⌛ Rewinding the quarter

…the biggest themes of the first quarter, from inflation to the metaverse [Disclosures](   Remind me what year it is? [Massimo Ravera/Getty Images]   Last Week’s Market Moves   Dow Jones 34,861 (+0.31%) S&P 500 4,543 (+1.79%) Nasdaq 14,169 (+1.98%) Bitcoin $44,421 (+6.32%) Dow Jones 34,861 (+0.31%) S&P 500 4,543 (+1.79%) Nasdaq 14,169 (+1.98%) Bitcoin $44,421 (+6.32%) Hey Snackers, We’re only three months into 2022, but it already feels like this first quarter has lasted a year. Just as Covid seemed to be waning in the West, Russia invaded the sovereign nation of Ukraine, launching a war that’s taken thousands of lives and driven Europe into one of its [darkest]( times since WWII. Today, we’re zooming out and zeroing in on the news and trends that’ve shaped markets and biz in the past three months — and helping you prep for what’s next. Want to start getting Snacks daily? Or prefer to unsubscribe? Manage your subscription preferences [here](. Zoom Out Three themes that defined the first quarter… The smog of war… Russia’s war on Ukraine has roiled markets and mobilized world leaders and businesses. The West has weaponized finance to punish President Putin’s onslaught, from sweeping sanctions to [yacht seizures](. The US stopped buying Russian oil, and major companies like [McDonald’s]( and [Coke]( [halted]( business there. Meanwhile, the EU is [scrambling]( to phase out Russian energy by 2027. Reduced supply from Russia has caused prices of oil, gas, wheat, nickel, and other key commodities to skyrocket. Oil fuels the global economy, from manufacturing to farming to shipping. High energy prices will likely slow economic growth — and [could even trigger]( a US recession. Inflation nation intensifies… so does pump anxiety. US inflation [reached]( a new 40-year high last month, with consumer prices up [8%]( from a year ago. A gallon of gas is hitting $7 in some states. After two years of near-zero interest rates, the stimulus party’s over: the Fed started raising rates this month to cool prices, though only by half of what was expected. Despite all the war-driven uncertainty, Fed Chair Powell [emphasized]( plans for more rate hikes. Now the US is in “boomflation” — inflation paired with strong growth and a nearly recovered labor market. But in an econ nightmare scenario, we could get “stagflation”: high inflation + sluggish growth. The big bear(ish) market… Your portfolio might be feeling it. Stocks kicked off the year at records, after the market-tracking S&P 500 index gained 27% last year. Fast-forward three months: major indices are all down so far, and the techy Nasdaq is down 10% from its record in November. Giant tech stocks like [Amazon]( and [Microsoft]( are weighing down the whole market. As rates and inflation rise, the value of companies’ potential future growth is also falling. Cue: stock prices are being “corrected.” Meanwhile, pandemic thrivers like [Peloton]( [Netflix]( and [Pinterest]( have plunged as demand sags. #s Six notable numbers… - $4.5B: Value of [bitcoin]( alleged to have been [stolen]( by a “financial rapper” and her husband in the biggest cryptocurrency theft ([Netflix’s]( next scammer show?). Cybercrime is on the [rise]( and US crypto regulation is in the works. - $250B: How much [Meta]( [lost]( in one day after reporting its first dip in daily active users. Facebook’s profit-puppy ad biz also took a hit from Apple’s privacy changes, while TikTok’s swiping up users. - 1.4M: The highest [recorded]( number of new US Covid cases in a single day (January 10). National cases have fallen and all statewide mask mandates have been lifted. But reported cases are still [rising]( in about 10 states. - $3.2B: The value of Kim Kardashian's Skims shapewear line, which [doubled]( over the past year and was boosted by a major cash [injection](. Celeb-preneur brands like Rihanna’s Savage X Fenty lingerie and makeup biz have thrived. - 18%: The percentage of China’s 1.4B population [using]( digi-yuan wallets. China is among 87 countries [creating]( state-controlled digital currencies, though it currently [bans]( unregulated coins like bitcoin. - $65M: How much Ukraine has [raised]( in crypto donations so far. It was one of many unconventional ways, along with no-show [Airbnbs]( and [Etsy]( donations, that people supported global efforts. Zoom In Three trends that surfaced... The IPO-palooza is over… IPOs [slowed]( to a trickle this quarter: there was a 25-day span without a single one. That's a stark contrast to last year, when 1K+ companies raised a record $268B. Part of the reason private giants like Stripe are holding off: 70% of last year’s IPOs ended the year trading [below]( their offering prices. Even [Rivian]( the first-to-market EV-truck maker with last year’s biggest debut, has slipped 50% since IPO’ing. Instacart and others have canceled planned IPOs, and the rest of the year’s expected to stay slow. Ready Player (Every) One… US consumers [spent]( $60B on video games last year — twice as much as they spent on streaming movies and TV. Gaming deals hit a new high score this quarter: “GTA” maker [Take-Two]( revealed [plans]( to buy Farmville maker [Zynga]( for $12.7B in the biggest gaming deal of all time — until [Microsoft]( beat that a week later with a $70B [bid]( to buy “Call of Duty” maker [Activision](. Now gaming’s entering a new phase: the metaverse. Tech giants [Meta]( and [Nvidia]( are spending billions building metaverses, and gaming platforms like [Roblox]( could be crucial to snagging early meta-users. Moderation mayhem… Tech has been in the moderation hot seat, from the usual suspects (Meta, [Twitter]( to [Spotify]( and TikTok. Joe Rogan created a [Spotifiasco]( when medical experts and Neil Young [called out]( Covid misinfo on his Spotify-exclusive pod. Rogan’s history of using racial slurs also surfaced. Spotify stood by Earth’s biggest podcaster, but made its moderation policies public for the first time. Others like TikTok and Twitter have had to deal with [multiplying]( misinfo about Russia’s war in Ukraine. And Meta [allowed]( users to call for violence against Russian invaders. What else we're Snackin' Other big stories… - [Testing]( The US lagged behind other countries in making Covid tests available during Omicron’s spread. But profits boomed for self-test makers like [Abbott]( test sellers like [Walgreens]( and test processors like [Labcorp](. - [Web3]( The buzzword of 2022. Blockchain buffs are bullish on Web3, a decentralized user-owned internet that could replace Web1 (think: info sites like AOL) and Web2 (think: social sites like [Facebook](. - [She-cession]( US unemployment is nearly back to pre-pandemic levels, but women’s jobs are returning more slowly than men’s, partly because of unequal childcare duties and high-burnout jobs. - [Blood]( Four years after Theranos founder Elizabeth Holmes was charged with fraud over her blood-testing tech, the jury’s in: she likely faces 9-18 years in prison. But the conviction hasn’t dented biotech funding. 🍪 Want to start Snacking daily? Sign up [here]( for our daily market newsletter. The Snacks Daily Podcast Instacart just had an “apology round.” After booming pandemic sales slumped, the grocery deliverer voluntarily lowered its valuation by 40%. [Tune in]( to hear why the unusual move could help Instacart attract scarce tech talent. Snack Fact Of the Day [Sci-fi author Neal Stephenson coined “metaverse” in his 1992 best-seller “Snow Crash,” in which people use virtual avatars to escape a dystopia]( This Week - Monday: Earnings expected from XPeng, Jefferies, Ginkgo Bioworks, and TPG - Tuesday: Earnings expected from Lululemon, McCormick, Chewy, and Micron Technology - Wednesday: Earnings expected from Paychex and Dave & Buster's - Thursday: Weekly jobless claims. Earnings expected from Walgreens, BlackBerry, and Blend Labs - Friday: March unemployment rate - The weekend: The Final Four March Madness basketball games are on Saturday. The Grammys are on Sunday. Authors of this Snacks own: bitcoin and shares of Apple, Netflix, Twitter, Spotify, Amazon, Zynga, and Microsoft ID: 2097730 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. 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