__Bring on the [Netflix](https://robinhood.com/stocks/NFLX) drama...__ On Tuesday the Justice Department said it had seized $3.6B in __[bitcoin](https://robinhood.com/crypto/BTC)__ stolen in the 2016 hack of digital-currency exchange __Bitfinex__. The department said it had managed to recoup 80% — worth $71M at the time, but now worth *$4.5B* — in its largest financial seizure *ever*. That's not even the interesting part:

- __The incident:__ The DOJ arrested married couple Heather Morgan and Ilya Lichtenstein in connection with plotting to launder 119,754 bitcoins stolen from Bitfinex. (It’s unclear whether the two were also behind the hack.) 
- __The characters:__ The NYC-based 30-somethings appear to be the crypto-bro versions of Bonnie and Clyde (cringe warning). Morgan is a rapper, "international economist," and "serial entrepreneur," so her Forbes contributor [page](https://www.forbes.com/sites/heathermorgan/?sh=14ff36167f7d) says. If you're into finance rap, you might know her by "[Versace Bedouin](https://www.youtube.com/watch?v=6Y1ujFhhADU)." Lichtenstein (nickname: "Dutch") is a self-described startup investor who’s active on Twitter.
- __The plot:__ Prosecutors say the couple used “sophisticated laundering techniques” to convert stolen bitcoin into legit-seeming cash (and gold… and __[Walmart](https://robinhood.com/stocks/WMT)__ gift cards). But they were able to launder only a fraction of the coins before the DOJ stepped in.
- __The denouement:__ The couple could face up to 25 years in prison. The DOJ says it’s working on ways to return the snatched crypto.

__Digi-thug life…__ Crypto crimes are on the rise, and regulators are watching. Scammers took home a record [$14B](https://www.cnbc.com/2022/02/08/feds-seize-3point6-billion-stolen-from-bitfinex-hack.html) in crypto last year, while the DOJ [set up](https://www.justice.gov/opa/pr/deputy-attorney-general-lisa-o-monaco-announces-national-cryptocurrency-enforcement-team) a special enforcement team to target crypto crimes. In June, US officials [recovered](https://snacks.robinhood.com/newsletters/1OGX2SxRlMqhAffcNdq8SN/articles/3bGR8UcE6cLGCm5DBw9eR/) $2.3M in bitcoin paid as ransom. 

[OLIVIER DOULIERY / Getty Images]

Versace

__The crypto crackdown could be good for bitcoin…__ Crypto has a bad rap for its role in scams and other crimes. But the DOJ is starting to back up its claim that crypto isn’t a criminal “safe haven.” The Bitfinex fail shows how difficult it can be to launder bitcoin undetected. While BTC is often used by criminals because of its hard-to-trace nature, it’s less anonymous than cash because the blockchain logs a permanent public record of all transactions. 

The DOJ arrests a quirky couple after seizing $3.6B in stolen bitcoin, as regulators crack down on crypto crimes

__And the Oscar goes to…__ your couch. __[Netflix](https://robinhood.com/stocks/NFLX)__ stole the show on Tuesday at the Academy Award nominations. The Flix secured 27 noms — nearly [half](https://www.barrons.com/articles/netflix-nflx-academy-award-nominations-51644337763) went to its drama “Power of the Dog,” including a coveted best-picture nom. Netflix’s star-studded "Don't Look Up" (feat. Leo DiCaprio and Meryl Streep) got four nods. HBO Max’s “Dune” and “King Richard” earned a combined 16.

- __Other streamers with gold recognition:__ __[Apple](https://robinhood.com/stocks/AAPL)__ received a record six Oscar noms, including best picture for “CODA.” __[Amazon](https://robinhood.com/stocks/AMZN)__ scored six and __Hulu__ one (womp).
- __Half__ of this year's best-picture-nominated films were from streaming companies, but no streamer has ever won the top award. 

__Power of the popcorn…__ The Oscars are Hollywood's highest honor, but award-show viewership has fallen as people tire of seeing blockbuster faves snubbed (like: “Spider-Man” and “No Time to Die”). Plus, nearly half of pre-pandemic moviegoers have yet to return to the big screen, and almost 10% say they [never](https://www.nytimes.com/2021/11/29/business/movie-theater-attendance.html) will. So traditional studios have started testing popcorn-popping from the couch with the “hybrid model.”

- Last year __WarnerMedia__ released all its movies on HBO Max at the same time they hit theaters, and __[Disney](https://robinhood.com/stocks/DIS)__ did hybrid Disney+ releases for a few of its blockbusters. 
- This year Warner's "Dune" — which dropped in theaters and on HBO Max — pulled in [$400M](https://abcnews.go.com/Entertainment/wireStory/dune-power-dog-poised-oscar-nomination-hauls-82736807) at the global box office (and got 10 Oscar nods).

Looking up at “Don’t Look Up” [andresr/E+ via Getty Images]

DiCaprio

__Studios are becoming streamers...__ and streamers are becoming studios. OG streamers face fresh competition from OG studios, which are focusing on streaming now too. Think: __Universal's__ Peacock, Warner's HBO Max, and __[Viacom's](https://robinhood.com/stocks/VIAC)__ Paramount+. Meanwhile, streamers are splurging on Oscar-worthy content to become studios: last year Netflix spent $17B on original content and bought iconic theaters in LA to premiere its flicks. That’s helped streamers rack up the Hollywood-level recognition that used to be dominated by big studios. 

Netflix leads Oscar noms (again), while OG Hollywood studios embrace streaming to level the playing field

DOJ makes arrests after seizing $3.6B in bitcoin, as the crypto-crime crackdown intensifies

Dow Jones

S&P 500

Nasdaq

Bitcoin

A record 31.5M Americans are expected to bet on this year’s Super Bowl — up 35% from last year

💰 The big bitcoin bust

__Just keep spinning...__ The __[Peloton](https://robinhood.com/stocks/PTON)__ saga is building more drama than Nemo's shark [encounter](https://www.youtube.com/watch?v=0Hkn-LSh7es). The latest: Peloton cofounder John Foley is [stepping down](https://www.wsj.com/articles/peloton-ceo-john-foley-to-step-down-become-executive-chair-11644314403) as CEO as the former pandemic darling struggles with sagging demand for its connected fitness equipment. Peloton will also cut 2.8K jobs — a fifth of its corporate roles — to narrow losses. The severance package for those employees [includes](https://www.businessinsider.com/peloton-giving-2800-fired-employees-free-1-year-subscription-2022-2)… a one-year Peloton membership (facepalm).

- __New guy:__ Subscription star Barry McCarthy, former CFO of __[Netflix](https://robinhood.com/stocks/NFLX)__ and __[Spotify](https://robinhood.com/stocks/SPOT)__, is taking over as chief exec. Foley's becoming exec chairman.
- __New plan:__ Slash $800M in yearly costs. Last month, Peloton was reported to be [pausing](https://snacks.robinhood.com/newsletters/2aaB9GnrWgVHhjJd7bFJu/articles/1cvFtVr0b2fj1m1iC9AgUW/) bike and treadmill production. It’s now winding down plans for its new Ohio factory.
- __Key quote__ from its new CEO: *"Where the company got over its skis is it built out a cost structure as if Covid was the new normal.”* Read: way overestimated demand.

__Peloton Prime...__ a perk that could warrant __[Amazon's](https://robinhood.com/stocks/AMZN)__ coming price hike. Rumors are [swirling](https://www.cnbc.com/2022/02/07/peloton-shares-up-on-takeover-talks-heres-why-a-deal-might-not-work.html) that Amazon and __[Nike](https://robinhood.com/stocks/NKE)__ are interested in buying Peloton, whose shares have plunged 80% from their 2020 peak. One analyst said __[Apple](https://robinhood.com/stocks/AAPL)__ is “aggressively involved” too. Peloton shares have soared 56% this week on reports of big suitors. Last month, activist investor __Blackwells Capital__ dropped a [65-page deck](https://www.blackwellscap.com/wp-content/uploads/2022/02/BW_Peloton_Presentation_Feb072022.pdf?campaign_id=4&emc=edit_dk_20220208&instance_id=52488&nl=dealbook&regi_id=83712167&segment_id=81988&te=1&user_id=05114d149fce45660cf01aea64f5af7e) calling for Peloton to fire Foley and sell itself. According to Blackwells:

- __Peloton is an attractive biz__ thanks to its 2.7M loyal subscribers, but its performance has suffered because of mismanagement. 
- __Peloton should "immediately" be put up for sale.__ Other viable acquirers could be: Amazon, Nike, Netflix, __[Disney](https://robinhood.com/stocks/DIS)__, or __[Google](https://robinhood.com/stocks/GOOGL)__.

Watching Peloton on Netflix, or Netflix on Peloton? [pixdeluxe/E+ via Getty Images]

PeloFlix

__A spin-quisition may be premature…__ While a Netflix-Peloton integration is fun to imagine, a few factors indicate Peloton might *not* sell itself yet. The shiny new CEO and the cost-slashing plan suggest Peloton wants to revive itself solo. No sales talks with suitors have been reported, and Foley and other PTON insiders would likely need to approve any deal (because: voting power). Meanwhile, regulatory scrutiny of Big Tech deals is mounting. Amazon’s __MGM__ deal, announced in May, still hasn’t been OK’d. 

Amazon or Nike might want to take Peloton for a spin, as the fit-tech company changes CEO and cuts jobs

__Pressure in the pipeline…__ and on the border. Quick international-relations refresher: In late January, Russia stationed 100K troops near its border with Ukraine, fueling fears of an invasion. Russian President Putin says his country won’t invade, but the US and Germany have already been debating trade restrictions (aka: sanctions) on Russia for weeks. The goal: prevent invasion. On Monday: 

- __President Biden__ met with Germany’s new chancellor, Olaf Scholz, and vowed that Nord Stream 2 — a pipeline that carries gas from Russia to Germany — would be shut down if Russia invaded. Oil exports make up 30% of Russia’s economy, so it would take a hit.
- __But Germany__ is the only country that can shut the Nord, and Scholz avoided [confirming](https://www.cnn.com/2022/02/07/politics/biden-scholz-meeting-ukraine/index.html) that he would. While Germany is a US ally, it relies on the Nord to heat 26M homes. 

__Regional pipe, global problem…__ If the US imposes economic sanctions, Russia could retaliate by shutting off all its fuel exports. Since Russia supplies more than a third of the EU’s natural gas, fuel prices across Europe could spike if Russian fuel exports run dry. And if there’s a trade war, other global industries would likely be affected too.

- __Fewer planes:__ __[Boeing](https://robinhood.com/stocks/BA)__ [says](https://www.reuters.com/business/aerospace-defense/boeing-says-us-russia-relations-weighing-business-2022-01-31/) the standoff threatens to disrupt plane production, since Russia produces titanium and other metals.
- __Pricier grains:__ Global food prices could [rise](https://www.foxbusiness.com/politics/americans-further-price-increases-russia-invades-ukraine) even more, because Russia and Ukraine produce a lot of the world’s wheat and corn.
- __Reversed gains:__ Analysts say rising oil and food prices could exacerbate inflation and slow, or even reverse, global recovery. 

[picture alliance / Getty Images]

Nord

__Pipe-plomacy is a big test for sanctions…__ Nord Stream could become the center of the largest sanction ever (if Germany comes around). But Russia has “sanction-proofed” its economy for years by stockpiling its own cash (rubles) and on-shoring production. As Russia and China [decouple](https://snacks.robinhood.com/newsletters/4Kd4lO6WFcc5HwEH5XR6SP/articles/60LT4dehwCO5TEQWhowccI/) from global markets, and digital currencies offer an alternative to USD-centered global trade, OG sanctions may prove less effective.

A lone gas pipeline could be the key to Russia-Ukraine diplomacy, but sanctions won’t be straightforward

Biden says a key gas pipeline will be shut if Russia invades Ukraine — Germany isn’t so sure 

TikTok shares your data with third-party trackers more than any other social-media app — and it’s unclear where it goes

⛽ Biden’s Russia pipeline problem

__Flight costs $80…__ but the overweight luggage costs *$180*, and we hope you packed a sandwich. Budget airlines like __[Spirit](https://robinhood.com/stocks/SAVE)__ and __[Frontier](https://robinhood.com/stocks/ULCC)__ are (in)famous for low prices, zero frills, and pricey add-ons. They rebounded from the pandemic quicker than legacy airlines because their primary customers — thrifty vacationers — returned to airports before business travelers. Now America’s two budget behemoths are tying the knot: Frontier and Spirit [agreed](https://www.cnbc.com/2022/02/07/frontier-and-spirit-to-merge-creating-5th-largest-airline-in-us.html) to a $6.6B merger, creating what would be the fifth-largest US airline: #FrontSpirit (real name TBD). Yesterday Frontier’s stock rose 3% and Spirit’s soared 17%. 

- __Big plans:__ The companies said the merger would result in more cheap flights in underserved areas, 10K new jobs by 2026, and no layoffs.
- __Bad PR:__ Yesterday morning Frontier canceled 20% of its flights because of tech issues — not a good look when you’re marketing *more* flights.

__Battling the Big Four…__ by adding one more. The Frontier-Spirit deal is the latest in a long line of airline mergers: __[American](https://robinhood.com/stocks/AAL)__, __[Delta](https://robinhood.com/stocks/DAL)__, __[United](https://robinhood.com/stocks/UAL)__, and __[Southwest](https://robinhood.com/stocks/LUV)__ were formed from 10 airlines and make up 80% of US air traffic. #FrontSpirit would command only 10% market share, but it could face a tough path forward:

- __President Biden__ wants to boost airline competitions to ensure inexpensive, transparent travel. Although the merged companies would compete with big airlines, analysts say it’ll squeeze out smaller budget airlines like __Breeze__ and __Avelo__.
- __Last year the DOJ blocked__ a partnership between American Airlines and __[JetBlue](https://robinhood.com/stocks/JBLU)__, even though it wasn’t even a merger. The last US airline merger was __[Alaska](https://robinhood.com/stocks/ALK)__ and __Virgin’s__ combination in 2016. 

[Scott Olson / Staff via Getty Images]

Baggage

__Takeoff can be tricky when regulators want you grounded…__ Frontier and Spirit insist that their merger will benefit customers by providing low-cost flights in more cities. But while the deal may have taken off without trouble during past presidencies, analysts [say](https://www.cnn.com/2022/02/07/investing/spirit-frontier-airlines-merger/index.html) Biden’s “big is bad” approach could complicate the deal. Plus, Frontier and Spirit have the industry's worst customer-satisfaction ratings, and the new airline could face competition for cost-conscious flyers from the likes of American, which is expanding its budget flights.

Frontier and Spirit agree to a $6.6B merger, but regulators and travelers may not be on board

__Honey & Berries…__ a match made in swipe heaven. Yesterday, __[Bumble](https://robinhood.com/stocks/BMBL)__ made its first-ever acquisition with quirky five-year-old French dating app __Fruitz__. ICYMI, Bumble is the popular dating app where women make the first move. Bumble’s already in some European countries, but the US and Latin America still make up more than half its users. Meanwhile, Bumble’s *other* dating app, __Badoo__, has [more](https://badoo.com/team/press/91/#:~:text=About%20Badoo,because%20happiness%20is%20better%20shared.) than 300M users worldwide. With Fruitz, Bumble is doubling down on its Euro reach. 

- __Cherry-picking:__ Users are shown profiles based on which fruit icon they pick. Each fruit = a relationship type ([think](https://apps.apple.com/ca/app/fruitz/id1196246520): watermelon for friends with benefits, cherry for long-term commitment). 
- __Choose your perks:__ Like most dating apps, Fruitz is free but offers premium paid features. For example: The “pollen” add-on shows profiles closest to you.
- __Bumble’s sales__ jumped 24% last quarter to 200M thanks to extra paid users. 

__Financial stability > ship stability…__ The pandemic has influenced younger generations to value financial stability over serious relationships. Only 1 in 10 Gen Zers says they’re “committed to being committed.” Millennials still make up the majority of app users, but in saturated markets like the US, new growth has been hard to come by. Now:

- __Last quarter__ Bumble saw its first user-growth decline since going public, as swipe madness cooled in the US. 
- __Bumble can leverage Fruitz’s ability__ to reach Gen Z where it’s seeing “rapid growth” in less saturated countries like in Belgium, France, Spain, Switzerland, and the Netherlands.

Bumble goes cherry-picking [Monty Rakusen/Image Source via Getty Images]

Cherry

__It’s not one size fits all...__ when it comes to dating. Because in order to reach your customers, you have to *know* your customer. That’s why rival __[Match](https://robinhood.com/stocks/MTCH)__ has scooped up dating sites like __Harmonica__, which caters to Middle Eastern users, and __OurTime__, which is designed for singles age 50 and older. As millennials start to age out of dating apps, Gen Z represents the next big market for paying customers. That means offering more friend-zone-friendly features (like: Bumble BFF) and incorporating interests — or funny fruit icons — over swipeable pics.

Bumble makes its first purchase — French dating app Fruitz — to win over Gen Z’ers in Europe 

Budget airlines Frontier and Spirit agree to a $6.6B merger that might not take off

Facebook lost users for the first time *ever* last quarter: daily active users dropped from 1.930B to 1.929B

✈️ Spirit x Frontier 

__Love is in the air...__ or is it the smell of chicken wings? The Super Bowl kicks off Sunday in Los Angeles (LA Rams vs. Cincinnati Bengals). While you throw patties on the grill, Snoop Dogg, Kendrick Lamar, Dr. Dre, Mary J. Blige, and Eminem will perform at halftime. We're following the money behind America's most-watched event.

__Peacock, on the clock...__ The main moneymaking players: __[Comcast's](https://robinhood.com/stocks/CMCSA)__ NBC and the NFL. This year NBC has Bowl broadcast rights, which alternate between NBC, __[Viacom's](https://robinhood.com/stocks/VIAC)__ CBS, and __[Fox](https://robinhood.com/stocks/FOX)__ (__[Disney's](https://robinhood.com/stocks/DIS)__ ABC will join the mix in 2026). CBS, Fox, and NBC each pay the NFL [$2B+](https://www.sportingnews.com/us/nfl/news/super-bowl-2022-channel-announcers/iezwioam4vbh1w4y2os23gmep#:~:text=CBS%2C%20Fox%20and%20NBC%20all,the%20league's%20new%20broadcast%20deal.) to broadcast its games under the league's new deal. NBC has a double whammy this year since it *also* has an exclusive on the Winter Olympics in Beijing.

- __Ad $$$:__ NBC has already sold out of Bowl ads, with some 30-second spots selling for a [record $7M](https://www.hollywoodreporter.com/business/business-news/nbc-sells-out-super-bowl-7m-1235086449/). Car and tech companies are among the biggest spenders, while crypto companies are expected to advertise for the first time.
- __Sponsor $$$:__ Multiyear deals with booze, tech, and sports-betting brands helped the NFL rake in a record [$1.8B](https://www.cnbc.com/2022/01/26/tech-gambling-alcohol-helped-nfl-earn-almost-2-billion-in-sponsorships.html) in sponsorship revenue for the season. Last year the NFL [allowed](https://www.nytimes.com/2021/09/15/sports/football/nfl-betting-ads.html) gambling ads from companies like __[DraftKings](https://robinhood.com/stocks/DKNG)__ and __FanDuel__ for the first time.
- __Streaming $$$:__ Live sports may be the last thing keeping cable alive, but this year's Bowl could boost subs for streaming services. Like: NBC's new Peacock or any streamer that carries NBC for $65+/month (think: YouTube TV, Hulu Plus Live).

Super Bowl-ympics vibes [Robert Deutschman/DigitalVision via Getty Images]

Kickoff

__The NFL is having a banner year — and controversy…__ Despite cord-cutting, NFL viewership has [soared](https://www.wsj.com/articles/nfl-ratings-rose-10-in-2021-season-notching-best-results-in-six-years-11642018351#:~:text=Television%20and%20digital%20ratings%20for,2015%2C%20according%20to%20Nielsen%20data.) to the highest levels since 2015. But the league is still involved in several controversies. And one is happening *now*: Former NFL coach Brian Flores is suing the NFL, alleging that the Giants gave him a “sham interview” to comply with a rule that requires the team to interview one nonwhite candidate for a head coach position. The NFL has had more than 500 head coaches, but [just 24](https://newsone.com/playlist/nfl-black-head-coaches-full-list/) have been Black.

Super Bowl LVI, from the NFL to NBC: sponsors, controversies, and big-league $$$

__“Ask app not to track”...__ Meta partly blamed __[Apple’s](https://robinhood.com/stocks/AAPL)__ iOS update — which asks users if they want to opt out of ad-tracking on apps like Insta — for slowing its quarterly sales growth and shrinking profits. Investors weren’t impressed, wiping $230B off Meta’s market cap in one day. But Amazon and __[Google](https://robinhood.com/stocks/GOOGL)__, which are less reliant on iPhone tracking and collect more data directly, just posted record quarterly sales (awk). Meanwhile, __[Snap](https://robinhood.com/stocks/SNAP)__ and __[Pinterest](https://robinhood.com/stocks/PINS)__ shares rose after both said they’re successfully adapting to the recent iOS changes. Meta expects to lose $10B this year because of tracking opt-outs.

__Bit regulated?…__ Biden reportedly plans to release an executive action demanding regulation for Bitcoin and other cryptocurrencies. Because cryptos are traded freely between countries, Biden says regulation is now a “matter of national security.” Some regulators are getting ahead: Last month, the SEC started a review process for a new bill that could define some crypto-related platforms as regulatable exchanges — but said don’t expect any *real* [reform](https://finance.yahoo.com/news/crypto-regulation-coming-just-not-this-year-se-cs-pierce-172824069.html) this year. Cryptocurrencies have plunged from their highs, yet crypto startups raised a record [$33B](https://news.yahoo.com/crypto-startups-get-record-amount-of-vc-money-may-lead-to-more-ip-os-in-2022-185523469.html#:~:text=Startups%20in%20the%20cryptocurrency%20and,crypto%20financier%20Michael%20Novogratz's%20Galaxy) in VC investments in 2021, and could see *another* record [this](https://snacks.robinhood.com/newsletters/570omRxo6laPhWSDuegykR/) year.

 Zoom Out

Stories we’re watching...

__From Cardi to Madonna...__ __Warner Music__, the third-largest US label [after](https://medium.com/giglue/top-10-major-record-labels-d776d158a463) __Universal__ and __[Sony](https://robinhood.com/stocks/SONY)__, reps some of music’s biggest stars. Warner broke sales [records](https://www.macrotrends.net/stocks/charts/WMG/warner-music-group/revenue) last quarter as you streamed “Lizzo and chill” playlists. Streaming now accounts for more than three-fourths of the US music industry’s revenue and more than half of Warner’s. But it’s not all about __[Spotify](https://robinhood.com/stocks/SPOT)__: Warner earned $235M last year on tunes for __TikTok__ dances, __[Peloton](https://robinhood.com/stocks/PTON)__ workouts, and video games. Now it’s even dabbling with [metaverse concerts](https://indianexpress.com/article/technology/crypto/warner-music-group-to-launch-concert-theme-park-in-the-sandbox-metaverse-7746149/) to drive growth. We'll see what new projects are in store when Warner reports Tuesday.

__Dry January becomes Wet February...__ just in time for __[Coke](https://robinhood.com/stocks/KO)__ and __[Pepsi](https://robinhood.com/stocks/PEP)__ to report on Thursday. While people ditched booze in January, soda giants popped open some of their first alcoholic drinks. Sales [hit](https://www.foodandwine.com/news/usa-alcohol-sales-in-2020) 20-year highs during the pandemic, powered by a boom in ready-to-drink cocktails for home-sipping. To uncork a fresh revenue stream, Coke teamed up with __[Constellation](https://robinhood.com/stocks/STZ)__ and __[Molson Coors](https://robinhood.com/stocks/TAP)__ to launch Fresca canned [cocktails](https://www.foodandwine.com/news/fresca-canned-cocktails) and Simply spiked [lemonade](https://www.cnbc.com/2022/01/25/coca-cola-and-molson-coors-to-make-spiked-lemonade-under-simply-brand.html). Meanwhile, Pepsi [partnered](https://hypebeast.com/2022/1/taco-bell-baja-blast-hard-mtn-dew-new-boozy-flavor-release-info) with Sam Adams maker __[Boston Beer](https://robinhood.com/stocks/SAM)__ and __Taco Bell__ on a boozy Baja Blast. The canned-cocktail market is expected to hit $4.5B this year and *13X* over the next decade.

Events

Coming up this week…

- __[Unfunded](https://snacks.robinhood.com/newsletters/3INSZzB1nXR0toIYHQomNM/articles/7jZFF1RA7XCEeQ9gWan5we/):__ Black Americans are more likely to start a business than any other ethnic group, but discriminatory loan practices and limited access to funding are hurting growth.
- __[Goat](https://snacks.robinhood.com/newsletters/wqI3rVqDQDKE5npz9lYJ2/articles/DIvfDAPRIDVEANEea4ngu/)__: NFL legend Tom Brady made *hundreds of millions* on football and sponsorships, but he could earn more by retiring to focus on his startups and crypto.
- __[Pump](https://snacks.robinhood.com/newsletters/wqI3rVqDQDKE5npz9lYJ2/articles/3YyQPqDLuG3o7Yf4Ub7lIh/):__ Sky-high gas prices are fueling record profits for __[Exxon](https://robinhood.com/stocks/XOM)__ and __[Chevron](https://robinhood.com/stocks/CVX)__ — now the oil giants are paying it forward to investors with dividends and share buybacks.

ICYMI

Last week's highlights...

NBC’s Super Bowl-ympics, Meta’s ad mayhem, and more of today’s top Snacks stories

[Ronald Martinez / Staff via Getty Images]

The most-watched Super Bowl in history was the 2015 game between the Patriots and Seahawks, with 114M viewers

🏈 NBC’s Super Bowl-ympics

__Splitting the brunch bill IRL…__ __[PayPal](https://robinhood.com/stocks/PYPL)__ had a few bright spots in its earnings on Wednesday: Quarterly sales and payment transactions hit record highs, while millennial fave Venmo generated nearly $1B in [revenue](https://www.fool.com/earnings/call-transcripts/2022/02/02/paypal-holdings-pypl-q4-2021-earnings-call-transcr/) (FYI: PayPal makes most of its money from processing fees). But then PayPal warned that new users are expected to reach only 20M this year, compared with the 46M added last year. Cue: PayPal stock had its worst day ever, plunging 24% and shedding *$50B* from its market cap. A few reasons for the cooling growth:

- __1.__ Lower-income users are cutting back on spending as prices soar and stimulus savings run dry. In December, US consumer spending fell for the first time in nearly a year.
- __2.__ PayPal had to close 4.5M “bad actor” [accounts](https://www.bloomberg.com/news/articles/2022-02-02/paypal-gets-stung-by-bad-actors-shuts-4-5-million-accounts) after its incentive to give new users a $10 sign-up bonus backfired. 
- __3.__ PayPal's split from __[eBay](https://robinhood.com/stocks/ebay)__, which was its primary checkout service, [left](https://www.thestreet.com/markets/paypal-stock-plummets-to-20-month-low-on-ebay-hit-to-2022-outlook) a $1.4B hole in profits.

__$10 Venmo request > $10 bill…__ The pandemic pushed us further into contact-less spending as more than half of Americans swapped cash and credit for digi-payments. In 2020, PayPal had its best year *ever* with total payment volume reaching nearly $1T. Now it’s doubling down on user engagement vs. user growth to revive spending. Think: building a PayPal “super app” where users can pay bills, access savings, and trade crypto all in one. Yet it still hasn’t integrated PayPal with Venmo.

When no one has Venmo [LeoPatrizi/E+ via Getty Images]

Request

__Many pandemic thrivers are looking like divers…__ especially when compared with their 2020 performance (aka: year-over-year earnings). Shares of __[Peloton](https://robinhood.com/stocks/PTON)__, __[Zoom](https://robinhood.com/stocks/ZM)__, __[Netflix](https://robinhood.com/stocks/NFLX)__, and PayPal have taken major dives this year, as growth slows and year-over-year comparisons look *harsh*. Pandemic thrivers helped make lockdown life livable, but “normal” life is returning. In the past year, PayPal’s stock has lost [half](https://robinhood.com/stocks/PYPL) its value and erased nearly all pandemic gains.

Venmo owner PayPal had its worst day after fizzling user growth, as pandemic thrivers become divers

__“Your order supports this Black-owned business”…__ Black Americans are [more likely](https://www.mckinsey.com/featured-insights/coronavirus-leading-through-the-crisis/charting-the-path-to-the-next-normal/growth-is-elusive-for-many-black-owned-brands) to start businesses than any other ethnic group, with women of color starting businesses at [4.5X](https://www.forbes.com/sites/elizabethmacbride/2021/05/23/white-men-are-now-the-minority-of-business-owners-in-the-united-states/?sh=6c056a8b1582) the rate of the overall population. In recent years, consumers have [increasingly](https://www.mckinsey.com/industries/retail/our-insights/the-black-unicorn-changing-the-game-for-inclusivity-in-retail) sought to support Black-owned brands. Companies from __[DoorDash](https://robinhood.com/stocks/DASH)__ to __[Airbnb](https://robinhood.com/stocksABNB)__ have spotlighted Black businesses on their platforms — so have influencers and celebs. But despite this traction, many Black brands are finding it difficult to grow.

- __Just [4%](https://www.mckinsey.com/featured-insights/coronavirus-leading-through-the-crisis/charting-the-path-to-the-next-normal/growth-is-elusive-for-many-black-owned-brands) of Black businesses__ are still open after 3.5 years — dramatically less than the national average of 55%.
- __Fewer than half__ of Black-owned businesses were considered healthy before the pandemic began, compared with 73% for white-owned businesses.

__Mind the gap…__ Loans and venture capital are critical to business growth, but Black businesses tend to have less access to funding. 

- __Limited loan $$$:__ A recent __McKinsey__ study found that [47%](https://www.mckinsey.com/featured-insights/coronavirus-leading-through-the-crisis/charting-the-path-to-the-next-normal/growth-is-elusive-for-many-black-owned-brands) of Black biz owners’ loan requests were approved, compared with 75% for white owners. 
- __Lower starting capital:__ Black entrepreneurs start off with [$35K](https://www.mckinsey.com/industries/retail/our-insights/the-black-unicorn-changing-the-game-for-inclusivity-in-retail), on average, compared with $107K for white entrepreneurs.
- __Less venture capital:__ Fewer than 2% of $1B+ startups over the past decade have had Black founders.

__Why…__ Several factors contribute to the funding discrepancies, including discrimination and the widening racial [wealth gap](https://snacks.robinhood.com/newsletters/bg6FaCgu8qc8z1Zllmofx/articles/3ZVsKmCRQNLUOSaAVHfNJi/). Also: Majority-Black neighborhoods have [fewer](https://www.brookings.edu/research/an-analysis-of-financial-institutions-in-black-majority-communities-black-borrowers-and-depositors-face-considerable-challenges-in-accessing-banking-services/#:~:text=Because%20Black%20people%20are%20more,depend%20on%20alternative%20financial%20institutions.) bank branches and higher interest rates on biz loans compared with the national average. While three-fourths of the US uses digital banking, brick-and-mortar branches are [still vital](https://www.brookings.edu/research/an-analysis-of-financial-institutions-in-black-majority-communities-black-borrowers-and-depositors-face-considerable-challenges-in-accessing-banking-services/#:~:text=Because%20Black%20people%20are%20more,depend%20on%20alternative%20financial%20institutions.), especially in low-income urban neighborhoods and rural communities. 

__Equitable funding is essential for growth…__ Black communities have traditionally been the most likely to be denied access to capital, and Black families are [still](https://www.cnbc.com/2020/08/19/lenders-deny-mortgages-for-blacks-at-a-rate-80percent-higher-than-whites.html) more likely to be denied mortgages. The traditional banking process can be riddled with discrimination, and lenders sometimes make decisions based on factors other than creditworthiness. In fact, Black-owned businesses were [12%](https://www.brookings.edu/research/an-analysis-of-financial-institutions-in-black-majority-communities-black-borrowers-and-depositors-face-considerable-challenges-in-accessing-banking-services/) more likely to obtain PPP loans from fintech lenders as opposed to small brick-and-mortar banks, where humans make decisions rather than algorithms. Moves by financial companies to address inequalities could help shrink funding gaps.

Inside the funding gap: Black Americans start more businesses, but growth is elusive

Venmo owner PayPal has its worst day after fizzling growth, as pandemic thrivers take a dive

[SOPA Images / Contributor via GettyImages]

Only two consumer retail unicorns have been Black-founded, and both are celeb-led: Rihanna’s Savage X Fenty and Pat McGrath Labs

💵 Inside the racial funding gap

__Cue the “Social Network” soundtrack...__ Tension is rising at the company formerly known as Facebook. __[Meta](https://robinhood.com/stocks/FB)__ shares tanked 22% after the company [disappointed](https://www.cnbc.com/2022/02/02/facebook-parent-meta-fb-q4-2021-earnings.html) on earnings and user growth. Meta’s quarterly revenue growth slowed, with sales up just 20% from a year ago (compared with 33% growth the previous quarter and 56% before that). Even worse: Quarterly profit *fell* by $1B from a year earlier.

- __Meta blamed__ __[Apple’s](https://robinhood.com/stocks/AAPL)__ iOS update, which lets users opt out of ad tracking, and inflation and supply issues for hurting advertiser spend. Ads still make up 97% of Meta’s revenue. 
- __Awk:__ Google just posted its third straight quarter of record sales despite facing the same challenges, as holiday searches drove ad spend.

__An Oculus for Hanukkah...__ Smart Ray-Bans for Christmas. This holiday quarter was the first that Meta broke out results for Facebook Reality Labs, which houses its VR and AR goodies. Think: $200 Oculus VR headsets, which are required to access Meta’s immersive “Horizon Worlds.” ICYMI: Meta is positioning itself as a metaverse company, *not* a social company. How it’s going:

- __Virtual $$:__ Reality Labs brought in $877M in quarterly revenue, slightly up from a year ago. But its operating loss was *$3.3B*. 
- __To build an immersive meta-future,__ Meta says it’ll spend $10B over the next year. It’s a big bet that’s currently hurting profits. 
- __A bet that *didn’t* pan out:__ Meta just ended its cryptocurrency project, Diem (fka: Libra), [selling](https://www.theverge.com/2022/1/31/22911426/meta-diem-cryptocurrency-confirms-sale) it for $200M after years of regulatory pushback. 

Looking for the lost profit like [gremlin/E+ via Getty Images]

Reality

__The metaverse = a major conversation-shifter...__ because Meta *doesn't* want you talking about its failed crypto project, regulatory scrutiny, misinfo issues, and Insta’s mental-health toll on teens. Zuck hopes that by 2030 the metaverse will reach 1B people and generate hundreds of billions in commerce sales. __[Microsoft](https://robinhood.com/stocks/MSFT)__, __[Roblox](https://robinhood.com/stocks/RBLX)__, and __[Nvidia](https://robinhood.com/stocks/NVDA)__ are also investing in a meta-future. But today Meta is still an ad-based social giant with the same sticky problems. 

Meta’s shares tank on bummer earnings, while its metaverse investments weigh on profits

__Shamu meets the Millennium Force…__ Bring a poncho. __[SeaWorld](https://robinhood.com/stocks/SEAS)__ has made a splashy comeback since the pandemic forced it to shut down parks and furlough nearly [all](https://www.wsj.com/articles/seaworld-lays-off-most-furloughed-employees-11599260090) its employees in 2020. Last quarter, SeaWorld’s sales hit a [record](https://www.tampabay.com/life-culture/entertainment/theme-parks/2021/08/05/seaworld-busch-gardens-beat-market-estimates-on-attendance-revenue/) as thrill-seekers returned to its water parks for holiday-themed nights ([see](https://seaworldentertainment.com/howl-o-scream/): Howl-O-Scream). Now SeaWorld wants to double down by buying fellow amusement-park operator __[Cedar Fair](https://robinhood.com/stocks/FUN)__ for $3.4B. What’s on the table:

- __Cedar [owns](https://www.cedarfair.com/properties) 11 US-based__ amusement and water parks, including California’s Great Americas. SeaWorld owns 12 US parks, so it could double its footprint with the acquisition. 
- __Deal déjà vu:__ Rival __[Six Flags](https://robinhood.com/stocks/SIX)__ offered to buy Cedar Fair for $4B back in 2019, but was rejected because the price was "too low." Not promising for SeaWorld’s $3.4B bid.

__Beached…__ amusement parks were feeling the pain mid-pandemic. And despite the record revenue, SeaWorld’s attendance still isn’t back to pre-pandemic levels. Tighter international travel requirements have stalled the return of foreign tourists, which made up more than 10% of SeaWorld’s guests. But Americans are starting to fill the spending gap:

- __NBCUniversal’s__ theme-park division just posted its most profitable quarter [*ever*](https://deadline.com/2022/01/universal-studios-orlando-nbcuniversal-theme-parks-jeff-shell-universal-studios-hollywood-1234920882/) as domestic visitors splurged on souvenirs and pretzels. Cedar Fair also saw record revenue *and* in-park spending last quarter.

Splash

__Spreading out can minimize risk… if one region gets hit hard.__ SeaWorld’s properties are primarily scattered [across](https://seaworldentertainment.com/our-brands/) densely populated warm-weather states, like Florida and California. Meanwhile, Cedar Fair’s parks dominate the Midwest and rural areas. While Omicron continues to threaten recovery, diversifying location “portfolios” can help spread out risk. And could lead to billions in extra sales for SeaWorld.

Shamu icon SeaWorld makes a $3.4B bid for rival park chain Cedar Fair to diversify its footprint

[Chesnot / Contributor via Getty Images]

Otters have tiny pockets in their skin to store their favorite rocks, which help them crack open mollusks and clams

🤖 Facebook’s first Meta earnings

__Double take on the gas-price sign...__ #PumpAnxiety is real. Gas prices are up 50% from a year ago and oil is near a seven-year high. That's hurting your wallet but helping energy giants. Last quarter, Exxon's sales [climbed](https://www.cnbc.com/2022/02/01/exxon-xom-earnings-q4-2021.html) over 80% from a year ago, to a slick $85B. Annual profit hit $23B, the highest since 2014. Last week __[Chevron](https://robinhood.com/stocks/CVX)__ also reported its highest yearly profit since 2014. __[Shell](https://robinhood.com/stocks/SHEL)__ and __[BP](https://robinhood.com/stocks/BP)__ report this week.

- __Exx-on:__ Exxon shares climbed 5% yesterday to their highest level since April 2019.
- __Exx-off:__ Exxon paid $20B in debt last year, bringing its IOUs to pre-Covid levels.
- __Houst-on:__ Exxon is moving its HQ to Houston as part of a reorg that it says will yield $6B in cost savings.

__Shareholders get $$$...__ Instead of simply reinvesting their cash into new oil projects, gas giants are [paying it forward](https://www.wsj.com/articles/exxon-chevron-hit-gushers-of-cash-as-big-oil-companies-lure-back-investors-11643721078?mod=hp_lead_pos12) to investors. Public companies can do that in two key ways: through dividends (literally giving investors $$) and share buybacks (which can boost share prices by reducing available shares). 

- __Chevron,__ whose shares hit a record last week, bumped its dividend payout by 6% to $1.42/share and said it’ll buy back up to $5B of its own stock this year.
- __Exxon__ said it would start buying back its stock this quarter and expected to boost its dividend this year. Shares are up 78% over the past year.

We’re going to need a bigger dividend [mediaphotos/E+ via Getty Images]

Gasolina

__“Anti-growth” mode is the new growth mode…__ Companies in relatively stagnant industries (think: oil and industrials) have seen their stock jump. At the same time, “growth stocks” like tech have plunged well below records. Growth companies are (in-)famous for splurging *now* to power more growth long term. But as interest rates and inflation rise, the value of a company’s future growth falls. For investors, results *now* (like: dividends from oil profits) are starting to look more interesting than potential growth.

Oil giants notch stunning profits as gas prices soar — now they’re paying investors

__The King of the NFL…__ Could become the king of the *NFT*. Yesterday, seven-time Super Bowl champ Tom Brady [announced](https://www.sportingnews.com/us/nfl/news/tom-brady-retirement-business-family/1b4z3gnsyq1yx1ryny461yood9#:~:text=What%20companies%20does%20Tom%20Brady,wrote%20in%20his%20retirement%20post.) his retirement from football on __[Twitter](https://robinhood.com/stocks/TWTR)__ and Insta. Over 22 seasons, Brady set all-time passing, touchdown, and win records, establishing himself as the GOAT — greatest of all time. Brady is also the highest-earning NFL player *ever*. He earned $293M on the field and $160M off the field through sponsorships for companies like __[Under Armour](https://robinhood.com/stocks/UA)__ and __Subway__. Between touchdowns, he *also* cofounded several businesses:

- __Blockchain Brady:__ Last year Brady and partners launched __Autograph.io__, a platform that sells collectible NFTs featuring famous athletes like Naomi Osaka, Tiger Woods, and… Tom Brady. In January it raised $170M. Brady and his wife, Gisele Bündchen, also took a stake in crypto exchange __FTX__ last June (even appearing in its [ad](https://www.youtube.com/watch?v=mfGtDjbpRBo&t=2s)).
- __Brady has cofounded__ wellness-coaching biz __TB 12 Sports__ (60-min. sessions for $200), apparel co. __Brady Brand__ ([T-shirts](https://www.bradybrand.com/products/regenerate-ponte-football-short-sleeve-graphite) for $140), and content shop __199 Productions__ (Brady’s expected to star in its upcoming film). 

__Old GOAT, new tricks…__ Brady helped write the playbook for the pro athlete side hustle, using his dominance to create a huge fan base — and then selling products to those fans. Others have followed the same formula:

- __NBA greats__ LeBron James, Kevin Durant, and Steph Curry have all helped found sports-media companies in the past decade.
- __Tennis icon Serena Williams__ has cofounded jewelry, apparel, and investment companies. Meanwhile, Maria Sharapova and Cristiano Ronaldo have launched candy, footwear, and fragrance brands while still competing.

[Kevin C. Cox / Getty Images]

GOAT

__The core brand is only the beginning…__ Brady’s “core brand” is football, but his next could be a crypto-powered Brady-verse. His NFL career earned him more $$ than any other player, but his crypto investments could be the plays that make him a billionaire. Other celeb-preneurs have made more money through their side hustles than their original careers: Rihanna and Kim Kardashian became billionaires only after launching multibillion-dollar beauty brands. If Brady can attract loyal fans to his crypto businesses, he could become the first all-star in the booming industry. 

Tom Brady retires as the highest-paid NFL star, but could make even more as a crypto-preneur

Tom Brady retires as the highest-paid NFL star ever, but could make even more as a crypto-preneur

This year's Super Bowl tickets are the most expensive ever, up 20% from last year, to an average price of $10K

🏈 Tom Brady’s next (crypto) play

__The rock ‘n roll revolt…__ just got an encore. Criticism from cultural icons has pushed __[Spotify](https://robinhood.com/stocks/SPOT)__ to be more upfront about its moderation policies. Refresher: last week, Neil Young demanded that Spotify remove his tunes or remove Joe Rogan, the world’s most popular podcaster. The backlash was fueled by an interview Rogan published with a scientist who promoted Covid vaccine misinformation. Young pulled his music from Spotify, and Joni Mitchell said she’d follow. Then Brene Brown [said](https://www.theverge.com/2022/1/30/22909140/brene-brown-spotify-podcast-joe-rogan-controversy) she was pausing her Spotify-exclusive pod. Now, Spotify’s making amends: 

- __Spotify published its [moderation policies](https://newsroom.spotify.com/2022-01-30/spotify-platform-rules/),__ which weren’t publicly available before and weren’t clearly enforced consistently. For example: Spotify has removed thousands of episodes containing Covid misinfo, but not the Joe Rogan ep. The streamer has also removed dozens of Rogan episodes, but no vax-related ones.
- __Spotify is working to add a content advisory__ to any Covid-related pods, which will direct listeners to a Covid hub with up-to-date, trusted info. 
- __Rogan’s response:__ In a 10-minute Insta video, Rogan said he would try harder to “balance out these more controversial viewpoints with other people’s perspectives” and that he’s happy to include a disclaimer on his pod. 

Spotify’s having its “__[Facebook](https://robinhood.com/stocks/FB)__ moment”... Facebook has faced major backlash for failing to rein in misinfo around important national issues (flashback to 2016 elections). __[Twitter](https://robinhood.com/stocks/TWTR)__, YouTube, and other social apps have also struggled with content moderation as they’ve grown — from regulatory probes to public backlash. Facebook has paid __[Accenture](https://robinhood.com/stocks/ACN)__ $500M per year to help moderate its platform, but still hasn’t regained user trust.

Spotify recording its Platform Policies [Vladimir Godnik via GettyImages]

__Stars have huge platform power…__ And if platforms lose stars, they could also lose users. Neil Young and Joni Mitchell successfully pushed Spotify to reverse its stance on Covid misinformation. And stars with even larger followings (cough, Taylor Swift) could push platforms further, as some [viral](https://www.nytimes.com/2022/01/31/technology/joe-rogan-spotify-controversy.html) tweets have flagged. Now that Spotify passed __[Apple](https://robinhood.com/stocks/AAPL)__ as the world’s largest pod platform, stars and their fans could hold it to higher standards when it comes to sensitive issues like elections, public health, and climate change.

Spotify boosts its moderation transparency after celeb-driven backlash vs Joe Rogan’s Covid content

__Unicorns find shelter…__ More than $1T has been wiped from the crypto market since November, when it was worth $3T. Despite the crypto currency plunge, venture capital is doubling down on crypto *companies*. Bahamas-based crypto exchange __FTX__ just raised [$400M](https://money.yahoo.com/crypto-exchange-ftx-raises-fresh-capital-now-valued-at-32-billion-135617687.html) in its latest funding round, giving it a $32B valuation — getting it closer to rival __[Coinbase](https://robinhood.com/stocks/COIN)__. FTX's app lets retail and institutional buyers make sophisticated crypto and token trades, as well as mint, auction, or trade NFTs. Its US sister exchange, __FTX US__, announced new [funding](https://www.cnbc.com/2022/01/31/crypto-exchange-ftx-valued-at-32-billion-amid-bitcoin-price-plunge.html) at an $8B valuation last week:

- __Fee’d Up:__ FTX makes its money off trading activity and fees, including a 5% [fee](https://help.ftx.com/hc/en-us/articles/360061609792-NFT-Overview#What-are-the-fees-4) to trade NFTs. 
- __Flashy Backers:__ FTX owns the naming rights to Miami Heat stadium and is the MLB's official crypto exchange. Power couple Tom Brady and Gisele Bundchen are also investors and brand ambassadors.

__Wild ride for cryptos...__ __[Bitcoin](https://robinhood.com/crypto/BTC)__ and __[Ethereum](https://robinhood.com/crypto/ETH)__, the two biggest cryptos, have fallen 40% from their highs as investors [brace](https://snacks.robinhood.com/newsletters/2MVH2KDOTUkUCH5cozGBos/articles/5FbD7KaOehttkedpLIaG0m/) for inflation-fighting Fed moves and ditch riskier assets. It's been bumpy: bitcoin hit a one-year low in July, dropping to $30K, before more than doubling to its record in November. Now, it's on pace for its worst month since May. Despite the sell-off, venture funding for crypto has been booming. Venture investments in crypto and blockchain startups reached [$33B](https://blockworks.co/report-vcs-invested-33b-in-crypto-and-blockchain-startups-in-2021/#:~:text=In%202021%2C%20venture%20capitalists%20invested,firms%20across%20all%20sectors%20globally) last year — and are expected to surpass that this year.

Chill

__It's too soon to tell if a "crypto winter" is here…__ Institutional crypto funds added a record [$9.3B](https://cointelegraph.com/news/crypto-funds-attracted-9-3b-in-inflows-in-2021-as-institutional-adoption-grew) to their investment funds in 2021, and cryptos aren't alone in seeing declines: The Nasdaq index is down 10% this year. Also, on-chain action (aka the volume of crypto transactions and activity happening on blockchains) hasn't reached anywhere near 2018 levels when activity crashed. But some bears like __[JPMorgan](https://robinhood.com/stocks/JPM)__ CEO Jamie Dimon say crypto is worthless until there’s more regulation. Now, President Biden is reportedly planning moves: Barron's reported Biden is [planning](https://www.barrons.com/articles/white-house-executive-action-regulate-cryptos-national-security-51643312454) an executive order that could help set the stage for crypto and digital asset regulation.

Coin exchange FTX hits a $32B valuation as crypto investments hit records, and some fear a “crypto winter”

Spotify boosts its moderation transparency after celeb-driven backlash vs Joe Rogan

[NurPhoto / Contributor via Getty Images]

Joseph Searles became the New York Stock Exchange’s first African American floor broker in 1973

🎤 Spotify’s Covid content crackdown

__On your mark, get set…__ Go digital. China will [promote](https://www.bloomberg.com/news/articles/2022-01-10/china-offers-digital-yuan-at-olympics-to-test-overseas-appeal?sref=q3KSFp38) its state-run digital currency at the Winter Olympics, which kick off on Friday in Beijing. The digital yuan (#digi-yuan) is Earth’s first major central bank-backed digital currency. China started rolling it out in 2019, and even tested expiration dates to fuel spending. This month, China opened it up to all citizens and launched a digi-wallet app (it already has 261M users).  

- __Digi-yuan is real Chinese currency,__ but code instead of paper. Unlike crypto and cash, there's no anonymity with digi-yuan (China traces spending).
- __Digi-snow cone:__ International athletes and visitors can use it to pay for transit, food, and even Great Wall tours. But US lawmakers told Olympic athletes not to use it on privacy concerns. 
- __Digi-Big Mac:__ China is pushing US companies like __[Nike](https://robinhood.com/stocks/NKE)__ and __[Visa](https://robinhood.com/stocks/V)__ to accept digi-yuans, and __[McDonald’s](https://robinhood.com/stocks/MCD)__ and __Subway__ locations in Shanghai already do. 
- __Digi-competition:__ China says its digi wallet won’t replace popular payment apps like __[Alibaba](https://robinhood.com/stocks/BABA)__-backed Alipay and __[Tencent’s](https://robinhood.com/stocks/TCEHY)__ WeChat Pay, which support digi-yuan. But those providers aren’t available at the Olympic Village, while China’s digi-wallet is (awk).

__Watch the throne…__ Digi-yuan could [threaten](https://www.bloomberg.com/news/articles/2022-01-20/fed-takes-key-step-forward-in-deciding-on-digital-coin-issuance?sref=q3KSFp38) the US dollar’s global trade dominance and soften the effect of US sanctions, especially on China. The USD’s reliable rep has made it the world's "reserve currency" for international purchases (think: Canada buys oil from Mexico... in USD), making US sanctions a nightmare for impacted countries. Also: USD is used in 88% of foreign exchange trades. But the dollar’s share of global payments is falling as euros, yuans, and cryptos gain. And now, China is positioning the digi-yuan for international use. 

Racing for Olympic digi-gold [Aksonov/E+ via GettyImages]

__The race to digi-dominance is on…__ 87 countries are developing digital currencies, which settle instantly, are less expensive to create, and are more accessible for people without bank accounts. Of the five biggest banking systems, the US is furthest from going digital – though it’s [exploring](https://www.cnbc.com/2022/01/20/fed-releases-long-awaited-study-on-a-digital-dollar-but-doesnt-take-a-position-yet-on-creating-one.html) a digital dollar. But there are concerns with digi-currencies: surveillance states like China could use them to automatically fine citizens for things like jaywalking (it’s [already using](https://www.newsweek.com/jaywalking-china-facial-recognition-surveillance-will-soon-fine-citizens-text-861401) facial recognition cameras to send fine notifications via text). 

China champions digi-yuan at the Beijing Olympics as countries race to launch digital currencies

__Spoti-fiasco...__ __[Spotify’s](https://robinhood.com/stocks/SPOT)__ getting heat for "The Joe Rogan Experience," aka: the world's largest pod. In December, Rogan interviewed Covid vaccine critic Dr. Robert Malone. Cue: 270 medical experts called on Spotify to curb misinfo on its platform. Then, Neil Young demanded that Spotify remove his tunes *or* remove Rogan — Spotify [nixed](https://www.nytimes.com/2022/01/26/arts/music/spotify-neil-young-joe-rogan.html) Young. The streamer reportedly paid $100M to make JRE Spotify-exclusive, as pods play a growing role in its growth (FYI: it reports on Wednesday). As its pod biz booms, Spotify could face more pressure to define its moderation policies.

__Yellow Cab meets Jetsons...__ Electric flying taxis (think: futuristic helicopters) are taking off.  __[Boeing](https://robinhood.com/stocks/BA)__-backed startup __Wisk__ just [sealed](https://www.cnbc.com/2021/05/05/boeing-backed-start-up-wisk-inks-first-deal-to-operate-air-taxis-in-the-us.html) a deal with __[Blade’s](https://robinhood.com/stocks/BLDE)__ urban mobility network to fly autonomous taxis in the US. Earlier this month, __[Toyota](https://robinhood.com/stocks/TM)__-backed __Joby__ said its prototype [completed](https://www.thestreet.com/investing/boeing-wants-to-take-air-taxis-to-new-heights-will-it-ever-happen) a high-speed flight. ETA for passenger service: 2024. Houston, LA, and Orlando have [announced](https://www.bbc.com/news/business-58895259) plans to establish air taxi “skyports.” *But first*, flying taxis need the FAA’s greenlight to fly commercially. And companies still face several hurdles — from air traffic control challenges, to public support. 

Zoom Out

__Tech in the red...__ The tech-heavy Nasdaq index is still in a [correction](https://snacks.robinhood.com/newsletters/2MVH2KDOTUkUCH5cozGBos/articles/5FbD7KaOehttkedpLIaG0m/) (down 14% from its November record). Now, all eyes are on earnings coming up from __[Amazon](https://robinhood.com/stocks/AMZN)__, __[Alphabet](https://robinhood.com/stocks/GOOGL)__, and __[Meta](https://robinhood.com/stocks/FB)__. Amazon’s hot holiday profits could get dinged by wage hikes, while Meta plans to finally break out results for its AR segment. Investors are curious to see if the tech biggies can keep up their streaks, after pandemic thrivers like __[Netflix](https://robinhood.com/stocks/NFLX)__ and __[Peloton](https://robinhood.com/stocks/PTON)__ reported slowing growth. Still, Microsoft's big earnings beat and Apple’s [record](https://snacks.robinhood.com/newsletters/6lzvLrthhcs2XAAKrGo75i/) quarterly sales are encouraging.

__Rattling some pills…__ The FDA halted distribution of __[Regeneron’s](https://robinhood.com/stocks/REGN)__ and __[Eli Lilly’s](https://robinhood.com/stocks/LLY)__ Covid treatments last week because the drugs haven’t been working against Omicron, which makes up 99% of US cases. Bad news for the drugmakers, since those antibody drugs drove nearly a third of their sales last quarter. Meanwhile, __[Merck's](https://robinhood.com/stocks/MRK)__ pioneering Covid pill is showing promise in treating the variant, and is expected to generate $7B in sales this year. We might get updates on how pharma views [Omicron variant #2](https://www.npr.org/sections/goatsandsoda/2022/01/27/1076123109/new-covid-variant-omicron-ba-2) (it’s a thing) when they report this week.

Coming up this week...

- __[Fruity](https://snacks.robinhood.com/newsletters/6lzvLrthhcs2XAAKrGo75i/articles/7e5qXvCBhkuZLAaOHOSRix/):__ __[Apple](https://robinhood.com/stocks/AAPL)__ had its biggest quarter of sales *ever* as people upgraded to new iPhone 13s and faster Macs. Despite supply hurdles, sales grew across every product line except iPads (womp).
- __[Elsa](https://snacks.robinhood.com/newsletters/4QN62CZuPk6oaS6C02r6Z0/articles/3aC2oqFOa8KihaatuNebxB/):__ Barbie-maker __[Mattel](https://robinhood.com/stocks/MAT)__ won back the rights to make Disney princess dolls, after losing them six years ago to rival toy giant __[Hasbro](https://robinhood.com/stocks/HAS)__. __[Disney’s](https://robinhood.com/stocks/DIS)__ licensing biz shows that intellectual property is queen. 
- __[Elon](https://snacks.robinhood.com/newsletters/4QN62CZuPk6oaS6C02r6Z0/articles/3vuKBJLCx6CRhgUtmhV7Pw/):__ __[Tesla’s](https://robinhood.com/stocks/TSLA)__ quarterly profit 9X’d from a year earlier, while annual car deliveries nearly doubled to a Musk-ular 926K. But its market share is plunging as OGs like __[Ford](https://robinhood.com/stocks/F)__, __[GM](https://robinhood.com/stocks/GM)__, and __[Volkswagen](https://robinhood.com/stocks/VWAGY)__ scale EV production. 

Last week's highlights…

China champions digi-yuan at the Olympics as countries race to launch digital currencies

[Matthias Hangst / Staff via Getty Images]

The Beijing Winter Olympics will be the first to use 100% artificial snow

🪙 China’s Olympic digi-currency

__Party in Cupertino...__ home of the world’s most valuable company. __[Apple](https://robinhood.com/stocks/AAPL)__ had its [biggest](https://www.cnbc.com/2022/01/27/apple-aapl-earnings-q1-2022.html) quarter of sales ever in the three months leading up to Christmas. Despite supply challenges, the Fruit's sales last quarter jumped 11% to an expectation-beating $124B. Sales grew across every product line except iPads (womp). CEO Tim Cook reassured investors by saying supply issues were easing, and Apple shares spiked 5%.

- __iPhone sales,__ which make up more than half of Apple's total, jumped 9% as people upgraded to new 5G models. FYI: It was the first full quarter of iPhone 13 sales.
- __Macs__ saw the strongest sales growth of any Apple hardware, thanks to new $2K Pro models featuring [faster](https://www.apple.com/newsroom/2021/10/introducing-m1-pro-and-m1-max-the-most-powerful-chips-apple-has-ever-built/) Apple-made chips instead of Intel ones.
- __Services__ revenue (think: App Store, Music, iCloud) jumped 25% and was Apple's most profitable unit, helping cancel out losses from supply issues and inflation.

__Party in Beijing…__ Apple also just [reclaimed](https://www.cnbc.com/2022/01/27/apple-china-iphone-maker-hits-record-market-share-claims-nopoint1-spot.html) its #1 smartphone-seller spot in China for the first time in six years. iPhones now account for nearly a quarter of phones in the key market. While total smartphone sales in China fell 9% on shortages and sluggish spending, iPhone sales *grew* 32% in the country of nearly 1.5B people. The iPhone 13, with its “relatively lower starting price” and 5G features, drove growth in “switchers” (like: former Android-ers). 

Waiting for the iPhone 15 Pro Max Plus 7G+ Pro [Westend61 via Getty Images]

Sweet

__Apple has a double edge in China…__ which makes up one-fifth of its sales — nearly as much as Europe. Edge #1: While US-China tensions grow and American tech companies pull out of the market, Apple has been exempt from many of the limitations imposed on foreign companies. That could be thanks to a $275B deal [reportedly](https://snacks.robinhood.com/newsletters/8CJdeeRfDkfhBdQKIiTPE/articles/1jm6swCYJUotXpvqyDRoM3/) struck between Cook and the Chinese gov’t. Edge #2: US sanctions helped Apple gain market share in China because they blocked Chinese competitors like __Huawei__ from getting key components and software for phones.

Apple has its best quarterly sales ever — its “double edge” in China helped

__Saweetie ’n’ Sour…__ Like its Saweetie-inspired sauce, __[McDonald’s](https://robinhood.com/stocks/MCD)__ latest earnings were a mixed bag. Sales were sweet: McD’s global revenue reached $23B last year, the highest in six years. Fun fact: Big Mac, McNuggets, and fries were 60% of total sales. Profits were sour: wage hikes + higher prices on everything from patties to paper bags ate into the bottom line. In 2021 McD’s hiked menu prices by 6%. Indulging in McDonald’s could get even pricier this year as the company expects ingredient prices to [*double*](https://www.wsj.com/articles/mcdonalds-sales-lifted-by-higher-prices-sandwich-campaigns-11643284802).

__Smooth like buttered McMuffin…__ Fast-food chains saw mid-pandemic sales jumps as cooped-up consumers hit drive-thrus to satisfy comfort cravings. McD’s pulled in record sales last quarter thanks to strong demand for Crispy Chicken Sandwiches and the newly revived McRib. But its secret sauce is tapping into consumer trends: 

- __Celeb-inspired meals__ from stars like Saweetie, Travis Scott, and BTS have driven sales growth for McD’s. In South Korea, nugget sales tripled after the BTS meal [dropped](https://www.nme.com/news/music/bts-meal-sales-of-mcnuggets-to-jump-by-250-per-cent-in-korea-2977171).
- __Tok trends:__ This month, McDonald’s took a cue from __TikTok__ foodies by rolling out social-inspired “menu hacks.” Now, customers can order the Surf + Turf (Filet-O-Fish meets double cheeseburger) by name.
- __Digi-dominance:__ More than a quarter of all [sales](https://www.fool.com/earnings/call-transcripts/2021/10/27/mcdonalds-corporation-mcd-q3-2021-earnings-call-tr/) in McDonald’s top six markets came from its app, delivery, or touch-screen kiosks.

Saweet

__Customers are the best creators…__ From McD’s hack-inspired items to __[Starbucks’](https://robinhood.com/stocks/SBUX)__ “secret menu” lattes, fast-casual brands are leaning on social trends to determine their strategy. Even TikTok hopped on the bandwagon by launching a ghost-kitchen delivery service for viral meals. Fast-food brands are increasingly tuned into social ([see](https://www.today.com/food/trends/wendys-roasts-people-brands-twitter-thread-rcna12076): __[Wendy’s](https://robinhood.com/stocks/WEN)__ __[Twitter](https://robinhood.com/stocks/TWTR)__ vs. Everyone), since they can skip focus groups by getting insights directly from customers.

McDonald’s cashes in on trendy menus as pricey ingredients and wage hikes hurt profits

[Eric Thayer / Stringer via GettyImages]

Naomi Osaka broke her own record for annual earnings for a female athlete, raking in over $57M last year