__It’s a dog-eat-dog-food world…__ and we’re all just living in it. The human economy isn’t doing too hot, but the pet economy is still thriving: Jam icon __[J.M. Smucker](https://robinhood.com/stocks/SJM/)__ struck a [deal](https://www.bloomberg.com/news/articles/2023-02-08/j-m-smucker-to-sell-pet-food-brands-to-post-for-1-2-billion?srnd=industries-v2) to sell its pet-food brands to cereal company __[Post](https://robinhood.com/stocks/POST/)__ for $1.2B. Smucker said that the brands (which include Rachael Ray Nutrish and Kibbles ’n Bits), will make $1.5 billion for the fiscal year. But Smucker isn’t shedding pets: it’ll focus on its fast-growing Milk-Bone dog snacks and Meow Mix cat food. 

__Grass-fed lamb for Fluffy…__ while you eat frozen peas. The pet-food biz is growing fast as Americans keep showering their fur babies with premium treats, despite inflation. __[Nestlé](https://robinhood.com/stocks/NSRGY/)__, aka: the world’s largest food company, makes pretty much anything that begins with "Nes" (presso, quik). But its biggest growth driver isn’t Nes-treats — it’s *pet* treats. 

- __Net-pet-so:__ In the first nine months of last year, Nestlé’s Purina PetCare unit was once again the largest contributor to organic growth.

- __One two pet:__ __[Petco](https://robinhood.com/stocks/WOOF/)__ has had 16 straight quarters of year-over-year sales growth as “pet parents continue to prioritize the health and wellness of their pets.”

- __Cereal pet lover:__ In 2018 __[General Mills](https://robinhood.com/stocks/GIS/)__ splurged $8B to buy Buffalo Pet Food, and last year it bought __[Tyson](https://robinhood.com/stocks/TSN/)’s__ pet-treats biz. It expects pet-related sales to accelerate this year.

- __Chewy chow:__ In its last reported quarter, __[Chewy](https://robinhood.com/stocks/CHWY/)__ [delivered](https://investor.chewy.com/news-and-events/news/news-details/2022/Chewy-Announces-Third-Quarter-2022-Financial-Results/default.aspx) accelerating double-digit sales growth and said it’s “a clear indication of the resiliency of the pet category.”

A gourmet meal for a good boy (Natalia Boychenko/Getty Images)

Fluffy

__Skimping on your (fur) babies is hard…__ While many Americans have been cutting back on personal purchases, they’re not trading down on their dependents, which is why the pet category has been so resilient. North American pet-food sales are expected to hit $64B+ in 2027, up from an estimated $49B last year.

As Americans keep spoiling their pets, companies invest in the fast-growing category

__One exchange to rule them all?…__ As __FTX__ died, __Binance__ thrived. The crypto exchange saw its share of global crypto spot trading grow by 7 percentage points after the November collapse of its onetime rival. As of last month, Binance [reportedly](https://www.ft.com/content/1fb69ad6-0c1a-4ebd-b2ea-720dc422eeb7) controlled 55% of all crypto spot trading (think: buying and selling of crypto at market price). And at the end of last year, it oversaw a whopping 92% of all __[bitcoin](https://robinhood.com/crypto/BTC/)__ spot trades. It's not just spot: last month Binance's share of on-exchange derivatives trading hit 61%. Now US-based exchanges are fighting over the scraps:

- __2nd (coin)place:__ Just 6.5% of crypto spot trading takes place on __[Coinbase](https://robinhood.com/stocks/COIN/)__, the second-largest exchange by trading volume.

- __Showing kraks:__ __[Crypto.com](https://robinhood.com/crypto/CRO/)__'s and __Kraken__'s spot trading market share has actually *declined* since FTX's collapse. 

__The bigger they are…__ Binance may be the world's largest crypto exchange by volume, but that doesn't mean it’s all smooth sailing. This week, the exchange said it would [suspend](https://www.bloomberg.com/news/articles/2023-02-06/binance-plans-to-suspend-us-dollar-transfers-using-bank-accounts) deposits and withdrawals of US dollars through bank accounts. And while Binance published a "[proof of reserves](https://snacks.robinhood.com/newsletters/2jedAlq0iN3kyZjhRJ7QXZ/articles/5LZm0DXxBdnT4jdK7CApd8/)" in December, the exchange said that an actual audit (aka: reserves + liabilities) wouldn’t happen for some time. Just last month it said it mistakenly mixed customers' crypto with token collateral.

Bidominance

__Crypto risks putting many eggs in one basket…__ At its core, crypto's about decentralization (picture: [DAOs](https://snacks.robinhood.com/newsletters/1894aHFyK3xA7bKiUzBNbg/articles/3eobFnULMb2A5W2BmYsEAO/), [DeFi](https://snacks.robinhood.com/newsletters/4BQOCvfFjpmfTUqq7GuMPh/articles/5yNLUw1csw4pCDO5DzKa0U/)). But as Binance's share of the market continues to grow, the industry is growing more concentrated along with it. That centralization creates crypto market risk, because if one big player falls (like: FTX), it could take large chunks of the industry down with it.

Binance now controls over half of crypto spot trading as the industry struggles with centralization

💰 __Spendy…__ The SEC said __Kraken__ would [close up](https://www.cnbc.com/2023/02/09/crypto-exchange-kraken-settles-with-sec-over-us-staking-operation.html) its crypto-staking program and pay a $30M fine. The regulator said the exchange had failed to properly register its program, which advertised up to a 20% yield. 

🪙 __Coins…__ One of the longest-running crypto exchanges, __LocalBitcoins__, said it's [shutting](https://www.coindesk.com/business/2023/02/09/bitcoin-exchange-localbitcoins-to-close-citing-market-conditions/) down. The 10-year-old biz initially grew to prominence by facilitating face-to-face [meetups](https://www.wired.com/2013/07/buttonwood/) where traders swapped $$ for BTC. 

📸 __Flashy…__ Revenue from dark-net markets [plunged](https://www.bloomberg.com/news/articles/2023-02-09/dark-net-revenue-plummeted-after-hydra-closure-chainalysis-says) by half last year, to $1.3B, a new report said. A main driver: last spring authorities shuttered Hydra, a Russian-language market for drugs and money laundering.

Staked

The Crypto Catch-Up…

Dow Jones

S&P 500

Nasdaq

Bitcoin

You’ve probably never seen anyone actually drinking beer in a beer commercial

🐶 Pet profit-palooza

__5 stars…__ __[Uber](https://robinhood.com/stocks/UBER/)__ reported a record $8.6B in quarterly revenue, with CEO Dara Khosrowshahi [saying](https://www.nytimes.com/2023/02/08/business/uber-revenue.html) it was the company's strongest quarter ever. That record represents a 49% jump on the year and was made possible by 131M customers hailing 2.1B rides — up from 1.7B a year earlier. Driving the growth:

- __Folks:__ Uber's rides biz, which makes up nearly half its total sales, was the fastest-growing unit last quarter with stretch-limo-sized 82% growth from last year. 
- __Freight:__ Uber’s freight biz, which connects semitruck drivers with high-volume loads (like trucks full of Pepsi), did $1.5B in revenue, up 43% from last year.
- __Fries:__ Its Eats delivery unit grew 21% from last year — a slower pace than during pandemic boom times, when it overtook Uber’s rides division.
- __Flyers:__ Uber also got a boost from recently introduced [in-app ads](https://snacks.robinhood.com/newsletters/74zHu2wNENpA7EgJyuw9OM/articles/7aqUbrU41BN6Q7GgITCtKZ/) (think: beer promo as you book your ride to the bar). 

__Pass the AUX cord…__ With Uber setting records, investors are all ears for __[Lyft's](https://robinhood.com/stocks/LYFT/)__ earnings, scheduled for today. The smaller of the two ride-hail whales, Lyft has long focused on moving *people* (instead of people *plus* Happy Meals). Lyft’s expected to have grown revenue by 19% from last year, to $1.1B+. But the fact that its prices were typically 10% higher than Uber's could have hurt bookings as people price-toggled between apps. 

Let the good times roll (Spencer Platt/Getty Images)

Hail

__Diversification can come in clutch…__ With the return to the office picking up steam — US offices passed the 50%-occupancy mark last week — Lyft's ride-centric biz could be primed for gains. Though Lyft could benefit from the same ride boom lifting Uber, its hyper focus on passengers could be a double-edged sword. Recall: Lyft got hit extra hard during the pandemic as ride-hail volumes plunged, while Uber had its food-delivery biz to fall back on.

Uber reports record revenue as the return to the office tees up the ride-hail biz for gains

__Mexican Pizza and Pete Davidson…__ the secret ingredients to Taco Bell’s strong quarter. __[Yum Brands](https://robinhood.com/stocks/YUM/)__ — which owns Taco Bell, KFC, and Pizza Hut (#KenTacoHut) — delivered expectation-beating sales and profit yesterday, largely driven by its shining star, T. Bell. Covid lockdowns weighed on Pizza Hut and KFC sales in China (KFC’s largest market). But same-store sales at US Taco Bells grew 11%. Some viral hits driving demand: 

- __Tortilla triumph:__ Execs said Taco Bell sold a whopping 45M Mexican Pizzas during the four months that the culinary creation was available last year (Dolly Parton is a [fan](https://news.yahoo.com/dolly-parton-loves-taco-bells-215231741.html)). 
- __Breakfast with Pete:__ Taco Bell’s breakfast biz is making a comeback as people return to offices, and an ad featuring [Pete Davidson](https://www.nrn.com/quick-service/taco-bell-s-breakfast-drives-strong-q4-results) generated breakfast buzz. 

__A mixed (takeout) bag...__ Pizza Hut had a solid quarter as consumers recovered from “[pizza fatigue](https://www.cnbc.com/2023/02/08/yum-brands-yum-earnings-q4-2022.html)” after over-ordering during lockdowns. The Hut also got a boost from demand on delivery platforms and cheaper pizza-novations like Melts, which attracted folks with lower incomes. Some other fast-eating results: 

- __Burrito bust:__ __[Chipotle](https://robinhood.com/stocks/CMG/)__ disappointed as transactions fell for the second straight quarter. It’s hiked prices a lot, but says it hasn’t seen backlash to its inflated bowls. 
- __McWin:__ __[McDonald’s](https://robinhood.com/stocks/MCD/)__ had strong earnings last quarter after lowering prices, as consumers [returned](https://snacks.robinhood.com/newsletters/hVxJ5P0UXNj7GiarHRYHR/articles/4MlfzoaeNBLMSQ0Pc0ru6y/) for its affordable staples. 

KenTaco

__“Value” has become more valuable…__ because both high and low-income consumers are trading down for better deals. While Yum hiked some prices, it kept a mix of affordable items. Yum’s CEO said, “We’re winning because of value.” But Chipotle’s relatively pricey bowls may’ve unwhetted some appetites. Now even it says it doesn’t have plans for more hikes this year. 

Taco Bell’s parent outperformed on Mexican Pizza, Pete Davidson, and the new buzzword: “value”

Uber reports record revenue as the return to the office tees up a ride rebound

Washington, DC, has more tech-job openings than Silicon Valley

🚘 Uber's ride record

__Sail away…__ to near-record bookings. __[Royal Caribbean's](https://robinhood.com/stocks/RCL/)__ stock jetted up 7% yesterday after the cruise conglomerate [reported](https://www.barrons.com/articles/royal-caribbean-beats-earnings-strong-bookings-51675775715) expectation-beating #s. The boaty biz, which also operates Celebrity Cruises and Silversea Cruises, still *lost* $500M — but that was less than half of its year-ago loss. Analysts say strong demand combined with higher ticket prices could make for smoother financial sailing. Last quarter, booking volumes blew prepandemic bookings out of the water. Royal’s not the only one working on a cruise comeback:

- __Come one, come all:__ __[Carnival](https://robinhood.com/stocks/CCL/)__ execs said they expect first-quarter bookings to hit 90% of 2019 levels, and this year the stock is up about 50%. 
- __Not-so-rough waters:__ __[Norwegian Cruise Line](https://robinhood.com/stocks/NCLH/)__ said last year’s bookings matched prepandemic levels (and at record prices). This year its stock is up 47%. 

__Round trips and road trips…__ It’s not just Cruise companies getting a consumer-powered boost. Last month, __[American Express'](https://robinhood.com/stocks/AXP/)__ CFO said that spending on experiential splurges like travel and entertainment is "off the charts." And airlines like __[Delta](https://robinhood.com/stocks/DAL/)__ and __[United](https://robinhood.com/stocks/UAL/)__ reported expectation-beating profits last quarter as demand stayed strong despite sky-high fares. Meanwhile, __[Disney](https://robinhood.com/stocks/DIS/)__ (which reports earnings today) is expected to show strong revenue gains from its theme parks. 

Break out the piña coladas (MyLoupe/Getty Images)

POSH

__YOLO spending's becoming a lifestyle…__ because the pandemic elevated the value of real experiences. Despite historically high inflation and historically low consumer sentiment, people are still “[revenge spending](https://snacks.robinhood.com/newsletters/537dMBHls4pXZImAT8l4a5/articles/79VCq2iiUC01NTlHhU61PT/)” on socially good times like cruises, flights, and amusement parks. As the cruise industry's "wave season" heats up (picture: promos offered from January to March), we'll see whether YOLO spending continues to maintain its grip on many Americans’ pocketbooks. 

Royal Caribbean's blowout bookings show YOLO spending charging full steam ahead

__Checking the Powell-meter…__ When J. Powell speaks, investors listen. Yesterday the Fed chair sat down for a midday Q&A sesh in DC. It wasn’t as big a moment as a Fed meeting, but after last week’s killer jobs report, investors were eager for any clues about a policy shift — especially after Atlanta’s Fed chief [said](https://www.bloomberg.com/news/articles/2023-02-06/fed-s-bostic-says-higher-peak-rate-on-table-after-jobs-blowout?srnd=premium) that a higher peak rate was on the table. 

- __Thing Powell said that the market liked:__ J-Pow acknowledged that “disinflation has begun” in the goods sector, which makes up a quarter of the US economy. 
- __What the market *didn’t* like:__ If the labor market continues strengthening and inflation climbs further, Powell said the Fed might need to make higher-than-expected hikes. 
- __Bike hikes:__ When asked how he de-stresses, Powell said, “I like to ride my bike.” 

__Climbing up that rate hill…__ Mixed economic data, coupled with Fed comments, has been giving the market whiplash. Stocks popped last week after J-Pow acknowledged that inflation is cooling at the Fed’s meeting (the first time he mentioned “disinflationary” trends). But on Friday stocks fell after news that the US had added a shockingly strong 517K jobs last month while unemployment fell to 3.4% — its lowest level in 53 years. When the Fed meets in March, it’ll have yet another month of jobs and inflation data to inform its next hike decision.

__When optimism’s high, disappointment’s likely…__ Investors are obsessed with the Fed because rising rates tend to lower stock prices, discourage spending, and cool economic growth (aka: the Fed’s goal). The market may have gotten ahead of itself, but now it’s pricing in higher expectations of Fed tightening. Yesterday Powell said that reaching acceptable inflation levels is going to take a while: “My guess is it will take certainly into not just this year, but next year to get down close to 2%.”

J. Powell (gently) reins in expectations after stocks popped on “disinflation” optimism

🏡 *When your neighbor's home improvements have you wondering if they're about to sell…*

A major update, dubbed the “[Shanghai hard fork](https://www.barrons.com/articles/ethereum-price-crypto-market-coinbase-stock-51675789767),” is said to be coming to __ethereum__ next month. When completed, validators — people who’ve locked up ether as collateral in a process called "[staking](https://snacks.robinhood.com/newsletters/1wtJg97QxjQGWOy95mSzca/articles/4PkMBBDA5ADxTIJm447Hdh/)" — will finally be able to sell their staked ETH. Yesterday developers successfully tested withdrawing staked ether ahead of the fork. There are about 16M staked ether worth $26B. Some investors worry the fork could spark a mass sale.

DEFI(NE)

Heard on the Block: "Shanghai hard fork"

Black taxpayers are at least 3X as likely to face IRS audits, partly because of bias in algorithms

🚢 Cruise companies’ YOLO wave

__Bring on the prompts…__ Yesterday __[Google](https://robinhood.com/stocks/GOOGL/)__ rolled out its response to the existential threat posed by __OpenAI’s__ ChatGPT. Meet [Bard](https://blog.google/technology/ai/bard-google-ai-search-updates/). Google said its ChatGPT rival has been released to “trusted testers” and will be available to the public in the coming weeks. Bard, which is built on Google’s mighty language-processing model, LaMDA, pulls info from the web to craft “fresh, high-quality” responses. Google also announced plans for ChatGPT-like search features:

- __Conversational search…__ minus the “hey, Google.” The company said it’ll soon integrate genAI into web search for queries with more than one right answer. Think: a package of narrative results that distill “complex information and multiple perspectives into easy-to-digest formats.”

__May the best bot win…__ Google isn’t a newcomer to the AI game. It literally invented the “T” in ChatGPT (the “transformer” tech that powers it). But after ChatGPT was released free to the public, Google likely felt pressured to introduce Bard earlier than planned — and to protect its profit-puppy search biz. It has the upper hand since it already runs the go-to search engine, but competition’s steep: 

- __ChatGPT Plus:__ not a streaming service. Last week OpenAI announced a $20/month subscription for a premium version of ChatGPT (think: less downtime). It could set the standard for genAI monetization. And unlike Google, it doesn’t have ads… *yet*. 
- __Bing (plus ChatGPT):__ __[Microsoft](https://robinhood.com/stocks/MSFT/)__, which has invested billions in OpenAI, said it plans to integrate genAI tools into all its products, and it’s [reportedly](https://www.theverge.com/2023/2/3/23584675/microsoft-ai-bing-chatgpt-screenshots-leak) on the cusp of adding ChatGPT to its search engine, Bing. 

Battle of the bots (Jakub Porzycki/Getty Images)

Battle

__The chatbot wars have begun…__ Google’s Bard announcement came on the heels of OpenAI’s plan to monetize ChatGPT. Meanwhile, after Google announced it was entering the chatbot game yesterday, *Microsoft* announced last-minute plans to host a news event *today* (coincidence?). There’s speculation that Microsoft could roll out a ChatGPT-related service (OpenAI CEO Sam Altman tweeted that he was “excited” for the event).

Google launches a ChatGPT competitor to protect its search dominance as the bot battle begins

__Hello, Booze Bowl…__ At the 57th Super Bowl on Sunday, viewers’ll get an eyeful of more than just football. For the first time since 1989, Bud maker __[Anheuser-Busch InBev](https://robinhood.com/stocks/BUD/)__ will *not* be the exclusive alcohol advertiser. Expect more sip suppliers this year: __[Crown Royal](https://robinhood.com/stocks/CCK/)__, __[Heineken](https://robinhood.com/stocks/HEINY/)__, __[Molson Coors](https://robinhood.com/stocks/TAP/)__, and __Rémy Martin__ will all [run ads](https://apnews.com/article/kansas-city-chiefs-philadelphia-eagles-super-bowl-sports-fox-corp-5d9922047c7fb640ddbf8caf5100ece2) alongside AB InBev's three minutes of airtime. 

- __Are you ready for some eyeballs…__ The Bowl is the most-watched event in US sports, making it a top marketing opp. 100M+ people are expected to watch Super Bowl LVII. 
- __$$econds:__ __[Fox](https://robinhood.com/stocks/FOX/)__, the broadcaster, said it sold some 30-second spots for a record $7M+, and that all in-game ad slots are booked. 

__Goodbye, Crypto Bowl…__ Last year's big game was dubbed the "Crypto Bowl" as blockchain behemoths __[Coinbase](https://robinhood.com/stocks/COIN/)__, __Crypto.com__, __eToro__, and __FTX__ flooded the ads zone (think: "fortune favours the brave" and "don't be like Larry"). The crypto-sphere was in high spirits, and crypto cos spent $54M on ads. Now, with companies feeling crypto winter's chill, Fox says there are *no* crypto ads scheduled to air during this year’s Bowl. That leaves plenty of room for alcohol giants to fill the gap.

Gulp

__The familiar thrives in uncertain times…__ With celeb endorsements pouring in last year, crypto got a mainstream boost from Super Bowl viewers. But after FTX’s implosion, they may be less receptive to upbeat and edgy crypto-mercials. Beer, on the other hand, is a familiar football companion that many can get behind — and booze powerhouses are keen to capitalize on that.

The Super Bowl is poised to become the “Booze Bowl” as brewers rush to fill crypto's ad void

Google launches a ChatGPT competitor to protect it search dominance as the bot battle begins

Beyoncé is now the most awarded artist in Grammys history with 32 shiny wins

🤖 Google’s chatbot battle

__Pump it up…__ Energy powerhouses pulled in ginormous profits last year, continuing a multiyear streak of blockbuster earnings. Last week, __[Exxon](https://robinhood.com/stocks/XOM/)__ reported a historic $56B profit for 2022, the biggest for *any* Western oil biz ever. __[Shell](https://robinhood.com/stocks/SHEL/)__ also rang in a slick annual profit, which was *$10B* higher than its last record, in 2008. Meanwhile, __[Chevron](https://robinhood.com/stocks/CVX/)__ pulled in a record $35B, but fell short of expectations. Up next: __[BP](https://robinhood.com/stocks/BP/)__, __[TotalEnergies](https://robinhood.com/stocks/TTE/)__, and __[Valvoline](https://robinhood.com/stocks/VVV/)__ report this week.

- __Full tank:__ Rather than ramping up production, oil giants are investing in themselves — and their shareholders. Last week Chevron agreed to buy back a whopping $75B of its shares, and last year Exxon tripled buybacks to $30B. 
- __Big crank:__ Western oil biggies are expected to have earned a combined $200B in profit last year, reigniting talks among US lawmakers about imposing a windfall tax on their excess earnings.

__Drilling down…__ For much of last year, oil giants benefited from rising prices as Russia’s war on Ukraine strained supply and demand rebounded while production stayed tight. But in the last quarter of the year, gassy growth slowed as prices fell. This year, big oil’s profit boom is expected to cool. Pump prices have dropped 30% from last year’s highs, as the global economy slows and recession jitters curb demand. Still, with China’s reopening, analysts predict oil could climb as high as $120/barrel (China’s the world's second-largest oil consumer behind the US).

Pump Anxiety flashbacks (Win McNamee/Getty Images)

Slick

__It could be big oil’s big finale…__ before the fall. Last week, oil titan __BP__ said it expects renewables will make up 35% to 65% of the energy market by 2050, up from just 10% today. The pivot from fossil fuels to green energy could be accelerated by the “energy trilemma” (affordability, security, sustainability). Last year, clean-energy investment hit a record $1T, matching fossil-fuel investment for the first time. It’s expected to hit $2T by 2030.

Oil giants are (still) raking in historic profits, but it could be a grand finale as green energy ramps up

__Closing the gap…__ As America’s fastest-growing group of entrepreneurs, Black women are increasingly [leaving](https://snacks.robinhood.com/newsletters/349vN9seEikUONVdVtRvP0/articles/uMbh670ekDujd6duoyTol/) corporate roles to launch their own companies — starting businesses at 4.5X the rate of the overall population. But while the rate of Black entrepreneurship is high, bias and funding gaps pose roadblocks to growth. As of January 2022, just 4% of Black businesses were still open after 3.5 years, compared to the national average of 55%. A key issue: Black startups, especially those run by women, tend to have less access to funding.

__Spot the bots…__ Last week __OpenAI__ announced a $20/month premium subscription for ChatGPT. More quietly, it [released](https://www.wsj.com/articles/chatgpt-creator-releases-tool-to-detect-ai-generated-text-calls-it-unreliable-11675204820) a tool that detects AI-generated text. It could be especially useful for teachers and employers looking to spot bot submissions — but OpenAI said it fails 75% of the time (womp). Meanwhile, an app called GPTZero uses __ChatGPT__ against itself to detect AI. There’s growing concern over the use of genAI tools for cheating, plagiarism, and spamming. AI detection tools could be key to addressing these issues — but first they’ll have to get reliable. 

Zoom Out

Stories we’re watching

__Rolling in Corollas…__ __Toyota__ reports earnings this week along with __Nissan__ and __Honda__. Toyota has been the world’s top-selling carmaker for three years straight, but auto sales in general have been losing traction. Last year was the worst for new-car sales in 10+ years as production issues hit supply (picture: record-low inventories). Meanwhile, higher interest rates are making car payments pricier, which could ding demand. But while __Ford__ reported weak #s last week, Chevy maker __GM__ infused hope with expectation-smashing earnings and gave strong guidance for the year.

__KenTacoHut earnings…__ __Yum Brands__, the owner of fast-food faves like KFC, Pizza Hut, and Taco Bell, is expected to deliver earnings this week — along with fast-casual icon __Chipotle__. Last week, __McDonald's__ [dropped](https://snacks.robinhood.com/newsletters/hVxJ5P0UXNj7GiarHRYHR/articles/4MlfzoaeNBLMSQ0Pc0ru6y/) tasty sales growth as its inflation-friendly prices and cult fave menu items kept McCustomers coming. But while McD’s prices *dropped* last year, Chipotle and Yum kept hiking. Analysts expect same-store sales growth, but price hikes might be dimming appetites. Meanwhile, rising avo prices are threatening Chipotle’s “burrito season” profits. 


Events

Coming up this week

- __[Zuck](https://snacks.robinhood.com/newsletters/4Tr1pVtVj5AQBMTXX7CQ0g/articles/1CI1mRFvVBDI35dSkciBqP/):__ __[Meta](https://robinhood.com/stocks/META/)__ shares popped 26% after better-than-feared quarterly revenue, despite ad-pocalypse. Zuck said 2023 is Meta’s “year of efficiency” (sorry, metaverse). It expects to spend less after slashing 11K+ employees.
- __[UnPod](https://snacks.robinhood.com/newsletters/hVxJ5P0UXNj7GiarHRYHR/articles/5upo6arBMCyFdOxzmT6V0u/):__ __[Spotify](https://robinhood.com/stocks/SPOT/)__ popped after reporting record user growth, driven by podcasts. But its quarterly loss widened to $250M and the “growth at all costs” pod-palooza could be over as the streamer chases profitability. 
- __[Cody](https://snacks.robinhood.com/newsletters/4BQOCvfFjpmfTUqq7GuMPh/articles/3oSTcViaA2PXLCPreOXfnT/):__ __[Peloton](https://robinhood.com/stocks/PTON/)__ shares surged 28% after its pivot from hardware to subscriptions helped spin down quarterly losses. While equipment sales fell, revenue from its on-demand fitness classes grew 22%.

ICYMI

Last week's highlights

Oil giants rake in historic profits, but it could be a grand finale as green energy ramps up

For the first time in Super Bowl history, two Black quarterbacks are set to face off

🛢️Big oil’s profit peak?

__Zuck bucks turn up…__ __Meta__ shares popped 23% on Wednesday after the social giant reported earnings , making yesterday its second-best trading day in nearly a *decade*. Disillusioned investors were pleasantly surprised by Meta’s quarterly revenue — and its plans to buy back $40B of its own stock. Despite a widespread ad pullback, Meta fared better than feared:

- __Sales__ were down 4% from a year earlier, declining for the third straight quarter as its average ad price fell 22%. But Meta had a surprisingly upbeat forecast for *this* quarter, saying that revenue has a chance of rising from last year.

- __Profit__ plunged 55% year over year as expenses ballooned, but was up from the previous quarter (snapping a three-quarter streak of declines).

- __Daily active users__ across Meta’s “family of apps” (FB, Insta, WhatsApp, and Messenger) jumped 4% to 2B. Monthly users hit 3.7B (nearly half of all humans).

__Reel it in…__ Ad-reliant companies like Meta, __Google__, and __[Snap](https://robinhood.com/stocks/SNAP/)__ face many of the same headwinds: a pullback in digital-ad spending, hot competition from __TikTok__, and the continued fallout of __Apple__’s ad-targeting privacy change. Snap stock plunged after it disappointed on sales and guidance. But investors were optimistic about Meta’s cost-cutting future:

- __Zuck said 2023 is “the year of efficiency”__ for Meta. It expects to spend less this year, after slashing 11K+ employees in November (it’s also cutting data-center spend).

Pumped up on efficiency (David Ramos/Getty Images)

__Cutting down can mean leveling up…__ Meta used to be synonymous with “growth at all costs,” but its latest earnings call sounds more like “efficiency at all costs.” That could mean focusing less on investments in its underperforming metaverse biz, which lost nearly *$14B* last year, and lasering in on investments like AI recommendations and TikTok rival Reels, which fueled engagement last quarter.

Meta shares soar despite the ad sag as investors seize on its “year of efficiency”

__Veggie burger with a side of layoffs…__ Fake-meat fabricator __Impossible Foods__ said it [plans](https://www.bloomberg.com/news/articles/2023-01-30/impossible-foods-plans-to-lay-off-about-20-of-employees) to cut 20% of its employees this year, after axing 6% in October. Publicly traded rival __[Beyond Meat](https://robinhood.com/stocks/BYND/)__ laid off 20% of its staff last year, and its stock is down 70% over the past year. Alt meat had a juicy moment prepandemic, but demand for plant-based patties has plunged as inflation-stung consumers opt for cheaper eats. 

- __Freezer-burned:__ Supermarket alt-meat sales fell 14% last year, whereas real-beef sales fell 4%.

- __Impossible prices:__ Shoppers may be turning away from plant-based patties because they're typically more expensive than animal meat.

__Profits served extra rare…__ but there's a plant-based bright spot: while overall supermarket alt-meat sales fell, Impossible said *its* sales at grocery stores were up 50% last year. Plus, Impossible's CEO said 83% of the US has never heard of the company — despite patty partnerships with chains like __[Burger King](https://robinhood.com/stocks/QSR/)__ and __[Starbucks](https://robinhood.com/stocks/SBUX/)__ — suggesting there’s room to grow. The privately held biz said that almost half its customers are repeat buyers, and 90% of purchases come from meat eaters (hello, flexitarians).

Sizzle

__Barriers get higher when spirits get low…__ With food prices up nearly 10%, it may be harder for shoppers to stomach pricier mock meats — and the barrier to trying out plant-based is higher. Still, the alt-meat market is relatively new, and success may end up tasting like chicken: while overall sales of refrigerated faux meats fell in the second half of last year, sales of faux *chicken* jumped.

Impossible Foods lays off staff as fake meat struggles to take a bite of the market

- 🤖 __Techy…__ __[Twitter](https://robinhood.com/stocks/TWTR/)’s__ working on a payments feature (think: peer-to-peer transactions). Boss Elon Musk is said to want the system to be fiat first (think: real $$) but a crypto integration could be on the agenda.

- 🤔 __Sus…__ A court-appointed examiner [ripped](https://www.bloomberg.com/news/articles/2023-01-31/celsius-examiner-rips-into-crypto-lender-in-her-final-report) __Celsius__ in a newly released 689-page report. Revealed: the bankrupt crypto lender self-described internally as a "sinking ship," and said the value of its CEL token should be zero.

- 🪙 __Coins…__ __[Bitcoin](https://robinhood.com/crypto/BTC/)__ had its best month since October 2021 and its best January since 2013, [jumping](https://www.barrons.com/articles/bitcoin-crypto-markets-today-51675161319) 40%. Ethereum's followed suit, climbing almost 40% year to date, as crypto traders keep an eye on the Fed.

SUNK

Meta shares soar despite the ad sag as investors seize on Zuck’s “year of efficiency”

US offices reached 50% occupancy for the first time since the start of the pandemic

✂️  Meta’s “year of efficiency”

__Came for the workout…__ stayed for instructor Cody. __[Peloton](https://robinhood.com/stocks/PTON/)__ shares surged 22% yesterday after the spin icon [revealed](https://www.cnbc.com/2023/02/01/peloton-pton-q2-earnings-2023.html) healthy growth for its subscription biz — which, FYI, makes more $$ than its hardware biz ($2K spin bikes, fancy treadmills). Last quarter Peloton’s losses narrowed as cash burn fell to $94M, down from $547M a year ago. While Peloton’s hardware sales plunged 52%, subscription revenue from on-demand fitness classes grew 22%. 

- __Speed up:__ Peloton gave a better-than-expected forecast for the year and is aiming to have 1M people sign up for app subscription trials over the next year.
- __Slow down:__ It’s Peloton’s eighth straight quarterly loss, and the stock’s down 43% in the past year. But shrinking losses and subscription growth could signal a comeback.  

__Just keep spinning…__ Peloton thrived during lockdown, but as people hopped off their couches and headed back to the gym, unsold equipment [piled](https://snacks.robinhood.com/newsletters/2aaB9GnrWgVHhjJd7bFJu/) up. To cut its losses, Peloton [outsourced](https://snacks.robinhood.com/newsletters/iw2tCwjTCvnTryUaqDDzb/) manufacturing, canceled plans for a $400M Ohio plant, and laid off over a tenth of staff. Last fall Peloton pivoted from its direct-to-consumer model by striking distribution deals with __[Amazon](https://robinhood.com/stocks/AMZN/)__ and __[Dick’s Sporting Goods](https://robinhood.com/stocks/DKS/)__ to energize demand. It also got itself into thousands of __[Hilton](https://robinhood.com/stocks/HLT/)__ gyms, hoping to lure new customers.

Riding with your favorite instructor (Ezra Shaw/Getty Images)

Spin

__The road less traveled can be smoother…__ Instead of giving up when its core spin-bike biz faltered, Peloton leaned into subscriptions, which are less cost-intensive than hardware. Now it’s trying to return to growth by leveraging its charismatic instructors and mobile-friendly classes. By promoting subs to *non*-Peloton owners, it could ride the fitness-for-all strategy to a gradual recovery. 

Peloton’s subscription pivot helped spin down losses — and spin up its struggling stock

__When all-time highs = industry lows…__ Crypto hackers had a banner year, stealing a record $3.8B last year, __Chainalysis__ [reported](https://blog.chainalysis.com/reports/2022-biggest-year-ever-for-crypto-hacking/). It tops the previous year's record of $3.3B. DeFi (aka decentralized finance) represented 82%+ of those losses:

- __DeFined:__ DeFi protocols (like: __Uniswap__ and Tornado Cash) are permissionless. They let people trade crypto directly without go-betweens like centralized exchanges. 
- __CeFined:__ Centralized finance (CeFi) is more akin to traditional finance (meet: TradFi) because activity runs through a centralized entity like a crypto exchange. 
- __Bridged:__ DeFi protocols like cross-chain bridges — which let people move assets between blockchains — were like catnip to attackers, accounting for 64% of DeFi's losses. 

__Not so CeFine…__ As numerous CeFi crypto lenders went bankrupt last year (think: __BlockFi__, __[Celsius](https://snacks.robinhood.com/newsletters/74Rmw5VlxBTIazWlkKzrHf/articles/3f7BisGSpk0jgZKhOePwTn/)__, __[Genesis](https://snacks.robinhood.com/newsletters/4BoEiy5bSjKJygt8GDtUW3/articles/7tW8jp8mSs2CeUREvHmMNe/)__) and crypto exchange __FTX__ [blew up](https://snacks.robinhood.com/newsletters/5oS3vfl3q3m34Ud64MuTOf/articles/6GVY28qbI5kcW4Y5gvzbIM/), some crypto enthusiasts pointed to DeFi as a path forward. The argument: a CEO like Sam Bankman-Fried couldn't be accused of stealing your crypto if they never touched it in the first place. But as last year’s head-turning crime #s show, DeFi’s not immune either. Case in point: last year North Korea-linked hackers stole $1.1B from DeFi protocols. 

Loot

__You need a solid foundation to BUIDL…__ crypto speak for "build." As CeFi stumbled, some crypto fans believed it could be DeFi’s time to shine. But two straight record-setting years of crypto crime suggest DeFi still has work to do if it wants to provide a path out of CeFi's rubble. One hope: DeFi's public-facing nature means investigators can follow looted crypto across blockchains — suggesting that while hackers can run, they may have trouble hiding.

Crypto hackers set a looting record last year, casting a shadow on DeFi's bright promise

Boeing just made its final 747 delivery, marking the end for the famous jumbo jet

🚲 Peloton’s subscription sprint

__When shuffle plays your fave song…__ Bingo. __[Spotify](https://robinhood.com/stocks/SPOT/)__ shares popped 12% yesterday after the Swedish streamer [reported](https://www.cnbc.com/2023/01/31/spotify-spot-earnings-q4-2022.html) expectation-beating quarterly revenue and upbeat user growth. Spotify had its largest spike *ever* in monthly active users, with listeners up 20% to a whopping 489M. Ad-free paid subscribers jumped 14% to 205M. 

- __Spotify’s top line looks great.__ Its bottom line, *not so much*. Despite its green logo, Spotify is still deeply unprofitable, and last quarter its losses widened to $250M.

__Put it on mute…__ Spotify said its big growth was driven by podcasts. But big pod investments have also fueled big losses. ICYMI: Spotify has splurged $1B+ on pod-related purchases like The Ringer and Parcast, *plus* exclusive shows like “The Joe Rogan Experience” (reportedly for $200M+) and “Call Her Daddy” (reportedly for $60M). Pricey pod-vestments fueled growth, but also burned a hole in Spotify’s pockets. 

- __Spotify laid off 600 employees__ last week in a reorg that included the exit of its chief content officer, Dawn Ostroff, who was at the helm of huge pod deals. 
- __End of the pod-palooza?__ Spotify execs vowed that 2022 was the year of peak losses (read: they’ll try to get closer to profitability from now on). 
- __On the mic:__ CEO Daniel Ek said that pods have been a drag on profit margins and that some shows haven’t performed as well as expected. 

The end of the pod-palooza era? (Cindy Ord/Getty Images)

Unpod

__“Growth at all costs” comes at a cost…__ and many aren’t willing to pay it anymore. In this uncertain economy, the focus has shifted from supercharging growth to cutting costs and maximizing profits. Ek [summarized](https://deadline.com/2023/01/spotify-ceo-daniel-ek-podcasts-investing-dawn-oststroff-fourth-quarter-losses-subscriber-growth-1235245223/) it thus: “You go for growth first and then you seek efficiency. Generally, you will see us focus on efficiency… not just growth at all costs.”

Spotify adds record users, but the “growth at all costs” pod-palooza could be dead

__Waiting 30 mins for the McRib…__ worth it. __[McDonald’s](https://robinhood.com/stocks/MCD/)__ [served](https://www.cnbc.com/2023/01/31/mcdonalds-mcd-q4-2022-earnings.html) up hearty earnings after more fast-food lovers headed to the Golden Arches last quarter. McD’s same-store sales in the US jumped 10%, thanks in part to the “farewell tour” of its cult fave McRib. Abroad, same-store sales spiked ~13% — and make up over half of all quarterly revenue — thanks to stronger demand in countries like the UK, France, and Germany. 

- __Nugget nostalgia:__ McD’s “adult Happy Meal” promo drove the highest weekly digi-transactions ever in the US. Half of the meals sold out in the first four days.
- __Deep-fried footprint:__ While McD’s execs expect a “mild to moderate” recession this year, they still plan to open nearly 2K new restaurants — 100+ more than they had forecast last year.

__Unwrapping deals…__ Inflation’s finally cooling, but many consumers are trading down from full-service restaurants as budgets stay tight. Nearly a quarter of consumers say they’ve turned to fast-food since it can sometimes be cheaper than cooking at home. But not all combos are created equal: 

- __Fancy fries:__ Menu prices at rivals like __Chick-fil-A__ and __Taco Bell__ rose about 15% from 2021 to last year, while __[Wendy’s](https://robinhood.com/stocks/WEN/)__ prices soared 35% in the same period. 
- __Slow rise:__ McDonald’s — which actually *decreased* prices 5% — said that while lower-income consumers are ordering less, they’re returning more frequently than in previous quarters.

Combo

__Consistency is king…__ but surprise is queen. McDonald’s has been relatively consistent with its low prices and classic McMenu items, but it has also sprinkled in spontaneity with buzzy promos. While rivals have leaned on higher prices to raise revenue, McD’s leans on cult faves and fresh tastes to juice demand. Last year, McD’s celeb-inspired meal [collabs](https://snacks.robinhood.com/newsletters/6lzvLrthhcs2XAAKrGo75i/articles/2tlVc1V2nx6jY75DFlpmKO/) with stars like Travis Scott, BTS, and J. Balvin were key in driving digital sales.

McDonald’s posts tasty growth as inflation-friendly prices and cult faves spark a fast-food frenzy

*🖊️ Like taking a Sharpie to a digital dollar bill…*

The OG crypto is playing catch-up. A recent addition to bitcoin lets people add text, images, or video to individual “satoshis” (think: the smallest unit of BTC). It essentially creates bitcoin-native NFTs. Dubbed "[ordinals](https://www.bloomberg.com/news/articles/2023-01-30/nfts-coming-to-bitcoin-sparks-handwringing-about-crypto-purists)," the new protocol and its on-chain digital artifacts have sparked a mini [controversy](https://www.coindesk.com/tech/2023/01/31/bitcoin-community-erupts-in-existential-debate-over-nft-project-ordinals/), with some in the crypto community saying they'll drive up transaction fees.

Heard on the Block: "ordinals"

Spotify adds record users, but the “growth at all costs” pod-palooza could be over

Lucy Stanton became the first Black woman in America to earn a four-year college degree after graduating from Oberlin in 1850

🎵 Spotify’s profitless pod boom

__More a-Ford-able…__ __[Ford](https://robinhood.com/stocks/F/)__ is following __[Tesla](https://robinhood.com/stocks/TSLA/)__ down the discount road: the Detroit carmaker said it’ll slash prices of its electric Mustang Mach-E crossover by an average of $4.5K. It also plans to boost production from 78K units/year to 130K. The Mach-E helped Ford become America’s second-best-selling EV maker, with 65K+ electric cars sold in the US last year (trailing Tesla’s 500K+). Recently __Tesla__ also announced price cuts, including slashing its Model Y price tag by up to $13K.

- __Less profit:__ With the cuts, the Mach-E will have a starting price of $46K. The markdowns mean that not all Mach-E models will be profitable on a per-unit basis. 
- __More saving:__ Ford expects to offset some of that profit drop with streamlined production and lower commodity costs. FYI: Ford reports on Thursday.
- __Ford stock lost__ 3% yesterday after the news. But investors had reacted positively to *Tesla’s* cuts, hoping that lower prices would boost sales. 

__Everyone wants to be an EV player…__ The markdowns from America’s two largest EV sellers are all about revving up demand as competition booms (partly thanks to subsidies). From old-school players like __[GM](https://robinhood.com/stocks/GM/)__ and __[Toyota](https://robinhood.com/stocks/TM/)__ to electric-first companies like __[Rivian](https://robinhood.com/stocks/RIVN/)__ and __[Lucid](https://robinhood.com/stocks/LCID/)__, carmakers are doubling down on EV ambitions. While the US lags behind China and Europe in electric adoption, full-electric vehicles accounted for nearly 6% of all cars sold in the US last year — up from 3% in 2021. 

Smells like EV deflation (Frederic J. Brown/Getty Images)

Juicy

__The trend-setter can be the price-setter…__ Tesla made EVs cool and spurred electric adoption with its sleek and techy models, setting the standard for electric luxury. Tesla’s also the world’s leading EV maker, and its price moves set a *price* standard for other EV players. When it cuts prices, other carmakers could feel pressure to do the same to keep demand in check.

Ford follows trend-setter Tesla by slashing EV prices as electric competition revs up

__Beyond the grocery aisle…__ into high-margin style. __[Walmart's](https://robinhood.com/stocks/WMT/)__ going for a new look (which could make it harder for you to reach the grocery section). The big-box behemoth [remodeled](https://www.cnbc.com/2023/01/28/walmart-new-sleek-store-designs.html) six of its SuperCenter mega stores to focus shoppers' attention on clothes, makeup, pet supplies, and furniture — all items with higher profit margins than groceries. A $30 floral dress that costs $3 to produce typically brings home more profit than a box of cereal. 

- __Front and center:__ Picture snazzy mannequins under spotlights at the front of the store, eye-catching cosmetics displays, and colorful pet-supply sections. 
- __Try it on:__ At least 30 more Walmart stores have adopted elements of the fanci-fied makeover. Walmart’s trying to pump profits after posting a loss in its October quarter.

__Come for the juice…__ stay for the jeans. As America’s largest grocer, Walmart has always used affordable groceries as a hook (groceries = over half of Walmart’s sales). As food inflation squeezed budgets last year, higher-earning households switched to Walmart for groceries. Now it hopes it can persuade them to spend on more than just hummus and salmon. But it might not be easy: consumers have been cutting back on discretionary merch spend. 

Dressy

__Dress for the profits you want…__ because new looks can lure new pocketbooks. Walmart became the grocery go-to thanks to competitive prices and its network of 5K+ US stores. By spotlighting its fashion and makeup offerings, Walmart's hoping that grocery-hooked customers will venture past the grapefruits and toward the swimsuits. 

Walmart’s snazzy makeovers aim to put more profitable products front and center

Toyota defended its title as earth’s best-selling automaker with 10.5M cars sold last year

🚙 Ford’s Tesla response

__Ignoring the (three) bears…__ The economy ≠ the stock market, but markets rallied last week after GDP #s showed the US economy grew an expectation-beating 2.9% in the final quarter of last year. The icing on the cake: the pace of growth slowed slightly from the previous quarter, suggesting the Fed's hikes are *gently* cooling the economy rather than freezing it. That’s reviving hopes for a Goldilocks-like "[soft landing.](https://www.bloomberg.com/news/articles/2023-01-27/fed-sees-soft-landing-as-silver-lining-of-temp-jobs-decline)" The ingredients:

- __Not too hot:__ Temp jobs fell for the fifth straight month, raising hopes that the labor market could cool *without* erasing many full-time roles. But fresh layoff announcements from companies like __[IBM](https://robinhood.com/stocks/IBM/)__ and __[Hasbro](https://robinhood.com/stocks/HAS/)__ could change the picture. 
- __Not too cold:__ Inflation cooled again last month, ending the year at 6.5% (still way above the Fed's target). And while job growth is slowing, the labor market’s still historically strong. 

__Juuuust right…__ Experts say continued consumer spending, which rose 2.1% last quarter but ticked down last month, will be key to avoiding a recession. While consumers are starting to rein in their daily budgets, some are "[revenge inflation spending](https://www.wsj.com/articles/inflation-spending-luxury-travel-clothing-food-11674502204)" on major purchases. __[American Express’s](https://robinhood.com/stocks/AXP/)__ CFO said spending on experiential splurges like travel is "off the charts." Still, while consumer sentiment has improved this year, it’s still near historic lows. 

J. Powell preps the porridge (Andrew Caballero-Reynolds/Getty Images)

Golden

__A fairy-tale ending isn’t guaranteed…__ While optimism is up, some experts say there's still plenty of room for concern (and a Q3 recession). The Fed, which meets tomorrow and Wednesday, is expected to continue raising rates over the next two months — though at a slower pace than those past “jumbo” hikes. Fed officials said they don't expect to cut rates this year, but analysts think cuts could come as soon as September. We’ll see whether Fed Chair Powell squashes the market’s optimism.

Investors hope for a Goldilocks-style soft landing, but the proof will be in the Fed’s porridge

__Ad-pocalypse now?...__ __[Google](https://robinhood.com/stocks/GOOGL/)__ and __[Meta](https://robinhood.com/stocks/META/)__ report this week, at a complicated time for the industry. Ads make up 80% of Google’s revenue, and *98%* of Meta’s. But in their last-reported quarters, Meta saw an annual drop in ad revenue while Google’s growth slowed. Meanwhile, Google’s dealing with an existential threat from ChatGPT, with a DOJ lawsuit that seeks to break up its ad biz. Facebook’s growth stalled last year and Insta barely grew as users flocked to TikTok (bringing ad bucks with ’em). Analysts expect lower earnings from the ad titans.

__Apple's core…__ could be softer than usual. A year ago __[Apple](https://robinhood.com/stocks/AAPL/)__ reported record sales in its blockbuster holiday quarter. That could be hard to beat this year, as Covid crackdowns in China disrupted iPhone production (iPhones make up over half of Apple’s sales). Last year, global smartphone shipments posted their largest drop *ever*. The world’s most valuable public company is expected to report lower earnings and sales on Thursday. Still, Apple's the only Big Techie that’s avoided mass layoffs so far (partly since it didn’t do a mass hiring spree). 

__Prime pills…__ Call it a prescription subscription. Last week __[Amazon](https://robinhood.com/stocks/AMZN/)__ [launched](https://snacks.robinhood.com/newsletters/79pjIuyGvvYRy0vRYusvPY/articles/AsPZberidCKIL3eLBLLEK/) a subscription for unlimited meds. With “RxPass,” 168M Prime members can buy pills and get ’em delivered for $5/month (no insurance needed). RxPass offers 80 meds (think: blood pressure, anxiety, migraines) and targets people with numerous prescriptions. Nearly half of US adults take *two or more* meds daily, and retailers like Amazon, __[Walmart](https://robinhood.com/stocks/WMT/)__, and __[CVS](https://robinhood.com/stocks/CVS/)__ are scrambling to get a bigger chunk of the lucrative prescription pie. Amazon’s differentiator: offering *many* drugs at a flat rate.

__Living for the jump scares…__ Moviegoers are seeing dead people and studios are seeing green. Horror flicks are giving big blockbusters a run for their money. __Universal Studios’__ and __Blumhouse’s__ “M3gan,” which follows a trendy murderous doll, has already raked in [$130M](https://www.cnbc.com/2023/01/21/m3gan-topping-100-million-horror-movies-box-office.html) at the box office — the latest hit in a series of successful horror releases. “Skinamarink,” an experimental horror with a tiny $15K production budget, earned $1.7M in two weekends. Horror could help boost the recovering movie industry, which is still far from prepandemic levels. 

- __[Listicle](https://snacks.robinhood.com/newsletters/3AfJ5QticYzqpCcokZ516q/articles/3j7AOj9siIxg2ATa4dA6ye/):__ __Meta__ is reportedly paying __[BuzzFeed](https://robinhood.com/stocks/BZFD/)__ millions to generate viral creator content as engagement falls for both. It’s a symbiotic social relationship. 
- __[Searched](https://snacks.robinhood.com/newsletters/5m7fnGl8GCvlx7gfsQcDYc/articles/rbKFyth6EA3WcU7CNJDVw/):__ __Google’s__ bread-and-butter ad biz could be toast with a new Department of Justice lawsuit. Regulators in the US and EU have been cranking the heat on tech giants. 
- __[Swap](https://snacks.robinhood.com/newsletters/5m7fnGl8GCvlx7gfsQcDYc/articles/6bA9qEJZg44MjxYhiiHkmZ/):__ Tech layoffs are intensifying, but last year 80% of laid-off tech workers found a new gig within three months — and over half of those rehired got pay bumps.

 ICYMI

Investors hope for a Goldilocks soft landing, but the proof’s in the Fed’s porridge

Only eight countries have won the World Cup