__Like that $50 you spotted Tracy for dinner...__ you know you'll never get it back. __[JPMorgan](https://robinhood.com/stocks/JPM)__ is in the same spot — except its loans are in the billions. America's largest bank saw its profit fall a stunning [70%](https://www.wsj.com/articles/jpmorgan-chase-reports-profit-falls-69-amid-u-s-coronavirus-outbreak-11586862723) in the quarter, as it set aside an extra __$6.8B__ to cover looming losses from defaulted loans. __[Wells Fargo](https://robinhood.com/stocks/WFC)__ also evaporated __$3B__ of its profits to cover expected loan fails. 

- __Banks make loans__ to individuals, companies, and government entities, then collect  interest on the loans — think mortgages, credit cards, biz loans, and bonds. That's all fine and dandy when most people are able (and expected) to pay those loans back...
-  __But with [17M](https://www.politico.com/news/2020/04/09/coronavirus-unemployment-claims-numbers-176794) newly unemployed Americans__ and businesses closed across the country, banks are shifting their expectations (big time). Many IOUs will turn into "sorry, I literally cannot pay you back," as sources of income disappear. 

__Enter "Loan Loss Provisions"...__ That's money set aside by companies in advance to cover expected *future* losses. Most earnings reports are backward-looking, but the 1st two big banks to report had more *forward-looking* reports to share:

- __[$1.5B](https://www.wsj.com/articles/jpmorgan-wells-fargo-profits-tumble-as-they-brace-for-a-recession-11586881571):__  How much JPM had set aside for Loan Loss Provisions *before* the corona-crisis — now it's setting aside a total of __$8.3B__, with possibly more to come. 
- __[$800M](https://www.wsj.com/articles/jpmorgan-wells-fargo-profits-tumble-as-they-brace-for-a-recession-11586881571):__ How much Wells Fargo had planned to spend  on loss coverage — now it's losing a total of __$3.8B__, taking an 80% bigger L than expected.



_Loading up on Loan Loss Provisions_

Save

__Planning for losses is crucial (so is hedging them)...__ While the banks' consumer units are being pummeled by the economic crisis, it wasn't all bad news. The volatile stock market boosted JPM's trading revenues by [32%](https://www.wsj.com/articles/jpmorgan-chase-reports-profit-falls-69-amid-u-s-coronavirus-outbreak-11586862723), while interest-earning deposits jumped [23%](https://www.wsj.com/articles/jpmorgan-chase-reports-profit-falls-69-amid-u-s-coronavirus-outbreak-11586862723) as people stashed cash in checking accounts. While these gains offset *some* losses, planning ahead for worst-case default scenarios is crucial to the banks' survival.

JPMorgan and Wells Fargo lose big on expected loan losses — the defaults are coming

__Like that excited friend who can't keep a secret...__ streaming player __[Roku](https://robinhood.com/stocks/ROKU)__ is so giddy with its recent success that it couldn't help but share a little sneak-preview into its earnings ahead of their May 7 release. 

- __[3M](https://ir.roku.com/news-releases/news-release-details/roku-provides-estimated-q1-results):__ The number of new accounts Roku estimates it added in the last 3 months. Its total active accounts are estimated to be around 40M. 
- __[49%](https://ir.roku.com/news-releases/news-release-details/roku-provides-estimated-q1-results):__ How much Roku expects streaming hours have risen over the same period compared to last year — that's __13.2B__ hours of streaming through Roku (or how you feel after finishing all of Netflix). 
- __10%:__ How much Roku's stock popped after the preview victory.


__Roku is kind of like the People's Streaming Device...__ It accounts for [44%](https://www.fool.com/investing/2019/12/19/roku-dominance-connected-tv-advertising-growing.aspx) of all streaming hours in the US. Its dongles start at $29.99/month, compared to Apple TV's $140+ shiny black boxes. It's not as sleek as Apple TV or as Alexa-integrated as Amazon Fire Stick — but it's cheap, it works, and is compatible with most TVs. Most Americans can swing that.

"_Hello? I think my Roku stick is broken..._"

Stream

__Tailwinds are great for business...__ When economic trends align with your biz model, it's like a strong wind pushing you further in your desired direction. Roku's got 3 at its back:

- __Lockdown Life:__ Quarantine boredom + the launch of exciting  streamers like Disney+ and HBO Max are likely to get people hooked on streaming devices.
- __Live sports is cancelled:__ Just another reason to cut the cord. 
- __Saving Mindset:__ With the economic crisis, people may opt for Roku's low-cost streaming device over pricier ones. But this is also a headwind  — [63%](https://videoadnews.com/2020/02/14/the-wir-rokus-doubles-its-video-ad-impressions-in-2019-the-bbcs-chairman-warns-against-a-subscription-model-for-the-broadcaster-and-igtv-trials-video-ads/) of Roku's revenue comes from ads, which marketers aren't splurging on since your spending is way down. 

Roku surfs the quarantine streaming waves with 3 tailwinds at its back

__Not a heavy metal band or a violent rash...__ __Thrasio__ is an unfortunately-named (yet [profitable](https://news.crunchbase.com/news/meet-thrasio-a-profitable-startup-that-just-raised-110m-at-a-780m-valuation/)) startup that just got a little closer to becoming a unicorn. It raised a fresh $110M, bumping it to a $780M valuation. And its whole business revolves around being __[Amazon](https://robinhood.com/stocks/AMZN)__'s most aggro customer — its [slogan](https://www.thras.io/) is *literally* "We Buy Amazon Businesses:"

- __Scout:__ Thrasio tracks down the best-selling, most highly-reviewed everyday essentials on Amazon — think: *best foam roller*, *excellent cotton socks*, *world's #1 can-opener*. Then...
- __Acquire:__ Thrasio buys the generic brands from the small biz owners who are making bank on Amazon (but who may not have the resources to scale). Thrasio drops over $1M in cash to snag these seven-figure brands from their owners. Then...
- __Integrate:__ Thrasio integrates these fast-growing brands into its platform, and scales them more effectively.


__Fast times at Thrasio High...__ Thrasio has been profitable since Day 1 of its founding in mid-2018,  [according](https://news.crunchbase.com/news/meet-thrasio-a-profitable-startup-that-just-raised-110m-at-a-780m-valuation/) to its founders. Now it's the [fastest-growing](https://www.thras.io/) acquirer of Amazon-trepreneurs, with some impressive stats to boot:

- __In just a year of fundraising,__ Thrasio raised a total of __$250M__ in three investment rounds.
- __Its current valuation is 32X larger__ than its seed valuation a year ago, and this latest investment is $90M bigger than its last.
- __In just a year and a half,__ it has acquired over __43 businesses__ — its sales have grown from 0 to more than $200M.   

Raise

__Sometimes, you really *can* buy success...__ That's exactly what Thrasio is doing: it's buying up already hot, successful businesses that are clearly in demand, adding them in a pile with other successful businesses, and coming out with an even bigger, fatter pile of success. With the investment cash and operational scalability that Thrasio brings to the table, it can do what successful Amazon sellers do on a much larger scale.

Almost-unicorn Thrasio hits a $780M valuation — it's obsessed with your Amazon purchases

Dow Jones

S&P 500

Nasdaq

Bitcoin

10-Yr US Treasury

 🌊 Roku surfs the wave

__America runs on Dunkin'...__ but __[Dunkin'](https://robinhood.com/stocks/DNKN)__ runs on a 100% franchised biz model — that's coming in pretty sweet during the corona-conomy. Dunkin's 21K stores are 100% owned by independent people. Dunkin' sells the rights to use its brand and open up shop — as long as the Boston Kremes are kremy and the Caramel Iced Coffees are extra-syrupy, no one will care who owns it. Dunkin' cashes in on franchises in 3 way:

-  __Selling rights to operate the brand:__ Dunkin' gets to expand its empire, while the owner gets to cash in on Dunkin's brand fame, recipes and loyal customers (for a "franchise fee"). 
- __Selling stuff to operate the brand:__ The franchise owner is obligated to purchase Dunkies essentials — like ingredients, uniforms, and plastic furniture — straight from corporate. 
- __Share of sales:__ Owners must pay Dunkin a percentage of the franchise's sales and an upfront fee for the privilege.

__Franchising is the democratization of fast-food fortunes...__ By paying regular fees to franchisors like __[Domino's](https://robinhood.com/stocks/DPZ)__ or __[McDonald's](https://robinhood.com/stocks/MCD)__, entrepreneurial *franchisees* get a share of Big Fast Food's profits. You've heard of landlords — Dunkin' is the franchisee's *brand*-lord.

_When you realize that McDowell's is not a McDonald's franchise_

Dunk

__Franchising means lower risk, but also lower potential reward...__ for corporate. The franchise owner (not Dunkin') pays for the building, the employees, and all the biz expenses — so it's this franchisee who loses out most when the biz is closed. Dunkin' has limited investment, so the only thing it's losing when sales are down is a cut of those sales. But franchise owners reap a greater percentage of profits when business booms.

Dunkin' doesn't own a single one of its own locations — and that's good right now

__Where'd that state tax go?...__ The virus economy has plunged spending, caused major layoffs, and stuck a knife in travel. The economic pain felt by individuals and businesses is catching up to states, which are losing their most important sources of revenue:

- __Sales Tax:__ Your cold brew costs $4, but your state slaps on a nice 7% tax on top. Rates vary state by state (some, like New Hampshire, don't charge it). But highly sales [tax-dependent](https://www.axios.com/coronavirus-states-cities-economic-crisis-519d28b2-2126-4749-b94b-a3dcbdcf0feb.html) states like Florida and Nevada are struggling as spending plummets (aka, nothing to tax). 
-  __Income Tax:__ Just when you thought you were done filing taxes, there comes the state section. Income tax revenue is plunging as 17M have been laid off across the country — plus the filing deadline was extended by 3 months to July 15, meaning delayed cash flow.  
- __Tourism Tax:__ That reason your hotel bill is higher than list price (even when you didn't raid the minibar). Can be collected by states or cities/counties. Las Vegas is missing out on 12% resort fees thanks to shuttered hotel/casinos.   


__States use that money for key resources...__ Like public schools, roads, and unemployment benefits. Now, at the same time that revenue is down, states are spending *more* on unemployment and medical expenses — a double-whammy for the piggy bank. Even states with a lot of cash saved up (like Arizona) will likely be running [deficits](https://www.axios.com/coronavirus-states-cities-economic-crisis-519d28b2-2126-4749-b94b-a3dcbdcf0feb.html) by 2021. 

Lose

__States and cities rely on *your* earning/spending...__ Since that's significantly down, we can expect some big budget cuts ahead — and maybe even some bankruptcies. The state's piggy banks will recover *after* its people and businesses do. Just like individuals and businesses, states can: 

- __Get credit ratings__ based on ability to pay back loans. 
- __Take on debt__ by issuing bonds.
- __File for bankruptcy__ when they can't pay back debt. 
- __Get bailed out__ by the federal government in billions of aid.

Coronavirus money pain catches up to states, hitting all forms of tax revenue 

🍩 Dunkin's franchise treat

__There's no "we" in iOS...__ But there is an "and" in Android. __[Google](https://robinhood.com/stocks/GOOGL)__ and __[Apple](https://robinhood.com/stocks/AAPL)__ are teaming up to [launch](https://www.theverge.com/2020/4/10/21216484/google-apple-coronavirus-contract-tracing-bluetooth-location-tracking-data-app) a COVID-19 tracking tool. The new system, which will be intro'd in mid-May, allows iOS and Android users (aka 99% of smartphones) to voluntarily share data through Bluetooth transmissions and health org-approved apps. There's [no use](https://techcrunch.com/2020/04/10/apple-and-google-are-launching-a-joint-covid-19-tracing-tool/) of location data — it's based on proximity to other phones (and therefore your close contact with other people):

- __You download an app__ from a public health authority. The app exchanges anonymous identifier data with other participating phones you've come in contact with. If you report that you tested positive for COVID-19...
- __The app then alerts those phones' owners__ that they may have been exposed. Then the testing and contact-tracing cycle (ideally) repeats.
- __Eventually__ Google and Apple will build a functionality where iOS and Android users don't have to download an app, and can just [opt in](https://techcrunch.com/2020/04/10/apple-and-google-are-launching-a-joint-covid-19-tracing-tool/) easily.


__Red Sox vs Yankees, Pepsi vs Coke, Marvel vs DC...__ Apple's iOS and Google's Android are historic smartphone operating system rivals — and fans get very heated on their preference. This unlikely partnership speaks to the importance of the tool:

-  __Tracking is key__ to testing and (if necessary) self-quarantining yourself to avoid infecting others. But we don't have a widely-used tracking tool.
- __Apple and Google are the only ones__ who can launch this on a large-scale in the US (and the world). [South Korea](https://www.technologyreview.com/2020/03/06/905459/coronavirus-south-korea-smartphone-app-quarantine/)  and [Singapore](https://www.businessinsider.com/singapore-coronavirus-app-tracking-testing-no-shutdown-how-it-works-2020-3) have used similar (though way more privacy-invading) COVID-19 tracking apps, which has been key to their success in containing the disease.

_Android and iOS teaming up for a common win_

Join

__Setting a precendent...__ It's rare to see 2 supremely competitive companies unifying brains and biz resources. But Big Tech must come together to fill gaps Big Government can't. To be successful, the system will need to be widely adopted (the whole thing is voluntary). Plus, tests will need to be available for all potentially infected people (but there's still a [shortage](https://www.vox.com/2020/4/10/21214218/trump-coronavirus-testing-social-distancing)). 

Historic rivals Apple and Google join their phone-controlling powers

- __It's a bird, it's a plane, it's...__ toilet paper, Tylenol, and a croissant. __[Alphabet](https://robinhood.com/stocks/GOOGL)__'s __Wing__ is the drone delivery startup created out of __Google__'s  X Lab for "save-the-world" projects. As part of an FAA-approved test project, Wing's drones are flying groceries, medicines, and even pastries to early adopters in Christanburg, VA. Now demand for its drone-delivery service has [surged](https://www.bloomberg.com/news/articles/2020-04-08/alphabet-s-delivery-by-drone-surge-to-stay-at-home-customers) dramatically (delivery via sky is very anti-germy), which could accelerate mainstream-ification of this futuristic service.

- __A light at the end of the breadstick basket...__ Olive Garden's parent __[Darden Restaurants](https://robinhood.com/stocks/DRI)__' sales are down over 60% as 100% of its dining rooms shut. Buuut, Olive Garden's *take-out* sales have [jumped](https://snacks.robinhood.com/newsletters/6jMYrs8xXmNhuDOMY3gXEt/articles/6apqgjOYNC1qcTq8YG3EL6) a saucy 142%, while LongHorn Steakhouse's 3X'd. Darden also served up news that it has $1B in doughy cash on hand, and that it's slashing exec pay in half to help it survive this pasta drought. The stock jumped 45% over the week.

Highs

Who's up...

- __No such thing as a free lunch...__ *Especially* not for __Airbnb__, whose untimely pad-rental biz got it exiled to Wall Street's (unpopular) "risky" lunch table. No one's booking travel rentals right now, so Airbnb needs cash — sales could [fall](https://snacks.robinhood.com/newsletters/78so4bt9Fa85LcklanAFSB/articles/4O5kJlEPHTgzTTN70wvPrp) 54% this year. So it's rasing $1B in debt, but will pay that back at a 10% interest rate. That's a hefty risk premium compared to Airbnb's less corona-challenged tech peers — __[Slack](https://robinhood.com/stocks/WORK)__ also raised $$$ via debt, but with a tinier 0.5% interest. 

- __Last  week, on the Real Housewives of OPEC…__ Oil prices have been tanking on near-zero travel demand. A month ago, oil took its [biggest plunge](https://snacks.robinhood.com/newsletters/2yAve6xSRhLRA5umV930FV/articles/58PLs0oCRQ6EX1n9oXxhoN/) since 1991 on a reality-show worthy spat between Saudi Arabia and Russia (they both jacked up production and flooded the market with oil). *Last week*, OPEC (13 countries led by Saudi Arabia) and OPEC+ (not a streaming service — a group of 10 other countries led by Russia) agreed to a big production cut of about 23% to bring prices back up. This all goes to show that companies like __[Exxon](https://robinhood.com/stocks/XOM)__ and __[Chevron](https://robinhood.com/stocks/CVX)__, whose oil profits depend on oil prices, have little control over their performance — the OPEC+ gang is in charge. 

Lows

...and who's down

👫 Apple + Google = COVID-19 Tracking Team 

__How many letters in an economic recovery?...__ Apparently, four. We know the economy has tanked since February — the COVID-19 pandemic spelled an abrupt end for the [longest](https://www.cnbc.com/2020/04/08/coronavirus-recession-is-unlike-any-economic-downturn-in-us-history.html) economic expansion in US history. Now economists are sifting through alphabet soup to determine what shape a *recovery* from this looming recession will take. The four main contenders: 

- __V Shape:__ A quick and dramatic decline (check), followed by an equally quick recovery (not check). The economy needs to reopen ASAP if we want this best-case scenario to happen — and we may already be too late.
- __U Shape:__ More gradual than  V shape — the economy finds a bottom and stays there for a while (up to [2 years](https://www.cnbc.com/2020/04/07/jim-cramer-expect-gradual-u-shape-economic-rebound-from-coronavirus.html) before recovering). [Most](https://www.investopedia.com/terms/u/u-shaped-recovery.asp) recessions since 1945 have been U shaped. 
- __W Shape:__ AKA, a "double-dip" recession. This would happen if, after a V recovery, we have another big outbreak and the economy has to shut down again. 
- __L Shape:__ Worst-case scenario — more like a non-recovery. A steep decline followed by a long stay at the bottom (could take up to 10 years to recover). That's the (depressing) letter [Barclays](https://www.cnbc.com/2020/04/08/stock-market-today-live.html) bank just highlighted.

__Which one will it be?...__ It depends on how long the economy is shut down for. And that largely depends on how quickly we can get the virus under control. Each day the economy is closed means more unemployment and more business losses — so recovery time increases daily.





"_I found an L, Woody... Oh, that's the bad one?_"

Recover

__The Multiplier Effect is a powerful thing...__  Your spending (or lack thereof) = someone else's income (or lack thereof):

- You spend $50 on a jean jacket at a local store. The store owners makes $50. 
- They pay their salesperson, then order more jackets from __Levi's__, which in turn pays its own employees and the fabric suppliers. 
- The Levi's employees and the supplier's employees spend that money for their own purchases, and the cycle continues. 
- __Right now the multiplier effect is working against us__ — the longer that's true, the longer a recovery will take. 

Which (alphabetic) shape will an economic recovery take? Depends on how long we're shut for

__The risky table is at the back...__ __Airbnb__ and __[Slack](https://robinhood.com/stocks/WORK)__ just sealed 2 nearly identical deals, with two *very different* deal terms. Slack's office messaging, email-crushing biz model is thriving in the corona-conomy. Airbnb's travel-centric pad rental biz? Not so much. Despite these differences, they both decided it was time to borrow some cash. 

- __Slack offered__ [$750M](https://www.cnbc.com/2020/04/07/stocks-making-the-biggest-moves-in-the-premarket-kraft-heinz-3m-slack-and-more.html) in debt, which it'll have to pay back in 2025 (either in cash, shares, or a combo). Slack will only have to pay __0.5% interest__ on the loan. 
- __Airbnb offered__ [$1B](https://therealdeal.com/2020/04/08/airbnbs-1b-fundraise-comes-with-a-hefty-valuation-cut/) for similar debt, but it'll have to pay investors back at a whopping more than __10% interest__ rate.

__What's your risk premium?...__ Not a Hinge-appropriate question. Slack is borrowing cash because it's growing (to thrive) — Airbnb is borrowing because it's sinking (to survive). That makes it way more risky. Investors can smell desperation:

- __As bookings plunge and cancellations soar__, Airbnb is refunding guests  and shelling out [$250M](https://www.theverge.com/2020/3/30/21200430/airbnb-cancellation-policy-coronavirus-covid-may-31-pay-hosts) to cover hosts' losses. It projects __sales could fall by [54%](https://www.theinformation.com/articles/airbnb-projects-revenue-could-fall-by-half-this-year)__ this year.
- __So investors demand a 10% premium__ for putting their money at risk with Airbnb, while Slack gets to borrow for way less cost.

"_You're too risky to sit with now_"

__The virus premium is unavoidable...__ for Airbnb, __WeWork__, and any travel/rental company unable to operate right now. Most are affected by this risk premium, because we're living in risky times. And companies that are faring well in the corona-conomy — like Slack, __Zoom__, and __Netflix__ — can't pat themselves on the back either. They're just lucky that their businesses weren't as affected as others by unforeseeable circumstances. 

Slack's spot at the Wall Street lunch table — Airbnb's not invited (unless it pays for everyone)

🏥 The shape of recovery

__*When you're here, you're family*...__ Olive Garden should probably update its slogan, since all of its dining rooms are closed: *When you're here, you shouldn't be* — or *When you're not here, you're home* (aka, no unlimited breadsticks). Olive Garden parent __[Darden Restaurants](https://robinhood.com/stocks/DRI)__ has seen its same-store sales [plunge](https://www.cnbc.com/2020/04/07/darden-stock-jumps-as-olive-garden-parent-cuts-executive-pay-to-go-sales-skyrocket.html) 39% so far this quarter (and the quarter's not over). Why the long breadstick?

- __100% of its 1.5K eating spaces have been closed__ since mid-March — that includes Olive Gardens, Capital Grilles, and LongHorn Steakhouses. 
- __Olive Garden sales progressively plummeted__ 60%, 65%, and 71% for the last three weeks in March. Darden stock is now worth half its January value.  

__A light at the end of the basket...__ 99% of Olive Gardens *are open* for takeout — and its takeout sales have jumped [142%](https://www.cnbc.com/2020/04/07/darden-stock-jumps-as-olive-garden-parent-cuts-executive-pay-to-go-sales-skyrocket.html). LongHorn Steakhouse's have more than 3X'd. Couple that with news that Darden slashed executives' pay in half *and* that it has $1B in cash on hand — the stock jumped 12% Tuesday.  

_When unlimited breadsticks were possible_

Pick-Up

__We're living in an omnichannel world...__ And Darden is an omnichannel girl. The ability to nimbly service customers both on and offline is critical in the corona-conomy and beyond. If diners can get a satisfactory Olive Garden experience at home, they'll keep shelling out the $$$ even if all the dining rooms are closed. Flexibility to seamlessly jump from in-person to takeout to online-delivery is key — and retailers like Target and J. Crew already do it.

Olive Garden finds a light at the end of an empty breadstick basket

__If the economy is like a car stuck in the garage...__ __[Lear](https://robinhood.com/stocks/LEA)__ is the leather seat in that car — as in $20B/year in car seat sales (or as Lear likes to call them, "your personal docking station"). But car companies aren't making cars right now, so Lear's not making seats. Now it wants to start the engine before the economic car battery dies: 

- __Enter Lear's [Safe Work Playbook](https://playbook.lear.com/Safe%20Work%20Playbook.pdf)__: a 51-page "interactive" PDF that guides companies on how to resume operations when it's safe to open up shop again. It includes recommendations based on CDC guidelines combined with  Lear's global operations experience. 
- __The TLDR:__  Topics include social distance strategies like staggered shifts and lunch breaks, on-site health screenings for employees, disinfection procedures, and factory opening guidelines (like disinfecting it 100% before it opens). 

__How to slowly (and safely) get people back to work...__  Lear thinks we needed to start planning this yesterday, and it wants to be the influencer leading this shift. Not only would it get to start making car seats again, but also it would be responsible for influencing operations in an economic recovery. That "first-mover" title might not be too hard to snag — most companies have refrained from speaking publicly about a need to return to work.



_Trying to turn the economic engine back on_

Return

__Planning for a return to normalcy is key...__ In private conversations, top CEOs [reportedly](https://www.axios.com/coronavirus-shutdown-top-ceos-economic-warning-5e2ea882-1883-4a1f-855c-0c74b281d4f3.html) pleaded with  President Trump to start planning a phased return to work (as soon as May). They fear a catastrophic amount of large and small businesses will fail if we don't slowly re-open (aka, point of no recovery). But critical health concerns and a rise in cases make people reluctant to think that far ahead. Still, planning now is crucial as outbreaks begin to [peak](https://covid19.healthdata.org/united-states-of-america) across the US and the [world](https://www.theguardian.com/world/2020/apr/06/europes-coronavirus-numbers-offer-hope-as-us-enters-peak-of-terrible-pandemic). 

Lear plans for how to (safely) turn the economic car back on — it's one of the firsts

__Like LinkedIn, but for gigs...__ The largest segment of __[Uber](https://robinhood.com/stocks/UBER)__'s business — rides — has grinded to a near-total halt. Riders and drivers fear catching germs (plus there's not many places to Uber to anyway). Drivers have lost as much as [80%](https://www.reuters.com/article/us-health-coronavirus-usa-uber/uber-connects-out-of-work-u-s-ride-hail-drivers-to-delivery-production-jobs-idUSKBN21O1LV) of their income, and many have stopped working entirely. But Uber found a way to work what it's got:

- __People:__ Uber’s got an army of millions of workers who already have the app downloaded on their phones. They're just not using it right now. 
- __Tech:__ Over the years, Uber has slowly worked toward a 1-stop app where users can access all its services on one platform. 
- __Opportunity:__ Enter __[Work Hub](https://www.uber.com/blog/work-hub/)__. Uber is listing gig opportunities that aren't just for itself — __Domino's__, __FedEx__, __Target__, and __Walgreens__ opportunities right in Uber's app. It's also offering easy access and visibility for gigs on Uber Eats, Uber Works, and Uber Freight (all in one hub).

__Getting a job has never seemed harder...__ Uber's dream is to be the ultimate connector of the gig economy. In October it launched Uber Works, which connects people to shift jobs and helps companies fill staffing gaps. Now, with a massive unemployment rate and surging delivery demand, Uber's odds of success in this space have increased.


_Found this gig on Uber WorkHub_

Hire

__It's a win-win-win situation...__ Cash-strapped drivers get easy access to jobs, worker-needy companies get access to workers, and Uber gets a major adoption boost for its gig-connecting platform. Uber *will not* receive payment from companies for posting jobs — but it can monetize in the future after users get hooked. For now, it'll retain drivers while rides are down, and potentially attract *new workers* on a diversity of gigs. One day, WorkHub might even be Uber's profit puppy.

Uber becomes the unofficial job board for the whole gig economy

🍝 Olive Garden's light at the end of the breadstick

__Got that "finfluencer" clout...__ That's *financial influencer* (not to be confused with the much more prevalent *fake influencer*). And Warren Buffett's got a fat blue check mark as one of the biggest finfluencers on earth — investors closely stalk Warren's money moves. Now, his famous [holding company](https://learn.robinhood.com/articles/682uX0w1nPHFh1ckCvPwD3/what-is-a-conglomerate/) __[Berkshire Hathaway](https://robinhood.com/stocks/BRK.B)__ just sold:

- __13M__ shares of __[Delta](https://robinhood.com/stocks/DAL)__ for $314M, or 18% of Berkshire's Delta investment. Delta stock [plunged](https://markets.businessinsider.com/news/stocks/delta-stock-plunges-warren-buffett-berkshire-hathaway-slash-stake-airlines-2020-4-1029068065) 7% on the news. 
- __2.3M__ shares of __[Southwest](https://robinhood.com/stocks/LUV)__ for $74M, or 4% of Berkshire's total Southwest investment. The stock fell [5%](https://www.foxbusiness.com/markets/coronavirus-warren-buffett-sells-delta-southwest-airlines).

__Buffett's style is eyeglasses, khakis...__ and a long-term investment approach that involves "buying the dip." But fundamental facts around airlines have changed with the corona-conomy. Even though the government stands ready to bail them out (with strings attached), airlines are footing massive expenses while earning near 0 sales. Get these stats:

- __TSA reported a [95% drop](https://www.tsa.gov/coronavirus/passenger-throughput)__ in travelers on Sunday compared to a year ago (122K vs 2.5M). 
- __Delta projects a [90% sales drop](https://www.barrons.com/news/delta-sees-90-drop-in-q2-revenues-due-to-virus-01585949408?tesla=y)__ for the quarter — CEO Ed Bastian said the airline is losing over __$60M__ in cash every day and "we still haven't seen the bottom." 
-  __Airlines could lose up to [$115B](https://www.forbes.com/sites/marisagarcia/2020/04/06/airlines-could-lose-up-to-115b-in-international-passenger-revenue-icao/#6fa5bfc64839)__ in revenue for the first half of 2020, as [93%](https://www.pewresearch.org/fact-tank/2020/04/01/more-than-nine-in-ten-people-worldwide-live-in-countries-with-travel-restrictions-amid-covid-19/) of people worldwide are living in countries with travel restrictions.

"_On Wednesdays, we make market moves_"

Influence

__This is a "hedge your losses" move...__ Not a "lost cause" move (for now). Berkshire still owns 82% of its pre-sale Delta holding and 95% of its Southwest one — but now it believes returns on these investments will be underwhelming (or non-existent) for a while. In the short term, Warren can use the proceeds of the sale to make higher-return investments. In the long-term, he's keeping a big old foot in the door hoping airlines will inevitably bounce back. 

Berkshire Hathaway sells a bunch of airline shares — "Smart Money" cuts its losses

__To quote Elton John...__ "I'm still standing." Works well for __[JPMorgan Chase](https://robinhood.com/stocks/JPM)__ CEO Jamie Dimon. He's the last remaining big bank CEO still on the job after the '08 financial crisis. He saw the Lehman Bros bankruptcy in '08, the economic tank in '09, and was there for the 10-year recovery. Now, Dimon is sharing a few [thoughts](https://reports.jpmorganchase.com/investor-relations/2019/ar-ceo-letters.htm) about our current crisis:

- __"A bad recession":__ He [expects](https://www.wsj.com/articles/jpmorgan-ceo-writes-in-shareholder-letter-expecting-a-bad-recession-11586176451) it's coming. Back in January, we learned that JPMorgan had the [most profitable](https://snacks.robinhood.com/newsletters/70SavazX1qdJQfiXf95GQk/articles/1NkipApHwlGIYAtPuVA1Ij) year of any American bank *ever*. Back then the unemployment rate was at a record low — things have deteriorated [dramatically](https://www.washingtonpost.com/business/2020/04/02/jobless-march-coronavirus/). Still, JPM is ready to face the thunder...
- __"A port in a storm":__ What JPM has spent years preparing to be. Based on internal stress tests, the bank would be able to increase lending even if America's [GDP](https://learn.robinhood.com/articles/29d9WQgPq119raQYS1Wm6H/what-is-gross-domestic-product-gdp/) dropped a whopping [35%](https://www.wsj.com/articles/jpmorgan-ceo-writes-in-shareholder-letter-expecting-a-bad-recession-11586176451) for the rest of the year. It won't even consider cutting the dividends it pays to shareholders until a drop greater than that. Other major banks are also [defending](https://www.reuters.com/article/us-usa-banks-stress-tests/u-s-banks-to-defend-dividend-payments-in-stress-tests-ft-idUSKBN21N0QS) dividends.

__Banks have changed since '08...__ They were fundamentally broken during the financial crisis — this time they're not. Intense regulation post-crisis helped banks emerge stronger than ever. They have to keep more cash on hand (to withstand a bad downturn) and abide by stricter lending rules (to avoid risky loans). That means more swagger for Dimon as his bank faces this crisis.

_We'll weather this storm together_

__Banks are like the heart of the economy...__ They pump blood through the entire system and provide us with the cash money we need to perform life's functions. Banks are also crucial for withstanding economic crises: they're the ones doling out the lifeline loans for businesses to survive — and when the crisis is over, they'll be the ones offering the capital for businesses and consumers to rebuild. The fact that JPMorgan — the America's biggest bank — appears strong and healthy is a silver lining. 

JPMorgan's double-crisis CEO finally speaks out

✈️ Buffett's "influencer" moves   

__Fan of the [Maurader's Map](https://www.wizardingworld.com/writing-by-jk-rowling/the-marauders-map) (aka the Snape-Spotter)...__ __[Alphabet](https://robinhood.com/stocks/GOOG)__ has one for the world. The Google parent just released a treasure trove of public health data: Google's [COVID-19 Mobility Report](https://www.google.com/covid19/mobility/) tells us how we're all responding to social distancing orders. Here's (semi-creepily) how:

- __Smartphone, laptop, tablet, smartwatch:__ If you've got bars or a Wifi signal, Google knows where you are. Its apps (Gmail, Maps, YouTube, etc), Search, and Android operating system are all geo-tagging machines.
- __Anonymized, aggregated data:__ If you've turned "Location History" on, then you're in this aggregated dataset. But your name and personal deets are not.

__We're staying home more - but not all of us...__ We told our Snackers on Friday in our 1st live video Zoom conference that the pandemic has blown a giant hole in the US economy ([slides here](http://rbnhd.co/takeaways-apr1)). The data shows why:

- __We're leaving the house less__, especially for non-essential activities — shopping and entertainment visits are down 47% in America. Essential spots like grocery stores/pharmacies are seeing 22% fewer visits while the outdoors (a socially-distant safe space) is also down 19%.
- __Work from home is a luxury__. Work commuting fell by 38%, meaning 62% of us are still making the trek as of March 29th. Work-from-home's not possible for many low-income jobs, and many are still [taking public transit](https://www.nytimes.com/interactive/2020/04/03/us/coronavirus-stay-home-rich-poor.html) (germ hotspot) to get to essential gigs. 

_Should've used Google Maps..._

Collect

__Big Data *can* be good data...__ Personal data is usually monetized by tech companies to target you with ads for a product or politician (and it sometimes gets hacked/stolen). Hence... Big Data gives Big Tech its controversial reputation. But this Mobility Report is Google using its data-collection powers to show officials how to improve their COVID-19 response. Big Data ➡️ insights ➡️ better policies ➡️ better lives. *Using private data for the public good*. This crisis could help tech rebrand.

Big Bad Data rebranding to Big Good Data

- __Quarantinis on (and in) the house...__ Booze is [booming](https://snacks.robinhood.com/newsletters/CWAjzsU7bb4GBjKal0nQE/articles/59wILTe2GxPD0T1euZYm5B/) as Americans stock up for their corona-induced worries. Alcohol sales popped [55%](https://apnews.com/c407ecb931c6c528b4cceb0ecc216f0c) for the week ending March 21. Tequila, gin, and pre-made cocktails were most popular, with sales up 75%. Beer, which has lost shelf-space in fridges for years, jumped 42% — sales of hoardable 24 and 30-packs were up [90%](https://www.cnn.com/2020/04/01/business/alcohol-sales-coronavirus-trnd/index.html). And virtual booze-choosing is thriving: online sales surged [243%](https://apnews.com/c407ecb931c6c528b4cceb0ecc216f0c). Still, keg kings like Bud-maker __[ABInbev](https://robinhood.com/stocks/BUD)__ are [losing out](https://finance.yahoo.com/news/ab-inbev-withdraws-2020-guidance-142202901.html) on massive lost sales from closed restaurants and bars. 

- __Trust me, I'm a (tele) doctor...__ The virtual healthcare trend is accelerating as socially-distanced patients avoid potentially germ-infested offices — adoption of telemedicine has sped up dramatically: March telehealth visits soared [50%](https://www.cnbc.com/2020/04/03/telehealth-visits-could-top-1-billion-in-2020-amid-the-coronavirus-crisis.html), with virtual health-care interactions expected to top [1B](https://www.cnbc.com/2020/04/03/telehealth-visits-could-top-1-billion-in-2020-amid-the-coronavirus-crisis.html) by the end of the year. __[Teladoc](https://robinhood.com/stocks/TDOC)__ reported a [50%](https://www.nasdaq.com/articles/teladoc-health-reports-50-spike-in-daily-patient-visits-2020-03-16) jump in daily visits, with 15K video requests per day. TBD whether the telehealth trend will hold once the crisis is over. 



- __Pour one out...__ for __[Luckin Coffee](https://robinhood.com/stocks/LK)__ — the "Starbucks of China" announced one very un-Starbucks-like difference: its 2019 sales numbers were totally [made up](https://snacks.robinhood.com/newsletters/1cblBuDtgtokNEYEzCvie4/articles/1krUG6u9IaHRyq4K1dx9Fo). Luckin had reported its sales for the first 9 months of 2019 to be $413M — but an internal investigation revealed that $310M of those *never happened* (aka, #fakebrews). Luckin stock plunged nearly 80% the day the news broke. Luckin apologized "[sincerely](https://www.reuters.com/article/us-luckin-investigation/chinas-luckin-coffee-says-business-will-continue-amid-financial-fraud-probe-idUSKBN21N08T)" for the scandal, and said its caffeinated biz will continue as usual during the fraud investigation. 

- __WeWork (from home)...__ After a failed IPO and a scandalous CEO-exit, __WeWork__ has new troubles in its [beer-on-tap-less](https://www.theguardian.com/business/2020/jan/30/wework-ends-free-beer-wine-north-american-sites) offices: its largest investor, __[SoftBank](https://robinhood.com/stocks/SFTBY)__, just [backed out](https://www.cnbc.com/2020/04/02/softbank-terminates-3-billion-wework-tender-offer.html) of an offer to buy $3B in additional shares. We's co-founder, Adam Neumann, would've snatched almost [$1B](https://techcrunch.com/2020/04/02/softbank-terminates-3bn-tender-offer-for-wework-shares/) from the deal — but other [employees](https://finance.yahoo.com/news/wework-staff-planned-lives-around-235311101.html) would also have benefitted (they can take some solace that Neumann's not walking away a billionaire anymore). Now WeWork won't get [$1.1B](https://www.cnbc.com/2020/04/02/softbank-terminates-3-billion-wework-tender-offer.html) in extra debt financing that's needed right now. After all, its whole biz is renting office space, but so many of its clients are WFH...

🎭 Big Tech's big rebrand 

__Venti-sized bad karma...__ In under 3 years, Chinese-owned __[Luckin' Coffee](https://robinhood.com/stocks/LK)__ managed to beat out __[Starbucks](https://robinhood.com/stocks/SBUX)__ for the role of "Biggest Coffee Chain in China." With around 4.5K sleek shops, scooter delivery, and adorable coffee cups featuring deer silhouettes, what could go wrong? On Thursday, Luckin __lost over 75% of its value__, nearly __$5B__. That sort of thing tends to happen when investors find out *your sales numbers are [fake](https://www.cnbc.com/2020/04/02/luckin-coffee-stock-plummets-after-investigation-finds-coo-fabricated-sales.html)*.

- __So 2019 was all a lie?__ Not a text from your ex. An internal investigation into Luckin' revealed that its COO made up the company's 2019 sales numbers. Creativity in business is great — not so awesome vis-a-vis financial numbers.
- __$413M:__ What Luckin' reported as its net sales for the first 9 months of 2019. 
- __$310M:__ The [difference](https://www.cnbc.com/2020/04/02/luckin-coffee-stock-plummets-after-investigation-finds-coo-fabricated-sales.html) between the lie and the truth. If the investigation's findings are correct, Luckin' actually __made only $103M__ in sales — the rest was fake brews. 

__The red flags were there...__ and some spotted them early, thanks to an anonymous [89-page report](https://drive.google.com/file/d/1LKOYMpXVo1ssbWQx8j4G3-strg6mpQ7F/view) with on-the-ground research from whistleblowers that reads like a John le Carré spy novel:

- __1.5K employees were secretly mobilized__ to monitor the volume of sales through 25,843 receipts and 11,260 hours of video footage.
- "__The Smoking Guns__" (the report's own words) = individual store sales were inflated by at least 88% during the end of 2019 (and fudged for the whole year)
- "__The Red Flags__" (*also* their words) = Luckin managers have already sold half their Luckin stock — and the CMO was previously sentenced to 18 months in prison.
- __Back in Jan,__ short-seller __Muddy Waters Research__ [said](https://twitter.com/muddywatersre/status/1223274746017722371?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed&ref_url=https%3A%2F%2Fwww.cnbc.com%2F2020%2F04%2F02%2Fluckin-coffee-stock-plummets-after-investigation-finds-coo-fabricated-sales.html) it had bet against Luckin' stock after receiving the page-turner report, which it believed was credible. 

"_Doesn't taste like decaf" — "Someone's fudging the beans_"

__Bad national PR...__ This is a bad look for Chinese public companies, which some investors were already skeptical of because of China's reputation for [unreliable](https://www.stlouisfed.org/publications/regional-economist/second-quarter-2017/chinas-economic-data-an-accurate-reflection-or-just-smoke-and-mirrors) economic data. But Luckin' IPO'd on the Nasdaq, is not gov-owned, and is regulated by the SEC, so this spill was more of a surprise.

Luckin' Coffee plunges 76% because it made up its sales number (#fakebrews)

__Drop the Juul (investment)...__ __[Altria](https://robinhood.com/stocks/MO)__ is the tobacco-giant behind Marlboro cigarettes. Over the years, it's watched smokers trade tobacco-filled paper for vape-juice-filled metal. So in 2018, it dropped __$12.8B__ for a __35% stake__ in the undisputed e-cig leader: __Juul__. That  became a major liability as middle-schoolers got hooked on mango-flavored vapes — Altria lost [billions](https://snacks.robinhood.com/newsletters/1BeoZk2sScdAg5tPsdxKa9/articles/3kGA0PqkX7vSCvs7cFxaPP). But now, it's got another big Juul-related problem:


- __Key Rule of Capitalism:__ Companies compete against each other to put out the best product at the lowest price (instead of colluding to undercut customers and maximize profits). 
-  __The Federal Trade Commission__ is like the referee of capitalism. And it's alleging that Altria __[agreed not to compete](https://www.wsj.com/articles/u-s-sues-to-unwind-altrias-12-8-billion-investment-in-juul-11585789327)__ with Juul in return for the 35% ownership interest.
-  __Now the FTC is suing Altria__ for violating federal anti-trust laws, and could force Altria to undo the $12.8B investment. Altria is "[disappointed](https://www.wsj.com/articles/u-s-sues-to-unwind-altrias-12-8-billion-investment-in-juul-11585789327)" with the decision. 

__Here's the extra fishy part...__ Two weeks before announcing its investment in Juul, Altria [shut down](https://www.wsj.com/articles/u-s-sues-to-unwind-altrias-12-8-billion-investment-in-juul-11585789327) *its own* e-cig biz. Then it started putting Juul coupons on Marlboro packs, and  giving Juul the shelf-space that its (less popular, now dead) Altria e-cigs had. This pretty much killed any other real e-cig competition, according to the FTC. But...







_Prepping for another Juul lawsuit_

Smoke

__Collusion is kind of hard to prove...__ Companies know that it's a *no-no*, so they tend to avoid leaving a paper trail. The FTC believes it has the facts to show that Altria and Juul "turned from competitors into [collaborators](https://www.theverge.com/2020/4/1/21203670/ftc-sues-to-unwind-altrias-12-8-billion-investment-in-juul)." But it's unlikely that this "*hey, let's collab*!" text was sent over iMessage or Insta DM. Altria says the FTC "misunderstood the facts" and that it will defend its Juul investment during the lawsuit — and it might actually win. 

Altria sued by the FTC for (allegedly) colluding with Juul to rule the vape market

Luckin Coffee ⬇️ 80% in 5 minutes

__That classic awkward moment when...__ you realize you're not eligible for a much-needed gov bailout because you incorporated in Panama to pay lower wages/taxes. Few industries are struggling more than the cruise industry, and nearly no company has struggled as much as __[Carnival](https://robinhood.com/stocks/CCL)__ (with its *multiple* coronavirus-infected cruise ships). Good thing the $2T govt stimulus includes $500B for sinking corporations, right? Not for Carnival:

- __For a company to qualify__ for the $$$ it has to be "[created or organized](https://www.nbcnews.com/business/business-news/most-cruise-lines-don-t-pay-taxes-u-s-just-n1172496) in the US.” But Carnival is incorporated in Panama, which means it [avoids paying](https://www.theverge.com/2020/3/23/21187076/cruise-line-industry-bailout-trump-coronavirus-us-companies-tax) almost any federal income tax.
- __Many of the largest cruise operators__ are incorporated offshore: __[Royal Caribbean](https://robinhood.com/stocks/RCL)__ chose Liberia, and __[Norwegian](https://robinhood.com/stocks/NCLH)__ opted for Bermuda. They can avoid paying the US minimum wage to most employees, [many](https://www.businessinsider.com/why-cruise-ship-workers-take-brutal-jobs-2018-11) of whom aren't American citizens. 


__Carnival is in an (especially) bad situation...__ It has no customers for the foreseeable future, but also has huge debt payments to make. *And* — it likely won't be eligible for  bailout money. 

- __So it's trying to borrow billions__, and tapping almost all of its __[$3B credit line](https://www.barrons.com/articles/cruise-operator-carnival-3-billion-credit-facility-coronavirus-51584372413)__.
- __It's also selling $3B in bonds__. Carnival knows investors will think it's risky, so it's offering to pay a whopping 12.5% in interest to make the loan attractive.
-  __If Carnival can't pay them back__ when the bonds mature in 3 years, investors get to seize its massive ships as collateral. No one has the garage space for that.



_Carnival trying to survive a boat-load of debt_

Sink

__Being offshore hurts during times like these...__ For years, Carnival has been reaping the extra profits from being incorporated outside the US. But now, with its business virtually non-existent, it could really use a little help from Uncle Sam. It likely won't be granted a slice of the $500B rescue pie. So it's forced to rack up a very risky amount of debt, hoping to survive until things return to normal.

Carnival Cruises isn't bailout-eligible, so it's making some desperate money moves

__It’s a hard (drinks) life, for us...__ Alcoholic beverage sales are booming as people hoard to drink away their corona-induced worries. FYI: The World Health Org wants us to know that alcohol is an "[unhelpful](https://www.independent.co.uk/news/health/coronavirus-alcohol-world-health-organisation-drugs-addiction-mental-health-lockdown-a9428546.html) coping strategy" for this pandemic. Sounds like no one was listening:

- __Alcohol sales in the US soared [55%](https://www.cnn.com/2020/04/01/business/alcohol-sales-coronavirus-trnd/index.html)__ during the 3rd week of March (compared to the same week a year ago).  Pennsylvanians especially [scrambled](https://www.wtae.com/article/pennsylvania-resumes-online-liquor-sales/32010581#) to stock up after the state closed its liquor stores (some even make the trek to [Delaware](https://www.delawareonline.com/story/news/2020/03/17/pa-liquor-stores-close-neighbors-flood-delaware-locations/5067936002/)).  
- __Sales of ready-made cocktails spiked 106%__ in the same week, taking the keg for most in-demand alcoholic beverages (think hard lemonade, canned Vodka Spritz). 

__Surprisingly, beer sales also jumped...__ The foamy classic has been losing shelf space in American fridges for years now. But sales of 24 and 30-packs of mainstream brews like Bud Light __soared around [90%](https://www.cnn.com/2020/04/01/business/alcohol-sales-coronavirus-trnd/index.html)__ compared to last year. 

- __Analysts [say](https://www.cnn.com/2020/04/01/business/alcohol-sales-coronavirus-trnd/index.html) craft beers won't be so lucky__ — roughly 70% of craft beer sales come from taprooms/bars (which were almost all forced to close). 
- __No one's stocking up on fancy $9-each bottles__ of Craft Red Gooseneck 8.7% ABV IPA. Consumers can't afford that right now, and retailers can more easily stock shelves with cheaper brands (like Bud) in large quantities. 



"_But it's my last bottle of Bud..._"

Drink

__Only the "essentials" are winning...__ Grocery stores are considered essential services in all states, and liquor stores are still considered essential in most. But restaurants and bars — as well as the industries (like craft beer) that largely supply them — are losing out on major income from their biggest profit puppy: alcohol.

Alcohol sales are popping as people stockpile booze (but non-essentials are losing out)

__He's a Kilar Queen...__ of the streaming screen. Jason Kilar, the founding CEO of __Hulu__, just got hired by __WarnerMedia__ to be its [new CEO](https://www.cnn.com/2020/04/01/media/warnermedia-new-ceo-jason-kilar/) — juuust in time for the May launch of its new streaming service, HBOMax:

- __Warner is a big ol' confusing media giant:__ It owns Warner Bros, HBO, CNN, TNT and a bunch of other media-related subdivisions. 
- __And the plot thickens...__ Warner itself is owned by __[AT&T](https://robinhood.com/stocks/T)__, which acquired Time Warner (now WarnerMedia) in 2018. Like competitors __Verizon__ and __T-Mobile__, AT&T has been trying to gain more of a foothold in the streaming world. 

__It's on...__ Between the impressively fast growth of Disney+, the pending launches of Peacock and Quibi, and the fact that everyone is stuck at home streaming anything with words/video on Netflix: *the streaming wars are heating up big time*. So is competition for top streaming talent:

- __Warner's decision to make Kilar CEO__ means that HBOMax — and streaming in general — is a top priority for the company's future. Since streaming is the future (present?) of TV, it makes sense to bring on a top streaming pioneer to lead the charge. 
- __Kilar's streaming-laden resume is Warner's dream:__ He spent 9 years at __Amazon__ before founding Hulu in 2007, spent [6 years](https://www.cnn.com/2020/04/01/media/warnermedia-new-ceo-jason-kilar/) leading Hulu, then served on the boards of a bunch of media companies before founding his own video startup (which sold to Verizon).

"_Yes, much streaming experience_"

__Old School media needs New School talent...__ Warner's got the cable and movie OGs under its belt, but it hasn't conquered streaming yet. That's why it's bringing on a CEO with a strong rep in both the media *and* tech circles (media + techy = New School media). Now Warner hopes it'll be better positioned to succeed in the competitive streaming space — with its new profit-puppy hopeful, HBOMax. 

WarnerMedia snags Hulu founder as CEO — right on time for HBOMax launch

🍺 Booze sales jump (for some) 

__This is not a drill...__ __[Amazon](https://robinhood.com/stocks/AMZN)__ is going through an ultimate, real-life stress test right now. The delivery giant is coming in especially clutch during these stuck-at-home months (feels like an era). And it's feeling the stress from from both sides: 


- __Overwhelming demand from customers__ is straining its supply chain and getting Prime subscribers riled up on delayed orders + unavailable products (try ordering Lysol wipes). Amazon's site traffic was __[up 32%](https://www.wsj.com/articles/amazon-struggles-to-find-its-coronavirus-footing-its-a-time-of-great-stress-11585664987)__ from last year with almost 640M weekly visits. From Feb 20-Mar 23, Home/Kitchen sales alone surged __[1,861%](https://www.wsj.com/articles/amazon-struggles-to-find-its-coronavirus-footing-its-a-time-of-great-stress-11585664987)__.
- __Worker unrest is exacerbating the stress__, as workers demand better pay and health protections for dangerous conditions. As many as [1/2 of workers](https://www.wsj.com/articles/amazon-struggles-to-find-its-coronavirus-footing-its-a-time-of-great-stress-11585664987) haven't shown up to jobs at some warehouses because of lacking masks/sanitizers. On Monday, warehouse workers on Staten Island staged a __[walk out](https://www.usatoday.com/story/money/business/2020/03/31/coronavirus-workplace-conditions-spur-protests-whole-foods-amazon/5093570002/)__ (and Amazon [fired](https://www.marketwatch.com/story/amazon-fires-organizer-of-strike-at-staten-island-warehouse-2020-03-30) the lead organizer). Yesterday, some of Amazon's Whole Foods employees staged a "__[sick out](https://www.usatoday.com/story/money/business/2020/03/31/coronavirus-workplace-conditions-spur-protests-whole-foods-amazon/5093570002/)__," demanding hazard pay.

__Safety vs. demand...__ The more demand there is from customers, the more Amazon really *needs* its workers to be ready, able and willing to work. 

- __But this overwhelming demand comes with stressful situations__ for workers, like reports of working overtime in close contact without adequate health protections. 
- __"Essential" workplaces are all struggling__ with some form of this, as they juggle supplying essentials to the stuck-at-home masses with ensuring worker safety. 




"_I repeat, this is not a drill"_

Strike

__Amazon can get through this — little guys might not...__ Despite the strain, Amazon's main businesses are thriving right now — AWS cloud computing is booming on WFH demand and orders on Amazon.com are matching holiday season levels. So *it can swing making changes to adapt*:

- It's [hiring 100K](https://blog.aboutamazon.com/operations/amazon-opening-100000-new-roles) __new workers__ (even Lyft [told its workers](https://www.theverge.com/2020/3/27/21197699/lyft-amazon-coronavirus-ridership-decline-job-referral-warehouse-grocery-delivery) to go work at Amazon), offering [paid sick leave](https://www.theverge.com/2020/3/11/21175538/amazon-coronavirus-paid-sick-leave-all-employees-relief-fund) to possibly infected workers, giving [paid time off](https://www.wsj.com/articles/amazon-struggles-to-find-its-coronavirus-footing-its-a-time-of-great-stress-11585664987) to part-time workers,  and [raising hourly wages](https://thehill.com/policy/finance/487882-amazon-plans-to-hire-100k-additional-warehouse-and-delivery-workers-raise-pay) for all its delivery/fulfillment workers by $2 through April.
- __These costs add up__, but Amazon can stomach them to save its biz — smaller companies might not be so lucky.


Amazon's ultimate stress test causes cracks from both sides: workers and customers

__With great power, comes great responsibility...__ Video conferencing service __[Zoom](https://robinhood.com/stocks/ZM)__ has skyrocketed in popularity, riding the wave of the virus-induced mass WFH situation. But even the most popular video conferencing app in the school has issues (and more than a few bullies) — we'll get to those later:

- __Zoom added [more users](https://www.cnbc.com/2020/02/26/zoom-has-added-more-users-so-far-this-year-than-in-2019-bernstein.html)__ in the first 2 months of this year than in all of 2019, racking up 2.2M new monthly users by the end of February. 
- __Now it's taken the Homecoming crown__ for the world's [most popular](https://www.vox.com/recode/2020/3/31/21201019/zoom-coronavirus-privacy-hacks) iPhone and Android app.
- __Zoom stock is also making friends__ — its share price has more than doubled since late January while the rest of the market has dropped over 20%. 

__But Zoom has some (not so hidden) vulnerabilities...__ And Zoom's privacy fails are getting more heat now that it's really relevant:

- __Last year:__ Zoom had a security flaw that let [hackers hijack](https://www.vox.com/recode/2019/7/9/20687689/zoom-mac-vulnerability-medium-jonathan-leitschuh-camera) your webcam. 
- __Last week:__ Vice reported that Zoom was [sending users'](https://www.vice.com/en_us/article/k7e599/zoom-ios-app-sends-data-to-facebook-even-if-you-dont-have-a-facebook-account) data to Facebook, without really telling them about it, even if they didn't have a Facebook account (sketch). 
- __Now:__ "Zoombombing" incidents — professional Zoom meetings get crashed by, say, a naked person shouting profanities. They're surging.
- __So:__ NY's Attorney General just sent Zoom a letter saying her office was "[concerned](https://www.vox.com/recode/2020/3/31/21201019/zoom-coronavirus-privacy-hacks)" about this seemingly lax security. 

"_Can we drop the Zoombomb yet?_"

Conference

__Zoom should've overreacted to privacy concerns...__ but it didn't. Privacy is Big Tech's #1 threat right now — Zoom is sort of newly initiated to the Big Tech Club, so it doesn't seem to be as sensitive to this. Privacy ambiguities don't fly for big services used by millions of people ([Mark Zuckerberg](https://www.youtube.com/watch?v=stXgn2iZAAY) can tell you all about this). Zoom didn't show investors a real effort to hunker down on privacy — its stock is down 8% over the week. 