__The streak’s over…__ and pump anxiety returns: Last week US gas prices [rose](https://www.forbes.com/sites/nicholasreimann/2022/09/21/us-gas-prices-rise-for-first-time-in-100-days/?sh=6b18b69b1dad) for the first time in nearly 100 days. On Wednesday, the average price of a good old-fashioned gallon ticked up to $3.68. That’s nowhere near the $5 average in mid-June, but prices might keep rising. A few things that could make the energy crisis worse:

- __War:__ On Wednesday, Russian President Putin declared a “partial mobilization” of 300K reservists to fight in Ukraine — and even made a nuclear threat. 
- __Weather:__ Hurricane season could cause supply disruptions, with Hurricane Fiona hitting Category 4 on Wednesday. 

__A bitter cocktail…__ Gas is just one ingredient. At the base we have inflation, which is weakening consumer demand as it sticks near 40-year highs. To fight the inflation Grinch, we have something just as painful: soaring interest rates. Last week the Fed approved its third “jumbo” hike and signaled more are likely (several other central banks also lifted rates). Mix in a looming energy crisis, and the dark-and-stormy combo is complete: 

- __Earlier this month:__ Russia’s __Gazprom__ indefinitely [shut down](https://snacks.robinhood.com/newsletters/7oETBY36SrLGaQPslRoeYL/articles/79MQ7GeoUXRx4wTJr1vGMn/) natural-gas flows to Europe, blaming Western sanctions. This year Europe’s electricity bills have nearly 4X’d. 
- __Last week:__ Germany announced it would nationalize __Uniper__ (its biggest Russian-gas importer) as Europe races to store supplies to keep homes warm this winter.

A tank full of problems (Brandon Bell/Getty Images)

Brewing

__Uncertainty hurts most, but does help some…__ While most sectors have tanked, energy stocks like __[Occidental Petroleum](https://robinhood.com/stocks/OXY/)__ and __[Valero](https://robinhood.com/stocks/VLO/)__ have had a banner year. Considering gas prices, it’s no surprise that energy has been the best-performing sector, followed by utilities. Meanwhile, growth stocks that rely heavily on the prospect of big *future* returns (think: tech) have plunged. A dollar today is worth more than a dollar in a year, and rising interest rates incentivize investors to earn off their cash *now* (think: savings accounts, bonds). Meanwhile, some investors are turning to slower-growing companies with historically stable earnings vs. unprofitable growth companies.

Gas prices trend up for the first time in months as a bitter economic cocktail brews

__Shoot for the stars…__ Even if you miss, you might land at a __[Hilton](https://robinhood.com/stocks/HLT/)__. Space tourism isn’t light-years away: last week __Voyager Space__ [tapped](https://www.cnbc.com/2022/09/19/hilton-partners-with-voyager-starlab-space-station-to-design-astronaut-suites.html) Hilton to design a space hotel set to launch in 2027 (feat. a galactic gym and room service). The space economy is forecast to hit $1T by 2040, and the space-tourism race is heating up: Voyager, __Axiom Space__, __Blue Origin__, and __[Northrop Grumman](https://robinhood.com/stocks/NOC/)__ are using NASA funding to build private space stations. __[Virgin Galactic](https://robinhood.com/stocks/SPCE/)__, Blue Origin, and __SpaceX__ are now selling trips to space for between $50K and $55M.

__Here comes Santa Claus…__ with a *much* lighter sleigh. __[FedEx](https://robinhood.com/stocks/FDX/)__ sent shivers through the market this month after announcing cost-cutting measures on a slowdown in shipping demand and plunging profits — oh, and its CEO forecast “a worldwide recession.” Package deliveries have dipped for nearly all major couriers this year as the ecomm boom cools. Over half of Americans say it’ll be harder to afford holiday gifts. Holiday sales are expected to grow only 4 to 6% this year, down from 15% last year.

Zoom Out

Stories we’re watching...

__Bed Bath &…__ Beyond repair? Expectations are low for __[Bed Bath & Beyond](https://robinhood.com/stocks/BBBY/)__ when it reports Thursday. Last month, the coupon legend [announced](https://snacks.robinhood.com/newsletters/70AWukI131xlHFLP88EM8T/articles/6EIEdveXK2qaTduU5Hv0ex/) plans to close 150 stores and lay off 20% of employees as it struggles to address slumping sales and sliding market share. BB&B has missed earnings expectations for four straight quarters, and its losses 7X’d last quarter as it struggled to stock items customers actually wanted. BB&B raised $500M in financing last month, hoping to head into the holidays with more cash and less baggage.

__Air Jordan problems…__ __[Nike](https://robinhood.com/stocks/NKE/)__ may be the most popular sneaker company, but it has big shoes to fill when it reports Thursday. Nike's direct-to-consumer sales grew 7% last quarter, but revenue in North America (its biggest market) fell 5% as inflation curbs sneaker splurges. In China, sales fell 20% as Covid lockdowns trip up demand. Now Nike’s focusing on ecomm (which make up a quarter of its sales) to offload kicks. It’s a steep climb: Nike’s spending 5X what it did prepandemic to ship products, and this year the stock’s down 41%.

Events

Coming up this week...

- __[Blank](https://snacks.robinhood.com/newsletters/KzzfFjx1Ng1lyjGJiZJ0W/articles/3ywag1qgBYXGQTzeuSwAkA/):__ “SPAC King” Chamath Palihapitiya is shuttering two special-purpose acquisition companies worth a combined $1.6B. SPAC-tivity has dwindled this year, with 600 SPACs scrambling to find acquisitions before their deadlines. 
- __[Hole](https://snacks.robinhood.com/newsletters/2FNcgbTKZJ40ykkQHDIiIJ/articles/1dho5yASIr1XkJJTtq2DZo/):__ Prices of crypto-mining machines have tanked 70% this year. The issue: plunging BTC prices + surging electricity costs = lower profits for mining companies, which means lower demand for new equipment.
- __[Play](https://snacks.robinhood.com/newsletters/0T1D7HapptEFn8A65c8L2/articles/29JS1dcQRAdaMAnfUljCYh/):__ __[Spotify](https://robinhood.com/stocks/SPOT/)__ launched a pay-to-download audiobook service for US users, taking on __[Amazon](https://robinhood.com/stocks/AMZN/)__ and __[Apple](https://robinhood.com/stocks/AAPL/)__. Audiobooks are experiencing a growth chapter, and Spotify wants to change the playbook for these “B-list” products.

ICYMI

Last week's highlights...

Dow Jones

S&P 500

Nasdaq

Bitcoin

One-way flights out of Russia sold out after Putin’s call for reservists, and since Wednesday prices out of Moscow to Istanbul have soared to thousands of dollars

🔥 The gas also rises

__Déjà vu at the box office…__ You’re not imagining it: the original “Avatar” is back on big screens this weekend. “Avatar” became the highest-grossing film ever (not adjusted for inflation) when it debuted in 2009, raking in $2.8B globally, and fans demanded a sequel. But __[Disney](https://robinhood.com/stocks/DIS/)__ inherited “Avatar” when it bought 20th Century Fox in 2019 and has been slow to release a sequel. Now Disney’s generating hype by [rereleasing](https://www.cnbc.com/2022/09/22/avatar-returns-theaters-disney-hypes-way-of-water.html) the original in US theaters on Friday:

- __The wait’s (almost) over:__ “Avatar: The Way of Water,” the first of *four* planned sequels, is scheduled to debut in December (just 13 years after the OG…).
- __Better than free advertising:__ Advertising that *pays*. The rerelease is forecast to earn ~$10M. But it’s also said to include a sneak peek of the sequel, which is already gaining buzz.

__Theaters aren’t choosy…__ because they’re struggling. Industry-wide box-office sales are still 30% lower than prepandemic, and the world’s second-largest theater chain, __Regal Cinemas__, filed for bankruptcy this month. Part of the problem: big studios like __[Universal](https://robinhood.com/stocks/UVV/)__ are releasing only some films in theaters and sending others straight to streaming.

- __Fewer blockbusters:__ Nine movies made $1B at the box office in 2019. But since the pandemic, only *two* have cracked $1B, and they’re both franchises (“Spider-Man: No Way Home” and “Top Gun: Maverick”). Analysts expect the new “Avatar" to be the third.

Back on the big screen (Tong Yu/Getty Images)

Pandora

__A bird in the hand could yield two in the bush…__ By reusing “Avatar” Disney can give the sequel a big boost — for very little cost. It owns the two biggest cinematic universes (“Star Wars” and Marvel) and makes money cross-promoting them with films, shows, parks, and merch. Disney’s rerelease could position the “Avatar” franchise to become its next profitable cinematic universe.

Disney rereleases “Avatar” in theaters to drum up hype for its sequel (and its cinematic universe)

__Mining rigs hit rock bottom…__ prices. __Bitmain__, a major manufacturer of the computers that create new __[bitcoin](https://robinhood.com/crypto/BTC/)__, said it's [slashing](https://www.coindesk.com/business/2022/09/21/bitmain-discounts-bitcoin-mining-machines-in-an-already-depressed-market) the cost of its machines. The fire sale comes as mining-rig prices have already tanked 70% this year. The issue: plunging BTC prices + surging electricity costs = lower profits for mining companies, which means lower demand for new equipment. 

- __Stocked:__ As crypto prices climbed last year, miners rushed to preorder rigs from manufacturers like Bitmain and __[Canaan](https://robinhood.com/stocks/CAN/)__ to lock in supply. Higher prices = higher incentive to mine. 
- __Boxed:__ As mining costs rise and returns fall, analysts estimate there are up to 500K new rigs sitting in storage in the US alone (almost 40% of all computing power used to mine BTC is US-based). 

__Mining demand…__ caves in. The largest US publicly traded BTC miners had $1B in second-quarter losses this year. It's not just bitcoin: __[ethereum's](https://robinhood.com/crypto/ETH/)__ Merge last week — from proof of work (energy-hungry) to proof of stake (efficient) — means ethereum miners *and* their expensive rigs are no longer needed. The result: the cost of GPUs for ETH mining fell off a cliff (BTC and ETH miners use different types of computers to unearth digital gold).

Hole

__As crypto evolves, mining must follow…__ That’s why some ETH miners are leaving the biz altogether, repurposing their powerful machines for cloud computing and AI instead. On the BTC side, efforts like Bitmain's collab with mining giant __Merkle Standard__ (think: jointly owned mining data centers) earlier this year could also show potential paths forward.

Crypto-mining rigs go on deep discount as the industry scrambles to respond to tech changes and soaring energy costs

- __📸 Flashy…__ __[Nasdaq Inc.](https://robinhood.com/stocks/NDAQ/)__ wants a taste of crypto. Pending regulatory approval, the corp's getting into the crypto [custody biz](https://www.bloomberg.com/news/articles/2022-09-20/nasdaq-makes-first-big-crypto-push-to-lure-institutional-clients). Holding institutional investors' coins could be a first step toward launching its own crypto exchange.
- __🤔 Sus…__ South Korea [issued](https://www.washingtonpost.com/business/2022/09/19/cryptocurrency-founder-do-kwon-red-notice/) an arrest warrant for Do Kwon, the founder of the failed TerraUSD algo stablecoin ($40B in investor value lost). The 31-year-old tweeted he's not "on the run," but authorities say they can't find him.
- __📜 Official…__ Speaking of which: US legislators drafted a [two-year ban](https://www.bloomberg.com/news/articles/2022-09-20/house-stablecoin-bill-would-put-two-year-ban-on-terra-like-coins) on algo stablecoins like TerraUSD. Nothing's final, but it shows Uncle Sam’s not waiting for another Terra-like collapse to spur regulation.

Cryptic

The Crypto Catch-Up…

Disney rereleases “Avatar” to drum up hype for its sequel as it seeks a new hit franchise

Over half of Americans with student loans say their mental-health challenges stem from that debt

💧 Disney’s “Avatar”-verse

__Heavy is the head…__ that wears the SPAC crown. “SPAC King” Chamath Palihapitiya said he’s [shuttering](https://www.wsj.com/articles/spac-king-chamath-palihapitiya-shuttering-two-spacs-after-failing-to-find-deals-11663674342) two special-purpose acquisition companies worth a combined $1.6B. Refresher: SPACs (aka: blank-check companies) are investment firms that IPO for the sole [purpose](https://snacks.robinhood.com/newsletters/2miYQo5VvBqToiUH0v2lTP/articles/147BXMVnvTG2cNtnGXSgCE/) of merging with real private companies to take them public (think: a more frictionless path to listing). But Palihapitiya’s recent SPACs couldn’t find merger partners by their two-year deadline:

- __Time’s up:__ Both SPACs will now return the funds they raised from investors. Palihapitiya himself will forfeit several million dollars he spent forming them.
- __Past results…__ don’t guarantee future returns. He took __[Virgin Galactic](https://robinhood.com/stocks/SPCE/)__, __[SoFi](https://robinhood.com/stocks/SOFI/)__, __[Opendoor](https://robinhood.com/stocks/OPEN/)__, and __[Clover Health](https://robinhood.com/stocks/CLOV/)__ public via SPAC-quisition. Their stocks boomed last year amid social-media hype but have since fallen 75%+ from their highs. 
- __Uneven returns:__ Palihapitiya’s firm still doubled its money thanks to insider pricing. But many of the retail investors who followed his SPAC-vestments are underwater.

__Blank checks → blank stares…__ #SPACtivity has dwindled this year as rising rates and inflation spook investors. Last year SPACs raised more than $160B; this year they’ve raised just $13B. Overall, SPACs have lost half their value this year. In July, Bill Ackman’s $4B SPAC (the largest ever) returned its money to investors after failing to find an acquisition target.

One SPAC, two SPAC… (Brian Ach/Getty Images)

Blanking

__Headless SPACs are running scared…__ Palihapitiya’s challenges are the tip of the iceberg. The clock’s ticking for the other 600 or so SPACs — which hold nearly $175B of investors’ cash — that are scrambling to find partners. But since many private companies are souring on public markets, and the SEC is thinking about tightening its SPAC rules, it’s looking more likely that many will have to return cash to investors in the coming months.

“SPAC King” returns cash to investors in a sign that the blank-check boom is over

__Cutting a check…__ literally. As the creator economy booms, Twitch wants a bigger slice of the $100B pie. The __[Amazon](https://robinhood.com/stocks/AMZN/)__-owned platform is one of the largest live-streaming subscription sites with 30M+ daily active users and 100K streams running 24/7 (think: gaming follow-alongs). Twitch makes $$ by running ads and taking a cut from subscription sales. 

- __Headline:__ Yesterday, Twitch [announced](https://www.theverge.com/2022/9/21/23364050/twitch-subscription-revenue-split-share-premium-partners) that "premium" creators with a 70-30 subscription revenue split will receive just a 50-50 split after earning $100K.
- __Fine print:__ The change won't take effect till next June, and Twitch says it’ll affect only about 10% of its streamers. FYI: smaller streamers already have the 50-50 split.

__24-hour “Fortnite” marathon…__ zero bathroom breaks. From ASMR bubble-popping to esports, live content has taken the world by storm. Live streaming has accounted for about 20% of all internet traffic this year, doubling from 2019. Nearly a quarter of 18- to 34-year-olds regularly watched live streams last year. Now sites like Twitch and YouTube are battling for the top spot.

ASMR

__Creators have more options than ever…__ Last month, Twitch got rid of its exclusivity clause for top streamers, who are frequently lured into high-paying contracts by rivals. Twitch has the most live-stream hours watched compared to rivals YouTube and __[Facebook](https://robinhood.com/stocks/META/)__, and makes up about 75% of the live market. But its new split could drive more creators to YT, which shares ad revenue 70-30 for channels with 1K+ subscribers.

Twitch is cutting subscription paychecks for its biggest streamers as the creator economy grows more competitive

The “SPAC King” returns cash to investors in a sign that the blank-check boom is over

The US gained 2.5M new millionaires last year, the largest annual boost in millionaires recorded for any country this century

📩 SPAC to sender

__“Spooky vibes” playlist...__ feat. Stephen King. Yesterday __[Spotify](https://robinhood.com/stocks/SPOT/)__ [launched](https://www.nytimes.com/2022/09/20/books/spotify-audiobooks.html) an audiobook service to US users. The catalog has 300K+ titles from independent authors and major publishers like __Penguin Random House__. But your monthly subscription *isn’t* enough to download that Taylor Jenkins Reid best-seller:

- __Pay per download:__ You pay for each audiobook à la carte (prices vary). Malcolm Gladwell's "Talking to Strangers" = $21.90 + tax.
- __Web-only:__ Inconveniently, you can't download books through the app (only on the web). Spotify has [beef](https://techcrunch.com/2021/04/30/europe-charges-apple-with-antitrust-breach-citing-spotify-app-store-complaint/) with __[Apple's](https://robinhood.com/stocks/AAPL/)__ in-app commissions and is avoiding the 30% "App tax."
- __Made for you:__ Eventually Spotify wants to curate audiobooks the same way its algorithms recommend tunes based on your listening habits.

__"Dune" on the I-90...__ Audiobooks are experiencing a growth chapter: audiobook revenues hit $1.7B last year — up 25% from 2020. Spotify believes the audiobook market has massive growth potential that could help drive profits. In July, it bought audiobook distributor Findaway for $119M. But there’s competition in this lucrative market…

- __Top charts:__ __[Amazon’s](https://robinhood.com/stocks/AMZN/)__ Audible is by far the largest audiobook retailer (about half of US sales in April). Apple’s and __[Google’s](https://robinhood.com/stocks/GOOGL/)__ pay-per-book platforms are also popular. 
- __Top concerns:__ Spotify has significantly grown subscribers and content (think: massive pod investments) but has never made an annual profit. The stock’s down 60% this year (lower than its IPO price).

Spotify’s new chapter (Jakub Porzycki/Getty Images)

Playbook

__A big player can change the playbook…__ As the curated-playlist OG, Spotify revolutionized how we listen to music. By taking a novel approach to audiobooks, it could transform that “B-list” product, too (audiobooks still represent less than 7% of the worldwide book market). With its 188M loyal paying subscribers, Spotify could become a hub for book recommendations and bonus content (think: author-curated playlists) and expand the global audiobook audience.

Spotify launches an audiobook business, taking on Amazon and Apple in its quest for profitable growth

__3 jeans, 2 glosses…__ 1 trip. As JCPenney’s mini-shop partnership with Sephora comes to a close, the department-store chain is building its own beauty foundation. Last year JCP launched JCPenney Beauty shops in 10 stores and online, showcasing 250+ makeup and skincare brands. Its debut was designed to offset the end of the Sephora contract:

- __Old digs:__ JCP’s Sephora partnership once included 570+ shops-within-shops (#InceptionRetail) and contributed to nearly 15% of its prepandemic revenue.
- __New digs:__ JCP is expected to open 300 more mini beauty stores (complete with in-department salons) by early 2023 and another 300 in the spring.

__Prime(r) real estate…__ Department stores are prime territory for beauty brands to attract on-the-go shoppers. Last month __[Kohl's](https://robinhood.com/stocks/KSS/)__ announced plans to [expand](https://www.forbes.com/sites/sharonedelson/2022/08/18/kohls-to-roll-out-sephora-beauty-shops-to-all-1100-stores-for-2-billion-in-sales-by-2025/amp/) Sephora mini-shops across its 1.1K US locations (which it expects will yield $2B in sales by 2025). Meanwhile, rival __[Ulta](https://robinhood.com/stocks/ULTA/)__ plans to open 800 more of its stores-within-stores at __[Target](https://robinhood.com/stocks/TGT/)__.

- __Affordability:__ JCP wants to differentiate by offering more inclusive products and prices, shifting its focus from Sephora’s premium brands (think: Bobbi Brown, MAC). 
- __Inclusivity:__ Nearly 20% of JCP Beauty’s products come from Thirteen Lune, a site featuring 100+ BIPOC-founded brands. JCP is also adding indie brands that have never been sold in major retailers.

Masstige

__Masstige > prestige…__ JCP’s Beauty focuses on mass-produced brands that are affordable, innovative, and inclusive. With beauty fans still splurging on cosmetics (see: [lipstick index](https://www.cnbc.com/2022/08/14/-the-lipstick-index-is-back-and-retailers-are-trying-to-cash-in-.html)), “masstige” retailers are luring shoppers with affordability and variety. Last quarter, budget brand __[E.L.F.](https://robinhood.com/stocks/ELF/)__ [grew](https://www.wsj.com/articles/the-3-lipstick-that-ignores-inflation-11663639487) sales 26% — more than double what Wall Street expected — despite keeping prices low on best-sellers.

JCPenney phases out Sephora mini-shops and expands its own beauty stores in a shift to “masstige” cosmetics

Spotify launches an audiobook biz, taking on Amazon in its quest for profitable growth

Amazon said its “Thursday Night Football” debut drew a record number of Prime signups over a three-hour period

📚 Spotify’s audiobook bet

__A tiny taste of normal…__ Starting today, __[McDonald’s](https://robinhood.com/stocks/MCD/)__ will begin [reopening](https://www.nytimes.com/2022/09/19/business/mcdonalds-reopen-ukraine.html) some of its restaurants in Ukraine. McD’s closed all of its 109 locations there after Russia invaded over six months ago. (Refresher: McD’s sold its Russian stores in May and they [reopened](https://snacks.robinhood.com/newsletters/74Rmw5VlxBTIazWlkKzrHf/articles/6JLig31chFCLXR55AUMuC6/) in June under new ownership.) Today, war’s still raging in Ukraine, but McDonald’s says it hopes to restore “a small but important sense of normalcy.” 

- __Taking it slow:__ McD’s plans to open restaurants gradually over the next two months in Kyiv, where __[Nike](https://robinhood.com/stocks/NKE/)__ and KFC stores are open. For now, Big Macs are delivery only, with in-store dining and drive-thru set to resume next month.
- __Safety first:__ McD’s will close during air-raid alerts to allow customers and workers to move to shelters.

__The violence is ongoing…__ but Ukraine's already planning for recovery. Russia’s war on Ukraine has left tens of thousands of people dead, in addition to at least 7M refugees and $100B+ in damage — and it’s not over. But last week, Ukrainian President Zelensky [met](https://www.nytimes.com/2022/09/19/business/zelensky-blackrock-reconstruction-fund.html) with __[BlackRock](https://robinhood.com/stocks/BLK/)__ CEO Larry Fink to discuss a reconstruction fund to attract public and private investment.

- __Donations won’t do it:__ So far, countries have pledged $83B+ in aid to Ukraine, but some analysts say rebuilding could cost as much as $750B. To encourage private investment, Ukraine’s offering entrepreneurs grants and no-interest loans.

Golden arches. Blue-and-yellow flags. (Yurii Stefanyak/Getty Images)

McRecovery

__Recovering from war takes a global effort…__ and McD’s and BlackRock aim to play a part. Ukraine’s economy is set to fall about 30% this year, but it didn’t collapse as Russia wanted: industry’s [rebounding](https://www.wsj.com/articles/ukraine-economy-stabilizes-military-gains-11663078436) and unemployment’s falling. Plus, the same countries and companies pushing Russia out of the global economy are pulling Ukraine in: creditors including the US government and BlackRock have agreed to freeze billions in debt to kick-start recovery.

McDonald’s reopens some restaurants in Ukraine, helping to kick off recovery talks as war rages on

__Grand Theft IP...__ Video-game titan __[Take-Two Interactive](https://robinhood.com/stocks/TTWO/)__ is feeling the heat as it suffers from one of the biggest [leaks](https://www.bloomberg.com/news/articles/2022-09-19/grand-theft-auto-vi-gta6-leak-is-a-shock-to-rockstar-games#xj4y7vzkg) in gaming history. Over the weekend a hacker posted 90 previously unreleased clips from Take-Two's highly anticipated "Grand Theft Auto VI," including new locations and characters. Yesterday Take-Two's stock dropped 3% before rebounding higher — but is still down almost 30% this year.

- __Pause:__ GTA's publisher, Rockstar Games, confirmed the leaked videos are real and is trying to stop their spread on sites like YouTube.
- __Play:__ "GTA V" is still one of the best-selling video games ever, despite being released nearly a decade ago. 

__Ready player none…__ Take-Two's GTA hack kicks the video-game biz (which is on pace for its first sales decline in seven years) while it's down. Cyberattacks on gaming companies and users have increased 167% over the past year, as hackers look for more ways to exploit the multibillion-dollar industry. Leaks could be just the start: in July hackers posted stolen documents from __[Roblox](https://robinhood.com/stocks/RBLX/)__ in an attempt to extort the biz.

__It’s hard to put the IP genie back in the bottle…__ Gaming companies are famous for keeping releases secret. While leaks can sometimes boost hype, they can also force developers (like Take-Two and Rockstar) to make changes to games and delay releases. And delays = lost $$. "GTA VI" is expected to earn $3.5B in bookings on its 2025 debut, and $2B a year after that.

Take-Two suffers one of the biggest leaks in video-game history, as hackers up the pressure

McDonald’s reopens restaurants in Ukraine, kicking off recovery talks as war rages on

Scientists estimate there are 20 quadrillion (that's 20,000 trillion) ants on Earth

🍟 Ukraine’s McRecovery

__“Buy now” is the easy part…__ It’s the “pay later” that gets tricky. Buy now, pay later companies help you sport that $400 __Aritzia__ coat now and pay for it *later* in monthly installments. BNPLs gained popularity by [positioning](https://snacks.robinhood.com/newsletters/68Ji759EUo3BnTZxw9mAj1/articles/4ged1i28lf9nr12iGW3oBC/) themselves as trendier credit-card alternatives for Gen Z — with fewer strings attached (think: no interest, just late fees). Now they’re facing serious heat, and they can’t deal with it later:

- __Regulated:__ Last week the Consumer Financial Protection Bureau [outlined](https://www.cnbc.com/2022/09/15/harvard-fellow-cfpb-crackdown-on-buy-now-pay-later-is-good-news.html) plans to regulate BNPL businesses like __Klarna__, __[Affirm](https://robinhood.com/stocks/AFRM/)__, __[PayPal](https://robinhood.com/stocks/PYPL/)__, and __[Block](https://robinhood.com/stocks/SQ/)__-owned Afterpay.
- __Risky business:__ Regulators said BNPLs pose risks to consumers because they lack protections, harvest data, and encourage over-borrowing. 
- __Credit rules:__ Officials plan to regulate BNPLs like credit-card companies, which means BNPLs may have to add pricey safeguards and do more credit checks.

__Boom earlier, crash later…__ BNPL giants thrived during the pandemic when interest rates were low and stimmy cash was flowing. BNPL loans jumped from $2B in 2019 to *$24B* last year (a 12X increase). But as the economy soured and IOUs increased, so did BNPL’s blues:

- __Gucci to grapes:__ Mid-pandemic, stimmy-flushed shoppers used BNPL for luxuries like __Balenciaga__ bags. Now 15% of BNPL users are “buying now, paying later” for gas and groceries. 
- __Missed payments:__ ’Flation-stressed folks are increasingly struggling to pay for necessities up front, and more BNPL users are racking up late fees — and failing to repay their loans.

A case of the BNPL blues (Daniel Harvey Gonzalez/Getty Images)

BNPL

__Pain now can mean gains later…__ BNPL’s looser-than-credit rules helped attract users. But now its lax policies are hurting the bottom line: despite soaring revenues, Affirm’s still unprofitable and Klarna’s losses tripled in the first half as bad debts mounted. Affirm shares are down 75% this year, while Klarna’s valuation dropped 85% in July. Now that BNPL staples face stricter rules (read: higher costs), it may be even more difficult for them to reach profitability short term. But regulation could help them reduce bad debt long term.

Regulators announce plans to crack down on BNPL giants, threatening their path to profits

__No Powell pause…__ aka: Pow-se. On Wednesday the Fed is expected to hike interest rates by a “jumbo” 75 basis points (or even 100) after August inflation came in [hotter](https://snacks.robinhood.com/newsletters/ZgP04cuwhMSae0wDNeDsj/) than expected. Though it slowed from July, inflation was still up 8.3% from last year. The spooky numbers sent stocks tumbling to their worst day in two years. Analysts expected better results since gas prices fell, but food and rent kept rising. Now investors predict even more pain from the Fed chair, who’s committed to fighting #flation with aggressive hikes.

__Up in smoke…__ Cannabis sales are sparking upward worldwide, but not all sellers are feeling the high. Last quarter, Canadian pot giant __[Aurora Cannabis](https://robinhood.com/stocks/ACB/)__ saw its revenue drop 8% while losses 5X’d as it struggled to cut costs. In the US, canna-fans are starting to trade down for cheaper greens as inflation kills the buzz. Shares of Canadian cana-rivals __[Tilray](https://robinhood.com/stocks/TLRY/)__ and __[Canopy](https://robinhood.com/stocks/CGC/)__ are down 50%+ this year as US legalization slows, while Aurora’s down 80%. We’ll see whether Aurora’s sales slumped (as analysts forecast) when it hashes out results tomorrow.

__The Merge went smoothly…__ but there could be bumps ahead. __[Ethereum](https://robinhood.com/crypto/ETH/)__ successfully shifted from proof of work (energy-guzzling) to proof of stake (efficient) last week, eliciting relieved cheers from crypto fans. Now investors can stake their ETH to earn yield (think: interest), creating added incentives for crypto titans and hedge funds to [hold](https://www.bloomberg.com/news/articles/2022-09-13/what-s-ethereum-eth-merge-proof-of-stake-differs-from-bitcoin-btc) ether. But there could be trouble ahead: ethereum devs are warning of post-Merge bugs, and the SEC said Thursday that a crypto that allows people to stake coins and earn yield might be a [security](https://www.wsj.com/articles/ethers-new-staking-model-could-draw-sec-attention-11663266224).

__Construction disruption…__ The pandemic housing boom has gone bust, and it could hit homebuilders hard. In July, new-home construction [fell](https://www.businessinsider.com/housing-market-outlook-downturn-bubble-home-values-dropping-2022-8#:~:text=In%20July%2C%20residential%20housing%20construction,affordable%20housing%20options%20for%20Americans.) 10% as soaring mortgage rates and high prices make homes less affordable. US home sales have [fallen](https://www.wsj.com/articles/existing-home-sales-prices-housing-market-july-2022-11660774574) for six months straight, and homebuilder confidence has [dropped](https://www.bloomberg.com/news/articles/2022-08-15/us-homebuilder-confidence-hits-worst-slump-since-2007-collapse) for eight months (the worst slump since 2007’s collapse). But homebuilding giants __[Lennar](https://robinhood.com/stocks/LEN/)__ and __[KB Home](https://robinhood.com/stocks/KBH/)__, both of whom report Wednesday, posted rising sales last quarter and upheld their growth forecasts. That could be because inventory’s still tight. 

- __[Photoshop](https://snacks.robinhood.com/newsletters/4DxKjaxcBBGxy0yyBuYx9F/articles/3pzeouzW81imZVi8xBUZR0/):__ __[Adobe](https://robinhood.com/stocks/ADBE/)__ agreed to buy design-software startup __Figma__ for $20B — its largest acquisition *by far*. Cue: Adobe stock had its worst day since 2010, as investors worry that it’s overpaying to quash competition.
- __[Searched](https://snacks.robinhood.com/newsletters/7KTQ2MUJHzWX25g9adlgVP/articles/1a0ZyqNit2YojO6QpTKXHl/):__ The EU ordered __[Google](https://robinhood.com/stocks/GOOGL/)__ to pay a record $4B after it lost its appeal to an Android-related antitrust ruling. Crackdowns abroad could increase pressure in the US, where tech regulation has stalled. 
- __[iCharge](https://snacks.robinhood.com/newsletters/3zk1PzoMK4g9MSqLIZcEPW/):__ __[Goldman Sachs’](https://robinhood.com/stocks/GS/)__ loss rate on __[Apple](https://robinhood.com/stocks/AAPL/)__ Card loans is the worst among major US credit-card issuers (read: problems with bad FICO scores). Banks with more subprime exposure would feel the hit of a recession first.

Buy now, pay never? Regulators aim to crack down on BNPL giants like Klarna and PayPal

The autumnal equinox — when day and night are the same length — will happen on September 22, marking the beginning of fall

🛍️ Buy now, pay never? Regulators aim to crack down on BNPL giants like Klarna and PayPal

__5 fits and a pair of combat boots…__ Chinese shopping app __Shein__ is [expanding](https://www.wsj.com/articles/fast-fashion-giant-shein-plans-more-u-s-distribution-centers-as-sales-climb-11663236002?mod=markets_featst_pos2) its US footprint as sales boom in its #1 market. The online-only retailer has thousands of trendy fits at ultralow prices (think: $10 wool pants). Shein was last valued at $100B, and in Q2 it surpassed __[Amazon](https://robinhood.com/stocks/amzn/)__ as America’s most downloaded shopping app. 

- __#Unboxed:__ Shein plans to open three new US distribution centers and hire 3K workers to get $5 tops to America’s teens.
- __#OOTD:__ Shein’s only US distributor opened in Indiana in April and is already forecast to generate $175M/year.

__Not-so-fast fashion…__ Social media has supercharged demand for new fits to fill the feed. But for all of Shein’s popularity, its shipment times have lagged fast-fashion standards. While rivals like Zara, __H&M__, and Amazon can deliver in two biz days, Shein packages can take up to two weeks (they all come from Asia). While ETAs haven’t dulled Shein’s shine, delays could be getting in the way of its next big venture:

- __High prices = low patience:__ Last year Shein launched a higher-end clothing line called MOTF (think: $100 silk dresses), but demand is soft because shoppers are less willing to splurge *and* wait 10 days for that bachelorette fit.
- __Zara-fication:__ While Shein moves large volumes, its revenue falls short of rivals’ because its items are so low-priced. Last year Zara earned $19.5B in sales while Shein reportedly brought in $16B.

Fashein haul (Cezaro De Luca/Getty Images)

OOTD

__The price must be right, but so does the time…__ To command higher prices, Shein can’t just be a fast-fashion brand — it has to be a fast-delivering fashion brand. By setting up shop where its top customers are, it can cut down delivery times by three to four days.

Fast-fashion staple Shein plans a US expansion to deliver faster to Gen Zers (and be more like Zara)

__Just went Photo-shopping…__ picked up a multibillion-dollar startup. __[Adobe](https://robinhood.com/stocks/ADBE/)__, the __[Microsoft](https://robinhood.com/stocks/MSFT/)__ of the creative world, agreed to buy design-software company __Figma__ for a cool $20B — its largest acquisition by far. Figma’s cloud-based software helps engineers and designers collab on web interfaces in real time (think: a digital whiteboard). Investors weren’t impressed:

- __Adobe shares tanked nearly 17%__ yesterday as investors frowned at the price tag. Figma was last valued at $10B in June 2021, and Adobe is paying double to scoop it. 
- __Figma is expected to generate $400M+__ in revenue this year, meaning that Adobe is paying a huge forward multiple of 50X revenue for the company. FYI: multiples for top cloud companies have plunged to about 9X revenue. 
- __Not helping…__ Adobe also issued disappointing fourth-quarter earnings guidance, though its profit jumped last quarter by 13% to $1.1B. 

__Doing some Acrobat(ics)…__ Adobe has snatched up companies, including Workfront ($1.5B) in 2020 and Frame.io ($1.3B) in 2021. Previously, its largest splurge was Marketo in 2018 ($4.7B). Now Adobe is making a purchase *four times* that size at a time when dealmaking has slowed big time. See: inflation, econ uncertainty, volatile markets. Adobe says Figma’s customers will expose it to a new user segment and a total addressable market of $16B.

Shop

__When under threat, you might overstretch…__ Adobe’s splurge may be more of a need-driven move than a smart buying opportunity. Figma competes toe to toe with Adobe’s XD program. Instead of sparring with it, Adobe’s eating it. Investors worry it’s overpaying out of desperation to quash competition, and yesterday the stock had its worst day since 2010.

Adobe agrees to buy rival Figma in its largest splurge ever, but investors aren’t loving the move

__🤖 Techy…__ The __[ethereum](https://robinhood.com/crypto/ETH/)__ [Merge](https://www.nytimes.com/2022/09/15/technology/merge-ethereum-crypto.html) succeeded, moving the chain from proof of work (energy hog) to proof of stake (efficient). The switch *also* means ETH holders can earn coins via staking, which incentivizes investors to [scoop up](https://www.bloomberg.com/news/articles/2022-09-13/what-s-ethereum-eth-merge-proof-of-stake-differs-from-bitcoin-btc) ether.

__🤔 Sus…__ South Korea [issued](https://www.wsj.com/livecoverage/stock-market-news-today-09-14-2022/card/manhunt-begins-for-terraform-labs-do-kwon-Ipunh3LaLLR09rnZEOaY) an arrest warrant Wednesday for Do Kwon, the founder of failed stablecoin TerraUSD. The coin went to near $0 in June — wiping out $42B of investors' money — and investors accused Kwon of fraud. 

__🤹‍♀️ Quirky…__ Out with Picasso, in with the punks. NYC’s MoMA plans to [sell](https://www.wsj.com/articles/70-million-in-art-at-moma-to-be-sold-to-extend-museums-digital-reach-11663117201) $70M worth of paintings and sculptures to fund a digital-art gallery (picture: framed NFTs). Renoir and Rodin will compete with Bored Apes.

Chinese fast-fashion staple Shein plans a US expansion to deliver faster to Gen Zers

Roger Federer, who on Tuesday announced his retirement from tennis, has won 20 major titles and $130M+ in career prizes

👗 Shein’s American dream

__Googling "how to delete apps"…__ Yesterday the European Union [ordered](https://www.cnn.com/2022/09/14/tech/google-loses-eu-fine-appeal/index.html) __[Google](https://robinhood.com/stocks/GOOGL/)__ to pay a massive $4B after the tech titan lost an appeal challenging an antitrust ruling. Back in 2018, the search giant was fined $5B over accusations it forced manufacturers to preinstall Google apps (think: Chrome, Search) on Android phones. FYI: about 70% of smartphones in Europe run on Google’s Android. 

- __Google vs. the EU:__ Over the past decade, Google's faced $8B+ in EU antitrust fines, including $2.4B last year for biased results on its Google Shopping platform.
- __Double whammy:__ Yesterday, South Korea’s privacy committee fined Google $50M and __[Meta](https://robinhood.com/stocks/META/)__ $22M for collecting user data for targeted ads.
- __FYI:__ Google has a $125B cash pile, so a $4B fine won’t make a huge dent — but the regulatory aftermath could force Google to change its profitable biz model. 

__The EU’s antitrust arsenal…__ is stacked. Earlier this year, EU policymakers approved laws aimed at regulating tech juggernauts. Under the Digital Markets Act, companies can be fined up to 10% of their global revenue for breaking the rules — and up to *20%* for repeat offenses. It could all add up for techies caught in the crosshairs: 

- __[Apple’s](https://robinhood.com/stocks/AAPL/)__ faced several EU antitrust charges, including over its refusal to let competitors like __[PayPal](https://robinhood.com/stocks/PYPL/)__ use its contactless payment tech. 
- __[Amazon’s](https://robinhood.com/stocks/AMZN/)__ been stuck in a three-year investigation over how it collects data from rival retailers and uses Prime to force sellers into its logistics biz.

Preinstalled problems (Pier Marco Tacca/Getty Images)

Crackdown

__“Hot Antitrust Summer” may be over…__ but a chilly antitrust fall may be dawning. Antitrust crackdowns abroad could push policymakers to increase pressure in the US, where tech regulation has largely stalled. It’s already starting: yesterday California regulators [sued](https://www.wsj.com/articles/california-sues-amazon-for-alleged-antitrust-violations-that-inflated-prices-stifled-competition-11663178985) Amazon, alleging it prevents merchants from offering lower prices through competitors’ sites.

Google gets slapped with a record $4B EU antitrust fine — and other big techies could be next

__It’s BB szn…__ Big businesses are buying back shares by the boatload. This past week, __[Comcast](https://robinhood.com/stocks/CMCSA/)__, __[Johnson & Johnson](https://robinhood.com/stocks/JNJ/)__, __[T-Mobile](https://robinhood.com/stocks/TMUS/)__, __[UBS](https://robinhood.com/stocks/UBS/)__, and __[Starbucks](https://robinhood.com/stocks/SBUX/)__ all [announced](https://ca.finance.yahoo.com/news/comcast-doubles-share-buyback-program-121615546.html) plans to buy back billions worth of their own shares. Refresher: Some companies regularly buy back shares to boost prices and reward investors (think: fewer available shares + similar earnings = higher earnings per share). Two reasons for the buyback bonanza:

- __Bargain prices:__ Because stocks have plunged this year, it’s (relatively) cheaper for companies to splurge on their stock.
- __Extra fees incoming:__ President Biden’s Inflation Reduction Act will impose a 1% tax on buybacks from large corporations beginning next year. 

__Buyback brouhaha…__ Buybacks have [boomed](https://www.cnbc.com/2022/08/19/what-stock-buybacks-are-and-how-a-new-tax-affects-your-portfolio.html) in recent years. In the first quarter of this year, S&P 500 buybacks hit a record $281B (though the index itself had its worst performance in years). Biden’s 1% tax is projected to raise $74B in the next decade, but critics say the tax will reduce investment and innovation and hurt investors. Over the past 20 years, big buybackers have outperformed others by 60%.

ByeBack

__The big buyback era probably isn’t ending…__ because the benefits still outweigh the costs. Experts say buybacks are unlikely to disappear, since a tax would have to be 10% to persuade companies to ditch buybacks altogether. Apple, Alphabet, Meta, __[Microsoft](https://robinhood.com/stocks/MSFT/)__, and __[Bank of America](https://robinhood.com/stocks/BAC/)__ — the “buyback monsters” — accounted for 25% of all buybacks in the past year, and they’re likely to keep splurging on themselves.

Businesses are buying back their shares by the billions before a new tax hits buyback boosts

The EU dealt Google a record $4B antitrust fine, and other big techies could be next

Starbucks’ cold coffee drinks now account for 60% of all orders year-round

☎️ Google’s $4B anti-fine

__Seeing red…__ Stocks had a no good, very bad day after August inflation numbers came in hotter than expected. Lower gas prices helped slow the pace of inflation for a second straight month, but the TL;DR is that it’s still ridiculously high, with consumer prices up 8.3% from last year. 

- __Why does $5/gallon sound cheap?__ Energy prices fell 5%, with gas down 10.6%. But while pump and airfare prices were lower, utility and electric bills ticked up. 
- __Why is this croissant $9?__ Food prices were up nearly 0.8% month over month, with cereal and bakery products up 1.2%. 
- __Why is rent my entire paycheck?__ “Shelter” prices rose 0.7% over the month as housing gets even pricier. FYI: The median monthly rent in America’s 50 largest cities hit a record [$1.9K](https://www.forbes.com/sites/jonathanponciano/2022/09/13/inflation-climbed-83-in-august-slowing-for-second-month-straight-as-gas-prices-plunged/?sh=691a378d66c5) in July as prices increased for 16 months straight. 

__No rest for JPow…__ Before this bummer report dropped, investors were gaining confidence that inflation could be slowing for real (which could compel the Fed to cool its ’flation-fighting crusade). Now there’s a lower chance of a Powell pause (aka: a Pow-se). 

- __It’s likely the Fed’ll raise rates__ by 75 basis points at its meeting next week, instead of the 50 basis points some were hoping for. 
- __To tamp inflation__ to a benchmark target of 2%, the Fed’s already had four hikes this year — including two jumbo hikes of 75 basis points in June and July.
- __Tech stocks have been hit hard,__ as high rates lower the potential future earnings of companies whose valuations are largely tied to growth… potential.

We already “be inflation” (Patrick T. Fallon/Getty Images)

Grinch

__Inflation’s a Grinch…__ The holidays are months away, but more than half of Americans are already [stressed](https://www.cnbc.com/2022/09/08/inflation-fears-spur-shoppers-to-get-early-jump-on-year-end-holidays.html#:~:text=More%20than%20half%20%E2%80%94%20or%2059,prices%2C%20another%20recent%20survey%20said.&text=Many%20consumers%20are%20also%20getting%20a%20head%20start%20as%20a%20result.) about buying gifts this season. While ’flation erodes spending power, rate hikes make borrowing pricier (think: credit-card debt). That could put a dent in major retailers’ biggest splurge season of the year. 

After August inflation came in too hot, investors aren’t expecting a Powell pause anytime soon

__Zoom sweats > Gucci-blazer rental…__ __[Rent the Runway](https://robinhood.com/stocks/RENT/)__ is falling out of fashion as more users ditch designer rentals. RTR offers clothes from 800+ designers for one-time rental, monthly membership, and discounted purchase. Last quarter the “shared closet” biz notched record revenue of $76M and shrank its quarterly loss from last year. But that didn’t keep the [stock](https://robinhood.com/stocks/RENT/) from tanking nearly 40% yesterday. 

- __Torn seams:__ Last quarter, Rent the Runway's active subscribers dropped 8% to 124K as penny-pinching fashionistas paused (or ended) their memberships. 
- __Cloudy forecast:__ RTR lowered its sales expectations for the year and said it planned to lay off a quarter of its 1K+ employees to cut costs.

__Hangin’ by a thread…__ As consumer prices skyrocket, even trendsetters are cutting back on discretionary buys (think: new $2K Moncler puffer). Thanks to the rise of hybrid work, the number of Americans wearing business-formal fits has dropped by half since prepandemic. For companies like RTR that means shifting inventory to include more casual and social fits.

- __Only 20% of RTR subscribers__ looked for work-related rentals during the first half of the year, down from nearly 35% in 2019.

Thread

__Past performance ≠ future results…__ Despite RTR’s record quarter, investors tanked the stock because they’re always looking to the future, and the future may not look as bright for retailers. Instead of splurging on new styles every season, consumers are saving by buying fewer outfits that are good for lots of occasions. That shift in shopping patterns is starting to squeeze results for retailers like __[Target](https://robinhood.com/stocks/TGT/)__ and __[Amazon](https://robinhood.com/stocks/AMZN/)__.

Rent the Runway cuts a quarter of its staff as the “hybrid wardrobe” dashes demand for seasonal fits

Streaming of Netflix’s “The Crown” has surged 9X since Queen Elizabeth II died

🤢 The inflation Grinch

__Charging the iPhone to my [Apple](https://robinhood.com/stocks/AAPL/) Card...__ seamless. Paying it off on time: not so much. __[Goldman Sachs’](https://robinhood.com/stocks/GS/)__ Apple Card biz has a bad-credit problem, [according](https://www.cnbc.com/2022/09/12/goldmans-gs-apple-card-business-has-a-surprising-subprime-problem.html) to competitor __[JPMorgan](https://robinhood.com/stocks/JPM/)__. In 2019 the investment-banking giant triumphed over established card companies to become Apple's card issuer. The sleek no-fee card generated hype, with early users posting pics of their names etched in Apple titanium. Some expressed shock they'd been approved. Now we know why:

- __Credit karma:__ Over a quarter of Goldman’s card loans have gone to customers with credit scores under 660 (aka: fair to poor).
- __The WOAT:__ Goldman’s loss rate on credit-card loans is the worst among major US card issuers and “well above subprime lenders," JPM said. 
- __The GOAT:__ Thanks to pandemic stimulus and rising wages, rivals like __[Bank of America](https://robinhood.com/stocks/BAC/)__ have seen repayments rise near record levels.

__DJ D-Sol in the hot seat...__ Goldman CEO David Solomon, who moonlights as an [EDM DJ](https://nypost.com/2022/03/22/goldman-sachs-ceo-david-dj-d-sol-solomon-playing-at-lollapalooza/), is under pressure to produce profits at Goldman's consumer-facing biz (which makes up 18% of its total revenue). The Wall Street-centric bank expanded to consumers in 2016 with its high-yield Marcus savings account. Then Apple Card supercharged its retail reach. Now:

- __Growing revenue:__ Goldman's consumer-banking biz grew revenue 25% last quarter, with 14M customers and $16B in loan balances.
- __Growing losses:__ The consumer division is on track to lose $1.2B this year, and Goldman has been forced to set aside more reserves in case of future loan losses.

The IOUs are racking up (Michael Short/Getty Images)

__Cracks emerge in a downturn…__ and they could cause a quake. With inflation at a 40-year high and unemployment ticking up, the weakest American borrowers are starting to miss loan payments. 
Goldman execs have acknowledged that its consumer biz could lose even more than $1.2B if a deep recession forces them to set aside more $$ for defaulted loans. Banks with more subprime exposure will feel the hit first.

Goldman’s Apple Card biz has a shockingly high loss rate on credit card loans — and it could get worse

__Enter the Mocha-verse…__ Cold brew’s coming to the blockchain. Yesterday __[Starbucks](https://robinhood.com/stocks/SBUX/)__ [introduced](https://techcrunch.com/2022/09/12/starbucks-unveils-its-blockchain-based-loyalty-platform-and-nft-community-starbucks-odyssey/) a loyalty program powered by non-fungible tokens called “Starbucks Odyssey.” Odyssey will be powered by __[Polygon](https://robinhood.com/crypto/MATIC/)__, a proof-of-stake "sidechain" that aims to make __[ethereum](https://robinhood.com/crypto/ETH/)__ transactions cheaper and faster. Polygon’s native token, matic, jumped 5% on the Starbs news.

- __A journey:__ Odyssey will extend Starbs’ popular rewards program, enabling latte lovers to earn NFTs (called “stamps”) by completing “journeys.” Think: java-inspired games.
- __Peppier perks:__ Users can redeem stamps for exclusive experiences like virtual espresso-martini-making classes and trips to Costa Rican coffee farms. 
- __Brewing up community:__ Odyssey users can also buy and sell limited-edition stamps.

__Spill the NFTea…__ Last year NFT sales boomed with high crypto prices. But since then the NFT industry has struggled: 

- __Trading volume__ on top NFT marketplace __OpenSea__ has plunged 99% from its May peak. An NFT of __[Twitter](https://robinhood.com/stocks/TWTR/)__ founder Jack Dorsey’s first-ever tweet recently got a top bid of $280 (not a typo) — after selling for *$2.9M* last year.
- __Getting practical:__ As sales have slumped, some companies have rolled out “practical” NFT applications: __Ticketmaster__ uses them to verify tickets and prevent resale scams, and __[eBay’s](https://robinhood.com/stocks/EBAY/)__ embraced them to authenticate its goods.

NFTea

__Loyal customers make it easier to innovate…__ After Starbucks combined its existing payment system with new mobile-ordering tech in 2015, loyal latte-sippers happily adopted the tech to earn rewards — and made Starbucks the top mobile payment platform (it’s now second to __[Apple](https://robinhood.com/stocks/AAPL/)__ Pay, with 31M users). Starbs could become a top player in web3's tokenized future, if customers embrace its new NFT features.

Starbucks launches NFT-powered rewards, leveraging loyal sippers to enter web3

Goldman’s Apple Card biz has a shockingly high loss rate on loans — and it could get worse

The Strategic Petroleum Reserve is at its lowest level since 1984 after President Biden tapped it to boost gas supplies