__Stark contrast...__ While Americans fly to spring vacays (legally) unmasked, 26M people in Shanghai are under strict Covid lockdown, policed by [robot dogs](https://www.ft.com/content/5c437146-2d18-466b-84af-24a47b32de59) and drones. China's largest city has been on a monthlong freeze as the government enforces its zero-Covid policy. Last week Shanghai [reported](https://www.cnn.com/2022/04/18/china/shanghai-reports-covid-deaths-mic-intl-hnk/index.html) three Covid deaths, the first official fatalities of an outbreak that’s infected about 400K people since March. Despite a near-zero death rate and [falling](https://www.wsj.com/articles/shanghai-to-continue-strict-covid-19-measures-despite-drop-in-cases-11650630510) cases…

- __China’s doubled down__ on the harshest measures since the pandemic began: it’s [sending](https://www.wsj.com/articles/shanghai-to-continue-strict-covid-19-measures-despite-drop-in-cases-11650630510) all Covid-positive patients in Shanghai to quarantine centers, regardless of symptoms. It’s also amping up mass testing and tracing. 
- __Some residents are running out__ of food and water as clogged ports and closed roads crush supplies. It's illegal to leave home to get groceries, and food-delivery drivers are overstretched. The food crisis has sparked [clashes](https://www.cnn.com/videos/world/2022/04/21/shanghai-residents-push-back-against-covid-measures-culver-dnt-ebof-vpx.cnn) between residents and police.

__A city 3X the size of NYC...__ Shanghai accounts for a 10th of China's exports, but now the world's busiest port is at a virtual standstill. It’s hurting China: spending [fell](https://www.bbc.com/news/business-61137195) last month and unemployment hit the highest level since early in the pandemic. It’s also rippling across the global economy, disrupting everything from corporate profits to the ETA of your Shein order:

- __Pricey shipping:__ The cost to export a container is 5X higher than pre-pandemic, and air freight rates have doubled. 
- __Deflated earnings:__ Nearly a fifth of S&P 500 companies get at least 5% of their business from China, and half of US companies in China have reduced their annual sales estimates. 
- __Crushed output:__ __[Tesla](https://robinhood.com/stocks/TSLA)__, __[Volkswagen](https://robinhood.com/stocks/VWAGY)__, and iPhone-assembler __Pegatron__ are among the manufacturers that’ve had to shut down plants during the lockdown.

Traffic jam in Shanghai (Lu Hongjie/Costfoto/Future Publishing via Getty Images)

Waves

__It could be worse than 2020…__ at least economically. That’s because the world’s been relying *more* on Chinese products since the pandemic started. China’s shares of global exports surged to [15.4%](https://www.cnbc.com/2022/04/15/bernstein-chinas-2022-covid-lockdowns-inflation-risk-bigger-vs-2020.html) last year, the highest in a decade. Read: China’s lockdowns will likely have an even greater impact on inflation and global growth than they did the first time around.

As China tightens its “zero-Covid” lockdowns, the world’s economy could get rocked 2020-style

__Break out the breath mints…__ The great de-masking is here, and it’s confusing. Last week a federal judge tossed the mask mandate for transportation. Airlines like __[United](https://robinhood.com/stocks/UAL)__, __[American](https://robinhood.com/stocks/AAL)__, and __[JetBlue](https://robinhood.com/stocks/JBLU)__ dropped their mask rules in response (some pilots did so [midflight](https://www.nytimes.com/2022/04/19/us/mask-mandate-flights.html)). __[Uber](https://robinhood.com/stocks/UBER)__ and __[Lyft](https://robinhood.com/stocks/LYFT)__ followed suit. But the Biden admin is appealing the ruling. Travelers now face a maze of rules heading into the busy summer travel season: masks are optional on flights, but must be on for public transit (subways, buses, cabs) in cities like NY and LA. 

__Putting the “more” in mortgage...__ It’s a hard time to be a house hunter. In the past two years, inventory sank to a 20-year low just as home prices started hitting record highs. Now mortgage rates are above 5% — their highest level in a decade. Soaring rates are making it more expensive for buyers to borrow $$, if they’re lucky enough to win a bid. Though rising rates are already [starting](https://fortune.com/2022/04/04/redfin-red-hot-housing-market-shows-first-signs-cooling-mortgage-rates/) to cool demand, experts expect housing prices to stay high for a while. Some economists even [worry](https://www.jpmorgan.com/insights/research/us-housing-risk) the US is at risk of another housing bubble.

Zoom Out

Stories we’re watching...

__Growing, growing, gone...__ Big Tech may be in for a bumpy earnings week. Last week, Netflix [reported](https://snacks.robinhood.com/newsletters/1hJKveGEOmvpzuLtfVejiF/articles/43M2Oild3MGMPYMecA8Q7K/) a subscriber loss for the first time in a decade, which wiped $50B from its market cap. It’s not the only techie stalling out: in February, __[Meta](https://robinhood.com/stocks/FB)__ [posted](https://www.vox.com/recode/2022/2/2/22915110/facebook-meta-user-growth-decline-first-time-metaverse-mark-zuckerberg-tiktok-competition-earnings) its first user drop *ever*. Other tech giants [face](https://www.marketwatch.com/story/the-big-tech-earnings-boom-is-over-and-investors-are-now-searching-for-safety-11643135288) a combo of labor, inflation, and regulatory issues. We’ll see if the pandemic profit party’s ending for __[Microsoft](https://robinhood.com/stocks/MSFT)__, __[Google](https://robinhood.com/stocks/GOOGL)__, __[Apple](https://robinhood.com/stocks/AAPL)__, and __[Amazon](https://robinhood.com/stocks/AMZN)__ when they report this week, and whether Meta has reversed its last quarter’s user shrinkage.

__Treat-yo-self season...__ is still here. __[Visa](https://robinhood.com/stocks/V)__ and __[Mastercard](https://robinhood.com/stocks/MA)__ are seeing a spike in swipes as you splurge on new fits and dining out. Last quarter, [both](https://s25.q4cdn.com/479285134/files/doc_financials/2021/q4/4Q21-Mastercard-Earnings-Release.pdf) saw revenues jump 25%. Now higher credit costs (which rise with interest rates) could boost payments from card holders. Plus, this month Visa and Mastercard plan to raise swipe fees for merchants, which make up the bulk of their profits. But since those fee hikes are passed to customers, lawmakers are calling for them to be shelved. Still, the swipe fees could push profits close to records when they report this week.

Events

Coming up this week...

- __[Bravo](https://snacks.robinhood.com/newsletters/5dnTQ7q29VzDY0QQYtzv4g/):__ The maker of pricey __Steinway__ pianos [filed](https://www.sec.gov/Archives/edgar/data/1897640/000119312522104954/d212165ds1.htm) to go public on the NYSE. The IP-ian-O comes as luxe spending booms, especially in China, where 30M kids study piano (compared to 10M in the *rest of the world*).
- __[Rev](https://snacks.robinhood.com/newsletters/36fBoHhcd4FMlxtriYB5p0/):__ Tesla’s delivering more cars than ever, even in the face of parts shortages that are holding back its OG competitors. While __[GM](https://robinhood.com/stocks/GM)__ and __[Toyota](https://robinhood.com/stocks/TM)__ saw big sales declines, Tesla’s making record profits. But China’s zero-Covid policy could slow it down.
- __[Adflix](https://snacks.robinhood.com/newsletters/1hJKveGEOmvpzuLtfVejiF/):__ Are you still watching? Apparently not. Netflix’s surprise subscriber loss is sending shockwaves through the streaming world. The Flix is planning an ad-supported tier and a crackdown on password sharing to juice growth.

ICYMI

Last week's highlights...

As China tightens its “zero-Covid” grip, the world’s economy could get rocked 2020-style

Dow Jones

S&P 500

Nasdaq

Bitcoin

Nearly 12B spam texts were sent last month in the US. That’s about 40 texts for every American

🇨🇳 China’s “zero-Covid” effect

__Enter the piano-verse…__ The maker of Steinway pianos is going from the concert stage to the stock exchange. Last week __Steinway Musical Instruments__ [filed](https://www.sec.gov/Archives/edgar/data/1897640/000119312522104954/d212165ds1.htm) to go public on the NYSE (the exact date isn’t set). Its IPO comes as luxury spending booms, particularly in China.

- __Old keys:__ Steinways sell for between $60K and $2.4M. Last year the 169-year-old brand scored nearly $60M in profits, a 14% jump from 2020.
- __New tricks:__ Steinway’s self-playing Spirio accounted for a third of its piano sales last year. Two out of three Spirio owners can’t even play piano, but they can stream live concerts or classic Duke Ellington shows at cocktail parties.

__Powerhouse performers, meet luxury listeners…__ Steinway’s come far from its NYC roots. The company built its brand on partnerships with star pianists (Billy Joel) and iconic venues (Sydney Opera House): 97% of pianists use Steinways in concert. Steinway ships pianos anywhere on Earth for its nearly 2K elite “Steinway Artists” (it even [sent](https://www.steinway.com/news/features/ludivico-einaudi-makes-a-splash) one to an iceberg). But to expand, Steinway is focusing on homebuyers. Increasingly they’re in China:

- __More music:__ Today China has 7X as many pianists as the US. That trend’s accelerating: 30M kids in China study piano, compared to fewer than 10M in the entire rest of the world. 
- __Bigger spending:__ Luxury spending in China’s surging: consumers worth $30M+ — Steinway’s sweet spot — have doubled in the past five years.

Nothing like that new piano smell (Isabel Infantes/AFP via Getty Images)

Ivories

__It’s good to sell pianos, but better to sell luxury…__ Steinway calls itself a luxury brand first and a piano brand second. The reason: the luxe goods market is 135X as big as the musical-instrument market, and it's growing 3X as fast. Steinway mentioned China 156 times in its IPO filing: by catering to China’s music-loving upper class, the piano powerhouse hopes to grow its customer base of big-spending piano lovers.

Steinway files for an IPO to bring its pricey pianos to China’s luxury listeners

__Just in time for Earth Day…__ Carl Icahn's latest beef differs from his usual shareholder-focused strategy of corporate raiding. Yesterday the billionaire investor wrote a passionate letter to __[McDonald’s](https://robinhood.com/stocks/MCD)__ investors accusing the fast-food giant of animal cruelty. Icahn has a small ($50K) stake in the Golden Arches, but it hasn’t kept him from [waging](https://www.wsj.com/articles/blackrock-other-esg-minded-investors-should-back-his-mcdonald-s-campaign-icahn-says-11650503034?mod=markets_lead_pos6) a public proxy battle over the company’s pork-supply-chain practices. 

- __The issue:__ A decade ago, McDonald’s vowed to phase out suppliers that use controversial gestation crates (think: supertight metal stalls for pregnant pigs). Update: still hasn’t happened.
- __Icahn’s answer:__ Add two of his hand-picked directors to McDonald’s board to ensure the pigs are treated better.
- __Mickey D’s response:__ Icahn’s demands are “unfeasible” and would create a “financial burden” for its customers (read: more expensive bacon). 

__Sustainability hypocrisy…__ ESG (environmental, social, and governance) investing is one of the hottest trends on Wall Street. Last year, investors poured a [record](https://www.fastcompany.com/90706552/esg-investing-continued-to-soar-in-2021-the-government-could-boost-it-even-more) $120B into sustainable assets — 2X more than in 2020. While arguing animal welfare should be a pillar of ESG, Icahn’s also calling out corporate green promises as hollow marketing ploys. And he says the big asset managers (like: __[BlackRock](https://robinhood.com/stocks/BLK)__) reap billions without holding companies accountable.

Caged

__A small stake can make a big difference…__ Activist investors are using their influence to force corporations to make sustainable changes. It’s worked before: activist fund Engine No. 1 [won](https://www.bloomberg.com/news/articles/2022-04-07/exxon-faces-emissions-net-zero-votes-a-year-after-activist-win) three seats on __[Exxon's](https://robinhood.com/stocks/XOM)__ board last year with just a 0.02% stake after it convinced shareholders Exxon needed to get serious about climate change. McDonald's shareholders will get their chance to weigh in on Icahn’s cause at its annual meeting next month.

Billionaire Carl Icahn takes on McDonald’s animal-welfare practices, while calling out Wall Street’s ESG “hypocrisy”

Steinway files to go public, and China’s piano-loving upper class is listening

Over 90% of the world’s plastic is never recycled

🎹 Steinway’s IP-ian-O

__Taking a break from [Twitter](https://robinhood.com/stocks/TWTR)...__ Between tweeting about buying Twitter, posting __[Shiba Inu](https://robinhood.com/crypto/SHIB)__ memes, and hopping on __[Tesla's](https://robinhood.com/stocks/TSLA)__ earnings call, Elon is having a busy month. Despite supply struggles and China’s Covid lockdowns, Tesla crushed earnings expectations yesterday.

- __Above and Elon'd:__ The electric-car leader [reported](https://tesla-cdn.thron.com/static/IOSHZZ_TSLA_Q1_2022_Update_G9MOZE.pdf?xseo=&response-content-disposition=inline%3Bfilename%3D%22TSLA-Q1-2022-Update.pdf%22) that sales were up 81% from a year ago, while profit more than 7X'd. The stock spiked 5% after hours.
- __Tesla managed to deliver a record__ [310K](https://ir.tesla.com/press-release/tesla-vehicle-production-deliveries-and-date-financial-results-webcast-first-quarter) cars last quarter, up from 308K the previous quarter. The Model 3 and Model Y (its least pricey models) made up nearly all deliveries.

__It goes Elong way...__ Tesla emerged victorious from "an exceptionally difficult" quarter thanks to #versatility. Its software prowess [allowed it](https://www.nytimes.com/2022/04/02/business/tesla-sales-electric-vehicles.html) to swap hard-to-find chips for ones that were less supply chain-ed. Others weren’t so lucky: while Tesla deliveries were up 70% from the year-ago quarter, OGs like __[GM](https://robinhood.com/stocks/GM)__ and __[Toyota](https://robinhood.com/stocks/TM)__ reported big sales declines because of parts shortages.

- __Showing up:__ Tesla nearly doubled deliveries last year, to 936K, and recently [started](https://www.cnn.com/2022/04/20/investing/tesla-earnings-preview/index.html) shipping cars from its two new Gigafactories in Germany and Texas.
- __Catching up:__ Tesla’s production numbers are moving closer to being on par with traditional luxe carmakers like __[Mercedes](https://robinhood.com/stocks/DMLRY)__ and __[BMW](https://robinhood.com/stocks/BMWYY)__. It’s already pulled ahead of __[Volvo](https://robinhood.com/stocks/VLVLY)__ and __[Subaru](https://robinhood.com/stocks/FUJHY)__.

All lined up and ready to go (Johannes Eisele/AFP via Getty Images)

Tweeter

__China’s clouding the picture…__ for Tesla and for everyone. While some analysts think Tesla could sell 2M cars this year, China’s zero-Covid crackdown is complicating projections. Tesla had to halt production at its key Shanghai factory for weeks because of citywide lockdowns. Yesterday, Elon said “Shanghai’s coming back with a vengeance” ([sleeping bags](https://insideevs.com/news/580746/tesla-retarts-production-close-loop-system/) and all). But the plant’s closure is [expected](https://www.washingtonpost.com/technology/2022/04/20/tesla-elon-musk/) to knock 50K cars off this quarter’s output.

Tesla shows up OG carmakers by crushing earnings with a delivery record, but China is complicating its future

__You’ve hardly touched your Grub…__ and now it’s getting cold. Dutch food deliverer __Just Eat Takeaway__ says it’s [considering](https://www.wsj.com/articles/just-eat-takeaway-considers-putting-grubhub-up-for-sale-after-orders-fall-11650455192) a sale of its US unit, __Grubhub__. It was only last year that Just Eat bought Grubhub for $7.3B, after a boom in pandemic ordering. But the Hub has slowly been crowded out as the delivery rivalries intensified:

- __Lost appetite:__ Just Eat posted a 5% decrease in orders last quarter in North America. 
- __Shrinking slice of the pie:__ Last month Grubhub delivered only 10% of US online orders, down from *nearly 70%* in 2016. In that same span, __[DoorDash](https://robinhood.com/stocks/DASH)__ boosted its share more than 10X, to 59%, and __[Uber Eats](https://robinhood.com/stocks/UBER)__ upped its take 6X, to 30%.

__People are still ordering food online…__ just not on Grubhub. Monthly sales across the online food-delivery biz have increased about 6X since 2018. This year they’re expected to jump 15% from 2021. But well-funded competition and mounting regulatory pressure have made it hard for Grub to stay on top.

- __Dining and dashing:__ Customers will gladly ditch one app to order a cheaper burrito from another; Grubhub’s ex-CEO [said](https://secondmeasure.com/datapoints/food-delivery-services-grubhub-uber-eats-doordash-postmates/) these “promiscuous customers” limit growth.
- __Fee frustration:__ Early in the pandemic, big markets like NYC capped delivery fees to protect struggling restaurants. Grubhub [lost](https://qz.com/2157060/just-eat-takeaway-explores-grubhub-sale-less-than-a-year-after-buying-it/) $100M+ from US fee caps in 2020.

Takeout

__It’s hard to overcome the “first-mover disadvantage”…__ Grubhub dominated US delivery for years before IPO’ing in 2014. But going public first may have worked against it. Although Grubhub posted its first profit in 2018, it sacrificed growth to get there, and now it’s losing money again. Meanwhile, Uber Eats and DD have *never* turned an annual profit, but they’ve burned through VC cash to take a big bite from Grubhub’s market share.

Grubhub may be sold — again — as the one-time delivery leader falls behind Uber and DoorDash

Tesla sets a delivery record, but China is complicating its future

Netflix estimates that 100M+ non-paying households share passwords, and now it’s planning to crack down on moochers

🚚 Tesla delivers

__Binged “Anatomy of a Scandal”...__ Netflix knows we can devour a limited series as if we had unlimited time. The streaming leader revealed yesterday that it [*lost*](https://www.wsj.com/articles/netflix-earnings-q1-2022-11650325682) 200K subscribers last quarter (it was expected to add 2.5M). Even worse: it expects to lose 2M global subs this quarter. Flix shares plunged 25% after hours and are down over 40% this year.

- __Old plot:__ Netflix saw explosive growth in 2020 as Emily in sweats binged “Emily in Paris.”
- __Current plot:__ The pandemic boom led to subscription saturation (#subscripturation) and slowing growth. Netflix added 18M paid subs last year, versus 37M in 2020. Now it’s *losing* subs. 
- __New plot:__ To spur growth, Netflix has expanded beyond content. Last year it [launched](https://snacks.robinhood.com/newsletters/7Kx3ILkPTkUU1EpjaVEiu7/articles/44NJYUat1m1imvGSWMklvL/) a show-themed merch shop (think: “Ultimatum” [tees](https://www.netflix.shop/collections/the-ultimatum)) and five in-app [games](https://www.cnbc.com/2021/11/02/netflix-launches-its-first-mobile-games.html). It’s also expanded into “[experiences](https://techcrunch.com/2022/04/11/stranger-things-fans-can-explore-the-upside-down-in-new-nyc-experience/)” like a “Stranger Things” Upside Down world in NYC.

__Netflix’s ultimatum...__ Unlike Hulu, HBO Max, and other ad-supported streamers, Netflix has rejected commercials, relying instead on subscription $$. In 2019, CEO Reed Hastings said he’d never do ads, “period.” But high prices (#flation) + subscription overload (#subscripuration) have made it harder for consumers to afford multiple streamers. Fast-forward to now:

- __Netflix__ CFO Spencer Neumann recently cracked the door open to ads, saying "never say never" to an ad-supported tier. 
- __Even [Disney+](https://robinhood.com/stocks/DIS)__ is [launching](https://www.nytimes.com/2022/04/19/business/media/netflix-amazon-disney-ads.html) a lower-priced ad tier to hit its subscription goals.

From “never ads” to “never say never” to ads (Ethan Miller/Getty Images)

Ultimatum

__It’s the price-cutting paradox…__ Lowering prices can boost revenue — but only if customers who were paying “premium” prices don’t downgrade. Netflix’s $15.50/month standard plan may be out of reach for many budget-conscious households, so adding a cheaper plan supported by commercials could help it grab a new market. The risk: subscribers who are paying for pricier ad-free plans might downgrade (that [*hasn’t*](https://www.nytimes.com/2022/04/19/business/media/netflix-amazon-disney-ads.html) happened to HBO Max yet). As streaming competition intensifies, it may be worth the risk for the Flix.

Netflix lost 200K subs last quarter and expects to lose millions more. Now ads could be its saving grace

__Slow burn…__ Today is 4/20, the unofficial holiday of cannabis connoisseurs. It’s been a decade since recreational pot was first legalized in the US, in Washington and Colorado. Since then, 16 more states and DC have followed. While national legalization remains an open question, the industry has found ways to [advance](https://fortune.com/2022/04/11/legal-marijuana-sales-33-billion-2022/): 

- __Legal cannabis sales__ are expected to total $33B in 2022, a 32% jump from last year.
- __Three quarters__ of Americans now live in states with some form of legalized weed.
- __520K workers__ are now employed in the US cannabis industry.

__Put that in your pipe and vote on it…__ This month the House [passed](https://www.nbcnews.com/politics/congress/house-vote-bill-legalize-marijuana-rcna22527) legislation to legalize cannabis nationwide. But the bill’s stuck in the Senate, where it’s unlikely to pass because of partisan gridlock — even though it has [support](https://news.gallup.com/poll/356939/support-legal-marijuana-holds-record-high.aspx) from nearly 70% of voters. The absence of a federal law has been a buzzkill for cannabis companies as they try to expand nationally:

- __Green stocks turn red:__ Shares of billion-dollar cannabis giants __[Tilray](https://robinhood.com/stocks/TLRY)__ and __[Canopy Growth](https://robinhood.com/stocks/CGC)__ have fallen to five-year lows as legalization efforts have stalled. Many canna-businesses have chosen to sell in only one state to avoid complex interstate commerce laws.
- __Nowhere to put the green:__ Banks like __[Chase](https://robinhood.com/stocks/JPM)__ and __[Citi](https://robinhood.com/stocks/C)__ and payment processors like __[Visa](https://robinhood.com/stocks/V)__ won’t handle cannabis $$ for liability reasons — even where it's legal. But small banks and credit unions are [embracing](https://www.bloomberg.com/news/newsletters/2022-01-18/marijuana-banking-is-moving-forward-despite-federal-uncertainty) the industry and could open the door to “cannabis banking.”

__High demand doesn’t always assure fast growth…__ Sometimes it’s in the hands of politicians. President Biden hasn’t pushed for pot legalization, which makes it unlikely the Dem-controlled Senate approves the current bill. But analysts think lawmakers may greenlight canna-banking this year, which could help cannabis companies expand to multiple states even without full legalization.

A decade after the first legal toke, a lack of federal laws still weighs on cannabis companies

Netflix lost subscribers for the first time in a decade. Ads could be its saving grace

The term “4/20” was apparently coined by a group of California teenagers in 1971.

🍿 Netflix + ads?

__Bitter medicine…__ __[Twitter’s](https://robinhood.com/stocks/TWTR)__ taking drastic measures to get rid of its Elon headache — a sign it *really* doesn’t want to be under the Technoking’s tweet-happy thumb. Quick recap: two weeks ago Elon Musk [revealed](https://snacks.robinhood.com/newsletters/5lepo7UAINWNcn90JfK6HE/articles/68N6hnLpsgBLa7R4OZx8YF/) a 9.2% stake in Twitter. He then made a $43B offer to buy the company (after declining a seat on its board). Twitter responded by creating a “poison pill” — a tried-and-true way for companies to avoid a hostile takeover. 

- __How it works:__ If Elon tries to buy 15% of Twitter’s shares, the pill kicks in and lets every shareholder *except* Elon buy shares at half price — making a buyout way costlier for him (and diluting Twitter’s stock in the process). Twitter’s board voted unanimously to adopt the plan for one year. 

__The opposite of shareholder activism…__ is board *react-ivism*. Poison pills were invented in the 1980s to stop “corporate raiders” from taking over public companies. To date, no buyer has [ever](https://qz.com/2155991/what-is-a-poison-pill-inside-twitters-plan-to-block-elon-musk/) swallowed a poison pill and forced a takeover at an inflated price (they usually back down). 

- __Taking their pills:__ __[Netflix](https://robinhood.com/stocks/NFLX)__ [used](https://money.cnn.com/2012/11/05/technology/netflix-poison-pill/) a poison pill to stop activist investor Carl Icahn from taking over in 2012, and __[Papa John’s](https://robinhood.com/stocks/PZZA)__ adopted one to [prevent](https://www.nytimes.com/2018/07/23/business/papa-johns-john-schnatter-poison-pill.html) disgraced founder John Schnatter — Papa John himself — from regaining control in 2018.

Case of Elon-itis? Take one and call us in the morning (Peter Dazeley/Getty Images)

Swallow

__But poison pills aren’t 100% effective…__ and if anyone’s willing to swallow one, it might be Elon. With enough money and influence, it’s possible to avoid a poison pill. Theoretically, Elon could persuade 51% of shareholders to replace Twitter’s board — and then buy Twitter anyway, thereby circumventing the pill. But that would take a while, and Twitter’s board could choose another buyer in the meantime. Already, private-equity giants __Thoma Bravo__ and __Apollo__ are [reportedly](https://www.reuters.com/technology/apollo-global-considers-participating-bid-twitter-wsj-2022-04-18/) considering bids.

Twitter pops a “poison pill” to block Elon’s buyout. One possible side effect: selling to someone else.

__The sound of Pop2K...__ a road-trip playlist must. __[SiriusXM](https://robinhood.com/stocks/SIRI)__, the home of Howard Stern and all-day Bruce Springsteen radio, was once a struggling player in a dying industry. It has since turned its fortunes around by focusing on cars… and drivers who’d rather flip on their fave station than fiddle with an aux cord. But Sirius shares fell nearly 3% yesterday after an analyst said the car industry’s ongoing chip shortage could turn into a profit prob. 

- __Last quarter Sirius’ free-trial subscribers__ fell 19% from 2020, partly because of declining car sales. FYI: Sirius relies on converting its trial members into full-time subscribers to make $$. 

__Capitalizing on the commute...__ Sirius’ market cap is nearly the same as __[Spotify’s](https://robinhood.com/stocks/SPOT)__ (about [$26B](https://robinhood.com/stocks/SPOT)), thanks to its 32M+ monthly subscribers. Over the years, automakers from __[GM](https://robinhood.com/stocks/GM)__ to __[BMW](https://robinhood.com/stocks/BMWYY)__ have teamed up with Sirius to integrate its satellite-radio software into their newest models. Now over 80% of new cars sold are Sirius-equipped. But global supply shortages that’ve made car inventory so tight have also put the squeeze on Sirius to diversify:

- __Sirius is focused on creating [content](https://investor.siriusxm.com/investor-overview/press-releases/press-release-details/2022/SiriusXM-Reports-Fourth-Quarter-and-Full-Year-2021-Results/#:~:text=SiriusXM%20Revenue%20Increased%204%25%20to,the%20full%20year%20of%202020.)__ for on and off the dashboard, like hosting exclusive virtual concerts and building up its slate of podcasters.

Tunes

__Low churn is the key to profits…__ Till now, Sirius has largely dodged its car troubles by providing a wide variety of curated programming for road warriors, whether they want Top 40, podcasts, or Howard. And they’re still tuning in: Sirius’ churn rate (aka the # of subscribers who opt-out each year) is less than 2%. That’s better than traditional streamers like __[Disney+](https://robinhood.com/stocks/DIS)__, Spotify, and even Netflix. Yet its long-term success is still tied to the health of the car market.

SiriusXM could be the next company hit hard by the chip shortage, but “sticky” subscribers are helping cushion the blow

Twitter prescribed a “poison pill” to stop Elon’s buyout, but it’s not 100% effective

People born in early 1980s — aka elder millennials — held 8.6 jobs, on average, before they turned 35

💊 Twitter’s “poison pill”

__Open-mic night in the metaverse...__ where the drinks are virtual and the comedians can only roast your avatar. But if the comedy club wants to sell merch or tickets, they'll have to give __[Meta](https://robinhood.com/stocks/META)__ a huge cut. Last week Meta became the largest company to unveil its metaverse-monetization plans. Facebook’s parent [will charge](https://www.reuters.com/technology/meta-take-nearly-half-sales-made-by-its-metaverse-creators-fees-2022-04-13/) creators a 47.5% fee on sales of digital goodies and experiences sold through its VR platform, Horizon Worlds. Some background:

- __Horizon Worlds__ is *kind of* like the App Store, but in 3D (because we're not removed from reality enough already). You need its $300 Oculus VR headset to access it.
- __Instead of apps__ made by programmers, there are “worlds” created by everyday users (think: building a Sims house). And you can hop between worlds.
- __Avatars play and socialize__ in VR. Imagine: Latin dance clubs and games where all players can hear each other (feat. [screaming kids](https://youtu.be/zVWC1tnClSw?t=157)). 
- __Meta released Horizon Worlds__ in December after years of positioning it as a metaverse building block and says it has 300K users so far. 

__Back to met-onetization…__ Meta’s decision to take nearly half of creators’ sales is raising eyebrows. It’s significantly more than __[Apple’s](https://robinhood.com/stocks/AAPL)__ infamous 30% “App Tax” on in-app purchases and downloads, which Zuck himself has criticized. It’s also more than NFT platforms like __Sandbox__, __Decentraland__, and __OpenSea__ get — they take between 2% and 5%. 

- __Horizon’s “creators”__ include regular people as well as corporations like Wendy’s and its “[Wendyverse](https://www.thedrum.com/news/2022/03/30/wendy-s-unveils-wendyverse-within-meta-s-horizon-worlds).” Meta [said](https://www.oculus.com/blog/testing-new-tools-for-horizon-worlds-creators-to-earn-money/) it’ll test new ways to sell digital accessories and access to exclusive spaces (like: influencer AMAs).

Brb, creating my metaverse (Miguel Candela/Anadolu Agency via Getty Images)

MetaMoney

__If you build it, they might *not* come…__ Meta’s putting the cart before the virtual horse. For years Facebook put off monetizing through ads, prioritizing growth over $$. As J. Timberlake [put it](https://youtu.be/k5fJmkv02is?t=100) in “The Social Network”: “You don’t even know what the thing is yet.” Meta’s trying to profit from Horizon before it takes off, and has already invested $10B in its meta-vision — but it’s still TBD whether consumers will spend $300 on bulky headsets to hang there.

Meta reveals its hefty metaverse-monetization plans, taking a bold risk that could alienate “creators”

__Crypto in the capitol(s)…__ While the federal government debates how to regulate cryptocurrencies, lobbyists are taking a state-by-state approach. Pro-crypto lawmakers in states like Florida have passed bills that make it easier for the industry to operate. Already this year 150+ crypto-related bills have been proposed in 40 states. But on the federal level, the Biden admin [thinks](https://www.wsj.com/articles/washington-debates-cryptocurrency-rules-with-sights-set-on-stablecoins-11649588581) stablecoins (pegged to currencies like the USD) could be the real jumping-off point for digital-currency regulation.

__The new silver and gold…__ are lithium and cobalt, the crown jewels of the electric-vehicle biz. The metals are essential to EV batteries, and their prices are soaring: In the past decade cobalt prices have 3X’d and lithium prices have *18X’d*. Now carmakers are securing supply. Last week, __[Ford](https://robinhood.com/stocks/F)__ reportedly [bagged](https://www.wsj.com/articles/gm-strikes-deal-to-secure-cobalt-for-electric-car-batteries-11649775349) a deal with extraction startup __Lake Resources__ to pull lithium from Argentina, while __[GM](https://robinhood.com/stocks/GM)__ teamed up with mining giant __[Glencore](https://robinhood.com/stocks/GLNCY)__ to nab cobalt from Australia. But supplies are still so low that __[Tesla’s](https://robinhood.com/stocks/TSLA)__ considering [mining](https://www.cnbc.com/2022/04/08/elon-musk-telsa-may-have-get-into-mining-refining-lithium-directly.html) its own metals.

__The road to net zero...__ This Earth Day (Friday) high oil prices and the war in Ukraine have boosted global interest in energy independence and sustainability. One option gaining steam: nuclear energy. Last week South Korea (one of the largest fossil-fuel importers) [reversed](https://www.ft.com/content/6329e02a-d3e9-4812-9062-d5fda8ad7c61) plans to phase out its nuclear projects. In the US, President Biden has already committed $1B to nuclear investments and research. Shares of some uranium companies like __[NexGen](https://robinhood.com/stocks/NXE)__ and __[Uranium Energy](https://robinhood.com/stocks/UEC)__, which make the fuel for nuclear power plants, have more than doubled.

__Up in the air...__ It’s a pesky paradox for US airlines: flight demand for everything from domestic beach weekends to European tours is soaring heading into the summer travel season. But so are airlines’ operating [costs](https://www.reuters.com/business/aerospace-defense/us-airline-demand-costs-soaring-earnings-kick-off-2022-04-12/), like labor and fuel, which spiked 30% over the past month. Airlines have [raised](https://www.wsj.com/articles/airfares-jumped-nearly-11-in-march-from-prior-month-11649803255) fares in a push for profitability, but so far, vacay-hungry fliers don’t seem deterred. __[Delta](https://robinhood.com/stocks/DAL)__ said last week that it became profitable again in March. We’ll see if __[United](https://robinhood.com/stocks/UAL)__, __[American](https://robinhood.com/stocks/AAL)__, and __[Spirit](https://robinhood.com/stocks/SAVE)__ follow suit when they report this week.

- __[Throwback](https://snacks.robinhood.com/newsletters/jtHnqwq8xydDjbgiulBNB/articles/52RH4YD9VAEjyTWHTDlDNR/):__ Time to limber up: __[Nintendo](https://robinhood.com/stocks/NTDOY)__ is reviving its old “Wii Sports” game for its newer Switch console, banking on the appeal of lo-fi, motion-controlled nostalgia over ultra-immersive AR.
- __[Sneaky-flation](https://snacks.robinhood.com/newsletters/jtHnqwq8xydDjbgiulBNB/):__ Companies are getting creative in handling inflation: __[Pepsi’s](https://robinhood.com/stocks/PEP)__ shrinking packaging to mask price hikes, __[GM’s](https://robinhood.com/stocks/GM)__ ditching heated seats, and __[Hilton’s](https://robinhood.com/stocks/HLT)__ nixing daily housekeeping. 
- __[Upstream](https://snacks.robinhood.com/newsletters/aHxrhlzudIs7bopZbJSGR/articles/jw8WzXcTXZhgCC7cyV676/):__ __[Warner Bros. Discovery](https://robinhood.com/stocks/WBD)__ is Hollywood’s newest streaming heavyweight: after last week’s $43B media merger, HBO hits like “Euphoria” and Discovery classics like “Shark Week” are under the same roof.

Meta reveals hefty metaverse-monetization plans, a bold risk that could alienate “creators”

The average tax refund is set to top $3,400 this year, nearly 14% higher than last year

👾 Metaverse money

__Plus isn’t always positive…__ CNN+ is off to a rough start. The network that invented cable news launched its $6/month subscription streaming service two weeks ago. It went live days before CNN’s parent [merged](https://snacks.robinhood.com/newsletters/aHxrhlzudIs7bopZbJSGR/articles/jw8WzXcTXZhgCC7cyV676/) with Discovery to form __[Warner Bros. Discovery](https://robinhood.com/stocks/WBD)__, and it raised [questions](https://www.axios.com/cnn-plus-cuts-warner-brothers-discovery-1be0ac3a-6952-4af0-b8e2-03dd6ae0839c.html) that the launch may’ve been rushed. Sure enough, early numbers don’t look good:

- __Tiny viewership:__ CNN+ is said to have fewer than 10K daily viewers, making its goal of 2M subscribers in its first year seem far-fetched. __[Disney+](https://robinhood.com/stocks/DIS)__ got 10M subs on its *first day*.
- __Limited programming:__ The app does *not* have live news (more on that in a sec). It *does* have a Jake Tapper-hosted book club and a show about Anderson Cooper navigating parenthood.
- __Big cuts:__ Execs are reportedly planning to slash hundreds of millions from the project’s budget, which was originally $1B.

__Stuck in the carriage…__ As more consumers ditch cable, media OGs have repackaged their content in apps to appeal to the cord-cutting crowd. Discovery+, Disney+, and HBO Max offer the programming those brands are known for — *plus* extra content (hence all the + signs). But CNN can’t include live news in its app because of “carriage contracts.”

- __Carriage contracts__ give cable giants like __[Comcast](https://robinhood.com/stocks/CMCSA)__ and __[AT&T](https://robinhood.com/stocks/T)__ exclusive rights to live news from outlets like CNN — and prevent simulcasts on apps.
- __Cable sold separately:__ If you subscribe to CNN+, you don’t actually get CNN. In contrast, HBO Max subscribers get *all* HBO shows and then some.

Can CNN’s A-Team get people to pay for streaming news? (Slaven Vlasic/Getty Images)

Nonplussed

__Streaming is fighting subscription fatigue…__ For news junkies who already pay for cable — or cord-cutters who pay for 12 different TV apps and don’t know Chris Wallace from Chris Hemsworth — CNN+ may feel unnecessary. One possible solution: bundling. Many analysts expect CNN+ to get bundled with other WBD apps like HBO Max and Discovery+ to attract subscribers.

CNN’s new streaming service is reportedly pulling in fewer than 10K daily viewers, and it’s raising concerns that cord-cutters won’t pay for news

__A DIY dilemma…__ [Millions](https://www.wsj.com/articles/etsy-sellers-strike-as-site-ramps-up-to-battle-amazon-11649681740) of small-biz merchants use [Etsy’s](https://robinhood.com/stocks/ETSY) ecommerce platform to sell everything from embroidered crewnecks to hand-sculpted vases. Now thousands of those vendors are on strike, closing up their shops for the week. They’re protesting transaction fees that are going from 5% to 6.5%. Just three years ago fees were half that. 

__Blinged-out face masks…__ circa: 2020. Etsy was the [go-to](https://www.wsj.com/articles/etsy-sellers-strike-as-site-ramps-up-to-battle-amazon-11649681740) marketplace in the early days of the pandemic, when mask scarcity at major retailers forced consumers to go the homemade route. As a result Etsy saw record profits and was the S&P’s [second-best-performing](https://snacks.robinhood.com/newsletters/1huKaRyrqLQlWLkXap0P29/) stock in 2020 (after __[Tesla](https://robinhood.com/stocks/TSLA)__). But like other pandemic thrivers, sales are starting to cool as shoppers return to their pre-Covid routines and shopping habits. Now Etsy’s execs want to __[Amazon](https://robinhood.com/stocks/AMZN)__-ify the biz by widening its appeal: 

- __Etsy's CEO said it’s competing__ against some of the biggest retailers and needs to hike fees to reinvest in elements of its core biz, such as speeding up response times to sellers. 
- __Etsy’s sellers have complained__ that the rapid growth has also attracted a flood of wholesale and mass-produced vendors — which is against company policy.

Crafty

__Etsy risks losing what made it special…__ its sellers. Etsy now aspires to be the first place you go to shop online. But those Amazon-esque ambitions conflict with its original mission of providing a platform for artists, arts-and-crafts folks, and their customers. The tension playing out between Etsy and its sellers suggests that as it aims for a bigger piece of the e-commerce pie, the mission may have to change.

Etsy sellers go on strike, protesting the Amazon-ification of the niche marketplace

CNN+ is struggling, raising doubts about demand for streaming news

Interns are much less sold on remote work than seasoned employees, with 70% viewing it negatively

📡 CNN’s streaming struggle

__It’s not easy being cheesy…__ especially when inflation is Flamin’ Hot. Thanks to rising prices, your next bag of Cheetos may be less satisfying: food giants are [shrinking](https://www.businessinsider.com/how-companies-charge-the-same-for-less-stuff-shrinkflation-doritos-2022-3) their snacks to mask price hikes, just one way companies are trying to manage costs that keep going up. Last month, consumer prices [rose](https://www.wsj.com/articles/us-inflation-consumer-price-index-march-2022-11649725215) 8.5% from last year for the biggest spike in four decades. Driving the increase: skyrocketing energy and food prices.

- __You’re not wrong:__ bags of Doritos are coming with five [fewer](https://www.newsweek.com/not-your-imagination-doritos-bag-has-5-fewer-chips-due-shrinkflation-1689450) chips. And __[Pepsi](https://robinhood.com/stocks/PEP)__ [shrank](https://www.cnet.com/personal-finance/gatorade-doritos-wheat-thins-why-are-grocery-products-shrinking/) the packaging of Gatorade and Wheat Thins, giving customers the illusion prices aren’t rising when they really are.

__#Flation takes many forms…__ and some are easier to spot than others. Snack companies can cut costs just by changing packaging: shrinking it, [rebranding](https://www.wsj.com/articles/us-inflation-consumer-price-index-march-2022-11649725215) it as “limited edition,” or both (“Birthday Edition” [Oreos](https://www.oreo.com/oreo-110th-birthday-chocolate-confetti-cake) = smaller *and* pricier). And the “creativity” isn’t confined to the supermarket: 

- __Swap-flation:__ __[GM](https://robinhood.com/stocks/GM)__ is [swapping](https://www.cnbc.com/2022/02/20/the-chip-shortage-is-so-bad-gm-dropped-heated-seats-in-winter.html) out premium features like heated seats for more basic, butt-freezing alternatives.
- __Skimp-flation:__ __[Hilton](https://robinhood.com/stocks/HLT)__ and __[Marriott](https://robinhood.com/stocks/MAR)__ are [ditching](https://www.ft.com/content/042af8db-a201-4d9d-9f61-cc783be0d725) once standard services like room cleaning, making them “opt in” instead; __[Hyatt](https://robinhood.com/stocks/H)__ even nixed its mini shampoo bottles.
- __Robo-flation:__ Banks and airlines are using chatbots instead of employees, and labor-strapped restaurants are [replacing](https://www.nytimes.com/2021/10/10/upshot/shadow-inflation-analysis.html) waitstaff with QR codes.

Navigating shrinkflation in the snack aisle (Mok Jee Chuang/EyeEm/Getty Images)

Flated

__Shrinkflation could outlast inflation…__ Even if fuel costs return to normal this year, you might still be a few Doritos short of a full bag. Inflation’s expected to slow in the coming months as Fed rate hikes kick into gear. But just because prices cool doesn’t mean #flation strategies will disappear: experts say companies are unlikely to bring back larger sizes or free perks and services once they’ve trained consumers to expect something less.

Consumer prices jump the most in 4 decades, unleashing a flurry of creative ’flation

__Bowser goes bowling...__ From the Game Boy to the Wii, __[Nintendo](https://robinhood.com/stocks/NTDOY)__ popularized video games as a family-friendly activity. Now the 133-year-old Japanese gaming icon is bringing together two of its most popular products. This month Nintendo will [release](https://www.theverge.com/2022/4/11/23014891/nintendo-switch-sports-wii-bowling-features-mini-games-price-release-date-hands-on) “Nintendo Switch Sports,” a Switch adaptation of “Wii Sports,” the top-selling Wii game that sold 83M copies.

- __Interactive:__ Joy-Con controllers (which break off from the Switch tablet) let you kick, sprint, and hit virtual balls with your hands. You can even [strap](https://www.youtube.com/watch?v=TZ16-1YIRAc) the Joy-Con to your leg for soccer.
- __Immersive:__ Six mini-games (including bowling, tennis, and sword dueling) play out in vivid graphics on your Switch screen or TV.

__Nostalgia crossing...__ Despite pesky supply shortages, Nintendo [boosted](https://www.shacknews.com/article/128644/nintendo-ntdoy-increases-sales-and-earnings-guidance-for-fy-2022) its sales and profit outlook for the year. Its greatest strength lies in its iconic franchises, from Mario and Pokémon to the Wii series and Switch console — and leveraging them into new but familiar products. “Switch Sports” could gain hit status by merging two best-sellers:

- __Wii winning:__ Released in 2006, the Wii introduced motion-controlled gaming to a wide audience with winners like “Mario Kart” and “Wii Sports” ([shattering](https://www.youtube.com/watch?v=D_uXEWKdsTY) TVs in the process).
- __Switch it up:__ This year, Switch [overtook](https://www.engadget.com/nintendo-switch-sales-have-surpassed-the-wii-090515380.html) Wii to become Nintendo's best-selling home console ever with 100M+ units sold since its 2017 launch. Thanks, “Animal Crossing.”

Wiin

__Nintendo doesn’t need to go meta…__ Its Wii (and now Switch) games are kind of like a mini-metaverse where you interact with friends, minus the heavy and disorienting headsets. That’s why Nintendo says it’s [not interested](https://www.ign.com/articles/nintendo-metaverse) in getting into the metaverse right now. Products with low barriers to entry from consumer faves like Nintendo could be a threat to the more immersive meta vision that __[Meta’s](https://robinhood.com/stocks/META)__ banking on.

Nintendo merges 2 hit franchises in an interactive Switch game, banking on the power of nostalgia

Shrinking snacks and opt-in room service: companies get creative to manage inflation

There are 170K ways to customize a Starbucks drink order

🔎 Beyond shrinkflation

__Bugs Bunny and Guy Fieri just moved in together…__ They’re Warner Brothers now. Yesterday, __WarnerMedia__ and __Discovery__ finally [completed](https://www.nytimes.com/2022/04/10/business/media/warner-bros-discovery.html) their $43B merger, creating a new Hollywood heavyweight for the streaming era. Longtime Discovery CEO David Zaslav — aka Zaz — will run the new biz, __[Warner Bros. Discovery](https://robinhood.com/stocks/WBD)__. 

- __Upside:__ WBD combines classic IP, streaming hits, and cable catnip under one roof (think: “Batman” *and* “Game of Thrones” *and* “Shark Week”). It also has 94M subscribers between HBO Max and Discovery+, putting it closer to __[Disney](https://robinhood.com/stocks/DIS)__ (130M) and __[Netflix](https://robinhood.com/stocks/NFLX)__ (222M).
- __Downside:__ WBD has $55B of debt, which could lead to “synergies” (aka layoffs). Several high-profile execs have already been shown the door. 

__Back to (show) business…__ WBD is going full Hollywood. Zaz has spent months meeting with Tinseltown’s biggest names to talk strategy. The goal: distance WBD from WarnerMedia’s former parent, __[AT&T](https://robinhood.com/stocks/T)__. 

- __Flashback:__ AT&T bought WarnerMedia in 2016 and planned to run it like a tech biz. But development stalled during the 20 months it took for the deal to be approved — and all the while Netflix and __[Amazon](https://robinhood.com/stocks/AMZN)__ poached top talent and churned out content.
- __Odd couples:__ Corporate giants have bought unrelated media businesses before: __[Coke](https://robinhood.com/stocks/KO)__ once owned __Columbia Pictures__ and, more recently, __[GE](https://robinhood.com/stocks/GE)__ owned __NBC__. Both were eventually offloaded.

Welcome to Hollywood, Zaz (Roy Rochlin/Getty Images)

DiscoBros

__The key to streaming may be streamlining…__ WBD is more streamlined than AT&T, which was always a telecom biz at heart. But it’s still clunkier than its streaming-centric rivals because its top content straddles cable TV and streaming services. WBD has enough hot IP to compete with Netflix and Disney in the streaming wars. But added expenses related to cable programming and debt repayment may leave a narrow path to streaming profitability, and a big incentive to streamline even further.

Warner Bros. Discovery is Hollywood’s new heavyweight, but it faces an upstream battle

__*Cruising* past the cops…__ ICYMI: a recent viral [video](https://www.newsweek.com/video-police-driverless-car-gm-cruise-video-viral-1696833) showed one of __[GM’s](https://robinhood.com/stocks/GM)__ Cruise robo-taxis being pulled over by San Francisco police, before it briefly drove off, leaving the officers looking confused. The stop appeared to be for missing headlights. Cruise said the car yielded to police and then drove to the nearest safe location “as intended.” How we got here:

- __In February:__ Cruise [rolled](https://fortune.com/2022/02/01/cruise-robotaxi-self-driving-car-san-francisco/) out its driverless robo-taxi service to the public in San Francisco. Up until then only employees could use it. 
- __Last month:__ __[Google’s](https://robinhood.com/stocks/GOOGL)__ Waymo robo-taxis [joined](https://www.wsj.com/articles/waymo-to-send-driverless-cars-through-san-francisco-11648648800) Cruise in SF and [Phoenix](https://www.azcentral.com/story/money/business/consumers/2022/03/30/waymo-expanding-autonomous-vehicle-service-downtown-phoenix/7209759001/) by offering driverless rides for its employees. 

__The (driverless) future has arrived...__ While you weren’t looking — and after years of hype — fully self-driving cars became a reality in the first US cities. Nearly [30](https://www.ncsl.org/research/transportation/autonomous-vehicles-self-driving-vehicles-enacted-legislation.aspx#:~:text=Twenty%2Dnine%20states%E2%80%94Alabama%2C,%2C%20Virginia%2C%20Vermont%2C%20Washington%20and) US states have now passed legislation on autonomous driving, with California issuing the first commercial-use [permits](https://www.reuters.com/technology/california-issues-permits-cruise-waymo-autonomous-vehicle-service-2022-02-28/) in 2018. Still, the road ahead for mass public acceptance is long. Voters remain skeptical, with nearly half of Americans [saying](https://www.engadget.com/many-americans-distrust-emerging-technology-new-study-finds-170038843.html) they’re uncomfortable sharing the road with self-driving cars, and two-thirds saying they wouldn’t get in one.

Yield

__With great virality comes great responsibility…__ The Cruise traffic stop was a relatively harmless incident: no one was hurt and the car apparently did what it was programmed to do. But like air travel once was, self-driving tech is dependent on the public believing it’s safe. Uber once had high-flying autonomous ambitions that came to a [halt](https://www.theverge.com/2020/12/7/22158745/uber-selling-autonomous-vehicle-business-aurora-innovation) after one of its partially self-driving cars struck and killed a pedestrian (the car’s “safety driver” was [charged](https://www.reuters.com/article/uber-selfdriving/safety-driver-in-fatal-arizona-uber-self-driving-car-crash-charged-with-homicide-idUSKBN26708P) with negligent homicide). Now that fully driverless cars are on the road, videos showing them interacting with the real world could become make or break for companies like Cruise and Waymo as they expand.

GM’s self-driving-car unit gets its first viral moment — a sign of things to come as robo-taxis hit city streets

Hollywood's newest heavyweight, Warner Bros. Discovery, faces an upstream battle

8 of the 10 busiest airports in the world are in the US, with Atlanta’s Hartsfield-Jackson having retaken the top spot

🎥 Hollywood’s new heavyweight

__A new crisis is building...__ From fertilizing [manure](https://www.reuters.com/world/us/us-manure-is-hot-commodity-amid-commercial-fertilizer-shortage-2022-04-06/) to tractor-fueling diesel, the inputs that power the world’s agriculture industry are in short supply. Why it matters: these shortages make it hard for farmers to feed the world and have caused global food prices to surge at their [fastest pace](https://www.bloomberg.com/news/articles/2022-04-08/food-prices-jump-most-on-record-as-war-sparks-supply-chaos?sref=px9VEDa6) *ever*: a record 13% jump last month. The pandemic gave us shortages and sticky inflation. Now Russia’s war on Ukraine — plus Covid lockdowns in China’s farming provinces — are making a bad situation worse. 

- __Pricey breadbasket:__ Wheat and corn prices soared more than [19%](https://www.theguardian.com/global-development/2022/apr/08/global-food-prices-rise-to-highest-ever-levels-after-russian-invasion-ukraine-wheat) last month as war + sanctions crush supply from the key Black Sea “breadbasket” region. 
- __Empty breadbasket:__ Food staples are running low as Russia bombs Ukrainian wheat fields and critical shipping ports remain closed. 
- __FYI:__ Russia is the world’s largest wheat exporter, while Ukraine accounts for a quarter of all grains trade and is the #1 exporter of sunflower oil. 

__Corn Flakes price hikes…__ are just one ripple effect from a major crisis. Americans notice food inflation in the form of pricier __[General Mills](https://robinhood.com/stocks/GIS)__ Cheerios or __[Kellogg’s](https://robinhood.com/stocks/K)__ Pop-Tarts. While US food prices are up [8%](https://www.bls.gov/cpi/) from a year ago, the latest rally is hitting the world’s poor hardest. Countries in the Middle East and North Africa, for example, are feeling the brunt of food shortages because they largely import their staples. Russia’s war could plunge [40M](https://www.cgdev.org/blog/price-spike-caused-ukraine-war-will-push-over-40-million-poverty-how-should-we-respond) more people into extreme poverty if it continues this way.

On the brink of a global food crisis  (Burak Kara/Getty Images)

Bread

__It’s an imperfect storm…__ From the pandemic and war to severe weather and historic droughts, a rare combo of terrible circumstances is putting every aspect of food production under pressure — *all at once*. Global food prices have surged 75% since mid-2020 and are expected to keep climbing. The UN [said](https://www.bloomberg.com/news/articles/2022-03-31/middle-east-at-breaking-point-over-food-prices-un-says) it’s putting some people in poorer countries at a “breaking point.” Food insecurity is known to lead to more civil conflict and unrest — it was bread prices that helped spark the Arab Spring over a decade ago.

Farm-ageddon: The world’s food supply is under threat as a storm of rare conditions brews

__The drones are coming…__ with your allergy meds. Retailers from __[Amazon](https://robinhood.com/stocks/AMZN)__ to __[Walmart](https://robinhood.com/stocks/WMT)__ are finally [starting](https://www.wsj.com/articles/amazon-alphabet-and-others-are-quietly-rolling-out-drone-delivery-across-america-11648872022) to deploy delivery drones after years of hype. Last week, residents of Frisco, Texas, became the [first](https://www.dallasnews.com/business/retail/2022/04/07/see-drones-in-action-in-frisco-that-walgreens-and-wing-hope-to-use-more-broadly-for-deliveries/) to receive robo-packages from __[Walgreens](https://robinhood.com/stocks/WBA)__, via its __[Google](https://robinhood.com/stocks/GOOGL)__-owned drone supplier Wing. Amazon is rolling out commercial drone deliveries this fall, with plans to deliver 500M aerial packages/year. While drone advocates say the delivery tech could reduce emissions (fewer traffic-clogging trucks), regulators have yet to give the green light for nationwide shipments.

__The paradox of recession-omics...__ By most metrics, the US economy is booming: unemployment is back to pre-pandemic levels; salaries are rising at their fastest clip in decades; and consumers are splurging on spring fits and summer vacays. And yet… some economists are bracing for a downturn. Their reasoning: the Fed can’t cool the worst inflation in 40 years without also slamming the brakes on growth. Last week __[Deutsche Bank](https://robinhood.com/stocks/DB)__ was the first on Wall Street to predict a recession, followed by __[Bank of America](https://robinhood.com/stocks/BAC)__ warning of a “recession shock.”

__Fanny packs and flower crowns...__ #FestivalSzn is back. Coachella, Cali’s most Insta-worthy music festival, returns for the first time in two years this weekend — launching what could be a blockbuster summer for live events. When the pandemic hit, the music stopped. Now it’s back with a vengeance, and people are ready to *dance*. Last year, some bookers sold a year's worth of tickets in six months. Concert giant __[Live Nation](https://robinhood.com/stocks/LYV)__, a rival to Chella parent __AEG__, says ticket sales are [up](https://www.bloomberg.com/news/articles/2022-02-24/live-nation-jumps-as-music-promoter-predicts-concert-comeback) 45% from 2019 and predicts its best year ever.

__Opening the vaults...__ Big banks kick off earnings season this week, giving investors the first peek at how an [*eventful*](https://snacks.robinhood.com/newsletters/3lyRcv80sVxPoaiv3W15GL/) first quarter affected corporate profits. Rising interest rates, which let banks charge more for loans, mortgages, and credit cards are expected to [boost](https://www.forbes.com/sites/sergeiklebnikov/2022/01/14/heres-why-big-bank-stocks-like-jpmorgan-are-struggling-despite-solid-earnings/?sh=2a2fb1257d68) profits at __[JPMorgan Chase](https://robinhood.com/stocks/JPM)__, __[Wells Fargo](https://robinhood.com/stocks/WFC)__, and __[Citi](https://robinhood.com/stocks/C)__. On the flip side, Citi and JPM expect big losses related to their holdings in Russia. And a dramatic slowdown in IPO and deal-making activity so far this year probably won’t help either.

- __[Zero](https://snacks.robinhood.com/newsletters/6CvoAkhTzggBHZuGf3azk2/articles/svsEnsjFsXcHb4qgGjdHj/):__ China’s financial capital remains locked down over a spike in Covid cases, with ~26M Shanghai residents forced to stay home — monitored by drones and robo-dogs.
- __[Turbulent](https://snacks.robinhood.com/newsletters/22c5VDDeeLOi4iyaybumsG/articles/6v13W7lFCwtbaBJ73GcFzB/):__ __[JetBlue](https://robinhood.com/stocks/JBLU)__ outbid __[Frontier](https://robinhood.com/stocks/ULCC)__ with a $3.6B offer to buy budget airline __[Spirit](https://robinhood.com/stocks/SAVE)__. Pilot shortages and demand for scarce tarmac gates are forcing smaller airlines to merge to survive.
- __[Muskular](https://snacks.robinhood.com/newsletters/5lepo7UAINWNcn90JfK6HE/articles/68N6hnLpsgBLa7R4OZx8YF/):__ Elon became __[Twitter’s](https://robinhood.com/stocks/TWTR)__ biggest shareholder after nabbing a 9.2% stake — and a board seat. The web’s “town square” could get a makeover: Musk teased upcoming “significant improvements” (edit button?).

Utah is the most financially literate US state — one reason: nearly 85% of its residents spend less than they make