__Bringing the ’90s back…__ in those high-school low-rises. __[Levi’s](https://robinhood.com/stocks/LEVI)__ scored big last quarter as you splurged on jumpers and jean jackets for IRL date nights. Its CEO said that [despite](https://www.cnbc.com/2022/04/06/levi-strauss-co-levi-reports-q1-2022-earnings-beat.html) hiking prices, customers still shelled out more $$ for their jeans and cotton tees — and expects strong sales to continue. Total sales jumped 22% even after the denim icon took a $60M hit to combat supply snafus. Digi-sales jumped 16%, making up a quarter of Levi’s revenue. Still, Levi’s shares are down 20%+ over the past year. 

__501-fitting appointment…__ Retailers lost [billions](https://www.forrester.com/press-newsroom/forrester-retail-will-see-a-2-1-trillion-loss-globally-in-2020-due-to-coronavirus-pandemic/) during the pandemic as we swapped distressed denim for old college sweats. Since Levi’s couldn’t control its wholesaler’s closures (like: __[Kohl’s](https://robinhood.com/stocks/KSS)__ and __[Nordstrom](https://robinhood.com/stocks/JWN)__), it focused on selling directly through its own channels, both online and in stores. As part of that strategy, Levi’s [built](https://www.levistrauss.com/2020/09/29/levis-nextgen-stores-come-to-north-america/) its first handful of upgraded locations it’s dubbed “NextGen,” and it plans to roll out 30 more this year:

- __Tailor shop:__ Customers [pick](https://www.levi.com/US/en_US/features/tailor-shop) from a brunch-style menu of services like: custom embroidery, alterations, even converting old jeans into Coachella-worthy jorts. 
- __Endless AI-sles:__ Levi’s uses artificial intelligence to predict what style and price will sell best in each location (think: shorts in Silver Lake, trucker jackets in Brooklyn).
- __Payoff:__ Sales at company-operated Levi’s stores jumped 48% last quarter, while D2C sales made up 39% of total sales.

High rise, high price (Ben Gabbe/Getty Images for Nordstrom)

Rivet

__Levi's is in retail’s sweet spot…__ Its customers are paying higher prices *and* buying directly. That sweetens profits, since there’s no one in the middle to take a cut. But to justify higher prices and boost direct sales, retailers need to premium-ify the shopping experience (or at least give it some pizazz). Instead of buying $30 Levi’s from Ross, you might choose the Levi’s store to get a flower patch sewn into your jean jacket.

Levi’s bet on brick-and-mortar and personalized denim is driving a sales boom — putting the brand in retail’s sweet spot

__It’s Day 12…__ and there’s no sign of Shanghai’s lockdown lifting. Almost two weeks ago, China [locked down](https://www.wsj.com/articles/manufacturers-grind-to-a-halt-in-china-as-lockdowns-expand-11649343420?mod=hp_lead_pos4) its largest city and financial capital to contain its biggest Covid outbreak in two years. Since then, China’s zero-Covid policy has brought life to a halt for 26M people, virtually freezing one of the world’s most important manufacturing hubs.

- __Drones and robo-dogs__ are [circulating](https://www.insider.com/shanghai-deploys-drones-robot-dogs-broadcast-covid-19-lockdown-guidelines-2022-4) to remind citizens to obey the rules and curb their “soul’s desire for freedom.” Many residents are running low on [food](https://www.wsj.com/articles/shanghai-in-lockdown-struggles-to-feed-itself-11649353336) because delivery services have been disrupted (and they can’t go to the grocery store). 
- __Office sleepover:__ Some bankers are stuck [sleeping](https://www.wsj.com/articles/shanghai-workers-sleep-at-the-office-as-china-extends-covid-19-lockdown-11649244601) under their desks and brushing teeth with their coworkers.

__Indefinite lockdown, definite damage…__ Shanghai accounts for 4% of China’s GDP and 10% of its exports, so the lockdown threatens to slow the entire country’s economy. But the rest of the world could be affected, too, since Shanghai is an industrial nerve center. 

- __Closed factories:__ __[Tesla](https://robinhood.com/stocks/TSLA)__, __[Volkswagen](https://robinhood.com/stocks/VWAGY)__, and German industrial giant __ThyssenKrupp__ have shut their Shanghai plants for two weeks and counting; production has slowed for 80% of Shanghai-based manufacturers.
- __Empty ports:__ Cargo volume in Shanghai’s port — among the world’s busiest — has [dropped](https://www.ft.com/content/572eae5f-d47b-4e1b-a7c2-be63bd45000a) by a third since mid-March. Shipping giant __[Maersk](https://robinhood.com/stocks/AMKBY)__ says the lockdown will also reduce trucking in and out of the city by 30%.
- __Mounting losses:__ After this clampdown and a similar [quarantine](https://snacks.robinhood.com/newsletters/61f1B3p6bwLVtvt34XMAtW/articles/3RvjyEpf0eI4nWt1Q0lGVg/) in Shenzhen last month, half of US companies in China have reduced their annual sales estimates.

Quar

__Supply struggles could speed the “decoupling”…__ of the West’s business ties with China. If a pandemic and a war didn’t persuade global businesses to strengthen their own supply chains, this Shanghai shutdown might. Chinese citizens have no choice but to obey their government and its robo-dogs. But multinational companies have options — and a growing list of reasons to reduce dependence on China.

The biggest city in China is locked down — and the groaning supply chain is about to feel it

Levi’s bet on direct-to-consumer denim and personalized fit is paying off

Dow Jones

S&P 500

Nasdaq

Bitcoin

Half of US streaming users feel overwhelmed by the deluge of programming on streaming services — but 90% have no plans to cut back

👖 Levi’s pricing power

__Red shirts & green jackets...__ 25 years after his first Masters victory, Tiger Woods is teeing up once again to compete in the Super Bowl of golf tourneys today. The return of the five-time champ made headlines, especially after a serious car accident almost cost him a leg a year ago. But that’s not the only reason: Tiger, who’s famously sponsored by __[Nike](https://robinhood.com/stocks/NKE)__, was spotted [practicing](https://www.axios.com/tiger-woods-shoes-masters-nike-footjoy-211463ac-1852-4eeb-a44f-2ed37e77c1db.html?utm_source=newsletter&utm_medium=email&utm_campaign=newsletter_axiossports&stream=top) in a pair of rival brand FootJoy shoes this week. Why it matters:

- __In 1996:__ Nike turned heads when it signed the still unknown 20-year-old to a sponsorship deal worth a then eye-popping record $40M (nearly $73M in today’s money).
- __Today:__ Tiger’s made over half a billion dollars rocking Nike polos, hats, and shoes ever since. He’s still a Nike athlete, and [said](https://sports.yahoo.com/tiger-woods-explains-ditching-nike-shoes-for-foot-joy-at-masters-190038857.html) he chose the FootJoys to help with his post-accident mobility. 
- __FYI:__ FootJoy is owned by golf-merch company __[Acushnet](https://robinhood.com/stocks/GOLF)__. The stock popped 3% after Tiger was seen in its kicks.

__Splashy sponsorships…__ Star athletes' astronomical salaries are nothing new, but playing isn’t usually their primary source of income. Endorsement deals [made](https://www.businessinsider.com/athletes-endorsements-nba-golf-tennis-2019-6#tiger-woods-made-97-of-his-earnings-from-endorsements-5) up nearly all of Woods' [$800M](https://www.lifeandstylemag.com/posts/what-is-tiger-woods-net-worth-inside-his-massive-fortune/) net worth in 2019. In return, brands get to borrow celebrity status to build credibility and rack up fans. At the 2019 Masters, Nike got [$22M](https://www.cnn.com/2019/04/15/media/tiger-woods-nike-ad/index.html) worth of exposure just from Tiger’s come-from-behind Sunday win alone.

Tiger just doing it at the ’97 Masters (Stephen Munday/Allsport/Getty Images)

Green

__The post-endorsement era is coming…__ While athlete sponsorships aren’t going away, big-name players don’t necessarily need brands anymore the way brands need them. The kind of Nike mega-deals pioneered by Michael Jordan and Tiger Woods are no longer inevitable for top players. See: fellow GOAT Tom Brady, who’s leveraging his social-media following to [create](https://www.forbes.com/sites/andyfrye/2022/01/12/tom-brady-unveils-his-namesake-apparel-brand/?sh=3e7c71da1105) his own apparel line. Tiger's FootJoy-clad feet could also signal the dwindling power of official sponsors.

Tiger returns to the Masters — but his sponsor Nike may be losing influence in the post-endorsement era

__Flight costs $40…__ carry-on + sandwich costs $400. This week __[JetBlue](https://robinhood.com/stocks/JBLU)__ made a $3.6B [offer](https://www.wsj.com/articles/jetblue-offers-to-buy-spirit-in-all-cash-deal-11649191019?mod=hp_lista_pos4) to buy budget airline __[Spirit](https://robinhood.com/stocks/SAVE)__, topping the $2.9B bid [made](https://snacks.robinhood.com/newsletters/1I3jIJQkqK0ygv51yekmCQ/articles/V8eaYxPExXyVEX2Vdr6Jz/) by rival __[Frontier](https://robinhood.com/stocks/ULCC)__ in February. Awkward, since Spirit and Frontier had [already agreed](https://snacks.robinhood.com/newsletters/1I3jIJQkqK0ygv51yekmCQ/articles/V8eaYxPExXyVEX2Vdr6Jz/) to a merger that would’ve created a budget behemoth. Spirit said its board would discuss the offer before accepting either bid. 

- __JetBlue says__ its offer is best for investors, at a 37% premium over Frontier’s. JB wants to spruce up Spirit planes and add ’em to its fleet, not run a separate carrier.
- __Frontier says__ a JB merger would boost flight prices and reduce options for fliers, since the airlines have similar routes. 
- __Odd couple:__ Analysts [called](https://www.cnbc.com/2022/04/06/why-jetblue-is-willing-to-shell-out-3point6-billion-for-discount-airline-spirit.html) the bid a “headscratcher” because JetBlue is known for perks like free Terra chips while Spirit is known for free nothing. JB also offers a business-class tier, while Spirit… doesn’t.

__Spirit in the sky…__ needs a companion. Four carriers dominate the US airline industry: __[American](https://robinhood.com/stocks/AAL)__, __[Delta](https://robinhood.com/stocks/DAL)__, __[Southwest](https://robinhood.com/stocks/LUV)__, and __[United](https://robinhood.com/stocks/UAL)__ control 80% of domestic flights. But headwinds are now forcing smaller airlines to merge to survive: 

- __Not enough pilots:__ A [shortage](https://airlineweekly.com/2022/03/the-u-s-pilot-shortage-may-not-peak-until-2023/) has caused costs to [soar](https://thepointsguy.com/news/pilot-shortage-pay-raise-avelo/) for smaller airlines and resulted in hundreds of canceled flights.
- __Not enough gates:__ Gates at major hubs like ATL are often reserved for the Big Four, which makes it hard for smaller airlines to add new routes.
- __FYI:__ President Biden’s antitrust [crackdown](https://www.whitehouse.gov/briefing-room/presidential-actions/2021/07/09/executive-order-on-promoting-competition-in-the-american-economy/) is targeting airlines, and that could ground *either* merger.

Tarmac

__In sight, in mind…__ Presence is key for airlines and reminds consumers that they exist. You can’t book your LA weekend with an airline that doesn’t have gates at LAX. JetBlue and Frontier need access to more gates to expand into new markets. But they can’t buy gates — at least not directly. That’s why they’re willing to pay a premium for Spirit: it’s an *indirect* way to buy gates at major airports, a scarce resource they both need.

JetBlue outbids Frontier with a $3.6B offer for Spirit, because both airlines need gates to grow

Tiger Woods returns to the Masters — and his sponsor Nike may be losing influence

Roblox is offering this year’s highest-paid internships, with interns raking in nearly $10K/month

⛳ The Tiger Effect

__Got my (electric) driver's license last week...__ but these two won't be driving alone past your street. __[Honda](https://robinhood.com/stocks/HMC)__ and __[GM](https://robinhood.com/stocks/GM)__ are [teaming up](https://www.cnbc.com/2022/04/05/gm-and-honda-to-partner-on-affordable-electric-vehicles.html) to develop EVs for under $30K — even cheaper than GM's upcoming $30K electric Chevy. EVs at those prices are virtually unheard of, but GM and Honda want to start cranking out millions by 2027.

- __Plugged in:__ The compact SUVs will use GM’s next-gen Ultium battery tech that’s the base for its electric Hummer. GM [says](https://snacks.robinhood.com/newsletters/3W8LX1jIAswA4HFNTbvVHO/articles/vdFCNmlM6aWPfSxbASbFe/) Ultium can get up to 450 miles/charge at 40% less cost than its current batteries.
- __Partnered up:__ The collab will yield new EVs for both GM and Honda, expanding on their existing electric partnership (GM already made two EVs for Honda).

__Chev-EV...__ As policymakers and consumers lean into green tech, GM, __[VW](https://robinhood.com/stocks/VWAGY)__, and other gassy OGs are investing billions in an electric future. Even Honda, which has focused more on hybrids, is pivoting to all-electric. Two ways to gain an edge over industry leader __[Tesla](https://robinhood.com/stocks/TSLA)__: de-luxify EVs and boost battery range.

- __Price anxiety:__ EVs are still much pricier than their gas cousins. A new electric model costs $60K, on average — $15K more than new cars generally.
- __Range anxiety:__ Road trips can be sweat-inducing when you’re far from a charging station, while gas pumps populate every exit.

The EV 1% (VCG/Getty Images)

De-luxe

__Priced out = iced out…__ EV makers are still iced out by consumers, because they’ve *priced out* consumers. Despite increasing adoption, fewer than [1%](https://graphics.reuters.com/AUTOS-ELECTRIC/USA/mopanyqxwva/) of the 250M cars on US roads are electric. Most Americans aren’t ready to buy an EV yet, [citing](https://www.greencarreports.com/news/1134702_americans-dont-want-ev-yet-half-wont-pay-extra-for-electrified) price as a main concern. A recent Axios [poll](https://www.axios.com/axios-momentive-poll-young-people-are-the-biggest-techno-optimists-90b7aaca-1aac-406e-8f37-3aa48142d620.html) found that 7 in 10 young adults would buy an EV if they could afford one. By developing lower-priced EVs at scale, GM and Honda could tap into an iced-out market. 

GM and Honda partner on sub-$30K electric cars in a push to bring EVs mainstream

__Shoot for the moon…__ Even if you miss, you’ll land among the __SpaceX__ satellites. Yesterday __[Amazon](https://robinhood.com/stocks/AMZN)__ [announced](https://www.wsj.com/articles/amazon-to-spend-billions-on-space-launches-as-spacex-ramps-up-satellite-internet-service-11649156400?mod=business_lead_pos1) the biggest rocket deal in commercial space history. The goal: bring on partners to help launch thousands of satellites that beam WiFi across the globe. 

- __The mission:__ Amazon’s Project Kuiper plans to send thousands of internet satellites into orbit in 83 rocket launches over the next five years (and will spend billions to do it).
- __The crew:__ The Zon’s tapped three rocket-makers: United Launch Alliance (run by __[Boeing](https://robinhood.com/stocks/BA)__ and defense giant __[Lockheed Martin](https://robinhood.com/stocks/LMT)__), French biz __Arianespace__, and of course Jeff Bezos’ __Blue Origin__. 
- __The countdown:__ Amazon got Uncle Sam’s permission in 2020 to launch 3K+ satellites. But there’s a catch: if half of those aren’t live by 2026, it [loses](https://www.theverge.com/2020/7/30/21348768/fcc-amazon-kuiper-satellite-constellation-approval) its license.

__There’s a new space race…__ and it’s centered on earthly WiFi, not Martian colonies. A third of the world’s population still [doesn’t](https://www.washingtonpost.com/world/2021/12/01/global-internet-usage/) have internet access. One solution: small, low-orbiting satellites that send broadband to remote locations, and do it without the latency issues that satellite internet is known for.

- __Head start:__ SpaceX-owned Starlink has already [launched](https://www.space.com/spacex-starlink-satellites.html) 2K satellites that serve 250K customers, and has approval for 10K more.
- __Crowded skies:__ But competitors like __Astra__, __OneWeb__, __Intelsat__, and Amazon have [submitted](https://www.cnbc.com/2021/11/05/space-companies-ask-fcc-to-approve-38000-broadband-satellites.html) plans to launch 38K of their own.

Hotspot

__Amazon already had the rocket fuel…__ Now it’s got the rockets. This won’t be the Zon’s first time blasting off into a new industry: the corporate behemoth has already successfully leveraged its size and scale to enter grocery, cloud computing, streaming, and healthcare. It may not have a head start with satellites, but its cash, customers, and infrastructure give it an edge in any space.

Amazon signs a huge rocket deal to bring satellite internet worldwide, sending the space race into a new orbit

There are 329 fewer billionaires than there were last year, as sanctions hit Russian oligarchs — it’s the biggest billionaire drop since ’09

🔌 Cheap EVs 

__#ICYMI…__ Twitter’s favorite CEO-lebrity is now its biggest shareholder. Two weeks ago Elon Musk [asked](https://twitter.com/elonmusk/status/1507259709224632344) his 80M followers whether Twitter was doing a good job supporting free speech: 70% of respondents said no. Yesterday an SEC filing [revealed](https://www.cnbc.com/2022/04/04/twitter-shares-soar-more-than-25percent-after-elon-musk-takes-9percent-stake-in-social-media-company.html) that the __[Tesla](https://robinhood.com/stocks/TSLA)__ and __SpaceX__ CEO had owned a big chunk of Twitter shares at the time of the poll.

- __Musk now owns__ over 9% of Twitter shares — quadruple that of cofounder Jack Dorsey. 
- __Passive activist:__ Elon’s stake is less than a 10th, and he’s technically not an “activist” investor. But it doesn’t mean he can’t influence Twitter’s price. 
- __Exhibit A:__ Twitter shares jumped nearly 30% on word of Elon’s purchase.

__Itchy Twitter finger…__ Elon has [called](https://twitter.com/elonmusk/status/1507777261654605828) Twitter a “de facto public town square,” and he’s famously loud in that square: he [tweeted](https://www.visualcapitalist.com/a-decade-of-elon-musks-tweets-visualized/) 3K+ times last year. In just the past month, he posted memes of ducks in police cars, “Lord of the Rings” quotes, and that poll about the future of free speech. But tweets have also landed the Technoking in hot water:

- __Tweet-trouble:__ The SEC accused Elon of [fraud](https://twitter.com/elonmusk/status/1026872652290379776) in connection with breaking securities laws on Twitter (think: the infamous 420 [tweet](https://twitter.com/elonmusk/status/1026872652290379776)), which resulted in $20M penalties for both Elon and Tesla.

Send tweet (Odd Andersen/AFP/Getty Images)

__Seats speak louder than tweets…__ The Tesla titan looks more interested in *influencing* Twitter than owning or profiting from it. As the world’s richest man, Elon could buy Twitter seven times over if he wanted. But since Twitter doesn’t have “supershares” that give founders voting control — unlike __[Google](https://robinhood.com/stocks/GOOGL)__, __[Meta](https://robinhood.com/stocks/META)__, and __[Snap](https://robinhood.com/stocks/SNAP)__ — some analysts are [speculating](https://fortune.com/2022/04/04/elon-musk-twitter-stake-activist-role-board-seat-wedbush/) that Elon’s relatively small stake could lead to a seat on the board. Translation: Elon may have found a way to demand change at the platform he loves to hate even more loudly than before.

Elon is now Twitter’s biggest shareholder, and the web’s “town square” could be in for an overhaul

__Don’t call it a comeback…__ Longtime __[Starbucks](https://robinhood.com/stocks/SBUX)__ CEO Howard Schultz is taking back the reins as (interim) chief exec this week — his third time in the gig — and he’s already brewing up big changes. First order of business: halting stock buybacks. (Flashback: former CEO Kevin Johnson [pledged](https://www.bloomberg.com/news/articles/2021-10-28/starbucks-pledges-20-billion-in-payouts-as-sales-miss-estimates) $20B in new buybacks and dividends as recently as in October.) Starbucks posted [record](https://www.seattletimes.com/business/starbucks-posts-record-quarterly-sales-thanks-to-us-business/#:~:text=Robust%20U.S.%20business%20takes%20Starbucks,last%20year's%20pandemic%2Dbattered%20level.) sales last year as you splurged on venti chai lattes, but the world's largest coffee biz has been struggling with rising supply costs and overwhelmed, unhappy baristas: 

- __Starbucks’ flagship Reserve Roastery__ in NYC just became the ninth location to unionize. Another 140 stores have filed for union recognition. 
- __Starbucks has spent $1B__ over the past two years to boost employee wages and incentives — including a new starting wage of $17/hour — but some workers say it isn’t enough.

__A new era for unions…__ Starbucks isn't the only biz in the middle of a rising labor movement. Last week __[Amazon](https://robinhood.com/stocks/AMZN)__ lost a historic fight after NYC warehouse workers voted to form the company's first US union. A tight labor market has spurred demand for higher wages and stronger benefits, and brought union popularity to its [highest](https://snacks.robinhood.com/newsletters/7CtuLmgMuoMjI0OwUeBMCf/) level since 1965. And it’s even gaining momentum in the famously union-averse food biz.

Steam

__There are three big ways to spend your spoils…__ when you’re a profitable public company: (1) give it back to shareholders through dividends and buybacks, (2) reinvest in the biz (think: acquisitions and salary hikes), or (3) pay down debt. Starbucks is moving away from an investor-first mentality to one more focused on workers — a sign the company sees the resurging labor movement as more than a passing trend. But it’s a risky time to pivot from a tried-and-true formula that makes investors happy: Starbucks shares are [down](https://www.cnbc.com/2022/04/04/why-starbucks-shareholders-are-taking-the-buyback-suspension-so-hard.html) 20%+ so far this year.

Schultz returns to Starbucks, suspending share buybacks in a pivot to focus on restless employees

Elon is Twitter’s biggest shareholder, and he might ruffle some feathers on its board

White-collar workers are spending 250% more time in meetings than they were pre-pandemic

🐦 Elon goes shopping

__Taxes 101…__ a class we wish we'd taken. The pandemic + soaring prices have stressed American wallets, highlighting the importance of financial literacy (think: saving, budgeting, investing). Layoffs left millions struggling to afford childcare and rent, and 1 in 10 families [had](https://www.cnbc.com/2020/09/10/1-in-10-americans-are-struggling-to-afford-enough-food-during-pandemic.html) difficulty stocking fridges. Meanwhile, stimmy payouts padded savings and sparked a surge in young retail investors. Now:

- __Money is the second-most__ [discussed](https://www.forbes.com/sites/christinecarter/2022/03/31/survey-gen-z--gen-alpha-place-high-importance-on-financial-literary-just-like-their-parents/?sh=1f9f1ec832b5) topic for parents and teens (after Covid) as high food and gas prices eat into family budgets.
- __93% of teens believe__ financial knowledge is crucial to achieving their life goals, yet [most](https://www.financialeducatorscouncil.org/national-financial-literacy-test/) 15-to-18-year-olds fail basic fin lit tests.
- __The financial literacy deficit__ [cost](https://www.prnewswire.com/news-releases/survey-results-shortfalls-in-financial-literacy-cost-americans-352-billion-in-2021-301458429.html) Americans $350B last year (think: overdraft fees, high-interest loans).

__Whiteboards & wallets...__ High school often marks a transition from summers scooping ice cream to financial independence — but [more](https://jaheartland.org/new-research-shows-majority-of-teens-feel-unprepared-to-finance-their-futures/#:~:text=(Moline%2C%20IL)%20%E2%80%93%20After,from%20Junior%20Achievement%20and%20Citizens.) than half of teens feel unprepared. For college students, poor money management skills can lead to maxed-out credit cards, late bills, and dropped degrees. Now lawmakers are stepping in:

- __Last year:__ Half of states proposed bills requiring personal finance courses in high school — a trend accelerated by Covid and [record](https://www.cnbc.com/2021/09/09/america-has-1point73-trillion-in-student-debtborrowers-from-these-states-owe-the-most.html) student loan debt.
- __Last month:__ Florida [became](https://www.cnbc.com/2022/03/23/florida-becomes-largest-state-to-mandate-personal-finance-education-.html) the largest state to mandate that all high school students   take a personal finance class to graduate. 
- __This year:__ A record 25% of US high schoolers are expected to take a personal finance course before graduation, up from 20% last school year.

Making cents of the fin lit problem (J Studios via Getty Images)

FinLit

__Financial literacy is an investment…__ in future stability. Early money management skills [can](https://papers.carlyurban.com/TeacherSurvey_brief.pdf)  lead to better credit scores, lower debts, and higher savings down the road. Some experts even say parents should start teaching kids about money as [early](https://www.cnbc.com/select/teaching-children-about-credit/#:~:text=Behavioral%20researchers%20from%20Cambridge%20University,at%20every%20stage%20of%20childhood.) as preschool. But financial literacy is more [likely](https://www.nytimes.com/2021/04/02/your-money/financial-literacy-courses.html) to be taught in wealthier districts. Equitable financial education could empower the next generation  and help bridge America's wealth gap.

The pandemic exposed America’s financial literacy gap — now lawmakers want $$ management to start in the classroom

__Ameri-canna milestone...__ On Friday, the House [passed](https://www.cnbc.com/2022/04/01/house-to-vote-on-bill-to-legalize-marijuana.html) legislation that would legalize marijuana nationwide and scrap criminal penalties for pot-related activities (feat. an 8% tax on cannabis sales). While recreational weed is legal in 18 states, marijuana is still an illegal Schedule I drug at the federal level (along with LSD and heroin). Now the bill heads to the Senate, where it [faces](https://www.newsweek.com/marijuana-decriminalization-bill-passes-house-heads-senate-1694288) an uphill battle. Big pot companies need federal legalization to grow, but they weren't feeling the buzz: shares of __[Tilray](https://robinhood.com/stocks/TLRY)__, __[Aurora](https://robinhood.com/stocks/ACB)__, and __[Canopy Growth](https://robinhood.com/stocks/CGC)__ all dipped.

__Workers have union dues...__ America's second-largest employer has union blues. __[Amazon](https://robinhood.com/stocks/AMZN)__ workers at a NYC warehouse [voted](https://www.wsj.com/articles/amazon-workers-in-new-york-vote-to-form-tech-giants-first-u-s-union-11648831151) to unionize on Friday, establishing Amazon's first US union. Last year, Amazon [won](https://snacks.robinhood.com/newsletters/7CtuLmgMuoMjI0OwUeBMCf/articles/33FGeI4OGeSbCzNjbOSQr8/) a labor battle when Alabama workers voted *not* to unionize. Amazon has fought against unionization (think: "Vote No" bathroom [flyers](https://www.cnbc.com/2022/04/01/amazon-workers-in-staten-island-vote-to-unionize.html)) and wants the power to quickly hire/fire workers and set hours/wages. But Amazon has been heavily criticized for its treatment of workers. It’s a landmark victory for organized labor that could threaten the Zon’s supremacy.

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Stories we’re watching...

__Skinny jean nostalgia...__ in a mom jean era. Wall Street's blue-jean baby __[Levi Strauss](https://robinhood.com/stocks/LEVI)__ unzips earnings on Wednesday. Levi's most recent earnings were a solid improvement from 2020, when WFH sweats replaced denim. Last year, Levi's sales were up 29% while profit 6X'd as it focused on high-margin direct sales (think: Levi's site vs. [Nordstrom's](https://robinhood.com/stocks/JWN)). While the leggings life is still thriving ([see](https://www.marketwatch.com/story/lululemon-stock-jumps-after-reporting-6-billion-in-annual-sales-for-the-first-time-forecasting-more-growth-11648585687): __[Lulu](https://robinhood.com/stocks/LULU)__ earnings), Levi's is tapping into the soft-pant trend with looser, stretchy fits. We'll see if Gen Z’s love of high-waisted baggy jeans helped Levi's growth.

__Inflation in aisle 5…__ Pantry powerhouses like __[Kraft](https://robinhood.com/stocks/KHC)__ and __[Kellogg](https://robinhood.com/stocks/K)__ have hiked prices as costs surge. Now shoppers are snagging what they can afford, even if it means [ditching](https://www.wsj.com/articles/why-the-american-consumer-is-switching-brands-more-than-ever-11648555251?mod=hp_lista_pos1) name brands for cheaper private labels. According to a mid-pandemic [survey](https://www.daymon.com/wp-content/uploads/2020/08/Daymon-PB-Intelligence-Report-2020.pdf), 70% of US shoppers said they’d tried new brands during Covid. It’s a worrying sign for household names that depend on consumer loyalty. We’ll get a peek at how some are doing this week when __[Conagra](https://robinhood.com/stocks/CAG)__ (Banquet pizza, Reddi-Wip), __[Simply Good](https://robinhood.com/stocks/SMPL)__ (Quest Bars), and __[Constellation](https://robinhood.com/stocks/STZ)__ (Corona, Modelo) all report.

Events

Coming up this week...

- __[Tap](https://snacks.robinhood.com/newsletters/3RR5q8SXnbN0gmtGDTckMU/):__ President Biden will release a record 180M barrels from the strategic petroleum reserve over the next six months in a push to pump the brakes on soaring gas prices – but relief may be capped.
- __[W-2](https://snacks.robinhood.com/newsletters/5c1ov5mPyllDBQuH9iy5S5/):__ The FTC sued __[Intuit](https://robinhood.com/stocks/INTU)__, the financial software powerhouse behind TurboTax, claiming TurboTax’s “free” filing ads are “deceptive.” The FTC says most US taxpayers didn’t qualify for its free offering last tax year.
- __[Gold](https://snacks.robinhood.com/newsletters/2Bc4NhkgCxLnebOfphcUTk/):__ __[Apple](https://robinhood.com/stocks/AAPL)__ became the first streamer to win Best Picture at the Oscars with its indie drama “CODA.” Since 2019, Apple TV+ has taken on __[Netflix](https://robinhood.com/stocks/NFLX)__ with a less-is-more strategy of highly-curated premium content.

ICYMI

Last week's highlights...

Lawmakers push money education in schools to fix the financial literacy gap

Fewer than half of Americans have enough savings to cover a $1K surprise expense

💸 The future of financial literacy

__Let it flow…__ The White House is heading back to the country’s emergency oil stockpile, in a push to pump the brakes on soaring gas prices that have Americans fuming (FYI: it’s an election year). President Biden [authorized](https://apnews.com/article/russia-ukraine-biden-business-europe-3e1808077371b88ae043c86584763afd) tapping 1M barrels/day from the strategic petroleum reserve for six months (total: 180M barrels). It’s the largest release ever, and the third time the SPR has been tapped in the last six months. Refresher:

- __Sweet:__ Just like Canada keeps a strategic maple syrup reserve (#[priorities](https://www.reuters.com/lifestyle/oddly-enough/quebec-unlocks-worlds-only-maple-syrup-strategic-reserve-keep-pancake-lovers-2021-12-07)), the US [has](https://www.energy.gov/fecm/strategic-petroleum-reserve-4) four underground sites along the Gulf Coast with capacity to store 700M+ barrels of oil. 
- __Sour:__ The SPR was created in 1975, during another global oil crisis. Presidents have hit up the SPR a couple [dozen](https://www.reuters.com/markets/commodities/when-have-united-states-others-previously-released-oil-reserves-2021-11-23/) times since then, mostly after supply-disrupting events like hurricanes or war. 

__Insatiable appetite…__ The US consumes 20M barrels of oil every day. Adding 1M barrels to the daily supply could lower crude prices, which would trickle down to the pump. But it’s not a sure bet: oil prices are set on complex global futures markets, and many analysts [expect](https://www.bloomberg.com/news/articles/2022-03-31/what-a-sizable-u-s-oil-release-may-mean-for-energy-markets?sref=px9VEDa6) any dips to be temporary. When Biden last released 50M barrels from the SPR, it barely budged the price of crude. Tapping it again could bring short-term relief to consumers, which could help Dems in November.

__Oil doesn’t grow on trees…__ While Russia’s war in Ukraine is aggravating the oil crunch, oil anxiety started early in the pandemic when demand collapsed, driving down prices. US oil producers got burned and have exercised restraint ever since, pressured by investors to maintain “[capital discipline](https://www.axios.com/wall-street-oil-execs-a3cdaa1b-6839-448c-a5fb-2697b0a0c77b.html)” (read: drill less, reinvest more). Surging prices give oil companies an incentive to drill more. But drillers are still reluctant, and would take months to ramp up.

Biden is ordering the largest-ever release from the US’ oil stockpile, but Pump Anxiety relief might be limited

__Life is a highway...__ or a race track. NASCAR driver Ricky Bobby hated Formula 1 in “Talladega Nights,” but Americans are loving it. That's why F1 just [added](https://apnews.com/article/sports-las-vegas-united-states-north-america-formula-one-f37caf2fea9e83ad17efbcc7115007f8) a race in Vegas that’ll debut in November 2023.

- __Fast:__ The 3.8-mile street course will run along the Vegas Strip, passing landmarks like Caesars Palace and the Bellagio Fountain (top speed: 212 mph).
- __Furious:__ Vegas will be F1’s third race in the US — that’s [more](https://huddleup.substack.com/p/formula-1-is-headed-to-the-las-vegas-0a4?s=r) F1 races than any other country. F1's other US Grand Prix's are in Austin and Miami.
- __Too fast, too furious:__ F1′s first race in Miami this May sold out in a day. The GP in Austin last year had 400K+ fans — the most-attended race in F1's 70-year history.

__NASCAR has #StreamEnvy…__ so does IndyCar. The US has become F1's fastest-growing market, largely thanks to __[Netflix](https://robinhood.com/stocks/NFLX)__. Interest in F1 has soared since Netflix's docuseries “F1: Drive to Survive” premiered in 2019.

- __Rewind to 2016:__ __[Liberty Media](https://robinhood.com/stocks/FWONK)__, the public company that owns the Atlanta Braves and SiriusXM, bought Formula 1 for $4.4B.
- __Back then,__ F1 had 100M global viewers per race — but US interest was weak, F1 was under-monetized, and fans skewed older.
- __New strategy:__ Slick [marketing](https://motorsports.nbcsports.com/2022/03/31/f1-three-races-america-2023-las-vegas-austin-miami/) with a focus on young Americans boosted F1’s US fanbase and made it the fastest-growing major sport on social media.

Vroom

__If you wanna go big, go broad…__ F1 used to be seen as a Euro-centric luxury sport for the wealthy (think: Rolex ads, races in Monaco). But one Netflix series and a strategy shift later, F1 fans are [younger](https://uk.motor1.com/news/542371/formula1-study-fans-younger-diverse/) and more diverse (average age: 32). By focusing on US expansion, Liberty Media is accessing an economy that’s 6-7X larger than any European country. And Liberty’s Formula One Series C shares are up 60% in the past year.

Formula 1 racing is gaining major US traction thanks to Netflix, Vegas, and younger marketing

Biden taps strategic oil reserves to bring down gas prices, but relief might be capped

Turning red over gas prices (Robert Gauthier/LA Times via Getty Images)

A fifth of US workers say they’re running out of money between paychecks, up 5% from last year

🛢️ Biden taps the reserves

__Kibbles ‘n’ miss...__ __[Chewy](https://robinhood.com/stocks/CHWY)__ was a pandemic go-to for pet goodies as 1 in 5 Americans welcomed new WFH companions into their homes. The online pet-supply deliverer even turned its [first](https://www.wsj.com/articles/chewy-turns-profit-as-covid-19-boosts-online-sales-and-pet-ownership-11617139571) profit last year, after going public. But its fortunes have stalled. Chewy shares [sank](https://robinhood.com/stocks/CHWY) 16% yesterday after it unboxed a $63M quarterly [loss](https://www.barrons.com/articles/chewy-stock-price-earnings-51648589227?tesla=y) — its third in row, and nearly double [what](https://www.washingtonpost.com/business/chewy-hit-with-a-supply-and-demand-double-whammy/2022/03/30/45366ccc-b043-11ec-9dbd-0d4609d44c1c_story.html) investors were expecting. 

- __Empty digi-cart:__ Sales [jumped](https://www.barrons.com/articles/chewy-stock-price-earnings-51648589227?tesla=y) 17% from a year earlier, but Chewy expects growth to slow this year as supply setbacks create a “highly challenging operating environment.”

__The golden (retriever) era…__ Chewy makes most of its $$ through [autoship](https://www.petproductnews.com/news/autoship-purchases-contribute-to-majority-of-chewy-s-2021-net-sales/article_e8e3b618-b03e-11ec-bd72-83a928340e01.html) (think: weekly cat-litter deliveries). Over the past two years, the company has raked in 7M+ [new](https://www.fool.com/earnings/call-transcripts/2022/03/30/chewy-inc-chwy-q4-2021-earnings-call-transcript/) customers, but as the puppy-palooza fades so has Chewy’s growth. To win pet parents back:

- __Chewy Loyalty:__ Chewy will launch its first membership program next year. While the perk details are still TBD, it may help engage regular shoppers, who tend to splurge more on their fur babies.

Bone

__You can’t buy loyalty, but you can reward it…__ Chewy gained popularity — while differentiating itself from Amazon — with a relentless customer-centric approach. The company’s known for sending customers handwritten notes and even [custom pet portraits](https://www.dailypaws.com/pet-news-entertainment/pet-news/chewy-sends-customers-custom-pet-portraits) and flowers when their pets die. But not even above-and-beyond customer service is a match for persistent supply shortages. If your kitty’s favorite wet food isn't in stock, you’ll click it on __[Amazon](https://robinhood.com/stocks/AMZN)__ or grab it during your grocery run. Chewy’s planned loyalty program could keep pet parents from straying — if the perks are worth it.

Chewy shares plunge as the puppy-palooza slows and supply snags threaten to take a bite out of customer loyalty

__Took a DNA test, I'm 100%...__ compression fabric? Lizzo is famous for her serotonin-packed confidence anthems. Now the star is also a CEO: Lizzo's [launching](https://www.cnbc.com/2022/03/30/lizzo-launches-yitty-shapewear-brand-in-tie-up-with-fabletics.html) a shapewear brand called __Yitty__ (her childhood nickname) in partnership with athleisure maker __Fabletics__. It’ll be sold online and in Fabletics' 76 stores.

- __Bold:__ Yitty launches on April 12 with neon bodysuits, printed smoothing shorts, curve-hugging tanks, and other boldly colored shapewear.
- __Inclusive:__ Sizes range from XS to 6X (one size larger than Kim K's __Skims__) and prices range from $15 to $70 (many $$ cheaper than __[Lululemon](https://robinhood.com/stocks/LULU)__).
- __Comfy:__ As a teen Lizzo sported pinch-tight girdles and corsets at school. With Yitty, she’s focused on super-soft fabrics.

__XS to 6X…__ sounds like success. OG shapewear was meant to be hidden. New-school shapewear is meant to be flaunted, and on all body types. Lizzo's goal: "take the shame out of shapewear by infusing the category with fashion.” It's already happening: while shapewear sales still haven't fully rebounded from their pandemic plunge (less going out = less shaping), the formerly hush-hush category is now cool.

- __Celeb brands__ like Kim’s K’s Skims and Rihanna’s __Savage X Fenty__ have infused new life into shapewear. Skims recently doubled its valuation to $3.2B.
- __Pre-Kardashian:__ In the ’90s, Sara Blakely famously used $5K of her savings to [launch](https://www.masterclass.com/articles/sara-blakely-founder-of-spanx#sara-blakelys-education-and-early-career) __Spanx__, creating modern-day shapewear — and notching a unicorn valuation last year.

Truth hurts, and so does old-school shapewear [Chris Saucedo/Getty Images]

__Shapewear could be the next athleisure…__ because the pandemic-comfort trend is likely to stretch on (case in point: Lulu’s sales are expected to top $7.5B this year). Athleisure boomed because we wore leggings while lounging *and* grocery shopping. Shapewear could also boom as people use it both as underwear and as outerwear (bodysuit + blazer = party fit). As the post-Spanx revival gains steam, the global shapewear market is expected to hit $7B by 2030 (up from $2B in 2020).

From Lizzo to Kim K, celeb-driven brands redefine (and revive) the old-school shapewear market

Lizzo launches a shapewear brand as celebs redefine (and revive) the old-school category

Before 2012, Pizza Hut was one of the largest buyers of kale in the US — it used it to garnish the salad bar

🎵 Lizzo’s shapewear revolution

__W-2 anxiety is real…__ Tax season is here, and TurboTax is __[Intuit](https://robinhood.com/stocks/INTU)__. Intuit is the financial software powerhouse behind TurboTax, Credit Karma, and QuickBooks. Its specialty: making finances less #anxiety-inducing, with hand-holding walk-throughs and user-friendly screens. Now, Intuit has some anxiety of its own — and it’s not the April 18 filing deadline.

- __The FTC sued Intuit__ yesterday [over](https://www.barrons.com/articles/ftc-sues-intuit-turbotax-marketing-51648562540) what it’s calling TurboTax's "deceptive" marketing, with the aim of blocking TurboTax from advertising its services as “free.”
- __The consumer protection agency__ [said](https://www.wsj.com/articles/ftc-sues-intuit-over-turbotax-ads-offering-free-tax-filing-11648577189) that two-thirds of US taxpayers couldn’t qualify for TurboTax’s free offering last tax year — and many don't find out they need to pay until later in the process, after they’ve already entered info.
- __Intuit__ says “simple returns” can be filed free, and that last year 17M people filed for free on TurboTax.

__Upgrade to claim your tax break...__ While most countries [provide](https://www.vox.com/policy-and-politics/22596072/irs-turbotax-hr-block-free-file-tax-return) easy online services where taxpayers can file free of charge, free options in the US are more complicated: fill out a paper form, manually enter everything into a digital form, or file through private tax software (but only if you earn $73K or less). Intuit said it’s been focused on boosting free filers. Still:

- Tax-prep companies like TurboTax and __[H&R Block](https://robinhood.com/stocks/HRB)__ reportedly spent millions [lobbying](https://www.propublica.org/article/filing-taxes-could-be-free-simple-hr-block-intuit-lobbying-against-it) against legislation that would’ve allowed the IRS to simplify filing.

TurboTax before the modern tax season [James Keyser/Getty Images]

Angst

__Complexity is a biz opportunity…__ because consumers will pay extra to have headache-inducing (but critical) processes simplified. The US’s convoluted tax system is bad for taxpayers, but great for companies like Intuit and H&R Block — if taxes were a cakewalk, fewer people would likely need their services. (It’s a similar convo for the hard-to-navigate healthcare industry: companies like __[Teladoc](https://robinhood.com/stocks/TDOC)__, __[GoodRx](https://robinhood.com/stocks/GDRX)__, and __Zocdoc__ thrive on simplifying experiences.) This week, President Biden released a budget proposal that includes $14B for the IRS, but TBD if any of that will go toward creating a simpler filing system.

While the gov’t sues TurboTax over “deceptive” free-filing ads, the US tax system is still a headache

__Let’s BeReal…__ nobody wants to curate every moment for Instagram. That’s fueling the growth of __BeReal__, a new “unfiltered” social app that’s gaining traction with college students (1M+ downloads last month alone). How it works:

- __Whatever you’re doing at 2:30 pm…__ is what your friends see. Every day, BeReal users are prompted to take a selfie and front-facing pic at a random time. Users have two minutes to take their filter-free pics, and can’t post more.
- __The anti-Instagram:__ BeReal doesn’t allow “likes” and discourages “lurking” by making users post before seeing their friends’ pics. Instead of sushi in Tulum, you get Cheeto hands in bed. 

__Not the first Facebook alternative…__ Lots of upstarts have challenged __[Meta’s](https://robinhood.com/stocks/META)__ social supremacy with features like photo tagging, stories, and live audio. FB kept its crown by buying them (__Insta__), copying them (__[Snap](https://robinhood.com/stocks/SNAP)/TikTok__), or watching ’em fade (__Clubhouse__). But now FB faces a more fundamental challenge: growing skepticism of its engagement-driven algorithms. 

- __Algo-anxiety:__ A WSJ investigation last year [revealed](https://www.wsj.com/articles/facebook-knows-instagram-is-toxic-for-teen-girls-company-documents-show-11631620739) that FB knew Insta’s algorithm was linked to depression, anxiety, and eating disorders in teens.
- __Shrinking base:__ FB’s total users [declined](https://www.vox.com/recode/2022/2/2/22915110/facebook-meta-user-growth-decline-first-time-metaverse-mark-zuckerberg-tiktok-competition-earnings) last quarter for the first time, and the number of young adults on FB has been [falling](https://www.bloomberg.com/news/articles/2021-10-25/facebook-files-show-growth-struggles-as-young-users-in-u-s-decline#:~:text=The%20number%20of%20young%20adults,ago%2C%20and%20sending%20fewer%20messages) since 2019.
- __Reversing course:__ This month, Insta [launched](https://techcrunch.com/2022/03/23/instagram-launches-chronological-and-favorites-feeds-for-all-users-but-they-cant-be-the-default/) a chronological feed, a rare step back from algo-fueled ordering — though it can’t be set as default. __[Twitter](https://robinhood.com/stocks/TWTR)__ recently [made](https://www.theverge.com/2022/3/14/22977782/twitter-default-home-algorithmic-timeline-feed-reverse-chronological) a similar move.

Unfiltered

__It’s easy to rip off a new feature…__ but it’s harder to overhaul an entire biz model. Even if BeReal is just a fad, it points to an existential problem for the social-media incumbents: younger users are gravitating toward platforms with *fewer* features focused on their friends. But for social giants that rely on algorithm-powered ad revenue, fewer features may mean fewer advertisers.

An anti-Insta social app is sweeping college campuses — and highlighting a problem for Facebook

The FTC sues TurboTax over its “free”-filing ads, and the US tax system is still a headache

Chris Rock’s comedy-tour ticket sales have surged, with minimum prices up nearly 8X from before the Oscars

🗄️ TurboTax’s “free”-filing lawsuit

__ICYMI...__ Sunday's Oscars ceremony has been garnering more attention for a [shocking](https://www.nytimes.com/2022/03/28/movies/oscars-will-smith-slap-reactions.html) moment than for actual awards, but there were a few big milestones — including one for streaming: __[Apple](https://robinhood.com/stocks/AAPL)__ became the first streamer to win the Best Picture award with its indie family drama, “CODA.” __[Netflix’s](https://robinhood.com/stocks/NFLX)__ “Power of the Dog” was favored to win with [12](https://www.latimes.com/entertainment-arts/movies/story/2022-03-27/oscars-2022-best-picture-coda-the-power-of-the-dog#:~:text=Despite%20entering%20the%20Oscar%20race,knew%20it%20couldn't%20lose.) noms, but scored only for Best Director (#woof). 

__Award-winning > bingeworthy…__ When Apple TV+ launched in 2019, Netflix already had 160M+ subscribers and hit series like “Stranger Things'' and “The Crown.” To stand out, Apple kept its content library small, focusing on premium shows and movies with A-list actors (like: "The Morning Show" with Jen Aniston). That prestige-forward strategy is racking up awards: before “CODA,” “Ted Lasso” gave Apple bragging rights as the first streamer to [win](https://snacks.robinhood.com/newsletters/3Bs2pOGJvHdNI3cCRY71xs/articles/5bwoHkM8kEclR8HxJMVAmh/) Best Comedy at the Emmys. 

- __Deep pockets:__ With its billions in hardware profits, Apple splurged $25M on distribution rights for “CODA,” when the flick cost just $10M to produce.
- __Lock box:__ Apple hasn’t yet broken out its number of streaming subscribers, but estimates put subs around 40M — a fraction of Netflix and Disney+.

Tim Cook intro’ing Apple’s streamer three years ago this week [Noah Berger/AFP via Getty Images]

Gold

__Apple’s playing the long game…__ and despite its late start, it’s beginning to score. While the Flix has spent a decade churning out everything from reality shows to action movies, Apple’s taken a more curated approach so that its content *feels* as high-quality as its hardware. With Apple’s strategy paying off in golden statues, the halo effect could lure big talent (and eyeballs) that help grow its “services” biz, which now [accounts](https://s2.q4cdn.com/470004039/files/doc_financials/2022/q1/_10-Q-Q1-2022-(As-Filed).pdf) for more than a tenth of revenue. 

Apple beats Netflix as the first streamer to nab Best Picture — as its curated content strategy starts to pay off 

__American dads are cheering…__ New Balance is [proud](https://www.thedad.com/new-balance-pays-homage-to-the-original-dad-shoe/) to be the sneaker brand “worn by supermodels in London and dads in Ohio.” Now those cushy kicks are coming closer to home. Last week, Wall Street icon Larry Fink [said](https://snacks.robinhood.com/newsletters/5DjHBJsc7oUsCSdRVpJd6X/articles/3IjeIH6NCTZhHChacMHVLa/) that the war in Ukraine could cause US companies to “deglobalize” and shift production stateside. Right on cue: yesterday New Balance [opened](https://www.cnbc.com/2022/03/28/new-balance-bulks-up-manufacturing-presence-in-us-amid-supply-chain-backlogs.html) a new factory in its home state of Massachusetts. 

- __New jobs in New England:__ New Balance is aiming to have 200 workers at the space by year’s end to help produce an extra 750K pairs of sneakers/year. 
- __Old jobs in New England:__ NB already had four factories in the Northeast, and it has long advertised its line of “New Balance Made” sneakers that are at least 70% US-manufactured. In total, it will now employ about 1K workers in the US.

__“Made in America” was a marketing classic…__ When US manufacturing powerhouses like __[GE](https://robinhood.com/stocks/GE)__ [moved](https://qz.com/32575/ge-a-pioneer-of-outsourcing-is-bringing-american-manufacturing-back-to-life/) production offshore in the ’70s to lower costs, businesses learned that consumers cared more about low prices than USA labels. That’s why __[Nike](https://robinhood.com/stocks/NKE)__ makes most of its shoes in Vietnam, where workers [earn](https://www.cnet.com/tech/tech-industry/made-in-the-usa-brands-fight-for-your-attention-online/) 13X less than in the US. 

- __But the overseas calculus has been shifting__ as shortages plague supply chains and foreign shipping costs eat into profit. 
- __NB boosted production at US factories__ during the pandemic to reduce overseas reliance, and its sales actually grew faster than Nike’s last year (as supply issues hurt Nike’s inventory).

Kicks

__There’s a New Balance of power in global manufacturing…__ And companies may “onshore” production for the same reason they offshored it: to cut costs. It used to be cheaper for US companies to manufacture products in China and ship them home, but that process got pricier recently as Chinese wages rose and trade disagreements multiplied. Now that shipping costs have soared — first from Covid, then from war — the most cost-effective choice may be manufacturing in the US.

New Balance doubles down on “Made in America” — and it’s not just a marketing play

Apple’s prestige content strategy pays off in Oscar gold, leaving Netflix in rear view

A record 38% of US adults now have a bachelor’s degree or higher

🏆 Apple’s big Oscars win

__The smog of war…__ Russia’s war on Ukraine has roiled markets and mobilized world leaders and businesses. The West has weaponized finance to punish President Putin’s onslaught, from sweeping sanctions to [yacht seizures](https://www.bloomberg.com/news/articles/2022-03-25/sanctioned-mogul-s-yacht-heads-home-to-russia-as-others-go-dark). The US stopped buying Russian oil, and major companies like __[McDonald’s](https://robinhood.com/stocks/MCD)__ and __[Coke](https://robinhood.com/stocks/KO)__ [halted](https://snacks.robinhood.com/newsletters/5vfIOlOV4U5lL9HBIaeiOu/articles/xduVS4tKoldDPPu0KAPLB/) business there. Meanwhile, the EU is [scrambling](https://snacks.robinhood.com/newsletters/46hG8qxlWDaXYY96ecECBB/) to phase out Russian energy by 2027. Reduced supply from Russia has caused prices of oil, gas, wheat, nickel, and other key commodities to skyrocket. Oil fuels the global economy, from manufacturing to farming to shipping. High energy prices will likely slow economic growth — and [could even trigger](https://finance.yahoo.com/news/oil-prices-surging-to-200-a-barrel-could-send-the-economy-into-recession-goldman-sachs-104726218.html) a US recession.

__Inflation nation intensifies…__ so does pump anxiety. US inflation [reached](https://news.yahoo.com/consumer-price-index-cpi-inflation-february-2022-203614415.html#:~:text=The%20Bureau%20of%20Labor%20Statistics,expectations%2C%20according%20to%20Bloomberg%20data.) a new 40-year high last month, with consumer prices up [8%](https://www.bls.gov/news.release/pdf/cpi.pdf) from a year ago. A gallon of gas is hitting $7 in some states. After two years of near-zero interest rates, the stimulus party’s over: the Fed started raising rates this month to cool prices, though only by half of what was expected. Despite all the war-driven uncertainty, Fed Chair Powell [emphasized](https://www.cnbc.com/2022/03/21/powell-says-inflation-is-much-too-high-and-the-fed-will-take-necessary-steps-to-address.html) plans for more rate hikes. Now the US is in “boomflation” — inflation paired with strong growth and a nearly recovered labor market. But in an econ nightmare scenario, we could get “stagflation”: high inflation + sluggish growth.

__The big bear(ish) market…__ Your portfolio might be feeling it. Stocks kicked off the year at records, after the market-tracking S&P 500 index gained 27% last year. Fast-forward three months: major indices are all *down* so far, and the techy Nasdaq is down 10% from its record in November. Giant tech stocks like __[Amazon](https://robinhood.com/stocks/AMZN)__ and __[Microsoft](https://robinhood.com/stocks/MSFT)__ are weighing down the whole market. As rates and inflation rise, the value of companies’ potential future growth is also falling. Cue: stock prices are being “corrected.” Meanwhile, pandemic thrivers like __[Peloton](https://robinhood.com/stocks/PTON)__, __[Netflix](https://robinhood.com/stocks/NFLX)__, and __[Pinterest](https://robinhood.com/stocks/PINS)__ have plunged as demand sags.

Three themes that defined the first quarter…

- __*$4.5B*:__ Value of __[bitcoin](https://robinhood.com/crypto/BTC)__ alleged to have been [stolen](https://www.reuters.com/technology/us-arrests-couple-allegedly-laundering-45-bln-crypto-tied-bitfinex-hack-2022-02-08/) by a “financial rapper” and her husband in the biggest cryptocurrency theft (__[Netflix’s](https://robinhood.com/stocks/NFLX)__ next scammer show?). Cybercrime is on the [rise](https://www.cnbc.com/2022/03/15/crowdstrike-ceo-cyber-crime-up-as-hackers-use-ukraine-war-as-distraction.html), and US crypto regulation is in the works.
- __$250B:__ How much __[Meta](https://robinhood.com/stocks/META)__ [lost](https://www.npr.org/2022/02/03/1077820355/facebooks-transition-to-metaverse-has-eaten-into-the-social-media-giants-profits) in one day after reporting its first dip in daily active users. Facebook’s profit-puppy ad biz also took a hit from Apple’s privacy changes, while TikTok’s swiping up users.
- __1.4M:__ The highest [recorded](https://www.nytimes.com/interactive/2021/us/covid-cases.html) number of new US Covid cases in a single day (January 10). National cases have fallen and all statewide mask mandates have been lifted. But reported cases are still [rising](https://www.cnn.com/interactive/2020/health/coronavirus-us-maps-and-cases/) in about 10 states.
- __$3.2B:__ The value of Kim Kardashian's __Skims__ shapewear line, which [doubled](https://www.forbes.com/sites/jemimamcevoy/2022/01/28/kim-kardashian-is-600-million-richer-after-shapewear-brand-skims-hits-32-billion-valuation/?sh=527b646070d6) over the past year and was boosted by a major cash [injection](https://www.bloomberg.com/news/articles/2022-01-27/kim-kardashian-s-skim-underwear-brand-doubles-valuation-to-3-2-billion). Celeb-preneur brands like Rihanna’s __Savage X Fenty__ lingerie and makeup biz have thrived.
- __18%:__ The percentage of China’s 1.4B population [using](https://techcrunch.com/2022/01/18/chinas-digital-yuan-wallet-now-has-260-million-individual-users/) digi-yuan wallets. China is among 87 countries [creating](https://snacks.robinhood.com/newsletters/L0CnaMn2nWxngpbxPI1pp/) state-controlled digital currencies, though it currently [bans](https://fortune.com/2022/01/04/crypto-banned-china-other-countries/#:~:text=First%20the%20country%20prohibited%20financial,outlawed%20cryptocurrencies%20outright%20in%20September.) unregulated coins like bitcoin.
- __$65M:__ How much Ukraine has [raised](https://www.reuters.com/technology/ukraine-launches-nft-museum-war-crypto-crowdfunding-push-2022-03-25/) in crypto donations so far. It was one of many unconventional ways, along with no-show __[Airbnbs](https://robinhood.com/stocks/ABNB)__ and __[Etsy](https://robinhood.com/stocks/ETSY)__ donations, that people supported global efforts.

Six notable numbers…

__The IPO-palooza is over…__ IPOs [slowed](https://snacks.robinhood.com/newsletters/4aLWhBIUyY9kMIymWGLnlX/) to a trickle this quarter: there was a 25-day span without a *single one*. That's a stark contrast to last year, when 1K+ companies raised a record $268B. Part of the reason private giants like __Stripe__ are holding off: 70% of last year’s IPOs ended the year trading [below](https://www.wsj.com/articles/ipos-had-a-record-2021-now-they-are-selling-off-like-crazy-11640773806) their offering prices. Even __[Rivian](https://robinhood.com/stocks/RIVN)__, the first-to-market EV-truck maker with last year’s biggest debut, has slipped 50% since IPO’ing. __Instacart__ and others have canceled planned IPOs, and the rest of the year’s expected to stay slow.

__Ready Player (Every) One…__ US consumers [spent](https://www.tvtechnology.com/news/us-consumers-spent-a-record-dollar32b-on-home-entertainment-in-2021#:~:text=Spending%20on%20subscription%20streaming%20rose,year%202021%20to%20%2429.3%20billion.) $60B on video games last year — twice as much as they spent on streaming movies and TV. Gaming deals hit a new high score this quarter: “GTA” maker __[Take-Two](https://robinhood.com/stocks/TTWO)__ revealed [plans](https://snacks.robinhood.com/newsletters/ttIvZRE8iPSUMYKDtpCyi/articles/7J1KPl6IrvYfOGG3GCcWHr/) to buy Farmville maker __[Zynga](https://robinhood.com/stocks/ZNGA)__ for $12.7B in the biggest gaming deal of all time — until __[Microsoft](https://robinhood.com/stocks/MSFT)__ beat that a week later with a $70B [bid](https://snacks.robinhood.com/newsletters/4eOJialeY3vTs2AHV0FkZt/) to buy “Call of Duty” maker __[Activision](https://robinhood.com/stocks/ATVI)__. Now gaming’s entering a new phase: the metaverse. Tech giants __[Meta](https://robinhood.com/stocks/META)__ and __[Nvidia](https://robinhood.com/stocks/NVDA)__ are spending billions building metaverses, and gaming platforms like __[Roblox](https://robinhood.com/stocks/RBLX)__ could be crucial to snagging early meta-users.

__Moderation mayhem…__ Tech has been in the moderation hot seat, from the usual suspects (Meta, __[Twitter](https://robinhood.com/stocks/TWTR)__) to __[Spotify](https://robinhood.com/stocks/SPOT)__ and __TikTok__. Joe Rogan created a [Spotifiasco](https://snacks.robinhood.com/newsletters/2FtGMggXCA4QwI5ITOUoAX/) when medical experts and Neil Young [called out](https://www.rollingstone.com/culture/culture-news/covid-misinformation-joe-rogan-spotify-petition-1282240/) Covid misinfo on his Spotify-exclusive pod. Rogan’s history of using racial slurs also surfaced. Spotify stood by Earth’s biggest podcaster, but made its moderation policies public for the first time. Others like TikTok and Twitter have had to deal with [multiplying](https://www.nbcnews.com/tech/tech-news/war-ukraine-sparks-new-wave-misinformation-rcna17779) misinfo about Russia’s war in Ukraine. And Meta [allowed](https://www.reuters.com/world/europe/exclusive-facebook-instagram-temporarily-allow-calls-violence-against-russians-2022-03-10/) users to call for violence against Russian invaders.

Zoom In

Three trends that surfaced...

The biggest themes that defined the first quarter, from war to inflation to the metaverse

Remind me what year it is? [Massimo Ravera/Getty Images]

Sci-fi author Neal Stephenson coined “metaverse” in his 1992 best-seller “Snow Crash,” in which people use virtual avatars to escape a dystopia