🛢️ Gas-price problems

…and L’Oréal’s record-breaking beauty buy (feat. Aesop hand soap) [Disclosures](   Pump anxiety returns (Thomas A. Ferrara/Getty Images)   Yesterday’s Market Moves   Dow Jones 33,402 (-0.59%) S&P 500 4,101 (-0.58%) Nasdaq 12,126 (-0.52%) Bitcoin $28,239 (+1.51%) Dow Jones 33,402 (-0.59%) S&P 500 4,101 (-0.58%) Nasdaq 12,126 (-0.52%) Bitcoin $28,239 (+1.51%) Hey Snackers, Language-learning app [Duolingo]( dropped a [trailer]( for “Love Language,” a new dating show in partnership with [NBC]( Peacock, starring Francesca Farago and other reality stars. The “Love Island”-inspired program is (sadly) fake, but the marketing is too hoot to handle. Stocks fell after the news that job openings dipped to under 10M in February for the first time in nearly two years, suggesting demand for workers might be cooling. Gold prices inched higher again, nearing their 2020 record. Slick OPEC’s cuts might mean higher gas prices, which could force other energy players to step up April showers bring… May oil-production cuts. The world’s largest coalition of oil-producing countries surprised everyone on Monday with a doozy: the Saudi Arabia-led Organization of the Petroleum Exporting Countries and its oil-pumping allies (including Russia) agreed to curb production. OPEC+ plans to slash oil output by 1M+ barrels/day for the rest of the year, starting next month. - Classic supply ’n’ demand: Oil prices had their slickest daily gain in over a year on Monday after word that supply would be lower. Energy stocks like [Exxon]( [Chevron]( and [Shell]( also got a bump. - Uh-OPEC: It’s a big blow to President Biden, who’s tried and [failed]( to persuade OPEC members to boost production, which would lower US gas costs (#PumpAnxiety). - Saudi Arabia said it was a precautionary move to ward off falling oil demand. Jitters over the banking crisis and a global recession have led to an oil selloff in recent months. Bidin’ time… but there’s not much the pres can do. OPEC+ countries produce over half the world’s oil, and OPEC (minus the plus) accounts for 60% of global petroleum trade. Last year the Biden admin’s intense lobbying effort failed to dissuade OPEC from throttling production. The news could mean higher prices at the pump for consumers (gas futures spiked after the announcement). Since the economy runs on oil and gas (think: shipping, manufacturing) the cuts could also lead to a broader inflationary spike. THE TAKEAWAY There’s a silver lining for everyone… The news will likely be a positive for OPEC countries and corporate oil titans, who’ve already enjoyed years of exorbitant profits on the back of rising prices. But it could also boost demand for US oil in Europe and Asia, and encourage non-OPEC producers to increase output. Plus: it might fuel support for clean energy. Lather L’Oréal splurges $2.5B on Aesop as beauty giants bet on cult faves to glam up portfolios $40 exfoliating hand soap… spotted in trendy restaurant bathrooms. Cosmetics icon L’Oréal is dropping $2.5B to [buy]( Australian skincare brand Aesop in its largest acquisition ever. Aesop’s aromatic body-care products are stocked in 400 stores worldwide in luxe retailers like [Nordstrom](. L’Oréal wants to expand Aesop’s presence in countries like China, where beauty demand is high. - Pricey GRWM: Aesop has more than doubled its sales since 2018, raking in over half a billion a year as people treat themselves with its $100 exfoliants and $40 balms. - Beautiful returns: Aesop could bolster L'Oréal's top-performing luxe division (which includes billion-dollar beauty brands like Lancôme, [YSL]( and Giorgio Armani). The price is in the #aesthetic packaging… Cosmetic giants have been scooping up smaller luxury beauty brands to woo the hearts (and wallets) of younger consumers. In 2019, [Shiseido]( paid $845M to buy cult skincare brand Drunk Elephant. Last year, [Unilever]( spent $500M on Japanese skincare brand Tatcha. Both brands are staples on Sephora shelves. Gen Z is willing to spend more on premium beauty products, and Zillennials are expected to make up 70% of luxury shoppers by 2025. THE TAKEAWAY Small brands can be a great foundation… for bigger returns. Curated brands like Aesop and Tatcha can help mass-market beauty biggies attract higher-spending customers. While L’Oréal has broad appeal with drugstore products like $8 mascara and CeraVe, it can earn fatter margins on $50 hand soaps. Meanwhile, Aesop can benefit from L'Oréal's global reach and supply chain. Analysts think there could be more beauty acquisitions ahead. DEFI(NE) Heard on the Block: "doge" 🐕 If bitcoin had a younger, wackier cousin who cosplayed as a dog… [Dogecoin]( aka doge, is a nearly decade-old cryptocurrency with an uncapped supply and a Shiba Inu meme for a mascot. Its price [soared]( Monday after Twitter swapped its bird logo for a doge dog, fueling investor hopes that the platform might support doge payments. Last week, Twitter boss Elon Musk asked a judge to toss out a $258B lawsuit accusing him of pumping dogecoin's price. What else we're Snackin' - [Icarus]( [Virgin Orbit]( filed for bankruptcy days after cutting 85% of its staff. It’s a tale of not flying close enough to the sun: the satellite-launch company flew just two missions a year as costs rocketed. - [Fit]( [Amazon]( and [Walmart]( are revving up their use of machines that create made-to-fit boxes for shipments (think: air-fryer-sized cardboard) to cut shipping and materials costs. It’s another sign of tech’s “year of efficiency.” - [Unfrank]( Federal prosecutors charged Charlie Javice, the founder of financial-aid startup Frank, with fraud. Authorities allege she faked user numbers while pursuing her company’s $175M sale to [JPMorgan](. - [Bittrexit]( Crypto exchange Bittrex said it’ll end its US operations by the end of the month, citing regulatory scrutiny. The SEC has accused US-based exchanges like Kraken of offering unregistered securities. - [Vroom]( [Ford]( sales were up 10% last quarter as pickup-truck demand soared, but [GM]( surpassed it as America’s #2 EV seller (after [Tesla](. Both Ford and GM say they'll eventually outsell Tesla. 🍪 Thanks for Snacking with us! Want to share the Snacks? Invite your friends to sign up [here](. Snack Fact Of the Day A record 9.9M viewers tuned in for the NCAA women’s basketball final, double last year’s audience [Read more]( Wednesday - Passover begins - Earnings expected from Conagra Authors of this Snacks own bitcoin and dogecoin and shares: of Amazon, Exxon, Ford, GM, Tesla, and Walmart ID: 2829950 Robinhood Snacks newsletters 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. 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