📱 DOJ vs. Apple

…and the wedding “engagement gap” widens Charged up (Mandel Ngan/Getty Images) Yesterday's Market Moves Dow Jones 39,781 (+0.68%) S&P 500 5,242 (+0.32%) Nasdaq 16,402 (+0.20%) Bitcoin $65,645 (-3.26%) Dow Jones 39,781 (+0.68%) S&P 500 5,242 (+0.32%) Nasdaq 16,402 (+0.20%) Bitcoin $65,645 (-3.26%) Hey Snackers, Researchers [named]( a recently discovered prehistoric ancestor to amphibians after Kermit the Frog. “Kermitops gratus” lived 270M+ years ago and probably didn’t play the banjo. The S&P 500 notched its twentieth record close this year, despite declines in [Apple]( and [Alphabet](. US home sales rose for two straight months for the first time in over two years. 🌸 This quiz sparks joy… so plz don’t throw it out while you’re spring cleaning. The [Snacks Seven Quiz]( is ripe for you to ace. Try the first Q below: - Which group’s average annual cash bonus slipped last year to $177K? ([Check your answer](.)   BIG [The Department of Justice sues Apple, saying it illegally sustains an iPhone monopoly]( Apple gets served… and it’s not pie. The DOJ [dished]( up a landmark antitrust lawsuit taking on the Apple ecosystem. After a four-year investigation, yesterday the DOJ said that Apple has illegally sustained an iPhone monopoly by giving its own devices (like the Apple Watch) and services (like Apple Pay) an advantage over rivals’. The DOJ said Apple has prevented app developers from creating rival tap-to-pay options for the iPhone, hampered competition in the smartwatch market, and suppressed cloud gaming services. - Bubble burst: The Justice Department even called out Apple’s use of green bubbles for text messages sent by non-iPhone users (“green bubble shaming” is a thing). - Apple said: The lawsuit is “wrong on the facts and the law,” and “threatens who we are and the principles that set Apple products apart in fiercely competitive markets.” - Experts say: The case could take around three years to play out. If Apple loses, it could spell big changes for its iBusiness. Apple shares fell 4% yesterday. iMessage on four devices… Apple connects its services across its gadgets (which as of late 2022 were used by 2B people). But its tightly controlled ecosystem has led to lawsuits over everything from its “app tax” to limits on how app developers can communicate with their users. Now, Apple’s gated garden is starting to crack: - Record scratch: This month EU regulators [ordered]( Apple to pay a $2B fine, saying the company suppressed music-streaming competition. - Game on: Apple started allowing outside payment systems on the US App Store this year after a lawsuit with Epic Games (but was still charging developers a 27% fee). THE TAKEAWAY Big Tech’s big strategy is under threat… [Amazon](, Google, and [Meta]( all offer an interconnected web of services, which has led to multibillion-dollar ecosystems. Now that strategy is in jeopardy, and not just for Apple. A DOJ case targeting Google’s ad-tech dominance goes to trial this fall, and the search giant agreed to pay $700M last year to settle allegations that it suppressed Android app store competition. Meantime, the FTC sued Amazon last year in an ecomm antitrust case.   COLDFEET [Kay parent Signet Jewelers slides as the “engagement gap” leads to fewer ring sales]( Every kiss begins with Kay… and they went to Jared. [Signet Jewelers](, the self-proclaimed world’s largest diamond-jewelry seller and the parent co of brands like Kay, Jared, Zales, and Blue Nile, gave investors a not-so-shiny [forecast]( for the year. The reason: it said fewer folks could put a ring on it. Signet, which depends on bridal jewelry for half its sales, saw its stock plunge 12% after it said sales fell 10% in the holiday quarter. - Untied knot: Signet said couples announced 2.1M engagements last year, well below the prepandemic average of 2.8M. It expects only 5% to 10% more knee-droppers this year. “A diamond is forever”… but not for now. It’s been four years since the pandemic started, and Signet said couples get engaged on average three years after they start dating. Since IRL meetups and candlelit dinners weren’t happening mid-pandemic, Signet said jewelers are facing an “engagement gap” (it’s hard to meet your SO on “Animal Crossing”). Plus, it said tough economic conditions could cause folks to delay big purchases. - Diamonds for a discount: Luxury jeweler De Beers said it sold fewer carats last year (at an average of 25% cheaper per carat), and its revenue dropped 35% from 2022. - Lab-grown diamonds, which are often cheaper than mined gems, are also eating into old-school jewelers’ sales (De Beers pushes mined diamonds). THE TAKEAWAY The pandemic has a very long train… The getting-hitched industry rebounded in 2022 as Covid-delayed dates were rescheduled. But now the wedding biz could feel the longtail effects of daters’ year+ of baking sourdough alone. That could vary by region: Signet said that states with the shortest shutdowns, like Texas, are seeing engagements recover faster than states with longer lasting measures, like California.   WIF [The Crypto Catch-Up…]( 📜 Policy… Analysts have done a [U-turn]( on the likelihood that the SEC will approve spot [ethereum]( ETFs this May (current prediction: no). Investors speculate that an approval could boost ether demand, pointing to BTC’s rally after spot bitcoin ETFs. 💰 Spendy… Polygon Labs, the blockchain biz supporting [Starbucks](’ test of an NFT-based rewards program, [reportedly]( paid the java giant $4M to host the project. Starbs said it’s ending the program, dubbed Odyssey, this month. 🤹‍♀️ Quirky… A photo of a Shiba Inu wearing a pink beanie [sold]( as an ethereum-based NFT for $4.3M. It’s not just any dog pic: it’s the meme behind dogwifhat, the [solana](-based memecoin du jour with a $2B+ market cap (no pun intended).   What else we’re Snackin’ - [Darn](: Olive Garden parent [Darden](’s breadsticks went stale last quarter, with same-store sales slipping. Still, Darden’s pasta bowl of profit rose, and net sales were boosted by its Ruth’s Chris acquisition. - [Laggings](: As competition from Alo Yoga and Vuori heats up, [Lululemon](’s US growth is getting stretched thin. North American sales rose 9% (compared to 29% last year) as Lulu focuses on international expansion. - [Linked](: Neuralink’s first trial patient said the biz’s brain-chip implant wasn’t perfect, but that it had changed his life (picture: using a computer with your mind). The 29-year-old man suffers from quadriplegia. - [Charged](: The EPA issued new tailpipe-pollution limits set to gradually become stricter. By 2032, more than half of new US car sales would likely be full electric (up from EVs’ 8% share last year). - [Airbuy](: Korean Air Lines said it plans to buy 33 [Airbus]( jets in a deal worth $13.7B. Airbus is widening its lead over [Boeing]( as the beleaguered plane maker’s 737 woes continue with a DOJ investigation. 🍪 Thanks for Snacking with us! Want to share the Snacks? Invite your friends to sign up [here](.   Snack Fact Of the Day The US dropped out of the top 20 happiest countries for the first time since at least 2012 [Read more](   Friday - World Water Day - F1 Australian Grand Prix weekend begins Authors of this Snacks own bitcoin and ethereum and shares of: Alphabet, Amazon, Apple, and Starbucks   [Instagram]( [Twitter]( Sherwood Media, LLC produces fresh and unique perspectives on topical financial news and is a fully owned subsidiary of Robinhood Markets, Inc., and any views expressed here do not necessarily reflect the views of any other Robinhood affiliate... 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