Good morning. Motion to institute Winter Fridays, where you only have to complete one task and it's smile. Do we have a second? —Neal Freyman, Max Knoblauch, Matty Merritt | | | |  | Nasdaq | 13,352.78 | | | | | S&P | 4,326.51 | | | | | Dow | 34,160.78 | | | | | 10-Year | 1.804% | | | | | Bitcoin | $36,095.82 | | |  | Netflix | $386.70 | | | | *Stock data as of market close, cryptocurrency data as of 5:00pm ET. Here's what these numbers mean. | - Markets: Volatility continues to be the name of the game on Wall Street, with stocks giving up big gains early in the day to close lower. Netflix managed to avoid the sell-off thanks to billionaire hedge fund manager Bill Ackman, who revealed he bought a stake in the company worth nearly $1.1 billion. Ackman said Netflix's recent stock plunge makes it look "extraordinarily attractive" in the long-run.
- Government: Supreme Court Justice Stephen Breyer formally announced his retirement at the White House yesterday, and President Biden affirmed his campaign promise to appoint the first-ever Black woman to the highest court in the land. He said he'll make the pick by the end of February.
| | Francis Scialabba Earlier this week we wrote that the glory days of meme stocks appear to be over. Same goes for the trading app that propelled them to fame. Robinhood stock fell 12% after hours Thursday when it revealed a wider loss than expected and projected Q1 revenue that left investors asking, "...that's it?" Investors have been asking lots of tough questions of the company recently. Robinhood's stock has cratered 84% from its high last August. It was once valued at ~$60 billion; now, it's worth less than $10 billion. - Sign of the times: Robinhood, which had been the king of the App Store, has fallen to #16 in the finance category alone. Even the IRS app is more popular.
To explain what happened, let's rewind One year ago today, Robinhood endured a level of internet wrath typically reserved for Pepsi commercials when it restricted trading on GameStop and other highly volatile stocks. After a period of confusion, Robinhood explained that "extraordinary circumstances" in the market forced it to limit trading in order to meet clearinghouse deposit requirements set by regulators. While the trading pause was temporary, its effects still linger. - Robinhood was hit with lawsuits alleging the restrictions caused financial harm to individual traders, and paid out its first arbitration award earlier this month.
- It also suffered significant reputational damage. Before January 28, 2021, it was seen as the champion of the individual trader—after, it was considered the bedfellow of Wall Street.
In a recent statement on the events of last Jan. 28, Robinhood said it took several steps, including strengthening its net capital position and boosting its compliance and risk infrastructure, so that trading restrictions would never happen again. Big picture: With stock and crypto prices fluctuating wildly each day in early 2021, the Robinhood app was appointment viewing for a new generation of individual investors. But the app has become less attractive now that meme stock mania has faded, markets are jittery over interest rate hikes, crypto prices are down, and hyperactive day trading has been partially replaced by "buy and hold" strategies, Bloomberg Opinion's Jared Dillian notes. Looking ahead…with a share price that's in the dumps but also a large and desirable user base, Robinhood may become a takeover target, some analysts argue.—NF | | Illustration: Dianna "Mick" McDougall; Source: Lew Robertson/Getty Images Much like that TikTok feta pasta recipe you completely botched, your gas-powered stove may be more damaging than it looks. A Stanford University study published Thursday found that gas stoves leak significant amounts of methane even when turned off, contributing more to global warming than previously thought. In fact, the study measured the emissions of 53 gas stoves and found that around 80% of the appliances' methane leaks happen when they're turned off. The age and brand of the stove didn't have a noticeable impact on its leaking potential, either. So why does it matter? Well, for a few reasons: - Gas stoves send about 2.6 million tons of methane into the atmosphere each year, the study found.
- Methane contributes far more to global warming than carbon dioxide in the atmosphere (around 80x more, in fact, although it doesn't linger as long).
- Nitrogen dioxide, which can trigger asthma and other respiratory issues, also leaks from gas stoves.
A little perspective: With around 40 million gas stoves in the US, researchers estimate that the appliances have the same effect on climate change as about 500,000 cars (there are at least 250 million registered cars in the country). Researchers suggest switching to an electric stove, or having a professional tighten your gas stove's connectors.—MK | | An example of a "nutrition label" from 2016. (FCC) Our internet services are about to get the same treatment as a Ritz cracker. The Federal Communications Commission (FCC) voted unanimously yesterday to require the Comcasts and Verizons of the world to create broadband "nutrition labels" that lay out cost, speed, and data allowances of internet offerings more clearly for consumers as early as November. The goal is to 1) provide more transparency so consumers don't get an extra $40 surprise on their bill and 2) make it easier for them to compare different providers. - The United States Telecom Association, which represents telecommunications-related businesses in the US, said in a statement before the vote that it agrees people should have clear info about services, but…"they already do." The organization urged the FCC not to create rules that burden providers.
Zoom out. Efforts to demystify internet provider language have been made since the Obama administration, when voluntary broadband nutrition labels were introduced in 2016 and then put on ice. This mandatory label rehaul was launched as part of President Biden's July executive order that aimed to increase competition in concentrated industries like airlines, agriculture, and tech.—MM | | TOGETHER WITH AMERICAN EXPRESS | | And in this case, better means getting the American Express Business Platinum Card®. It's packed with features and benefits to help take your business further. You're probably wondering exactly what those benefits are. Take a look: - Unlock over $1,000 in value per year with statement credits on select purchases
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Whether you're looking to expand your business, keep up the momentum, or make big moves, the American Express Business Platinum Card® has the features your company needs. To learn more about how the American Express Business Platinum Card® is Built for Business by American Express, head right here. | | HBO Stat: The US economy accelerated at its fastest pace in 37 years in 2021, capped off by a Q4 in which annualized GDP grew a very nice 6.9% (much higher than the 5.3% projected). Even with this blistering recovery, the economy remains about 1% below levels that had been predicted before the pandemic hit. Quote: "Never forget." Those words rang out across the world yesterday as leaders, survivors, and communities marked International Holocaust Remembrance Day. The commemoration was punctuated by news that a Tennessee school board removed the Pulitzer Prize-winning graphic novel about the Holocaust, Maus, from its curriculum due to adult content. Read: Embracing habit in an automated world. (Harper's Magazine) | | The feeling of getting a 5/5 on the Brew's Weekly News Quiz has been compared to remembering to cancel your seven-day free trial at six days and 20 hours. It's that satisfying. Ace the quiz. | | - Apple skirted the worst of supply chain bottlenecks to post record sales last quarter.
- The US housing market gained nearly $10 trillion in value during the pandemic.
- Kim Kardashian's shapewear brand, Skims, doubled its valuation over the past nine months to $3.2 billion.
- QB Ben Roethlisberger announced his retirement from the NFL after 18 seasons and two Super Bowl wins with the Pittsburgh Steelers.
- The right to repair could soon be a reality.
| | TOGETHER WITH WEALTHFRONT | | Weird website: Check out thispersondoesnotexist.com for AI-generated faces. 10/10 TikTok: Meet the man who hides everything. Slow Friday at work? Catch up on the Brew's YouTube series: - Street Value: On the streets of NYC, we test people's knowledge of NFTs, crypto, and Elon Musk.
- Point of Return: We learn from regular folks, not financial advisors, about the best investments they ever made.
- Brew Breakdown: We break down questions like: WTF is a credit score? How is the NIL changing college sports?
| | Your friend chooses a random card from a standard deck of 52 cards, and keeps this card hidden. You have to guess which of the 52 cards it is. Before your guess, you can ask your friend one of the following three questions: - Is the card red?
- Is the card a face card? (Jack, Queen, or King)
- Is the card the ace of spades?
Your friend will answer truthfully. What question would you ask that gives you the best chance of guessing the correct card? | | | Answer: It's kind of a trick puzzle, because all three questions give you the same chance of guessing the correct card: 1 in 26 (aka doubling your chances). Find out why here. | | | ✳︎ A Note From Wealthfront Morning Brew receives cash compensation from Wealthfront Advisers LLC for sponsored advertising materials. Morning Brew is not a client and this is a paid endorsement. Please click here for further details. | | | Written by Neal Freyman, Matty Merritt, and Max Knoblauch Was this email forwarded to you? Sign up here. WANT MORE BREW? Industry news, with a sense of humor → - Emerging Tech Brew: AI, crypto, space, autonomous vehicles, and more
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