🤖 Goldman’s robo reversal

…and the Supreme Court hears labor’s coffee case (Gary Hershorn/Getty Images) More like a “we” bank   Sponsored by Yesterday's market moves Dow Jones 38,504 (+0.69%) S&P 500 5,071 (+1.20%) Nasdaq 15,697 (+1.59%) Bitcoin $66,349 (-0.76%) Dow Jones 38,504 (+0.69%) S&P 500 5,071 (+1.20%) Nasdaq 15,697 (+1.59%) Bitcoin $66,349 (-0.76%) Hey Snackers, A yellow legal pad with the words “Buy Bitcoin” written on it is being [auctioned]( off for $140K+ seven years after an intern flashed it behind then-Fed Chair Janet Yellen during congressional testimony. Think of it as an IRL NFT. Stocks popped yesterday, pulled up by the techy Nasdaq. Fresh data showed that last month new-home sales soared beyond analysts’ expectations.   TRANSFER [Goldman ditches its robo-advisory biz as it breaks up with consumer banking]( Under new management… [Goldman Sachs]( is [pulling]( the plug on its robo-advisory biz. The investment-banking giant agreed to send its Marcus Invest clients (and their assets) to the digital investment company Betterment. The transfer, expected by the end of June, is another win for Betterment. The $45B wealth manager established its Wall Street cred with socially conscious robo-investment products, roughly doubling its assets since 2020. For Goldman, the rollover’s a rollover in defeat — aka another concession its consumer-banking foray was (mostly) a failure. Indirect deposit… Goldman launched Marcus Invest in 2021, with Marcus joining a suite of consumer-facing products that included credit cards, CDs, and savings accounts. The goal: lure lower tax brackets (accounts as low as $1K) to ritzy Goldman. But last year the asset manager pulled a 180, saying its retail-banking biz had hemorrhaged $3B in about two years. It started to offload Marcus loans at a loss of nearly $500M. Goldman is still looking to back out of its credit-card partnerships with [Apple]( and [GM](. - Bright spot: Goldman said it planned to double down on its deposits business, which has accrued $110B+ in deposits. - Why bother? Investors want Goldman’s revenue to be less reliant on dealmaking (IPOs, mergers) because it’s less consistent than, say, savings accounts. Rival [Morgan Stanley](’s earnings have been propped up by its growing asset-management biz. THE TAKEAWAY Dead branches weaken the whole tree… and Goldman’s got the pruning shears out. In February, Goldman said it planned to trim $1B off its balance sheet. To that end, the i-bank is cutting weak limbs while focusing on the strongest parts of its biz. Picture: scaling back its mass-market push and refocusing on the 1%. Goldman is also said to be increasing its lending to private-wealth clients with accounts that hold an average of $60M each. Sponsored by Masterworks Get five free shares* on the art investment platform with 21 profitable exits How has the art investing platform [Masterworks]( been able to realize an individual profit for investors with each of its 21 exits to date? Here’s an example: an exited Banksy was offered to investors at $1.039 million and internally appraised at the same value after acquisition. As Banksy’s market took off, Masterworks received an offer of $1.5 million from a private collector, resulting in 32% net annualized return for investors in the offering. Every artwork performs differently — but overall, [Masterworks]( assets held longer than one year have delivered median returns of 17.6%, 17.8% and 21.5%** (respectively). Masterworks takes care of the heavy lifting: from buying the paintings, to storing them, to selling them for you (no art experience required). Now, for a limited time, you can get your first 5 shares for free(!)* when you [use this Snacks link to get started.]( Sponsored by Masterworks Get five free shares* on the art investment platform with 21 profitable exits How has the art investing platform [Masterworks]( been able to realize an individual profit for investors with each of its 21 exits to date? Here’s an example: an exited Banksy was offered to investors at $1.039 million and internally appraised at the same value after acquisition. As Banksy’s market took off, Masterworks received an offer of $1.5 million from a private collector, resulting in 32% net annualized return for investors in the offering. Every artwork performs differently — but overall, [Masterworks]( assets held longer than one year have delivered median returns of 17.6%, 17.8% and 21.5%** (respectively). Masterworks takes care of the heavy lifting: from buying the paintings, to storing them, to selling them for you (no art experience required). Now, for a limited time, you can get your first 5 shares for free(!)* when you [use this Snacks link to get started.](   FROTHY [Starbucks is challenging a labor watchdog’s power in a far-reaching Supreme Court case]( Big Coffee’s labor fight pours over… into the US’s highest court. SCOTUS yesterday heard [arguments]( in [Starbucks](’ case against the National Labor Relations Board (NLRB), the federal agency that enforces worker rights. The nearly $100B java chain essentially asked the court to make it tougher for the NLRB to step in when it believes companies are illegally interfering with union drives. Experts say the ruling (expected by June) could have a venti influence on US labor’s momentum. - The case: In 2022, Starbucks fired seven employees who were leading a unionization effort. The NLRB said the move broke US labor law and ordered Starbucks to rehire the “Memphis Seven.” - Order up: The NLRB, which can’t impose fines, got the workers rehired using an injunction. Starbucks — which has received 12 NLRB injunctions in two years — wants a stricter process for granting them. - Taste test: Animosity between Starbucks and Workers United — the union organizing 10K+ Starbucks workers at 420 stores — appears to be cooling. The two sides are set to return to the bargaining table today for the first time in nearly a year. Boardrooms v. labor board… Under the labor-friendly Biden admin, the NLRB has gotten more aggressive. That’s rankled corporates dealing with high-profile union pushes. In addition to Starbucks, SpaceX, Trader Joe’s, and [Amazon]( have all challenged the constitutionality of the nearly 90-year-old agency. THE TAKEAWAY SCOTUS could tip the labor scales… Labor supporters say that a ruling against the NLRB could hamstring labor battles across the US, in industries ranging from automaking to entertainment. Last year over 100K workers organized under the NLRB’s watch— a more than 20-year high.   TIK-STOCKS [What a US TikTok ban could mean for the rest of the market]( Last Thursday the House of Representatives fast-tracked a bipartisan effort that could lead to Gen Z’s favorite app being banned in America, and over the weekend the House approved the bill. The revised legislation ties TikTok’s fate to a foreign-aid package for Ukraine, Israel, and Taiwan. The Senate passed its biggest procedural hurdle yesterday in an 80-19 vote. The bill should get a final vote shortly, which would likely send it to President Biden’s desk, where he’s indicated he’d sign it. Read about the companies that could be affected by a TikTok ban, based on how they mention the app in earnings transcripts and filings, [on Sherwood](.   What else we're Snackin' - [iSlump](: iPhone sales fell 19% in China last quarter as rivals like Huawei and Honor stole Apple’s shine. Chinese consumers have been ditching US tech for local alts as geopolitical tensions rise. - [Strap](: The FTC sued to block Coach parent [Tapestry]( from buying Jimmy Choo and Versace owner [Capri](. Regulators say the $8.5B deal could curb competition and lead to higher handbag prices and lower wages. - [Pop](: [Pepsi]( topped Wall Street’s sales estimates for Q1, even as US shoppers traded down from pricey name-brand snacks. The soda star’s international biz (which makes up over a third of its revenue) saw sales jump 9%. - [24/7](: NYSE is polling investors on the value of round-the-clock trading. The idea, boosted by crypto, has picked up steam with several retail brokers offering 24-hour stock trading Monday through Friday. - [Teslid](: [Tesla]( said its Q1 revenue and deliveries were down. The EV giant, which has been on a cost-cutting tear, saw its shares pop after hours, after it said it’d release new models sooner than previously thought.   Snack Fact of the Day d[Octopuses have three hearts](   Wednesday - Earnings expected from Biogen, Boeing, Hilton, Meta, IBM, Hasbro, Ford, AT&T, Chipotle, Norfolk Southern, Humana, General Dynamics, Sallie Mae, Synchrony Financial, Waste Management, and Western Union Authors of this Snacks own bitcoin and shares of: Amazon, Apple, GM, Starbucks, and Tesla *In lieu of “5 free shares”, the recipient will receive the dollar value of 5 free shares valued at $20 per share via a $100 check. User will receive the check after completing a call with an advisor. Terms and conditions apply. Complete details [here](. **“Net Annualized Return” refers to the annualized internal rate of return, or IRR, net of all fees and costs, to holders of Class A shares from the primary offering, calculated from the final closing date of such offering to the date the sale is consummated. A more detailed breakdown of the Net Annualized Return calculation for each issuer can be found in the respective Form 1-U for each exit. The 3 median returns above represent the ones closest in percentage to the median of the 12 exits with holding periods over 1 year. The content is not intended to provide legal, tax, or investment advice. Past performance is not indicative of future performance. Investing involves risk. Masterworks internally appraises artworks that are held by entities administered by Masterworks Administrative Services on an ongoing basis, and obtains an independent review of appraisals by a third-party appraiser on an annual basis. Appraisals are prepared in accordance with the 2020-2021 Uniform Standards of Professional Appraisal Practice (“USPAP”) developed by the Appraisal Standards Board of the Appraisal Foundation, although it is noted that there are potential conflicts of interest given that some or all individual members of the appraisal committee are employees of Masterworks and Masterworks retains an ownership interest in the subject artworks as well as ownership of the Masterworks Platform. Masterworks compiles historical data from public auctions to produce metrics that we believe can be helpful in measuring and analyzing historical trends in artist markets and the historical price appreciation of specific artworks. See important Reg A disclosures at [masterworks.com/cd](.   [Instagram]( [Twitter]( [Sherwood Logo](sherwood.news) 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... [See more]( [Sherwood Terms and Conditions]( [Our Editorial Standards]( [Contact Us](mailto:hellosnacks@sherwood.news) [Advertise With Us](mailto:advertising@sherwoodmedia.com) [Unsubscribe]( [Privacy Policy](