__Old money, new digs…__ __[Ralph Lauren’s](https://robinhood.com/stocks/RL/)__ iconic horsey jockey is now riding a cartoon llama. Ralph Lauren and __Epic Games’__ Fortnite are [teaming up](https://www.bloomberg.com/news/articles/2022-10-31/ralph-lauren-rl-launching-polo-fortnite-fashion-line-with-new-llama-logo?srnd=premium&sref=q3KSFp38) on a physical and digital (#phygital) fashion line. The physical Polo Stadium Collection launches today on RL’s site (think: ’90s-themed polos and $70 hoodies). On Saturday, the digital collection is expected to hit Fortnite with avatar outfits priced about $6. Both collections feature Polo’s first redesigned logo (feat. Fortnite llama). 

- __For RL:__ With sales relatively flat over the past decade, the old-school retailer plans to raise prices and focus on new customers for growth. The prep star hopes to tap into Fortnite’s 400M users.
- __For Fortnite:__ As gamers splurged on “Spider-Man” skins and accessories, Fortnite's “V-Bucks” virtual currency helped drive sales last year to a record $5.8B. Brand partnerships could help supercharge growth. 

__Pop the collar (in the metaverse)…__ Ralph Lauren is the latest fashion house to partner with popular online platforms as brands look to capitalize on digi-fashion. Last year Balenciaga became the first major fashion brand to launch a phygital collection with Fortnite (see: [$725](https://www.cnet.com/culture/fashion/show-off-how-much-of-a-fortnite-fan-you-are-with-725-balenciaga-hoodie/) hoodies). Meanwhile, Ralph Lauren made its digital fashion debut with “Polo Shops” in __[Roblox](https://robinhood.com/stocks/RBLX/)__, which let players purchase digi-clothing for their avatars.

Welcome to the Poloverse (Courtesy of Ralph Lauren)

Llama

__Retailers are bridging the “phygital” gap…__ Virtual-apparel collabs with brands like __[Disney's](https://robinhood.com/stocks/DIS/)__ Marvel, the NFL, and __[Nike](https://robinhood.com/stocks/NKE/)__ have already earned tens of millions of dollars for Fortnite. The metaverse allows traditional retailers like Ralph Lauren to reinvent their brands for a fresh audience. The times they are a-changin’: online transactions now make up a quarter of RL’s sales and could reach 33% in the next few years thanks to younger shoppers.

Ralph Lauren launches a Fortnite fashion collab as retailers turn to “phygital” partnerships to lure younger shoppers

![NurPhoto/Getty Images](//images.ctfassets.net/mwphzyq69oso/6N6rPGaxsikzmZYGccSBzY/10cbedae9d7dd718d48e48f54700ab56/GettyImages-1236646723.jpg)

__Not everyone’s pumped…__ Oil profits are booming and President Biden isn’t pleased. This week oil giants __[Chevron](https://robinhood.com/stocks/CVX/)__, __[BP](https://robinhood.com/stocks/BP/)__, __Saudi Aramco__, __[Marathon Petroleum](https://robinhood.com/stocks/MPC/)__, and __[Phillips 66](https://robinhood.com/stocks/PSX/)__ posted jaw-dropping profits thanks to rising prices. __[Exxon](https://robinhood.com/stocks/XOM/)__ tripled its quarterly profit to a record. Though gas prices have fallen from summer peaks, they’re still much higher than when Biden took office. 

- __Harsh words:__ This week Biden [accused](https://www.nytimes.com/2022/10/31/us/politics/biden-oil-windfall-tax.html) gas titans of “profiteering” off Russia’s war on Ukraine and threatened them with a windfall tax (a one-time tax on excess profits).
- __Empty promises:__ Only Congress (which won’t be in session till January) can pass a new tax. Plus, analysts expect Congress to remain divided after next week’s midterms.

__You don’t need a meteorologist…__ to know which way the windfall blows. Biden’s not the only one monitoring oil profits: lawmakers in Greece, Hungary, Italy, Romania, Spain, and the UK have implemented windfall taxes. But some investors are seeing the glass as half full:

- __Buffett’s gas:__ In recent months Warren Buffett’s __[Berkshire Hathaway](https://robinhood.com/stocks/BRK.A)__ has boosted its massive stake in Chevron and __[Occidental](https://robinhood.com/stocks/OXY/)__, making oil one of its largest investments. Berkshire has gained $13B on those holdings in the past few years.

Slick

__You can’t fill a Camry with stock buybacks…__ but oil execs insist they’re returning their profits to Americans through stock dividends and share buybacks — and say taxes could cut into investors’ returns. Oil giants Chevron, BP, Exxon Mobil, __[Shell](https://robinhood.com/stocks/SHEL/)__, and __[TotalEnergies](https://robinhood.com/stocks/TTE/)__ spent $20B+ on buybacks in the first half of this year and are expected to splurge more in the second half. Their shares have risen an average of 37% this year, while the S&P 500 has fallen 20%.

Oil profits keep gushing as high prices stick, drawing criticism from Biden ahead of midterms

Ralph Lauren launches a Fortnite fashion collab as retailers turn to “phygital” partnerships

Dow Jones

S&P 500

Nasdaq

Bitcoin

Songs from Taylor Swift's new album held all top 10 spots on the Billboard Hot 100 yesterday

👕 Fortnite’s fashion Poloverse

__Chuck your checkbook…__ Rent payments are entering the 21st century. Yesterday __[JPMorgan Chase](https://robinhood.com/stocks/JPM/)__ [said](https://www.cnbc.com/2022/10/31/jpmorgan-chase-unveils-payments-platform-for-landlords-and-tenants.html) it's testing a digital platform called “Story” to automate rent payments, which are still often paid by check. Here’s how it’s supposed to work: 

- __Renter center:__ Story will let renters enroll in auto-pay programs, get notifications, and view their payment history online. 
- __Owner dashboard:__ Story will allow landlords to view payments across their properties, use analytics to set prices, and screen prospective tenants.

__Rent tech is stuck in the dark ages…__ Today, 78% of US renters pay their rent by check — a paper technology that’s been used since the 1400s. One reason: most of America’s 12M landlords have relatively few units and collect payment just once a month, so they haven’t needed fancy systems. Now startups and banks are pushing for techier tools:

- __Rent rewards:__ __Bilt Rewards__, which offers a credit card in partnership with __[Mastercard](https://robinhood.com/stocks/MA/)__ and __[Wells Fargo](https://robinhood.com/stocks/WFC/)__, lets users earn rewards points by paying rent on time and then use those points to pay for travel, __[Amazon](https://robinhood.com/stocks/AMZN/)__ purchases, or even homes. 
- __Big bucks:__ This month Bilt raised $150M at a $1.5B valuation, and rent-tech startups __Esusu__, __Stake__, and __Piñata__ have also raised millions for rent-rewards programs.

Tap to pay rent? (Drew Angerer/Getty Images)

Checked

__Banks are betting big on boring…__ Banking big shots like JPMorgan and __[Goldman Sachs](https://robinhood.com/stocks/GS/)__ are investing in more consistent revenue streams like specialty consumer loans and co-branded cards to offset volatility in their investment-banking and trading divisions — and rental payments are as consistent as it gets (though less exciting than IPOs). JPM is already the biggest lender to US landlords; now it aims to snag a chunk of the $500B/year that Americans spend on rent.

Chase launches a techy rent-payment platform to boost reliable revenue (minus the checks)

__Venmo requesting JPowell…__ Everyday folks are struggling with higher interest rates, from mortgages to hefty credit-card payments. But Jack and Jill aren’t the only ones: central banks are [suffering](https://www.wsj.com/articles/higher-interest-rates-fuel-losses-at-the-federal-reserve-11667208602?mod=pls_whats_news_us_business_f) from their own medicine. 

- __The Fed’s losing money —__ something it’s never consistently done before. That’s partly because it now has to pay *higher* interest to banks for depositing money at the Fed (think: reserves and overnight loans). 
- __Losses are piling up:__ The Fed’s interest payouts now exceed the $8T+ that it earns on Treasury bonds and other securities. FYI: in recent years, it earned about $100B in *profit*, which is sent to the Treasury to reduce federal deficits. 
- __Not just the US:__ Central banks worldwide are dealing with the fallout of their inflation-fighting rate hikes, which don’t seem likely to slow anytime soon. Eurozone inflation just [hit](https://www.cnbc.com/2022/10/31/euro-zone-inflation-hits-10point7percent-in-october-.html) a record 10.7%. 

__The name’s bond…__ Higher interest payments on bank deposits aren’t the only problem. The bond market is experiencing its worst selloff in a generation. As rates rise, the value of existing bonds falls. People are selling old bonds as new ones are issued at higher rates. 

- __That’s bad for the Fed and other central banks__ that racked up huge bond portfolios to help stimulate their pandemic economies (bond-buying = more cash in circulation). 
- __As bond prices plunge,__ banks are watching the value of those holding plummet. The central banks of Australia, Switzerland, and the Netherlands are already [seeing red](https://www.bloomberg.com/news/articles/2022-10-25/fed-is-losing-billions-wiping-out-profits-that-funded-spending). Global government-bond losses are on track for the worst year since 1949.

__Pressure might not “break” the bank…__ but enough political backlash might make it adjust course. While losses don’t hamper central banks’ ability to conduct monetary policy (aka: do their job), they’re drawing concern from politicians. Without income from the Fed, the Treasury needs to borrow more to fund government spending. Now, calls are growing to slash the interest payments that central banks make to commercial banks.

Central banks are losing money as interest rates roar, swallowing their own bitter pill

*🛹 If the “How do you do, fellow kids” meme were a crypto…*

Creators like Satoshi Nakamoto and companies including __Circle__ have launched cryptocurrencies. Now central banks want in on the fun with a digital currency they can issue and control (aka: a “__central bank digital currency__,” or CBDC). India's central bank plans to start its [CBDC](https://www.coindesk.com/policy/2022/10/31/indias-central-bank-to-start-wholesale-cbdc-pilot-nov-1/) pilot today, and the US Fed is “exploring” CBDCs.

DEFI(NE)

Heard on the Block: “CBDC”

US apartment demand has fallen to its lowest level in 13 years

💸 JPMorgan’s rent revolution

__Memes become Monet paintings…__ A new kind of AI is transforming the way people create art *and* do business. Generative AI uses deep learning and tons of data to convert text prompts into images, videos, and articles. We made the image above using gen-AI and a text prompt. 

- __Main character:__ __OpenAI__, which has raised billions from __[Microsoft](https://robinhood.com/stocks/MSFT/)__ and others, launched the first major gen-AI tool, Dall-E, last year. It was released to the public last month, and __Reddit’s__ already filled with viral Dall-E [creations](https://www.reddit.com/r/weirddalle/comments/xjf1vh/an_italian_sink_with_a_tap_that_dispenses/).
- __Other players:__ __Stability AI__ raised $100M this month (at a $1B+ valuation) for its open-source gen-AI tool, Stable Diffusion. __[Meta](https://robinhood.com/stocks/META/)__, __[Google](https://robinhood.com/stocks/GOOGL/)__, __[Salesforce](https://robinhood.com/stocks/CRM/)__, and __[Adobe](https://robinhood.com/stocks/ADBE/)__ have built in-house gen-AIs, too, but they’re not publicly available.

__Goofy images were only the start…__ Now entrepreneurs are putting gen-AI to work. 140+ gen-AI startups have launched in recent months: __Jasper__, which makes AI-generated blog posts, raised $125M at a $1.5B valuation last week. Companies can use it to automate copywriting (think: “a promotional post about air fryers in a friendly tone”). Other startups are auto-generating clothes, floorplans, and ad jingles. Microsoft added Dall-E to its design tools, and __[Shutterstock](https://robinhood.com/stocks/SSTK/)__ plans to use it to make stock images. But ethical concerns abound:

- __Payment problems:__ Critics say gen-AI doesn’t compensate artists who create the content that “feeds” its algorithms (though Shutterstock has a “contributor” fund).
- __Harassment hitches:__ Dall-E has safeguards, but some argue that gen-AI can still be used to produce celeb deepfakes and misinfo. Others say it replicates biases, like sexist imagery.
- __Automation anxiety:__ Some fear gen-AI will put writers and designers out of work (others disagree).

We generated this image using DALL-E and the prompt “an oil portrait of a Shiba Inu wearing a business suit and holding an iPhone, in the style of Claude Monet.”

Creative

__Highly visible = highly valuable…__ AI has many existing applications (think: self-driving cars, disease diagnosis, fraud protection),but it often operates behind the scenes. And yet generative AI has an accessible wow factor that’s already dazzled many. Some investors say it’ll be a huge industry: prominent VC firm __Sequoia__ predicted that gen-AI could generate “trillions in value” and revolutionize industries that require humans to create original work.

“Generative AI” is booming, and it’s revolutionizing the way people make art — and money

__Dressed up as Jerome Powell…__ because interest rates are terrifying. To be the Fed chair all you need are hiking clothes: America’s central bank is expected to raise rates by a “jumbo” 75 basis points on Wednesday — the fourth straight bump of that size. Soaring borrowing costs are spooking investors and raising recession red flags. Last week mortgage rates topped 7% for the first time in 20 years. But economists polled by Reuters said the Fed shouldn’t pause its hiking crusade till inflation drops to around half of its current level (a hot 8.2%).

__Winter’s coming…__ While consumers are still feeling #PumpAnxiety, oil giants are still pumping [record](https://www.usnews.com/news/business/articles/2022-10-28/oil-giant-exxon-rakes-in-a-record-19-66b-in-profits) profits. Last week __[Exxon](https://robinhood.com/stocks/XOM/)__, __[Chevron](https://robinhood.com/stocks/CVX/)__, and __[Total](https://robinhood.com/stocks/TTE/)__ demolished earnings with record results (Exxon took home a $20B profit). Analysts expect __[Marathon Petroleum](https://robinhood.com/stocks/MPC/)__ and __[ConocoPhillips](https://robinhood.com/stocks/COP/)__ to deliver strong results when they report this week. Global oil and gas supplies are still tight from pandemic-era output cuts and the war in Ukraine. Now President Biden is urging Big Oil to boost production (and cut buybacks) ahead of winter.

Events

Coming up this week...

__Well, that was underwhelming…__ Tech stocks plunged last week after uninspiring third-quarter earnings. Google’s sales growth slowed big-time as ad spending sagged, while Meta’s revenue dropped for a second straight quarter (and profit plunged 52%). What really turned investors off: weak *forecasts* for this holiday quarter. __[Amazon](https://robinhood.com/stocks/AMZN/)__ [expects](https://snacks.robinhood.com/newsletters/540cTuIpTqabq5PMret6Zx/articles/2f6cF6488oIED70Eb3P8Vs/) sales to be up just 2% to 8% from last year (a major slowdown). As tech forecasts fall back to earth, investors are adjusting their expectations. Then again, lower expectations might mean less market disappointment.

__Trick or treat…__ But retailers aren’t spooked by candy-flation. Go-tos like __[Walmart](https://robinhood.com/stocks/WMT/)__, __[Costco](https://robinhood.com/stocks/COST/)__, and __[Lowe’s](https://robinhood.com/stocks/LOW/)__ widened their spooky selection by about 20%. This year Halloween spend is expected to hit a record $10.6B ($2B more than prepandemic), with Americans paying an average of at least $100 for goodies like fun-size candy bags, pumpkin plates, and wacky wigs (FYI: __[Home Depot](https://robinhood.com/stocks/HD/)__ sold out of its viral $200 life-size skeleton in one day). __[Hershey](https://robinhood.com/stocks/HSY/)__ is thriving on its sweet-and-salty strategy and expects Halloween candy to make up 10% of its annual sales.

Zoom Out

Stories we’re watching...

- __[Jeezy](https://snacks.robinhood.com/newsletters/419JPU4iKFubhqsgTFUD7I/articles/e8sgVKCwr2g0Q13CQXp4h/):__ After 19 days of public backlash, __[Adidas](https://robinhood.com/stocks/ADDYY/)__ ended its partnership with Kanye West’s __Yeezy__ (nearly 10% of its revenue) after he made antisemitic statements. Balenciaga, __[Gap](https://robinhood.com/stocks/GPS/)__, __[Foot Locker](https://robinhood.com/stocks/FL/)__, and __CAA__ also dropped ties with West. 
- __[Zucked](https://snacks.robinhood.com/newsletters/419JPU4iKFubhqsgTFUD7I/articles/6tQrME9GLxpQ09CKaElahE/):__ It was a rough week for Meta, whose shares have plunged 28% after it reported "train wreck" earnings. Investors weren't sold on Zuck's vision of the metaverse, or the company’s $15B splurge on it.
- __[Feast](https://snacks.robinhood.com/newsletters/540cTuIpTqabq5PMret6Zx/articles/2cgO2YYLyxyIsoqJLc9P0r/):__ YouTube star MrBeast is said to be seeking a $150M investment to boost his empire, from viral videos to Beast Burgers. VCs interested in access to his 107M+ YouTube subscribers may see it as "fans as a service.”

ICYMI

Last week's highlights...

Candy corn was originally called “Chicken Feed” and came out when farmers made up half of the US labor force

🎨 AI gets (scary) creative

__Primed for a slowdown…__ Yesterday __[Amazon](https://robinhood.com/stocks/AMZN/)__ became the latest techie to deliver uninspiring third-quarter earnings. The ecomm staple missed both sales and profit expectations, but what disappointed investors most was a weak forecast for *this* quarter. After the bell, Amazon shares tumbled by as much as 20%.

- __The bull(ish):__ Amazon’s sales returned to double-digit growth, and it posted its first profit of the year (though it was 9% lower than last year).
- __The bearish:__ Amazon expects this holiday quarter’s sales to be up just 2% to 8% from last year — a major growth slowdown from previous quarters. 
- __The bear:__ Investors sent Amazon shares plunging, marking the second time this year the stock has suffered a double-digit-percentage selloff.

__Quote of the quarter…__ from the mouth of Amazon CEO Andy Jassy to investors’ ears: “There is obviously a lot happening in the macroeconomic environment.” Amazon’s much-lower-than-expected Q4 sales guidance includes a big hit from the strong US dollar. 

- __Because the USD has appreciated__ relative to other currencies, foreign earnings are now worth less in USD. That’s a problem, because S&P tech giants earn about 60% of their revenue abroad.
- __Amazon’s international sales fell__ 5% year over year, but they would’ve been up *12%* if it weren’t for changes in foreign exchange rates.

Amazon’s spooky earnings (Patrick T. Fallon/Getty Images)

Sink

__Big Techies are in the same boat…__ Oil titans like __[Shell](https://robinhood.com/stocks/SHEL/)__ are still reporting booming profits, while big food staples like __[Coke](https://robinhood.com/stocks/KO/)__ are raising their outlook on upbeat earnings. But for the likes of Amazon, __[Google](https://robinhood.com/stocks/GOOGL/)__, and Meta, the pandemic growth spurt is over — and the “macroeconomic” problems have landed. Now investors’ expectations are being adjusted as forecasts come back down to earth.

Amazon shares tumble on a bummer forecast, highlighting a Q3 theme for tech titans

__Spend 100 days in a circle, win $500K…__ typical MrBeast. YouTube star MrBeast has 107M+ subscribers thanks to viral videos featuring elaborate stunts and giveaways (his “Squid Game” [reenactment](https://www.youtube.com/watch?v=0e3GPea1Tyg) has nearly 300M views). Now he’s said to be [looking](https://www.axios.com/2022/10/25/mrbeast-youtube-fundraising-merch-restaurants) for $150M in fresh funding to expand his Beast-based businesses:

- In January: MrBeast launched his snacks biz (dubbed: __Feastables__), which has already made $10M+ in sales. 
- __Last month:__ The first __MrBeast Burger__ restaurant opening attracted 10K fans, and the burger brand is forecast to earn millions this year. 
- __Beasty billions:__ The desired funding round would value MrBeast’s empire at $1.5B — the largest valuation for an influencer-led biz.

__Venture capital → creator capital...__ Investors are racing to put their money in social-media startups as overnight sensations emerge from platforms like __TikTok__ and YouTube. VC funding for creator startups has already topped $637M this year, on pace to beat last year’s record. Now some of the biggest social stars want in:

- __TikTok big shot Charli D’Amelio__ and her family launched a venture-capital fund called __444 Capital__ in March. 
- __Last year__ a venture firm invested $15M in startup __Pietra__, which helps influencers launch their own product lines (think: skincare).

Viral

__Creators offer fans-as-a-service…__ Social-media stars are ripe targets for investors given their ability to make content, build audiences, *and* capitalize on both — all in a self-promoting cycle of content, eyeballs, and products. Mega-creators like MrBeast can offer their empires on a platter, which could translate to big returns. Last year, MrBeast generated $54M in revenue, or $147K/day.

YouTube star MrBeast could hit billionaire status with the help of VC funding, as investors look to “fans as a service”

- __🤖 Techy…__ __[Apple](https://robinhood.com/stocks/AAPL/)__ stepped in it (it = NFT community). It seemingly embraced NFTs by saying apps could list and sell the tokens. The [catch](https://www.cnbc.com/2022/10/25/apple-tightens-its-rules-on-crypto-and-nfts-in-its-app-store.html): purchases have to go through the App Store (read: Apple wants its 30% cut). 
- __🪙 Coins…__ Sam Bankman-Fried said his crypto exchange, __FTX__, would "[very likely](https://www.coindesk.com/business/2022/10/27/crypto-exchange-ftx-is-working-on-creating-a-stablecoin-report/)" launch a stablecoin. The exchange is the world's third largest, and would likely be well positioned to compete with stablecoin giants __[Tether](https://robinhood.com/crypto/USDT/)__ and __Circle__.
- __📜 Policy…__ Bring on the rules: a recent survey found that slightly over half of US voters want greater crypto [regulation](https://www.coindesk.com/policy/2022/10/26/a-majority-of-us-voters-want-more-crypto-regulation-poll-shows/). Stability and fraud-fighting were called out as the desired top priorities of any future regs. 

Bark

The Crypto Catch-Up…

After plunging yesterday, Meta was worth less than Home Depot

🐻 Amazon’s bearish forecast

__All eyes on Mobileye…__ They grow up so fast. Chip giant __[Intel](https://robinhood.com/stocks/INTC/)__ bought Israeli self-driving-tech startup __Mobileye__ for $15B in 2017. Yesterday, Mobileye [hit](https://www.cnbc.com/2022/10/26/mobileye-pops-more-than-30percent-in-ipo-after-spinning-out-of-intel.html) public markets solo at a $17B valuation. Shares soared 38% in the best opening day for a major US IPO this year. 

- __All-seeing eye:__ Mobileye makes cameras, chips, and software for autonomous and driver-assist features. It partners with 50+ carmakers, including __[Volkswagen](https://robinhood.com/stocks/VWAGY/)__, __[GM](https://robinhood.com/stocks/GM/)__, and __[Ford](https://robinhood.com/stocks/F/)__. 125M cars use Mobileye’s driver-assist tech.
- __“Spin offerings”__ are sizzling, though 2022 is tracking to be the worst year for US IPOs in decades. Like Intel, __[VW](https://robinhood.com/stocks/VWAGY/)__ and __[AIG](https://robinhood.com/stocks/AIG/)__ both successfully [spun off](https://snacks.robinhood.com/newsletters/2G8tXvkEcBas5VqekX1vse/articles/n1dClWqs3MzZfLu8pFSsf/) divisions earlier this year. 

__Life in the slow lane…__ Self-driving hype has largely hit the brakes in recent years — but hasn’t come full stop. Back in the day, __[Tesla](https://robinhood.com/stocks/TSLA/)__, GM’s Cruise, and Google’s Waymo promised fully self-driving cars by 2020. Despite $100B in autonomous investments, most self-driving cars today can’t even make a left turn. Still, there’s been progress: 

- __Robotaxi revival:__ This month __[Uber](https://robinhood.com/stocks/UBER/)__ signed a 10-year deal with Hyundai- and [Aptiv](https://robinhood.com/stocks/APTV/)-owned Motional to offer driverless rides, after selling its self-driving biz in 2020.
- __Still trucking:__ __[TuSimple](https://robinhood.com/stocks/TSP/)__ completed a 100% driverless-truck trip this year. Some analysts predict autonomous trucks will become an even bigger biz than self-driving cars.

Self-driving to the bank (Alexi Rosenfeld/Getty Images)

EyeP.O.

__Sometimes it pays to go slow…__ especially when the path to profitability is long. Mobileye’s valuation has risen in the past five years while __Waymo’s__ has plunged 80%. One reason: unlike Waymo, Mobileye also sells *semi*-autonomous tech for mainstream cars like VW Passats. That consistent revenue could help Mobileye become profitable before its pure self-driving peers: last quarter, Mobileye’s losses narrowed to just $7M from $21M last year.

Mobileye soars 38% in the year’s strongest IPO as self-driving tech (slowly) advances

__It's not just your cousin Todd…__ You know a downturn's serious when the VCs are hurting. Silicon Valley investing big shot __Andreessen Horowitz__ (aka: a16z) [reportedly](https://www.wsj.com/articles/andreessen-horowitz-went-all-in-on-crypto-at-the-worst-possible-time-11666769270) lost billions in unrealized gains as the crypto market crashed. That's after it launched a $4.5B crypto fund in May, right as Terra's collapse kicked off crypto winter. This year alone the crypto-bullish firm took a $2.9B hit on its __[Coinbase](https://robinhood.com/stocks/COIN/)__ investment, while its __[solana](https://robinhood.com/crypto/SOL/)__ holdings lost 80% of their value. It's not just a16z: 

- __Messla:__ Last week Tesla reported a $170M impairment loss on __[bitcoin](https://robinhood.com/crypto/BTC/)__ in the first nine months of the year. 
- __Rock:__ Jack Dorsey's __[Block](https://robinhood.com/crypto/SQ/)__ said it had a second-quarter bitcoin-impairment loss of $36M (it reports Q3 earnings next week).

__Down but not out…__ Crypto's institutional players may be bleeding cash, but they're still hoping for an infusion. On Tuesday, __FTX__ founder Sam Bankman-Fried said he's looking for fresh investment dollars. The goal: use the $$ to draw more retail investors to his exchange (picture: lots of cousin Todds). 

Crypt-ouch

__Being a true crypto believer isn’t cheap…__ While cousin Todd may not have the financial security to stick out crypto winter, institutional players like a16z insist they're here for the long haul — and have the billions-backed privilege to give it a shot. The firm announced nine crypto-startup deals last quarter, and its crypto king, Chris Dixon, talked up the company's "long-term horizon." But as the billions in losses show, faith in crypto's tomorrow can cost dearly today.

Venture-capital titan Andreessen Horowitz lost billions on crypto, but big fish aren’t jumping the pond

The UK’s new prime minister and his wife are estimated to be worth over $800M, placing them among the 250 wealthiest British households 

👀 A Mobileye-opener

__Yeezy out…__ After 19 days and a storm of backlash, __[Adidas](https://robinhood.com/stocks/ADDYY/)__ has [cut](https://www.nytimes.com/2022/10/25/business/dealbook/adidas-kanye-west-antisemitism-terminates-partnership.html) ties with Kanye West, ending his billionaire status. The rapper and Yeezy founder has faced public criticism (even from his ex [Kim K](https://twitter.com/KimKardashian/status/1584581098377707522)) after making antisemitic comments, among other offensive statements. Over the weekend in LA, West’s outbursts [emboldened](https://www.nbcnews.com/news/us-news/banner-kanye-right-los-angeles-freeway-antisemtic-group-rcna53653) neo-Nazi activists to stage anti-Jewish protests. Now Adidas is ending production of Yeezy products and stopping all payments to Ye. 

- __Going back:__ Since launching in 2013, Adidas’ Yeezy partnership has raked in $2B in annual sales (about 10% of Adidas’ revenue).
- __Going forward:__ This year alone Adidas expects to lose $246M — and next year could lose $400M.

__Ye’s corporate catastrophe…__ As West’s reputation grows increasingly unstable, other partners are cutting ties too. This month, luxe fashion house Balenciaga ended its collab with West, and talent agency __CAA__ also dropped him. Last month, West's lawyers sent a letter to __[Gap](https://robinhood.com/stocks/GPS/)__ with plans to terminate his 10-year deal (which had been on track to become a billion-dollar brand). It’s not the first time businesses have been burned by celeb ties:

- __In 2009,__ Tiger Woods lost $50M in sponsorship deals after his extramarital-affairs scandal. 
- __Last year,__ mega beauty influencer James Charles reportedly lost millions in sales after cosmetics brand __Morphe__ dropped him over sexual-misconduct allegations.

Business with Yeezy isn’t easy (Jonathan Leibson/Getty Images)

Ye-ouch

__You are who you’re linked to…__ Bad news for celebrities often means bad news for the companies that profit off them. While lots of A-list partnerships have helped sales skyrocket, there’s always the risk a celeb could burn their reputations. Kanye’s fallout is another example of how having close ties to celebrities isn’t always a stable biz model.

Adidas finally ends its lucrative partnership with Kanye’s Yeezy, exposing the flip side of collabs

__Earnings call in the metaverse…__ Not quite there yet. All eyes are on __[Meta](https://robinhood.com/stocks/META/)__, which reports today after the bell. In its June quarter, Zuck’s dorm-room baby had its first-ever drop in revenue since going public as ad sales sagged. While users ticked up, profit tanked 36%. Expectations are low today: 

- __Sales slump:__ Analysts expect Meta’s quarterly revenue to come in around $27.5B, which would represent a 5% drop from last year. 
- __Profit hit:__ As Meta splurges billions on its meta-ambitions, analysts expect a 42% profit plunge, on average. 
- __Since expectations are so low__ and wide ranging, an earnings surprise could boost Meta stock, which this year is down 60% (the S&P 500 is down “only” 20%). 

__Does the metaverse have legs?...__ Meta’s avatars still don’t. Meta’s motion-capture [leg teaser](https://www.theverge.com/2022/10/13/23403650/horizon-metaverse-legs-demonstration-motion-capture) may be the perfect metaphor for its current conundrum. After spending $15B+ on its meta-revamp, Meta’s struggling to attract users (and even its own employees) to its flagship Horizon Worlds. A few barriers: 

- __Empty worlds:__ Horizon Worlds users have been declining since spring, and it now has fewer than 200K, [according](https://www.wsj.com/articles/meta-metaverse-horizon-worlds-zuckerberg-facebook-internal-documents-11665778961) to documents seen by The Wall Street Journal. Most visitors don’t return after the first month, and most “worlds” are never visited. 
- __Empty wallets:__ Horizon Worlds is accessible only through Meta’s pricey Quest VR headsets. Its $1.5K headset may not be the most #relatable Hanukkah gift, but Meta says it plans to expand Worlds to web and mobile.

Reality

__It appears that investors aren’t sold…__ on what Meta says is its biggest selling point: the meta-future. This week, major Meta shareholder __Altimeter Capital__ published a critical letter saying the company should slash headcount expenses by 20% and curb meta-investment to $5B/year max. Meta says its vision will take years to realize, but investors aren’t convinced that it should shift attention from its OG social apps, which have 3.5B+ monthly users combined.

Investors aren’t sold on Meta’s VR ambitions ahead of its earnings report today

Adidas ends its lucrative partnership with Kanye’s Yeezy, exposing the flip side of collabs

China isn’t expected to overtake the US as the world’s largest economy until 2060, if ever

👟 Kanye’s fashion fallout

__The Party (meeting) is over…__ and Chinese companies are nursing a hangover. Yesterday __[Alibaba](https://robinhood.com/stocks/BABA/)__, __[Pinduoduo](https://robinhood.com/stocks/PDD/)__, __[JD.com](https://robinhood.com/stocks/JD/)__, __[China Telecom](https://robinhood.com/stocks/CHA/)__, and __[NetEase](https://robinhood.com/stocks/NTES/)__ [lost](https://www.wsj.com/livecoverage/stock-market-news-today-2022-10-24/card/five-biggest-chinese-adrs-lose-nearly-60-billion-in-market-value-oW9zHrsNv6sgbVbmFB3N) $52B+ in market value, and Hong Kong’s __Hang Seng__ index plunged to its lowest level since 2009. One reason: China’s Xi Jinping won an unprecedented third term as president and installed his loyal allies into positions of power. Here’s why that spooked markets:

- __Privatization nation:__ Xi’s cracked down on public companies with greater regulation and strict zero-Covid policies. Now some analysts say China is “uninvestable.”
- __Injured giant:__ This week China also reported worse-than-expected GDP growth. Yesterday __[Goldman Sachs’](https://robinhood.com/stocks/GS/)__ China Index fell 20% to its lowest point in a year.

__A(nother) final straw…__ Tensions between Washington and Beijing remain high. In recent months, Chinese companies like __[DiDi Chuxing](https://robinhood.com/stocks/DIDIY/)__ have delisted from US exchanges amid pressure from both sides. The US is ramping up scrutiny of Chinese companies like TikTok parent __ByteDance__ for national-security reasons. And this month President Biden limited exports of chips and tech to China (__Samsung__ and __[TSMC](https://robinhood.com/stocks/TSM/)__ got exemptions).

- __Bad blood:__ Just yesterday, the US Justice Department charged two Chinese officials with attempting to obstruct an ongoing investigation of Chinese telecom behemoth __Huawei__.

Looking down. (Kevin Frayer/Getty Images)

Party

__China’s role on the world’s stage is shifting…__ but it still has a leading part. Its share of US consumer imports has fallen in recent years partly because of Xi’s strict policies. But China is still the US’s top trading partner, and trade between the two countries is actually growing in many sectors. As the second-largest economy, China is big enough to affect markets everywhere: the IMF recently cited its slowdown when it lowered its growth forecast for the coming year.

Chinese stocks plunge after Xi takes unprecedented third term, rattling global investors

__PJs all day…__ kind of day. __[Walmart’s](https://robinhood.com/stocks/WMT/)__ reimagining its biggest sleepwear and intimates brand ahead of a competitive holiday season. Say goodbye to Walmart’s 20+-year-old “Secret Treasures” private label, which offered everything from robes to bras to satin sets. Say hello to Walmart’s Joyspun [line](https://www.cnbc.com/2022/10/24/walmart-joyspun-intimates-sleepwear-brand-launches.html), which features 300+ styles, more sizes (think: XS to XXXL) and new maternity options. Joyspun's starting strong:

- __One in five cozy-wear shoppers__ bought something from the Treasures label last year, earning the brand $1B in sales.
- __Joyspun’s splashy brand entry__ could lure new holiday shoppers hunting for affordable prices.

__Sleepwear showdown…__ During the pandemic, garment retailers catered to customers' need for comfort, better sizes, and body positivity. As Americans got used to hanging (and working) from home, the comfy-clothes trend stuck: sleepwear sales jumped 52% from prepandemic levels in the first nine months of the year, while intimates grew 15%. Still:

- __Rivals like [Victoria's Secret](https://robinhood.com/stocks/VSCO/)__ also shifted their brands to be more comfortable and diverse (think: plus sizes, multi-shade bras), but it hasn't supercharged sales.

Cozy

__Work-from-home may not be forever…__ but WFH *garments* might be. Even as inflation-conscious shoppers watch their budgets, must-haves like underwear and socks remain nonnegotiable. By revamping an already popular brand to put comfort and affordability first, Walmart hopes to offer more inclusive options for its current customers and luxury features (like: trendy colors, lacey patterns) for its high-income shoppers.

Walmart’s revamping its billion-dollar sleepwear brand as more retailers compete for the booming comfy-apparel biz

Chinese stocks plunge as Xi takes a third term, rattling global investors

This year over 60% of US holiday shoppers are expected to visit stores IRL — not just online

🇨🇳 China's stock shake-up

__[Budweiser](https://robinhood.com/stocks/BUD/) ad en route to the bar…__ Your next __[Uber](https://robinhood.com/stocks/UBER/)__ ride might be #sponsored. Last week the ride-hailer [announced](https://www.wsj.com/articles/uber-to-let-marketers-target-riders-by-destination-11666184402?mod=business_minor_pos7) plans to let marketers target riders based on their destination with “journey ads.” It’s showing ads *in* the app as part of its new media division, and is also piloting in-car tablets (think: __[Expedia](https://robinhood.com/stocks/EXPE/)__ commercial on the way to JFK). It’s been doing ads for years, though most have been sponsored listings on Uber Eats. 

- __5-star potential:__ Uber said its expanded ad biz could hit $1B in revenue by 2024, since ride-hail could pull in way more ad $$ than food delivery. Uber says riders will be able to click to buy a product without leaving the app.
- __*“Cars will become our next living rooms”* —__ Uber’s GM of advertising might’ve missed the WFH memo, but he could be right about growth potential. He said Uber’s ad revenue jumped to $141M last year from $11M in 2020.
- __Faster ETA:__ In August __[Lyft](https://robinhood.com/stocks/LYFT/)__ launched its advertising unit, Lyft Media, adding tablets that riders can interact with to some cars. 

__If there’s an eye, there’s an ad…__ the capitalist take on “if there’s a will, there’s a way.” When it comes to digital marketing dollars, the focus has always been on ad-reliant tech titans like __[Meta](https://robinhood.com/stocks/META/)__, __[Google](https://robinhood.com/stocks/GOOGL/)__, __[Twitter](https://robinhood.com/stocks/TWTR/)__, and __[Snap](https://robinhood.com/stocks/SNAP/)__. Now we’re seeing *retailers* building major ad businesses:

- __All in the grocery cart:__ __[Kroger](https://robinhood.com/stocks/KR/)__ was one of the first retailers to expand its ad biz beyond its own properties, letting brands use its shoppers’ data to target them on third-party sites. 
- __Data in the digital cart:__ __[Amazon](https://robinhood.com/stocks/AMZN/)__ raked in $31B in ad revenue last year, giving it a bigger ad biz than Snap and __[Microsoft](https://robinhood.com/stocks/MSFT/)__. It controls 78% of US retail media ad spend. 
- __US ad revenue__ is expected to surpass a record [$300B](https://www.axios.com/2022/10/19/attention-advertising-everywhere-uber) this year, partly thanks to unexpected players jumping in, from __[Dollar General](https://robinhood.com/stocks/DG/)__ and __[Dick's](https://robinhood.com/stocks/DKS/)__ to __[Petco](https://robinhood.com/stocks/WOOF/)__ and __[Ulta Beauty](https://robinhood.com/stocks/ULTA/)__.

Ad targeting has a new destination (Olly Curtis/Getty Images)

Eyes

__Data is an untapped profit puppy…__ for companies that have historically sold only products and services, not ads. Even __[Netflix](https://robinhood.com/stocks/NFLX/)__ — which renounced ads for years — plans on launching its ad tier next month. By building their own ad networks based on their customers’ browsing and shopping habits, companies can be less reliant on third-party data, which has become trickier to get after __[Apple’s](https://robinhood.com/stocks/AAPL/)__ major privacy changes. Still, the ad push could raise data-privacy eyebrows.

Uber launches in-app “journey ads” as unexpected players build major ad businesses with customer data

__Try putting it in rice…__ Shares of Google, Amazon, Microsoft, and Meta have plunged this year (even more than the broader market) as advertisers cut spending and high interest rates depress valuations. Last week, Microsoft cut 1K employees, adding to the 44K+ tech workers laid off in the US this year. Apple reportedly halted some iPhone 14 Plus production in China as demand cools, while Google’s forecast to have its slowest revenue growth in years. With rates on the rise, analysts aren’t expecting stellar results when techies report this week. 

__Still fizzy…__ Some snacks never seem to go out of style: grocery staples like __[Coca-Cola](https://robinhood.com/stocks/KO/)__, __[Kraft Heinz](https://robinhood.com/stocks/KHC/)__, and __[Campbell Soup](https://robinhood.com/stocks/CPB/)__ have outperformed the market this year as shoppers keep stocking faves like Kraft mac, eating the price hikes. This month snack giant __[Pepsi](https://robinhood.com/stocks/PEP/)__ [raised](https://www.nytimes.com/2022/10/12/business/pepsi-earnings-inflation.html) its annual forecast, betting on continued Cheetos demand through an economic downturn (consumer goods have historically been resilient during recessions). Still, shoppers are starting to swap name brands for cheaper store brands. We’ll see whether that shows when Coke and Kraft report.

__The downturn’s in the details…__ At first things looked OK when big banks reported last week: revenue [rose](https://www.wsj.com/articles/jpmorgans-third-quarter-profit-drops-17-on-recession-planning-11665747402?mod=article_inline) at __[JPM Chase](https://robinhood.com/stocks/JPM/)__, __[Wells Fargo](https://robinhood.com/stocks/WFC/)__, and __[Citi](https://robinhood.com/stocks/C/)__ thanks to inflated credit-card spending, beating forecasts. But the fine print was ugly: bank profits plunged as trading and deal-making activity slowed (think: fewer IPOs), while high interest rates plunged loan demand (think: mortgages). Banks expect it to get worse, so they’ve set aside billions to cover potential losses from loan defaults. Chase CEO Jamie Dimon expects an economic “hurricane.”

__The clock’s ticking…__ Millions of Americans will likely lose their health insurance when President Biden rolls back Covid aid policies (current expiration date: January 11). When corona was declared a public-health emergency, the government injected [billions](https://www.usaspending.gov/federal_account/075-0140) into resources like free testing and hiring more hospital workers. But with the emergency status set to end early next year, nearly 15M Americans could lose subsidized programs like Medicaid, which hit record enrollment during the pandemic. With hospitals already facing staff shortages, treatment could be even harder to get.

- __[CryptMo](https://snacks.robinhood.com/newsletters/2w4Yz9h0MKqDGCxkVe24sV/articles/U1hsrLoiylS59yYxV4Q6I/):__ Over half of active exchange-traded products that track crypto launched *after* the bear market set in. In other words, institutional investors and tech juggernauts (think: big $$) largely haven't bailed on crypto.
- __[Flex](https://snacks.robinhood.com/newsletters/Ptmyd0tfmIf94osqxOwqM/articles/6FF1JTrkpkIGzakqGsJvJA/):__ Netflix shares popped after it said it added 2.4M subs last quarter, its first gain of the year. Now it’ll stop sharing subscriber forecasts and crack down on password moochers as it laser-focuses on revenue.
- __[Krogertsons](https://snacks.robinhood.com/newsletters/3Hl3mc6sCkfmjzLxurSluj/articles/2ZU99eIEYGaFwEr5tLkHUp/):__ Grocery powerhouse Kroger said it'll buy rival __[Albertsons](https://robinhood.com/stocks/ACI/)__ for $25B. The super-merger is about more than just eggs and bread; it’s also about becoming a retail ad giant.

Uber launches in-app “journey ads” as unexpected players build major ad businesses

Some large spiders keep tiny frogs around because the frogs eat ants that threaten spiders’ eggs

📮 Uber’s ad-venture

__Off the hook…__ __[AT&T](https://robinhood.com/stocks/T/)__ shares had their biggest jump in two years after the wireless giant [reported](https://www.marketwatch.com/story/t-t-stock-gains-after-earnings-beat-driven-by-continued-subscriber-rush-11666263417) surprisingly good numbers. Last quarter the telecom titan added 708K wireless subscribers (100K+ more than Wall Street expected) and had its highest wireless revenue growth in over a *decade*. 

- __Heading out:__ AT&T raised its full-year forecast as pricier phone plans and the return of international travel (see: $10/day pass) help with sales. 
- __Hanging up:__ AT&T is saddled with $134B in debt (after taking a $93B hit on its WarnerMedia spinoff this year) and cut its cash-flow outlook as late payments pile up in its enterprise biz.

__5G energy…__ 5G can power everything from crisper gaming and video chatting to VR and self-driving cars, and has helped boost sales of __[Apple’s](https://robinhood.com/stocks/AAPL/)__ new iPhones. That’s why investors are curious to see how telecoms are making strides with the hot tech: 

- __AT&T__ said it would invest $48B in fiber-optic internet and 5G wireless services through 2023. Fiber can run 20X as fast as traditional broadband. 
- __[Verizon](https://robinhood.com/stocks/VZ/) plans__ to spend $10B upgrading its 5G services, and __[T-Mobile](https://robinhood.com/stocks/TMUS/)__ expects to cover 200M of its users with speed-boosting C-band 5G by the end of the year.

More bars, fewer problems (Spencer Platt/Getty Images)

Bars

__People hate skimping on their phones…__ even if it means cutting back on other expenses. AT&T is the first major wireless carrier to release earnings this quarter (Verizon and T-Mobile are next up). Its results suggest the wider industry could be insulated from inflation-strained budgets. With people spending more time on their phones than on their laptops, demand for 5G is surging.

AT&T shares had their best day since 2020 as Americans splurge on 5G and phone plans

__In the (Birkin) bag…__ Inflation is near a 40-year high and the global economy is on the downturn, but deep-pocketed shoppers are still snapping up $10K purses. Yesterday, luxury retailer __[Hermès](https://robinhood.com/stocks/HESAY/)__ [said](https://www.wsj.com/articles/demand-for-luxury-goods-defies-price-hikes-11666266813?mod=business_lead_pos11) its quarterly sales rose 24% from last year, while Gucci owner __[Kering](https://robinhood.com/stocks/PPRUY/)__ reported a 23% jump. As many industries brace for dwindling demand, luxe retailers see few signs of a slowdown:

- __Opportunity in opulence:__ Analysts expect luxury sales to rise 5% this year as shoppers splurge on Cartier watches, Dior scarves, and “[supremium](https://snacks.robinhood.com/newsletters/2G8tXvkEcBas5VqekX1vse/articles/n1dClWqs3MzZfLu8pFSsf/)” whips like Ferraris. 
- __Fashionably great:__ Last week __[LVMH](https://robinhood.com/stocks/LVMUY/)__ (which owns Louis Vuitton, Dior, Sephora, and Moët Hennessy) posted a bigger-than-expected 22% sales bump.

__A tale of bags and bag-nots…__ Business is booming for pricey products: luxury retailers can often raise prices without losing sales because wealthier shoppers are less sensitive to price increases. Hermès has already hiked prices 4% this year (twice as much as in previous years) and plans to jack up prices up to 10% in January. Chanel hiked the price of its classic purse three times last year — for a $3K total increase.

Ritzy

__The threshold’s higher for high rollers…__ Gucci belts aren’t made for tightening: Hermès expects business to keep booming because its customers aren’t worried about gas prices. Brands that cater to big spenders, like __[Ferrari](https://robinhood.com/stocks/RACE/)__, have recently *boosted* their profit forecasts as the superrich throw down for pricier products. Meanwhile, regular retailers like __[Walmart](https://robinhood.com/stocks/WMT/)__ and __[Target](https://robinhood.com/stocks/TGT/)__ have lowered their profit forecasts as everyday consumers continue to cut back.

Hermès sales soar as wealthy shoppers up their splurges while others cut back

- __🤔 Sus…__ A hacker who reportedly [squeezed](https://fortune.com/crypto/2022/10/17/a-solana-hacker-calls-67m-he-stole-from-the-mango-platform-a-profitable-trading-strategy/) $47M out of DeFi platform __Mango__ said he was playing by the rules. This so-called [financial hacking](https://www.bloomberg.com/news/articles/2022-10-20/-financial-hacking-plagues-defi-in-latest-setback-for-crypto) (think: using a crypto platform's own code to trade against it) is on the rise. 
- __📜 Policy…__ Speaking of which, __FTX's__ Sam Bankman-Fried is sick of big $$ payouts to crypto hackers (aka "[hack to return](https://snacks.robinhood.com/newsletters/3pu2eqXGgxUzOO2TUmyO9U/articles/XJSmBGfRmia6WTOddX2TI/)") and [proposed](https://www.bloomberg.com/news/articles/2022-10-20/billionaire-bankman-fried-tries-to-fix-crypto-s-hacking-problem) a "5-5 standard." Basically: DeFi platforms should offer hackers 5% or $5M (whichever is smaller). 
- __🪙 Coins…__ Proof-of-stake blockchain __Aptos__ launched on Monday and was greeted with a major selloff. Its token [plunged](https://decrypt.co/112368/aptos-token-plummetsapt-airdrop-early-network-participants) 40% on reports of low transaction speeds (4/second) and of devs and investors getting 49% of token supply.

Juiced

Liz Truss is set to become the shortest-serving British prime minister ever

🤳 AT&T’s 5G-fueled boom

__More twists than “Dahmer”…__ __[Netflix](https://robinhood.com/stocks/NFLX/)__ shares spiked 13% yesterday after investors learned it added 2.4M subs last quarter — its first subscriber gain of the year. Netflix had forecast adding just 1M after *losing* 1M through June. While profit ticked down from last year, revenue was up as subscribers kept bingeing through price hikes from earlier this year. Now Netflix will stop sharing subscriber forecasts as it focuses on revenue:

- __In with the new:__ Next month Netflix is set to launch its $7/month ad-supported plan in a dozen countries.
- __Out with the old:__ Netflix has said it’s going to crack down on the 100M households streaming without an account (no more mooching on your ex's password).

__Checking the Netflix Top 10…__ for show inspo. Netflix still accounts for about 8% of Americans’ TV watch time — more than Prime Video, __[Disney+](https://robinhood.com/stocks/DIS/)__, and Hulu. But as budgets suffer, more US adults have canceled Netflix than any other streaming service, and a quarter of users say they’ll cancel by the end of this year. To keep subscribers loyal, Netflix is splitting up season releases of hit shows (think: “Ozark” part one). Its cheaper ad tier could help too.

Netflix’s upside-down quarter (Beata Zawrzel/Getty Images)

Flex

__Resetting expectations is key…__ 2.4M new quarterly subs may’ve seemed like peanuts mid-pandemic (Netflix added a record 36M subs in 2020), but the reversal bodes well for a post-lockdown future. The company knows the new normal requires moneymakers *besides* subscription growth. By introducing ad revenue and cracking down on password-mooching, Netflix could show investors that subscriber #s aren’t the be-all and end-all.

Netflix ends its subscriber losing streak and shifts its focus to fresh revenue streams, resetting expectations

__Want that $300 North Face now…__ want to pay for it *later*. Buy now, pay later companies like __Klarna__, __[Affirm](https://robinhood.com/stocks/AFRM/)__, and __Afterpay__ help you sport that puffer ASAP and pay in monthly installments. You’ve probably stumbled across BNPL options at digital checkouts, but BNPL companies also have their own platforms to help you discover products and deals from brand partners. Now Klarna has given its site and app a [social-friendly](https://techcrunch.com/2022/10/19/klarna-launches-new-creator-features-and-shoppable-video/) revamp: 

- __Klarna launched TikTok-style shoppable videos__ (think: snappy makeup tutorials). The feature is already being used by Lady Gaga’s __Haus Labs__, __[e.l.f. Cosmetics](https://robinhood.com/stocks/ELF/)__, and others. 
- __It also unveiled a “Creator” app__ for brands and influencers to collab on campaigns.

__Hearting the “Holy Hydration” serum…__ After watching an e.l.f. skincare tutorial, all in the Klarna app. Klarna has 150M users BNPL’ing from its 450K retail partners, but it wants to be more than a payment option on a third-party site like __[Levi’s](https://robinhood.com/stocks/LEVI/)__ — it wants to be a *destination*. In recent years, social titans have been doing the opposite: trying to be more like shopping platforms. 

- __TikTok started allowing [Shopify](https://robinhood.com/stocks/SHOP/) merchants__ to add “shopping” tabs to their profiles and create mini storefronts. It’s also [experimenting](https://snacks.robinhood.com/newsletters/60hXCjH8B3zcyai2pfzMdS/articles/64T6hploVtg6WR7L8ZTm9W/) with live-stream shopping. 
- __[Facebook](https://robinhood.com/stocks/META/) launched Instagram Shop,__ letting businesses set up storefronts on their pages to sell products featured in posts.

Scroll

__Social + shopping = synergy…__ It’s the perfect pairing, but no one has really done it well yet — at least in the US. Social + shopping features are popularly combined on Asian superapps like __[Alibaba](https://robinhood.com/stocks/BABA/)__ and WeChat. “Social commerce” is predicted to grow 3X as fast as traditional ecomm over the next three years, so whoever makes it work could land a big opportunity.

Buy now, pay later darling Klarna launches shoppable video as ecomm players try to be social slayers (and vice versa)

Netflix ends its subscriber losing streak and shifts its focus to fresh revenue streams

In the past half century, animal populations have declined worldwide by nearly 70%