🚫 John Deere in the headlights

… and Gitlab cashes in on the WFH-conomy [Disclosures](   Head in the cloud [skynesher/E+ via Getty Images]   Last Week’s Market Moves   Dow Jones 34,913 (1.56%) S&P 500 4,438 (1.71%) Nasdaq 14,823 (1.73%) Bitcoin $57,872 (0.86%) Dow Jones 34,913 (1.56%) S&P 500 4,438 (1.71%) Nasdaq 14,823 (1.73%) Bitcoin $57,872 (0.86%) Hey Snackers, New research [shows]( flier satisfaction jumps 5% when overhead bins are bigger. Imagine the percentage jump if you didn’t have to sleep facedown on your tray table. Stocks rallied yesterday, with the market-tracking S&P 500 index notching its best daily gains since March. Investors were heartened by expectation-topping corporate earnings, as big banks like Citi and Morgan Stanley reported profit growth. Want to start getting Snacks daily? Or prefer to unsubscribe? Manage your subscription preferences [here](. Bacon John Deere strike aims to lift wages — but workers really want more spending power Looking for traction… 10K [John Deere]( workers went on strike yesterday to protest the tractor giant’s latest wage contract, which they said offered too slim a pay increase. With prices rising like “Squid Game” views (#inflation), Deere employees aren’t the only ones demanding bigger paychecks and better benefits. - Frosty Flake: Workers at cereal maker [Kellogg]( and Oreo maker [Mondelez]( went on strike recently to demand better benefits, like vacation pay. Mondelez workers succeeded in getting a pay increase and a higher company match for 401(k) contributions. - Temp check: Nurses at Kaiser Permanente voted to strike this month to protest low wages and poor working conditions. - Action: Hollywood crews plan to strike Monday if they can’t secure better benefits, hours, and workplace treatment. Strike while the labor market is hot… It’s hard out here for employers trying to hire. Job openings soared to record highs this summer, labor-force participation is stalled at pandemic levels, and 4.3M workers quit their jobs last month. Workers know they’re hot commodities, so they’re demanding higher wages, better benefits, and stronger workplace protections. They’ve already made some progress: - +4.6%: the hourly-pay increase for US workers last quarter from a year ago. [Walmart]( [CVS]( and [Costco]( are among those who upped minimum wages to $15/hour. - Free college tuition is now available to [Target]( and Walmart employees. One-third of companies with 20K+ workers also plan to expand health benefits. - Bathroom breaks are now protected for [Amazon]( warehouse workers — 74% of whom said they avoided pee breaks to hit quotas. THE TAKEAWAY Spending power isn’t just about wages… It’s also about prices. Hourly pay increased 4.6% last month, but consumer prices jumped 5.4%. Wages rose but spending power didn’t, because bacon, gas, and rent all got more expensive. Since lower-income Americans are especially sensitive to spikes, they don’t just want higher wages — they also want higher spending power and more valuable benefits. Until that happens, workers may keep asking for more. Code GitLab goes public at an $11B valuation to support the hybrid work economy Sounds like a scary laboratory... actually just a really big software company. Once dubbed “the Facebook of programming,” [GitLab]( is a one-stop shop for developers to create, store, and distribute new software. Instead of sending a “per my last email: code change” to your coworker, you can see and make all changes in one place. - Shares of GitLab jumped 35% yesterday after going public on the Nasdaq. GitLab closed well above its IPO price of $77, giving it a $14B+ valuation, nearly double what it was in January. - During the pandemic, GitLab benefited from companies rushing to streamline their operations remotely. It generated $152M in revenue in 2020 — up nearly double from 2019. - Fun fact: San Francisco 49ers legend Joe Montana invested $100K in GitLab through his fund Liquid2 Ventures back in 2015, when GitLab’s valuation was just $12M. Like a sibling rivalry… except there’s no relation. GitLab’s main rival, GitHub, has more than 65M developers and was scooped up by Microsoft in 2018 for $7.5B. GitLab has attracted new users by offering its popular DevOps software free. The hope was more nonpaying users would turn into premium paying subscribers, but it hasn’t panned out: - >1%: how many of GitLab’s 30M users converted to a $19.99 or $99.99 a month subscription. For context: Spotify had a 46% conversion rate in 2019. - $40M: GitLab's loss last quarter as a result of ramping up its marketing budget to attract big spenders. THE TAKEAWAY Developers are the backbone of the hybrid work economy… but they need the tools to keep up with cloud demand. As more companies offer a flexible WFH lifestyle, it’s critical for businesses to make office apps available remotely. Companies like GitLab, whose employees are 100% remote, are gaining steam by trying to make that transition seamless. Still, it could be a while before they actually make money doing it. What else we're Snackin' - [Scold]( The White House told [Moderna]( which received $10B from taxpayers to fund its research, to “step up” its efforts to deliver not-for-profit Covid vaccines. - [Boost]( For people who got the [Johnson & Johnson]( vaccine, research found [Pfizer]( or [Moderna]( boosters could produce more immunity than another J&J jab. - [Disconnect]( LinkedIn, the last major American social-media company still operating in China, will shut down its platform there because of increasing censorship. - [Reserve]( Profits at [Bank of America]( [Wells Fargo]( and [Citi]( boomed after the banks released reserves set aside for defaults that never happened. - [eStore]( The Senate announced bipartisan legislation that would prevent companies like [Amazon]( and [Apple]( from prioritizing their own products on their platforms. - [Special]( Crypto exchange [Coinbase]( asked Congress to block the SEC from regulating the crypto industry, arguing that a special regulator should do the job. 🍪 Want to start Snacking daily? Sign up [here]( for our daily market newsletter. The Snacks Daily Podcast “Zumba Pilates is back, baby.” Even though its revenue plunged 95% during the pandemic, fitness subscription ClassPass just found a zen home with wellness platform Mindbody. [Tune in]( to hear why the future of gyms could be like the future of restaurants. Snack Fact Of the Day [At 90 years old, “Star Trek” star William Shatner this week became the oldest person ever to go to space after beaming up on a Blue Origin rocket]( This Week - September retail sales - Earnings expected from Goldman Sachs, JB Hunt, Prologis, and PNC Authors of this Snacks own shares of: Apple, Moderna, Amazon, Walmart, CVS, and Delta ID: 1 Robinhood Snacks newsletters and podcasts reflect the opinions of only the authors who are associated persons of Robinhood Financial LLC (Member [SIPC]( and do not reflect the views of Robinhood Markets, Inc. or any of its subsidiaries or affiliates. They are for informational purposes only, and are not a recommendation of an investment strategy or to buy or sell any security, digital asset (cryptocurrency, etc) in any account. They are also not research reports and are not intended to serve as the basis for any investment decision. Any third-party information provided therein does not reflect the views of Robinhood Markets, Inc., Robinhood Financial LLC, or any of their subsidiaries or affiliates. All investments involve risk including the loss of principal and past performance does not guarantee future results. [Robinhood Terms and Conditions]( • [Disclosure Library]( • [Our Editorial Principles]( • [Contact Us]( • [FAQ]( [Manage Your Subscription Preferences]( To unsubscribe from all commercial emails, click [here]([global_unsubscribe_link])