their ad businesses boom (think: an in-app Expedia ad en route to JFK). As companies like Uber, __CVS__, and __Kroger__ capitalize on customer data to sell targeted ads, __Google__ and __Meta__ are losing market share. 
- __[Hasno](https://snacks.robinhood.com/newsletters/4cP1wAWKETQMe6BHcsj3mv/articles/2Q2pDc6EBD3ByUBt6K1UzX/):__ __Hasbro__, the toy titan behind Monopoly, Jenga, and Dungeons & Dragons, reported bummer earnings as holiday toy sales slumped. But fantasy card game “Magic: The Gathering” became its first billion-dollar brand. 
- __[Shaky](https://snacks.robinhood.com/newsletters/3Zy7nWCeAzQOjEeKFD5zwW/articles/3D0jPFFxP4T08iMopuzNVf/):__ New York regulators ordered the third-largest stablecoin to wind down, which could spell trouble for its brand partner, __Binance__ (aka: the world’s largest crypto exchange) as investors ditch the coin.

Kraft puts the brakes on price hikes as grocers battle for inflation-weary shoppers

In 1870, Hiram Rhodes Revels became the first Black American to serve in Congress

🥫 Kraft cuts it out

__Expedia ad en route to JFK…__ well played. __[Uber](https://robinhood.com/stocks/UBER/)__ said that its record revenue last quarter was driven partly by an acceleration in its ad biz. Refresher: Uber [launched](https://snacks.robinhood.com/newsletters/74zHu2wNENpA7EgJyuw9OM/articles/7aqUbrU41BN6Q7GgITCtKZ/) in-app “journey ads” in October, a few months after Lyft launched its *own* ad-media unit. Think: interactive tablets in cars, digital screens *on top* of cars, and branded logos in the app (like Oscar Mayer [wienermobiles](https://media.lyft.com/) moving on the Lyft map). 

- __Uber__ said it surpassed $500M in annual run rate for ads as advertisers on its platform soared. 315K companies ran ads with Uber last quarter — nearly double the # from a year earlier.

- __[Lyft](https://robinhood.com/stocks/LYFT/)__ said its ad sales almost 7X’d from the previous quarter. While it didn’t break out #s or discuss its ad biz in its latest earnings, it said ad growth exceeded its goals. 

__Taco Tuesday gets #targeted…__ Uber and Lyft have data on your riding habits (weekend trips to the bar, midweek rides to yoga), which they can use to surface targeted ads. Those are highly valuable to marketers. Unlike Lyft, Uber has the benefit of a food-delivery biz, so it knows about your late-night taco cravings. And it sees plenty of room for growth, since only a fourth of companies listed on Uber Eats are advertising there. Uber’s targeting $1B in annual ad revenue by 2024.

Where there’s an eye, there’s an ad (Liz Hafalia/Getty Images)

Ride

__Competition can come from unlikely sources…__ When it comes to digital marketing dollars, the focus has usually been on ad-reliant tech titans like __[Google](https://robinhood.com/stocks/GOOGL/)__ and __[Meta](https://robinhood.com/stocks/META/)__. Now, not only are they getting competition from newer social platforms like __TikTok__, they’re losing market share to companies like Uber, __[Kroger](https://robinhood.com/stocks/KR/)__, __[CVS](https://robinhood.com/stocks/CVS/)__, and __[Ulta](https://robinhood.com/stocks/ULTA/)__, which have leveraged their trove of customer data to peddle ads (and, in [some cases](https://snacks.robinhood.com/newsletters/3Hl3mc6sCkfmjzLxurSluj/articles/2ZU99eIEYGaFwEr5tLkHUp/), just data). Last year, Google and Meta’s share of US digital ad revenue was less than 50% for the first time in a decade.

Uber and Lyft see their ad businesses boom as advertisers look beyond Google and Meta

__GI Joe no…__ __[Hasbro](https://robinhood.com/stocks/HAS/)__, the toy giant behind Monopoly, Jenga, and My Little Pony, dropped not-so-fun earnings yesterday. Its sales fell a worse-than-expected 17% last quarter, and it swung to a $128M loss after posting a profit the year before. Hasbro (like Barbie maker __[Mattel](https://robinhood.com/stocks/MAT/)__) struggled during the holidays as parents cut back on costlier name brands. Hasbro said toy-flation could extend the buying blues through the first half of the year.

- __Un-boxing:__ Hasbro shares are down 40% this year, and last month it laid off 15% of its workforce as it looks to cut costs and offload its TV and film biz.

- __Halo effect:__ But Hasbro had record revenue for its Marvel toys and fantasy card game “Magic: The Gathering,” and says new expansion packs could pay off in later quarters.

__Bibbidi Bobbidi boost…__ Hasbro started the year on a sour note after losing its Disney princess licensing rights to Mattel and dropping other popular franchises like Trollz. But it had Magic to fall back on: last quarter the card game became Hasbro’s first billion-dollar brand, making up nearly a fifth of its annual revenue. Magic’s popularity has inspired video games, comic books, a Caribbean cruise, and an animated __[Netflix](https://robinhood.com/stocks/NFLX/)__ series.

Magical

__A magic player can carry the team…__ As consumer shopping slows from its pandemic highs, companies are leveraging franchises with passionate fan bases to keep sales afloat. Hasbro’s CEO said Magic fans are “very resilient” and motivated to spend on things they really enjoy. It’s also leaning on its hit Dungeons & Dragons franchise. Still, some analysts say that player fatigue and pricey cards (think $50/pack) could hurt growth.

Hasbro bums on earnings as toy sales slump — but Magic helps it score its first billion-dollar brand

🌶️ __Spicy…__ The SEC [sued](https://www.bloomberg.com/news/articles/2023-02-16/sec-poised-to-sue-over-terrausd-stablecoin-that-rocked-crypto) __TerraForm Labs__, the biz behind the failed TerraUSD stablecoin, alleging it committed fraud and sold unregistered securities. TerraUSD blew up in May and erased $40B in market value. 

🤖 __Techy…__ __[Bitcoin](https://robinhood.com/crypto/BTC/)__ NFTs (dubbed: [ordinals](https://snacks.robinhood.com/newsletters/hVxJ5P0UXNj7GiarHRYHR/articles/6h6QfaEiiWIYYTVHHiqAf/)) are picking up steam with 126K+ added since their blockchain debut last month. The project lets users store audio, images, and videos directly on the bitcoin blockchain. 

🪙 __Coins…__ After __Paxos__ said it'd [stop](https://snacks.robinhood.com/newsletters/3Zy7nWCeAzQOjEeKFD5zwW/articles/3D0jPFFxP4T08iMopuzNVf/) issuing the __Binance__-branded __BUSD__ stablecoin, the coin's market cap [plummeted](https://fortune.com/crypto/2023/02/15/binance-usd-stablecoin-billions-sold-off/) $2B+. Rival stablecoin __tether__ (aka: USDT) has benefited as crypto traders look for alts.

BNFT

US consumer debt hit a $16.9T record at the end of last year, up from $1.3T a year earlier

💰 Ride-hail ad sales

__Sharing the green juice…__ The White House [announced](https://www.whitehouse.gov/briefing-room/statements-releases/2023/02/15/fact-sheet-biden-harris-administration-announces-new-standards-and-major-progress-for-a-made-in-america-national-network-of-electric-vehicle-chargers/) that __[Tesla](https://robinhood.com/stocks/TSLA/)__ will open up at least 7.5K of its US charging stations to *non*-Tesla EVs by the end of next year. That’s a big first, because Tesla’s US chargers are compatible only with its *own* cars. The open chargers will include Tesla’s Superchargers (which can recharge cars in 30 minutes), plus “destination chargers” in places like hotels and restaurants. Why Tesla’s giving up its exclusivity edge: 

- __Gov’t cash:__ The Biden admin wants at least 500K publicly accessible EV chargers on US roads by 2030. By opening up its chargers, Tesla would qualify for a share of billions in federal funding offered for building a national network. 
- __Not just Elon:__ The White House also secured commitments from __[GM](https://robinhood.com/stocks/GM/)__, __[Ford](https://robinhood.com/stocks/F/)__, __[ChargePoint](https://robinhood.com/stocks/CHPT/)__, and others that operate charging networks. They stand to win funding for projects that meet federal requirements, like the Combined Charging System plug standard (which Tesla currently doesn’t use). 
- __FYI:__ Federally funded EV chargers won’t necessarily need to be powered by clean energy (they could use gas-fueled electricity). 

__Tesla-only zone…__ Charging networks are key to easing EV range anxiety and spurring adoption. With its US network of 17.7K fast chargers in 1.6K locations, Tesla runs the country’s second-largest charging network (after __ChargePoint__). Its Tesla-exclusive Supercharger stations are a big reason some EV buyers chose Tesla over other brands. But now it risks losing that competitive edge.

BRB, grabbing a juice (Petter Berntsen/Getty Images)

Juiced

__Losing the “Apple edge” may be worth it…__ Tesla has made its EV tech exclusive, similar to how __[Apple](https://robinhood.com/stocks/AAPL/)__ has boxed non-Apple users out of its ecosystem (think: connected software, specific device chargers, and green texts from non-iOS users). While it might lose a competitive advantage, Tesla stands to gain billions in gov’t funding and extra charging revenue from non-Tesla owners. And it would further its goal of accelerating the energy transition.

Tesla commits to opening up 7.5K of its chargers to other EVs, trading exclusivity for $$

__A bustling meta-tropolis…__ Shares of tween-favorite online gaming platform __[Roblox](https://robinhood.com/stocks/RBLX/)__ popped 26% yesterday after it [reported](https://techcrunch.com/2023/02/15/in-a-boost-for-the-metaverse-roblox-stock-pops-25-after-strong-q4-earnings/) surprisingly strong bookings, suggesting that interest in its version of the metaverse (VR headset not required) is booming. Roblox said daily active users grew 19% last quarter to 58M+ people (who spent nearly 13B hours playing). Its bookings grew 17% as users bought its “Robux” in-game virtual currency. 

__Where "kidults" reign…__ Roblox found success with kids thanks to breakout games like "Jailbreak" and "MeepCity." In 2020, the company said that 75% of US kids ages 9 to 12 played Roblox. But efforts to attract older users (and grow up with its audience) are paying off: yesterday Roblox said user growth was especially strong with players over 17, and in the fall it said half its players were 13 or older. To engage more mature age groups, Roblox embraced adult-friendly entertainment: 

- __Footblox:__ Last year the NFL said it'd have a presence in Roblox through games and live events (FIFA's there too). Last week the NFL held a live Super Bowl concert on the platform, featuring an exclusive performance by Saweetie. 
- __Superstars:__ Mariah Carey performed on Roblox in December, and Elton John and Lil Nas X have done exclusive shows there.

ROBUX

__It’s what’s inside that counts…__ While rival __[Meta](https://robinhood.com/stocks/META/)__ has struggled to grow its Roblox rival "Horizon Worlds" (picture: deserted virtual vistas), Roblox is drawing in new and older users with high-profile sports and entertainment partnerships, plus viral user-created games. The effort seems to be paying off: Roblox said that last month its daily user count hit 65M.

Roblox soars on strong growth as meta-gaming competitors struggle to find their footing

As of February 3, the average tax refund was $1.9K, down from $2.2K last year

⚡ Tesla gets less exclusive

__Grab the mini-bar champagne…__ __[Marriott](https://robinhood.com/stocks/MAR/)__ unpacked strong earnings yesterday as people splurged on ocean-view suites at the Ritz and room service at the W. The world’s largest hotel chain — which also owns Sheraton, Westin, and many others — saw its sales rise a sweeter-than-expected 33% to nearly $6B. Meanwhile, profits surged 44%. 

- __Expensive nights:__ Marriott's revenue per available room (a key metric in the hotel industry) jumped 5% above 2019 levels thanks to pricier rates and healthy demand. 
- __City lights:__ Leisure and group trips in North America (Marriott's largest market) topped prepandemic levels, while business travel recovered to nearly 90%.

__Stash the mini toiletries…__ With the worst of the pandemic past us, consumers are taking advantage of their regained freedom by traveling — a *lot*. Last year, US hotel revenue and profits hit record highs. But some of that growth was driven by higher prices (average room rates in North America surged 33% from 2019 prices). Americans have mostly stomached those hikes, but that could change as households burn through their pandemic savings.

Living the suite life (Jeffrey Greenberg/Getty Images)

Suite

__Savings may die before demand…__ As savings dollars dry up, consumers could be *forced* to cut back on travel spend — even if organic demand is still high. Goldman Sachs predicts that Americans will’ve burned through 65% of their pandemic savings by the end of this year. Still, consumers could satisfy their wanderlust with more budget-friendly choices (think: road trips, cheaper lodging).

Marriott’s profit soars on the vacay-palooza, but Americans’ travel fuel could be running low

__When stables get rocked…__ New York regulators unbalanced the crypto industry this week, [ordering](https://www.wsj.com/articles/crypto-firm-paxos-to-stop-issuing-dollar-pegged-binance-token-94f65e52) __Paxos__ — the crypto-services biz behind the third-largest stablecoin — to cease issuing its __Binance__ USD (BUSD) token. Refresher: [stablecoins](https://snacks.robinhood.com/newsletters/1alSYApz9fMDqEf8i3IPRi/articles/1vwhQv8VIIqij4eXh9Wsvw/) are crypto pegged to real-world assets like the US dollar. They let folks interact with DeFi and smart contracts without the price volatility associated with other coins. But there’s a shake-up in the works:

- __Destabilized:__ Paxos said it’ll stop creating new BUSD coins next week — *and* that it’ll no longer work with BUSD's brand partner, __Binance__. 
- __Axe-os:__ The SEC [reportedly](https://www.wsj.com/articles/crypto-firm-paxos-faces-sec-lawsuit-over-binance-usd-token-8031e7a7) plans to sue Paxos over its sale of BUSD, alleging it's an unregistered security. 

__Byenance?…__ Paxos rolled out BUSD in 2019 and grew the coin to a $16B market cap in partnership with Binance. Now BUSD’s value is shrinking fast as investors ditch it. That could be bad news for Binance, which had seemingly solidified its crypto [dominance](https://snacks.robinhood.com/newsletters/526WtJRG3zrWufKdIt6J4Q/articles/3zB6agzhn8eYlznx5dEr4X/) after __FTX’s__ fall. BUSD transactions were reported to make up 40% of the exchange’s trading volume last month. Binance's CEO, Changpeng “CZ” Zhao, said the exchange made 90% of its revenue from transaction fees. Yesterday CZ downplayed Binance’s connection to the stablecoin. 

Tilt

__No one’s sleeping on crypto (regulation)…__ anymore. Last year's cascading bankruptcies at __Celsius__, __BlockFi__, and FTX left some lawmakers asking if crypto regulation was asleep at the wheel. Now regulators have downed a double espresso and set their sights on more than just stablecoins. The SEC said last week that it had reached a $30M settlement with US-based exchange __Kraken__ over its staking program. And last month it went after __Gemini's__ troubled Earn program.

Regulators order the third-largest stablecoin to shut down, which could spell trouble for crypto's top exchange

🤑 *When you put your money where your mouth is…*

Proof-of-stake blockchains like __ethereum__ rely on people called validators to process transactions and keep the chain honest. But first validators must lock up crypto as collateral in a process called "staking." The idea: validators are less likely to do something shady if their coins are on the line. Last week, after SEC Chair Gary Gensler [said](https://www.sec.gov/news/sec-videos/office-hours-gary-gensler-staking-a-service) that companies offering staking services must comply with securities laws, __[Coinbase](https://robinhood.com/stocks/COIN/)__ [argued](https://www.coinbase.com/blog/coinbases-staking-services-are-not-securities-and-heres-why) staking's not a security. 

Heard on the Block: "staking"

This year’s Super Bowl was the second-most-watched Bowl ever with 113M viewers

🏖️ Marriott’s room boom

__“Who sat on the remote?!”...__ It’s no surprise that Tubi’s [ad](https://nypost.com/2023/02/13/tubis-super-bowl-2023-commercial-pranks-fans/) caused so much stress this Sunday. Super Bowl gambling set sportsbook [records](https://www.cnbc.com/2023/02/13/super-bowl-betting-records.html) this year, with an estimated 50M+ Americans wagering over $16B (double last year’s estimate). It was the first Bowl to take place in a state with legalized sports betting, which was a boost for betting apps. A highlight reel: 

- __MGM Resorts,__ which runs the BetMGM app plus sportsbooks on the Vegas Strip, said it was BetMGM’s most successful Super Bowl and most-bet-on single-game sporting event ever.
- __FanDuel__ said it was processing 50K bets/second at its peak, and averaged 2M active users throughout the game. 
- __DraftKings__ predicted that the Bowl was going to be its largest customer-acquisition event of the year. (Oh, and one of its bettors won $2.7M on a $1.7M wager on the Chiefs.) 

__What happens in Vegas…__ hasn’t stayed in Vegas. Gambling platforms had strong growth last year as more states legalized sports betting. It’s now legal in 36 states plus DC, while *mobile* betting is allowed in 26 states (up from 18 a year ago). Americans placed $73B worth of legal sports bets last year, up 70% from 2021 — and sports-betting companies raked in nearly $6B from those wagers. Meanwhile, calls to the national hotline for people with gambling problems have [soared](https://www.nytimes.com/2022/11/20/business/sports-betting-laws-states.html). 

Higher stakes = more nail-biting (Anthony Behar/Getty Images)

Book

__Blockbuster events can be growth “freebies”…__ The Super Bowl super-charged the sports-betting industry by simply existing. Companies have splurged on celeb-studded marketing to compete for customers in the crowded space. But now they’re starting to shift their focus to achieving *profitability* — and milking blockbuster events for organic growth. Sportsbooks are already accepting bets for *next year’s* Bowl, which’ll take place in Vegas for the first time.

Super Bowl sports betting hits records as companies seize on the blockbuster moment

__Sounds like Ticketmaster…__ actually __[Amazon](https://robinhood.com/stocks/AMZN/)__. The e-shopping titan is [charging](https://www.bloomberg.com/news/articles/2023-02-13/amazon-amzn-takes-half-of-each-sale-from-2-million-small-businesses?srnd=premium&sref=q3KSFp38) fat fees to drum up fresh cash. Last year, Amazon took an average 50%+ cut from each third-party transaction, up from 40% in 2018. Third-party sellers are non-Amazon merchants who *list* on Amazon. They make up over [half](https://sell.amazon.com/blog/grow-your-business/amazon-stats-growth-and-sales) of Amazon’s sales, providing everything from beach umbrellas and sneakers to “gently used” TVs. 

- __Before:__ Sellers have been handing over more per transaction to Amazon for the past six years, but were able to stomach the higher cuts as sales on Amazon soared. 
- __After:__ Amazon’s coming off its slowest annual sales growth in history, and wants to leverage its nearly 2M small and midsize third-party sellers to fatten margins.

__Not so prime…__ As the ecomm boom cools, third-party sellers have lured shoppers by ramping up discounts instead of spending more on Amazon’s #sponsored listings. As growth slows in its core business, Amazon’s looking for new ways to drum up fresh revenue. Last month the company [launched](https://snacks.robinhood.com/newsletters/3ixqIRvS7EbwrWX2JbYIrl/) a new "Buy with Prime" feature that allows Prime members to enjoy fast payment and delivery options on *non*-Amazon sites. 

Split

__It’s hard to leave the world’s biggest showcase…__ While delisting from Amazon can be more financially efficient for some businesses, many feel like they can’t do without it. Amazon’s third-party sellers account for about a quarter of all online purchases in the US, and its fulfillment services (think: storage, delivery) can cost 30% less than competitors. The tide could be changing: 60% of Amazon sellers use at least one other e-comm platform, and half plan to add another this year.

Amazon’s taking a huge cut from its sellers, but businesses will (probably) keep listing anyway

Consumers are expected to spend an average of $193 for Valentine’s Day this year

🏈 Super bet Bowl

__AI of the tiger…__ Cue the music. The Super Bowl wasn’t the only big competition to play out last week: the AI-chatbot battle officially [kicked off](https://snacks.robinhood.com/newsletters/6MahrOtOORUiLsDkSLNGui/articles/75QCH1H4Ub0eWmzYpMgui3/). Before getting into it, a quick recap: in November, __[Microsoft](https://robinhood.com/stocks/MSFT/)__-backed OpenAI launched ChatGPT and it went viral as people used it to answer prompts, write articles, and even craft poems. In January, Microsoft announced plans to integrate OpenAI’s tech into all its products. Then *last* week, things took an intense turn: 

- __On Monday__ __[Google](https://robinhood.com/stocks/GOOGL/)__ debuted its ChatGPT rival, Bard — a response to the existential threat posed by OpenAI — and said it’ll soon integrate Bard into web search. 
- __On Tuesday__, in a last-minute news event announced on *Monday*, Microsoft introduced a ChatGPT-fueled version of its Bing search engine and an AI-supported Edge browser.
- __Then on Wednesday__, Google held its *own* news event to show off its Bard chatbot, but the stock tumbled after a video promo contained the [wrong answer](https://www.reuters.com/technology/google-ai-chatbot-bard-offers-inaccurate-information-company-ad-2023-02-08/) to a query. 

__Well, that escalated quickly…__ The launch of ChatGPT triggered an AI battle between search giant __Google__ and software titan __Microsoft__, and it could get more heated than their cloud rivalry. Google’s been in the AI game for years (it invented the “transformer” tech that powers ChatGPT). But it’s historically been more cautious with rolling out these lightly tested tools to the public, since there are still significant unknowns. But… 

- __Google apparently felt pressured__ to introduce Bard earlier than planned to protect its profit-puppy search biz. 
- __Microsoft apparently felt pressured__ to invest billions in OpenAI and attach its powerful tools to its product suite.

The “new Bing” walks into a search bar… (Jason Redmond/Getty Images)

Unbottle

__Getting there first can be a dangerous game…__ because competition makes it harder to move cautiously. Now two tech titans with *massive* reach are racing to crank out genAI features even though concerns abound. Large language models have been known to share false information and biased answers, and have [well-documented](https://www.theverge.com/2023/2/6/23588033/google-chatgpt-rival-bard-testing-rollout-features) tendencies to spew out hate speech. Also on the line: the intellectual output of future generations, which could become monotonous.

Microsoft and Google kick off the AI-bot race, but their speed comes with concerns

__Put an extra mint on the pillow...__ Experiential spending (think: travel, entertainment) is having a moment. And when consumers splurge on trips, they need places to rest their heads. Enter __Airbnb__, __Hyatt__, and __Marriott__, which are set to report this week. Both Marriott and Hyatt are expected to show king-size earnings growth. Airbnb, whose stock is up almost 30% this year, is also predicted to drop big growth. Hotel giant __Hilton__ beat expectations last week after surpassing prepandemic profits, partly thanks to lofty room prices. 

__Zillow-scrolling returns…__ as the housing market (slowly) warms up. After hitting a 20-year high in November, mortgage rates have trickled below 7%. Mortgage applications are up, and online brokerage __Redfin__ said that interest from prospective buyers has jumped since a November low. Meanwhile, __Zillow__ said it expects mortgage rates to continue falling. The cos could use the bump after shuttering their pandemic-boom-era iBuyer divisions. Both Redfin's and Zillow's revenue is expected to be down on the year when they report this week. 

__What the Shell…__ Environmental-law firm ClientEarth is suing 11 members of __Shell's__ board, alleging that the oil behemoth has failed in its duty to manage climate risk. It’s a first-of-a-kind suit because *individuals* are being sued — and comes on the heels of Shell reporting a record $40B annual profit. ClientEarth (a Shell investor) said the board’s failed to implement a suitable energy-transition strategy, yet Shell said it does "not accept" the allegations. Last year its renewables spend was less than half of what it dropped on extracting fossil fuels. 

__A stake through the heart…__ Crypto exchange __Kraken__ agreed to pay a $30M fine and end its staking program, which let people lock up crypto as collateral and earn yield. The SEC said the program amounted to the sale of unregistered securities (aka: a big no-no). __Coinbase__ — whose own staking program has been a rapidly growing source of revenue — [said](https://www.barrons.com/articles/coinbase-staking-crypto-kraken-sec-1a404fd9) it has no plans to abandon staking. The issue may soon come to a head: ethereum's upcoming [Shanghai hard fork](https://snacks.robinhood.com/newsletters/7g8WyDpRHlBW4XKb0ArYq9/articles/3YIdBYT3OuwOf9IqZp0aMK/) is set to make staking more attractive to investors.

- __[Fluffy](https://snacks.robinhood.com/newsletters/526WtJRG3zrWufKdIt6J4Q/articles/2WDwwTJmfNddBuxrd4a7L4/):__ Americans aren’t trading down on their pets. As folks keep spoiling their fur babies, companies like __Post__, __General Mills__, and Purina maker __Nestlé__ are investing in the fast-growing pet-food biz. 
- __[Control](https://snacks.robinhood.com/newsletters/526WtJRG3zrWufKdIt6J4Q/articles/3zB6agzhn8eYlznx5dEr4X/):__ After FTX’s collapse, __Binance__ now reportedly controls over half of crypto spot trading. But the exchange has had some issues, and the industry could be at risk of putting too many eggs in one basket. 
- __[Sail](https://snacks.robinhood.com/newsletters/7g8WyDpRHlBW4XKb0ArYq9/articles/12XVNbkeyxk3jFkCrDrdrh/):__ __Royal Caribbean’s__ cruise booking volumes blew prepandemic #s out of the water last year. Rivals __Carnival__ and __Norwegian Cruise Line__ are also sailing with tailwinds as consumers keep YOLO spending on experiences.

Between 2021 and 2022, US sales of non-boozy beverages grew 21%