__Buying a cherry-red smile…__ but the outlook is more matte than glossy. Beauty titans are often shielded during economic downturns thanks to the so-called lipstick effect. In gloomy times, cash-stressed consumers can’t afford big-ticket items, so they console themselves by indulging in small luxuries (think: $38 Dior Lip Glow). 

- __$20 gloss > $200 hydrafacial:__ As the US economy shrank in the first quarter, lipstick sales jumped 48% from last year (2X as fast as other beauty products). 
- __Lip*stuck*:__ But now even cosmetics giants are [struggling](https://www.bloomberg.com/news/articles/2022-10-29/-lipstick-effect-starts-fading-for-consumer-beauty-groups?sref=q3KSFp38) to cover up ugly economic effects. 

__Losing luster…__ Last week __[Estée Lauder](https://robinhood.com/stocks/EL/)__ said its quarterly makeup sales fell 10%, and it lowered its outlook on weakening demand. Rival __L’Oréal__ reported slowing growth as its profit-puppy luxe division (think: __[Prada](https://robinhood.com/stocks/PRDSY/)__, Lancôme) underperformed. FYI: Cover Girl owner __[Coty](https://robinhood.com/stocks/COTY/)__ reports next week. But while consumers are cutting back on makeup, spending *rose* more than expected in September as Americans splurged on “experiential” indulgences. 

- __Travel go-tos__ are booming. __[Airbnb](https://robinhood.com/stocks/ABNB/)__ reported its best quarter ever last week while __[Marriott](https://robinhood.com/stocks/MAR/)__ joined __[Hilton](https://robinhood.com/stocks/HLT/)__ in lifting its annual forecast. __[Booking’s](https://robinhood.com/stocks/BKNG/)__ profit more than doubled. 
- __Chains__ including Burger King, __[Starbucks](https://robinhood.com/stocks/SBUX/)__, and KFC and Taco Bell owner __[Yum Brands](https://robinhood.com/stocks/YUM/)__ had robust sales growth as Americans opened their wallets for premium items like PSLs. 
- __Big food staples__ like __[Kellogg](https://robinhood.com/stocks/K/)__, __[Pepsi](https://robinhood.com/stocks/PEP/)__, and __[Kraft](https://robinhood.com/stocks/KHC/)__ have reported strong sales this season as consumers kept stocking Frosted Flakes and Cheetos despite price hikes. Booze big shots like Smirnoff maker __[Diageo](https://robinhood.com/stocks/DEO/)__ have also proved resilient.

Passing on the $30 lip glow (Budrul Chukrut/Getty Images)

Ungloss

__Consumers are in “bite or flight” mode…__ While the economy's in stressful fight-or-flight mode, some Americans are finding solace by indulging in brand-name treats (bites) or getaways (flights). Despite broad price hikes, a lot of consumers are still shelling out for Whoppers and Airbnb glamping weekends. We might need to kiss the lipstick effect goodbye, because the seemingly “protected” categories during this downturn appear to be experience-based.

The “lipstick effect” is fading for cosmetics giants as consumers find comfort in experiential splurges

__A whole new world…__ While streaming entertainment powered __[Disney](https://robinhood.com/stocks/DIS/)__ through the pandemic, real-life entertainment is propelling growth now. Revenue for the first nine months of the year was up 28% as US parks and resorts recovered and is expected to be up 25% for the year (Disney reports tomorrow). With Disney+, Hulu, and ESPN+, Disney surpassed __[Netflix’s](https://robinhood.com/stocks/NFLX/)__ total subs in August but lowered its 2024 forecast for Disney+ as growth slows. If the streamer hadn’t added 9M subs last quarter, as expected, investors might be bummed despite Disney's strong overall growth. 

__Insert (more) coins to continue...__ Gaming behemoths are struggling to beat their own high scores as the pandemic video-game boom slows. In the second quarter, NBA 2K maker __[Take-Two Interactive](https://robinhood.com/stocks/TTWO/)__ and tween fave __[Roblox](https://robinhood.com/stocks/RBLX/)__ fell short of quarterly earnings expectations after reporting fewer new gamers. Meanwhile, __[Microsoft’s](https://robinhood.com/stocks/MSFT/)__ $70B purchase of __[Activision](https://robinhood.com/stocks/ATVI/)__ — which makes Call of Duty — remains stalled in a lengthy regulatory review. Analysts expect earnings to keep falling when Take-Two and Roblox report this week, but revenues are forecast to rise as in-game spending stays strong.

Events

Coming up this week...

__“The future of [Twitter](https://robinhood.com/stocks/TWTR/)”…__ Every Twitter thread last week. ICYMI: Elon Musk now runs Twitter (in his [words](https://www.ft.com/content/b0b49bc2-9d6e-4e0d-8962-a0f60185947c): “the bird is freed”). Top execs have left the company and advertisers are [skittish](https://www.nytimes.com/2022/11/01/technology/elon-musk-twitter-advertisers.html). After __[GM](https://robinhood.com/stocks/GM/)__ paused Twitter campaigns, ad giant __[IPG](https://robinhood.com/stocks/IPG/)__ recommended its clients pause their spend too. Meanwhile, Elon seems focused on cutting costs and boosting *non*-ad revenue: On Friday, Twitter laid off half its employees, and over the weekend started rolling out an $8/month charge for blue check marks. There are *many* opinions about the Twitter-quisition, but only time will tell if it’ll help the embattled platform rise or [sink](https://twitter.com/elonmusk/status/1585341984679469056). 

__Giving mixed signals…__ US employers added 261K jobs in October, and there are roughly two open jobs for every unemployed worker (a sign the Fed’s hikes aren’t cooling the economy enough). But job growth slowed and unemployment ticked up to 3.7%. Microsoft, Netflix, __[Snap](https://robinhood.com/stocks/SNAP/)__, and __[Meta](https://robinhood.com/stocks/META/)__ are laying off employees, and __[Amazon](https://robinhood.com/stocks/AMZN/)__ and (reportedly) __[Apple](https://robinhood.com/stocks/AAPL/)__ have frozen corporate hiring. Last week __[Lyft](https://robinhood.com/stocks/LYFT/)__ and __Stripe__ also announced cuts. Non-tech industries may also slow: last week __[Ford](https://robinhood.com/stocks/F/)__ offered buyouts to underperformers.

Zoom Out

Stories we’re watching...

- __[#Phygital](https://snacks.robinhood.com/newsletters/1ynCBzQDGgEJsiGkLyJv9w/articles/1Xt7kCVMDfQvV1HNDwCAk8/):__ __[Ralph Lauren](https://robinhood.com/stocks/RL/)__ and Epic Games announced a Fortnite fashion collection. The collab is *both* physical and digital, living in closets and in Fortnite avatars. It could help the preppy retailer gain younger fans.
- __[BnBest](https://snacks.robinhood.com/newsletters/4AlGzt3G5mcKHojU0cyOhI/articles/6S5Z7Rvu6WBZMnP9acC1PJ/):__ Airbnb is on top of the world (and can maybe rent you a yurt there). By embracing WFH trends, the rental platform posted its best quarter as consumers seek IRL experiences in an always-online world. 
- __[Scored](https://snacks.robinhood.com/newsletters/18Ma3zsD9SAGoOFKeiDGMH/articles/6jMEWWVI423VNgMxo70CFX/):__ __[Dick’s Sporting Goods](https://robinhood.com/stocks/DKS/)__ launched a $50M venture-capital fund to invest in sports-related startups. Corporate VC is booming, with companies from __[Google](https://robinhood.com/stocks/GOOGL/)__ to __[GE](https://robinhood.com/stocks/GE/)__ to __[J&J](https://robinhood.com/stocks/JNJ/)__ building major funds.

ICYMI

Last week's highlights...

The “lipstick effect” fades for cosmetics giants as consumers find comfort in experiences

Dow Jones

S&P 500

Nasdaq

Bitcoin

The first country to give women the right to vote was New Zealand in 1893

💄 The new “lipstick effect”

__From soccer cleats to term sheets…__ __[Dick’s Sporting Goods](https://robinhood.com/stocks/DKS/)__ just joined the big leagues of a new sport: venture capital. Yesterday the retailer [launched](https://www.bloomberg.com/news/articles/2022-11-03/dick-s-sporting-goods-dks-starts-50-million-venture-capital-fund) a $50M VC fund called DSG Ventures. Dick’s plans to use the in-house fund to invest in new sports products and tech.

- __The first investment round__ includes women’s-sneaker brand __Moolah Kicks__, sports-gear marketplace __SidelineSwap__, and youth sports biz __EL1 Sports__.
- __#SportsSynergy:__ DSG Ventures plans to also offer *non*-financial support, like distribution through Dick’s stores — a win for both Dick’s *and* the startups it invests in.

__Everyone’s a (venture) capitalist…__ An old-school sporting-goods chain might seem like an unlikely source of VC funding, but corporate venture capital (aka: CVC) has a long history. Chemical giant __[DuPont](https://robinhood.com/stocks/DD/)__ became the first big CVC when it invested in fledgling automaker __[General Motors](https://robinhood.com/stocks/GM/)__ in 1917. 

- __Very big:__ Since then, titans like __[Google](https://robinhood.com/stocks/GOOGL/)__, __[Intel](https://robinhood.com/stocks/INTC/)__, __[GE](https://robinhood.com/stocks/GE/)__, and __[J&J](https://robinhood.com/stocks/JNJ/)__ have become major CVC players. In 2020, CVCs invested more than $70B — a quarter of all VC funding that year.
- __Very varied:__ Corporate VC arms exist across lots of industries, including construction (__[Caterpillar](https://robinhood.com/stocks/CAT/)__), convenience (__[7-Eleven](https://robinhood.com/stocks/SVNDY/)__), travel (__[United Airlines](https://robinhood.com/stocks/UAL/)__), and meat (__[Tyson](https://robinhood.com/stocks/TSN/)__). This year even crypto exchange __FTX__ launched a $2B VC fund.

Kayaking to the pitch meeting (Craig Warga/Getty Images)

__VC can act as discounted R&D…__ Instead of spending big to develop new products and tech, corporations can invest in smaller companies that’ve already created them. That could yield financial benefits like IPO returns and strategic wins like product partnerships. __[General Mills’](https://robinhood.com/stocks/GIS/)__ VC arm helped launch __[Beyond Meat](https://robinhood.com/stocks/BYND/)__, and Google Ventures backed __[GitLab](https://robinhood.com/stocks/GTLB/)__, Slack, __[DocuSign](https://robinhood.com/stocks/DOCU/)__, and __[Toast](https://robinhood.com/stocks/TOST/)__. Dick’s hopes to do the same with sporting goods, but it’ll be up against __[Nike](https://robinhood.com/stocks/NKE/)__, __[Adidas](https://robinhood.com/stocks/ADDYY/)__, and __[Under Armour](https://robinhood.com/stocks/UA/)__ — all of which have VC divisions.

Dick’s Sporting Goods debuts a $50M fund as the VC-fication of corporate America continues

__Decentralized pain…__ Crypto financial services firm __Galaxy Digital__ is [reportedly](https://www.bloomberg.com/news/articles/2022-11-01/novogratz-s-galaxy-digital-explores-workforce-cuts-of-about-20) considering cutting one-fifth of its staff as crypto winter's freeze sets in. Galaxy is seen as a bellwether for the industry because its business services __[bitcoin](https://robinhood.com/crypto/BTC/)__ miners and crypto traders, and it invests in blockchain projects like __[polygon](https://robinhood.com/crypto/MATIC/)__. Galaxy's not alone in its cuts:

- __Bit-axed:__ This week, crypto exchange __BitMex__ announced layoffs of up to 30%.
- __Sadder:__ Web3 studio __Dapper Labs__ said it's cutting 22% of its 600-person team.
- __DCGone:__ Crypto conglomerate (and CoinDesk parent) __DCG__ laid off 10% of staff.

__Misery loves coin-pany…__ and this party's crowded. It's not just *crypto* fintechs feeling the squeeze of record inflation and spiking interest rates. __Stripe__ announced yesterday that it'll lay off 14% of its workforce. Layoffs are often *forward*-looking — a sign that companies expect more slowing growth or falling earnings. This week the cofounder of __[Tezos](https://robinhood.com/crypto/XTZ/)__, a proof-of-stake blockchain, said crypto winter is "only going to get worse." More cost cuts could be coming. 

DeFi

__The future of finance is still tied to the present…__ Crypto companies want to revolutionize the financial system with decentralized finance (DeFi). In the meantime, those companies are still accountable to investors, boardrooms, and centralized finance (CeFi) realities. Since crypto is still viewed by many primarily as an *investment* opportunity (*not* a transactional currency), the industry has to deal with today's rising interest-rate reality that’s dampened demand.

Crypto firms like Galaxy Digital eye layoffs as DeFi dreams struggle with CeFi realities

- __🖼️ Showy…__ Instagram's got the NFT bug. The __[Meta](https://robinhood.com/stocks/META/)__-owned platform said some users can now [mint](https://www.coindesk.com/web3/2022/11/02/instagram-users-will-soon-be-able-to-mint-and-sell-nfts/) and sell NFTs. But Meta didn't launch its own blockchain — at least to start, any selfie NFTs will live on polygon. 
- __📸 Flashy…__ Hello, 401(k)rypto? A [survey](https://www.cnbc.com/2022/11/01/schwab-nearly-half-of-gen-z-and-millennials-want-crypto-in-401ks.html) of millennials and Gen Zers with 401(k)s found nearly half wish they could incorporate crypto into their retirement account. __[Fidelity](https://robinhood.com/stocks/FNF/)__ moved to include bitcoin in some 401(k)s this year. 
- __🤖 Techy…__ __[Twitter](https://robinhood.com/stocks/TWTR/)__ may be crypto's social home, but __Kraken's__ vying for real estate. A subsidiary of the crypto exchange [launched](https://www.protocol.com/bulletins/kraken-cryptowatch-social) a new platform dubbed Cryptowatch Social. Think: BTC price charts with built-in viral sharing.

Social

The Crypto Catch-Up…

Dick’s Sporting Goods debuts a $50M fund as corporate America’s VC-fication continues

Yesterday Apple was worth more than Google, Amazon, and Meta combined

💸 Corporate America’s VC-fication

__Weekend in the treehouse yurt…__ __[Airbnb](https://robinhood.com/stocks/ABNB/)__ has doubled down on quirky lodging like tiny homes, desert RVs, and castles. That focus on “experiential” stays appears to be paying off: the rental platform posted its [best](https://skift.com/2022/11/01/airbnb-posts-best-quarter-yet-on-relentless-travel-demand/) quarter ever as travel demand stays hot. 

- __Record revenue *and* profit:__ Sales spiked thanks to a record 90M guest arrivals and 100M “nights and experiences” booked. Earnings surged 46% from last year to $1.2B. 
- __Yet:__ Airbnb shares have fallen 13% since it reported Tuesday, after it issued slightly lower-than-expected guidance for this holiday quarter. 

__Zooming in from a Portuguese windmill…__ If there’s WiFi, *how would they know?* These latest numbers show that Airbnb continues to be one of the best pandemic comeback stories. Airbnb’s biz was crushed when the pandemic hit, but it quickly embraced the WFH life and revamped its platform to complement changing travel trends. It’s using the new norm of flexible work to its advantage: 

- __CEO Brian Chesky__ said that despite return-to-office requirements, 20% of Airbnb’s total nights booked remain long-term stays (think: a month or longer). 
- __Wow-worthy stays:__ Last month, Airbnb made a $10M [investment](https://www.fastcompany.com/90795952/airbnb-just-invested-10-million-in-100-absurd-buildings) to build 100 absurd accommodations, from a floating avocado abode to a giant cheese wedge.

Sea suite (Chesnot/Getty Images)

Yurt

__Real-life experiences are rarer than ever…__ In a society where socializing means chatting online and shopping means browsing the web, IRL experiences have newfound value. Chesky said: “Because the mall is now __[Amazon](https://robinhood.com/stocks/AMZN/)__, the movie theater is now __[Netflix](https://robinhood.com/stocks/NFLX/)__, people still want to get out of the house.” While consumers are cutting back in some areas, they’re still splurging on experiences. Yesterday, Kayak owner __[Booking](https://robinhood.com/stocks/BKNG/)__ reported that quarterly profit more than doubled from last year as travel bookings surged. Airbnb rival __[Vacasa](https://robinhood.com/stocks/VCSA/)__ is set to report next week.

Comeback kid Airbnb has its best quarter ever as IRL experiences become a rare commodity

__8 MVPs, 1 pop star…__ Tiger Woods’ latest venture has a [stacked](https://www.cnbc.com/2022/11/02/serena-williams-justin-timberlake-invest-in-tiger-woods-new-venture.html) roster of A-list investors. In August, Woods and fellow pro golfer Rory McIlroy launched __TMRW Sports__, a biz aimed at techifying sports entertainment. Yesterday we learned that Steph Curry, Serena Williams, F1 champ Lewis Hamilton, and Justin Timberlake are among TMRW’s newest backers. One of TMRW's first ventures is a new golf league — and it’s teeing up big buzz.

- __[Topgolf](https://robinhood.com/stocks/MODG/) for the pros:__ Starting in 2024, six teams of three PGA players will compete in 18-hole matches at a custom tech-infused arena ([think](https://twitter.com/TGL/status/1562483830933450753?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1562483830933450753%7Ctwgr%5E579878cb09c39c76bcd610454511f0c56f6059a6%7Ctwcon%5Es1_&ref_url=https%3A%2F%2Fwww.sportingnews.com%2Fus%2Fgolf%2Fnews%2Ftgl-tiger-woods-rory-mcilroy-new-golf-league-explained%2Fjgniybbnu6yzndakyxlmlbay): a stadium-size golf simulator).
- __FYI:__ Last year golf-related sales boomed thanks to the sport’s socially distant popularity, with brands like Callaway and Titleist notching record earnings.

__Not your dad’s golf channel…__ Golf is gaining entertainment value as big players drive innovation. TMRW’s launch comes as the new Saudi-backed LIV Golf tour [lures](https://snacks.robinhood.com/newsletters/2n1tfbP2sL0dLHd6d2tSbw/) PGA players and fans with bigger prizes, looser schedules, and flashy festival-style tournaments. Meanwhile, Callaway-owned Topgolf's party-style atmosphere and accessible simulator tech have lured Zillennials (over half of its visitors have never played golf before).

Swing

__Big players can change the game…__ because often they *are* the game. Tiger and his celeb-vestors want to use features like real-time stats and indoor arenas to attract younger fans and families to the old sport. Down the road, TMRW wants to expand into sports beyond golf. Meanwhile, soccer superstar Lionel Messi recently launched his own firm to invest in sports, media, and tech. 

From Serena Williams to Steph Curry, stars are backing Tiger Woods' venture to techify sports entertainment

Airbnb has its best quarter ever as IRL experiences become a rare commodity

Google searches for realistic excuses to skip work hit 2M this year, up from 300K in 2018

🏰 Airbnb’s king-size quarter

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

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

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

Welcome to the Poloverse (Courtesy of Ralph Lauren)

Llama

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

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

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

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

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

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

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

Slick

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

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

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

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

👕 Fortnite’s fashion Poloverse

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

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

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

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

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

Checked

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

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

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

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

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

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

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

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

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

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

DEFI(NE)

Heard on the Block: “CBDC”

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

💸 JPMorgan’s rent revolution

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

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

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

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

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

Creative

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

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

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

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

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

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

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

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

🎨 AI gets (scary) creative

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

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

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

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

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

Sink

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

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

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

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

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

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

Viral

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

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

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

Bark

After plunging yesterday, Meta was worth less than Home Depot

🐻 Amazon’s bearish forecast

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

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

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

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

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

EyeP.O.

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

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

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

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

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

Crypt-ouch

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

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

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

👀 A Mobileye-opener

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

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

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

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

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

Ye-ouch

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

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

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

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

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

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

Reality

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

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

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

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

👟 Kanye’s fashion fallout

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

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

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

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

Looking down. (Kevin Frayer/Getty Images)

Party

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

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

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

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

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

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

Cozy

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

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

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

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