__Blowing up the fambam chat...__ __[Facebook](https://robinhood.com/stocks/FB)__'s precious "family of apps" might have to split up. The FTC and 46 states just served up some major lawsuits, accusing FB of illegally crushing competition by buying rising rivals. It's one of the biggest tech antitrust cases in decades. 

- __2012:__ The term #influencer was barely a thing when the FTC approved Facebook's purchase of Instagram for $1B. 
- __2014:__ The FTC greenlit Facebook's $19B splurge on WhatsApp, your go-to for sending memes to your foreign cousin.
- __2020:__ The FTC, whose life goal is to target and destroy unfair business practices, wants FB to separate from Insta and WhatsApp.

__Losing the plug...__ While these lawsuits could take years to resolve, losing precious Instagram and WhatsApp could be an existential crisis for Facebook (Zuck's words). Partly, that's because WhatsApp and Insta users are growing [faster](https://investor.fb.com/investor-news/press-release-details/2020/Facebook-Reports-Third-Quarter-2020-Results/default.aspx) than Facebook and Messenger users. Here's what we dug up from FB's September earnings report:

- __Finding:__ Daily users on FB and Messenger grew 12% to 1.8B people. But the "Family" of apps' *total* daily users, including Insta and WhatsApp, grew *15%* to 2.5B. 
- __Conclusion:__ WhatsApp and Instagram clearly boosted overall user growth. Also: around 700M people use WhatsApp and/or Insta daily without touching Facebook.


Family

__This is partly why FB wants a mega app...__ Facebook has been [pushing](https://snacks.robinhood.com/newsletters/1kYmxcOR7aF1J3uKX3DUot/articles/1w4tRYiuvv24F8QXsGlwIg/) hard to integrate messaging and payments across its apps. The goal: create a connected WhatsInstaBook experience. The side-goal: make it way harder for regulators to break it up. Now those plans could be stalled — or aggressively fast-tracked.

Facebook might have to break up with Insta and WhatsApp— we break down the numbers

__"We got the Big Mick"...__ As Eddie Murphy learned in *Coming to America*: __[McDonald's](https://robinhood.com/stocks/MCD)__ may look corporate on the outside, but it's family on the inside. 93% of its 39K locations are franchised, aka: owned by independent people. Mickey D's sells the rights to use its brand and open shop — as long as  the McFlurrys are frosty, no one knows who owns it.

- __Franchisees are UnHappy__, after McDonald's [said](https://www.wsj.com/articles/some-mcdonalds-franchisees-plan-higher-happy-meal-prices-11607456510) it's ending the $300/month Happy Meal toy rebate it pays to its 14K US restaurants.
-  __Expect pricier Happy Meals.__ Some franchisees said they'd raise prices because they'll have to cover toy costs themselves. 

__When you get the Minion...__ but you wanted the mini Hot Wheels. Franchise owners have to pay McDonald's a percentage of their sales *and* buy ingredients and merch straight from corporate. But McDonald's wants to spend that toy money on tech, instead. And it wants franchisees to do the same.

Mick

__Aggressive tech prioritization = pandemic pattern...__ Food chains have been ruthlessly prioritizing tech investments. McDonald's says its new "smart" drive-throughs are boosting sales, so it's charging franchisees higher tech fees. __[Chipotle](https://robinhood.com/stocks/CMG)__ doubled down on its digital-order Chipotlanes. And __[Starbucks](https://robinhood.com/stocks/SBUX)__ just announced it's investing in digital order "walk-through" stores.


McDonald's starts a turf war with franchisees over Happy Meals

Dow Jones

S&P 500

Nasdaq

Bitcoin

"_From now on, we're McDowell's_"

👥 Facebook's family breakup 

__*Boho chic or athleisure grunge?*...__ We're not so sure about the last one. __[Stitch Fix](https://robinhood.com/stocks/SFIX)__ uses human stylists and algorithms to send you curated boxes of outfits each month. It had a major glow-up last quarter, after posting a $45M loss in the *previous* quarter. The stock shot up 40% on these stats:

- __Sales jumped 10%__ from last year, and Stitch expects 20% to 25% growth for its full financial year (investors love to hear it).
- __"Active clients" grew 10%__ to nearly 3.8M, and it notched a surprise profit. 

__"The Fix" is back...__ When we last checked in on Stitch Fix in September, customers were increasingly dropping "the Fix" box and ordering single items à la carte (like getting one spicy tuna roll vs. omakase). Not a great sitch for Stitch, since the subscription box is its real profit puppy and main value prop. Last quarter...

- __The Fix made a comeback:__ First-time Fixes jumped 25%, while traditional retailers like Lord & Taylor and Francesca's filed for bankruptcy.
- __The Fix got smarter:__ The recommendatiom algorithm that picks your outfits improved, leading to higher satisfaction and fewer returns (#datascience). 


_The Devil Wears Stitch Fix_

Algo

__Content is king, but personal curation is queen...__  From __[Netflix](https://robinhood.com/stocks/NFLX)__ with its show-surfacing algorithms to __[Facebook](https://robinhood.com/stocks/FB)__ with its freakishly well-targeted ads, personalization is key to driving sales and engagement (shoutout __TikTok__). This extends to physical products like Stitch's Fixes, too. More personalization = more engagement = less wasted resources = more $$$$.


Stitch Fix stock soars as "the Fix" makes a surprise comeback

__Self-driving yourself to the fridge...__ Or better yet: self-driving the fridge to *yourself*. __[Uber](https://robinhood.com/stocks/UBER)__ just [sold](https://techcrunch.com/2020/12/07/uber-sells-self-driving-unit-uber-atg-in-deal-that-will-push-auroras-valuation-to-10b/) off its self-driving car unit __ATG__ to autonomous vehicle competitor __Aurora Innovation__ (Aurora Carrabis?). But instead of receiving cash in exchange, Uber gets to invest $400M into the combined company. Let's reverse... 

- __ATG was Uber's precious big bet.__ Uber's *still* unprofitable because it pays out most of its bookings to drivers. Self-driving = basically $0 driver costs.
- __But it was losing money...__ Uber says ATG and “other technologies” (like air taxis) have burned through more than $300M this year.
- __....and it was a mess:__ That included a lawsuit for trade secret theft and a tragic autonomous vehicle test that killed a pedestrian. 

__Ride what you know...__ Uber has been doubling down on its core rides and delivery platform, while stepping away from risky moonshots. It just [ditched](https://techcrunch.com/2020/12/08/uber-sells-air-taxi-business-elevate-to-joby-aviation-shedding-its-last-moonshot/) Elevate, its air taxi division. Earlier this year, it offloaded its Jump e-scooters/bikes biz to __Lime__. Instead: it bought Postmates and launched Uber Reserve for rides. 


Auto

__We have to reset our self-driving expectations...__ Every year it seems we're just months away from a breakthrough. Last year, Elon Musk told the world that __[Tesla](https://robinhood.com/stocks/TSLA)__ planned to have 1M autonomous robotaxis on the road in 2020 — spoiler: didn't happen (still 22 days left though!). This week, __[Volkswagen](https://robinhood.com/stocks/VWAGY)__'s CEO said he expects autonomous vehicles to hit the market by 2025 to 2030. Either way, it'll be years before they're ready for primetime. 

Uber sells its self-driving car division because the hype was premature

🚗  Uber's self-driving "sale" 

__Remember the jingle?...__ *You'll love David's Bridaaaal*. The dress was picked, the ballroom was booked, and the overpriced peonies were arranged — and then the pandemic happened. That spelled doom for __David's Bridal__, America's largest wedding gown retailer (#flex). Surprisingly, DB's CEO says demand for wedding dresses has proven resilient. 

- __Yes to the Dress:__ While sales of prom dresses have fallen, DB's brides still spend an average of $600 on their gowns (same as pre-pandemic).  
- __"The Minimony":__ Instead of totally scrapping celebrations, many couples minimized. DB's semi-casual jumpsuits have been in high demand for backyard Zoom weddings. 

__You can't hurry love...__ No, you just have to wait (until you emerge from bankruptcy). DB exited bankruptcy in 2019 after  reducing its debt. But its struggles forced it to focus on building its digital presence, which has been key during the pandemic. Think: virtual stylist consultations, augmented-reality dresses, and an Instagram account that looks like a Pinterest inspo board.

Peony

__The Sequel Wedding is coming...__  More than 60% of American couples had to postpone their weddings, and the 36% that chose to have a minimony plan to have another reception. "Minimony" couples are already planning bigger, flashier round #2 celebrations. DB's also expecting pent-up demand next year as postponed weddings happen. That's why DB thinks it's a perfect time to launch its loyalty rewards program (not as divorce-related as it sounds).

David's Bridal cruises on "Minimonies" and grooms itself for Sequel Weddings

__Save it for the doggy bag...__  __[Cheesecake Factory](https://robinhood.com/stocks/CAKE)__ is the first company to serve plates as large as Manhattan studio apartments. It's *also* the first company to be [charged](https://www.cnbc.com/2020/12/04/cheesecake-factory-settles-with-sec-over-misleading-covid-risk-disclosures.html) by the SEC for misleading investors about the pandemic’s financial impact. Regulators think Cheesecake failed to bake some key info into its March and April financial filings. 

- __Cheesecake said it was "operating sustainably"__ during lockdowns, while internal docs showed it was burning through $6M per week (with just four months of cash left).
- __It also failed to mention__ that it had told landlords it would be skipping on April rent — for once, it left something off the plate.

__Could surf on that chicken parm...__ Cheesecake ended up getting financially saved by a $200M investment later in April, but it *wasn't* spared from regulatory consequences: it settled with the SEC for $125K and agreed to stop leaving things out. 


Cheese

__The SEC makes the stock market possible...__ It holds public companies  accountable for misleading investors — or even straight up lying (cough, __Luckin Coffee__). It was created to prevent everything from insider trading and accounting fraud, to this Cheesecake situation. If we didn't feel confident that financial reports were true, we probably wouldn't invest at all. And if we didn't invest, trillions of idle dollars would be laying around collecting dust – instead of fueling the economy.

Cheesecake Factory is the first casualty of misleading Covid risk disclosures

_Here comes the bride (again)_

👰 Sequel Wedding Season

__If only BLS did a "Wrapped"...__ Instead, the Bureau of Labor Statistics just dropped "The Employment Situation" for November — aka: the final jobs report we'll see this year. We're wrapping up 2020 so far:

- __February:__ The unemployment rate was 3.5%, and social distancing meant flaking on plans to (voluntarily) watch Netflix all day.
- __March to April:__ Lockdowns hit, unemployment spiked to 14.7%, and the US economy lost a staggering ~22M jobs. 
- __May to October:__ Unemployment consecutively fell each month as businesses reopened, from 13.3% in May to 6.9% in October.

__*Drum roll for November*...__ The US [added](https://www.wsj.com/articles/november-jobs-report-unemployment-rate-2020-11607028480) just 245K new jobs, down from 638K in October. Unemployment fell slightly to 6.7%, but that's partly thanks to people dropping out of the labor force (not searching for work = not  unemployed).

- __The good:__ The US has added back more than 12M jobs since March, a promising vaccine is on its way, and stocks are at record highs. 
-  __The bad:__ The labor force is 2.2% smaller than pre-pandemic. That's [largely](https://www.wsj.com/articles/covid-shrinks-the-labor-market-pushing-out-women-and-baby-boomers-11607022074) due to women dropping out to cover childcare.
-  __The ugly:__ 10.7M Americans are still unemployed, the pace of recovery is significantly slowing, and Covid is surging. 


_When Santa arrives earlier than the second stimulus_

Recap

__This could be the tipping point...__ The $2.2T stimulus in March, coupled with reopenings, drove a swift recovery. But now the *rest* of jobs will be harder to bring back, especially with new business restrictions: California [imposed](https://www.cnbc.com/2020/12/03/california-to-impose-regional-stay-at-home-order-to-ease-covid-hospitalizations-governor-says.html) a regional stay-at-home order that closes bars, salons, and forbids outdoor restaurant dining. Centrists in Congress have [unveiled](https://www.washingtonpost.com/us-policy/2020/12/03/what-is-in-congressional-bailout-deal-stimulus-checks/) a $908B economic aid proposal — November's jobs report could be a wake-up call to pass something ASAP. 


The final jobs report of 2020: we're rounding up the good, the bad, and the ugly

__If you didn't post a "Wrapped" Insta story...__ *did you even listen to music this year?* __[Spotify](https://robinhood.com/stocks/SPOT)__ stock soared 15% last week, hitting a record high on "Wrapped" hype. Bad Bunny hopped to #1 for most streams, while Spotify [jumped](https://www.bloomberg.com/news/articles/2020-12-02/spotify-technology-soars-to-record-amid-2020wrapped-buzz) to #9 on the US app store on Wednesday. The Swedish streamer also got boosted by Joe Rogan's podcast, which became Spotify exclusive (ICYMI: Spotify is [obsessed](https://snacks.robinhood.com/newsletters/4lL77HNnzznybDiiMLIPMs/articles/6QKYpKI1836pYyUeFtTynA/) with pods).

__Freeing up parking space...__ __[Boeing](https://robinhood.com/stocks/BA)__'s 737 MAX jets are back in the air after nearly two years of sitting in lots. Last week, __[American Airlines](https://robinhood.com/stocks/AAL)__ flew the 1st public 737 MAX flight since March 2019, when the FAA grounded the troubled airliner after two fatal crashes. American filled the plane with journalists to [convince](https://snacks.robinhood.com/newsletters/5mY5sSUetVsDU3TVYIRcys/articles/7j5HzMMfRgxpGVto8ABkFg) the public that it's safe ahead of its commercial flight on December 29th. Another show of support: __[Ryanair](https://robinhood.com/stocks/RYAAY)__ ordered 75 more MAX jets. Boeing stock jumped 7% for the week.


Highs

Who's up...

__No-K, Zoomer...__  __[Zoom](https://robinhood.com/stocks/ZM)__'s sales soared 367% last quarter, nearly *quintupling* from the same quarter last year and [accelerating](https://snacks.robinhood.com/newsletters/2DV0K2wVHBmteYtKWPLFxf/articles/5skmEynReCRx5kvYHYay2X) for three straight quarters. Despite the insane momentum, investors weren't impressed because Zoom's expecting just 329% sales growth this quarter (yawn). Investors were also bummed about its shrinking profit margin, so the stock fell 13% for the week. Despite the tough crowd, Zoom shares have ~6X'd in value this year.

__*The Undoing*...__ of movie theaters, courtesy of HBO. Brad Pitt hit the fan on destructive [news](https://www.cnbc.com/2020/12/03/warnermedia-ceo-jason-kilar-doesnt-think-he-destroyed-movie-theaters.html) from __[AT&T](https://robinhood.com/stocks/T)__'s WarnerMedia last week: Warner Bros. will release all 17 of its 2021 movies on HBO Max *at the same time they hit theaters*. Dropping the entire slate of films directly to streaming = no exclusive theatrical window. __[AMC](https://robinhood.com/stocks/AMC)__, the world's largest theater chain, watched its stock plunge 21% for the week.


Lows

...and who's down

💰 Jobs, stocks, and stimulus talks

__Up in the air...__  __[American Airlines](https://robinhood.com/stocks/AAL)__ just flew the first public Boeing 737 MAX flight since March 2019. The FAA grounded __[Boeing](https://robinhood.com/stocks/BA)__'s troubled airliner after two crashes that killed 346 people. Last month, the 737 MAX was cleared to fly again. But American still has *a lot* of convincing to do before December 29th, when its first commercial MAX flight departs from Miami. Which brings us to Wednesday...

- __American's 1-hour test flight__ was [filled](https://thepointsguy.com/news/american-737-max-demo-flight/) with journalists. The pilot explained changes that were made to the plane to address safety issues.
- __American also flew the first of five__ employee-only “flights to nowhere” on the 737 MAX. It needs to win back employee confidence before it wins back *public* confidence.

__Oh, Boeing...__ This press stunt reminds us of when NYC [marched](http://behindthescenes.nyhistory.org/elephants-panic-brooklyn-bridge-1883/) elephants across the Brooklyn Bridge in the 1880s to prove it was safe. But American, which has the world's largest fleet of planes, is eager to get passengers back: out of its nearly 900 planes, 24 are MAXes. That's over $1B worth of planes that have been [sitting](https://www.cnbc.com/2019/06/26/boeings-grounded-737-maxes-took-over-the-employee-parking-lot.html) in parking lots for nearly two years (big L). 


__This could backfire for American...__ Unless you’re an aviation geek (#avgeek), you probably don't pay much attention to your plane model — or even if it was Boeing vs. __[Airbus](https://robinhood.com/stocks/EADSY)__. But this publicity associates American with the 737 MAX. The FAA's boss [said](https://www.bbc.com/news/business-54981658) he's now "100% confident" in the plane's safety, and __[Ryanair](https://robinhood.com/stocks/RYAAY)__ just ordered 75 MAXes. That all helped send American shares up 7%, and Boeing up 10% for the week. Still: Southwest [says](https://www.reuters.com/article/boeing-737max-southwest-customers/southwest-says-about-25-of-customers-not-comfortable-flying-737-max-idUSL1N2I51SK) 25% of its customers wouldn't feel comfortable flying on one. 


American flies the 1st public 737 MAX flight in 20 months to try to show it's now safe

__Sip it on the "ForYou" Page...__ It'll probably taste better on TikTok than it does in real life. __[Dunkin'](https://robinhood.com/stocks/DNKN)__ just [dropped](https://www.cnn.com/2020/12/03/business/dunkin-sugarplum-macchiato-drink-trnd/index.html) the Sugarplum Macchiato, a "color-changing" new holiday drink with a light purple ombre effect (read: Insta-bait). When you shake it, the purple mixes with the coffee-colored part to create... *a coffee-colored drink*. This revolutionary beverage apparently took Dunkin' four years to develop. But it only took 24 hours to go viral (~400K TikTok views).

__Unicorn Frapp energy....__ Viral drinks are nothing new, from Starbucks' "Pink Drink" to multicolored frappucino monstrosities. But these time-intensive concoctions *are* scarce during the pandemic. Big chains have been streamlining to focus on simple classics they can get out fast for takeout and delivery.

- __[McDonald's](https://robinhood.com/stocks/MCD)__ [kicked](https://snacks.robinhood.com/newsletters/5A4ZEajsQw0bmhsFuBK1AS/articles/ZPMkQ5nokGIkOUkiOPOyD/) 100 items off its menu back in June (goodbye, salads).
-  __[Starbucks](https://robinhood.com/stocks/SBUX)__ is keeping its holiday menu simple — the star is Irish Cream Cold Brew (*but is it color-changing?*).
-  __Dunkin'__ hasn't made a "colored flavor swirl" drink since Valentine's Day (Pink Velvet Macchiato). 


"_How do you like them Sugarplum Macchiatos?_"

__Experiential Products are the new Experiences...__ Pre-pandemic, people were splurging on experiences: Coachella tickets, a weekend Airbnb, a baseball game, or a $30 spin class. Now, the non-essential splurging has shifted to experiential *products*. That includes everything from __[Peloton](https://robinhood.com/stocks/PTON)__ bikes, to __HelloFresh__ meal kits, and... Dunkin' Sugarplum Macchiatos. 


Dunkin's new color-changing drink is the epitome of "Experiential Product"

_Getting Sugarplum Macchiato FOMO_

✈️ American's big flight

__"The Shazam for food"...__ Sounds promising. Venture capitalists invest in private startups with high growth potential. In exchange for money, they get shares (which they hope will eventually translate to way *more* money). When you think of VC, you're probably thinking  __Andreessen Horowitz__, __Sequoia__, and Monica from *Silicon Valley*. But banking OG __[Citi](https://robinhood.com/stocks/C)__ also [has](https://news.crunchbase.com/news/how-banking-giant-citis-vc-arm-invests-in-billion-dollar-exits/) a surprisingly active venture arm:

- __9:__ The number of unicorns Citi Ventures has invested in. Six of its companies have exited (aka: gone public) at $1B+ valuations.
- __61:__ The number of new portfolio companies Citi has backed since 2015. 

__The OG misspelled company name...__ Citi's been doing it for years. It also invested early in companies like __Plaid__ (which __[Visa](https://robinhood.com/stocks/C)__'s trying to [acquire](https://snacks.robinhood.com/newsletters/70SavazX1qdJQfiXf95GQk/articles/75uHoSzqmVL97gTjdczFsZ/) for $5.3B) and __Jet.com__ (which __[Walmart](https://robinhood.com/stocks/WMT)__ bought for $3.3B). When those companies get bought or go public, Citi cashes in — sometimes, with massive returns. Other notable Citi investments:

- __[Square](https://robinhood.com/stocks/SQ):__ The mobile payments company IPO'd at a $9 share price in 2015. Now the stock is worth ~$200.
- __[DocuSign](https://robinhood.com/stocks/DOCU):__ The e-signature classic has more than 5X'd in value since its 2018 IPO. 
- __Honey:__ __[PayPal](https://robinhood.com/stocks/PYPL)__ bought the digital coupon company for $4B. From all the ads we hear from YouTubers and podcasters, it seems to be doing swimmingly.

_Citi Ventures evaluating its next investment_

Invest

__Citi invests in what it *knows*...__ Wild stat: two-thirds of Citi's portfolio companies have a commercial relationship with Citibank. For example, Citi [uses](https://www.citibank.co.uk/personal/docusign.do) DocuSign to offer customers free e-signatures. By knowing and *using* the products it's investing in, Citi has a better grasp of their value and growth potential.


Citi's venture capital side hustle is surprisingly active — and it's trying before buying

__Which Nasdaq?...__ __[Nasdaq](https://robinhood.com/stocks/NDAQ)__ is the publicly traded company which owns and operates the tech-heavy Nasdaq stock exchange. Now, it's looking for SEC approval to implement a board diversity rule for the ~3K companies listed on its exchange. It would be one of the biggest moves ever made to diversify predominantly white and male corporate boardrooms.

- __The Proposal:__ Require companies to have at least one woman on their boards and a director who is a racial minority or who identifies as LGBTQ. 
- __The Status:__ 75% of Nasdaq's companies *don't* meet that proposed requirement. But they might have to in order to stay on the exchange.
- __The Future:__ Nasdaq-listed companies would have to provide diversity stats within a year, and have one “diverse” director within two years (... or explain why they can't).

__Deliver the stats...__ Studies [indicate](https://corpgov.law.harvard.edu/2020/10/11/board-diversity-no-longer-optional/) that companies with diverse boards perform better financially and are more innovative. Every S&P 500 company [had](https://www.cnbc.com/2019/07/25/there-is-now-a-woman-board-member-at-every-sp-500-company.html) at least one female director at the end of 2019, but males still controlled 73% of all board seats. Last year, just 59 of the 500 S&P companies disclosed their directors' ethnicity, reporting 78% white board members.


Change

__Big corporations can act as de facto lawmakers...__ and significantly shape society without actual legislation. This year, __[Goldman](https://robinhood.com/stocks/GS)__ said it would no longer ship IPOs of American companies that don't have at least one “diverse” board member. As the gatekeeper to one of the biggest stock exchanges in the world, Nasdaq has even more serious leverage. 

Nasdaq makes big moves for more boardroom diversity

__PFWTM are really familiar...__ On Monday, we [wrote](https://snacks.robinhood.com/newsletters/5AyMJ9TNH3jIBAfRNyjbSd/articles/1LIbEsUTYBhfvTVy0Ramxr/) that __[Salesforce](https://robinhood.com/stocks/CRM)__ was in talks to buy __[Slack](https://robinhood.com/stocks/WORK)__ for more than $17B. On Tuesday, Salesforce [confirmed](https://www.wsj.com/articles/salesforce-confirms-deal-to-buy-slack-for-27-7-billion-11606857925) it's buying Slack for $27.7B — its biggest splurge ever.  *Today*, we're looking at what happens to your shares post-acquisition.  

- __For each share of Slack stock__ that you own, you'll get $26.79 in cash and ~7.8% of a Salesforce share. 
- __~$44:__ The price of Slack's stock yesterday — it was trading at $29 last week before the news.
- __~$44:__ The value you'd get if the acquisition happened yesterday: $26.79 + $17.16 (the fraction of a Salesforce share, ~$220). The market almost perfectly priced in Slack's acquisition price. 

__Big BTW...__ The deal still has to get OK'd by shareholders and regulators. We don't know what Salesforce's stock price will be when/if the deal goes through, but that'll affect the value of what Slack shareholders end up with.

- __For Slack shareholders,__ it seems like a win. Slack's WFH sales gains pale in comparison to __[Zoom](https://robinhood.com/stocks/ZM)__'s, but its shares just got a big boost.  
- __For Salesforce shareholders,__ it *seems* like a loss. Some don't think this major splurge on unprofitable Slack makes sense — so  the stock is down 14% this week.


"_Get this Slack-quisition done, stat_"

Share

__Salesforce seems desperate to keep growing...__ and it's leaning on other companies to make that happen. The software giant has made 60+ acquisitions over the years. Salesforce and Slack both reported earnings on Tuesday (they coordinated — so cute). While Slack’s sales are growing nearly twice as fast as Salesforce’s, both saw a slowdown from the previous quarter.


The Slack-quisition is official: we're looking at what it means for investors

💰 Citi's entrepreneurial streak

__OK, Zoomer...__  __[Zoom](https://robinhood.com/stocks/ZM)__ is like that [manatee](https://www.youtube.com/watch?v=CLGJ-LVCQrM) squishing into aquarium glass to the tune of "I Can't Stop" (never gets old). It just dropped *another* insane quarter of expectation-beating growth, bringing in $777B in sales. That's because social distancing — like the manatee — didn't stop, either. 

- __+367%:__ How much Zoom's sales soared last quarter, nearly *quintupling* from the same quarter last year. 
- __+355%:__ How much Zoom's sales grew in the previous quarter. And they jumped 169% in the quarter before *that*. AKA: growth accelerated for three straight quarters.
- __+555%:__ How much Zoom stock has soared since it went public in April 2019 with a market value of $15.9B. Today it's worth ~$115B.

__Tough crowd...__ Zoom stock dropped 15% after the earnings announcement. Investors were disappointed because: Zoom expects 329% sales growth for this quarter (laaaame), which would be a slight slowdown from last. Also: Zoom's profit margin shrank from the previous quarter because it spent more. 


_The awkward last 2 seconds of the Zoom_

Zoomer

__You're only as valuable as your most valuable customers...__ All the free users (think: students, teachers) that Zoom gained last quarter *aren't* free: Zoom has to spend big $$$ to cover cloud costs so that Geometry class can happen — but it doesn't get paid. Still, Zoom still saw insane growth because "customers with more than 10 employees" grew 485% from last year. And more than 400K+ of them are paying.

Zoom's sales more than quadrupled last quarter — but the stock still fell

__Spraying on $20 worth of Caudalie toner...__ while "browsing" __Sephora__. You'll be able to do that at __[Kohl's](https://robinhood.com/stocks/KSS)__ soon, too: Sephora will open mini-shops in 850 Kohl’s stores by 2023. Sephora has stores in (now bankrupt) __JCPenney__ — now it's winding those down to move in with Kohl's for 10 years. Sephora's luxurious parent __LVMH__ approved the serious relationship.

- __For Sephora:__ “This is about reach.” Kohl’s 1K+ stores have little overlap with Sephora's standalone locations, which tend to be in big cities.
- __For Kohl's:__ It’s about attracting younger shoppers. Kohl’s hopes Sephora will help triple its beauty sales. Skincare has done well in the pandemic.
- __For shoppers:__ More Sephora locations + less parking hassle. *And*: you can still earn Sephora loyalty points at Kohl's (free mini mascaras FTW).

__Hands off the Fenty bronzer...__ Sephora's arch-rival __[Ulta Beauty](https://robinhood.com/stocks/ULTA)__ recently [announced](https://snacks.robinhood.com/newsletters/4lL77HNnzznybDiiMLIPMs/articles/kC2AwNdECpt0YDHLSephh/) it's moving into __[Target](https://robinhood.com/stocks/TGT)__ with the same "Inception Retail" model (store-within-a-store). Here's how Sephora's Kohl's relationship is different:

- __PDA:__ "We're going to be very loud" — Kohl's CEO [says](https://www.cnbc.com/2020/12/01/kohls-to-open-850-sephora-beauty-shops-in-its-stores-by-2023.html) shoppers will clearly see Sephora's mini-storefronts from outside Kohl's (equivalent of a couples pic on Insta).
- __Exclusivity:__ Sephora's brands will [become](https://www.wsj.com/articles/sephora-to-set-up-shop-inside-kohls-11606829400?mod=business_lead_pos3) Kohl’s *only* beauty offerings in those stores and online, replacing the current ones (#NewBae). 

_Trying on "free samples" at Kohl's Sephora store_

Contour

__Beauty is an anchor product...__ and Kohl's desperately needed a good one. Anchor products are things you go through fast and buy routinely. For __[CVS](https://robinhood.com/stocks/CVS)__, that's prescription meds. For __[Chewy](https://robinhood.com/stocks/CHWY)__, that's dog food. For Kohl's, that's foundation. Now that malls and department stores are struggling, compelling anchor products are more important than ever. Kohl's is betting that Sephora's moisturizers will be just that.

Sephora moves into Kohl's with "Inception Retail" (it's really about anchoring)

🎥 Zoom intensifies (but its stock doesn't)

__Steph Curry with the shot...__ __[Under Armour](https://robinhood.com/stocks/UAA)__'s been cooking with the sauce. The sports apparel company is trying to take its lackluster 2020 from 0 to 100 real quick... with a major celeb [partnership](https://www.cnbc.com/2020/11/30/under-armour-launches-a-brand-with-nba-star-steph-curry.html). 

- __Curry Brand:__ UA's new line with NBA legend Steph Curry. Expect men's shoes and clothes for sports from basketball to golf — and women's apparel eventually, too.
- __Jordan Brand:__ What UA's going for. __[Nike](https://robinhood.com/stocks/NKE)__'s Jordan brand notched record sales last quarter, and its AF1 is the most-purchased shoe of 2020 (your Insta feed knows). 

__Spice Up This House...__ UA thinks Curry could do that. It's been laser-focused on "technical performance apparel" (aka: the *opposite* of athleisure). UA reminds you of the sweat-wicking jersey you wore in track  — *not* the comfy leggings you WFH in. UA's hoping this buzzy new brand will curry favor with Gen Z.

- __Nike = #1 favorite apparel brand__ among teens for the past 10 years, according to Piper Sandler. Its stock is up 31% this year on the work(out)-from-home life. __[Lulu](https://robinhood.com/stocks/LULU)__'s up 59%.
- __UA = #1 "no longer worn" brand__ among male teens (way harsh, Tai). Its stock is *down* 24% this year because professional sports were cancelled (along with your track meet).

_Has never worn Under Armour_

Ball

__Consumers want a happy medium...__ between function and fashion. UA's brand is too intense/intimidating to be worn for your grocery speed walk. UA needs to soften its look to gain mass appeal, but it doesn't have to give up its high-quality performance bar to do that. It's a matter of style and marketing. Curry Brand could be the perfect way to go mainstream. 

Under Armour launches Steph "Curry Brand," shooting for Nike-Jordan hype

__Try funky spelling...__ for that Unicorn Status. __[Facebook](https://robinhood.com/stocks/FB)__ is buying customer service startup __Kustomer__, [reportedly](https://www.wsj.com/articles/facebook-nears-purchase-of-startup-in-deal-that-values-it-at-1-billion-11606750196?mod=business_lead_pos2) for more than $1B. Kustomer unifies customer interactions from multiple channels to give support reps a full picture. Think: "Cindy sent four Insta DMs, three chatbot messages, and 10 emails today — send her an apology gift card." FB already uses Kustomer to help businesses aggregate customer Qs from Messenger and Instagram. 

__WhatsInstaBook...__ Kustomer's all-in-one customer relationship service perfectly fits FB’s social ecommerce mega-app ambitions. FB has been pushing to integrate messaging and payments across its "family of apps" (FB, Insta, WhatsApp, Messenger). This acquisition could further its goal of becoming *the* "social commerce" platform (Zuck's words).

- __Shop:__ In May, Facebook [intro’d](https://snacks.robinhood.com/newsletters/7Fl0kcKPHzNEVEVwnee0Zp/articles/7GbosmnxcsEDfjk2yPdKh6/) “Shops," letting businesses set up digital storefronts across FB/Instagram. 
- __Pay:__ In August, Facebook [unified](https://snacks.robinhood.com/newsletters/5bz9qW2WXWRwJlMpsAJeyn/articles/5AHVh70VBoazvrWftCrY4n/) its payment tools under “Facebook Financial” and announced plans to integrate messaging across apps.
- __Support:__ Now, Facebook wants to offer Kustomer's platform as a perk to lure and lock in businesses. 

_The one channel Kustomer can't track you on_

Chat

__The "next billion" could be businesses...__ Facebook has 2.5B users — it's betting that its *next* billion will come from businesses. 200M businesses use FB, but now it's investing big to reach Amazon-level ecommerce status. Businesses can boost users’ time spent and ad sales (a big deal for FB, which is almost 100% ad-reliant). But they also give FB a non-ad revenue stream: FB gets a cut of each sale made on its apps.  It's even starting to [charge](https://www.cnbc.com/2020/10/22/facebook-to-charge-for-whatsapp-business-services.html) for WhatsApp Business services.


Facebook dives deeper into "social commerce" with a $1B customer service purchase

__Must've missed the Black Friday deals...__ Data giant __[S&P Global](https://robinhood.com/stocks/SPGI)__ is [buying](https://www.cnbc.com/2020/11/30/sp-global-to-buy-ihs-markit-for-44-billion-in-the-largest-deal-of-2020.html)  London-based __[IHS Markit](https://robinhood.com/stocks/INFO)__ for a mind-numbing $44B. Not only does IHS Markit take the cake for the *worst company name of all time* — it's also the priciest acquisition of 2020. 

- __Data for breakfast:__ Like __Bloomberg__ with its terminal biz, S&P Global is one of the biggest financial info sources (#finfo). 
- __Lunch:__ It gives countries and companies credit ratings, and equips analysts and fund managers with meaty financial intel. 
- __And dinner:__ It also charges for real-time visibility into its famous S&P 500 index.

__Are you a derivative?...__ Because I see you in my future. S&P wants to buy IHS to create a massive finfo force and reduce competition. But the deal still needs to be OK'd by regulators. BTW: data from companies like IHS and S&P trickles down to retail investors like us, too (in articles and financial reports).

Crunch

__Data is a competitive advantage...__ That's Wall Street's way of saying "knowledge is power." This mega-deal emphasizes the importance of big data for financial markets (and their info-obsessed financiers and trading algorithms). S&P Global stock is at an all-time high because investors know Wall Street is willing to pay up big for those insights.


This $44B acquisition is the biggest of 2020 —  it's all about the market data

🏀 Under Armour's Steph Curry shot

__Set your status back to "Active"...__ Just before Thanksgiving break, news broke that __[Salesforce](https://robinhood.com/stocks/CRM)__ is in advanced talks to buy __[Slack](https://robinhood.com/stocks/WORK)__ — [according](https://www.wsj.com/articles/salesforce-has-held-talks-to-buy-slack-technologies-11606326392) to WSJ's infamous "people familiar with the matter" (#PFWTM). Slack is the office messaging app that rules your life. Salesforce is the cloud software company *obsessed* with Customer relationship management (CRM). Think: salespeople compulsively logging interactions with leads — "sent 808th cold email to CFO."

- __Slack stock soared 39%__ for the week. The deal would likely value it at more than $17B, making it Salesforce's biggest acquisition. Slack hasn't been doing as well as __[Zoom](https://robinhood.com/stocks/ZM)__ in the WFH boom. 
- __Salesforce stock dipped 4%__ on the possibility of *another* pricey acquisition. Over its 21-year history, Salesforce has leapfrogged by buying 60+ companies. 

__Joining #baby-yoda-memes channel...__ Salesforce and Slack have two things in common: they're both business-facing subscription cloud companies *and* they're both __[Microsoft](https://robinhood.com/stocks/MSFT)__ rivals. Lately, Microsoft has been aggressively expanding its Teams suite, offering Slack-like collaboration features. It also has a cloud CRM competitor called Dynamics.

- __Over the years,__ Salesforce has moved towards becoming an "all-in-one" business software provider, offering services like data analytics. 
- __This Slack-quisition__ would give it 130K+ paying Slack customers to further that goal — and gain an edge on Microsoft. 


"_Yes, we are proficient in Slack — professional Slackers._"

Slacking

__Salesforce is cementing its B2B focus...__ that's business-to-business. Microsoft has B2B *and* strong consumer-facing businesses (Microsoft Word, Xbox, LinkedIn). Even legacy B2B tech giant __[Oracle](https://robinhood.com/stocks/ORCL)__ has been showing interest in consumers with its pending __TikTok__-quisition. Salesforce tried to buy LinkedIn in 2016 (but lost to Microsoft). Four years later, it's cementing its B2B-only strategy with this potential Slack-quisition.  

Salesforce cements its B2B strategy with a possible (pricey) Slack-quisition 

__Can't wait for TwitTok and TikPin...__ __[Snap](https://robinhood.com/stocks/SNAP)__'s Stories feature has been copied by nearly every social app. Now Snap's doing some [copying](https://snacks.robinhood.com/newsletters/4FkCjpJwKORDiKy500f2ZF/articles/7088nac8X7EfcJiG7uM7Vs) of its own with a new "Spotlight" tab for endlessly scrolling viral vertical videos (#ThreeVs). Addictive "Three Vs" content is the secret sauce of __TikTok__'s wild growth. That's why __[Facebook](https://robinhood.com/stocks/FB)__ is aggressively pushing Insta "Reels" — and why Snap is shelling out $1M *each day* to  Spotlight creators. With the scrutiny around viral misinformation, Snap's moving into riskier territory. Still, the stock jumped 4% for the week and has nearly tripled this year.

__*That's sooo Fitch...*__ Your favorite place to pose with shirtless "models" in 7th grade is having a moment. __[Abercrombie & Fitch](https://robinhood.com/stocks/ANF)__ stock [soared](https://snacks.robinhood.com/newsletters/3ttBErSSQrIe79dLUPKbhc/articles/3oB8WEdGPEUvAAyPFdCtsY) last week on expectation-beating quarterly earnings. Online sales jumped 43%, and Abercrombie notched a profit thanks to cost-cutting. Interestingly: its Californian sub-brand Hollister brought in 58% of total sales. Hollister got boosted by its sub-*sub*-brand Gilly Hicks, which makes comfy loungewear and bralettes.

__Vax on, vax off...__ __[AstraZeneca](https://robinhood.com/stocks/AZN)__ stock dropped 5% for the week on two pieces of not-so-hot news. First, it announced that its Covid-19 vaccine was 70% effective on average. That sounds solid — until you compare it to __[Pfizer](https://robinhood.com/stocks/PFE)__ and __[Moderna](https://robinhood.com/stocks/MRNA)__'s 95% effectiveness rates. *Then*, AstraZeneca [acknowledged](https://www.nytimes.com/2020/11/25/business/coronavirus-vaccine-astrazeneca-oxford.html) a key mistake in its trials, which made experts  question the reliability of its data. Oxford University, which jointly made the vaccine, [says](https://www.cnbc.com/2020/11/27/oxford-who-scientists-more-data-needed-on-astrazenecas-covid-vaccine-trials-.html) more data is  needed to determine its efficacy and safety.

__Peace, Love...__ the Gap? Oversized hoodie legend __[Gap](https://robinhood.com/stocks/GPS)__ wasn't feeling it last week. Its stock plunged 11% on worse-than-expected quarterly earnings. Gap's Old Navy brand saw strong growth, and its athleisure brand Athleta (unsurprisingly) performed particularly well — sales soared a record 35% on the leggings life. Despite a 61% jump in online sales, Gap's profit missed estimates because it boosted marketing spend last quarter. 


💬  Slack's surprise acquisition news 

__First "Story Pins"...__ now this. __[Pinterest](https://robinhood.com/stocks/PINS)__ wants to be more than just an inspo board for your French chateau-style dream kitchen. It [launched](https://techcrunch.com/2020/09/23/pinterest-story-pins/#:~:text=Story%20Pins%20are%20being%20rolled,in%20iOS%2014%20design%20ideas.) a Stories feature in September, copy-catting Snapchat (then again... who hasn't?). Now, it's [getting](https://techcrunch.com/2020/11/24/pinterest-tests-online-events-with-dedicated-class-communities/) into online events:

-  __Pinterest is testing a new feature__ that lets people sign up for __[Zoom](https://robinhood.com/stocks/ZM)__ classes. It was discovered by reverse engineering pro Jane Manchun Wong (legend).
-  __Creators can reportedly use "class boards"__ to organize course materials and chat with attendees. Think: latte art designs and mindfulness meditation how-tos. 

__A pandemic pinner...__ is a pandemic winner. E-learning isn't totally new territory for Pinterest. Since lockdowns hit, teachers have used it to organize remote learning resources, from lesson plans to activities. Wild stat: during a single weekend in March, Pinterest saw more global searches and saves than *ever* in its history. And it's still #pinning:

- __Pinterest's sales__ jumped 58% last quarter, and users grew 37% to 442M.  
- __Pinterest stock__ has more than *tripled* in value this year.

Pinning

__Tech is taking over "Experiences"...__ From virtually rolling pasta with an Italian grandma to meditating with Buddhist monks from your couch — tech companies are uniquely poised to quench our pandemic thirst *to do something*. __Airbnb__ has doubled down on the virtual "Experiences" side of its biz, and even [managed](https://snacks.robinhood.com/newsletters/54qEy7poaQltD2SG2mPMOY/articles/8TNFGrCkEDFgFvXexFH0k/) to turn a profit last quarter. __[Amazon](https://robinhood.com/stocks/AMZN)__ [launched](https://techcrunch.com/2020/09/29/amazon-launches-a-virtual-tours-and-experience-platform-amazon-explore/) a copycat digital experiences product called "Amazon Explore" in September. And __MasterClass__ raised $100M in May on the success of its virtual "Edu-tainment." 


Pinterest tests virtual events with "class communities" (it's a Zoom-Airbnb mashup)

__DowThirtyThow...__ On Tuesday, the Dow index surged above the 30K milestone for the 1st time. That's a nice glow-up from March, when it was trading below 19K. 

- __[The Dow](https://learn.robinhood.com/articles/13urVTf3GSQYdsr7Eq5fHL/what-is-the-dow/)__ is a super exclusive club with fewer members than your Econ discussion group — it's made up of 30 big, publicly-traded US companies. 
- __"Blue-chip" status:__ Dow companies generally have long, profitable track records — aka: excellent reputations. __[Microsoft](https://robinhood.com/stocks/MSFT)__, __[Nike](https://robinhood.com/stocks/NKE)__, and __[Walmart](https://robinhood.com/stocks/WMT)__ are members. 

__Not the only record-breaker...__ Stocks took a major plunge into the valley of the coronavirus back in March, but now the three major indexes are at record highs. Promising vaccine [news](https://snacks.robinhood.com/newsletters/6f9hTxnuMnb4G0Vl1fQwPq/articles/7K9MWI8vplzw10q43Xy1Qo/), less political uncertainty, and renewed hopes for a second stimulus have all boosted the rally.

- __The Dow__ is up 2% from its pre-pandemic record high.
- __The S&P 500__ is up 9% from its pre-pandemic high.
- __The tech-heavy Nasdaq__ is up a whopping 33% from its pre-pandemic record. 

_The economy and the stock market_

__The stock market doesn't always mirror the economy...__ especially not the corona-conomy. While the unemployment rate is declining, more than [11M](https://www.bls.gov/news.release/pdf/empsit.pdf) Americans are still unemployed. Last week, jobless claims [posted](https://www.bloomberg.com/news/articles/2020-11-25/u-s-jobless-claims-unexpectedly-jump-to-highest-in-five-weeks?srnd=premium&sref=q3KSFp38) their first back-to-back increases since July. Also: Americans' incomes and savings fell last month, and consumer confidence slipped more than expected *this* month. 