__What a plant-based player...__ When it comes to alt-meat, __[Starbucks](https://robinhood.com/stocks/SBUX)__ is not monogamous. After linking up with __[Beyond Meat](https://robinhood.com/stocks/BYND)__ in Canada and China, Starbucks has moved on to __Impossible Foods__ sausage in the US. The Impossible Breakfast Sandwich will be available at 15K Starbucks stores - and it's all about the mass exposure:

- __Impossible's biggest partnership:__ By hooking up with Starbs, Impossible just 3X'd the number of eateries that carry its new breakfast sausage. 
- __Bigger than BK:__ Last week, __[Burger King](https://robinhood.com/stocks/QSR)__ rolled out the Impossible Croissan'wich at 7.5K US stores (BK also carries  Impossible Whopper). This Starbucks partnership is 2X bigger. 
- __But it's not exclusive:__ Starbucks sells rival Beyond's products in Canada and China. Beyond stock dipped on the Impossible two-timing yesterday. 

__Impossible wants to be "basic"...__ It doesn't want to be viewed as a niche alternative. But it's running into the (vegan) chicken and egg problem: to get more meat eaters, Impossible has to lower prices to compete with cheaper regular meat — but to lower prices, it needs a large mass of regular meat eaters. So big new partnerships are key. 

- __90%__ of Impossible buyers are traditional meat eaters who dabbled in alt meat for reasons like the pandemic meat shortage, [according](https://www.cnbc.com/2020/06/23/impossible-foods-business-booms-as-demand-for-plant-based-meat-grows.html) to Impossible's CFO. 
- “We don’t think of it as an alternative (meat) industry. We think we’re making better meat consumed by the meat eater." 
- __18X:__ How much Impossible grew its grocery presence since March. It also launched direct-to-consumer online sales.




_"I thought we had something special" - Beyond Meat to Starbucks Canada_

Order

__The road to mass appeal could be rocky...__ First, Impossible has a bigger rival: Beyond Meat has a publicly traded $9.4B [market value](https://learn.robinhood.com/articles/GByCbiOluG2kcWs1AF6m5/what-is-market-capitalization/), compared to Impossible's ~$2B private [valuation](https://www.cnbc.com/2020/06/16/impossible-foods-disruptor-50.html). Second, big consumer brands like __[Kellogg](https://robinhood.com/stocks/K)__, __[Kraft](https://robinhood.com/stocks/KHC)__, and __[Nestle](https://robinhood.com/stocks/NSRGY)__ have money to churn out cheaper alt-meat competitors (which they're already doing). Impossible thinks its quality is way better, but it needs growth ASAP to compete. It's already a viable acquisition target for these bigger brands, and may even be [open](https://www.cnbc.com/2020/06/23/impossible-foods-business-booms-as-demand-for-plant-based-meat-grows.html) to it. 

Impossible Foods wins Starbucks' US love as it chases mainstream goals

__COVID-19 data is the new econ data...__ In mid-March, markets plunged 30% on the alarming surge in coronavirus cases. Months of economic lockdown followed, and US COVID-19 cases slowed thanks to distancing measures. Investors took heart: markets swiftly rose in April and May, approaching record highs. This continued through June, as economies began to reopen. Yesterday, stocks took a health data plunge.

- __"Disturbing surge":__ What Dr. Anthony Fauci [said](https://www.cnbc.com/2020/06/23/fauci-says-parts-of-us-are-seeing-a-distrubing-surge-of-coronavirus.html) some parts of the US are seeing. Wednesday was the worst day for COVID infections yet, with over [38K new cases](https://www.theverge.com/2020/6/24/21302080/coronavirus-daily-record-cases-covid-19-us-arizona-texas-trump).
- __The hotspots:__ Florida confirmed a record 5.5K new cases on Tuesday, and California added a record 7K. Texas added over 5K, and Houston ICUs were at [97%](https://www.newsweek.com/houston-icus-90-percent-capacity-texas-coronavirus-cases-break-records-1513077) capacity on Wednesday.
- __The quarantines:__ New York, New Jersey, and Connecticut ordered visitors from 8 states including Florida, Texas, and North Carolina to self-quarantine for two weeks. 

__Not entirely surprising...__ It's not shocking that cases are rising as restaurants, bars, and gyms reopen across the US. However, cases in  European countries appear to have [fallen](https://www.ecdc.europa.eu/en/cases-2019-ncov-eueea) and are not surging again as countries reopen. "Public health guidance" in Europe can be perceived as "infringement of freedom" in America. Now the EU might even [block](https://www.npr.org/sections/coronavirus-live-updates/2020/06/24/882801218/eu-could-bar-u-s-travelers-due-to-ongoing-rise-in-covid-19-cases) US travelers from entering. 

Surge

__The longer the pandemic lasts, the longer tech stocks are likely to rally...__ The tech-heavy [Nasdaq](https://learn.robinhood.com/articles/1GXPrecRfkSNp0aBblBSsL/what-is-the-nasdaq/)’s gain over the other major indexes is the [biggest](https://www.wsj.com/articles/the-big-u-s-stock-indexes-are-telling-different-stories-11592904600) since 1983. This outperformance shows how fortunes have shifted dramatically in tech's favor during the corona-conomy. 

- __Even after yesterday's drop,__ the techy index is up 9% for the year. Meanwhile, the broader [S&P 500](https://learn.robinhood.com/articles/7kFFEUv46vmMCmMfLuNiRX/what-is-the-s-and-p-500/) is *down* over 6%, while [the Dow](https://learn.robinhood.com/articles/4hnTrXsi908wN9QcqXxbnG/what-is-the-dow-jones-industrial-average-djia/) is down 12%. 
- __Why?__ Big tech companies like __[Amazon](https://robinhood.com/stocks/AMZN)__, __[Facebook](https://robinhood.com/stocks/FB)__, and __[Alphabet](https://robinhood.com/stocks/GOOGL)__ account for 40% of the Nasdaq's value, compared to 20% of the S&P 500's (and even less of the Dow's). And tech is winning more business as you spend more time/money on computers/phones.

A "disturbing surge" in COVID-19 cases leads to worst market day since June 11th

Dow Jones

S&P 500

Nasdaq

Bitcoin

10-Yr US Treasury

🥐 Impossible's Starbucks play

__Biggest fashion rebel of 2020...__ TJ Maxx. Discount retail giant __[TJX](https://robinhood.com/stocks/TJX)__ is the company behind the "[affordable splurge](https://snacks.robinhood.com/newsletters/1FKKdbQjIpHVV86ywmUIjB/articles/6YscPrg1Mp9jGaNkCngApy)" trifecta:  TJ Maxx, Marshalls, and Homegoods. Now, it's also the unexpected rebel of the corona-conomy: 

- __"Nothing will change:"__ Not a phrase you hear in an economy-pummeling pandemic. TJX's CEO [said](https://www.wsj.com/articles/coronavirus-changed-everything-except-t-j-maxx-11592818200?mod=business_lead_pos3) it *won't* leverage ecommerce to boost sales. It'll continue to do absolutely nothing to ramp up its tiny online shopping operation that's currently only 2% of sales.  
- __But TJX takes it to another extreme:__ It fully *shut down* its websites during lockdowns, making online ordering impossible. Now it's actively limiting the items available on its site. 
- __TLDR:__ TJX laughs in the face of online shopping, and wipes ecommerce tears away with a $6 Free People shirt. 

__The magnetic pull of the "treasure hunt"...__ TJX is confident in the joy its customers derive from the "treasure hunting" experience. Finding a $27 Michael Kors bag under a shoe rack is not only fun, but also something to [brag](https://www.investors.com/research/ibd-stock-of-the-day/tjx-earnings-q4-2019-tjx-stock/) about. TJX knows this can only be achieved at its physical stores. 

- __TJX's only focus:__ Drawing shoppers back to its 4.5K brick-and-mortar stores. Since 98% of its sales are in-store (and those stores were closed), TJX took an $887M loss last quarter — But now a majority of its stores have reopened.   
- __*It's working*:__ Sales at reopened stores are actually *higher* than they were a year ago, as deal-starved shoppers flood back into TJX. [Call it](https://www.wsj.com/articles/coronavirus-changed-everything-except-t-j-maxx-11592818200?mod=business_lead_pos3) it "revenge spending" — when you've been cooped up so long that you need to make up for all the shopping you *didn't* do. 






"_Don't bother me while I'm Revenge Spending_"

Revenge

__Ecommerce isn't always the solution...__ Online shopping operations can be expensive to implement and maintain. Shipping and returns make it hard to turn a profit on heavily discounted goods. And brands like Ralph Lauren don't want you to see their items selling for $12 online. Plus, ecommerce reduces the number of shoppers at stores. Since TJX thrives on the in-person shopping experience, it's one of the rare companies that can sidestep ecommerce.

TJ Maxx is the unexpected rebel of the corona-conomy, laughing in the face of ecommerce

__Sounds like a pro wrestling match...__ WWDC 2020 is __[Apple](https://robinhood.com/stocks/AAPL)__'s annual developers conference, where it shows off its latest software goodies. App developers eagerly await the week in June, crossing out days on their iCals. Apple [says](https://www.cnn.com/videos/business/2020/06/22/apple-wwdc-2020-widgets-face-mask-memoji-car-keys-orig.cnn-business/video/playlists/top-news-videos/) there are now over 1 Trillion ways to customize your identity with Memoji. But there's only one way to hold a massive event during a pandemic: online. 

__iSpy some changes...__ Meet the new iPhone operating system: iOS 14. Some of our Snacks highlights:

- __Defaults:__ You can now set a default mail app (hello Gmail) and a default browser (goodbye Safari).
- __Home screen fun:__ The "App Library" automatically organizes apps into sensical folders. You can also drag big widgets (like a Weather page or Calendar day) and pin them on your screen for real-time updates. 
- __Picture-in-Picture:__ Keep watching Apple TV or Facetiming while scrolling — the video keeps playing in the corner of the screen while you multitask. Only works for Apple apps, for now (no Netflix/YouTube).
- __App Clips:__ Tiny apps that have specific functions, for when you need to do something like pay a bill or rent a scooter (but don't want to download the actual app). 
- __Slack’ified group messaging:__ You can now reply inline (in a thread) and mention people in group messages. Also, you can choose to only be notified when you're @'d.  
- __Digital car keys:__ Unlock and start your car via iPhone. You can also share keys with others through iMessage (and deactivate whenever). The 1st car to support this will be the 2021 BMW 5-series.


_Settling in for a week-long conference_

Unveil

__The "new new" hype is crucial...__ to Apple's sales growth. It obviously doesn’t want us holding onto our Macs for 5+ years. Apple had to pay a $500M fine over a lawsuit that [alleged](https://www.reuters.com/article/us-apple-iphones-settlement/apple-to-pay-up-to-500-million-to-settle-u-s-lawsuit-over-slow-iphones-idUSKBN20P2E7) it was purposely slowing down older iPhones to make you buy a new one. But these annual shows are a positive way for Apple to stoke enthusiasm over its latest products. The novelty factor is key. TBD if Apple can come up with cool new features indefinitely. 

Apple unveils its latest operating systems and features, including iPhone car keys 

__When the FIFA match goes better than expected...__ __[Electronic Arts](https://robinhood.com/stocks/EA)__ is the video game company behind *FIFA*, *Madden*, *NBA Live*, and 2000s legend *The Sims* (unforgettable). 

- __Back in May,__ EA said sales for its corona-conomy quarter (April-June) would only rise 1%. 
- __Yesterday,__ at a cozy "fireside chat for the investor community," EA revealed that it was way off. First quarter results are likely to be much better than expected.  

__The stock also rises...__ EA stock ticked [up](https://www.barrons.com/articles/ea-stock-is-rising-as-videogame-sales-boom-amid-the-coronavirus-pandemic-51592927728?mod=hp_minor_pos16) after it leveled up its forecast. Some game publishers were expecting 2020 to be a down year, since upcoming new gaming consoles haven't been released yet.  

- __Turns out,__ 2020 was a big one for video game creators. Gaming companies like EA, __[Activision Blizzard](https://robinhood.com/stocks/ATVI)__, and __[Nintendo](https://robinhood.com/stocks/NTDOY)__ have rallied to multiyear highs on lockdown boredom. With live sports canceled, you've turned to EA Sports' games for entertainment. 

Play

__Content is king...__ in media. That goes extra for video games right now. We've seen media snatch up content/IP:  __Netflix__ is on a media buying spree (including signing GoT's writers) and __Spotify__ [struck](https://snacks.robinhood.com/newsletters/5A4ZEajsQw0bmhsFuBK1AS/articles/69vDqt7GRc2nQ9TTXjmWSH/) deals with Joe Rogan, Kim Kardashian, and Batman. EA bought the rights to make games featuring major sports teams like the NFL, NHL, and  NBA. Its pipeline of new content for games will be key to continued growth.

Electronic Arts levels up its previously boring forecasts as game sales boom

🛍 TJ Maxx's "Revenge Spending"

__When the re-scheduled cruise gets canceled again...__ Better luck just leaving earth. __[Virgin Galactic](https://robinhood.com/stocks/SPCE)__ stock popped 16% on a fun [headline](https://www.theverge.com/2020/6/22/21298347/virgin-galactic-nasa-private-human-orbital-spaceflight-international-space-station): the Richard Branson-owned space tourism startup wants to hotel-ify the International Space Station (in partnership with NASA, of course). 


- __The Mission:__ NASA wants Virgin to coordinate private trips to the ISS. That includes building out an "orbital astronaut readiness program” for companies/orgs that want to send their people to space (for whatever reason). 
- __The Logistics:__ Virgin would basically act as a space travel agency, coordinating resources, logistics, and travel plans for customers.
- __The Hospitality:__ Virgin [wants](https://www.virgingalactic.com/articles/virgin-galactic-signs-space-act-agreement-with-nasa-for-private-orbital-spaceflight-to-the-international-space-station-iss/) to offer "a variety of personalized space experiences" for its clientele. Think: ISS restaurant bookings and day excursions like star-skiing (kidding, but almost).

__Expanding the galactic biz model...__ Virgin has historically been focused on *suborbital* spaceflight. It sells $250K tickets to send people to the edge of space (and back) on its spaceplane — but even *that* hasn't taken off commercially yet (only [5](https://www.theverge.com/2020/6/22/21298347/virgin-galactic-nasa-private-human-orbital-spaceflight-international-space-station) people have gone for test flights). NASA will review the plan Virgin puts together to see if it's solid, before going ahead with this new venture. 

_When the "space tourists" arrive wearing sun hats_

Launch

__NASA wants to commercialize space...__ and it needs private sector companies to do it. NASA's on a private hot streak: it recently [completed](https://snacks.robinhood.com/newsletters/4rNe8qoYgGWH3zr9vhM8LM/articles/4srz4ZoIYDbhUzLXlyokri) a big launch with __SpaceX__, successfully sending astronauts into orbit with a private spacecraft for the first time ever. Now it wants Virgin's help getting tourists to the ISS.

- __NASA's Goal:__ "Facilitate the commercialization of low-Earth orbit by US entities.” With NASA's support, companies like Virgin Galactic, SpaceX and even __[Boeing](https://robinhood.com/stocks/BA)__ can get a slice of the commercial space pie.
- __One day,__ space tourism could be a major market — and a major money maker for the companies that pioneered it.  

Virgin Galactic stock soars because it wants to vacation-ify space travel 

__Channeling Bob Ross vibes...__ Start with a blank __Canva__ for your DIY masterpiece. The Sydney-based startup wants to make graphic design accessible to all. Think: *aesthetically pleasing* flyers and social posts for non-design pros. That drag-and-drop attitude just helped Canva nearly [double](https://www.forbes.com/sites/alexkonrad/2020/06/22/canva-new-funding-6-billion-valuation/#33b210461c95) its valuation (it's still private, so we're [SUMO'ing](https://snacks.robinhood.com/newsletters/5wX2eXxCwVWUncZvgfu7NG/articles/32AcWKj6QyG28a5niTqy1E/)):

- __$6B:__ Canva's value after a $60M fundraise, up from $3.2B just nine months ago. Canva can now update its LinkedIn headline to: *Most valuable private tech company in Australia*. And it's profitable.
- __30M:__ Canva's monthly users. Instead of paying for pricey Adobe Creative Cloud subscriptions or trying to make a Word Doc look like a poster, millions turn to Canva's free templates. But it's not just college kids making flyers for random student org events...
- __1.5M:__ *Paid* users on Canva Pro. Canva also has paying enterprise customers like __Warner Music__ and __American Airlines__, and around 500K smaller orgs/businesses. That's the premium side of Canva's "freemium" biz model. *Lure them with the "free," monetize them with the "mium."*
- __BTW:__ Professionals-geared __[Adobe](https://robinhood.com/stocks/ADBE)__ just released a free photo editing app to attract the Instagram generation ("Reverse Freemium" move). 

__Collaboration is (extra) key...__ in the corona-conomy. In addition to doubling its monthly user base, Canva saw a 50% jump in *shared* designs over the year. The WFH life increased our reliance on real-time collaboration tools. Canva is planning on using its fresh $$$ to expand its design collab features (and lure in more money-making business accounts). 










 

Create

__Presentation is everything in the era of "tap-onomics"...__ We've gone from shopping in-store, to shopping on desktops, to shopping on Instagram. The number of "taps" your product/company gets is closely related to how nice a post looks. During the pandemic, small businesses have turned to social media to reach customers. Canva's promise to make professional-looking posts cheap and easy helped it notch its latest valuation.

Canva lands a $6B valuation to make everyone a design professional

🚀 Virgin Galactic's space travel agency

__Pour out the pints of London Pride...__ __[Amazon](https://robinhood.com/stocks/AMZN)__ is footing the pub tab, as long as you're guzzling London *Prime*. Amazon will air four Premier League soccer matches on Prime Video and Twitch for free in the UK (even for non-Prime members). It's Amazon's competition-crushing way of getting more of Europe on its platforms:

- __Last year,__ Amazon streamed Premier League matches for the first time. It [reportedly](https://www.cnbc.com/2020/06/18/amazon-premier-league.html) dropped $112M for the right to broadcast 60 matches over three years (pennies for the 'Zon). 
- __For the first time,__ Amazon is offering Premier League on Twitch, the live gaming streamer it bought in 2014 for almost $1B. The matches will be played in empty stadiums, so Amazon's adding optional synthetic cheering noises from EA Sports. And since it's Twitch, you can blast emojis through the match via live chat. 

__Encroaching on cable's sacred turf...__ Live sports are a big reason many still haven't cut the cable cord. Now, those soccer and football-driven cable bucks are being threatened by streamers. Particularly, big tech companies that also happen to have streaming (and billions lying around to spend on it): 

- __[Apple](https://robinhood.com/stocks/AAPL)__ just [hired](https://9to5mac.com/2020/06/03/apple-hires-amazon-video-executive-james-delorenzo-to-lead-sports-division-on-apple-tv/) a former Amazon sports exec to lead its Apple TV+ sports division. It's reportedly looking to invest in live sports, including college football. 
- __Amazon__ recently signed a deal with the NFL for the right to stream 11 Thursday Night Football games a year on Prime and Twitch. The 'Zon first acquired TNF rights in 2017, but this deal is the biggest (reportedly worth over [$200M](https://www.cbssports.com/nfl/news/nfl-gives-amazon-rare-standalone-game-in-renewed-tnf-streaming-deal-reportedly-worth-more-than-200-million/)). 


_Coming to a Twitch stream near you_

Stream

__Big Tech can afford to give away things that should be expensive...__ Companies like Amazon, Apple, and __[Google](https://robinhood.com/stocks/GOOGL)__ rake in so much from their main hustles that they can afford to throw billions at growth in side gigs (like video streaming). That can significantly undercut existing players, like cable providers, who can't afford to give away their main product for free. Legacy cable is bound to lose in a price war with tech's video streaming loss leaders. 

Amazon offers free Premier League streaming as Big Tech dabbles in live sports

- __Battle Royale > Casino Royale...__ Fortnite-maker __Epic Games__ is [reportedly](https://www.bloomberg.com/news/articles/2020-06-15/fortnite-maker-epic-is-said-to-near-funding-at-17-billion-value) close to raising $750M from private investors (Epic hasn't IPO'd yet). That would level it up to a $17B valuation, up from $15B in 2018. People have flocked to video games for thrills + human interaction in the corona-conomy. Investors think the trend will stick post-lockdown. Epic has over 250M users gaming/chatting via Fortnite. It also owns video chat app Houseparty, which gained 50M users *in April alone*.


- __Kim K and Batman walk into a pod...__ __[Spotify](https://robinhood.com/stocks/SPOT)__ shares [hit](https://snacks.robinhood.com/newsletters/5A4ZEajsQw0bmhsFuBK1AS/articles/69vDqt7GRc2nQ9TTXjmWSH/) an all-time high after it snagged exclusive podcast deals with Warner Bros' DC Comics and Kim Kardashian. Expect original pods featuring Superman and Wonder Woman... and a Kim K pod on criminal justice. Last month, Spotify dropped $100M to make Joe Rogan Spotify-exclusive. Since its 1st pod-cquisition in 2019, Spotify's market value has gained $25B and its pod audience more than doubled.



Highs

Who's up...

- __Ship out of luck...__ __[Carnival](https://robinhood.com/stocks/CCL)__ stock plunged 8% Friday after cruise lines [suspended](https://www.cnbc.com/2020/06/19/cruise-lines-voluntarily-suspend-all-trips-out-of-us-ports-until-sept-15-trade-group-says.html) all trips out of US ports until September 15th — Carnival had 8 set for August 1st (now canceled). Earlier in the week, Carnival [reported](https://snacks.robinhood.com/newsletters/5A4ZEajsQw0bmhsFuBK1AS/articles/2Y6SMuWwMgo4YaEpGG3FuK) a record $4.4B quarterly loss and said it would burn $650M per month for the rest of 2020. The stock actually *jumped* after that because investors focused on early bookings for 2021, which hit pre-COVID levels.


- __Truth hertz, needed something...__ less bankrupt. A month ago, __[Hertz](https://robinhood.com/stocks/HTZ)__ filed for bankruptcy with $19B in debt. Over the next two weeks, Hertz stock confoundingly [soared](https://snacks.robinhood.com/newsletters/1dxqpvdRnz5eITeoT8vbeN/articles/2GNeJtx802czcgsdR8Yfea/) 887% as investors piled into shares of the rental car company. So Hertz announced plans to sell $500M in new shares, which it warned are most likely worthless (but would help it raise cash to pay off creditors). Then the SEC (aka the US' chief stock market regulator) questioned the bizarre move. That SEC side-eye led Hertz to [cancel](https://www.cnn.com/2020/06/18/investing/hertz-drops-stock-sale/index.html) the controversial sale. 




Lows

...and who's down

⚽️ Amazon and Apple chase live sports

__Fire up the nautical puns...__ After at least 3 ships faced on-board COVID-19 crises, a wave of cancellations, and a straight up ban on cruises, we weren't expecting much from __[Carnival](https://robinhood.com/stocks/CCL)__. But the cruise operator managed to sink below even the worst expectations. 

- __Biggest quarterly loss (ever):__ Carnival lost [$4.4B](https://www.wsj.com/articles/carnival-to-post-largest-quarterly-loss-in-at-least-25-years-11592501039) — nearly 2X more than what Wall Street expected. In the same quarter last year, it turned a $430M profit. 
- __Sales plunge:__ Sales took an 85% scuba dive, coming in at only $700M. Blame corona-related travel concerns, followed by a strict No Sail Order.
- __Cash burn:__ Carnival expects to burn $650M *per month* for the 2nd half of 2020. Its massive $700M+ cruise ships are just chilling on water, burning cash by the minute.


__IDGAF'ing...__ Carnival investors. The stock actually *jumped* 5% after the Titanic-style earnings. Investors are focused on the rising tide:

- __August 1st:__ The day Carnival plans to sail again. That's only a week after the CDC's No Sail Order is expected to end. Carnival says the plan is "premature," but hasn't cancelled the 8 scheduled cruises. 
- __2021 bookings:__ As of May 31, advanced bookings for 2021 cruises were surprisingly near pre-COVID levels (though selling at lower prices).
- __Liquidity:__ Carnival's $7.6B in available cash will help it survive until it can sail. It's also planning to sell six ships over the next three months. 

_Waiting for the "no sail" order to expire_

Cruise

__It's the cathartic earnings report...__ People were expecting terrible results from Carnival. That helped stabilize its stock when earnings tanked. Carnival shares are up 33% over the month as investors focus on economic reopenings. Carnival shareholders hope they just got over the worst hump. Meanwhile, some corona-conomy thrivers like __Slack__ have dropped after earnings, because their numbers weren't as jaw-dropping as expected. 

Carnival lands a record $4.4B loss — but investors are eyeing 2021 bookings

__What do Kim Kardashian and Batman have in common?...__ An exclusive __[Spotify](https://robinhood.com/stocks/SPOT)__ partnership. The Swedish streaming champ just [inked](https://www.cnbc.com/2020/06/18/spotify-lands-deal-for-scripted-podcasts-featuring-dc-comics-characters.html) a deal with Warner Bros' DC Comics and reality TV's Kim Kardashian West. Its stock surged 12% to a record high on the news. What Spotify splurged on:

- __The entire DC Comics universe:__ Spotify gets the exclusive rights to use the blockbuster intellectual property for original scripted podcasts. Superman, Wonder Woman, Batman, and the Joker... welcome to the playlist.
- __Kim K:__ Spotify gets an exclusive Kim K podcast, focused on criminal justice and prison reform (less *E! News*, more *Law & Order*). Kim has been hitting the law books, and will be co-producing/hosting the show. 
 
__Making it exclusive...__ Spotify is defining the relationship with big stars. The goal? Bring their huge followings (exclusively) to its platform. It's the "Gated Garden" strategy:

- __A month ago,__ Spotify snatched exclusive rights to *The Joe Rogan Experience* — aka, the biggest pod in America. It dropped over $100M to make Joe a 100% Spotify experience. 
- __Now,__ Spotify is hoping to woo some of Kim's 175M Insta followers to join its [286M](https://variety.com/2020/digital/news/spotify-warner-bros-dc-superheroes-podcasts-1234641401/) users. *And* lure DC Comics fans, which boasts some of the highest-grossing films of all time. 

_Spotify making its exclusive deal pitch_

Tune

__Pods have lived up to the splurge...__ Spotify has spent almost $1B snatching up pod content/companies over the past 1.5 years, [including](https://snacks.robinhood.com/newsletters/2NAQjqWOY8CUQ4E7cSgLSV/articles/ib1obLuM7DcHI0MDKjbms/) Gimlet Media and The Ringer. Those acquisitions were mainly focused on existing pods with existing audiences. With Kim and DC, Spotify wants more non-podding people to start podding. Since its 1st pod-cquisition in February '19, Spotify's market value has grown by $25B — and its pod audience [more](https://www.cnbc.com/2020/06/18/spotify-lands-deal-for-scripted-podcasts-featuring-dc-comics-characters.html) than doubled.

Spotify stock soars to all-time high after Kardashian and DC Comics pod deals

__Ronald thrives on minimalism...__ The one thing __[McDonald's](https://robinhood.com/stocks/MCD)__ is slimming down: its menu. When coronavirus hit, the Golden Arches streamlined operations by temporarily cutting menu options. Salads, yogurt parfaits, and bagels were among the 100 unfortunates that got booted. Now, they won't be returning to the menu any time soon.

__Less is more...__ That's what McDonald's realized after this corona-conomy experiment. Fewer menu items means less to source, stock, prepare and serve — and less waste. McD's is lovin' the results:

- __Speed:__ Drive-thru times [dropped](https://www.wsj.com/articles/mcdonalds-keeps-salads-bagels-off-menus-for-now-11592494697?mod=hp_lista_pos4) by an average of 25 seconds. Buuut — this extra speed could also be due to the lack of dine-in customers (who hold up the line).
- __Satisfaction:__ Customers reported that their food tasted better and their orders were more accurate — because chicken nuggies and fries are easier than Southwest Chicken salad with half dressing on the side. 

_When the salad purge is complete_

Grub

__Corona-conomy has been one giant business experiment...__ It accelerated the WFH trend, and now it's speeding up McDonald's menu-slimming. For years, McD's has been getting feedback that its menu is overwhelming. So it planned to potentially simplify it in 2023 with a menu review. But now that change has already happened... three years ahead of schedule.

McDonald's kicks salads, bagels, and 98 others off its menu (because less is more)

🛳 Carnival anchors a record loss

__Can I still get the AUX cord?...__ Not the type of question bus drivers like to get. __[Uber](https://robinhood.com/stocks/UBER)__ is selling its ride-tracking, route-mapping software to public transit agencies on a subscription basis. We're calling it UaaS: Uber as a Service. It's Uber's latest move to diversify beyond gig ride-hailing. And CA's Marin County Transit is the [first](https://www.masstransitmag.com/alt-mobility/shared-mobility/car-sharing/press-release/21142560/uber-technologies-inc-uber-marin-transit-announce-saas-partnership-to-facilitate-accessible-mobility-and-ondemand-transit) guinea pig:

- __Booking:__ When Marin riders open the Uber app, they'll see an option for Marin's public transport van. They can book it just like a regular Uber, but with no booking fee.
- __Paying:__ Riders pay a $4 per mile fare, but share it with other riders going the same direction. Fares are then passed directly to Marin Transit. 

__Tech-ifying public transit...__ Uber already [includes](https://www.uber.com/us/en/ride/transit/#:~:text=Transit%20in%20the%20Uber%20app,and%20real%2Dtime%20departure%20information.) public transit info in-app in some big cities. Like: what's the fastest subway line and how much will it cost. But now it's actually getting *paid* by a transit agency to include it as a booking option through its app. Right now, the Marin service only includes four six-seater vans. Uber thinks it could grow way beyond this:

- __Uber plans to partner__ with more transit agencies after testing the waters in Marin for $80K. Imagine what Uber could charge San Francisco or Mexico City?









_A 5-star Uber bus ride is born_

Ride

__Uber is worried about the future of gig...__ Uber always insisted that *it's just a tech company*. Now it's selling its techy platform as its most valuable asset — *not* its army of gig workers. Since CA no longer [classifies](https://www.businessinsider.com/uber-lyft-drivers-declared-employees-by-california-regulators-2020-6) gig workers as contractors, gig icons like Uber may have to start giving them benefits like full-time employees. This new anti-gig product adds a new revenue stream that could offset some gig-related losses. 

Uber will sell its software to transit agencies to Uber-ify public transport

__Summer BBQ just got plant-ier...__ Plant-based meat icon __[Beyond Meat](https://robinhood.com/stocks/BYND)__ is expanding beyond the four-pack. The corona-crisis and a national meat shortage has won the alt-meat gang some bandwagon fans: Last week, sales of meat alternatives nearly [tripled](https://www.cnbc.com/2020/06/17/beyond-meat-to-sell-cheaper-value-packs-of-its-meatless-burgers.html) compared to the year before. And Beyond wants more in on the stay-at-home, food hoarding action:

- __Meat the "Cookout Classic":__ That's the value pack of 10 meatless patties that Beyond just unveiled for $15.99. It's 8 patties stronger than its traditional, unhoardable 2-pack.

__This is more than just Grill Season marketing...__ It's a pricing war with (literal) beef. The new value packs lower the price of Beyond meat *per pound*, narrowing the price gap with traditional (cheaper) beef patties:

- __$12/pound:__ That's what's a 2-pack of Beyond patties sells for at Target. AKA "Beyond Budget."
- __$5.26/pound:__ That's the price of [real beef](https://www.cnbc.com/2020/06/17/beyond-meat-to-sell-cheaper-value-packs-of-its-meatless-burgers.html) according to the Dep't of Agriculture.
- __$6.40/pound:__ That's the plant-based poundage of Beyond's new value pack — aggressively narrowing the gap with beef. 
- __Beyond's goal:__ "Making plant based meat accessible to all." For a limited time only, of course — the value pack will only be available through summer. 

"_Your plant-based preference is welcome here_"

Package

__Early adopters are not enough...__ Once your product gets its early fan base, you have to knock down barriers to go mainstream. Beyond is focused on the first one: price. It [managed](https://snacks.robinhood.com/newsletters/7kUCvPmXZ2AB4lOFC3m77C/articles/m0pxhSxi4BkLW9jyf1Pkw) to turn a profit last quarter because its patties are so pricey. Now it's chasing growth by competing on price with beef and cheaper meat-substitutes like Morningstar. It may want to extend this beyond "limited time."

Beyond Meat wants to make plant-based accessible to all with its new value pack

🚌 Uber does public transit 

__"You are the Apple of my eye"...__ __[Apple](https://robinhood.com/stocks/AAPL)__ to its own apps. Apple's App Store is a massive marketplace for the world's scrolly-tappy desires. But in addition to owning that marketplace, Apple also competes in it with its own apps: Apple Maps, Books, Podcasts, *etc.* 

- __iControl:__ In addition to pre-downloading some apps on your iPhone, Apple often displays them higher than arguably more-worthy competitors on its App Store. For instance Apple Music is currently #1 and Spotify comes up #5 for a "music" search.
- __iMoney:__ Apple also takes a [15%-30%](https://www.apple.com/ios/app-store/principles-practices/) cut of paid downloads, in-app purchases, and subscriptions in non-Apple apps.
- __iAngry:__ That rubs some the wrong way — *especially* the EU, which has [launched](https://www.wsj.com/articles/apple-faces-two-eu-antitrust-probes-over-apps-11592302148) 2 antitrust probes to determine whether Apple violated competition laws. 

__Silicon Valley dominates Europe's scrolly-tappy ways...__ The EU hates that Apple, __[Facebook](https://robinhood.com/stocks/FB)__, __[Google](https://robinhood.com/stocks/GOOGL)__, and __[Amazon](https://robinhood.com/stocks/AMZN)__ are making bank off hundreds of millions of European users — without really paying any European taxes. And it *hates* the home-court advantage:

- __The EU is investigating Apple__ for rival-squashing with its App Store and Apple Pay policies. If Apple is found guilty, Europe could fine it for a 10% cut of its annual sales.
- __Preemptive defense:__ On Monday, Apple announced that the App Store generated [$519B](https://www.apple.com/newsroom/2020/06/apples-app-store-ecosystem-facilitated-over-half-a-trillion-dollars-in-commerce-in-2019/) in 2019 revenues for global developers. 
- __In press release speak__: "The results encapsulate...the dynamic, competitive, and flourishing app economy, which has unleashed a torrent of innovation across 175 countries." Key word: *competitive*.


_When the ref is your dad_

Download

__This is a wider "platform-player" issue...__ The EU is investigating other American tech giants too, saying they're abusing home court advantage on their own platforms. BTW — the US government is also running its own antitrust investigations. Platforms like the App Store have created an explosion of opportunity and wealth, but they seem to be playing favorites.

Europe wants to  punish Apple for playing favorites with its apps

__Everybody hertz...__ But __[Hertz](https://robinhood.com/stocks/HTZ)__ didn't cry when its stock inexplicably soared after its bankruptcy announcement. The airport rental car classic was hurting pre-corona, thanks to competition from peers like __Enterprise__ and ride-hailers. Then came this head-scratching timeline:

- __May 22:__ Hertz files for bankruptcy, sitting on $19B in debt and 700K cars — most of which haven't felt human touch on their steering wheels since March. 
- __May 26:__ Hertz stock is trading at a low of $0.56, after filing with no deal in place from the creditors it owes. 
- __June 8:__ Hertz shares have soared 887% to $5.53, as investors inexplicably pile into the stock.
- __June 15:__ Hertz announces plans to sell up to $500M in new shares, which it would issue to capitalize on its stock price. 

__Lenders get paid first...__ The "absolute priority" rule in bankruptcy means that creditors (whom Hertz is indebted to) must get back the money they lent before shareholders get a penny. That's why Hertz had to [warn](https://www.cnbc.com/2020/06/15/hertz-says-it-expects-stockholders-to-lose-all-their-money-in-filing-for-selling-more-stock.html) potential buyers of its new stock that they will likely lose all their money.

- __"Worthless":__ Mentioned 5 times in Hertz's [filing](http://ir.hertz.com/sec-filings), in reference to what its stock could become. 
- __"Risk":__ Mentioned *49 times*, in reference to what investors are involving themselves in. 
- __Translation:__ *We hope you'll buy these brand new shares for X dollars... but they might actually be worth $0* — Hertz.


"_What is happening to us?_"

Sell

__Investors aren't always rational...__ So stocks don't always move in sensical ways. People traditionally buy because they believe a company will generate greater cash flows in the future (and so, they believe, share prices will rise). But stocks also rise for reasons unrelated to actual/future value: if there are more buyers than sellers, a stock's price rises. The "buying reason" — whether that's thoughtful investment analysis or straight up speculation — still affects the stock's movement either way.

Hertz is selling $500M in new shares, fresh after declaring bankruptcy

🚗 Hertz's stock conundrum 

__The Rebel Alliance...__ __[Shopify](https://robinhood.com/stocks/SHOP)__'s corona-conomy MO: *keep your friends close, and your would-be enemies closer*. The out-of-the-box ecommerce platform [partnered](https://snacks.robinhood.com/newsletters/7Fl0kcKPHzNEVEVwnee0Zp/articles/7GbosmnxcsEDfjk2yPdKh6) with __[Facebook](https://robinhood.com/stocks/FB)__ in May to power Instagram "Shops." Now Shopify is teaming up with __[Walmart](https://robinhood.com/stocks/WMT)__ to integrate with its 3rd-party seller platform, Walmart Marketplace. 

-  __Quid pro quo:__ Shopify's approved small business sellers get access to Walmart's [120M](https://techcrunch.com/2020/06/15/walmart-partners-with-shopify-to-expand-its-online-marketplace/) monthly customers. Walmart gets a cut of sales and a more diverse/robust product offering without the product grunt work.
- __The ultimate goal?:__ Take on the __[Amazon](https://robinhood.com/stocks/amzn)__ Empire, which controls legions of sellers (and 300M global customers). 

__Own the market, not the booth...__ Amazon and Walmart provide sellers a platform to hawk goods on — but they don't actually have to source/provide all the goods you see on their websites. It's like owning a Farmers Market lot, then taking a cut of each booth's food/bev sales: 

- __Marketplace is a “strategic priority”__ for Walmart. Businesses are moving online faster than ever. Even OG __[eBay's](https://robinhood.com/stocks/EBAY)__ stock recently hit an all-time high. 
- __Walmart's ecommerce biz grew 74%__ last quarter. Marketplace sales grew *faster* than sales of Walmart's very own products. 


_Darth Bezos intensifies_

Compete

__"The enemy of my enemy is my friend"...__ It's *The Art of War*, applied to business. Ecommerce platforms that *aren't* Amazon are teaming up with one goal in mind: fight Amazon together. Standing up against the forces of Darth Bezos might lead to more surprising partnerships.

Shopify and Walmart team up to take on Amazon: the 3rd-Party Seller Wars

__Shine a light...__ on racial bias. Like many other platforms, __Airbnb__ has not been free from implicit (and explicit) discrimination. The rental booking platform connects guests and hosts. Unfortunately, some users get turned down for no other reason than their name and the color of their skin. 

- __Since 2016,__ Airbnb has removed [1.3M](https://www.airbnb.com/against-discrimination) users for "declining to treat others without bias." It also added an objective Instant Booking feature and profile pic protections (your photo isn't shown until a host confirms the booking).
- __Enter "Project Lighthouse":__ Now, Airbnb is collecting data on user behaviors to measure discrimination. The project is in partnership with Color of Change, America's largest online racial justice org.

__Airbnb's problem is harder to solve...__ Hotels are required to accept any paying customer if there's a vacancy. Hospitality platforms like Airbnb can't force hosts to accept a person into their house. 

- __That's why data is key__ — the info Airbnb collects will help it measure bias, so that it can then tweak its products/features to fight it. 
- __Think:__ Emphasizing guests' ratings over pictures or informing users of selection patterns that could potentially be discriminatory.
- __Privacy:__ Airbnb is working with privacy experts to help ensure that the data collected isn't associated with individual accounts.






Book

__If Airbnb can help solve this, other gig companies could too...__ Bias is also a problem for other gig-like platforms (where users can accept/reject a person for no reason). Airbnb has pledged to publish the data and policies that come out of Project Lighthouse. We're thinking this could help Airbnb's buddies like __Uber__, __Wag__, and __TaskRabbit__ reduce discrimination, too. 

Airbnb will try to measure (then tackle) racial discrimination on its platform 

__Not the Will Smith movie...__ __[iRobot](https://robinhood.com/stocks/IRBT)__ is a rare publicly-traded, consumer-facing robot company. It's famous for birthing the Roomba (aka, the world's 1st self-driving vacuum). And it just rolled its way across the floor to give us a casual [update](https://investor.irobot.com/news-releases/news-release-details/irobot-provides-business-update-0):

- __"Substantially stronger than expected":__ iRobot's quarterly sales. They're now expected tp be around $265M, up from the previous forecast of less than $193M. 
- __"True partners":__ In grime-fighting. People are staying home more, so floors are getting dirtier. Throw in a global pandemic, and you've got a cleaning-obsessed market. 

__Time is more valuable than money...__ That's the philosophical conclusion we extrapolated from Roomba sales. The premium $900 Roomba Series is selling better than the $250 basic version. People are working from home, caring for kids, and cooking 10 meals a day — that's a reason to splurge on the most efficient automated vacuum option. The one task you *can* delegate.   

_Initiating 'Desert Clean' setting on Roomba 9000_

Automate

__*Hot* takeaway — iRobot should get itself acquired...__ Its $2.3B market value is 1/4 of a Lyft. While the stock is up 70% for the year, it's still down 35% from its all-time iRobotic high. iRobot's business revolves around a single, popular product line that could be easily tossed into a corporate shopping cart. An __Amazon__-owned iRobot could throw in some Alexa to entertain you while it cleans.

iRobot sweeps up strong Roomba sales — it could be Big Tech's partner in grime (fighting)

🛍 Shopify & Walmart come for Darth Bezos

__Felt cute, won't delete later...__ __Instacart__ and __Doordash__ have never looked more attractive. In the corona-conomy, food essentials are everything and delivery is key. As the #1 market leaders in grocery and restaurant delivery, Instacart and Doordash take the essential delivery cake. 

- __Coming in hot:__ And impeccably-timed. They're leveraging their moment of sexiness to raise big money. Investors think lockdown-life habits will stick, even as the economy reopens. 
- __Instacart__ just raised $225M, delivering itself a $13.7B valuation — big bump from its last one ($7.6B in 2018). 
- __DoorDash__ is [close](https://www.wsj.com/articles/doordash-nears-deal-to-secure-funding-from-t-rowe-price-fidelity-others-11591913622) to sealing fresh funding that would value it at $15B (up from $13B in 2019).

__Can I get a slice of that pie?...__ Negative. Over seven years ago, Instacart and Doordash started raising money from private investors for their *adorable* little startups. In 2020, they're still private and still fundraising, but their businesses have exploded:

- __[57%](https://www.theinformation.com/articles/instacart-blows-past-walmart-in-online-grocery-business):__ Instacart's share of the US online grocery market in April. That eclipses __[Walmart](https://robinhood.com/stocks/WMT)__, which plunged to around a 25% thanks to Instacart's rise.
- __[45%](https://www.businessinsider.com/doordash-prepares-to-raise-new-funding-at-15-billion-valuation-2020-6)__: DoorDash's share of the food delivery market in April, up from 35% in November. That #1 status is even more solid after Grubhub decided [not](https://snacks.robinhood.com/newsletters/1Nve3vhlByq10W74UeVgUP/) to combine with Uber Eats.  

_Trying to get a slice of the private delivery pie_

Deliver

__Companies stay private longer. Public investors miss out...__ Investors get FOMO when public stocks soar, but with private stocks it's just SUMO (Straight Up Missing Out). Companies have stayed private for longer, so public investors can't access early growth (and soaring valuations). Back in the '90s, __[Amazon](https://robinhood.com/stocks/AMZN)__ went public just 3 years after its founding. Today, __[Uber](https://robinhood.com/stocks/UBER)__ took a decade to IPO, and the stock has fallen since. After 12 years, __Airbnb__ still isn't public.

Instacart and Doordash deliver multi-billion dollar valuations (and we miss out)

- __To infinity, and Elon'd(er)...__ __[Tesla](https://robinhood.com/stocks/TSLA)__ investors felt rocketship vibes as the stock hit an all-time high — [production](https://www.reuters.com/article/us-tesla-truck/tesla-shares-surge-past-1000-as-musk-revs-up-the-semi-idUSKBN23H1PE) of Elon's Semi truck is ramping up. Shares surged past $1K for the first time ever, making the e-car icon the world's 2nd most valuable carmaker (*juuust* shy of Toyota). For reference: Tesla sold 368K vehicles last fiscal year. Toyota sold *8.96M*. Shares have now dropped 9% since last week's peak.

- __Cannabis side-hustle...__ __[Scotts Miracle Gro](https://robinhood.com/stocks/SMG)__'s sales surged as WFH'ers stocked up on its gardening and lawn care products. But Scotts' cannabis-growing side hustle was the real [winner](https://snacks.robinhood.com/newsletters/1Nve3vhlByq10W74UeVgUP/articles/4JcQJ4tCYguADod0qMrCC1/): the hydroponics-focused Hawthorne division helps producers grow weed with water (no soil needed). Hawthorne's sales nearly 2X'd in 2019, jumped 51% last quarter, and are expected to grow another 45%-50% for the full year 2020.

- __Downward dog on the earnings...__ __[Lululemon](https://robinhood.com/stocks/LULU)__ fell 8% after the athleisure darling reported a 17% quarterly sales plunge. Lulu's [flexible](https://snacks.robinhood.com/newsletters/5f9CgQ6e0OASVb4XOS2NoL/articles/75PhTygJY5kWlZIfo4Mafu) ecommerce biz wasn't enough to swallow the hit from corona-closed stores. As of June 10th, [60%](https://www.cnbc.com/2020/06/11/lululemon-lulu-reports-fiscal-q1-2020-earnings.html) of Lulu's 489 global stores have reopened. All are expected to open by the end of June — but Lulu's not expecting a return to yearly sales growth until the end of 2020.


- __When the suave British accent swoops your crush...__ __[Uber](https://robinhood.com/stocks/UBER)__'s potential marriage with __[Grubhub](https://robinhood.com/stocks/GRUB)__ is off after a European delivery giant [swooped](https://snacks.robinhood.com/newsletters/1Nve3vhlByq10W74UeVgUP/articles/4pdmA56EqHRt47CYsEk4tx) in. Anglo-Dutch __Just Eat Takeaway__ is acquiring Grubhub for $7.3B. Uber shares dropped 8% when its food delivery consolidating dream evaporated. An Uber Eats/Grubhub merger would've made it the delivery leader with half the US market — progressive politicians weren't thrilled about the idea, which reportedly doomed the merger's chances. Now __Postmates__ could be Uber's [consolation](https://www.wsj.com/articles/uber-says-thank-you-next-11591956000) prize.

🥯 DoorDash + Instacart = (private) billions 

__Applied the wrong filter...__ __[Zoom](https://robinhood.com/stocks/ZM)__. An American human rights org hosted a Zoom conference to commemorate the lives lost in Tiananmen Square 31 years ago. Then Zoom [shut](https://www.axios.com/zoom-closes-chinese-user-account-tiananmen-square-f218fed1-69af-4bdd-aac4-7eaf67f34084.html) the account down. Zooming out...

- __Tiananmen Square Massacre:__ In 1989, a million pro-democracy protesters hit the streets of Beijing against repressive Communist leaders/policies. The Chinese government cracked down hard, killing hundreds, thousands, or "[at least 10K](https://www.bbc.com/news/world-asia-china-42465516)" people (exact number is unknown).
- __Censored:__ In China, it's illegal to discuss what happened in Tiananmen Square. So since Chinese citizens joined the conference, Zoom decided to shut down the US-based account "to comply with local law."
- __Zoom's response:__ "It is not in Zoom’s power to change the laws of governments opposed to free speech.” So what *is* in companies' power?

__What this company did...__ __Pocket Casts__, a popular podcast app, just [said](https://www.theverge.com/2020/6/11/21287436/pocket-casts-castro-china-apple-government-pressure) it won't censor content based on China's requests: “We believe podcasting is and should remain free of government censorship.” That principled move resulted in Pocket Casts getting removed from the App Store in China yesterday. 

- __"All-or-nothing" approach:__ Tech companies aren't thrilled to get blocked off from billions of potential users in China. But Pocket Casts went "all-or-nothing."
- __"Censored" approach:__ What Zoom just chose. Also, what __LinkedIn__ does by offering a censored version of itself in China. In 2018, __[Google](https://robinhood.com/stocks/GOOGL)__ worked on a censored search engine for Chinese users, but backed down after US public outcry.


_When Zoom locks you out of your own account_

Censor

__The world has two internets...__ What else is blocked in China? Facebook, Google, Twitter, Wikipedia, Reddit, Slack, and pretty much every other platform that freely spews people's every thought. Tech companies have to decide if they'll go "all-or-nothing" or "censored" with China. Either way, China has had no problem creating its own gov-censored social copycats (like __WeChat__ for WhatsApp and __Weibo__ for Twitter).

Zoom shuts down a human rights account to comply with Chinese law

__Fur ballin' out...__ The cutest trend to accelerate in the corona-conomy: puppy love. Pet adoption soared 60% in March and April as homebound Americans took in pandemic pups and kittens to keep them company (and spice up their social lives). Online pet supply deliverer __[Chewy](https://robinhood.com/stocks/CHWY)__ thrived on the furry frenzy:

- __+46%:__ How much Chewy's sales [soared](https://www.thestreet.com/investing/chewy-beats-sales-earnings-estimates#:~:text=For%20the%20quarter%2C%20Chewy%20reported,18%20cent%20expected%20by%20analysts.) last quarter. Pet parents stocked up on chewy bones, peanut butter treats, and adorable toys to pamper WFH companions.
- __$3.4M:__ Chewy's profit, unlike the previous quarter (where it actually *lost* money). Chewy wasn't expected to dig up a quarterly profit until 2021.
- __2.5M:__ The number of new customers who made Chewy pet profiles last quarter — 25% of those profiles were for new pets. 

__Chewed too hard...__ Chewy stock, which is up 66% for the year, actually dipped on the earnings. Investors were expecting even more pawesome results, given the whole pet adoption hype. But Chewy believes it has something more lasting and more valuable than a pandemic surge....

_Waiting for the Chewy delivery_

__Customer service is Chewy's real profit puppy...__ Chewy retains customers long-term thanks to its focus on customer service. That came in clutch when the demand surge caused shipping delays in March/April. Chewy promises a human will pick up its 24/7 customer hotline within *6 seconds* (we tried it — it's legit). It's even sent customers [oil paintings](https://www.distractify.com/p/chewy-dog-food-refund) of their pets. Who can stay mad with a Picasso-style bulldog? 

Chewy thrives on puppy-palooza (but investors expected a bigger treat)

__Clear the confetti from the NYSE floor...__ After an impressive three-month rally when the S&P 500 gained 45%, stocks just plunged. Investors bit their nails over health [stats](https://www.cnbc.com/2020/06/10/texas-reports-a-third-straight-day-of-record-coronavirus-hospitalizations.html) flowing out of newly reopened states:

- __Texas__ reported its [3rd](https://www.cnbc.com/2020/06/10/texas-reports-a-third-straight-day-of-record-coronavirus-hospitalizations.html) straight day of record COVID-19 hospitalizations (2,153 on Wednesday) — it was one of the first states to reopen.
- __Florida__ had the biggest jump in cases since March, and South Carolina hit a record high. California said nine counties saw a spike in new cases and hospitalizations.

__No parties at the Fed, either...__ On Wednesday, the Fed projected that it would keep interest rates close to zero through *at least* 2022. The Fed [wants](https://snacks.robinhood.com/newsletters/6zAABrs8yPYr7bhE4fZ3pd/articles/6uylQQIpW8xRU8cpJAiDKp/) us to spend our $$$ on stocks/stuff and take out low-interest loans (instead of hoarding it in a savings account). 

- __Problem?__ That 2-year economic stimulation effort suggests the Fed's outlook is grim. The near-zero rates are aggressive, but the Fed thinks they're necessary to stay afloat.
- Even though unemployment filings last week were the lowest in 11 weeks, __21M Americans__ are still collecting unemployment benefits.  
- Treasury Secretary Steven Mnuchin [said](https://www.cnbc.com/2020/06/11/treasury-secretary-mnuchin-says-we-cant-shut-down-the-economy-again.html) that shutting down the economy again to slow the spread __isn’t a viable option__. Investors think it's possible (and panic-inducing).

_Investors waking up on Thursday_

Drop

__Investors were ignoring the inevitable...__  Public health experts have said that when states re-open, infections will likely spike. Economists have said it'll take years, not months, to recover from the financial damage coronavirus wreaked. Buuut: falling cases, a wave of reopenings, and a surprisingly [positive](https://snacks.robinhood.com/newsletters/4uDJgIDwf0SsVfEGLojAI5/articles/7rW4ozXTrGfVlyThVMCo1C) May job report kept investors optimistic. Markets were down just 5% from their record highs — until yesterday.
