__Cream of Mushroom Mondays...__ *followed by Tomato Bisque Tuesdays*. __[Campbell](https://robinhood.com/stocks/CPB)__ was feeling like Souperman back in March after people started [stocking](https://snacks.robinhood.com/newsletters/2p7mRmqVVFiLJPwVlHXfcT/articles/4SfcbHp5u7jngjQt0s9Kjd/) up on its pantry classics. The pandemic sales jump was driven by Millennials buying soup, "a trend that many believed was not possible," according to Campbell's CEO. Now, he believes in his shelf.

- __+1%:__ The quarterly sales growth Campbell posted in March. Sounds underwhelming — actually *fantastic* for a company whose soup sales have fallen 8 out of the past 9 years.
- __+17%:__ Campbell's wild June quarter growth. People hoarded its pantry products including: Snyder's pretzels, Goldfish crackers, and Pop Secret popcorn (*claaassic* Netflix lineup).
- __+12%:__ What Campbell just [reported](https://www.wsj.com/articles/campbell-sees-demand-tempering-in-coming-quarters-11599138385?mod=business_lead_pos7) for its latest quarter. Sales of soups, Prego sauces, and V8 juices soared 19%. Despite those tasty numbers...

__Campbell stock fell 7% Thursday...__ That's because demand for its products is *slowing* after the months-long surge.  Campbell’s CEO hasn't lost hope:  soups and broths are still being used to cook "more modern" dishes (think: Chicken Noodle + cauliflower rice). But are cauli recipes enough to hold onto the Millennial shoppers gained during the pandemic?


_When the Campbell Soup delivery arrives_

Slurp

__Customer retention is hard...__ especially when your customer growth was fueled by pandemic panic. Campbell is expecting its sales slowdown to continue as we return to a lifestyle that doesn't involve can-hoarding. Young people are eating out more often and eating fresher foods — more frequent grocery trips, less once-a-month hoarding splurges. Campbell hasn't done much Millennial-friendly culinary innovation to retain its new cohort of Soupers.


Campbell's make-or-break Millennial soup moment

__Hold the (combusting) phone...__ We spot a trend. __[Kodak](https://robinhood.com/stocks/KODK)__ wants to manufacture drug ingredients. __[Nestlé](https://robinhood.com/stocks/NSRGY)__ bought a biotech company.   __Samsung__... *is building a $2B drug plant*. The massive Korean conglomerate, most famous for Galaxy phones, also has a massive drug-manufacturing arm. Because if you don’t have a drug-related division during a pandemic, *what are you even doing*? 

- __Samsung entered the pharma game late,__ but has aggressively expanded as corona drug manufacturing needs heat up. Now it's working on potential COVID treatments.
- __Samsung Biologics' manufacturing orders nearly 3X'd__ to $1.5B last quarter. *“Covid-19 is giving us more opportunity than crisis”* — empathetic leader of Samsung Biologics.
- __"Super Plant":__ Not a plant-based burger company. Samsung is building a $2B drug manufacturing plant that'll be the *largest in the world* when completed in 2022. 

__Getting AP Bio flashbacks...__ The award for most complex corporate structure goes to Samsung.  Its Biologics biotech division  makes meds for some of the world's largest pharma companies — yet it's just *one of many* stars in Samsung's corporate galaxy.

- __Samsung consists of ~80 companies__ with different stocks traded on the South Korean stock market.
- __Samsung covers over a dozen industries__ including: life insurance, ship building, resorts, fashion, and asset management. Even Bezos can't keep up. 


Build

__Samsung does *a lot*...__ But in the US, Samsung's largely overshadowed by __[Apple](https://robinhood.com/stocks/AAPL)__. Apple [lets](https://snacks.robinhood.com/newsletters/2iRXx4Lo0sb4Xj39ZUGriE/articles/45yG4eIyAVpA5q3uf5jddO/) you get rid of Safari as a default browser on iPhone and the crowd goes wild. Samsung [releases](https://www.cnn.com/2020/09/01/tech/samsung-galaxy-z-fold-2-price/index.html) a foldable glass phone and the hype is... *not really hype*. But Samsung sells more smartphones [globally](https://www.idc.com/promo/smartphone-market-share/vendor) than any other company. It *also* runs some of the world's largest biotech and building companies — and it makes up 11% of South Korea's economy. 


Samsung is building Earth's largest drug manufacturing plant (Samsung does a lot)

Dow Jones

S&P 500

Nasdaq

Bitcoin

10-Yr US Treasury

🍜 Campbell's Millennial soup moment

__*Your move, girl*...__  __Bumble__, the dating app where women have to make the first move, is open to pursuing a public relationship with investors (opposite of going "exclusive"). The beehive-themed dating & networking company is [reportedly](https://www.forbes.com/sites/sergeiklebnikov/2020/09/02/yet-another-ipo-bumble-eyes-going-public-in-2021-with-a-valuation-of-more-than-6-billion/#3534c716d087) planning to IPO at a $6B-$8B valuation in early 2021. Dating is hard — it's even harder during a world-shattering pandemic: 

- __No more Friday dinner night out:__ Instead, you're eating TJ’s pad thai in bed while aggressively swiping. That drives engagement for Bumble and Tinder/Hinge-owner __[Match](https://robinhood.com/stocks/MTCH)__.
- __No more eye contact across the dance floor:__ Global online dating was up [82%](https://www.cnbc.com/2020/05/25/why-the-coronavirus-might-change-dating-forever.html?utm_source=morning_brew) in March, as you made eye contact with 837 Tinder profile pics instead. 
- __No more physical connection:__ All you need is a strong WiFi connection. Bumble video chat usage soared 93% after a national emergency was declared.

__It's a great time to DTR...__ with investors. While in-person meetups are dead, the need for *looove* isn't. So dating apps are thriving. Both Bumble and its publicly-traded rival Match make most of their $$$ from paid subscriptions (Bumble Boost, Tinder Plus) – these have grown during the pandemic.

- __Match stock has soared almost 700%__ since its 2015 IPO, and 40% since January alone.  
- __Bumble now has over 100M users worldwide__ — it's hoping public investors will want to match with it, too.


"_I just didn't feel a strong WiFi connection with him_"

Swipe

__Online Dating’s stigma is gone, thanks to COVID...__ We've gone from "we met at a bar" lies to Bumble-themed weddings where you swipe to RSVP (#loveatfirstswipe). There's now more stigma around going to a bar than video chatting with a stranger on Tinder. [~40%](https://qz.com/1546677/around-40-of-us-couples-now-first-meet-online/) of all relationships in the US start online. Since the chances of meeting someone in person are slimmer than ever, that number will likely jump faster. Bumble could find long-term love on the public market.


Bumble is reportedly planning to IPO — let's talk dating in corona-times

__They never have free samples *anyway*...__ Just one day after __[Walmart](https://robinhood.com/stocks/WMT)__ [unveiled](https://snacks.robinhood.com/newsletters/0zpHLW1IB8pix8YUTXac2/articles/NZ5JbEKhA5LoLo0zMmYw6) its Amazon Prime competitor Walmart+, __[Amazon](https://robinhood.com/stocks/AMZN)__ is one-upping its grocery rival (claaaassic Bezos). On Tuesday, the Zon will [open](https://www.cnbc.com/2020/09/01/amazon-to-open-first-online-only-whole-foods-store-in-brooklyn.html) its 1st online-only Whole Foods store in Brooklyn. It's basically a Whole Foods that you're not allowed in (no Nuts & Seeds section "browsing"). It'll only be used by Amazon employees to fulfill e-grocery orders in the area. 

- __Amazon operates over 500 Whole Foods__, offering online grocery delivery from its stores.
-  __Amazon's online grocery sales tripled__ last quarter, because, quarantine. 

__Getting some bang for its billions...__ Amazon acquired Whole Foods in 2017 for nearly $14B to sow its grocery oats. That acquisition has lettuce down. Amazon hasn't done much with it besides giving Prime members free grocery delivery and 10% off sale items. But this "Ghost Grocery" warehouse concept could speed up deliveries *and* ensure that the maple almond butter you want is in stock — instead of asking if you want PB, instead.


Order

__This could be Amazon’s big grocery advantage...__ over Instacart, Walmart, and DoorDash. E-grocery shoppers have to go *into* stores just like you and us to pick out your goodies before delivering them — that's not very efficient. 

- __Speed:__ All that pushing between shopping carts, little kids, and cheese-gawkers slows the process down. That doesn't happen in a Ghost Grocery.
- __Reliability:__ In regular stores, there's a decent likelihood that the pesto you ordered is gone. In Ghost Groceries, supplies are closely monitored (and no one storms the pasta aisle).
- __Price:__ This more efficient fulfillment method could allow Amazon to lower prices *or* rake in more profit.

Amazon opens its 1st online-only Whole Foods: Ghost Grocery is coming

🐝 Bumble swipes right on IPO

__Corporate Happy Hour has never been happier...__ __[Zoom](https://robinhood.com/stocks/ZM)__ absolutely smashed earnings last quarter (for a reason that requires no explanation). In just 3 months, the videoconferencing service made double the amount of money that it did during its entire 2019 fiscal year:

- __+355%:__ Zoom's quarterly sales more than *quadrupled* compared to the same quarter last year, clocking in at $663M. Sales for its *entire* 2019 fiscal year were [$331M](https://www.forbes.com/sites/petercohan/2019/04/11/zoom-has-mastered-the-art-of-profitable-growth/#634f43b31bd0). Womp.
- __+3,300%:__ Zoom's quarterly profit was almost *33X* bigger, coming in at $186M compared to $5.5M last year. Double womp.

__Zoom, zoom, zoom...__ Investors brought Zoom to their room on Tuesday, sending the stock soaring 40%. Zoom's [market cap](https://learn.robinhood.com/articles/GByCbiOluG2kcWs1AF6m5/what-is-market-capitalization/) is now $129B, up from $25B a year ago. It's worth more than __[IBM](https://robinhood.com/stocks/IBM)__ and __[Lyft](https://robinhood.com/stocks/LYFT)__ *combined*, or as much as four Twitters. Why the wild stock surge?

- __Wild growth:__ Sure, other corona-conomy winners like __[Netflix](https://robinhood.com/stocks/NFLX)__ and __[Clorox](https://robinhood.com/stocks/CLX)__ did *well*. Compared to Zoom, their  growth was as yawn-worthy as a beachside virtual background.
- __Wild forecast:__ Zoom significantly upped its full-year growth forecast. Corona winners like Netflix and Home Depot didn't, suggesting they may have passed peak pandemic surge. 
- __Wild situation:__ Zoom investors believe you'll be Zooming into the future, whether you stay remote or return to the office.


_Corporate happy hour intensifies_

Soar

__This is abnormally fast growth...__ for a publicly-traded, relatively mature company. For reference, let's look at some best quarters from the past: __[Apple](https://robinhood.com/stocks/AAPL)__ killed it in 2008 with iPhone 3 and 90% sales growth. __[Facebook](https://robinhood.com/stocks/FB)__ liked itself in 2014 with 72% growth. Netflix won an Oscar in 2011 with 50% growth. Zoom *slayed* in 2020 with 355% growth. Zoom is growing abnormally fast because its product was/is positioned to thrive during these abnormal times.

Zoom's quarterly profit soars 3,330% as abnormal becomes its normal

__We promise this isn't about Amazon...__ *Suuureee.*  __[Walmart](https://robinhood.com/stocks/WMT)__ unveiled the [deets](https://corporate.walmart.com/newsroom/2020/09/01/walmart-introduces-walmart) of its Amazon Prime subscription rival, Walmart+ (creative). The service launches on September 15th and costs $98/year, less than Prime's $119 price tag (*take that*, Bezos). Here's what's in the cart: 

1. __Unlimited free delivery:__ Free delivery from Walmart stores for over 160K items, from groceries to tech (with a $35 minimum order). Walmart's driving it up "as fast as same-day." 
2. __Scan & Go:__ Scan bananas and t-shirts using the Walmart app in stores, then pay in-app for a cashierless-experience (can see this one going wrong — #fakescan).
3. __Fuel discounts:__ Save up to 5 cents a gallon (*wow*) at 2K gas stations.

__*But does it come with TikTok?*...__ Walmart wants to [acquire](https://snacks.robinhood.com/newsletters/1sZSwbS9b5DXGz9TyTXaej/articles/50EAPzOLrKesfwEo52Wnx9) TikTok to leverage its massive ecommerce reach (wait for it — *to crush Amazon*). Walmart+  is yet another play to compete with the 'Zon. Prime is the secret sauce of Amazonian success, because perk-filled subscriptions are loyalty builders. 


Subscribe

__This isn’t a Prime-killer, but it might stop the bleeding...__ Let's be honest: these perks probably won't win Walmart new customers. But they might keep *existing* customers from ordering more on Prime — *especially when it comes to grocery delivery*: 

- __Walmart makes over half its sales from groceries__ and is the US grocery leader. Its online grocery biz has been growing dramatically. Buuut...
- __[Over half](https://snacks.robinhood.com/newsletters/7npBg6WCh7X1ssgq9cuRtt/articles/5KSLxwetQ3mOFHvXF6Jnl9) of Walmart’s top-spending families have Prime memberships__ — since they're paying $119/year, they might as well use Amazon's free grocery delivery instead. Walmart's hoping Walmart+ will keep them loyal.

Walmart reveals what's included in its $98/year Amazon Prime rival: Walmart+

 💻  Zoom's happiest hour 

__Free Netflix...__ Not the kind where you mooch off your parents. __[Netflix](https://robinhood.com/stocks/NFLX)__ launched a new global [website](https://www.netflix.com/watch-free) offering popular movies and  shows for free, no subscription required. It's the same idea as Costco free samples, if Costco gave away a full Prime Rib instead of one edamame. Bingeable titles include: *Stranger Things*, *Bird Box*, and *Love is Blind*. Before you break a finger rushing to cancel your subscription:

- __The catch:__ There are only 10 movies/shows available, though Netflix says it might shake it up.
- __The other catch:__ You can only watch the 1st episode of a show. Movies are available in full (because *Boss Baby* is important viewing).
- __BTW:__ Netflix still hates ads (except its own). This isn't your Spotify-style "freemium" model — the only ads you'll see are Netflix's attempts to get you subbed.

__Forgot *Tiger King* existed...__ It's a smart, low-cost marketing play on Netflix's part. It allows the Flix to unlock a new segment of price-sensitive users. It's less intense than the existing free trial — you don't have to drop your credit card number or put an iCal reminder to "cancel subscription" in a month.

- __The *other* other catch:__ The content is only available on computer browsers and Android phones. Netflix isn't targeting the well-worn US market, which is saturated with iPhones (compared to the rest of the world, which is mostly Android).


_When you finally get off the parents' Netflix_

Stream

__Netflix is looking for its next 100M subscribers...__ It has 193M  subscribers and added a huge 10M last quarter. But it's [expecting ](https://www.cnbc.com/2020/07/16/netflix-nflx-q2-2020-earnings.html#:~:text=Netflix%20provided%20third%2Dquarter%20revenue,above%20analyst%20estimates%20of%20%242.01.) growth to dramatically slow to 2.5M new subs *this* quarter. The lockdown streaming surge may have passed its peak, and streaming wars have heated up with newbies like Disney+. Netflix is looking to emerging markets like India and Brazil for its next 100M. It's hoping the cliffhanger at the end of *Stranger Things* S1E1 gets people subbing.



Netflix launches a free streaming site to reach its next 100M subscribers

__Pandemics, fires, and hurricanes...__ The chances of you having to change your flight in 2020 are... *high*. In August, TSA checkpoint passenger [volumes](https://www.tsa.gov/coronavirus/passenger-throughput) hit their highest levels since March. But even at these highs, travel is still down ~60% from last year. Now airlines are turning to revolutionary (for them) ways to attract passengers:

- __On Sunday,__ __[United](https://robinhood.com/stocks/UAL)__ said it'll permanently [scrap](https://www.cnbc.com/2020/08/30/united-airlines-scraps-ticket-change-fees-for-domestic-flights.html) its $200 change fee for domestic flights.
- __[Delta](https://robinhood.com/stocks/DAL)__ and __[American](https://robinhood.com/stocks/AAL)__ predictably followed suit yesterday and dropped change fees. 
- __[Southwest](https://robinhood.com/stocks/LUV)__ would've done it too, except it *already* doesn't charge them.


__Why kill a profit puppy?...__ For decades, airlines have raked in big bucks from profitable add-ons like luggage fees. Add-on fees have 5X'd over the past decade and made up 15% of US airlines' sales last year.

- __Sounds counter-intuitive:__ You'd think that  airlines would ramp up fees during a downturn. But in a pandemic, those change fees are sales-killers.
- __Airlines are *desperate*__ to get customers back, especially since their $25B government bailout expires on October 1st. Massive layoffs are on the horizon — American already warned it's [cutting](https://www.forbes.com/sites/jackkelly/2020/08/26/two-major-airlines-have-announced-massive-layoffs/#63f35f32235f) 19K jobs.



__Oligopoly players move together...__ In a monopoly, 1 company controls a sector/service. In an oligopoly, a few dominate. In the US, 4 airlines control 80% of the flight market (#oligopular). Once United dropped its change fee, __[Delta](https://robinhood.com/stocks/DAL)__ and __[American](https://robinhood.com/stocks/AAL)__ followed ASAP. Oligopoly players can't afford to have 1 rival snag an advantage with customers. But they also maintain *leverage* over customers by acting together (if *everyone* charges fees, you have no choice). This time it worked in customers' favor. 

United drops its $200 flight change fee, then Delta and American (had to) follow

🍿 Netflix launches free streaming

__*Don't panic*...__ At first glance, it might seem like your __[Apple](https://robinhood.com/stocks/AAPL)__ holding just lost 75% of its value. Not the kind of thing we like to wake up to on a Monday. Rub the sleep out of your eyes, chug a Nespresso, and perk up: you still hold the same amount of Fruit — it just got chopped into tinier slices (so did your Tesla Model 3).

- __Apple did a 4-for-1 [stock split](https://learn.robinhood.com/articles/5Bc1M9bKsFQeJ317f9AqYO/what-is-a-stock-split/#:~:text=A%20stock%20split%20cuts%20the,reducing%20the%20number%20of%20shares) today.__ If you own 1 Apple share trading at $500, you'll suddenly find yourself with 4 $125 shares. *Same value, more shares*.
- __[Tesla](https://robinhood.com/stocks/TSLA) did a 5-for-1 stock split today.__ If you own 1 Tesla share trading at $2.2K, you'll get 5 $440 shares. The value of your ownership in Elon's electric baby doesn't change.

__What's wrong with a fat pizza slice?...__ Apple and Tesla think it's too caloric for investors to swallow. Companies with soaring stocks sometimes slice them into smaller pieces to make shares cheaper for retail investors (like us) to buy. Apple's stock price would be waaayy higher today if it hadn't done *five* stock splits since 1987 — Apple splits so hard, it's more like Banana.

- __Apple stock has more than 5X'd__ since its last split in 2014, from $90 in June 2014 to $300 in January 2020 to ~$500 today.  
- __Tesla stock has soared nearly 900%__ in just a year, from $225 on August 30th, 2019 to $2.2K on August 30th, 2020. Today's split is Tesla's 1st ever.
- __TLDR:__ In July, Apple became the most valuable company on Earth while Tesla became the [most valuable](https://snacks.robinhood.com/newsletters/2KOlpmKhVqnpgwoduuQNat/articles/1IQSve65H8R44mOabeqoFy/) carmaker, all thanks to their soaring stocks.


_Prep the chopping board — it's Slice Day_

Split

__Stock splits aren't that impactful anymore...__ now that [fractional shares](https://learn.robinhood.com/articles/4EFqqbIXVM4mHEXqqlQAJe/what-is-a-fractional-share/) are becoming widely available at brokerages. Fractional shares take affordability much further than splits. If a stock costs $1K, you can buy 1/2, 1/10th, or even 1/300th of it — you choose the dollar amount or share amount. But splits aren't entirely useless: they suggest that a company is confident about its stock's continued growth. In July, Tesla [posted](https://snacks.robinhood.com/newsletters/6511HaDUMXpAxjp2bEBL6w/articles/30QY0VGpvgwP9J9BKSTkLB) its 1st full-year of profit and Apple had its [strongest](https://snacks.robinhood.com/newsletters/vPYyhZjwPeLib6Fug0rQx/articles/1ZCH362yffyTmdyQ6sXP1y/) 2nd quarter ever.






The Great Slicing: Tesla and Apple split their stocks into smaller slices today

__Don't try to validate it...__ Pedialyte-maker __[Abbott Labs](https://robinhood.com/stocks/ABT)__ got FDA emergency use authorization for its 15-minute $5 COVID test (that [looks](https://www.theverge.com/2020/8/26/21403432/fda-authorizes-binaxnow-covid-19-test-abbott-cheap-fast) like a parking ticket). Shortly after, the Trump admin [awarded](https://www.hhs.gov/about/news/2020/08/27/trump-administration-will-deploy-150-million-rapid-tests-in-2020.html) Abbott $760M to deliver 150M tests in 2020 — Abbot stock soared on the double-whammy. Doctors and school nurses can use the test to quickly deliver results via nasal swab. Abbot's also launching an app that gives COVID-free people a “digital health pass.” This quick, low-cost testing method could be key in slowing the spread.



__Time to choose a ship name...__ Walsoft or Micromart? __[Walmart](https://robinhood.com/stocks/WMT)__ unexpectedly [teamed up](https://snacks.robinhood.com/newsletters/1sZSwbS9b5DXGz9TyTXaej/articles/50EAPzOLrKesfwEo52Wnx9) with __[Microsoft](https://robinhood.com/stocks/MSFT)__ in the race to buy __TikTok__'s US operations. The Chinese-owned video app will be banned in the US on September 15 unless an American company strikes a deal to acquire it. Walmart and Microsoft shares jumped — investors think the Walsoft tag-team gives them a better shot against TikTok's *other* biggest suitor, __[Oracle](https://robinhood.com/stocks/ORCL)__. But now TikTok's parent __Bytedance__ [might](https://www.bloomberg.com/news/articles/2020-08-30/china-curbs-exports-of-some-artificial-intelligence-technologies) need the Chinese government's approval to sell, complicating the deal.

Highs

Who's up...

__Game off...__ __[DraftKings](https://robinhood.com/stocks/DKNG)__ stock plunged 7% after it got [downgraded](https://www.marketwatch.com/articles/draftkings-gets-downgrade-on-increased-competition-and-risk-to-nfl-season-51598620906?mod=mw_latestnews) by a Morgan Stanley analyst on Thursday. Last month, the sport betting company's stock [plunged](https://snacks.robinhood.com/newsletters/51C2IxaBoJAbYAIqnBPO3T/articles/yDZThSeBMTkoNdGxftTO4) on COVID-related MLB game cancellations. That made investors realize how fragile the live events situation is. Now there's concern that the upcoming NFL season could be canceled if players test COVID-positive. Since DraftKings' main biz revolves around live sports betting, it's in a rough spot.

__All I need in this life of sin...__ *is me and my sweatpants*. __[Nordstrom](https://robinhood.com/stocks/JWN)__’s sales plunged 53% last quarter since you weren't going wedding and Bar Mitzvah shopping. Stores were shut for half the quarter, and Nordie posted a $255M loss (compared to a $141M *profit* last year). Nordstrom was forced to heavily discount unsold racks of clothes to make them more sellable. But the stock popped on upbeat [statements](https://www.cnbc.com/2020/08/25/nordstrom-jwn-reports-q2-2020-results.html) from execs going into the holiday season. 


Lows

...and who's down

✂️ Apple and Tesla stock split day 

__So many TikTok headlines...__ So little time. __Bytedance__-owned TikTok could [choose](https://www.cnbc.com/2020/08/27/walmart-wanted-majority-tiktok-stake-teamed-with-alphabet-softbank.html) its new American parent in less than 48 hours. ICYMI: earlier this month, President Trump said he would [ban](https://snacks.robinhood.com/newsletters/2F3iI1nbMHbv4bvDR5gfaw/articles/2LMjKgW7k96k59D0CrdD35) TikTok in the US on national security concerns due to its ownership by China's Bytedance. Then __[Microsoft](https://robinhood.com/stocks/MSFT)__ revealed it was trying to buy TikTok's US operations, and Trump agreed such a deal would avert the ban. He gave Microsoft until September 15 to strike a deal. But wait, *there's more*:

- __Last week,__  Corporate software giant __[Oracle](https://robinhood.com/stocks/ORCL)__ revealed it was *also* in advanced talks to buy TikTok's US operations.
- __On Wednesday,__ TikTok's new CEO Kevin Mayer [quit](https://www.cnbc.com/2020/08/27/tiktok-ceo-kevin-mayer-to-leave-the-company.html). LinkedIn update: 23 years at __[Disney](https://robinhood.com/stocks/DIS)__...3 months at TikTok. Womp.
- __Yesterday,__ __[Walmart](https://robinhood.com/stocks/WMT)__ came out of left field, saying it's [teaming up](https://www.cnbc.com/2020/08/27/walmart-is-teaming-up-with-microsoft-on-tiktok-bid.html) with Microsoft to make a joint bid for TikTok.

__Make (or break) Your Day...__ It's a high-stakes, $30B race against time to become TikTok's American parents. TikTok has been downloaded over [2B](https://www.wsj.com/articles/walmart-joins-microsofts-pursuit-of-tiktok-11598544354) times and 100M Americans used it in the past month. This deal would also include ownership of TikTok's Canadian, Australian, and New Zealand-ian(?) operations. Together, Walmart/Microsoft could monetize TikTok's massive userbase to rival __[Facebook](https://robinhood.com/stocks/FB)__'s ad biz. But more importantly...

_Everyone wants to be TikTok's daddy_

Acquire

__*This is really about Amazon*...__ __[Amazon](https://robinhood.com/stocks/AMZN)__ is Walmart's biggest competitor in retail and ecommerce. It's also Microsoft's sworn enemy in the cloud computing race. Walmart uses Microsoft's cloud service to avoid giving Amazon's AWS any more dominance. It's also [launching](https://snacks.robinhood.com/newsletters/7npBg6WCh7X1ssgq9cuRtt/articles/5KSLxwetQ3mOFHvXF6Jnl9) Walmart+, a $98/year membership to rival Amazon Prime. Walmart could leverage TikTok's massive ecommerce and advertising reach to sell ads to its suppliers *and* sell its own products.









Walmart & Microsoft team up in the race to become TikTok's American parents

__*Squinting to see if it's an E*...__ Eff, it's a Series F. __Warby Parker__ raised [$245M](https://techcrunch.com/2020/08/27/warby-parker-valued-at-3-billion-raises-245-million-in-funding/) from two Series of funding rounds. The direct-to-consumer glasses pioneer is now reportedly valued at $3B (#tricorn). 10 years ago, Warby revolutionized the glasses game by selling affordable prescription glasses online. 

- __Profit-in-focus:__ For decades, designer glasses have had ridiculously high profit margins. Say a frame costs $20 to make — eyewear giant __Luxottica__ might sell it for $250. Oh and BTW - there's an *extra* $200 for certain prescription lenses (total = $450). 
- __Consumer-in-focus:__ Warby ditched the price-inflating middleman. It cut costs by going D2C (fewer middlemen take profits) and designing glasses in-house (don't have to pay Armani). It passed savings to consumers, offering frames *and* lenses for a combined price of $95.

__I can see clearly now...__ Besides affordability, Warby's success comes from 3 factors:

- __D2C customer service:__ Free home try-on of 5 pairs, virtual AR try-ons, 30-day free returns, and online visits with specialists to extend prescriptions.
- __Experiential retail:__ Warby's 125 sleek stores look like the retail versions of a Wes Anderson movie. Barista-like employees approach to say that “Valencia tortoiseshell frames your face *perfectly*.” 
- __Millennial-friendliness:__ Warby's cutely-packaged glasses have vaguely endearing names like “Percey,” “Watts,” and “Wilkie." It's also a socially-conscious brand, with charitable initiatives like “Buy A Pair, Give a Pair.”

__Warby's biz model could thrive in any economic climate...__ It sells products that are consistently in demand (eyeglasses, sunglasses, and contacts). In a recession, Warby can win with its affordable offering for a necessity: *Helping you see*. In a pandemic/lockdown, Warby can thrive with its strong online model. In normal times, Warby's physical retail experiences attract people who prefer in-store shopping.

*__FYI:__ On today's Snacks Daily podcast, we chat about __[why we think Apple should buy Warby Parker](https://itunes.apple.com/us/podcast/marketsnacks-daily/id1386234384?mt=2)__.*





D2C glasses pioneer Warby Parker is worth $3B after a fresh funding round

🍼 Walmart + Microsoft = TikTok co-parents?  

__The Urban Anthropologie of Free People...__ That's a mouthful, but apparently a profitable one. __[Urban Outfitters](https://robinhood.com/stocks/URBN)__ is the boho-chic retailer that supplies the distressed denim jacket of your high-school dreams. Urban also owns __Free People__, where a floral tank costs $60, and __Anthropologie__, where a candle costs more than your car insurance. 

- __Urban lost $138M__ during the January-April quarter. Sales [plunged](https://wwd.com/business-news/financial/urban-outfitters-earnings-loss-138-million-1203637418/) across all three of its major brands as Urban stores closed for lockdowns. Analysts were expecting *another* loss during May-July. 
- __Surprise! Urban turned a [$34M](https://wwd.com/business-news/financial/urban-outfitters-q2-earnings-2020-1203705601/) profit__. All its brands were profitable and new digital customers jumped [70%](https://wwd.com/business-news/financial/urban-outfitters-q2-earnings-2020-1203705601/). Urban stock popped 21% on the earnings shocker.

__Slim fit inventory...__ Urban's sales were *down* 17%, but it snagged a profit by keeping its inventory lean. It didn't overspend on clothes/candles/etc, so it didn't *lose* money when the demand wasn't there. By carefully guarding against overstocking, Urban avoided the discounting death spiral: Once you go 70% off to clear out unsold stuff, you never go back (customers never forget).


_Just spent $200 on a scented candle_

Wear

__Urban is a fashion smoothie with a scoop of techy innovation...__ Its business is diverse, like a chocolate-banana-kale concoction. In addition to its core clothing biz, Urban sells home decor, food, and skincare products. It also has a clothing rental subscription service  called __Nuuly__. This techy scoop of almond butter makes up just ~1% of Urban's sales — But Nuuly's sales have doubled since last year. It's the kind of innovation you don't see with OG clothing retailers.



Urban Outfitters surges on a surprise profit (it's a techy fashion smoothie)

__*Always be closing*...__ The company that powers sales teams around the world just notched killer quarterly sales itself (#meta). Enterprise cloud software-maker __[Salesforce](https://robinhood.com/stocks/CRM)__ had a great week. On Monday, we found out Salesforce is joining the Dow (and oily __[Exxon](https://robinhood.com/stocks/XOM)__ got booted). The elite-ish index tracks the stocks of 30 of America's largest companies. 

- __Salesforce stock ticked up__, since fund managers who track the Dow will have to buy Salesforce shares to match the index. *Then*, on Wednesday...
- __Salesforce stock *soared* 26%__ on word that quarterly sales jumped 29% to over $5B for the 1st time. Salesforce added over $60B to its [market value](https://learn.robinhood.com/articles/GByCbiOluG2kcWs1AF6m5/what-is-market-capitalization/) in just one day. 

__WTF is "CRM"...__ It's Salesforce's stock ticker, and also its bread-and-butter: *Customer Relationship Management*. CRM apps help salespeople track their interactions with leads and prospects. That way, Tony won't forget to follow up on the Knicks tickets he sent to his hot lead. Cindy can show her manager that she called/emailed/Linkedin'd FP&A Bob 135 times. Reps who take over an account or join a deal cycle can see all the info from past interactions.






_The sales force is strong_

Sell

__It's all about the Total Addressable Market...__ That's Salesforce's total sales opportunity. If a company a) *sells things* and/or b) *has customers to support*, they’re part of Salesforce’s TAM (if they can afford it). Since 2006, Salesforce has acquired dozens of companies to expand its biz and TAM. That broad mix of cloud-based business applications is thriving in the WFH economy.

Salesforce surges 26% on a record quarter — meet the new member of Club Dow

🧥 Urban Outfitters' surprise profit smoothie

__The Return of the Geek Squad...__ While __[Amazon](https://robinhood.com/stocks/AMZN)__ (the Regina George of Retail) was thriving, __[Best Buy](https://robinhood.com/stocks/BBY)__ (Cady Heron) was struggling when virus lockdowns hit. Best Buy's sales plunged 30% from March 21-April 15, after it was forced to close its ~1K stores and go curbside-only. It furloughed 51K of its 125K workers and cut pay for top execs. But Cady got her glow-up in the end...

- __+242%:__ Best Buy's online sales more than [3X'd](https://www.cnbc.com/2020/08/25/best-buy-bby-q2-2021.html) compared to the same quarter last year, its biggest digital growth ever. 
- __$432M:__ Best Buy's profit nearly doubled to $432M and sales jumped 6%. But the stock sank after the news because its CEO said growth is unlikely to continue at the same pace.

__Best Buy wasn't expecting this...__ It brought back 60% of its furloughed employees to deal with the WFH/school-from-home demand rush. Its supply chain is currently running at "holiday level" — [good luck](https://www.wsj.com/articles/best-buy-online-gains-offset-lost-store-sales-11598358371?mod=business_lead_pos3) getting a Chromebook or freezer on its website. But Best Buy *was* prepared on the most important front: *digital*. 

- __As the threat from Amazon (aka Regina)__ intensified over the years, old-school retailers like __[Target](https://robinhood.com/stocks/TGT)__ and __[Walmart](https://robinhood.com/stocks/WMT)__ spent heavily to build online clout. Think: ecommerce apps, delivery, and warehouses. 
- __Before the pandemic,__ Best Buy had already invested in curbside and delivery to compete with Amazon. That paid off big when the pandemic hit. 






_Best Buy, the Cady Heron of retail_

Geek

__Small-box losses = big box wins...__ Big retailers have digital strategies and cash stashes to survive/thrive mid-pandemic. Smaller businesses don't. Walmart, Amazon, Target, Home Depot, Lowe’s and Costco made up a whopping [29%](https://www.wsj.com/articles/big-box-stores-worried-about-amazon-were-ready-for-coronavirus-11598273456?mod=searchresults&page=1&pos=10) of all US retail sales in the 2nd quarter. Meanwhile, over [60K](https://www.chicagotribune.com/business/ct-biz-coronavirus-small-business-failure-20200812-6u5ju4hvcnhv3cbnvslesuvnvq-story.html) small business permanently shut from March 1-July 25, according to Yelp. [60%](http://links.info.fortune.com/e/evib?_t=5c2d888702774d17aa3d0350287b6d73&_m=de9ed7a751b7457aa5518bdca54ae269&_e=P3Ba4ITSIKQ9QdoNAEAU24WQTvaPZLQi07LIKQfAcU1CmAnq0CQqmEsYEZQZXpmn2kD2kI6EFPoua3m_a9k-E9ZwmX3WXnAPquaWmP32cfUu7dc2UUZu01eXLS8GceJw) of large company CEOs are “more confident” *now* in the growth of their companies than they were pre-COVID. Less sales for small retailers means more for big ones.







Best Buy's online sales more than triple in a surprise corona-comeback

__Aluminum is the new TP...__ Just don't try wiping with it. The latest corona-conomy shortage item is the aluminum can. You're not posting up at the bar with a freshly-poured pint of Heineken. Instead, you're posted on the couch with a six-pack of White Claws and premixed G&T cans. Instead of slurping up ramen from a glass bowl at your local spot, you're hoarding Campbell's Chicken Noodle Soup cans in the pantry. 

- __Sales of aluminum drink cans soared 24%__ in March at the height of lockdowns. They popped over [16%](https://www.wsj.com/articles/coronavirus-is-causing-a-can-shortage-11598356980?mod=hp_featst_pos4) in April, May, *and* June as demand can-tinued. 


__That sound when you pop the lid off...__ __[Ball Corp](https://robinhood.com/stocks/BLL)__ is feeling it. Ball is the world's largest aluminum drink can maker. Not so sexy usually, but baller during an aluminum can shortage. Ball makes cans for massive companies like __[Coca-Cola](https://robinhood.com/stocks/KO)__, and also confusingly has an [aerospace](https://www.ball.com/aerospace) biz that makes up 16% of its sales.


- __Ball is adding two new production lines__ in Texas and Georgia to keep up with demand. Both lines have the capacity to churn out over *a billion* cans a year. Even so, Ball will still have to import 2B cans from abroad to meet the "crazy" demand from the US.

__Perfect business opportunities *can* be missed...__ if you're not ready to seize them. __[Molson Coors](https://robinhood.com/stocks/TAP)__ left a bunch of Coors Light [unsold](https://www.cnn.com/2020/07/22/business/beer-shortage-aluminum-can/index.html) because it couldn't source enough 12-ounce cans. Coke had to suspend production of Minute Made zero sugar lemonade so it could use those precious cans for more popular drinks. Ball should be popping White Claws and celebrating the aluminum boom — but even the #1 can maker wasn't ready to meet the demand.


The aluminum can shortage is upon us — that's great news for Ball Corporation

💻 Best Buy's best e-quarter

__Incoming: triple cliché...__ Self-driving tech, a SPAC, and a Peter Thiel-backed startup — sounds like the perfect recipe for a summer 2020 IPO. __Luminar__ makes lidar tech that allows self-driving cars to "see" their surroundings. The lidar method involves shining lasers at objects to measure their distances. By measuring the time a laser takes to hit something, lidar sensors build out 3D maps of environments (like the 405 at rush hour). 

- __Luminar is going public via SPAC merger.__ A [SPAC](https://snacks.robinhood.com/newsletters/2IlouyJBkMnca9pyPTVgEl/) is essentially a company without a company. SPACs go public for the sole purpose of one day acquiring a real company (in this case, Luminar). 
- __Luminar will be worth $3.4B__ after it merges with __[Gores Metropoulos](https://robinhood.com/stocks/GMHI)__ (sounds like a Russian hotel, actually the SPAC). Gores stock jumped 8% on the surprise acquisition. 

__*Take me to your lidar*...__ Luminar is a 3-year-old company with a 25-year-old CEO. But it's trying to tackle a decades-old issue: how to bring autonomous vehicles to streets. Besides government regulation, there are 2 main obstacles preventing self-driving from going mainstream:

1. __Safety:__ Driverless vehicles are still sweat-inducing. Luminar is pitching advanced safety of its sensors, which identify objects from 250 meters away (even in the dark).
2. __Cost:__ Lidar sensors can cost carmakers tens of thousands of $$$ — Luminar hopes to [differentiate](https://www.bloomberg.com/news/articles/2020-08-24/thiel-backed-startup-luminar-to-go-public-in-3-4-billion-merger?sref=q3KSFp38) itself by bringing down the price of these autonomous eyes.




"_I am your lidar_"

Beam

__Luminar has a unique go-to-market strategy...__ Self-driving peers like __[Google](https://robinhood.com/stocks/GOOG)__'s Waymo focus on introducing *robotaxis* first — Luminar is focused on getting its sensors in regular cars first. While others see robotaxis as a gateway to autonomous domination, Luminar [sees](https://techcrunch.com/2020/08/24/lidar-startup-luminar-to-go-public-via-3-4-billion-spac-merger/) them as a longer-term play. __[Volvo](https://robinhood.com/stocks/VLVLY)__ will be using Luminar's sensors for hands-free highway driving in 2022 — it's also a Luminar investor. These high-profile partnerships could help Luminar's tech go mainstream.

Luminar is going public in a $3.4B merger to sell "eyes" for self-driving cars

__Paging Carrie Mathison...__ We're all "people familiar with the matter" (#PFWTM) now that __Palantir__'s IPO paperwork has been [leaked](https://techcrunch.com/2020/08/21/leaked-palantir-s-1-shows-company-has-125-customers-after-17-years/). That's slightly ironic, since Palantir is known for its super-secretive ways and its ties to intelligence agencies. 

- __At a high level,__ Palantir is a software company that collects and synthesizes data for big clients. That data could allow a bank to spot the movement of criminal money, or help a government agency thwart a terrorist attack. 
- __Palantir filed to go public back in July,__ *17 years* after its founding. It filed its IPO paperwork confidentially (of course), which means we didn't get to check out its financials. *Until now...*


__I spy a mole...__ Palantir's S-1 filing got [leaked](https://techcrunch.com/2020/08/21/leaked-palantir-s-1-shows-company-has-125-customers-after-17-years/) by a shareholder to TechCrunch. A few numbers stood out to us from the screenshotted-leakage:

- __$5.6M:__ Palantir's massive average revenue *per customer*. That's impressive, but a little less impressive when you consider...
- __125:__ Palantir's number of customers could barely fill the theater at a *Mission Impossible* screening.
- __$742M:__ Palantir's sales for 2019, anticlimactically less than the ~$1B that has been reported for years.




"_Who leaked the S-1?_"

__Palantir has big eggs in a small basket...__ Its growth is highly dependent on a few massive players, which is risky. Losing even a few clients could hurt big. Out of Palantir's 125 customers, the top 3 make up over 30% of its sales. Over 90% of its sales growth comes from *existing* customers, the majority of which are government clients. Palantir's good at crunching data — not so good at crunching profit. It reported a $580M net *loss* for 2019, which was almost the same as 2018's. 

Palantir's leaked IPO paperwork gives a look into its secretive business

🕵️‍♀️ Palantir's leaked IPO paperwork

__*Revenge is a dish best served cold*...__ So is delivery domination. __DoorDash__ is in the enviable pandemic position of being the #1 restaurant delivery platform in America. In the [mafia-style](https://snacks.robinhood.com/newsletters/5H4bzJb2lCpsjW7HA5Czc3/articles/APpX6NGeIEYFrIq5NYcoA/) food delivery wars, DoorDash has protected its leading market share against promo-slinging rivals __[Grubhub](https://robinhood.com/stocks/GRUB)__ and __[Uber Eats](https://robinhood.com/stocks/UBER)__. Now Don DoorDash is [coming](https://www.theverge.com/2020/8/20/21376552/doordash-grocery-delivery-amazon-instacart-compete-launch-california-midwest) for __Instacart__ and __[Amazon](https://robinhood.com/stocks/AMZN)__'s territory. 

- __DoorDash is launching *grocery* delivery__, starting with chains like Smart & Final in California. It's offering free delivery to DashPass subscribers.
- __Grocery, but make it takeout:__ DoorDash promises to deliver groceries in less than an hour. That gives it an edge over Instacart and Don Bezo's Amazon Fresh, which typically use scheduled delivery windows. 

__It's all about the backend, baby...__ Sometimes the things you *don't* see are the most powerful. __[Shopify](https://robinhood.com/stocks/SHOP)__'s platform powers the ecommerce of over 1M businesses, from Kylie Cosmetics to the local taco joint — but consumers don't *see* Shopify. DoorDash has a similar "hidden" platform:

- __DoorDash Drive:__ DoorDash [sells](https://www.doordash.com/drive/portal/discover) its backend delivery platform to grocery chains like __[Walmart](https://robinhood.com/stocks/WMT)__ and __Wegmans__, handling their last-mile delivery. 
- __Like the Shopify of e-grocery,__ DoorDash Drive powers chain stores' delivery services, letting them brand them as their own. Now, DoorDash is using the same platform to bring grocery delivery to its *own* app. 






"_Tell them we're coming for the eggs..."_

Deliver

__DoorDash wants to be an all-in-one delivery platform...__ It dominates restaurants, it's making big moves in grocery, and it [added](https://www.theverge.com/2020/8/5/21355625/doordash-dashmart-convenience-store-launch-snacks-groceries) convenience stores and pharmacies this year. In addition to selling direct-to-consumer, it's selling to *other* businesses with DoorDash Drive. This service could be a major growth driver as stores expand delivery in the corona-conomy. DoorDash's "delivery everything" play puts it in a strong position as it gears up to [go public](https://www.forbes.com/sites/kenrickcai/2020/06/18/doordash-raises-400-million-ahead-of-ipo/#4e13df8d6e7f) this winter — It [raised](https://www.cnbc.com/2020/06/19/doordash-scores-16-billion-valuation-now-top-of-food-delivery-chain.html#:~:text=A%20DoorDash%20Inc.&text=DoorDash%20on%20Thursday%20confirmed%20that,Durable%20Capital%20Partners%20and%20Fidelity.) $400M in June at a meaty $16B valuation.




DoorDash pushes to become a "delivery-everything" platform ahead of its IPO

__When the red Corolla rolls up before he asks for digits...__ *5 stars for timing*. __[Uber](https://robinhood.com/stocks/UBER)__ and __[Lyft](https://robinhood.com/stocks/LYFT)__ shares soared Thursday after the ride-hailers narrowly avoided a major shutdown. California's AB-5 law required them to reclassify gig drivers as employees by August 20th. Uber/Lyft said *nahhh* and threatened to suspend service in CA starting Thursday. Just hours before the expected shutdown, a court [granted](https://www.cnn.com/2020/08/20/tech/uber-lyft-california-shutdown/index.html) them a reprieve delaying the order. Now Uber/Lyft are urging riders to vote on Prop 22 in November to exclude ride-hailers and delivery apps from the law.

__Bagged a bullseye...__ __[Target](https://robinhood.com/stocks/TGT)__ stock hit an all-time high after the retail classic [posted](https://www.cnbc.com/2020/08/19/target-tgt-q2-2020-earnings.html) its strongest quarterly sales growth *ever*. Profits jumped a massive 80% after curbside pickup popped over 700%. Plus, online sales nearly 3X'd as Tarjay added a whopping [10M](https://corporate.target.com/article/2020/08/q2-2020-earnings?campaign_id=4&emc=edit_dk_20200819&instance_id=21410&nl=dealbook&regi_id=83712167&segment_id=36501&te=1&user_id=05114d149fce45660cf01aea64f5af7e) new digital customers in the 1st half of 2020. But its grocery biz is the real MVP — milk and hummus allowed it stay open during lockdowns.


__Finally fixed the toilet seat...__ __[Home Depot](https://robinhood.com/stocks/HD)__ had its [best](https://snacks.robinhood.com/newsletters/7MJGXTV2lqwkCcYoPsYqjJ/articles/2cQ8fFsL0GgNwOwWRIFmEA) quarter in 20 years thanks to lockdown DIY "House Hype." But the stock *fell*  because Home Depot's CEO didn't sound hyped about *this* quarter. Stimulus checks helped bankroll last quarter's splurges on Adirondack chairs — now checks have been spent and the $600/week extra unemployment benefit has expired. Investors are wondering whether the home spending boom has peaked.

__Same paper, less Nutella...__ You're shelling out more $$$ for the same jar of Italian decadence. The value of the US dollar [fell](https://www.reuters.com/article/uk-global-forex/dollar-hovers-near-two-year-low-as-traders-push-euro-longs-to-record-high-idUSKCN25E03G) to its lowest level in over two years, making it less valuable compared to currencies like the Euro. That's partly because the Fed has been blasting out fresh dollars to stimulate the economy. More dollars = less demand for dollars = *less valuable dollars*. Depreciation threatens the USD's "[Superman status](https://snacks.robinhood.com/newsletters/4ogc6lVdR6XOMD2eU3NQcI/articles/4tXfBbA0fHrtQFfTkjI5ht)" as a global reserve currency. Long-term, it could mean higher inflation (and really expensive Bordeaux).