__Handmade fuzzy socks FTW...__ In a year of so much fear and uncertainty, we turned to familiar creature comforts to help us feel a little more at ease. Companies that were previously forgotten (or even ridiculed), shockingly rose up from the Wall Street shadows as relevant standouts:

__[Etsy](https://robinhood.com/stocks/ETSY)__ was a cultural punchline in 2019 — now it's a Wall Street darling with the second [best](https://www.nytimes.com/2020/12/08/business/etsy-masks-wall-street.html)-performing S&P 500 stock of the year. It was *the* best performing S&P stock, until __[Tesla](https://robinhood.com/stocks/TSLA)__ was added to the index in December (womp): 

- __From DIY boba kits__ to embroidered blankies, Etsy is the chicken noodle soup of ecommerce. But its stock has 4X'd this year, and no one's laughing now.
- __Etsy rode the ecommerce surge__, becoming a prime destination for handmade masks (a whopping ~54M sold since April). Etsy's total January to September sales *doubled* from last year.
- __The homespun, wholesome brand__ was a warmer alternative to __[Amazon](https://robinhood.com/stocks/AMZN)__ — and a way for people to support craft sellers and small businesses.

__[Crocs](https://robinhood.com/stocks/CROX)__ was famously known as the ugly shoe brand — then it had its 2020 Croc-star moment, riding a wave of star-studded collabs. While US footwear sales were down 20% this year, Crocs sales were *up* 48%, [according](https://snacks.robinhood.com/newsletters/3ETaAxVP4KQZkVr5EqT97i/articles/4liB0qYuC74MGOgivfe625) to an analyst. 

- __Crocs brought in record sales__ last quarter thanks to its comfort-first focus (and Justin Bieber). It's  thriving because functional = the new fashionable. 

__[Campbell Soup](https://robinhood.com/stocks/CPB)__ also made a shocking comeback in 2020: Campbell's canned soup sales *grew* after having fallen for nearly nine years straight. Pantry-staples like Campbell's became a hot commodity around the same time that TP disappeared (#memories). 

- __As we turned to familiar, affordable names__ for hoarding and stress snacking, sluggish old companies started growing again. 
- __Other comfort food honorable mentions:__ __[Kellogg](https://robinhood.com/stocks/K)__, __[Pepsi](https://robinhood.com/stocks/PEP)__, __[General Mills](https://robinhood.com/stocks/GIS)__, and __[Kraft](https://robinhood.com/stocks/KHC)__ (shoutout boxed mac & cheese).


_There goes the Crochead that I see each morning_

Comfy

__Comfy is the new cool...__ Moisturizer is the new bronzer, sweats are the new khakis, and craftmade is the new designer. The underlying 2020 trend: affordable comfort *is* the cool factor. With 10.7M Americans still unemployed and vaccines that won't be widely available until this summer, "comfort is king" could trend well into 2021.


The Rise of the Underdogs: when comfort became king

Dow Jones

S&P 500

Nasdaq

Bitcoin

🧶 Snacks Digested 2020: Trend #2  

__*Commuting to the fridge*...__ The excitement is palpable. In March, we realized home is where the heart is — and also *where the entire year is*.  Cue: "The House Hype." The best time to DIY-home improve is when you're home 24/7, so we invested in sprucing up our biodomes. We thought the hype might be slowing in May, but it barreled through the rest of the year. The House Hype wasn't just a hideaway — it was a necessary distraction.

__Home Improvement and Decor:__ *From $5 candles to $5K cloud couches*...

- __[Lowe's](https://robinhood.com/stocks/LOW)__ saw shockingly strong  growth as you repainted your kitchen (three times) — sales were up more than 30% for the past two quarters.
- __[Home Depot](https://robinhood.com/stocks/HD)__ said "same" and had its best quarter in 20 years, raking in *$38B* in sales from May to August as you *finally* changed the unhinged toilet seat.
- __[Restoration Hardware](https://robinhood.com/stocks/RH)__'s fancy profits soared on $1K faucet handles.

__Home Appliances:__ *From Chromebooks to bidets*...

- __[Best Buy](https://robinhood.com/stocks/BBY)__'s online sales more than tripled from May to August as you picked up your Nintendo Switch curbside.
- __[iRobot](https://robinhood.com/stocks/IRBT)__ sweeped up strong Roomba sales as compulsive cleaning became a national pastime.

__Home Delights:__ *From gardening to sourdough starters...*

- __[Netflix](https://robinhood.com/stocks/NFLX)__ added an insane 28M subscribers in nine months as we lived vicariously through its shows.
- __[Peloton](https://robinhood.com/stocks/PTON)__'s subscriptions and sales doubled for 2020 (and its stock 5X'd), as $2K spin bikes became the most expensive coat racks of the year.


"_I spruced up the place a bit"_

Home

__Revenge spending could be next...__ Our houses are decked out, we have enough Ross scented candles to last a lifetime, and the vaccine is expected to become broadly available by summer 2021. "Revenge spending" *outside* the home on things like vacays, concerts, dining, and non-stretchy clothes could be coming — aka: the anti-House Hype.

The House Hype: when home became the only destination

🏡  Snacks Digested 2020: Trend #1

__Like eliminating the DH...__ The SEC (aka the police *and* rulemaker of public stock markets), just [approved](https://www.wsj.com/articles/sec-approves-nyses-plan-for-new-ipo-alternative-11608665152) a new way for companies to go public — The "Primary Direct Floor Listing" (FYI, The __[New York Stock Exchange](https://robinhood.com/stocks/ICE)__ had asked for this.) And it includes the best of both worlds: Companies can raise money IPO-style and get the right price direct listing-style. 

- __It's IPO-ish:__ This lets companies create new stock and sell it to the public. They enjoy fresh cash to grow their business at the same moment they graduate from private to public.
- __It's direct listing-ish:__ Instead of paying big fees to investment banks to guide their Initial Public Offering (IPO), companies simply release their stock into the wild, letting the markets decide the price.

__Dilution, we have a problem...__ The major recent criticism of IPOs is that stock is getting mispriced by investment banks. Just this month, investment banks thought __[DoorDash](https://robinhood.com/stocks/DASH)__ and __[Airbnb's](https://robinhood.com/stocks/ABNB)__ stocks were worth $102 and $68, but they were off by 86% and 113%. The losers to these mis-pricings were the companies that sold stock for way less than they could have — that results in unnecessary dilution of their stocks.

Stocks

__This new way to IPO is bad for investment banks__... and the institutional investors who get special treatment with IPOs. Top i-banks earn hundreds of millions of $$$ in fees by advising IPOs — They're gatekeepers to public markets. Outspoken IPO-critic and VC investor Bill Gurley [thinks](https://www.cnbc.com/2020/12/22/bill-gurley-direct-listing-rule-change-will-end-traditional-ipos.html) this change will "unquestionably" lead to the end of traditional IPOs. Despite the news, stocks of the #1, #2, and #3 leading IPO banks rose yesterday: __[Goldman Sachs](https://robinhood.com/stocks/GS)__, __[Morgan Stanley](https://robinhood.com/stocks/MS)__, and __[Bank of America](https://robinhood.com/stocks/BAC)__. 


A new way for companies to go public could be the end of the IPO

__$18 for movie popcorn...__ ~$6B for the whole movie company. __MGM Studios__ is reportedly trying to [sell itself](https://www.wsj.com/articles/mgm-holdings-studio-behind-james-bond-explores-a-sale-11608588732) by betting on its #1 star: Content. We'd already heard that the movie studio was considering selling off *just* the latest *James Bond* movie earlier this year — now it's throwing in every prop on the set. Here are some of MGM's most entertaining money-making assets:

- __Iconic franchises:__ James Bond, Rocky, Pink Panther
- __Legendary Films:__ Terminator, Silence of the Lambs
- __Quality TV:__ *The Handmaid's Tale*
- *__Surprise:__* MGM Studios is also part-owner of *Survivor*

__This feels like a rerun...__ Because it is. In 2018, MGM's CEO tried to sell the studio for $6B to Apple — but then MGM fired him. Now with theaters closed, MGM's making *the same exact move*. If this sequel works, a $6B MGM sale would end happily with a payoff for its owners __[Comcast](https://robinhood.com/stocks/CMCSA)__, __[Sony](https://robinhood.com/stocks/SNE)__, and a cast of private equity firms. For context, Disney bought Marvel and Lucasfilm for $4B each in 2009 and 2012.


"You want a whole movie studio for Christmas?"

Flick

__In the Streaming Wars, content has never been more king...__ Unlike MGM's first attempt to sell itself two years ago, you now face a dozen streaming options (HBO Max, Hulu, Disney+... we could go on). To catch up to Netflix's deep content library, a newer streamer could spend years starting from scratch by producing new characters, shows, and movies — or acquire a lineup of beloved franchises. Looking at you, Apple TV+ (and Apple's got the cash).

Hollywood studio MGM explores selling itself for around $6B

🎬 A $6B James Bond gift

__Biker pro tip...__ *Always splurge on the wheels*. __[Peloton](https://robinhood.com/stocks/PTON)__ is dropping $420M on __Precor__, a stationary bike-maker. Precor's an unsexy combo of 625K-sq-feet of manufacturing space *and* 100 Research & Development employees — but the strategic purpose powered Peloton stock up 12% to an all-time high (get them a mid-ride shoutout, @[Toussant](https://www.onepeloton.com/instructors/bike/AlexToussaint)).

__"Biggest impediment to growth"...__ [That's](https://www.cnbc.com/2020/12/22/peloton-pton-stock-on-track-to-hit-record-high-on-precor-deal.html) what one analyst calls Peloton's inability to make its own bikes to meet demand. We call it a hill. Peloton stock is already up over 400% in 2020, but "not-being-able-to-make-enough" is problem #1 (there's still a months-long backorder). With Precor, Peloton buyers will (ideally) not wait as long between bragging about ordering a new bike and actually riding it.

Peloton just snagged another assembly line

Ride

__Peloton's unlocking the power of vertical integration...__ The ability for a brand to vertically integrate, owning its entire supply chain, can control success or failure. Direct-to-consumer icon __[Casper](https://robinhood.com/stocks/CSPR)__ warned it isn't vertically integrated, leading to long mattress waits that result in lower sales. Peloton's splurging on vertical integration to avoid that.

Peloton jumps 12% after a $420M bike purchase

__You're guilty, too...__ We already know the biggest villain of the terrible opioid epidemic that ripped apart families and took hundreds of thousands of lives across America: __Purdue Pharmaceutical__. The fines and penalties coming to the OxyContin manufacturer (and Sackler family behind it) [forced](https://www.statnews.com/2019/09/16/if-purdue-pharma-declares-bankruptcy-what-would-it-mean-for-lawsuits-against-the-opioid-manufacturer/) their bankruptcy last year. Out of nowhere, another villain:

- __The US Justice Dept [sued](https://www.justice.gov/opa/pr/department-justice-files-nationwide-lawsuit-against-walmart-inc-controlled-substances-act) [Walmart](https://robinhood.com/stocks/WMT) yesterday__, alleging it helped fuel the crisis (and fuel Walmart profits) because prescriptions were filled too easily at Walmart pharmacies.
- __Walmart's response: The government's embarassed.__ Instead of owning up to failed regulation, they're looking for a scapegoat in Walmart.

__76 prescriptions for every 100 Americans...__ That's the average [ratio](https://www.cdc.gov/drugoverdose/maps/rxrate-maps.html) that 200M+ addictive opioids were dealt out annually from 2006-2016 (it's down since, but still very high). We already know the drug company and tons of doctors who played a role in over-prescribing nationwide. Now Walmart's 5K in-store US pharmacies are under the spotlight.

Sued

__Cut corners, make profit...__ The lawsuit basically says that Walmart [handed out](https://www.wsj.com/articles/u-s-sues-walmart-alleging-role-in-fueling-opioid-crisis-11608661856?mod=hp_lead_pos1) opioids willy nilly, without following proper rules & regs. Walmart stock fell about 1.5% yesterday as it pledged to fight this allegation in court (lawyers are expensive, too). But mainly it's bad PR, a distraction from the company's core biz, and could result in huge fines or penalties.

The US Government sues Walmart for (allegedly) fueling the opioid crisis 

🚴‍♀️ Peloton's new muscle

__You got iOS jumper cables?...__ Someone at __[Apple](https://robinhood.com/stocks/AAPL)__ does. Tim Cook is reportedly [building](https://www.reuters.com/article/us-apple-autos-exclusive/exclusive-apple-targets-car-production-by-2024-and-eyes-next-level-battery-technology-idUSKBN28V2PY) a ridiculously techy personal automobile, according to Reuters. It's a shocker, because Apple's first car attempt, "Project Titan" (bold name), began in 2014 and crashed in 2019. Here's the update:

- __When can iDrive?:__ Apple's reportedly targeting 2024.
- __What's so special about it?:__ The battery. Apple's game-changing juice will last longer and charge faster. 
- __Who builds it:__ Not Apple. Just like iPhones, which are made by Chinese manufacturing giant Foxconn, Apple would likely outsource manufacturing (TBD to who). 

__Apple's a $2T company...__ so rumors of an Apple car in four years didn't budge the stock. But Apple's apparently going to buy Lidar sensors to make this thing self-driving. This would be a dream deal for Lidar companies __[Velodyne](https://robinhood.com/stocks/VLDR)__ and __[Luminar](https://robinhood.com/stocks/LAZR)__ — their stocks [jumped](https://www.cnbc.com/2020/12/21/lidar-stocks-soar-after-report-that-apple-is-working-on-a-car-for-2024.html) 23% and 27% as investors fantasized about which could get Apple's rose.

"So if Apple makes a car, do I need a new charging dongle?"

Jolt

__Car-making measures time in years...__ Apple is the richest company in the world, with more cash on hand than many countries. But the average car includes [30K](https://www.toyota.co.jp/en/kids/faq/b/01/06/) parts. Even if Apple's magically simple design can cut that in half, this is more complex than adding an 8th camera to an iPhone 14. It's usually five to 10 years between starting a car design and getting it mass produced for the road. Never forget: It took Tesla *17 years* to find its first profit. 

Apple's car project is reportedly back on (ETA 2024)

⚡️ Apple's iCar is alive 

__The stimulus, Round #1...__ When lockdowns hit full force nine months ago, the economy suffered: a staggering ~22M Americans lost their jobs between March and April, and the unemployment rate soared to 14.7% in April from 3.5% in February. The US government [moved](https://snacks.robinhood.com/newsletters/CLl0evxvaKPwXSPACmU6C/articles/jtOWtkujqwVzIeEa8NYkj) quickly to provide financial medicine, in the form of a massive $2T economic rescue package. 

- __That helped drive a swift recovery,__ but now the pace of financial healing has dramatically slowed.
-  __Meanwhile:__ 10.7M Americans are still unemployed, [~8M](https://www.cnbc.com/2020/12/20/mcconnell-says-congress-has-agreed-to-900-billion-coronavirus-stimulus-deal.html) have fallen into poverty since June, and Covid cases are soaring in a 3rd wave. 

__The stimulus, *Reloaded*...__ Nine months after the first stimulus was passed, Congress has *finally* [agreed](https://www.cnbc.com/2020/12/20/mcconnell-says-congress-has-agreed-to-900-billion-coronavirus-stimulus-deal.html) to pass another (smaller) stimulus bill. Here's what's likely included in the nearly [$900B](https://www.cnn.com/2020/12/20/politics/stimulus-latest-shutdown-deadline/index.html) package:

- __Checks:__  Direct payments of $600 to many American adults, and in some cases an extra $600 per dependent child.
- __Boosted unemployment:__ An extra $300/week in unemployment benefits for at least 10 weeks.
- __Business aid:__ At least $300B in small business assistance, including PPP loans.
- __Healthcare funding:__ Funds for distributing the two FDA-approved Covid-19 vaccines, and relief to overwhelmed hospitals.


_The Stimulus (finally) Reloaded_

Check

__Small businesses lost big in 2020...__ While the Payroll Protection Program was intended to help mom-and-pop shops, it was bigger businesses who benefited most. More than half of the ~$525B in PPP loans doled out through November went to just 5% of the 5M total recipients. Most of the loan money was given to larger businesses, [according](https://www.forbes.com/sites/jonathanponciano/2020/12/02/new-ppp-loan-data-reveals-most-of-the-525-billion-given-out-went-to-larger-businesses-some-with-trump-kushner-ties/?sh=60d231965a43) to *The Washington Post.*  ~100K businesses have permanently shutteredsince lockdowns. Meanwhile, 45 of the 50 largest US companies have been profitable since March. Small businesses badly need this 2nd stimulus — hopefully it'll be more helpful than the first.

The second stimulus: what's likely included in the much-needed $900B package


__Ludicrous Mode 500...__  Today, __[Tesla](https://robinhood.com/stocks/TSLA)__ is [joining](https://snacks.robinhood.com/newsletters/rQUWmLLXMpM5qdWBv9Eap/articles/2HouhgfCwSO1yiJ7D7X3Dj) the famous [S&P 500](https://learn.robinhood.com/articles/7kFFEUv46vmMCmMfLuNiRX/what-is-the-s-and-p-500/) index, which tracks the stocks of the 500 most valuable US public companies. People use it like a "scoreboard" for how the overall market is doing. Big BTW: over *$11T* is invested in mutual funds and ETFs that track the index. Fund managers have been buying up Tesla shares for their S&P-tracking funds — that's likely why Tesla stock [soared](https://www.cnbc.com/2020/12/18/tesla-jumps-6percent-in-heavy-volume-sees-wild-trading-volume-more-than-130-billion-worth-of-stock-changes-hands-ahead-of-sp-add.html) 14% for the week to a record high. 

__Double high...__  Literally. __[Tilray](https://robinhood.com/stocks/TLRY)__ and __[Aphria](https://robinhood.com/stocks/APHA)__ are [combining](https://snacks.robinhood.com/newsletters/34slcnoYqMAzLWagvGk157/articles/6rCjPediUQoEmp56DbbJTH/) to create Earth's largest pot company (by sales). The new company will keep Tilray's name (#MarriageFlex). Tilray shares jumped 14% for the week. The merger will help expand reach in Europe and the US, where more pot legalization is likely. Despite their soon-to-be "world's largest weed company" status, Aphria and Tilray make less than $700M in sales per year *combined* — less than Juul's sales in 2018. Cannabis is like freshman year Harry Potter: gets all the attention, but hasn't really done much yet.


Highs

Who's up...

__You Yougled GooTube...__ Must be the stress. __[Google](https://robinhood.com/stocks/GOOGL)__ shares ticked down for the week after it was [served](https://www.cnbc.com/2020/12/18/google-antitrust-cases-in-us-and-europe-overview.html) a hearty plate of antitrust salad. Ten states sued Google on Wednesday, accusing it of running an illegal digital ad monopoly. Then, on *Thursday*: 38 states joined an antitrust lawsuit that alleges Google used anti-competitive tactics to protect its search monopoly. For example: by paying __[Apple](https://robinhood.com/stocks/AAPL)__ billions to be the default search engine on iPhone. If Google loses the suit, it might have to split off its Search biz.

__Niet good...__ __[SolarWinds](https://robinhood.com/stocks/SWI)__' network-monitoring software is used by multiple US federal agencies and most Fortune 500 companies. Usually, that's a major flex — now, not so much: last week, we learned that SolarWinds' software was [hacked](https://snacks.robinhood.com/newsletters/2Thtg4B9qZXhrZAZGa7zsI/articles/5tPnOlTtebqIfw6x6XFniM/) (likely by Russia). That led to a breach of the US Treasury and Commerce departments, and possibly the Department of Homeland Security (yikes). SolarWinds stock plunged 40% for the week, while cybersecurity stocks like __[FireEye](https://robinhood.com/stocks/FEYE)__ (which was also hacked) soared.


Lows

...and who's down

💰 Stimulus Round #2 

__Like the CIA of processed sugar...__ The six-person team that comes up with limited-edition Oreo flavors has top secret security clearance (at its parent company, snack legend __[Mondelez International](https://robinhood.com/stocks/MDLZ)__). The team is so secretive, that Mondelez [refuses](https://www.nytimes.com/2020/12/16/style/oreo-flavors.html) to even say what it's called. 

- __Their job:__ Flavor innovation. Since 2012, they've launched 65 Oreo flavors including: Jelly Donut, Waffle & Syrup, Crispy Tiramisu, Pina Colada, and in China... *Hot Wings*.
- __Their mission:__ Excite love for the 108-year-old Oreo. A Wasabi Oreo might not be your go-to, but it's provocative – *it gets the people going*.

__The proof is in the (double) stuffing...__ The not-so-secret goal of Oreo's secret flavor team: drive shoppers back to the plain old Oreo (aka: milk's favorite cookie). Niche flavors and tweet-worthy collabs are meant to help people rediscover the OG favorite. And the strategy seems to be working: 

- __Sales of specialty Oreos__ have jumped more than 12% over the last three years. During that same time, sales of *classic* Oreos soared over 22%. 
- __~15% to 20% of Oreo sales__ came from shoppers who were new to the brand, according to estimates from Mondelez's CEO. 

_Creating the next Oreo flavor..._

Stuffed

__It's the LVH effect...__ The Limited Viral Hook. When Mondelez [launched](https://www.mashed.com/191068/the-real-reason-supreme-oreos-are-so-expensive/) limited-time only Supreme Oreos, Supreme fans bit (Supreme logo = automatically cool). Next up: salmon-colored, green-stuffed Oreos in honor of Lady Gaga's new album. Oreo uses brands, people, and flavors to generate buzz and expand its appeal beyond the usual customers — *then it hooks you with the OG profit puppies*. __[Dunkin'](https://robinhood.com/stocks/DNKN)__ and __[Starbucks](https://robinhood.com/stocks/SBUX)__ also [use](https://snacks.robinhood.com/newsletters/5mY5sSUetVsDU3TVYIRcys/articles/3C3YTFL9Q1NYRL0lkmUBiA/) the LVH strategy with their color-changing seasonal drink monstrosities, while __[Crocs](https://robinhood.com/stocks/CROX)__ does it with J. Bieber clogs.

The secret behind Oreo’s limited-edition flavor strategy 

__*Darth Bezos strikes again*...__ Global domination has taken a very literal turn: maps. __[Amazon](https://robinhood.com/stocks/AMZN)__'s omnipresent cloud service, AWS, just [launched](https://techcrunch.com/2020/12/16/aws-launches-amazon-location-a-new-mapping-service-for-developers/) "Amazon Location" (unfortunately, not a real-time package tracker). This mapping service lets developers add location-based features to their apps. 

__From the North Pole to the South...__ The supreme ruler of mapping is... Google Maps. Maps has 1B+ users, and is also used by a ton of map-reliant apps like __[Uber](https://robinhood.com/stocks/UBER)__ and __[DoorDash](https://robinhood.com/stocks/DASH)__. Without __[Google](https://robinhood.com/stocks/GOOG)__, Uber can't direct drivers, and DoorDash can't stop you from asking "where is my ramen." From 2016 to 2018, Uber paid Google $58M to use its Maps service. And...

- __Uber [signed](https://snacks.robinhood.com/newsletters/2FFx07PkihITcdXy20oUUt/articles/1uzYy1VFte7XNHCCgRnTDD/) a 4-year renewal deal with Maps__ in July because it's the only mapping solution "that can provide the global functionality  we require."
- __Amazon Location is not as all-encompassing as Maps__, but the Zon is making up for it in the best way it knows how: lower prices. 

__AWS is Amazon's silent (but deadly) superpower...__ It's a "silent server" for a *huuuge* swath of the digital economy,  powering the operations of millions of companies from __[Netflix](https://robinhood.com/stocks/NFLX)__, to __[Slack](https://robinhood.com/stocks/WORK)__, and __[Shell](https://robinhood.com/stocks/RDS.A)__. Last quarter it made up 12% of Amazon’s sales, bringing in a gnarly $11.6B — *and* it made up over half of Amazon's total profit. Since millions of large and small businesses use AWS to power their operations, Amazon has a major leg up when launching new  (cheaper) services like Location.


Amazon's new "Amazon Location" could unravel the Google Maps monopoly

🌶 Oreo's flavor secret 

__Can you do the Can Can?__ Canadian cannabis icons __[Tilray](https://robinhood.com/stocks/TLRY)__ and __[Aphria](https://robinhood.com/stocks/APHA)__ are [combining](https://www.bloomberg.com/news/articles/2020-12-16/aphria-tilray-announce-deal-to-create-biggest-cannabis-company?sref=q3KSFp38) to form Earth's largest pot company by sales. The new company will keep Tilray’s name (heated marriage decision) and will trade on the Nasdaq. Fun fact: it's basically impossible for *American* cannabis stocks to trade on US exchanges, since marijuana is illegal at the federal level.

- __Geographic FOMO:__ Canna companies don't know where legalization will strike next, so they're trying to plant their weeds wherever the green light seems likely.
- __Ameri-canna:__ Aphria needs to expand outside of Canada. Tilray's US biz gives it nice exposure to the American market as more states are [legalizing](https://snacks.robinhood.com/newsletters/2WSPzJTYnHk30wYwZxmDQO/articles/46Vmobj3VwyQorpkAl0ghs). 
- __Euro-canna:__ As more European countries legalize medical marijuana, Tilray and Aphria can combine their European production facilities to scale and distribute faster.

__THC sippin'...__  Tilray and Aphria are also combining their bev businesses. Aphria acquired SweetWater Brewing Company for cannabis-infused beers like "420 Strain IPA" — Tilray partnered with Bud-maker __[AB InBev](https://robinhood.com/stocks/BUD)__ for CBD *and* THC drinks. These "beyond the leaf" products could be gateway goodies for weed to go mainstream. 


_The engagement party_

Puff

__Cannabis is freshman year Harry Potter...__ Hasn't really done much, but gets all the attention. Even after their stocks jumped on the news, Tilray and Aphria's combined [market value](https://learn.robinhood.com/articles/GByCbiOluG2kcWs1AF6m5/what-is-market-capitalization/) is just ~$3.6B  — for reference: Sam Adams-maker __[Boston Beer](https://robinhood.com/stocks/SAM)__ is worth over 3X that. Combined, Aphria and Tilray make less than $700M in sales per year — that's less than __Juul__'s sales in 2018. So canna companies have to consolidate while they wait for more legalization.

Tilray and Aphria merge to create the world's biggest cannabis company

__So, *did you do it Carole*?...__ __Cameo__ is the startup that lets you request personalized videos from celebs. For $1.2K, you can get a happy birthday shoutout from Snoop Dogg — for $300, you can get Carole Baskin to [sing](https://www.youtube.com/watch?v=JzV5k3cJ-2g) "In Da Club" by 50 Cent (major cringe warning). For more context: Kevin from *The Office* is Cameo's [top ](https://www.bosshunting.com.au/hustle/the-office-kevin-malone-brian-baumgartner-cameo-top-earner-2020/) earner for 2020.  

- __Cameo might be getting Zucked:__ __[Facebook](https://robinhood.com/stocks/FB)__ is reportedly [building](https://www.bloomberg.com/news/articles/2020-12-15/facebook-building-tool-to-let-fans-pay-celebrities-for-face-time?sref=q3KSFp38) a new Cameo-inspired tool called "Super" to let fans pay celebs for live face time. Think: live streams and Q&As.

__Zuck Team 6...__ Super is being developed by Facebook’s "New Product Experimentation" team, which builds apps outside of FB. Their creations [include](https://npe.fb.com/page/2/): a couples app, a music collaboration app, and a meme app. None of these have broken out as a popular, standalone product. But Super could capitalize on the demand for digital celeb events.


Zuck

__NPE is like a mini-incubator....__ It's FB's version of startup accelerator Y Combinator. Facebook's [getting](https://snacks.robinhood.com/newsletters/3W2qDBQC1zd66GBLGKcPH5/articles/btPa9ZLG0TKdCGgtFoeSA/) major heat for its Instagram and WhatsApp acquisitions — creating new products internally might be a less risky route for growth than buying competitors. With this dedicated team, Facebook is basically throwing app spaghetti at the wall to see what sticks. If it lands, FB will probably integrate it into its main app.

Facebook's mini-incubator team is working on a Cameo-style app 

__Flexing the AF1 display on Zoom...__ Level 3 Flex. __StockX__ is an online marketplace for sneakerheads and fashion aficionados. The five-year-old Detroit-based startup launched with rare kicks, then expanded to streetwear, bags, and even collectible Pokemon cards ([this](https://stockx.com/ninetales-holo-1999-pokemon-base-set-1st-edition-12-102) one's a steal at $5.2K). Now it's almost a triple unicorn:

- __StockX just raised $275M at a $2.8B valuation__, more than [double](https://www.wsj.com/articles/stockx-snags-2-8-billion-valuation-in-latest-funding-round-11608123604) its 2019 valuation. Celeb investors include Steve Aoki and Eminem.
- __It was profitable for the first time__ last quarter, when sales soared 75% from a year earlier. Wild stat: [50%](https://techcrunch.com/2020/12/16/stockx-raises-275m-series-e-valuing-the-retailer-at-2-8b/) of its transactions since 2016 happened over the last 12 months.

__New York Sneaker Exchange...__ StockX calls itself "the world's first stock market for things." Makes sense, since its CEO is a former NYSE and eBay exec.  

- __On a stock market__ (like the NYSE and the Nasdaq), supply and demand  determines prices by matching buyers and sellers of a company's stock. 
- __StockX mimics the stock market__ by posting sellers' minimum asking prices and buyers' highest bidding prices. When a bid meets the ask, the sale automatically happens.


Sneak

__Trust is the most valuable commodity....__ and StockX gained it through verification and pricing transparency. You won't spend $700 on rare Yeezys if they could be knockoffs: StockX authenticates all products before shipping them, and only sells unworn items (except for watches). It also provides market data for listed products, including the 52-week high and low prices they sold at. That way, buyers and sellers can know if they're getting a relatively fair price, or if they should wait.

StockX, the stock market of sneakers, steps into a $2.8B valuation

💨 Earth's biggest pot company

__Do you even lift?...__ __[Planet Fitness](https://robinhood.com/stocks/PLNT)__ makes money from your ~$10/month gym membership, *and* from selling equipment to its franchisee-owned gyms — [same](https://snacks.robinhood.com/newsletters/3W2qDBQC1zd66GBLGKcPH5/articles/6HVDpykBMdbjucEqIYnyUg/) idea as McDonald's franchise model, except PF sells purple ellipticals instead of McFlurry machines. 

- __Flex #1:__ While competitors like __24 Hour Fitness__, __Gold’s Gym__, and __Town Sports__ have filed for bankruptcy during the pandemic, Planet Fitness is in its own (non-bankrupt) orbit.
- __Flex #2:__ PF stock is down less than 3% this year, despite the pandemic's crushing effect on all things public sweating-related. Town Sports plunged 93% before getting delisted.

__Shoo fly...__ PF's monthly fees are generally small enough to live with, even if you're not using the membership. Like a fruit fly, they're annoying... but bearable. The fruit fly membership strategy: keep it cheap, but make it hard to get rid of. Even when PF gyms were closed, cancellations had to be in person or by letter.

- __PF's best customers:__ Those who barely ever show up but keep paying.
- __PF's second best customers:__ Those who didn't bother trying to cancel during lockdowns.

_What it takes to cancel the Planet Fitness membership_

Lift

__The 10-Q doesn't lie...__ That's the quarterly financial report public companies have to file with the SEC. While the fruit fly strategy may have helped pad third-quarter results, PF's overall sales still fell 37% — and equipment sales alone plunged 71%. Membership dropped from 15.5M people in March to 14M at the end of October. Even as gyms reopened, people probably got fed up with the brutal cancellation policy (fly = swatted).


Planet Fitness is still running in the corona-conomy — behold, the fruit fly strategy

__It's a bird, it's a plane, it's a...__ SPAC? NY-based helicopter taxi service __Blade__ is going public by [merging](https://www.nytimes.com/2020/12/15/business/dealbook/blade-helicopter-spac.html) with a SPAC, aka: "blank-check company." A SPAC is a company without a company, that goes public for the sole purpose of one day buying a *real* company (in this case, Blade). The deal values the helitaxi company at $825M, up from its $140M 2018 valuation.

__Channeling Blair Waldorf...__ Blade is like an aerial __[Uber](https://robinhood.com/stocks/UBER)__ for Manhattan's Elite (XOXO, Gossip Blade). The seven-year-old startup caters to wealthy city dwellers looking for a faster escape to Nantucket and the Hamptons (40-minute flight to East Hampton = $795/seat). It also offers seaplanes and private jets.

- __The biz model:__ Like Uber, Blade doesn't actually own any of its choppers or planes — it connects passengers with charter operators. 
- __The app model:__ Also like Uber, Blade has an app that lets you book flights in seconds and receive live updates on your Aspen-bound jet.
- __The perk model:__ *Not* like Uber, Blade offers luxury lounges to chill in pre-flight (free appetizers always justify lofty prices).


SPACial

__Blade could fly downmarket...__ __[Tesla](https://robinhood.com/stocks/TSLA)__'s first strategy was entering at the high end of the market — offering a pricey premium product for wealthy consumers — and then moving down (see: Elon's [Master Plan](https://www.tesla.com/blog/secret-tesla-motors-master-plan-just-between-you-and-me)). Similarly, Uber originally only allowed customers to hail a black luxury car that cost *more* than a cab. While these products still aren't cheap, they've become much more accessible over time. Blade could also end up cutting its costs in exchange for volume and scale.


Blade, the Uber Black of helicopters, is going public at an $825M valuation

🏋️‍♀️ Planet Fitness' fruit fly strategy

__Hey Google, hit me with a Word Clue...__ __[Zynga](https://robinhood.com/stocks/ZNGA)__ is the social gaming legend behind mobile hits like FarmVille and Words With Friends. Now, instead of *seeing* Zynga's blindingly colorful games, you'll be able to play them with your ears: Zynga's [launching](https://www.bloomberg.com/news/articles/2020-12-14/zynga-to-put-words-with-friends-style-game-on-google-nest-devices-in-bid-to-lure-nongamers?srnd=premium&sref=q3KSFp38) audio gaming on Google Nest Hub and other Google Assistant  devices. It's starting with a free, voice-based puzzle game called Daily Word Wheel (Zynga's *obsessed* with words). 

__Audio's "Golden Ear-a"...__ Radio and phone calls might be semi-dead, but audio definitely isn’t. We spend so much time staring at screens (especially in the WFH era) that audio-based entertainment is experiencing a major renaissance.

- __[Spotify](https://robinhood.com/stocks/SPOT)__ has spent more than $800M over the past two years on podcast-related acquisitions, as pod-pularity continues to skyrocket.
- __[Apple](https://robinhood.com/stocks/AAPL)__ is projected to sell ~$15B worth of AirPods in 2020, more than 2X what it sold in 2019 — and almost 9X __[Snap](https://robinhood.com/stocks/SNAP)__'s *total* 2019 sales.
- __Clubhouse__, the controversial audio-based social app, notched a $100M valuation with just 1.5K users.
- __[Twitter](https://robinhood.com/stocks/TWTR)__ launched voice tweets and is testing "Audio Spaces." 


_Audio-only version of Guitar Hero_

Eary

__Meet your non-users where they are...__ Zynga's betting it can lure in *non*-gamers by creatively meeting them where they are (and where the competition *isn't*): smart speakers. Roughly one in four American adults [owns](https://gabygoldberg.medium.com/the-state-of-sound-audio-in-2020-and-beyond-e68e61337e52) a smart speaker, and 62% use a voice-operated assistant. Zynga's hoping to leverage Google's ~68M Nests and Nest Hubs to hook people with its games while they're doing the dishes and cooking. In time, these casual audio gamers could become mobile gamers, too.


Audio's Golden Ear-a: Zynga launches "games for your ears" on Google Nest

__Niet good at all...__ __[FireEye](https://robinhood.com/stocks/FEYE)__, the go-to cybersecurity firm for government agencies, has [suffered](https://www.nytimes.com/2020/12/08/technology/fireeye-hacked-russians.html) a major hack from “a nation with top-tier offensive capabilities.” We don't know for sure yet, but all signs point to Russia. The hack itself came in through software offered by network-monitoring company __[SolarWinds](https://robinhood.com/stocks/SWI)__. Let's Putin perspective:

- __Problem:__ SolarWinds' software is [used](https://apnews.com/article/us-agencies-hacked-global-cyberspying-328b4936f2535418b27cb90afa858489) by hundreds of thousands of orgs, including multiple US federal agencies and most Fortune 500 companies. 
- __Big problem:__ The Treasury and Commerce departments were definitely breached, and the Department of Homeland Security might've been.
- __Bigger problem:__ The hackers hacked FireEye's hacking capabilities (say it three times fast). They basically stole FireEye's secret hacking toolkit.

__Drop it like it's hacked...__  FireEye stock has dropped 12% since the news broke, while SolarWinds shares plunged 17%. We don't know much about what was breached — but it could include anything from info on top-secret government operations to data on American citizens. The FBI is investigating.


Hack

__Counterintuitively, this boosted cybersecurity stocks...__ While FireEye shares are down, major cybersecurity companies like __[Palo Alto Networks](https://robinhood.com/stocks/PANW)__, __[Zscaler](https://robinhood.com/stocks/ZS)__, and __[Fortinet](https://robinhood.com/stocks/FTNT)__ are up. That could be because their competitor just suffered a major reputation hit. But it could *also* be that this hack highlights the importance of cybersecurity, especially in a remote world. No company is 100% hack-proof, including hack-fighting FireEye — that could drive even more cybersecurity spend.