🍱 $1T infrastructure appetizer

...and SmileDirect is indirectly frowning
 

And this is just the appetizer [Jonathan Knowles/Stone via GettyImages]

 
Yesterday's Market Moves
 
Dow Jones
35,265 (+0.46%)		S&P 500
4,437 (+0.10%)		Nasdaq
14,788 (-0.49%)		Bitcoin
$45,578 (-1.68%)
Dow Jones
35,265 (+0.46%)		S&P 500
4,437 (+0.10%)
Nasdaq
14,788 (-0.49%)		Bitcoin
$45,578 (-1.68%)

Hey Snackers,

Most Elon headline ever: SpaceX is reportedly partnering with a Canadian startup to display ads in space — that could eventually be paid for with Dogecoin.

Stocks ticked up to records yesterday, after the Senate passed its long-awaited infrastructure bill. Shares of industrial and energy companies like Caterpillar and Chevron outperformed.

Build

The Senate passed a historic $1T infrastructure bill — but it could be just an appetizer

Rare collab... between political influencers. Senate Democrats and Republicans came together yesterday to pass a $1T infrastructure bill. Nineteen Republicans joined all 50 Senate Dems to approve the package, which advances a key piece of President Biden's agenda: giving America's old infrastructure a major facelift. $550B will go to public works programs, including:

  • $110B to roads and bridges, $66B to rail, and $40B to transit.
  • $65B to expand internet access, including $30 monthly vouchers for low-income families.
  • $7.5B to build new EV charging stations, and $7.5B for greener school buses.

When the bill arrives... Instead of raising taxes to pay for the package, Congress would get crafty. Think: repurposing existing Covid funds, and applying new IRS reporting requirements for crypto. But the bill still needs a green light from the House, which could be rocky. House Speaker Nancy Pelosi said the chamber wouldn't take it up until the Senate also passes a massive antipoverty and climate plan. About that...

  • This week, Dems unveiled a $3.5T budget plan for big spending on social programs and climate efforts. Like: universal pre-K, two free years of community college, public housing, and clean energy development.
  • The plan would largely be paid for by raising taxes on corporations and the wealthy. Dems plan to approve it through reconciliation, which wouldn't require GOP support.
THE TAKEAWAY

This could be just the appetizer... to a new era for the US government. For Dems, the $1T bipartisan infrastructure bill could be the start of a spending feast that could reshape the role of US government. Since Reagan became prez in 1981, the federal government's role in Americans' lives has shrunk. President Biden is positioning himself as a new FDR, trying to kick off an expansion fueled by spending on social programs and climate initiatives.

Smize

Smile Direct Club shares plunged after earnings, even though its competitors are beaming

Welcome to frown town... population: Smile Direct Club. Like Invisalign-maker Align Technology, SDC makes invisible aligners for your pearly whites. Unlike Align, Smile Direct Club chose the D2C route (direct-to-consumer). Yesterday, SDC said its aligner sales dropped 13% from the previous quarter. Meanwhile, competitor Invisalign's sales grew by nearly the same amount. SDC investors indirectly frowned, sending the stock down 25% yesterday.

On-Zoom cavity check… Telehealth adoption spiked 20X at the start of the pandemic. Adult braces boomed last year as we stared at our chompers on Zoom. While shares of Align Technology have more than doubled over the past year, SDC's have fallen 56%. That may be because of how they sell their molds:

  • D2C: Smile Direct sells most of its aligners by advertising on social media and shipping DIY teeth molds straight to customers.
  • D2D: Direct-to-dentist. Invisalign partners with 83K dentists to sell its aligners. There's no DIY option — you have to go in for checkups and fittings with your doc.
  • Last quarter, SDC's only sales channel (D2C) was dinged by a cyberattack and changes to Apple's privacy policy that limited ad targeting.
THE TAKEAWAY

D2C doesn't always work… It's great for simple products like dog toys and razors. But complex products that require extreme personalization — and involve your health — sometimes require more hand-holding. That's why D2C glasses company Warby Parker has doubled down on physical stores with specialists. And that's why SDC is now building out its own dentist Partner Program.

What else we're Snackin'
  • Wait: Softbank is pausing new investments in China, after China's crackdown on tech companies led to some of Softbank's investments plunging — along with its profit.
  • Oh: Decentralized finance (DeFi) platform Poly Network lost $600M in crypto to an alleged hacker in an attack on Tuesday.
  • Rated-G: Google boosted its privacy and ad targeting protections for teens, days after Apple launched its own controversial child-protection features.
  • Comp: Amazon expanded its A-to-Z Guarantee to compensate customers who are injured by sellers' products up to $1K.
  • Pep: Beyond Meat is teaming up with Pizza Hut to launch meat-free pepperoni in five US cities. Restaurants now make up 25% of the alt-meat maker's sales.
  • Love: In a bid to double down on reality shows, Netflix is asking normal people to submit one-minute audition videos. Bring on the drama.

🍪 Thanks for Snacking with us! Want to share the Snacks? Invite your friends to sign up here.

Wednesday
  • Consumer price index
  • Earnings expected from Nio, eBay, Canada Goose, Bumble, Wendy's, and Sonos

Authors of this Snacks own shares of: Amazon, Netflix, Google, and Apple

ID: 1755743

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