__If it's a verb...__ It needs no intro. Flashback to December 2019: WFH days are a rare perk, masks are for spa days, and __[Zoom](https://robinhood.com/stocks/ZM)__ stock is trading at $65. Flashforward to October 2020: WFH is a meme-ified norm, masks are for all days, and Zoom stock is trading at $560. Oh, and its quarterly profit has increased 3,300% from 2019. 

- __But Zoom has been kind of muted lately...__ Now that Covid-19 vaccines are being administered, shares have fallen to $357. And Zoom wants to cash in before it's too late.
- __Zoom plans to sell 5M+ new shares__ to [raise](https://investors.zoom.us/news-releases/news-release-details/zoom-announces-pricing-175-billion-public-offering) $1.75B in fresh cash. Since more shares are being introduced, Zoom stockholders will own less of the overall company — that [dilutes](https://learn.robinhood.com/articles/5rlezLS4uMuf3cZTyEAo38/what-is-stock-dilution/) the value of exisiting shares.

__Conference FOMO...__ Zoom hasn't cashed in on its soaring share price yet. When you buy a company's stock, the company isn't  getting your dollars. The $$$ goes to the random other investor you bought the stock from (just like when you sell, it goes to you). But these new share sales are kind of rare for public companies (though Tesla has announced two this year), because no one wants dilution. So why is Zoom doing this now? 


"_Welcome to ZWork"_

Sell

__Zoom could be gearing up to invest...__ in a "return-to-work" hedge. Zoom doesn't have a cash problem: on October 31, it had [$1.9B](https://investors.zoom.us/news-releases/news-release-details/correction-zoom-reports-results-third-quarter-fiscal-year-2021) in cash, according to its latest earnings. So this share sale isn't a needy cash grab. Zoom is the ultimate WFH stock - that's both its greatest strength and its greatest vulnerability. Now it could be gearing up to invest in (or even acquire) a "return-to-normalcy" hedge. We're thinking it should launch a remote co-working space called ZWork.

Zoom looks to raise $1.75B with a new share sale — but why?

__If a mailbox had a baby with a WiFi-connected Igloo cooler...__ you'd get HomeValet. This "smart cooler" chills on your doorstep, waiting for the grocery delivery so you don't have to. __[Walmart](https://robinhood.com/stocks/WMT)__'s [partnering](https://www.cnbc.com/2021/01/12/walmart-will-test-grocery-deliveries-to-customers-homes.html) with the startup behind HomeValet for a grocery delivery pilot in Bentonville, Arkansas (aka: Walmart HQ).

- __Secure & contact-less:__ Only you and the delivery guy/gal can unlock the box. 
- __Temp-controlled:__ Three temperature zones — refrigerated, frozen, and room temp (for the Nutella).
- __Phone-controlled:__ Set your HomeValet to 0° F straight from the app. 
- __Disinfecting:__ Bacteria-crushing UV lights sanitize your eggplant.

__Walmart isn't famous for its e-nnovation...__ but it *is* famous for groceries. Walmart = [largest](https://snacks.robinhood.com/newsletters/7npBg6WCh7X1ssgq9cuRtt/articles/5KSLxwetQ3mOFHvXF6Jnl9/) grocer in the US. This partnership with HomeValet could give it an innovative edge against techy __Instacart__ and __[Amazon](https://robinhood.com/stocks/AMZN)__. In fact, Walmart customers will be the first to gain access to HomeValet boxes (they haven't even dropped yet).


Cool

__Prime goes wide, Walmart+ goes deep...__ into grocery. Makes sense, since groceries account for over half of Walmart's sales. ICYMI: Walmart+ is the $98/year Amazon Prime rival. Prime offers everything from free shipping, to video, to Music, and yes... grocery delivery. But Walmart+ has one major selling point: free unlimited grocery delivery. HomeValet could level up Walmart's grocery by expanding perks. 


Walmart tests an outdoor "smart cooler" for anytime grocery delivery

Dow Jones

S&P 500

Nasdaq

Bitcoin

💻  Zoom's $1.75B stock sale 

__Returning your returns...__ So meta. The new approach to online returns: *don't do them.* From __[Amazon](https://robinhood.com/stocks/AMZN)__, to __[Walmart](https://robinhood.com/stocks/WMT)__, and __[Chewy](https://robinhood.com/stocks/CHWY)__, companies are starting to say “keep it,” [according](https://www.wsj.com/articles/amazon-walmart-tell-consumers-to-skip-returns-of-unwanted-items-11610274600) to the WSJ. They’ll refund you for that tight-fitting beanie — but they don't want it back. Why so nice? 

- __*It's a price thing*.__ Some returns are more expensive to process and ship than the products actually cost — especially cheap or heavy items. Companies use AI to do the math.
- __Returns can cost companies $10 to $20,__ *excluding* transportation. So it makes more economic sense to just refund you for that $7 PopSocket (iPhone was allergic). 

__Do "one-size-fits-all" fuzzy socks count?...__ The number of ecommerce returns in 2020 jumped 70% from 2019. More than half of that was driven by soaring online sales. A fourth was because you didn’t want to return online orders at physical stores. And a smaller part was because... clothes didn't fit after gaining the Quarantine 15. 

- __For customers,__ this is clearly a win. Your pile of "return" items has been growing for years since the psychological hassle is just too much to bear.
- __For companies,__ making customers happy and losing less money are wins. But it could be a slippery slope ("Amazon return fraud" is apparently a dark-web career).

Unslip

__Score one for brick-and-mortar...__ Ecommerce takes all the spotlight nowadays, but we often overlook the big, hidden costs of online shopping: returns. According to __[Shopify](https://robinhood.com/stocks/SHOP)__, online purchases are returned at least twice as much as physical purchases. According to others, they're returned *three to four times* as frequently. That's wasted time, effort, and money for companies. As return volumes hit record highs, that model just doesn't make sense for some businesses.  

The anti-return policy: Walmart and Amazon don't want your stuff back

__Gone in six Quibis (and back in three)...__  In October, __Quibi__ [announced](https://snacks.robinhood.com/newsletters/7oAUli7UMHThk1zPsZgphL/articles/1YFRPlVRtVru6uD41Ujn2V) it was shutting down just six months after launching. The short video streamer had raised a ginormous $1.75B to bring star-studded original shows to your phone (Liam Hemsworth, Idris Elba, Chrissy Teigen — all Quibi'd). The hype was real, but the cruel reality was realer (it flopped). While Quibi is dead, its content is being reincarnated... *in the body of a streaming dongle*.

__If content is king...__ then __Roku__ just got a royal deal. The popular streaming device company has acquired the rights to 75+ Quibi shows, to be streamed exclusively on its free, ad-supported "Roku Channel." Sure, Quibi had some questionable content (see: show about a woman with a [golden arm](https://news.avclub.com/we-need-to-talk-about-the-golden-arm-episode-of-quibi-1842886592), show about a [sex doll](https://decider.com/2020/04/16/anna-kendrick-sex-doll-dummy-quibi-trailer/) come to life). But it splurged on HBO-level production quality and A-list stars, so Roku's getting a sweet deal:

- __$1.1B:__ How much Quibi spent on content in the first year, topping out at $100K *per minute* for the priciest shows.
- __Less than $100M:__ How much Roku [reportedly](https://www.wsj.com/articles/roku-acquires-rights-to-quibi-s-content-11610116056) paid for all that Quibi content. 
- __For reference:__ Netflix [spent](https://deadline.com/2020/01/netflix-spending-on-content-set-to-climb-past-17b-in-2020-analyst-expects-1202832546/) more than $17B on original content in 2020 alone (you could probably tell from the *Bridgerton* set design).


_Roku's Golden Arm_

Streamy

__Roku is thriving on both sides of streaming...__ As "the People's Streaming Device" (aka: cheaper alternative to Apple TV), Roku is the leader in streaming hardware, covering over [50M](https://deadline.com/2021/01/roku-hits-51-million-active-accounts-streaming-hours-surge-2020-1234665590/) households. That's likely why its stock has nearly 3X'd in value over the past six pandemic months. But more than [70%](https://ir.roku.com/static-files/2148e434-58e4-48e1-bd1c-926862e3c21b) of its sales actually come from ad sales and subscriptions — and those are growing faster than hardware sales. By beefing up content on The Roku Channel — which has 40K+ movies and shows — Roku can make more ad money *and* sharpen its double-edge over streamers like Netflix. 


Quibi gets a new lease on life  (and Roku gets a great, ad-tastic deal)

📦  Amazon's anti-return policy 

__Still reeling...__  The nation was shaken Wednesday, when pro-Trump rioters stormed the US Capitol building, temporarily halting the certification of Joe Biden’s Electoral College win. Five people died during the attack, including a US Capitol Police officer. Trump was widely criticized for [stoking](https://www.vox.com/22220746/trump-speech-incite-capitol-riot) the insurrection, which struck at the cornerstone of American democracy. While the riot received bipartisan condemnation, Big Tech took unprecedented action...

- __[Twitter](https://robinhood.com/stocks/TWTR)__ went the furthest, permanently banning Trump and removing his tweet history. It [cited](https://blog.twitter.com/en_us/topics/company/2020/suspension.html) the risk that he could incite further violence (against Twitter Rules). 
- __[Facebook](https://robinhood.com/stocks/FB)__ locked Trump's FB and Insta accounts *at least* until January 20th (aka: Biden's inauguration) — and potentially indefinitely.
- __[Google](https://robinhood.com/stocks/GOOG)__ and  __[Apple](https://robinhood.com/stocks/AAPL)__ removed __Parler__, a right-wing-friendly “free speech” app, from their app stores. Then, __[Amazon](https://robinhood.com/stocks/AMZN)__ said it would no longer host Parler on its AWS cloud.
-  __[Shopify](https://robinhood.com/stocks/SHOP)__ permanently took down Trump's campaign merch store, while __[Paypal](https://robinhood.com/stocks/PYPL)__  [deactivated](https://www.cnet.com/news/paypal-and-shopify-remove-trump-related-accounts-citing-policies-against-supporting-violence/) an account that raised money for Trump supporters, some of whom traveled to the Capitol.
- __[Snap](https://robinhood.com/stocks/SNAP)__ locked Trump's account, while __Amazon__'s Twitch indefinitely banned Trump's streaming channel.

__Wall Street's two cents ...__ Twitter stock fell 5% for the week, even though the moves are likely to win Big Tech goodwill with the newly Democrat-controlled government (Dems have criticized Twitter for not moderating *enough*). More goodwill = potentially less regulation and Congressional grillings. But Twitter investors seemed [concerned](https://apnews.com/article/election-2020-donald-trump-media-michael-flynn-social-media-f41b11060d7703e3a3136ddb5eefa055) that the Trump ban could reduce usage and ad sales. 


_Twitter employee with the kill switch: "It's done"_

#Blocked

__The immense power and responsibility of Big Tech has never been clearer...__ First: in allowing misinformation to spread, bad actors to organize, and nearly anyone to have a huge platform. Second: in taking away that voice and reach in a matter of seconds, from a figure as significant as the US president. These tech bans are a reminder that a company like Twitter, with just 5K employees, wields disproportionate influence over world events. They also set a precedent for how the public will expect them to intervene moving forward.


Big Tech excommunicates President Trump — and Twitter bans him permanently 

__Diamonds on my (block)chain...__ __[Bitcoin](https://robinhood.com/crypto/BTC)__ topped $40K for the first time last week, more than *doubling* in a month. The epic rally was partly [driven](https://snacks.robinhood.com/newsletters/3LgF2GHrBcJKBJ4WJf1iwx/articles/2nXdL69aReUxvgeSTBY2ox) by institutional FOMO: companies like banks and hedge funds have been pouring into the crypto coin. Mainstream investors, who have more access to bitcoin than ever through fintech apps, also took part in the rally. While bitcoin tends to be volatile (read: crash-prone), some see it as a hedge against inflation: bitcoin's supply is capped at 21M coins, while the Fed’s money printers have been blasting out $$$ to stimulate the economy.

__Clean juice cleanse...__  Electric vehicles had a [moment](https://snacks.robinhood.com/newsletters/14Hg085xWwEvJnaWbkrQrd/articles/4UtTPkEjyCpP3Ry2vGbqHG) last week with a flurry of milestones. __[Nio](https://robinhood.com/stocks/NIO)__, the so-called "Tesla of China," said its 2020 deliveries more than doubled from a year ago to ~44K. __[Tesla](https://robinhood.com/stocks/TSLA)__ (the "Tesla of Tesla") delivered a record-breaking ~500K cars last year. Meanwhile in Norway, electric cars outsold gas and hybrid models for the first time in 2020. In the UK, EV sales nearly tripled while total auto sales hit the lowest level since 1992. 


Highs

Who's up...

__I sink, therefore I am...__ While the __[S&P 500](https://learn.robinhood.com/articles/7kFFEUv46vmMCmMfLuNiRX/what-is-the-s-and-p-500/)__  was busy hitting record highs, __[Carnival](https://robinhood.com/stocks/CCL)__ dropped the anchor. Shares of the world's largest cruise company fell 5% for the week, after three of Carnival's cruise lines pushed back sail dates to follow government protocols. Still, the cruise operator seems upbeat about its advanced bookings for 2021, and the stock has rallied 50% since November. BTW: Carnival is dropping earnings today — analysts are [expecting](https://www.forbes.com/sites/jonathanponciano/2021/01/08/carnival-delta-and-3-other-big-names-ravaged-by-shutdowns-report-earnings-next-week-heres-what-to-expect/?sh=37222f179580) sales to be down a whopping 97% from last year. 

__Hitting reverse...__ The pace of jobs recovery has been [slowing](https://snacks.robinhood.com/newsletters/zVG8BBoAxAmMC9XSil04c/articles/6oRNWLHX5ImjkATSKIBZu3/) for months, but now the US is actually *losing* jobs again: the US economy [shed](https://www.cnbc.com/2021/01/08/jobs-report-december-2020.html) 140K jobs in December, the first monthly net loss since April. Hospitality accounted for most of that as Covid cases surged. Bars and restaurants got hit hardest, losing nearly 400K positions as California banned outdoor dining. The unemployment rate remained flat from November at 6.7% (nearly double the pre-pandemic rate). But investors shrugged off the report, looking ahead to vaccines and more stimulus.


Lows

...and who's down

🛑  Big Tech blocks Trump 

__Off the (block)chain...__ Yesterday, __[bitcoin](https://robinhood.com/crypto/BTC)__ [topped](https://www.cnbc.com/2021/01/07/bitcoin-btc-rally-extends-price-hits-record-high-above-37700.html) $40K for the first time, more than doubling in value in the span of a month. The record price pushed the total value of the cryptocurrency market above $1T (also a first) — bitcoin makes up around $700B of that, and has nearly 5X'd over the past year.

__Call it institutional FOMO...__ Bitcoin was launched by the mysterious "Satoshi Nakamoto" in 2009. But it really took off in late 2017, when it tripled from September to December — *but then fell back down to earth*. That rally was mainly driven by individual retail investors (and their FOMO). This time around...

- __Big institutional investors__ like banks and hedge funds got the FOMO bug, too. MassMutual Life Insurance [invested](https://www.coindesk.com/massmutual-buys-100m-bitcoin-bets-on-institutional-adoption-with-5m-nydig-stake) $100M in bitcoin just last month. But that's not all...
- __Mainstream investors__ have more access to bitcoin than ever, with fintechs like __Robinhood__ (aka: us), __Coinbase__, __[Square](https://robinhood.com/stocks/SQ)__, and now even Venmo-owner __[Paypal](https://robinhood.com/stocks/PYPL)__ offering crypto trading. Paypal also [announced](https://snacks.robinhood.com/newsletters/7oAUli7UMHThk1zPsZgphL/articles/64Xxtjw5EU6eAofxqGMVa3/) plans to let users shop/pay at 26M merchants with crypto.
- __Well-known investors__ like Paul Tudor Jones  have come out as "bitcoin believers," inspiring bit-confidence in retail and institutional investors alike. 


__Bitcoin's superpower = anti-inflation...__ While bitcoin tends to be volatile and crash-prone, some investors see it as a hedge in case the US dollar loses too much value and prices soar (aka: inflation). ICYMI: The Fed’s money printers have been blasting out dollars to inject back into the economy. More dollars = less demand for dollars = less valuable dollars = potential inflation — oh, and the national debt is at [$27.7T](https://www.usdebtclock.org/). Meanwhile, bitcoin's supply is capped: today, about 18.5M bitcoins have been [mined](https://snacks.robinhood.com/newsletters/3E2MYqmOkTAKbBTKPPKQw7/articles/3CV4hFZKvcQZUVRww3ZloG) out of the 21M that will ever be created (by 2140). But in theory, cash can be printed endlessly, increasing the risk of inflation.


Bitcoin's Big $40K: we're breaking down possible reasons for the epic rally

__Diamonds on my Roblox...__ Online gaming company __Roblox__  just [raised](https://www.cnbc.com/2021/01/06/roblox-raises-520-million-ahead-of-planned-direct-listing.html) $520M from private investors ahead of its public debut, leveling it up to a $29.5B valuation — that's more than 7X its February 2020 valuation. If you haven't heard of Roblox, that's probably because you're over the age of 15. It's basically the YouTube of user-created games, except it also lets you play/chat with friends.  Roblox launched in 2006, but *exploded* in 2020:

- __[~75%](https://www.cnn.com/2020/10/27/tech/roblox-explainer/index.html) of American kids ages 9 through 12__ now play Roblox. Homebound tweens flocked to the platform for virtual playdates and b-days.
- __Roblox now has more than 31M *daily* users,__ up from 18M in September 2019. It's still losing money, but sales grew 68% in the first three quarters of 2020 (from the same period in 2019).

__*But how does it make those Ro-bucks?*...__ With Robux. While games are free, kids pay for virtual currency to upgrade their avatars or get super powers.  When someone spends in-game, Roblox gives a [24.5%](https://developer.roblox.com/en-us/articles/developer-economics) cut to the game's developer. In exchange for all of that content, Roblox shoulders the app store and cloud hosting costs, providing a free (popular) platform to develop games.


_Roblox's non-target audience_

Play(date)

__IPOs are losing points...__ Roblox was *planning* to go public through a traditional IPO. Then it watched __[Airbnb](https://robinhood.com/stocks/ABNB)__ and __[DoorDash](https://robinhood.com/stocks/DASH)__ shares [open](https://snacks.robinhood.com/newsletters/3dRtKJ3pIUtnX1yDSLVTJY/articles/47zqImTPv4BiAjpmDbiqv4) on the stock market at roughly *double* their IPO prices, and said "no thanks." Companies that are going public only raise money when they sell to VIP investors in the IPO — so Airbnb and DoorDash didn't benefit directly when their shares soared *post*-IPO (if anything, they lost out). So Roblox has chosen to use a rare Direct Listing, where no new shares are created. This cheaper, faster option is [becoming](https://snacks.robinhood.com/newsletters/5v5XVtc1gTDCrGNZIuANTa/articles/4melLm5tbEOhCjxLIJrNEi/) more common as IPOs lose favor. 


Roblox makes video games differently — now it's going public (differently)

💰 Bitcoin's big $40K  

__Run it back...__ In the November elections, the state of Georgia went to Biden. But the Senate race went into overtime: a Georgia candidate needs to win over 50% of votes before advancing (*it's a Georgia thing*). That didn't happen, so we had runoff elections between the top-voted candidates this week. TLDR: Republicans had to win one seat to control the Senate, and Democrats needed two — the Dems unexpectedly took both.

__November feels like eons ago...__ Back then, we were pretty sure Republicans would end up taking the Senate. That got Wall Street [excited](https://snacks.robinhood.com/newsletters/7jMUu1TK8PviqbKCFjQhjC/articles/fANoLk3xN0eAS9EJKw0qr/) about a divided government (round 2). 

- __The S&P 500 soared__ 11% in November on the tech rally, *and* the decreased chance that Trump's tax cuts would get undone.
- __Tech stocks jumped__ because a divided Congress makes it harder to pass legislation against Big Tech (or any legislation). Health care stocks shared the joy. 
- __Pot stocks *fell*__ because a Republican Senate makes legalization at the federal level unlikely. 


Elect

__Yesterday, we saw "The Undoing"...__ A partial reversal of November's market moves (not the HBO show). The tech-heavy __[Nasdaq](https://learn.robinhood.com/articles/1GXPrecRfkSNp0aBblBSsL/what-is-the-nasdaq/)__ index dropped on regulation fears, while pot stocks like __[Aurora](https://robinhood.com/stocks/ACB)__ and __[Canopy](https://robinhood.com/stocks/CGC)__ surged on legalization hopes. The __[Dow](https://learn.robinhood.com/articles/13urVTf3GSQYdsr7Eq5fHL/what-is-the-dow/)__ jumped to a record high, led by banks and industrial companies like __[Caterpillar](https://robinhood.com/stocks/CAT)__ — which could benefit from more stimulus and the Dems' $1.5T infrastructure plan. What investors really have their eye on: *more stimulus money*, which could be a priority for the Dem-controlled Congress.


What the Georgia election results could mean for the stock market

__*"Ooh girl, shock me like an electric"*...__ wheel. Electric vehicles are having a moment this week with a flurry of milestones from around the globe: 

-  __China:__  EV sales from January through November jumped more than 4% from a year ago, while overall car sales fell nearly 8%. __[Nio](https://robinhood.com/stocks/NIO)__, the so-called "Tesla of China," said its deliveries more than doubled from a year ago to ~44K vehicles.
-  __US:__ __Rivian__, the __[Amazon](https://robinhood.com/stocks/AMZN)__-backed electric truck startup, is reportedly close to raising funds at a sweet $25B valuation. Meanwhile, __[Tesla](https://robinhood.com/stocks/TSLA)__ (the "Tesla of Tesla") delivered a record-breaking, expectation-beating 180.5K cars last quarter, for a 2020 total of nearly 500K (up from 367.5K in 2019). 
-  __Norway:__ EV sales [rose](https://www.reuters.com/article/autos-electric-norway/electric-cars-rise-to-record-54-market-share-in-norway-in-2020-idINKBN29A0ZL) to a record 54% market share in 2020 — the first year electric cars outsold gas and hybrid models. Sadly for Elon, __[Volkswagen](https://robinhood.com/stocks/VWAGY)__ replaced Tesla as the top EV producer in the country.
-  __UK:__  Electric cars had their "best-ever year" — EV sales nearly tripled while UK auto sales as a whole hit the lowest level since 1992.

__Ludicrous...__ While the rise of EVs is old news, this week's headlines prove what a remarkably good year 2020 was for the electric market.

_EV makers rolling into 2021 like..._

__Politics could make 2021 the Year of the EV...__ The top two barriers to EV-buying are range-anxiety and price. A Democrat-controlled Senate could pass legislation supporting EV cost incentives and infrastructure (think: more charging stations). Top Senate Democrate Chuck Schumer has already [proposed](https://www.reuters.com/article/us-autos-emissions-congress/senate-democrat-schumer-proposes-plan-to-swap-gas-cars-for-electric-vehicles-idUSKBN1X403N) a $454B 10-year plan to offer cash vouchers for EV purchases. That, coupled with swiftly-falling battery prices, could make 2021 the Year of the EV.

From Tesla to Nio, electric vehicles are having a global moment 

🚘  Tesla, Nio, and the "Year of the EV"

__Nano vibes...__ Podcasts are as old as the 2004 iPod — the term is actually a mashup of "iPod" and "broadcast." But the Big Pod Boom came more recently: global monthly podcast listeners grew from 287M in 2016 to 1B+ in 2020 — and they're [expected](https://www.theguardian.com/media/2019/mar/30/podcastings-netflix-moment-the-global-battle-for-domination) to hit 1.85B in 2023. Audio streamers can profit more from pods than from songs, since they don't have to give record labels a cut. That's partly why: 

- __[Spotify](https://robinhood.com/stocks/SPOT)__ has shelled out $700M+ over the past two years to buy pod-related companies like __The Ringer__ and __Parcast__.
- __[Apple](https://robinhood.com/stocks/AAPL)__, the pod OG,  is [reportedly](https://www.bloomberg.com/news/articles/2020-05-21/apple-ramps-up-original-podcasts-in-part-to-help-promote-tv?sref=q3KSFp38) amping up efforts to produce Apple-original podcasts. It now hosts over [1M](https://mashable.com/article/apple-one-million-podcasts-milestone/) podcasts, nearly double from 2018.
- __[Amazon](https://robinhood.com/stocks/AMZN)__ is snatching up podcast network __Wondery__ to make Amazon Music more pod-pular.

__@ me (in my ears)...__ Now __[Twitter](https://robinhood.com/stocks/TWTR)__ is [buying](https://techcrunch.com/2021/01/04/twitter-acquires-social-podcasting-app-breaker-team-to-help-build-twitter-spaces/) social pod app __Breaker__, which lets users comment on episodes and follow friends. The actual Breaker app is getting shut down this month, and Twitter is getting Breaker's staff and tech (so: more like an acquihire). It'll use the fresh talent to help with its new audio-based social project, "Twitter Spaces." Because we can't wait to hear Twitter out loud.


_Trolls World Tour, or Twitter Audio Spaces?_

Podular

__Podcasting needs a social breakthrough...__ Podcasts have communities of listeners, but they're one-way convos. You have to go to a social network (cough, like Twitter) to try to engage. Barely $1B/year is spent on pod ads, because targeting on pods is way less precise than social targeting. *If* Twitter's audio Spaces can can bring social + pods together, that could significantly boost ad sales both for pods and for Twitter.


Twitter buys "social podcasting" app Breaker to help build its audio platform

__*Phew*...__ __[Alibaba](https://robinhood.com/stocks/BABA)__ stock jumped ~6% yesterday on news that its multibillionaire founder Jack Ma is [reportedly](https://www.cnbc.com/2021/01/05/alibaba-founder-jack-ma-is-laying-low-for-the-time-being-not-missing.html) just lying low — *not missing*. Ma hasn't been seen in public since November, when he missed an appearance on... his own TV show. Ma went from being the only guy who [couldn't](https://www.cnbc.com/2017/08/09/lesson-alibabas-jack-ma-learned-after-being-rejected-for-a-job-at-kfc.html) land a job at KFC, to one of the most well-known businessmen in the world — with a $650B company to boot (Alibaba, aka: "Amazon of China"). But now his "babies" are in trouble...

- __Ant:__ In November, Ma's huge fintech __Ant Group__ was set to go public in the largest IPO *ever.* Unrelated: Ma publicly [criticized](https://www.cnn.com/2021/01/04/tech/jack-ma-alibaba-ant-group-intl-hnk/index.html#:~:text=At%20a%20conference%20in%20Shanghai,risks%20is%20to%20kill%20innovation.) Chinese regulators for essentially killing innovation. Related: Chinese regulators indefinitely [suspended](https://snacks.robinhood.com/newsletters/3Y16VU6wsQpOaP5bwzUgFf/articles/10lyNbTzg1HbB3563ygUqe/) Ant's IPO (#squashed).
- __Baba:__ Last month, China [launched](https://www.bloomberg.com/news/articles/2020-12-24/china-launches-probe-into-alibaba-over-monopoly-allegations?sref=q3KSFp38) an anti-monopoly probe targeting Alibaba, which owns 33% of Ant.

__B(old) choice of words...__ China was likely not thrilled to have its financial regulations referred to as "an old people's club" — which Ma [reportedly](https://www.entrepreneur.com/article/362663) did at that fateful conference in Shanghai. But comments like that aren't illegal, and can't be the basis for a suspended IPO or an investigation... *Or can they*?


Baba

__Chinese companies' #1 stakeholder = the Chinese gov’t...__ Alibaba has over 750M customers, and Ant has over 1B users. This story is a reminder that no matter how huge a company gets, China doesn't necessarily need to justify itself to reign it in. If anything, the massive scale of those companies can make China even more keen on keeping a hand on the wheel: [according](https://www.wsj.com/articles/china-eyes-shrinking-jack-mas-business-empire-11609260092#:~:text=Beijing%20is%20seeking%20to%20shrink,oversight%20of%20an%20increasingly%20influential) to Chinese officials, Beijing is trying to shrink Ma's empire and potentially take a larger stake in his businesses.


Alibaba's Jack Ma may not be missing, but his companies are feeling the heat

🎙 Twitter's pod-cquisition

__*Not a travel credit card*...__ Discovery+ is the new streamer from __[Discovery](https://robinhood.com/stocks/DISCA)__, whose networks include family favorites like: Food Network, Animal Planet, HGTV, and of course... Discovery Channel. It's known for cranking out classic reality shows that you actually watch on normal TV. Like: *Shark Week*, *Extreme Makeover: Home Edition*, and *90 Day Fiancé*.

- __Discover+__ [launched](https://techcrunch.com/2021/01/04/discovery-plus-launch/) in the US on Monday for $4.99/month (or $6.99 ad-free). And it'll be free for some __[Verizon](https://robinhood.com/stocks/VZ)__ subscribers.
- __Discover's CEO calls it__ “the perfect companion for every household’s streaming and TV portfolio.” *But will it land a coveted spot on our rosters?*

"__You may say, I'm a streamer...__ *but I'm not the only one*." We’ve reached a level of streaming saturation where one service just isn’t enough: [70%](https://www.forbes.com/sites/tonifitzgerald/2019/03/29/how-many-streaming-video-services-does-the-average-person-subscribe-to/?sh=dbd952263012) of US households have *at least* one video subscription. 

- __Streamers aren't vying for monogamy__ —  The average American subscriber watches 3.4 services, spending $29/month on video streaming. Buuut...
- __Our "streaming portfolios" have limited spots__, while the limit for new streaming services apparently does not exist (#subscripturation). So the competition is aggressive. 

"_The limit does not exist" (for new streaming services)_

Plus

__Streamers need QQE to succeed...__ that's quality, quantity, and exclusivity. __[Netflix](https://robinhood.com/stocks/NFLX)__ and __[Disney](https://robinhood.com/stocks/DIS)__ have high QQE factor: top notch content, *a lot* of it, and exclusive shows/movies (think: Netflix-only originals). Apple TV+ and Prime Video — not so much. But Discovery might bring the trifecta: It owns some of the most-watched cable shows in the US (Quality). It'll offer more than 55K episodes on Discovery+, including content from other networks (Quantity). It also plans to launch 1K hours of original programming in the first year, like *90 Day Fiancé* spinoffs and Bobby Flay in Italy (Exclusivity).


Discovery+ is the latest player in the streaming wars — but does it have QQE?

__You could light up a town...__ Tell that to your significant other, or to __[General Electric](https://robinhood.com/stocks/GE)__'s ginormous wind turbine, which could (literally) light a small town on its own. 

- __Haliade-X:__ Sounds like a *Zenon: Z3* spinoff, actually a monster wind turbine in the Netherlands. GE's [testing](https://www.nytimes.com/2021/01/01/business/GE-wind-turbine.html) it for a new series of giant offshore turbines.
- __853 feet:__ How tall this thing is — the turning diameter is longer than two football fields. It's the largest wind turbine ever built. GE's planning to make more and stick them in oceans.

__Started from the microwave...__ Now we here. For most of its 128-year history, GE was an exemplary giant of American business. It was the longest-standing member of the exclusive [Dow](https://learn.robinhood.com/articles/13urVTf3GSQYdsr7Eq5fHL/what-is-the-dow/) index – until it got booted in 2018. GE stock has plunged ~75% over the past 10 years (largely why it got booted). But...

- __Haliade-X could bring greener pastures for old-school GE__. Wind turbines have the potential to replace the pollution-spewing plants that power our cities (read: future-friendly). 
- __Competitive advantage:__ Larger turbines produce more electricity, but also reduce the cost of building and maintaining wind farms. 
- __That makes Haliade-X attractive__ to wind farm developers, who are competing for contracts to supply countries with wind energy at the lowest price. 

Windy

__We’re at the start of a Green Rush...__ for clean energy. More than 110 countries have [pledged](https://www.un.org/press/en/2020/sgsm20411.doc.htm#:~:text=The%20United%20Kingdom%2C%20Japan%20and,to%20get%20there%20before%202060.) carbon neutrality by 2050, and big corporations like __[Amazon](https://robinhood.com/stocks/AMZN)__ have pledged to go carbon neutral by 2040 — __[Microsoft](https://robinhood.com/stocks/MSFT)__ is aiming for carbon-*negative* by 2030. All these governments and companies will need clean energy to achieve their green goals. GE is still pretty new to the offshore wind game. But if it can succeed in the (big) challenge of manufacturing and installing its turbines at scale, it could rise yet again.

General Electric's monster wind turbine could set it up for the Green Rush

💍 A reality streamer is born 

__Great cuddler, better bundler...__ *Claaassic* Hinge profile of Big Techies, from Apple to Adobe. Since Microsoft Office launched in 1990, software bundles have been the M.O. of tech heavyweights. Bundling = selling multiple services together for one price — generally, lower than they would cost individually. That's bad for smaller companies whose entire biz happens to be.... *one of those services*.

- __[Apple](https://robinhood.com/stocks/AAPL):__  In September, the Fruit [launched](https://snacks.robinhood.com/newsletters/1Y9lIHuvuotRAaGBx13qHH/articles/5EXUwgniIcrgHGoPpU0qe4/) its "Apple One" bundles. The premium tier includes Apple Music, TV+, iCloud storage,  *and* Fitness+ all for $30/month. That's a bundle of bad news for __[Spotify](https://robinhood.com/stocks/SPOT)__, __[Netflix](https://robinhood.com/stocks/NFLX)__, __[Dropbox](https://robinhood.com/stocks/DBX)__, and __[Peloton](https://robinhood.com/stocks/PTON)__ (in that order). 
-  __[Microsoft](https://robinhood.com/stocks/MSFT):__ The Office 365 Suite bundles classics like Word,  Excel, and (more recently) collaboration tool Teams. In July, __[Slack](https://robinhood.com/stocks/WORK)__ stirred up legal [drama](https://snacks.robinhood.com/newsletters/6511HaDUMXpAxjp2bEBL6w/articles/4ETsJdiwVFfNzB1Gt8Ozj0/) since the Teams bundle makes Slack basically unnecessary for companies that use Office. BTW: Slack is now getting purchased by notorious bundler __[Salesforce](https://robinhood.com/stocks/CRM)__ (ironic).

__Sliding into the DMs with that blue chipmark...__ Wall Street flex. "[Blue chip](https://learn.robinhood.com/articles/318gpFhr4GmPG5iUEQFhjd/what-are-blue-chip-stocks/)" tech companies can afford to bundle and undercut competitors on price. Last fiscal year, Microsoft made a massive $44B profit, while Apple took home a whopping $57B. But with great power comes great regulatory scrutiny: In 2020, Big Tech lawsuits and congressional hearings were as common as Baby Yoda memes (and way less cute). *One thing could ease that...*


2021: The Anti-Apple Force Awakens

__We need a "mixed tech" bundle...__ aka: the Anti-Apple Alliance. Smaller tech companies like Netflix and Spotify are successful because they do *one* thing really well — but they risk getting trampled by bundle-hungry Big Techies with way more products. Our wish: Netflix, Spotify, and Peloton partner to bundle their services under one monthly subscription fee. "Mixed tech" bundles could bring best-in-class products together to cement customer loyalty against Big Tech — and save us some $$$. PeloSpotiFlix, anyone?

We wish for "mixed tech" bundles (aka: The Anti-Apple Alliance)

__Different stacks of pancakes...__ Last month, food delivery leader __[DoorDash](https://robinhood.com/stocks/DASH)__ raised ~$3.4B in fresh cash during its IPO. After a splashy public debut on the NYSE, DoorDash now has a hearty [market value](https://learn.robinhood.com/articles/GByCbiOluG2kcWs1AF6m5/what-is-market-capitalization/) of $45B — nearly 3X its June valuation. But while food delivery has it sweet, brick-and-mortar restaurants have been served a different fate:

- __17% of US restaurants have closed__ due to the pandemic. That's more than [500K](https://spectrumlocalnews.com/nys/rochester/news/2020/12/10/nra-restaurants-closed-during-covid-19-congress-) restaurants of every type — from independent, to franchise, and chain — that have gone under.
- __All those closures__ represent millions of jobs lost in the food services industry, which is one of the [largest](https://www.entrepreneur.com/article/362231) employers in the US. 

__Something to Fribble over...__ The list of 2020 food chain bankruptcies is long, from __Ruby Tuesday__, to __Chuck E. Cheese__. Franchise operators weren't immune: __NPC International__, which owns over 1K Pizza Hut and Wendy's franchises, filed in July. __CFRA Holdings__, which runs 50 IHOP locations, went under in May. But bankrpucty doesn't necessarily mean closure...

- __Ice cream legend Friendly's__ [filed](https://www.cnbc.com/2020/11/02/friendlys-restaurants-parent-files-for-bankruptcy-announces-sale.html) for bankruptcy in November and sold itself for just barely $2M — but it's expected to keep nearly all of its 130 locations open. 
- __Sizzler__, which went bankrupt in September, also said it doesn't intend to close locations. *So we had an idea...*


__DoorDash should buy a bankrupt restaurant chain...__ like Friendly's, Sizzler, or even some IHOP locations. DoorDash could rescue the brand, modernize the menu, and create a local delivery/takeout hub. That would give it hundreds of food "distribution centers" in the suburbs, where it thrives — it could whip up classic Friendly's fare, *plus* other goodies for delivery. Instead of charging restaurants like Sizzler fees for each order, DoorDash would be a *member* of the restaurant community. That could transform it from the Big Bad Wolf to the Good Guy of food delivery.

We wish DoorDash would buy and rescue a restaurant chain

__Ubering to the Airbnb...__ and coordinating the Grubhub delivery for check-in — aka: tech saturation Level *Insanity*. __[Uber](https://robinhood.com/stocks/UBER)__ and __[Airbnb](https://robinhood.com/stocks/ABNB)__ have a lot in common: both are popular sharing platforms, both are used as verbs, and both crushed old-school industries (taxis + hotels). 

- __Since launching in 2009,__ Uber has expanded from rides to food delivery with Uber Eats — and it's now buying Postmates. We think it could do more.
- __Since launching in 2008,__ Airbnb has expanded from short-term rentals to long-term stays and "Experiences." Spoiler: we think it could do *way* more.

__5 stars for verb-iness...__ Uber and Airbnb don't actually specialize in rides and stays — their value is safety, convenience, and reliability (and the tech that powers them). Pre-2009, riding in a stranger's car was #1 on the list of things your parents said you shouldn't do. Now, many don't think twice about hopping into one at 1 am. Airbnb has made booking a stranger's condo as normal and predictable as ordering from Amazon (always stalk the reviews).


__Airbnb and Uber should go full horizontal...__ That is, they should expand to sharing and delivering *anything* (legal). With its trusted brand and platform, Airbnb could expand from home-sharing to "anything-sharing" — think: parking spaces, storage space, boats, and RVs. Uber has expanded from delivering people to delivering food. Now it's [dabbling](https://www.uber.com/newsroom/moving-more-of-what-matters-with-delivery/) with medication and package deliveries in select cities — we think it should go all-in on "delivery anything."

We wish Airbnb and Uber would let us share and order anything 

🧞‍♀️ 3 bold biz wishes for 2021 

__Corporate steps up...__ 2020 was a year of cries for change and tragic injustices. This raised our expectations of company leadership, and caused a seismic shift in how corporations view their responsibility to society. Companies that saw themselves as pure profit-makers started taking on the role of change-makers.  

__Racial Equality__: A series of deaths of Black Americans at the hands of police spurred months of protests across the US. On a single day in June, half a million people participated in demonstrations seeking justice for George Floyd, Breonna Taylor, and all Black lives. In addition to this massive civic reaction, corporations also took action, making [record](https://www.nytimes.com/2020/06/14/us/politics/black-lives-matter-racism-donations.html)-setting donations to racial justice groups across America.

- __58 of the 100 largest US companies__ [pledged](https://www.axios.com/fortune-100-companies-donations-racism-inequality-f2a53d37-e587-44f9-ab30-8efc0c088111.html) $3.3B by September, the largest amount in history ever committed to racial equity causes. Then, in October...
- __[JPMorgan Chase](https://robinhood.com/stocks/JPM)__ pledged a whopping $30B (~83% of its 2019 profit) over the next five years to help close the racial wealth gap.

__Diversity in the Workplace:__ Companies also made big moves toward more diversity in the workplace, starting with the corporate boardroom.

- __[Nasdaq](https://robinhood.com/stocks/NDAQ)__ pushed for SEC approval to create a significant board diversity rule for the ~3K companies listed on its exchange: include at least one woman on the board and a director who is a racial minority or who identifies as LGBTQ — or risk getting delisted.
- __[Goldman Sachs](https://robinhood.com/stocks/GS)__ said it would no longer ship IPOs of American companies that don't have at least one “diverse” board member.

__Environmental Causes:__ Companies stepped up their commitments to reducing environmental harm. 

- __[Microsoft](https://robinhood.com/stocks/MSFT)__ pulled an ambitious “carbon-negative,” pledging to remove all the carbon it has ever emitted since 1975.
- __[Amazon](https://robinhood.com/stocks/AMZN)__, __[AT&T](https://robinhood.com/stocks/T)__, __IKEA__, and __DHL__ – all companies with major delivery fleets – formed an alliance to pressure EV makers to scale electric delivery vans faster.

_Microsoft embarking to remove all the carbon_

Change

__“No comment” is no longer an option...__ For decades, corporations' only focus was returning value to shareholders through profits. In 2020, silence and inaction on important societal issues is no longer accepted — our expectations of companies’ responsibilities have changed. And in some cases, like Nasdaq's board diversity push, these companies can even act as de facto lawmakers.


Corporate social responsibility: when silence was no longer an option

🌳 Snacks Digested 2020: Trend #4

__*Life could be a dream*...__ but it's actually a tiny screen. To curb the spread of Covid, we stayed home. To curb our homebound isolation and boredom, we spent more time on apps than ever before. Mobile app usage [soared](https://www.appannie.com/en/insights/market-data/mobile-app-usage-surged-in-q3-2020) 25% from July to September compared to last year. We escaped the anxiety-inducing "real world" of 2020 by living through screens — AKA: *The Great App-scape*. 

__*From streaming games to Tinder games...*__ our screens entertained us. 

- __[Disney+](https://robinhood.com/stocks/DIS)__ gained nearly 74M subscribers in a year, and became the #3 free iPhone app of the year as you streamed "Hamilton" from the tub. 
- __Epic Games__ notched a $17B valuation thanks to your *Fortnite* addiction. Meanwhile, *Among Us* reportedly hit ~500M players in November — a mobile game record.

__*From post to post...*__ our social lives rested in the palms of our hands.

- __TikTok__ was the [most](https://9to5mac.com/2020/12/09/tiktok-most-downloaded-app/) downloaded app of 2020 (and the fastest-growing) — not to mention all the copycats, from Instagram Reels, to Snap's Spotlight. Speaking of...
- __[Snap](https://robinhood.com/stocks/SNAP)__'s daily users grew 18% to 249M, while the stock has nearly tripled in value this year.
- __[Match](https://robinhood.com/stocks/MTCH)__ watched it shares soar to all-time highs as you spent romantic evenings through on Tinder and Hinge (#loveatfirstswipe).

__*Apps became way more than an escape..*.__ they became central to our lives, from managing our money, to managing our mental health, to feeding ourselves.

- __Finance:__ Out of all categories, finance apps had the [fastest](https://www.flurry.com/blog/top-us-mobile-app-category-winners-losers-coronavirus/#:~:text=Since%20March%2C%20Flurry%20estimates%20that,and%20sudden%20lift%20is%20noteworthy.) growing usage compared to pre-pandemic levels: From __Robinhood__ to __[TD Ameritrade](https://robinhood.com/stocks/TD)__, investing apps saw record growth as millions of people started participating in the markets.
- __Relaxation:__ __Calm__ hit a $2B valuation as meditation apps provided some peace of mind in a zero-chill era and became go-to company perks.
- __Shopping:__ From __[Amazon](https://robinhood.com/stocks/AMZN)__ toilet paper rolls to __[DoorDash](https://robinhood.com/stocks/DASH)__ burrito bowls, our apps became our shopping carts. 


_Watching ESPN live.... live at the game_

Scroll

__The app life isn't going anywhere...__ When Steve Jobs [unveiled](https://www.youtube.com/watch?v=vN4U5FqrOdQ) the first iPhone in 2007, we didn't understand the massive potential behind those little square icons called "apps." Then the App Store launched in 2008... *and the rest is history*. The pandemic made us more app-attached than ever. While we might spend less time glued to our phones as things "normalize," 2020 made one thing clear: our mobile app-dependence is here to stay.


💻 Zoom's $1.75B stock sale

📦 Amazon's anti-return policy

🛑 Big Tech blocks Trump

💰 Bitcoin's big $40K

🚘 Tesla, Nio, and the "Year of the EV"

🎙 Twitter's pod-cquisition

💍 A reality streamer is born

🧞‍♀️ 3 bold biz wishes for 2021

🌳 Snacks Digested 2020: Trend #4

📲 Snacks Digested 2020: Trend #3