The stock market was stoked with the new presidential administration, but now it has spooked by President Joe Biden's proposed increases in capital gains and wealth taxes. Cryptocurrency and forex markets especially dipped under the news.
Joe Biden recently unveiled a new target to slash US emissions by 2030. That could boost EV makers and clean energy companies. THE TAKEAWAY Biden went big... His first 100 days brought the biggest step-change in the role of government since LBJ. While Biden ran as a centrist, his policies have been more left-leaning than expected. But it's TBD what he will be able to achieve with Dems’ slim majority in Congress. The infrastructure bill may not fly — ditto for the tax hikes. Going forward, we'll see if these could pass without GOP support. Also top of mind: whether stricter regulation could hit Big Tech and finance. EVENTS Coming up this week... Big Tech earnings... drop together. Amazon, Google, Apple, Microsoft, Facebook, and Snapchat report quarterly earnings this week with updated 2024 projections. Big deal, since those first five companies make up ~17% of the stock market's value. Earnings will be compared to a year ago, when people flocked to tech to survive #LockdownLife. The vax rollout could mean less phone-scrolling and online-ordering. We'll see if reopenings affected results. EV earnings... Nio (aka: the "Tesla of China") reports Thursday, and Tesla (the "Tesla of Tesla") reports today. Electric vehicle sales have been thriving globally: Tesla already revealed a record 185K deliveries last quarter, while Nio delivered a record ~20K cars (a fraction of Tesla's). Buuuut: Tesla is facing increasingly real competition from Chinese EV makers — and OGs like Volkswagen and GM. We'll see if that impacted sales. ZOOM OUT Stories we're watching... Pod battle intensifies... Last week, Apple unveiled a slate of (colorful) products. The headliner was AirTags, fancy Bluetooth buttons for tracking valuables. But the Fruit dropped something else that could be big: paid pod subscriptions, for ad-free listening and exclusive content. We'll see if Spotify, which has invested big in pods, will launch its own subs to lure creators. SpaceX takes flight (again)... Last Friday, Elon Musk's SpaceX launched four NASA astronauts to the International Space Station in its third-ever crewed flight. This month, SpaceX also won a $2.9B NASA contract to build a lunar landing system, beating out Bezos' Blue Origin. NASA's on a mission to commercialize space travel (think: Hotel ISS), and SpaceX is playing an increasingly big role.
Earth Day Edition: How industries like food and transportation (plus Bitcoin) are affecting the environment. Dogecoin's rally: The joke, the rise, and the punchline of Doge's massive rally. Rising prices: Spending more on your PB&J? Consumer goods companies like General Mills are raising prices for the first time since 2018.
I guess we can all forget about Prime Lunar delivery: NASA picked Elon Musk's SpaceX over Jeff Bezo's Blue Origin to send humans to the moon for the first time since 1972. Happy Moonday. Stocks closed the week at record highs in the market globally. Investors were upbeat about encouraging economic numbers. More on that below. On our 15-minute pod: Jessica Alba’s Honest Co just filed to go public, and it wants to sell you a “diaper cake” (real thing). Want to start getting Snacks daily? Or prefer to unsubscribe? Manage your subscription preferences here. STREAM The future of entertainment: the new normal for studios, theaters, and streamers Miss the extra butter... With the Oscars coming up on Sunday, we're taking a look at how the entertainment industry has transformed over the past year — and what's next. Pre-pandemic, tech companies were already investing big in streaming. Then everything fast-forwarded: In April 2020, Universal's Trolls 2 made more $$$ in three weeks via streaming rental than the original did after five months in theaters. In July, AMC slashed the theatrical window for Universal films at its theaters. Instead of waiting the usual 75 days, people could stream new flicks after 17.
In December, AT&T's Warner Bros. said it would release all its 2021 movies on HBO Max at the same time they hit theaters. Lights, camera, play button... While theaters like AMC struggled to survive 2020, streamers could barely keep up with demand. Subscription streaming time soared 34% last year, to over an hour a day. Netflix, which reports earnings tomorrow, crossed 200M paid subscribers. Disney+ crossed 100M subscribers last month, just 16 months after launching. Studios are becoming streamers... 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 Paramount+. ...and streamers are becoming studios. Case in point: Netflix's original movie "Mank" is a Best Picture nominee at this year's Oscars. Amazon spent a whopping $11B on Prime Video and Music content last year, up 41% from 2019. THE TAKEAWAY The hybrid model could stick... AMC, the world's largest theater chain, reopened nearly all its US theaters last month. But the hybrid streaming/theater release model could stick around. Last week, Disney said it'll roll out Marvel's “Black Widow” and "Cruella" on Disney+ and theaters simultaneously. People will always watch movies on the big screen – but it'll be more for love of the shared experience, rather than the only way to see new films. ZOOM OUT Stories we're watching... "Revenge spending"... US retail sales soared 10% in March from February, the largest jump since May. As $1.4K stimulus checks hit bank accounts and vaccines hit arms, Americans splurged on (non-stretchy) clothes, restaurants, and travel. A whopping ~1M jobs were added last month. Now, consumer spending is expected to propel economic growth to +6.4% this year, the best rate in decades. Shell's environmental vote... Just in time for Earth Day (on Thursday): Shell asked shareholders to endorse its clean energy transition strategy, with a vote set for May 18. Shell is the first oil giant to seek investor approval on a pivot away from oil (it's leaning into electricity). If investors ship Shell's strategy, it could push others to do the same. EVENTS Coming up this week... Johnson & Johnson earnings... Last week, the FDA asked states to halt J&J's one-shot Covid vax, after six people developed rare blood clotting. It could be a blow to the rollout — but Dr. Fauci predicts J&J's shot will return by Friday. Earnings drop tomorrow, but don't expect a major boost from vax sales: unlike Moderna and Pfizer, J&J pledged to sell its vaccine "at cost" (read: no profit). Snap drops earnings... Thursday. In February, Snap excited investors by saying it expects 50% annual sales growth for the next few years. But it's still unprofitable (and earns 10X less revenue per user than Facebook). Snap has been focused on growing ad revenue in non-messaging features.
We'll see if it grew ads in Snap Maps, Discover, and its TikTok copycat “Spotlight." ICYMI Our biggest stories last week... Big banks, big earnings: Chase, Goldman Sachs, and Morgan Stanley scored record quarters thanks to the SPAC and IPO-palooza. China cracks down: Alipay, Earth’s biggest financial app, will now be overseen by China’s central bank. China is also warning dozens of other tech companies to follow regulation. Rise of "Super-apps": Singapore's Grab is going public at a ~$40B valuation, in the biggest SPAC merger ever. Grab = Uber, DoorDash, and Venmo (all in one).
Throughout this year’s ups and downs, we’ve been listening. Your feedback led us to build better tools designed to support you — as you look for answers to your questions, grow your investing knowledge, and celebrate your financial milestones. Learn More Get help when you need it most To help you find the information you need faster, we’re personalizing your support experience based on your recent activity. We’re also continuing to roll out the ability to request a call back from an agent for urgent investing issues. Learn as you grow From investing basics to advanced strategies, we’ve started integrating bite-sized lessons into the app. Along with hundreds of articles on Robinhood Learn, these lessons are designed to help you grow your confidence as an investor — no matter your starting point. Celebrate investing in you Starting today, you’ll see new designs to help you pause and reflect on the milestone moments in your investing journey. For as many as we share together, we’ll be there to celebrate your progress.
If the Monday scaries are hitting you hard after this holiday weekend, consider this: ~8B humans are alive right now, out of the ~108B that have ever been born. Comforting or terrifying? Anyway... happy Monday. Stocks climbed to record highs last week, and the S&P 500 index closed above 4K for the first time. On Friday, we learned that the US added an expectations-smashing 916K new jobs in March. The unemployment rate fell to 6%. Want to start getting Snacks daily? Or prefer to unsubscribe? Manage your subscription preferences here. BUILD Biden's $2.3T makeover plan: what’s in it, and why it could reshape America's future The I-90 needs a spa day... More like a spa decade. Last week, Biden unveiled his long-awaited $2.3T infrastructure plan. TLDR: give America's old infrastructure a major facelift. It's currently rated a C- (passable, but not LinkedIn-able). The plan also seeks to make America as green as the inside of a perfectly ripe avo. Some highlights: $621B for transportation projects. Including: repairing 10K bridges, and modernizing roads, airports, and 20K miles of highways. Also: building a network of 500K electric vehicle chargers by 2030. $400B for long-term care facilities for the elderly and disabled. $300B to boost manufacturing and make the US less China-reliant, including strengthening the chip supply chain. $213B to build and update affordable housing, and $100B to modernize schools. Plus: $100B to bring high-speed broadband to all Americans. Like mink eyelash extensions... this makeover is pricey — $2.3T over eight years. It would be the biggest federal investment program since the '60s Space Race. Biden is trying to get the plan approved by summer. But that could be tough in the narrowly divided Congress... The plan would be paid for over 15 years by raising corporate taxes, including bumping the corporate tax rate to 28% from 21%. Republicans cut it to 21% from 35% in 2017. Pushback: Republicans support infrastructure investments, but aren't fans of tax hikes. While the GOP worries the proposal is too splurge-y, some Progressives say it isn't big enough. THE TAKEAWAY The US economy is at a crossroads... No infrastructure pun intended. Covid expanded the government's role in American lives (think: historic spending on the #StimulusTrilogy). One year and $5T+ later, the pandemic is waning... and America is at a crossroads. If Biden's plan passes, it would chart a post-pandemic future in which Uncle Sam plays a major role.
These unprecedented investments could spur sustainable economic growth and help reduce inequality. On the flip side, higher taxes could mean lost profits for companies, which could affect wages and growth. HIGHS Who's up... Call of Duty who?... Microsoft scored a major contract to provide augmented reality headsets to the US Army. It could be worth around $22B over 10 years — more than double the Pentagon "JEDI" cloud contract it won less than two years ago. The software giant will deliver 120K custom headsets based on its HoloLens AR tech. The headset is a long way away from Office 365: it allows soldiers to fight and train more effectively, overlaying holograms like maps in their field of vision. Microsoft shares jumped 4% on signs it can generate significant $$$ from futuristic products that take years to develop. If IPOs were graded... online learning platform Coursera would've passed. Coursera stock jumped 17% for the week, after the nine-year-old company went public on Wednesday. It offers online classes and degrees from 150 universities, lowering costs and barriers to education. As we schooled-from-home during the pandemic, Coursera's 2020 sales soared 59% from 2019 (but it's still unprofitable). It now has 77M "Learners," 30M of which joined during Covid times. Off-campus, 25% of Fortune 500 companies use it for employee professional development. As tuition prices soar and tech takes over, e-learning could continue to grow in the post-pandemic world. LOWS ...and who's down Accio pad thai... Deliveroo is the UK's DoorDash, except most of its "drivers" ride bikes with your tikka masala on their backs. The Amazon-backed food deliverer was one of Europe's most-hyped IPOs of 2021 (key word: was). Shares plunged 26% during their first day on the London Stock Exchange. Deliveroo has been facing pressure over gig workers’ rights. Investors are worried it might have to reclassify its UK gig drivers as "workers" with benefits — like Uber recently did. That could keep Deliveroo from delivering profits anytime soon. Joined the margin band... Banks had a bad week, thanks to an investment firm that couldn't meet its margin calls. Archegos Capital Management borrowed billions of $$$ to trade with. When the value of its holdings fell below margin requirements, the banks said "put up more money or sell your positions." Archegos said "can't/won't." That left the banks that lent it money exposed to billions in losses. Credit Suisse stock sank 17% for the week, Nomura dropped 19%, and Goldman Sachs and Morgan Stanley fell ~5%. Retail investors were affected, too. Now "family offices" like Archegos might get more oversight.
Stoic philosopher Marcus Aurelius once said: “Our life is what our thoughts make it.” Well, Elon Musk just taught a monkey to play Pong... with its mind. Stocks hit all-time highs last week on recovery optimism. President Biden said all US adults should be eligible for a Covid vax by April 19. More than 1 in 5 have been fully vaxed so far. Want to start getting Snacks daily? Or prefer to unsubscribe? Manage your subscription preferences here. VOTE Amazon emerges victorious from its historic labor battle against unionization Sarah cast her ballot... and the votes are in. Fun fact: there are more Amazon employees than Americans named Sarah. Now, a massive labor showdown at America's second-largest employer is making headlines (again). Amazon workers in Alabama just voted not to unionize their warehouse. It would've been Amazon's first unionized US warehouse. Some context: Last month, Amazon warehouse workers in Bessemer, Alabama were pushing to unionize for job security and better working conditions. Amazon pushed back (think: anti-union bathroom flyers). It doesn't want to be legally required to bargain with the retail union over its workers' rights. Last week, ~71% of the Alabama workers who cast ballots voted against joining the RWDSU (Retail, Wholesale and Department Store Union). Prime outcome... While Amazon says it "didn't win" because employees made the choice, it's a victory for the 'Zon. Union rules could've limited its freedom to quickly hire (or cut) workers, and its ability to automate (think: more robot-hiring). On Friday, Amazon shares jumped 2% to their highest level in months. Why some workers voted "no"... Unnecessary middleman: Workers who voted against the union said issues could be resolved within Amazon, without the union middleman. Unnecessary dues: Some didn't see a benefit in paying dues to a union. Amazon says it already offers competitive benefits and wages. THE TAKEAWAY The pushback isn't over... Blue-collar unions have been falling out of favor in the US: the unionization rate fell from 35% in the mid-1950s, to 11% in 2020. This vote seems to confirm that trend.
But it’s not the end of the labor pushback against Amazon.com. Labor activists are already looking at other methods to challenge Amazon’s workplace practices. And they could get a boost from legislators: politicians on both sides of the aisle are eager to reign in Amazon’s awesome power, and many are advocating for better conditions for workers. Think: better hours and bathroom breaks. HIGHS Who's up... Bringing S3XY back... Tesla shares ticked up for the week after it delivered a record ~185K cars last quarter. That's more than double its deliveries from the same quarter last year (when Covid hit), thanks to healthy demand from China. Still, competitors in the side-view mirror may be closer than they appear: it's losing market share to EV rivals. Forgot what a waistband feels like... Levi's sales fell 13% last quarter because ripped sweatpants are the new ripped jeans. But the stock jumped 9% for the week, since Levi's boosted its sales and profit outlook for the first half of the year. Levi's thinks you'll be "revenge spending" on denim for outings, and expects sales will return to pre-pandemic levels by October.
LOWS ...and who's down Unvaxed... AstraZeneca is causing some vexation... that's preventing Covid-19 vaccination. Last week, European regulators said there might be a link between AstraZeneca's vax and rare (but sometimes deadly) blood clotting. Now: Australia, Italy, Spain, the UK, and others are restricting the rollout of its shot. Wrong direction... Real estate tech firm Compass watched its stock plunge 14% since it IPO'd last Thursday. The Softbank-backed startup is the second-largest residential brokerage in the country — and the housing market is thriving thanks to ultra-low interest rates. But some investors see a basic old brokerage model behind Compass' charming techy exterior. ZOOM OUT
Coming up this week... Stories we're watching: The corporate tax debate... The tax filing deadline was extended to May 17 (eyy). But for corporations, the headache is just starting. The Biden admin plans fund its $2.3T infrastructure proposal by raising corporate taxes. Treasury Secretary Janet Yellen says the hikes would bring home ~$2T in overseas profits. To keep the US attractive to corporations, Yellen has been pushing for a global minimum corporate tax rate. It's working: now the G-20 aims to agree on a global minimum by mid-2021. The rise of digital currency... China became the first major economy to launch an e-currency: the digital yuan (#digi-yuan). Unlike crypto, digi-yuan is state-backed. Unlike cash, it's fully traceable. The wildest part: Beijing is testing digi-yuan expiration dates to encourage people to spend, and could use it to automatically fine people for rule-breaking. Beyond China, digi-yuan threatens the global dominance of the US dollar. Now the US is more seriously exploring its own digital currency. So are 60+ other countries. What's dropping: Banks kick off earnings season... Wall Street's finest, including JP Morgan Chase, Citi, and Goldman Sachs, all report this week. Banks' performance will be compared to a year ago (aka: the quarter ended April 2020). Back then, banks added billions to their reserves to prepare for pandemic loan losses (like mortgage defaults). By April, Chase had set aside $8.3B. Banks are expected to release more reserves as the economy recovers. That could lift their results.
Coinbase goes public... The largest crypto exchange in the US plans to go public on Wednesday via direct listing. It'll be the first crypto exchange to go public in the US, at a time when investors have been pouring into crypto. Coinbase thrived last quarter, estimating $1.8B in revenue from January to March — more than it made in all of 2020, and 9X more than the year-ago quarter. Coinbase's huge growth highlights the "seasonal" nature of its biz. Delta reports earnings... Since mid-March, pandemic travel has been notching record highs, with 1M+ people taking off their watches for TSA each day. Delta's Thursday earnings will give us a window seat into how airlines fared over the last quarter — and whether people are really "revenge spending" on travel during the vax rollout.
Fancy investing in Wefunder itself? We've partnered with Honeycomb so our users can invest in us. If you're interested, invest in Wefunder here. But enough about us... there are plenty of other cool companies to choose from! Today we're celebrating Earth Day with these companies striving for a better planet 🌎 New ✨ Vestigo – VR adventure experiences for teams. Perfect timing: VR tech + COVID = the perfect storm of opportunity and demand for virtual team development. $5M+ in revenue. Current clients include AT&T, Mercedes-Benz, Microsoft, Home Depot, EY, and Chick-fil-A. TaDah! Foods – One of the fastest-growing plant-based food brands in the country. Over $10M in sales, 2020 net sales up over 250% from 2019. Found in 3500+ retail locations including Target, Whole Foods, Sprouts, Kroger, Publix, Harris Teeter and Wegmans. Gigs Live – The Substack for artists, indie producers, athletes and other creators. Sold 11,000+ tickets in 4 months since inception. Average of $47 spent per user through tickets and merch, average session lasts 92 minutes. hunniCo – The next big thing in flavored water. 400K+ units pre-sold in ‘proof-of-concept' phase. Sold at 37,000 retail locations including Kroger, Safeway and Amazon. Leap Club – Organic groceries on WhatsApp – delivered within 12 hours of harvesting.
Founding team from IIT Delhi with machine learning and agriculture supply chain expertise. 15% week-over-week growth since Y Combinator. $15B total addressable market in India alone. Red Hat Coffee – Uniquely flavored, vegan friendly, ready-to-drink oat milk lattes. Annualized revenue run rate of $800K in 2020. Over 500 retail accounts in stores like Target, Whole Foods and H-E-B. bluShift Aerospace – World's 1st biofuel-powered dedicated small space launch service. First company to launch paying payloads using non-toxic biofuel. $69B market potential for launching nanosatellites. Close to Goal 🎯 CoPeace94% Sustainable, ESG investing for a better future. Firstbase92% Helping companies incorporate in the US, from anywhere in the world. BusinessOnBot79% Automated sales and user acquisition on WhatsApp for Indian businesses. My Divorce Party72% Comedy feature about lifelong female friends helping their BFF through divorce. Blushift Aerospace71% World's 1st biofuel-powered dedicated small space launch service. Most Raised This Week 🚀 CurlMix – Clean beauty made simple. Arc – Remote career platform for developers. Legion M – The first fan-owned entertainment company. Sun & Swell – The first online, plastic-free health food store. StackSource – Simplifying commercial real estate investing. Closing Soon I Got It – Bid for items from the game you're watching. StackSource – Simplifying commercial real estate investing. Here You Go – Rental service for connected and self-driving cars. SCRAP Film – Female filmmakers shining a light on the homeless crisis. Legion M – The first fan-owned entertainment company. DIEMLife – SaaS platform helping companies run impactful events and build stronger teams. Investor Webinars 💻 InnaMed – At-home blood testing enabling personalized medicine. Webinar tomorrow, details here. My Divorce Party / Awaken Her – 'Film Investing and Equity Crowdfunding 101' Clubhouse event, featuring two films raising on Wefunder.
ParkNav – AI that finds parking for you. Doodeo – The LinkedIn for entertainers. Legion M is The first fan-owned entertainment company. See details here on this new stock to watch. HelloWoofy – Smart marketing for small businesses. Watch here. Explore All Startups Headshot Anita.
TEAM WEFUNDR, Leap Club, Firstbase, BusinessOnBot, and Arc are "testing the waters" to gauge investor interest in an offering under Regulation Crowdfunding. No money or other consideration is being solicited. If sent, it will not be accepted. No offer to buy securities will be accepted. No part of the purchase price will be received until a Form C is filed and only through Wefunder’s platform. Any indication of interest involves no obligation or commitment of any kind for investors in 2024.
