__But I ordered a Coke...__ Tell that to __[Pepsi](https://robinhood.com/stocks/PEP)__. The beverage giant [bounced back](https://www.wsj.com/articles/pepsico-sales-rise-as-beverage-segment-improves-11601550380) to growth last quarter. People are driving more, meaning more Pepsi pit stops at 7-Elevens and gas stations. Pepsi's drink sales grew 6%, up from a 7% *plunge* the previous quarter. Meanwhile: snack sales continued to thrive as we have Pepsi's Quaker Oats for breakfast, its Rice-A-Roni for lunch, and its Cheetos for Netflix. 

__No one is carding Pepsi...__ After 127 years of being soft, Pepsi is considering going hard, [according](https://seekingalpha.com/article/4377233-pepsico-inc-pep-ceo-ramon-laguarta-on-q3-2020-investors-q-results-earnings-call-transcript?part=single) to its CEO. __[Coca-Cola](https://robinhood.com/stocks/KO)__ just [teamed](https://www.cnbc.com/2020/09/29/coca-cola-molson-coors-partner-for-us-launch-of-topo-chico-hard-seltzer.html) up with __[Molson-Coors](https://robinhood.com/stocks/TAP)__ to launch its 1st alcoholic drink in a while: Topo Chico Hard Seltzer. But alcohol makes things complicated...

- __"The three-tier system"__ of alcohol sales in the US means that boozy drinks must be made, distributed, and sold by  *separate* companies. 
- __That's why there's no Smirnoff store.__ You're picking up vodka at __[Walmart](https://robinhood.com/stocks/WMT)__ or Big Joey's Liquor (the sellers). Smirnoff-maker __[Diageo](https://robinhood.com/stocks/DEO)__ has to partner with other companies (the distributors) to get it to Walmart and Joey's.

_Pepsi: "You're not gonna card me, are ya?"_

Chug

__If Pepsi gets in on a trend, it’s a post-trend...__ The bigger and older a corporation is, the less quickly it's usually able to move. White Claw launched four years ago and controls over [half](https://www.t4.ai/industry/hard-seltzer-market-share#:~:text=The%20leading%20brand%20in%20the,Natural%20Light%20Seltzer%20with%202%25) the US hard seltzer market, followed by __[Boston Beer](https://robinhood.com/stocks/SAM)__'s Truly. Now Coke and Corona-maker __[Constellation Brands](https://robinhood.com/stocks/STZ)__ are hard seltzer-ing too. If Pepsi *does* go hard, it'll have to do something special to stand out from the crowded sparkling playing field.

Pepsi's drink sales bounce back — now it's exploring the wild world of alcohol

__Getting a 2nd life...__ If this retailer were a video game, it would be called *Bed Bath & Respawned*. __[Bed Bath & Beyond](https://robinhood.com/stocks/BBBY)__, the company famous for dorm decorations, massive coupons, and being featured in an early 2000s Adam Sandler movie, *is back*. The stock surged 25% yesterday on a brand-reviving earnings report:

- __BBB had its 1st same-store sales gain since 2016__ and swung to a $218M profit (vs. a $139M *loss* for the same quarter last year).
- __BBB added 2M new customers__, many of them young and spending more per transaction on decorative pillows, patio furniture, and even dorm decor.

__This isn't just about "House Hype"...__ BBB was actually *late* to benefit from the lockdown "[House Hype](https://snacks.robinhood.com/newsletters/7Fl0kcKPHzNEVEVwnee0Zp/articles/3djXYQJYytx1qKMDTR9yG1/)," following the success of __[Lowe's](https://robinhood.com/stocks/LOW)__ and __[Home Depot](https://robinhood.com/stocks/HD)__. BBB thrived thanks to digital innovation: 

- __Online sales soared 89% for the quarter__. Now BBB is planning to close 200 of its 1.5K stores as it continues to e-nnovate.
- __Last week,__ BBB rolled out same-day shipping in the US in partnership with Instacart and Shipt. 
- __Earlier this year,__ BBB launched a "buy online, pick up in-store" option along with contactless curbside pickup.


_Bed Bath is back, baby_

Wake

__This is a narrative-changing earnings report...__ Investors thought Bed Bath & Beyond was stagnant and dying. Until this report, the stock was worth over 80% less than it was in 2015. While it's still worth 67% less than the 2015 price, these earnings convinced many investors that BBB can succeed in a modern, remote world. So the stock majorly soared.

Bed Bath & Beyond stock surges 25% after it snags its 1st sales win since 2016

__Packaged like a Glossier moisturizer...__ actually a hair loss ointment. __Hims__ is an online health company that ships erectile dysfunction meds and hair loss supplements. Except they're packaged so minimalistically and with so much Millennial pink that they look more like Sephora products. It also has a "Hers" brand — think BC and biotin gummies. Now:

- __Hims is going public via SPAC.__ That's a company that goes public for the sole purpose of one day acquiring an actual company (mission accomplished). 
- __The deal values Hims at $1.6B,__ and the merger will yield it a fresh $280M in cash to continue shipping its Millennial medicine. 

__Just what the doctor prescribed...__ One SPAC-quisition, ASAP. Hims is going public just three years after launching (for reference: it took __[Teladoc](https://robinhood.com/stocks/TDOC)__ 13 years). But with IPOs on track to have their [best](https://www.wsj.com/articles/ipo-market-parties-like-its-1999-11601052419) year ever and telehealth thriving, Hims is speeding up plans to go public. The CEO [says](https://www.cnbc.com/2020/10/01/hims-a-direct-to-consumer-health-company-is-going-public-via-spac.html) it compressed a 2-3 year roadmap into just a few months with multiple product launches.


Raise

__Hims has reached recurring revenue bliss...__ Hims has 260K medication subscribers, and 91% are recurring. That's 234K customers shelling out money each month to treat chronic conditions or regular needs. Not only does Hims have high sales frequency — it also has high sales *stickiness*. Those chronic conditions are unfortunately... *chronic*.

Millennial health startup Hims is going public at a $1.6B valuation

Dow Jones

S&P 500

Nasdaq

Bitcoin

🥤 Pepsi could be going hard 

__Throw in AirPods and a Starbucks latte...__ and the Canada Goose fit is complete. __[Canada Goose](https://robinhood.com/stocks/GOOS)__ stock popped 8% yesterday because it's the corona-conomy winner that came in from the cold. The stock just got a confidence-boosting analyst [upgrade](https://www.barrons.com/articles/canada-goose-stock-pops-on-upgrade-highlighting-strong-sales-51601479290), now that *winter is coming* and outdoor activities seem here to stay:

- __On Friday,__ NYC Mayor de Blasio [announced](https://nypost.com/2020/09/25/de-blasio-nyc-outdoor-dining-plan-permanent-year-round/) that outdoor dining will be a year-long thing. 8M New Yorkers can devour pizza al fresco all winter long. 
- __New Yorkers love:__ Eating at restaurants and complaining about the cold. That's where Canada Goose comes in with its fur lined $1K jackets. 
- __Fun (depressing) fact:__ You could buy 31 shares of Canada Goose stock for the price of one parka. 

__*It's gonna be a long, cold winter*...__ Love Island, Upper East Side. Canada Goose's sales [fell](https://www.fool.com/investing/2020/09/30/why-canada-goose-jumped-12-today/) 63% last quarter compared to last year and the stock slipped 30% from January to early September. Tight wallets, closed stores, and no travel hurt its fur-lined pockets. Buuut: the stock is up 30% this month as Northeasterners prep for a pandemic winter.


"_Why haven't you ordered your Canada Goose yet?!"_

__Canada Goose could thrive in a K-shaped *and* V-shaped recovery ...__ If the economic recovery turns out to be V-shaped, as President Trump [says](https://www.cnn.com/2020/09/30/economy/k-shaped-economic-recovery-trnd/index.html), then most Americans will quickly recover economically (and wealthy Americans will continue to buy $1K parkas). If it turns out to be K-shaped, as Joe Biden says, then only wealthy Americans will quickly rebound (*and will still buy $1K parkas*). But the recovery could also take neither of those shapes.

Canada Goose stock pops because it's the early winner of January date night

__The opposite of magical...__ __[Disney](https://robinhood.com/stocks/DIS)__ is laying off 28K employees across its Parks and Experiences division — around 67% are part-time workers. Disney’s parks in Florida, Paris, and Shanghai have [reopened](https://www.cnbc.com/2020/09/29/disney-to-layoff-28000-employees-as-coronavirus-slams-theme-park-business.html) with limited capacity, but its major CA parks are still shut. That's a massive hit to the entire biz.

- __Parks & Experiences accounted for ~40% of Disney's sales__ in 2019. Last quarter, that division's sales [plunged](https://snacks.robinhood.com/newsletters/2OI8lgJuwoXeEWwTh0ji5K/articles/1uVcb0z1fYvdVqzyBXQ9U8) *85%* and Disney lost over $3B.
-  __Even though some parks have reopened__, the limited foot traffic and Candy Apple sales aren't enough to make up for Disney's massive losses. 

__And then there's "popcorn Disney"...__ While we don't have the official numbers yet for the [$300M](https://snacks.robinhood.com/newsletters/8rq6xjStVvulqFP5BMmt0/articles/b8XbOfc5reKyOjOrvsVdC/) budget "Mulan," we *do* know that Disney  postponed almost all of its movies scheduled for release in 2020. Marvel blockbuster “Black Widow" was pushed back to May 2021. That's *another* big hit to Disney's wallet.

__There's a light at the end of Splash Mountain...__ While Disney's parks and movies divisions are struggling, its streaming and cable network segments are thriving. Disney's streaming networks (Disney+, ESPN+, and Hulu) now enjoy over [100M](https://www.cnbc.com/2020/08/04/disney-dis-q3-2020-earnings.html) subscribers, and Disney's ESPN is finally back with live sports to watch. That means more subscription and ad revenue to soothe Mickey's woes. That's why Disney stock is up since its (brutal) earnings in August.

Disney lays off 28K employees as theme parks remain closed/barely open

__Like a DM vs. a $10 Papyrus greeting card...__ Direct Listings are generally cheaper and faster than IPOs. When a company chooses to take its stock public via DL instead of IPO'ing, they aren't creating *new* shares to sell. Owners of private stock (early investors and employees) unleash their *existing* shares to the public, so the company isn't raising any fresh cash. Yesterday, two companies took this simpler route to going public: 

- __[Palantir](https://robinhood.com/stocks/PLTR)__ is the [secretive](https://snacks.robinhood.com/newsletters/29ds6WlAgMlOhg7Oijd1cN/articles/5F3QZdPR4hudHfED23iam3/) software company that crunches data for big clients like the government. The stock [closed](https://www.cnbc.com/2020/09/30/palantir-goes-public-pltr-starts-trading-on-the-nyse.html) slightly lower than the opening price.
- __[Asana](https://robinhood.com/stocks/ASAN)__ is the team task management tool where you get anxiety by looking at a board of color-coded objectives. The stock ended the day slightly up.

__*I'm different, yeah I'm different*...__ DLs are rare, but it's even *more* unusual to see non-consumery companies do them. Only two well-known companies, __[Slack](https://robinhood.com/stocks/WORK)__ and __[Spotify](https://robinhood.com/stocks/SPOT)__, have DL'd (until yesterday). Their stocks soared on Day 1 since we're all familiar with what they do. Not so much for Palantir and Asana.

- __Pros:__ DLs don't involve paying big fees to investment banks. They don't dilute the value of existing stock because: #nonewstock.
- __Cons:__ Those investment banks that advise on IPOs also help [build up](https://snacks.robinhood.com/newsletters/20h2lIyDiEHNUxZmIBTfPu/articles/3sU0d3u3Bv3EujmS6dVQ7U) interest in the stock from investors and can guarantee a certain amount will be sold. DLs don't get that promo service.

Direct

__Going public is turning into an "à la carte" menu...__ and companies are taking advantage of the options. Before, there was 1 way to go public: the expensive prix-fixe menu IPO (no, you can't swap fish for the meatballs). Companies have been increasingly looking to DLs and [SPACs](https://snacks.robinhood.com/newsletters/2IlouyJBkMnca9pyPTVgEl/articles/22jXt0jb5fz7MVzts4f1gG) to go public without paying fees to banks. Private companies will be following Asana and Palantir's stock to gauge the success of this new option.

The Unusual Suspects: Asana and Palantir go public through Direct Listings

❄️  Canada Goose bundles up 

__Snagged some prime real estate...__ next to prime rib. __[Beyond Meat](https://robinhood.com/stocks/BYND)__ just secured a whole lot more space for its plant-based patties in the fresh meat aisle. Beyond stock jumped 9% after the company announced it's expanding to 1.6K *more* __[Walmart](https://robinhood.com/stocks/WMT)__ locations. Ever since its Walmart debut in 2015, Beyond has grown its patty and sausage presence in the retailer's fresh and frozen aisles. Now, it's surpassing plant-based rival __Impossible__:

- __5,300:__ The  [number](https://corporate.walmart.com/our-story/our-locations) of Walmart stores in the US, including Sam's Club.
- __2,100:__ The number of Walmart stores that sell Impossible meat.
- __2,400:__ The number of Walmart stores that will sell Beyond meat, up from just 800 *before* this deal.

__Well done on the price cutting...__ That's how Beyond likes its goals cooked (don't settle for medium-rare). Beyond wants to “make plant-based meat accessible to all." But then it realized that its plant meat costs *2X as much as regular beef*. 

- __With the meat shortage we saw early on in COVID__, Beyond aggressively tried to narrow the big price gap to get in on the action. Enter... 
- __“The Cookout Classic”:__ Beyond's 1st semi-hoardable, relatively affordable offering. Think: a 10-pack of patties at $6.50/pound vs. a 2-pack at $12/pound.
- __Heating up:__ If Beyond and Impossible start competing on price at Walmart, we can expect the "real meat" difference to narrow even further. 


_A burger so mainstream, it's everyone's Halloween costume_

Planted

__Beyond is passing the mainstream test...__ Beyond's real goal is to get most meat-eaters eating its pea protein patties. Early adopters were vegans and vegetarians, but this Walmart deal proves *it has expanded beyond that*. Walmart is the keystone of accessibility and mainstream-ness in America. Read between the grill lines: Beyond must be performing well with shoppers if Walmart decided to triple the number of stores that offer it. 

Beyond Meat jumps on a juicy Walmart win: it passed "the mainstream test"

__Pizza fix, wine fix, Netflix, Stitch Fix...__ One of these does not belong in the corona-conomy. __[Stitch Fix](https://robinhood.com/stocks/SFIX)__  is the online personal styling service that uses stylists and algorithms to send you curated boxes of outfits each month (*are you boho chic or sporty grunge?*). Stitch Fix *was* a rare profitable young techy start-up — now, it's back to unprofitable basics:

- __Stitch Fix lost $44M last quarter,__ compared to a $7M profit during the same quarter last year. Shares plunged 14% after the update last week.
- __“Undoubtedly not what it was pre-COVID":__ Stitch's [thoughts](https://www.wsj.com/articles/stitch-fix-is-nearing-the-end-of-its-vertical-runway-11600855381) on the overall demand for clothes. Your personal stylist is whichever sweats came out of the dryer first.

__Drop the last name...__ Like Madonna, but not at all. Stitch Fix's customers have been increasingly dropping the "Fix" (aka: the stylist-curated subscription part that it's known for). Earlier this year Stitch intro'd "direct buy," offering the option to buy individual clothing items. While this makes Stitch Fix way less interesting (and Fix-y), it provides:

- __More price flexibility:__ People aren't as willing to pay for a box of blazers and floral maxi skirts that they'll probably only wear to the grocery store.
- __More choice specificity:__ Stitch's women’s activewear sales surged [350%](https://www.cnbc.com/2020/09/22/stitch-fix-sfix-earnings-q4-2020.html#:~:text=Stitch%20Fix%20shares%20plummet%20after%20personal%20styling%20service%20swings%20to%20a%20loss,-Published%20Tue%2C%20Sep&text=Stitch%20Fix%20reported%20a%20fourth,per%20share%2C%20a%20year%20ago.) last quarter compared to last year as people traded work fits for workout fits. 


Stitched

__The value is in the "Fix" — and Stitch could lose it...__ While direct buy is helping Stitch coast, the auto-ship Fix subscription is the real money-maker. Monthly recurring revenue is what makes companies like __Netflix__ beloved by investors. Yesterday, __Amazon__ [launched](https://techcrunch.com/2020/09/28/amazon-launches-a-4-99-per-month-personal-shopper-service-for-mens-fashion/) a $5/month ‘personal shopper’ Prime service for men (it already has a women's one). Amazon can afford to offer lower prices *and* better data insights, throwing another wrench into Stitch's "Fix" biz.

Stitch Fix customers are basically dropping the "Fix"

 🍔 Beyond's juicy mainstream win

__But does this affect our rating?...__ __[Uber](https://robinhood.com/stocks/uber)__'s experience studying abroad in London hasn't been fun — It lost its license (twice) and has been blamed for "a pattern of failures." Last November, Uber appealed so that it could keep operating royally in its biggest Euro market (3.5M riders, 40K drivers). This week it finally got a breakthrough:

- __The upgrade:__ A London judge is [granting](https://www.npr.org/2020/09/28/917882295/uber-can-keep-operating-in-london-magistrate-rules) Uber an 18-month license to officially operate (pin it up on the fridge).
- __The kind words:__ Uber is now considered "fit and proper." Sounds nice.

__Things got sketchy in-app...__ Uber was originally de-licensed in London because unauthorized drivers were still able to use the app (you expected *Timmy* in the Honda Civic, but *Tammy* rolled up). That happened on 15K trips. Now Uber has installed AI facial recognition to make sure Timmy is actually Timmy.

Granted

__Uber's transformation is complete...__ The Uber of today is dramatically different than the pre-IPO Uber of years ago. Since going public in May 2019, Uber has invested in self-betterment — This big legal win in London represents a *return* on those investments. 

- __Pre-IPO Uber:__ *Rule-breaking, international-obsessed, Travis-led, corporate drama-filled, ride hail-focused.*
- __Post-IPO Uber:__ *New CEO, diversified with food delivery, quit international markets, innovatively partnered with public transportation.*

Uber stock jumps 3% because London says it's "Fit & Proper"

__You shall pass...__ With the trillion dollar tech giants blocking the view, it's easy to miss __[Roku](https://robinhood.com/stocks/ROKU)__. The little streaming dongle company controls 43M living rooms with its smart TV tech — and yesterday it [unveiled](https://www.theverge.com/2020/9/28/21459521/roku-streambar-soundbar-compact-streaming-bluetooth-spotify-connect-tv-audio) the Roku Streambar. But to get to know Roku, compare it to its top rival, __[Apple](https://robinhood.com/stocks/AAPL)__:

- __The dongle:__ Roku's streaming stick starts at $50, adding Netflix, YouTube, Spotify and all the other streaming apps to any TV. Apple's equivalent "stick" (Apple TV) starts near $180.
- __Market value:__ Apple's total [stock market value](https://learn.robinhood.com/articles/GByCbiOluG2kcWs1AF6m5/what-is-market-capitalization/) is almost 100x bigger than Roku: $2T vs. $23B.

__Who composed the score?...__ Asks nobody after finishing the movie. Still, Roku's latest device adds what the other streaming devices don't: premium sound. At $129, Streambar is a low-priced way to bring streaming to your living room while shaking the furniture with four 14-inch speakers.

Stream

__Roku knows what this winter will have...__ no movie theaters. Picture things in 4 months: a 2nd wave of COVID and everyone stuck inside because of the cold. You won't even be able to escape to the theater to watch the latest Marvel or Star Wars flick (Disney [postponed](https://www.washingtonpost.com/business/2020/09/23/disney-films-delayed-covid/) all its movies by about a year). Roku sees this and thinks Americans  might love a movie theater experience at home, courtesy of Streambar.

With movie theaters likely closed all winter, Roku's latest device steps up

"_Re-approved in London, baby"_

🍿 Roku's movie theater dongle

__Sounds like a mashup of *1984* + *The Circle*...__ Bezos was clearly doing some reading this summer. __[Amazon](https://robinhood.com/stocks/AMZN)__'s hardware strategy has achieved the creativity level of a dystopian novel (congrats). At its big hardware event on Thursday, the Zon [unveiled](https://www.cnbc.com/2020/09/24/amazon-hardware-event-live-updates.html) new products just in time for the holidays. If your wishlist includes giving your home ears, a mouth, and all-seeing eyes, Amazon's got just the thing. In order of least threatening to borderline terrifying:

- __Echo:__ A new line of orb-shaped Echo speakers with improved response time for Alexa voice commands (she's listening). The kids version looks like an adorable panda.
- __Echo Show 10:__ Amazon's new smart display video monitor *tracks you as you move* (for pacing on Zoom calls). You can also use it as a remote camera "to check in on the dog."
- __Always Home Cam:__ Amazon's new $250 Ring camera is a [drone](https://www.theverge.com/2020/9/25/21455197/amazon-ring-drone-home-security-surveillance-sidewalk-halo-privacy) that *flies around your house recording you*.

__Stealing your roommate's pad-thai...__ Don't even think about it — Bobby is Always Home, even when he's out. The new drone cam uses a map of your house to *independently* fly around and patrol strange noises (hmm) when activated. Then, it casts the footage back to your phone. Amazon bizarrely calls this “privacy you can hear” (because: drone sounds).

_Amazon is always watching_

Surveil

__Convenience = control...__ The more convenient a product is, the more consumers have increasingly let it control their lives. __[Apple](https://robinhood.com/stocks/AAPL)__ controls our communication lives with iPhone. Amazon controls our shopping lives with Prime. We're willing to give over our personal data (and our $$$) because of the immense convenience these products provide. But Always Home Cam tests the limits of privacy concerns over actual value.

Amazon's latest (shocking) product is a flying drone roommate

__*Dunkaroos are back*...__  __[General Mills](https://robinhood.com/stocks/GIS)__ makes Lucky Charms, Cocoa Puffs, and everything else you ate when you were 12. GM's sales popped 10% last quarter — surprising, since cereal sales have fallen each year for the last decade. Instead of hitting the bagel shop pre-work, you're pouring Cheerios at home. But GM's terrified you'll return to pre-pandemic eating ways, so it's doing some "[Relevant Innovation](https://snacks.robinhood.com/newsletters/4SQQIJGVDV1ZMsRwO23SPV/articles/2W2x5vLb0ilPIaKx0pwfkW/)" with new products like: Starburst-flavored Yoplait and Go-Gurt Slushies (niiice).

__Not the chewy bar...__ __[GoodRx](https://robinhood.com/stocks/GDRX)__ is a price comparison app for prescription drugs that offers pharmacy discounts. It raised a healthy $1B in its IPO from "VIP" institutional investors. Then, the stock soared 53% Wednesday after going public on the Nasdaq (for the rest of us). Unlike most tech IPOs, GoodRx is *profitable*. In the 1st half of 2020, it made almost as much profit as it did in *all of 2019*. It's the #1 most downloaded medical app because it's [filling](https://snacks.robinhood.com/newsletters/4SQQIJGVDV1ZMsRwO23SPV/articles/231DSeRmMIaG6mxLu3tUCS/) two major healthcare gaps: lack of affordability and lack of simplicity. 

Highs

Who's up...

__Just can't seem to hash it out...__ __[Aurora Cannabis](https://robinhood.com/stocks/ACB)__ had a buzzkill year. The Canadian pot producer lost $2.5B last year and expects another sales decline this quarter. Shares [sank](https://www.barrons.com/articles/aurora-stock-plunged-30-because-it-is-growing-more-marijuana-than-it-can-sell-51600894979) 30% on Wednesday to a 4-year low and are down ~80% this year. Aurora has grown much more cannabis than there's actually demand for, and lower prices hurt sales. The pandemic-buying [pop](https://snacks.robinhood.com/newsletters/4ccVNBL1WDcK4FkFwPcBis/articles/Sf59MKWnXH64agCd3vvPy) appears to be over, so rival __[Canopy](https://robinhood.com/stocks/CGC)__'s stock also dipped.

__They see me rollin'...__ Rough week for __[Nikola](https://robinhood.com/stocks/NKLA)__. First, short-seller __Hindenburg__ dropped a bombshell report [accusing](https://snacks.robinhood.com/newsletters/dwPOufsBBQ4JnjSiVXZ9Q/articles/3raWsLXrWrHZhkC11zCnoM/) the e-truck maker of being "an intricate fraud." Example: a truck that Nikola described as "In Motion" in a video was actually just... *rolling down a hill*. Then, the SEC and the DOJ started investigating. *Then*, Nikola's founder resigned as Exec Chairman, potential partners reportedly stalled talks, and the stock got downgraded. Finally, __[Tesla](https://robinhood.com/stocks/TSLA)__ claimed Nikola stole its truck designs. The stock plunged 22% for the week.


Lows

...and who's down

🏠 Amazon is Always Home

__Swoosh swoosh...__ Despite a global crisis, __[Nike](https://robinhood.com/stocks/NKE)__ was its own Most Improved Player last quarter. Sales slipped less than 1% compared to last year and profit actually [*increased.*](https://www.cnbc.com/2020/09/22/nike-nke-reports-fiscal-q1-2021-earnings-beat.html) That's a big glow up from June, when Nike posted a loss and 38% sales plunge. Nike's stock is up 8% in the last week on the performance.

__The OGs are the real MVPs...__ What fascinated us most: Nike is cashing in big on its vintage shoe styles. Whenever there's a slump, Nike can fall back on its trusty OGs. That's a major advantage that iconic brands have over newer players (no one wants Lululemon's 2001 leggings).

- __Nike's Air Force 1__, born 38 years ago, saw a major resurgence last quarter. AF1 is the most-purchased shoe of 2020, [according](https://www.yahoo.com/lifestyle/why-nike-air-force-1-162633889.html) to the NPD Group (and your Insta feed).
- __Air Jordans__, 1st released in 1984, were the only highlight of Nike's sad June quarter: the Jordan brand hit a [record](https://www.forbes.com/sites/kurtbadenhausen/2020/06/26/china-and-the-last-dance-propel-nikes-jordan-brand-to-record-36-billion-in-revenue/#54f078a15057) $3.6B in sales thanks to surging demand from China and "The Last Dance," a Jordan documentary on ESPN.


_'80s vibes only_

Kicks

__Nostalgia is one of the greatest marketing weapons...__ *especially during hard times*. Nostalgic products evoke a sense of comfort, reminding us of better times. Plus: they don't require much experimenting or creative work. Demand is clear, making a flop much less likely. And it extends beyond just fashion:

- __Food:__ __[Campbell Soup](https://robinhood.com/stocks/CPB)__ and __[General Mills](https://robinhood.com/stocks/GIS)__ have been pandemic thrivers, putting new spins on OG products like Dunkaroos and Go-Gurt.
- __Media:__ This summer, we've pretty much exhausted every possible sequel, prequel, and remake imaginable. __[Disney](https://robinhood.com/stocks/DIS)__'s leading the charge on that.


Nike is a Most Improved Player, but its retro sneakers are the real MVPs

__EV parking only...__ They're a familiar sight in parking lots, especially if you live in CA. __ChargePoint__ is one of the world's oldest and largest electric vehicle charging networks. It operates 115K orange charging ports, mostly in  North America. Its customers include Best Western, LinkedIn, UCSD, and the city of Long Beach (of course). Good news for clean energy fans...

- __Chargepoint is going public__ at a $2.4B valuation. It's getting acquired by a [SPAC](https://snacks.robinhood.com/newsletters/2IlouyJBkMnca9pyPTVgEl/articles/22jXt0jb5fz7MVzts4f1gG/), a company that goes public for the sole purpose of acquiring a private company. 
- __Congrats, [Switchback Energy](https://robinhood.com/stocks/SBE):__ Your SPAC-y purpose in life has (almost) been achieved. The deal is expected to close at the end of the year.

__America runs on Dunkin'...__ *but EVs run on charging stations*. One of the main barriers to EV adoption (besides price), is fear that your car will run out of battery with nowhere to charge it: aka Range Anxiety. Gas stations are always 0.3 miles away, but charging stations aren't always so close. 

- __ChargePoint can use the money it raises__ from going public to further scale. It's aiming to hit 2.5M ports by 2025 — aka: 2.49M *more* than it currently has.
- __More ChargePoints =__ more EV adoption = more sales for EV carmakers. That's why electric hopefuls like __[BMW](https://robinhood.com/stocks/BMWYY)__ and Mercedes-owner __[Daimler](https://robinhood.com/stocks/DMLRY)__ are also investors. 


Electrify

__The 1st-mover advantage is clutch...__ especially when it comes to EV infrastructure. Yesterday, California [announced](https://www.cbsnews.com/news/california-ban-gas-cars-gavin-newsom-mandates-that-all-new-vehicles-be-zero-emission-by-2035/#:~:text=California%20will%20ban%20the%20sale,date%20to%20be%20zero%2Demission.) that it'll ban the sale of new gas-powered cars and trucks starting in 2035. The world is moving toward EVs, and the ones who scale charging networks first will have the biggest advantage. Charging infrastructure investment will hit $190B by 2030, according to ChargePoint's CEO.

ChargePoint is bringing its EV charging stations public

👟 Nike wins with nostalgia

__Who turned off Ludicrous mode?...__ On August 17, __[Tesla](https://robinhood.com/stocks/TSLA)__ stock [surged](https://snacks.robinhood.com/newsletters/18NulDOrNkn4bMH9vbB6s6/articles/56ntQd5LpPiLTHK0KguXfk) 11% on anticipatory Battery Day hype. Yesterday, it plunged 10% because the event was more e-yawn than Elon. Some analysts were expecting Elon to unveil game-changing tech, including a battery capable of 1M miles. Besides announcing orders for the $140K Model S Plaid, Tesla mostly just announced... *its goals*:

- __A $25K Tesla__ capable of driving fully autonomously. That's ~$13K cheaper than its current cheapest model. ETA: 3 years.
- __Production of 20M Tesla vehicles/year.__ That's more than *all* passenger vehicles sold in the US last year. In 2019, Tesla sold...367K vehicles. ETA: 2030 (via an Elon tweet).
- __A “million mile” battery__ that could last an EV's entire lifetime. ETA: who knows.

__Energizer Bunny, 50% off...__ The main theme here is cutting down the cost of batteries, which are the most expensive part of EVs. In 2019, the average car battery cost  [$15K](https://www.marketplace.org/2019/12/03/battery-prices-falling-good-for-evs/). If Tesla wants to crank out that $25K model in 2023, it'll have to deliver on its ambitious goal of *halving* the cost of batteries in 3 years. Elon's promises don't always materialize (if they did, we'd have 1M self-driving Tesla [robotaxis](https://www.fastcompany.com/90338840/elon-musk-thinks-tesla-can-build-1m-robotaxis-in-the-next-year) on the road now).


__Tesla’s stock price assumes perfection for the next 10 years...__ Tesla is the most valuable car company in the world thanks to its soaring stock price. But __[Toyota](https://robinhood.com/stocks/TM)__ and __[VW](https://robinhood.com/stocks/VWAGY)__ each delivered ~30X more cars than Tesla did in 2019, when it delivered 50% more vehicles than it did in 2018. To deliver *20M* by 2030 assumes Tesla would have to keep growing at that fast rate for 10 years. Hyper-fast growth, especially in manufacturing, is usually not sustainable for that long — so it's unlikely. But if Tesla pulls it off, then its current $350B valuation will be worth it.

Tesla stock falls 10% because Battery Day didn't live up to the hype 

__Not to be confused with RXBAR...__ This one won't get stuck in your teeth. __[GoodRx](https://robinhood.com/stocks/GDRX)__ is a price comparison app for prescription drugs at local pharmacies. It offers free lists of discounts/coupons to cut prescription med costs. Like the Expedia of pills, GoodRx uses 150B pricing data points to show you the best deals for that blood pressure issue.

- __GoodRx raised over $1B in its IPO__ on Tuesday night from "VIP" institutional investors (they get 1st dibs) who [bought](https://www.cnbc.com/2020/09/23/goodrx-gdrx-ipo.html#:~:text=Shares%20of%20GoodRx%2C%20a%20company,%E2%80%9CGDRX%E2%80%9D%20on%20the%20NASDAQ.) it at $33/share. 
- __The stock soared 53%__ Wednesday after GoodRx went public on the Nasdaq (for the rest of us), ending the day at $49/share.

__This IPO jump actually makes sense...__ __[Nikola](https://robinhood.com/stocks/NKLA)__'s stock [doubled](https://snacks.robinhood.com/newsletters/dwPOufsBBQ4JnjSiVXZ9Q/articles/3raWsLXrWrHZhkC11zCnoM) after its IPO and it hit a $19B market value without ever having sold a product. GoodRx is also now worth $19B — but it's the rare tech IPO whose business is actually *profitable*. 

- __It makes $$$ by collecting fees__ from the pharmacy benefits managers it works with (essentially, referral fees) — it has been profitable since 2016.
- __It's growing fast.__ In just the 1st half of 2020, GoodRx made almost as much profit as it did in all of 2019 — $55M vs. $66M for all of 2019.


Pills

__Healthcare is the last frontier of consumer tech disruption...__ GoodRX is the #1 most downloaded medical app with ~5M users because it *fills two major gaps* in healthcare: lack of affordability and lack of simplicity. Pharmaceuticals in America are so overpriced that there's plenty of room to undercut prices and *still* profit. GoodRx makes meds accessible with its app and presents us with actual options so we can comparison shop. 


GoodRx, the Expedia of prescription drugs, surges 40% after going public 

__Having a bowl...__ __[General Mills](https://robinhood.com/stocks/GIS)__. The maker of Cheerios, Lucky Charms, and Cocoa Puffs saw its sales pop 10% last quarter. Cereal sales have fallen every year for the last decade, so... that's *great*. Instead of grabbing a Starbucks sammie on your way to work, you were eating cereal from a hoarded 10-pack as you WFH'd. That was great for processed food giant GM. But now, it has a problem...

__"Increase the Stickiness"...__ GM's term for keeping demand up, according to slide 11 of its [earnings deck](https://s22.q4cdn.com/584207745/files/doc_financials/2021/q1/General-Mills-Fiscal-2021-First-Quarter-Earnings.pdf). Now that the pandemic has lured customers back to Cinnamon Toast Crunch, GM needs to *keep them*. It's trying to do that in 2 ways:

- __"Meaningful Renovation":__ Improving existing products (eg: Yoplait yogurt, now with "real fruit").
- __"Relevant Innovation":__ Apparently, this involves bizarrely combining existing products (eg: Starburst-flavored Yoplait, Go-Gurt Slushie).


Crunch

__GM is incredibly un-confident that you'll stick with it...__ and we know that because of 1 expense: marketing. Like General Mills, Netflix saw its sales surge during pandemic. Netflix is confident that you're in for the long-term, so it's spending less on marketing than it did last year. Meanwhile, General Mills is jacking up marketing spend to prevent you from returning to your pre-pandemic brunch habits.


General Mills is desperate to keep up its growth, so it's making up new foods

"_20M by 2030"_

🔋 Tesla's anticlimactic Battery Day

__*Sounds familiar...*__ __Echelon__ is a connected fitness spin bike company that looks (and sounds) a lot like __[Peloton](https://robinhood.com/stocks/PTON)__ — serious knockoff vibes. Also: it's the code name of a top-secret government surveillance [program](https://techcrunch.com/2015/08/03/uncovering-echelon-the-top-secret-nsa-program-that-has-been-watching-you-your-entire-life/) (unrelated — *we think*). Echelon [claimed](https://www.prnewswire.com/news-releases/echelon-launches-amazon-exclusive-connected-bike-301134962.html) it teamed up with __[Amazon](https://robinhood.com/stocks/AMZN)__ to launch a $499 "Prime Bike," peddling it as Amazon's 1st-ever connected fitness product. Unsurprisingly, that generated some buzz. Two things:

1. __Echelon is making the bike__, but said it was “developed in collaboration with Amazon” and only available to Prime subscribers. Awk, because Echelon is [selling](https://www.walmart.com/ip/Echelon-Connect-Sport-Indoor-Cycling-Exercise-Bike/533034706) a nearly identical $499 bike on __[Walmart](https://robinhood.com/stocks/WMT)__. The only apparent difference: it says "Sport" on the side instead of "Prime."
2. __Peloton stock fell on the news.__ The bike costs *$1.5K less* than Peloton's flagship model. But it doesn't have a screen, so you have to stream classes from Echelon's app on a phone/tablet. 

__Because Peloton wasn't enough...__ Echelon tried to knock off Prime, too (*bold move*). Yesterday evening, Amazon immediately stopped selling the bike, [saying](https://www.forbes.com/sites/rachelsandler/2020/09/22/amazon-stops-sale-of-prime-bike-distances-itself-from-fitness-company-echelon/#3a7893e05111) it "is not an Amazon product or related to Amazon Prime.” Echelon deleted its press announcement real quick. 


_Echelon is to Peloton as McDowell's is to McDonald's_

Knockoff

__If you can stream it, you can do it...__ Streaming has democratized plenty, including workouts. Instead of spending $2K on a fancy-screen Peloton, you can spend $499 on Echelon and then ironically stream Peloton classes from your phone (Peloton app membership = $13/month). Price is why Echelon's (misleading) bike is already sold out. Peloton's sales tripled last quarter, but it's brand strength will be tested by these cheaper look-alikes.

Echelon launches "Prime Bike," claiming a partnership with Amazon

__Drug cartels, trafficking rings, money launderers and terror networks...__ Sounds like the premise of every Netflix show — *actually the criminal groups that big banks enabled*, according to new investigative [reports](https://www.buzzfeednews.com/article/jasonleopold/fincen-files-financial-scandal-criminal-networks) by BuzzFeed and others. __[JPMorgan Chase](https://robinhood.com/stocks/JPM)__, __[HSBC](https://robinhood.com/stocks/HSBC)__, and __[Deutsche Bank](https://robinhood.com/stocks/DB)__ were among those implicated in (drumroll please)...

- __“The FinCEN Files”:__ These secret documents allegedly reveal how bank giants moved *trillions* of $$$ in suspicious transactions, helping criminals launder money.
- __Money laundering:__ The (very illegal) practice of making “dirty money” clean by passing it through legit transfers/transactions.

__A bad case of "filed away"...__ Banks are required to report large cash transactions and suspicious activities through SARS (aka: Suspicious Activity Reports). Then, FinCEN — the Financial Crimes Enforcement Network of the Treasury Department — is supposed to share that info with law enforcement, regulators, etc. who enforce the law (if necessary). While banks raised red flags, they still continued processing suspicious transactions.

Clean

__We need better oversight...__ Money laundering enables terrible crimes, and legit institutions have enabled money laundering. As long as a bank files a SAR, it essentially immunizes itself from criminal prosecution. It could file one and still accept a sketchy transaction. The FinCEN Files include over 2,000 SARS, not all of which are necessarily reflective of actual crimes — but some [were](https://www.bbc.com/news/uk-54226107), and the banks and FinCEN didn't stop them. 


Big banks knowingly moved billions in criminal money, according to new reports

__Adorable name...__ not-so-adorable turnout. __Quibi__ is different from its other streaming peers, like Hulu, Vudu, Roku, and Fubo (although...*we sense a trend*). The mobile-first short video startup — short for "quick bites" — [raised](https://snacks.robinhood.com/newsletters/6tL9rj4NSZ6yeAUZMcTFdg/articles/iJPjyX1dxuDPncD7wa9AW) a gargantuan $1.75B before launching in April. It's the brainchild of Dreamworks founder Jeff Katzenberg, so expectations were high. Fast forward...

- __Quibi has failed to live up to the hype.__ It's [reportedly](https://www.wsj.com/articles/quibi-explores-strategic-options-including-a-possible-sale-11600707806?mod=hp_lead_pos4) falling majorly short of its paid subscriber targets (even with the 90-day free trial). 
- __It's also dealing with a lawsuit__ regarding its key "[Turnstyle](https://snacks.robinhood.com/newsletters/3o6fm1unqkQI9smatHu2oa/articles/5AT2AeWUMj9xrmIMGk4k80/)" feature, which lets you seamlessly switch between horizontal and vertical phone viewing.
- __Now, Quibi is reportedly exploring cash-raising options__, including selling itself or merging with a [SPAC](https://snacks.robinhood.com/newsletters/2IlouyJBkMnca9pyPTVgEl/articles/22jXt0jb5fz7MVzts4f1gG) (aka: a "blank check" company) to go public.

__That awkward in-between spot...__ With its 8-minute episodes, Quibi sits between short user-generated videos (on Snap, Insta, TikTok) and long-form studio content (on Netflix, Disney+, etc.). It costs $5/month with ads and $8/month without — less than Netflix, but more than Disney. Despite star-studded shows and high-quality production, it seems many haven't found it compelling enough to pay for.


Flop

__Quibi solved a problem that was already solved...__ Quibi execs love pointing out that it was created for “in-between moments,” like that 6-minute subway ride. 

- __They've blamed poor performance on the pandemic,__ saying the lack of commuting didn't leave any space for those mobile-centric moments. 
- __But social media and gaming apps have never had higher engagement__. They've long capitalized on our extra-short attention spans, solving the "in-between" problem better (and for free). That leaves little room for Quibi.


Quibi is reportedly exploring a sale after solving a problem that was already solved

🚲  The “Prime” Peloton knockoff that wasn't

__Rev me up when September ends...__ Six-year-old electric truck startup __[Nikola](https://robinhood.com/stocks/NKLA)__ is having a wild month. Barely a week ago, __[GM](https://robinhood.com/stocks/GM)__ announced it's [dropping](https://snacks.robinhood.com/newsletters/7FZzguUiD8aLKkREx4vy4F/articles/7CfZXV2CbwDk29abnMj5hQ/) $2B for an 11% stake in the freshly IPO'd startup. GM will also be *producing* Nikola's trucks, and Nikola stock soared 40% (because: Nikola hasn't actually sold a vehicle yet). Then things went from 100 to 0 real quick:

- __Bad:__ Short-seller __Hindenburg Research__ dropped a 67-page report [accusing](https://www.wsj.com/articles/justice-department-probes-electric-truck-startup-nikola-over-claims-it-misled-investors-11600199462?mod=business_lead_pos13) Nikola of exaggerating the readiness of its e-truck tech, calling it "an intricate fraud." Nikola and founder Trevor Milton say the allegations are false.
- __Worse:__ SEC regulators and the Justice Department started investigating whether Nikola misled investors. 
- __Worst:__ *Yesterday,* Milton [resigned](https://www.cnbc.com/2020/09/21/nikola-shares-open-at-lowest-price-since-ipo-after-company-founder-trevor-milton-resigns.html) as Executive Chairman on the fraud allegations. Nikola stock tanked 19%. GM dropped 5%.

__Dude, where's my e-car?...__ Apparently, rolling down a hill. As one of its callouts, Hindenburg said a promo video showing a Nikola semi-truck prototype traveling on a road was fake. Turns out, the truck was simply rolling down a hill — aka: not moving *itself*. Nikola's [response](https://arstechnica.com/cars/2020/09/nikola-admits-prototype-was-rolling-downhill-in-promotional-video/): "Nikola never stated its truck was driving under its own propulsion in the video." It simply described it as "In Motion." *Trueee.*


_Hindenburg to Nikola: "You sit on a throne of lies"_

Roll

__Is Nikola the next Theranos?...__ First, we should note that Hindenburg has a *direct interest* in Nikola's stock plunging. It's a short-selling firm, so it's literally putting money on Nikola failing. Also: GM likely did some real due diligence before investing. But Theranos also managed to raise huge sums from investors before its products saw the light of day — that story that ended with a massive fraud. We don't know if the Nikola allegations are true, but the founder's resignation isn't an inspiring sign.

Nikola stock tanks after its founder resigns on a truckload of fraud allegations

__Day #182 of no free samples...__ *Sigh*. Wholesale clubs are able to offer cheap prices by cutting out the retail middleman, charging yearly membership fees, and selling in industrial-sized bulks. When you think of warehouse clubs, you're probably thinking __[Costco](https://robinhood.com/stocks/COST)__, Sam's Club, and 30-pound packs of bacon. But smaller East-Coast-based __[BJ's](https://robinhood.com/stocks/BJ)__ is [outperforming](https://www.cnn.com/2020/09/17/business/bjs-wholesale-club-costco-retail/index.html) both:

- __+24%:__ BJ's sales growth last quarter, compared to 3% growth over the past two years. BJ's grew faster than Costco and __[Walmart](https://robinhood.com/stocks/WMT)__-owned Sam's Club. 
-  __500K:__ The "unprecedented" number of new members BJ's has added so far this year. They're shelling out $55/year to be part of BJ's Club.
-  __+82%:__ How much BJ's stock has surged this year — it's outperforming Costco, Walmart, and even __[Amazon](https://robinhood.com/stocks/AMZN)__ (insert Bezos eye-roll).

__BJ's is basically a wholesale grocery...__ *Excellent* thing to be during a pandemic/economic crisis. 72% of BJ's sales come from groceries — that's more than Costco and Sam's can say. BJ's stores are smaller, and it has only 200 locations compared to Costco's ~800. But it carries more than *double* the amount of items thanks to its food-focus (think: 10 varieties of choco milk compared to Costco's Kirkland).


Hoard

__Pandemic winners are recovery laggers...__ Unless your name is Zoom, pandemic growth spurts likely mean slower sales as things "normalize." Last quarter, people were eating home more, saving up more, and shopping in bulk for fewer grocery trips. BJ's got lucky with its existing business. But now grocery sales are falling as restaurants reopen, and grocery competitor Walmart+ just [launched](https://snacks.robinhood.com/newsletters/0zpHLW1IB8pix8YUTXac2/articles/NZ5JbEKhA5LoLo0zMmYw6/). The bar is higher for BJ's stock gains to continue.

BJ's is the underdog outperforming Costco this year in the "Warehouse Wars" 

__A lot can change in a year...__ and for once, we're not not talking pandemic/lockdown/recession. Mobile banking app __Chime__ is now worth nearly *10X* more than it was 18 months ago.  Since just December, Chime has [doubled](https://www.cnbc.com/2020/09/18/chime-is-now-worth-14point5-billion-surging-past-robinhood-as-the-most-valuable-us-consumer-fintech-.html) its valuation:

- __Chime is now worth $14.5B__ after a $485M [fundraise](https://www.cnbc.com/2020/09/18/chime-is-now-worth-14point5-billion-surging-past-robinhood-as-the-most-valuable-us-consumer-fintech-.html), making it the most valuable American consumer fintech company.
- __Chime plans to be "IPO ready"__ within 12 months, setting it up to compete on the public market against digital banks like __[Ally](https://robinhood.com/stocks/ALLY)__ and OG banks like __[Chase](https://robinhood.com/stocks/JPM)__.

__But don't call it a bank...__  Chime *partners* with banks to offer checking/savings accounts. "We’re more like a consumer software company,” according to Chime's CEO. It's no surprise that he'd like that rep to land. Software companies are thriving, while Big Bank stocks are down over 30% for the year on expected [loan defaults](https://snacks.robinhood.com/newsletters/7AbTHa6Ld095hkHZCRzEaL/articles/6MiIgW9CSp3vQEIYRasNPN/).

- __Unlike actual banks,__ which make bank on loans and penalties, Chime makes most of its $$$ from your card transactions.
- __It's especially popular__ with people who make $30K-$75K/per year, thanks to no monthly account fees and a credit builder card.


Money

__Chime's value increased thanks to the pandemic...__ at least in part. You're not going into your local branch to get cash and free coffee with powdered cream. Many people who didn't feel comfortable with banking online *before* have now gotten used to it. The move away from cash means that Chime cards are getting swiped/linked more often (again, their core biz). Throw in massive unemployment, and Chime’s no-fee banking seems even more attractive.

Chime doubles its valuation to $14.5B with help from the corona-conomy

🚗 Nikola's electric stock tank

__Could write a 7-volume series after this ends...__ *If it ever ends*. The TikTok ban saga has dramatically reversed course (again). In August, President Trump said he would ban TikTok unless an American company acquired its US operations by September 20th (aka: *yesterday*). The concern is that TikTok's Chinese-owned parent __Bytedance__ could pass American data to the Chinese government. 

- __A week ago:__ TikTok chose __[Oracle](https://robinhood.com/stocks/ORCL)__ over __[Microsoft](https://robinhood.com/stocks/MSFT)__ as its American [partner](https://snacks.robinhood.com/newsletters/46KUPDxFhDhy8dxhA7DfbJ/articles/6gEXoDknkeihOVzRVv6c4) (read: *not owner*). Trump wants an American company to *own* a majority of TikTok, so it was unclear whether he'd sign off. 
- __On Friday:__ Sounded like *no*. Trump said TikTok downloads and updates  would be banned starting yesterday. *Then*...
- __On Saturday: Trump approved the Oracle deal__, giving it his "[blessing](https://www.wsj.com/articles/trump-signs-off-on-deal-allowing-tiktok-to-continue-u-s-operations-11600551352?mod=hp_lead_pos1)." TikTok would partner with Oracle *and* __[Walmart](https://robinhood.com/stocks/WMT)__ to create a US-based company called “TikTok Global” (ironic).

__*Deep breaths*...__ The ban on US TikTok downloads will be delayed to September 27 — but it could be scrapped altogether if the partnership moves forward. Here's the deal:

- __Oracle would get a 12.5%__ in TikTok Global and would store its data on the Oracle cloud in the US.
- __Walmart would get a 7.5%__ stake and provide ecommerce and other online-shopping-related services.
- __Bytedance keeps 80%__ ownership. Buuuut: since US venture firms own 40% of Bytedance, TikTok Global would technically have majority American ownership.
- __The US gov would get__ 25K new US jobs at a TikTok HQ. Also: a potential TikTok Global IPO on an American stock exchange for even more US ownership.

_TikTok's new parents: Oracle, Walmart, and Bytedance investors (in that order)_

Dance

__TikTok Global would be the new TikTok...__ The TikTok we know and love/hate isn't allowed in China. China has Bytedance's Douyin, the non-international (censored) version of TikTok. The *international* TikTok is already banned in its largest market of India, and has faced scrutiny from Europe, Canada, and others. If this US-based TikTok Global is formed, they'll all probably get on it. 


TikTok's deal with Oracle & Walmart gets Trump's approval (ban averted, for now)

__*Is this the real life?*...__ Is this just fantasy (sports)? __[DraftKings](https://robinhood.com/stocks/DKNG)__  stock soared 32% last week, notching an all-time high on [news](https://www.barrons.com/articles/draftkings-stock-hits-record-deal-with-espn-internet-wagering-51600116751) of an ESPN deal. DraftKings' sportsbook and fantasy offerings will be integrated as links on ESPN's website. The sports betting app will also get promoted on ESPN studio shows and segments. The stock is up 52% this month as live sports roar back to life (minus fan-filled stadiums).

__No flake zone...__ Investors showed up big after __[Snowflake](https://robinhood.com/stocks/SNOW)__ went public last week. The adorably-named cloud data management company (not as cute) had the [biggest](https://snacks.robinhood.com/newsletters/20h2lIyDiEHNUxZmIBTfPu/articles/3sU0d3u3Bv3EujmS6dVQ7U) software IPO *ever*. Snowflake stock more than doubled in value on its 1st trading day. VIP institutional investors bought shares at the IPO price of $120. By the time Snowflake hit the market, it was trading at $245 — retail investors like us [missed out](https://snacks.robinhood.com/newsletters/20h2lIyDiEHNUxZmIBTfPu/articles/3sU0d3u3Bv3EujmS6dVQ7U) on the big jump.

__Reel in the nautical  puns...__ Shares of cruise operator __[Carnival](https://robinhood.com/stocks/CCL)__ sank 15% last week on a boatload of bad news (sorry). Carnival lost $2.9B last quarter and it literally only has 1 ship sailing right now. Oh, and it also just [announced](https://snacks.robinhood.com/newsletters/1Y9lIHuvuotRAaGBx13qHH/articles/v7L6xGxOXcxofymvA4szS) a $1B sale of new stock to raise money at the worst possible time — Carnival stock is down ~70% this year, so it's selling shares at a major low point. But it's losing $770M/month and only has $8B in cash left, so it's desperate.

__Try offering "flights to nowhere"...__ __[Delta](https://robinhood.com/stocks/DAL)__ 's cash runway doesn't look too good: it's losing ~$800M/month while domestic travel is down ~60% from last year. The government's $25B in airline bailout funds runs out on October 1st. Now Delta is mortgaging its frequent flyer program to raise cash. Last Monday, Delta [announced](https://snacks.robinhood.com/newsletters/46KUPDxFhDhy8dxhA7DfbJ/articles/HMsPMw3JtYyrYyTJ9PsO8) it would use its SkyMiles program as collateral to raise $6.5B in debt. On Thursday, it upped that to $9B. 
