__Well, that was unexpected...__ __Ant Group__ is the Chinese fintech giant that was [*supposed*](https://www.cnbc.com/2020/11/03/ant-group-ipo-in-shanghai-suspended.html) to go public  tomorrow in Shanghai and Hong Kong. Think of Ant's Alipay app as a Financial Franken-App: it offers every money service imaginable — from payments to loans to insurance and investing (*all in one*).

- __Alipay has over 1B users__, making it the biggest financial app in the world. That's 3X the number of __[Paypal](https://robinhood.com/stocks/PYPL)__ users and 3X the US population.
- __Ant was on track to raise over $34B__ in its IPO, which would make it the largest ever. *Then things got weird...*
- __The IPO was suspended__ due to vague regulatory reasons that disqualified it from listing on the Chinese market.

__*Can I get a refund?*...__ Ant had already raised big money  from institutional investors who subscribed to its IPO. These VIPs — like mutual funds and brokerages — are the ones who actually *buy* the stock "initially" during its Initial Public Offering (before it's available to the rest of us). If the stock price goes up when shares hit the market, the VIPs make money. Ant [apologized](https://www.reuters.com/article/ant-group-ipo-int/china-slams-the-brakes-on-ant-groups-37-billion-listing-idUSKBN27J1MY) to investors and plans to return the $$$ it collected.

_Ant Group, you shall not pass_

Stop

__Politics is a market risk...__ We don't really know why regulators squashed Ant, but the Chinese government's controlling-ness is [likely](https://www.bloomberg.com/news/articles/2020-11-02/jack-ma-summoned-by-china-financial-regulators-on-eve-of-ant-ipo?sref=q3KSFp38) behind it.  __[Alibaba](https://robinhood.com/stocks/BABA)__ (aka: the Amazon of China) saw its stock drop 8% yesterday because it owns 33% of Ant. In its *own* IPO papers, Alibaba said that changes in the Chinese government's policies could hurt its biz. That seems to be proving true for Ant, too.


Ant, the biggest IPO ever, shockingly gets squashed last-minute

__Nailed it with the name change...__ A one-syllable word, and the VC cash comes flooding in. __Reef__, formerly called ParkJockey, just [raised](https://techcrunch.com/2020/11/02/reef-technology-raises-1-billion-from-softbank-and-others-to-remake-parking-lots/) an eye-popping $700M to turn underused parking lots into “neighborhood hubs.” Reef leases and manages lots, providing the hardware, software, and electricity needed to transform them into something... less boring.

- __Proximity-as-a-service:__ Reef wants to bring delivery-only kitchens, health clinics, and retail pop-ups to your neighborhood lot.
- __It's *kind of* like WeWork,__ minus the kombucha on tap and the controversy. Makes sense (or not at all) that WeWork investor __[SoftBank](https://robinhood.com/stocks/SFTBY)__ led this deal.

__If you can dream it...__ *you can disrupt it.* Reef [started](https://thespoon.tech/reef-technology-raises-700m-to-reinvent-the-neighborhood-including-ghost-kitchens/) as a "disruptor of parking lots" (whoa) with its management business. Now it's a real estate play with 4.8K locations, and plans to grow to 10K with the fresh $$$. Its big focus:

- __Ghost kitchens:__ Restaurants like BurgerFi are using trailers/shipping containers in Reef's lots to dole out deliveries faster.
- __Reef has over 100 kitchens__ in North America, and expects they'll make up “a significant part” of non-parking sales.


WePark

__Mobility is power...__ You've probably noticed more "For Lease" signs on Main Street. Brick-and-mortar shops are sadly shuttering because they can't afford rent when sales are barely coming in.  Over 100K restaurants have [closed](https://restaurant.org/news/pressroom/press-releases/100000-restaurants-closed-six-months-into-pandemic) since the first COVID shutdowns. Mobile rental units *could* give restaurants the flexibility to stay afloat and test digital concepts — without the burden of running a full-on storefront.

Reef, the WeWork of parking lots, raises $700M to dish out mobile kitchens 

Dow Jones

S&P 500

Nasdaq

Bitcoin

 🐜  The biggest IPO ever: squashed

__*I'm a croc-star, not a doctor*...__ __[Crocs](https://robinhood.com/stocks/CROX)__ has evolved from "the ugly shoe" company to the celebrity shoe company. Since 2018, Crocs has collabed with stars like Post Malone, Luke Combs, and Korean rapper Psy (Gangnam Style). The KFC x Crocs partnership [proved](https://www.businessinsider.com/kfc-crocs-sold-out-less-than-half-an-hour-after-launch-2020-7) that the biggest star of all is a fried chicken wing. Now, Crocs is sticking even more celeb charms in its clog holes: 

- __Justin Bieber:__ Bieber's yellow clogs [reportedly](https://6abc.com/justin-bieber-crocs-shoes-fashion-launches-design/7018173/#:~:text=The%20popular%20crocs%20even%20crashed%20the%20website.&text=NEW%20YORK%20%2D%2D%20People%20put,appeared%20to%20crash%20the%20website) crashed the Crocs site when they dropped (still sold out). Crocs stock jumped 11% when Biebs teased the collab on IG.
- __Bad Bunny:__ The Puerto Rican rapper's $60 glow-in-the-dark Crocs [sold out](https://www.insider.com/bad-bunny-crocs-glow-in-the-dark-jibbitz-charms-2020-9) in less than 30 minutes. He Like It Like That. 

__Ariana, Selena, my Visa...__ These Bieber-faced collabs have paid off. Last quarter, Crocs' sales rose 16% from last year to a record $362M, and profit nearly *doubled*. The greatest growth was in the Americas  — but sales also spiked in Europe, the Croc-shaming capital of the world.


_He's a croc-star, not a doctor_

Biebs

__Functional is the new fashionable...__ during this COVID anti-fashion moment. From bulky sweats to fuzzy socks, whatever's comfy for Zoom'ing and grabbing the mail wins. That's why Crocs sales are up 48% this year, while US footwear sales are *down* 20%, [according](https://www.nytimes.com/2020/09/29/style/bad-bunny-crocs.html) to a research analyst. Crocs stock (fun to say) has nearly 5X'd in value since the market tanked in March. As far as we know, it's the only pure-play ugly shoe stock. 

Crocs is a thriving Belieber thanks to celebrity-studded collabs

__Nespress yourself...__ As America's largest food company, __[Nestlé](https://robinhood.com/stocks/NSRGY)__ makes everything from Hot Pockets to Kit Kats — and anything that begins with "Nes" (presso, tea, quik). Now, Nestlé's expressing its love for all things edible with a meal delivery purchase:

- __Nestlé USA is buying Freshly__ for up to $1.5B. The healthy meal subscription startup sends you buttered salmon and kale to heat up between Zoom calls. 
- __Freshly ships more than 1M meals per week__ across 48 states, and expects $430M in sales for 2020. But don't expect any Nesquik boxes...

__*Say it again*...__ Freshly’s CEO [wants](https://techcrunch.com/2020/10/30/nestle-acquires-freshly/) to make it *veryyy* clear that Nestlé *won't* be a cook in its kitchen: “Our meals will not be changing...there are no plans to change ingredients or integrate Nestlé products into Freshly meals” (burn). Freshly will run as a standalone biz, and pricing won't change.  

- __What Nestlé gets:__ A promising company in a fast-growing, pandemic-friendly industry.
- __What Freshly gets:__ $950M, with possibly $550M extra. Freshly can scale faster with Nestlé cash — it's already planning to triple its menu offerings with the fresh $$$. 


Heat

__Big shots can afford to be late...__ Nestlé was an early investor in Freshly — in 2017 it snatched a 16% stake to "evaluate" the up-and-coming meal delivery market. Now Nestlé has decided it's safe to go all in (you think?). Massive companies can afford to be late to trends because they can buy *already*-successful companies, skipping the time and risk needed to build from scratch.

Nestlé shows up late to buy meal delivery startup Freshly for up to $1.5B

🎵  Crocs' popstar moment 

__Thank you for your ad-tention...__ Tech giant’s ad sales bounced back  last quarter as things "normalized" (*by 2020 standards*). When lockdowns started, brands slashed spend because that Kylie Lip Kit ad is worthless when your biggest outing is taking out the trash (in a mask). This summer, brands slowed/paused spend in reaction to US civil unrest. But lately, they’ve unleashed an ad-avalanche:

- __[Google](https://robinhood.com/stocks/GOOG)__ got its redemption. After its 1st-ever sales decline in the previous quarter, ad sales jumped 10% from last year to *$37B*. YouTube was the star, with ads up 32% (more skipping for us).
- __[Facebook](https://robinhood.com/stocks/FB):__ The ad boycott didn't dent sales, which popped 22% from last year to *$21.4B*. 
- __[Twitter](https://robinhood.com/stocks/TWTR)__ crushed expectations. Ad sales grew 15% to $808M.

__Facebook's peanuts = Snap's dinner...__ Over 1K advertisers — including big shots like __Verizon__  — [paused](https://snacks.robinhood.com/newsletters/53ExK4qFnO6TgaRpz8Ssnl/articles/6BImPvOi9lK0nl5oMKNwcO/) ads on Facebook in July to protest  hate speech and misinformation policies. But FB now has 10M active advertisers, up from 9M in July. While the boycott didn't hurt Zuck, it fed the smaller networks:

- __[Pinterest](https://robinhood.com/stocks/PINS)__'s sales rose 58% to $443M as marketers shifted ad spend to the way more wholesome social network. That's still crumbs compared to FB's earnings cake.
- __[Snap](https://robinhood.com/stocks/SNAP)__'s sales shot up 52% to $679M as advertisers moved to the not-so-wholesome (but way less controversial) app. 

_Emerging post-ad-pocalypse like_

Ad-iction

__Always have a plan B...__ because plan A(d) is unpredictable. Uncertainty around the pandemic, the election, and intense Congressional scrutiny means spend could be unreliable. So ad Goliaths are looking to other $$ sources: Facebook will start [charging](https://www.cnbc.com/2020/10/22/facebook-to-charge-for-whatsapp-business-services.html) for WhatsApp Business. Twitter will begin testing other money-makers (possibly a paid subscription). And Google will have to do *something* since Apple's [building](https://www.businessinsider.com/apple-now-shows-its-own-search-results-threatening-google-ios14-2020-10) its own search engine.


Ad-pocalypse (not) Now: Facebook, Google, and Twitter rebound on more ads

__Darth Bezos rises...__ on __[Amazon](https://robinhood.com/stocks/AMZN)__'s insane quarter. In three months,  the Zon brought in *$96.1B* in sales, breaking its record high from the previous quarter as we 1-Click ordered rice cookers. Profit [*tripled*](https://snacks.robinhood.com/newsletters/64dl6Er3uOxlFSO2nPzcbo/articles/4TGtOEkORwmgedvXqBc3pk) from the same quarter last year to a ginormous $6.3B. But the stock fell because Amazon's weirdly expecting to rake in less profit during the holiday quarter than it did last quarter.  

__A gassy surprise...__ __[Shell](https://robinhood.com/stocks/RDS.A)__ was one of the few stocks to jump while the market plunged last week. The oil giant surprisingly [decided](https://www.cnbc.com/2020/10/29/shell-earnings-q3-2020.html) to boost its [dividend](https://learn.robinhood.com/articles/6jGOO5O2YvyoZzlEUtIq0F/what-is-a-dividend/#:~:text=Dividends%20are%20when%20a%20company,to%20be%20issued%20in%20cash.) payout to shareholders, just 6 months after *reducing* it for the 1st time since WWII. Despite beating (low) expectations, Shell's quarterly earnings were just $955M, compared to $4.8B last year. That's still better than __[Chevron](https://robinhood.com/stocks/CVX)__, __[Exxon](https://robinhood.com/stocks/XOM)__, and __[BP](https://robinhood.com/stocks/BP)__, which each saw yet *another* quarter of losses as COVID continues to slam oil. 


Highs

Who's up...

__Doesn't taste ripe...__ __[Apple](https://robinhood.com/stocks/AAPL)__ stock dropped on news that iPhone sales were down 20% last quarter. That's unappetizing to investors, since phones make up a huge slice of the Fruit's business: iPhones generated 52% of total sales last year, but just 41% last quarter. Macs, iPads, Wearables, and Services all saw double-digit growth — but Apple's *overall* sales were barely [up](https://www.cnbc.com/2020/10/29/apple-aapl-earnings-q4-2020.html) from last year. We'll see if the new iPhone 12 helps in the *next* earnings (it wasn't on sale yet last quarter).

__*Why you always in a mood?*...__ __[Spotify](https://robinhood.com/stocks/SPOT)__ stock tanked 15% for the week after the Swedish streamer [missed](https://finance.yahoo.com/news/spotify-premium-revenue-misses-expectations-134450864.html) on Premium sales  expectations and posted a loss. But Spotify [outperformed](https://www.reuters.com/article/spotify-tech-results/spotify-adds-more-subscribers-as-music-streaming-gets-back-on-track-idUSKBN27E1NF) on subscriber *growth*: monthly listeners jumped 29% to 320M, and Premium subscribers were up 27%. Mid-pandemic, your lack of a commute meant Spotify lost hours of pod streaming and aggressive song switching. Now, Spotify's in-car listening has rebounded and overall streaming has *surpassed* pre-pandemic levels.


Lows

...and who's down

🛍  Facebook, Twitter, and Google's ad roundup 

__The only one having a good 2020...__  __[Amazon](https://robinhood.com/stocks/AMZN)__ brought in record-high sales last quarter, breaking its all-time high from the *previous* quarter. We lost count of how many fleece sweatpants we 1-click ordered, and Amazon probably would've lost count of how much $$$ it raked it (if it weren't required to report that to the SEC):

- __Profit *tripled*__ from the same quarter last year, coming in at a truly huge [$6.3B](https://www.cnbc.com/2020/10/29/amazon-amzn-earnings-q3-2020.html#:~:text=Analysts%20were%20expecting%20revenue%20of,billion%20on%20coronavirus%2Drelated%20measures.).
- __Sales jumped 37%__ to a record $96B, topping analysts' expectations.
- __But the stock *fell*__ after earnings because Amazon expects to see *less* profit during the holiday quarter than it did last quarter. Sounds... counter-intuitive. 

__Quick, create a diversion...__ Amazon knows that its mega sales were driven by a world-shattering pandemic, so it made sure to highlight all the good things it did for the world last quarter. It:

- __Is creating more than 200K new jobs__, half of which are permanent roles that pay at least $15/hour with benefits.
- __Donated millions__ to support educational efforts, COVID-19 relief charities, and wildfire-related causes. 
- __Expanded its Climate Pledge__ and ordered 100K electric delivery vans from __Rivian__ (expect to see them all on the road in 2030).

Whoa

__Amazon's future: cloudy with a chance of breakup?...__ Amazon's cloud computing unit AWS made up a whopping ~57% of its profit last quarter and ~12% of sales. As Congress continues to [grill](https://www.nytimes.com/2020/10/06/technology/congress-big-tech-monopoly-power.html) Big Tech on its monopoly-like ways, this question will probably come up: *why does the largest e-commerce service also own the largest cloud computing service?*

Amazon triples its profit in a record quarter (but it's feeling guilty)

__"*How are you feeling today, Pickles?*"...__ That's the vet talking to your dachshund over Zoom. Pet supplies deliverer __[Chewy](https://robinhood.com/stocks/CHWY)__ has been thriving on the pandemic puppy-palooza. Now it's [launching](https://www.cnbc.com/2020/10/28/chewy.html) a telehealth service to connect pet owners with licensed vets. 

- __It's free__ for customers who use Chewy's "Autoship Program" — sounds like a FedEx internship, actually a way to set up routine deliveries.
- __Consistent sales__ (aka: recurring revenue) from subscriptions like Autoship are growth engines, and this new perk could boost sign ups.
- __But it's pretty basic__ (for now). Vets help with issues like "my dog ate a sock" and can't prescribe meds. 

__Chewy's chewing on two major trends...__ First, the pet-palooza: adoptions have jumped on the "everything-from-home" life. One shelter [received](https://www.dailymail.co.uk/femail/article-8867545/Dog-charities-worried-dog-lovers-rushing-getting-rescue-dogs-lockdown.html) 1,000 requests for the same (painfully cute) bulldog puppy. Chewy has been [profiting](https://snacks.robinhood.com/newsletters/6PR0xbLSMdv6hGEyPZHPHD/articles/1qID0PIUvnfyK7kmL5mfVe/) off high demand for furry friends. The second trend: 

- __Virtual healthcare:__ Telehealth interactions could hit 1B by the end of the year. 
- __Telemedicine bigshot [Teladoc](https://robinhood.com/stocks/TDOC)__ just saw visits triple to 2.8M last quarter, and sales more than 2X’d. Teladoc stock is up 162% this year.  


Pickles

__Chewy is guarding its turf...__ and marking its territory in the pet industry. By bundling pet-related services, Chewy is trying to build loyalty and steal Milk-Bones orders from __[Amazon](https://robinhood.com/stocks/AMZN)__ (it's all about Amazon again). Chewy should add pet insurance to its "Barking Bundle," just like __[Lemonade](https://robinhood.com/stocks/LMND)__ recently wrapped it into its insurance package (@Chewy: feel free to accept our bundle name suggestion). 

Chewy unleashes virtual vet visits to mark its online turf

__*Did you get a tan?*...__ Our old friend the US economy is looking much better than it did the last time we checked in on it. But it's not the Fenty concealer or the Maldives trip — it's the [GDP](https://learn.robinhood.com/articles/29d9WQgPq119raQYS1Wm6H/what-is-gross-domestic-product-gdp/#:~:text=Robinhood%20Learn,a%20set%20period%20of%20time.) (aka: the total value of all goods and services produced by a country over a period of time — aka: *the economy*). 

- __GDP grew at a 33.1% annualized rate__ in the 3rd quarter (July-September), the fastest *ever*. This rate shows how much GDP *would* grow over a year at the Q3 pace.
- __In the *previous* quarter__, GDP plunged at a *worst*-ever 31.4% annualized rate, shrinking 9% from Q1. So this is a serious rebound.

__But everything is relative...__ and context is key. While the quick quarterly spike *is* impressive, the economy is still around 3.5% smaller than it was at the end of last year. TLDR: better than last quarter — still *down* overall.


Rebound

__It's likely slowing down from here...__ The stimulus injection that fueled last quarter's rebound has expired. The enhanced unemployment and federal checks boom is over, airline aid is gone, and negotiations for a 2nd stimulus still haven't come together. Until more financial help arrives, we can buckle up for another slowdown.

The US economy grows at its fastest rate ever after a record plunge

_Christmas came early for Amazon_

📦 Amazon's quarter of insanity

__Heat up the eggplant casserole...__ Leftover legend __[Tupperware](https://robinhood.com/stocks/TUP)__ just saw its first quarterly sales growth since 2017. Tupperware [became](https://www.mentalfloss.com/article/59687/how-single-mom-created-plastic-food-storage-empire) the plastic empire it is today thanks to the sales prowess of Brownie Wise (perfect name), the entrepreneurial single mom who started "Tupperware Parties" in the 40s. 

- __Sales were up 14%__ last quarter. *North America* sales [popped](https://markets.businessinsider.com/news/stocks/tupperware-brands-stock-price-earnings-extends-rally-top-estimates-q3-2020-10-1029735650) 42% thanks to XL-sized spaghetti nights and way too much meal prep. 
- __Profit *quadrupled*__ compared to the same quarter last year. Tup cut costs by $120M to boost its bottom line. 

__Tastes better two days later...__ Tupperware stock jumped 35% on the news, and is up over 2,000% since hitting an all-time low in March. Last quarter's earnings are the most exciting thing to happen to Tup since Cheesecake Factory delivery. 

- __More cooking at home__ = more leftovers. Sunday's family chicken roast is Monday and Tuesday's mid-Zoom lunch (hide it from the sibs in a fridge drawer). 
- __Tupperware’s sales people nimbly adopted digital tools__ to seize the remote opportunity. Think: online Tupperware party with [12K](https://seekingalpha.com/article/4382118-tupperware-brands-corporation-tup-ceo-miguel-fernandez-on-q3-2020-results-earnings-call?page=3) participants. 


Save

__Time’s change, but brand staples last...__ Since Brownie was slinging Tupperware at parties 70 years ago, the core product hasn't changed much (still a plastic container). We have iPhones and self-driving cars now, but we're still packing rice in Tupperware. Other genericized trademarks that have stood the test of time: Vaseline, Kleenex, Band-Aid, and Clorox. Brand trust keeps them going.

Tupperware heats up on its first growth in 3 years (leftovers are having a moment)

__A Happy Gilmore wedding...__ Golf classic __[Callaway](https://robinhood.com/stocks/ELY)__, known for making fancy clubs and golf balls, is [buying](https://www.wsj.com/articles/callaway-nears-deal-to-buy-rest-of-topgolf-11603816074) the rest of "open-air entertainment" company __Topgolf__, known for Vegas bachelor parties and gram-able pics. Callaway already owns 14% of the party favorite. Now it's doubling down with an all-stock merger that values Topgolf at ~$2B – more than Callaway’s even worth. A Haiku on Topgolf stats:

- __$1.1B__ sales in 2019 
- __23M__ customers around the globe 
-  __63__ Topgolf-run entertainment centers 

__The Lazertag of golf...__ could be key to helping old-school Callaway (and golf in general) attract younger players — *especially* now that golf is having a mini-renaissance as one of the few socially distant sports. According to Callaway CEO Chip Brewer, “Topgolf is the best thing that happened to golf since Tiger Woods." That's because... 

-  __50% of Topgolf’s customers__ don't identify as golfers. Chip thinks it'll be the biggest breeder of newbies for the industry.
- __But Callaway stock fell 19% on the deal__. Callaway shareholders will own ~51.5% of the married company, but some don't think the debt and [dilution](https://learn.robinhood.com/articles/5rlezLS4uMuf3cZTyEAo38/what-is-stock-dilution/) involved is worth it. Also...


_Pre-gamed golf a bit too hard_

Hole

__Conversion isn't a sure-thing...__ Callaway is hoping that the people who show up in basketball shorts to pound seltzers at Topgolf will become the people who spend $700 on a golf set for a five-hour round. Topgolf could be the "gateway" for youngsters to develop a life-long love of golf — but investors aren't so sure.

Old-school Callaway buys Topgolf to attract Gen-TikTok

🥘 Tupperware's filling quarter

__Need that *Santal 26 White Concrete Candle*...__ stat. Food delivery app __Postmates__ is [launching](https://www.cnbc.com/2020/10/27/holiday-shopping-postmates-to-launch-retail-platform-in-los-angeles-.html) a new retail delivery platform, starting in LA. It includes boutique stores like __[Estee Lauder](https://robinhood.com/stocks/EL)__’s Le Labo, Zadig & Voltaire, and Anastasia Beverly Hills (*soooo* LA). From a "Shop" tab in the Postmates app, users can get clothes, makeup, and home goods dropped off same-day.

- __Postmates__ can capitalize on demand for contactless holiday shopping. 
- __Businesses__ can do the same without building their own delivery tools.

__Ran out of patchouli essential oil...__ Postmates wants to deliver your energy-shifting incense as fast as it drops off truffle pizza. If enough merchants join, Postmates Shop could be an appealing alternative to __[Amazon](https://robinhood.com/stocks/AMZN)__ Prime — especially since Postmates plans to expand it to other cities in 2021.

- __Faster:__ Instead of waiting a few days for your silk pajama set, you can get it as quickly as pad thai (#instantgratification).
- __Local:__  The charming boutiques you used to visit pre-corona probably aren't on Amazon — but they could be on Postmates. 

_Trying to get something delivered pre-Postmates_

Scented

__"Delivery Everything" is here...__ The delivery system is the hardest part. If you have one, you can deliver almost anything — and there’s no better time to start doing that than during a pandemic. That's why food delivery apps have expanded beyond noms. The first step was convenience stores: Postmates x __[Walgreens](https://robinhood.com/stocks/WBA)__, __DoorDash__ x __[CVS](https://robinhood.com/stocks/CVS)__, __Instacart__ x __[7-Eleven](https://robinhood.com/stocks/SVNDY)__. The next step is retail: DoorDash x __[Macy's](https://robinhood.com/stocks/M)__, Instacart x __Sephora__, and Postmates Shop (the boldest delivery pivot of them all).


Postmates reaches peak “Delivery Everything” with LA retail shopping 

__Heard it from a mile away...__ __[Harley-Davidson](https://robinhood.com/stocks/HOG)__ stock surged 22% yesterday after the motorcycle legend reported expectation-beating earnings. Harley's quarterly sales fell 8% compared to a year ago, but *profit* spiked 39%. That's because Harley's new CEO Jochen Zeitz has been majorly [streamlining](https://www.wsj.com/articles/harleys-new-ceo-bets-on-leaner-operations-to-restore-hogs-luster-11603648802):

- __Slash costs:__  Harley laid off ~10% of its employees. It's also closing underperforming dealerships and some international operations to zero in on core markets.
- __Optimize sales:__ Zeitz is cutting ~30% of Harley's least profitable models (hardcore). And he wants customers to pay full price for recently discounted two-wheelers. 

__Bring back the bicep tats...__ and the head bandannas. Before Zeitz took over in February, Harley was chasing a new customer base: Millennials. It tried to win young love with cheaper, smaller rides like electric motorcycles and bikes. The old CEO wanted to launch up to 100 of these models. The *new* CEO doesn't care if a 25-year-old from Williamsburg likes it:

- __Harley's going back to its OG strategy__ of making big, expensive motorcycles for diehard fans. 
- __10 popular models made up more than two-thirds of Harley's sales__. Harley's now honing in on those Baby Boomer favorites instead of its other 27.

Ride

__Harley's choosing short-term gain over long-term growth...__  Harley's cost-slashing, Boomer-focused plan means higher profits *now*. But its US bike sales have fallen for five years straight through 2019. Meanwhile: cuter, youth-friendly motorcycles have lifted sales for rivals like __[Polaris](https://robinhood.com/stocks/PII)__ and __Eicher__. Harley needs to take Millennials along for the ride to notch long-term growth.


Harley-Davidson ditches the pursuit of Millennials to rev up Boomer classics

🛍  Postmates delivers holiday shopping 

__The hot gossip in Canton, Mass...__ __[Dunkin'](https://robinhood.com/stocks/DNKN)__ might go private. The Coolatta-and-cruller legend confirmed it's in sale talks with private equity-backed __Inspire Brands__ (the owner of Arby’s, Sonic, and Jimmy John’s). 

- __Inspire wants some sugar__ with its salty lineup. So it's [reportedly](https://www.cnbc.com/2020/10/26/dunkin-stock-soars-18percent-after-chain-confirms-sale-talks-with-inspire-brands.html) willing to drop nearly $9B to take Dunkin' private.
- __Dunkin' stock surged 16%__ because the price represents a 20% premium over its Friday stock value. By buying Dunkin', Inspire  would more than *double* its total restaurant locations.

__Bang a U-ey...__ Dunkin' has been [fancy-fying](https://snacks.robinhood.com/newsletters/1eTI3nM3ObwPQAeA9cVBNq/articles/6gWeBM3XKjsxrvepcn9nmk/) itself over the years. It dropped "Donuts" from its name, invested in flashy brewing systems, got its employees "espresso certified," and served up oat-milk lattes and Beyond Meat sandwiches. Drive-thrus, green tea Refreshers, and a buzzy deal with TikTok star Charli D’Amelio have boosted its biz during the pandemic. 

- __US same-store sales dipped 19%__ last quarter since you weren't hitting Dunkies before ice hockey practice.
- __But [Starbucks](https://robinhood.com/stocks/SBUX)' sales fell *40%*__ last quarter, making Dunkin' look like the Brady of corona coffee. Dunkin' stock has  climbed much more than Starbs' this year.


_Dunkin' trying to close a private equity deal_

Dunkies

__This is the opposite of a regular PE deal...__  Rule #1 in the private equity playbook: find a struggling company, revamp it, and flip it for more. Dunkin' isn't a fixer-upper: it brought in a record $1.4B in sales and $242M in profit last year, and its stock is at an all-time high. But going private could shield it from the obligations and scrutiny that come with being  public. That gives it more freedom to transform its brand.


Dunkin' might sell itself for $8.8B and go private — but why?

__Check your checking account...__ You might be paying more fees than usual. When we stash cash in an account, banks benefit because they can use that idle money to make *more* cash (by investing or loaning it). That’s why banks often pay interest (usually tiny) on your deposits. Now, Americans are [paying](https://www.bankrate.com/banking/checking/checking-account-survey/) record fees for interest checking accounts *and* getting record-low returns:

- __The average monthly account fee__ is at a high of $15.50. 
- __The average balance needed__ to *avoid* that fee is at a high of $7,550. 
- __[Annual percentage yield](https://learn.robinhood.com/articles/5CLrCuXmQXIKWMye3uZcEM/what-is-annual-percentage-yield-apy/)__ is at a low of 0.04%. 

__Bad news for our wallets...__ Banks raised fees to squeeze more money out of their consumer businesses, which are suffering. As interest rates hit fresh lows, banks got paid less on consumer loans. Meanwhile, cash-strapped Americans used credit cards less and [hoarded](https://www.wsj.com/articles/a-global-rebound-could-be-determined-by-how-freely-households-spend-11603618201) money. To sum up Big Banks' latest quarter:

- __Trading revenue soared:__ __[JPM Chase](https://robinhood.com/stocks/JPM)__, __[Citi](https://robinhood.com/stocks/C)__, and __[Goldman](https://robinhood.com/stocks/GS)__ cashed in on major trading and investment activity for Wall Street clients.
- __Consumer banking revenue fell:__ Chase, Citi, and __[BoA](https://robinhood.com/stocks/BAC)__ saw Main Street banking revenue drop on less credit card swiping and lower interest payments.


Deposit

__Banks' consumer struggles reflect the economy...__ The extra $500/week in unemployment benefits expired in July — right around when banks' latest quarters started. The stimulus check boom is over — that money's spent, and negotiations for a 2nd stimulus have been dragging on for months. Until more aid arrives, banks are squeezing consumers because they're getting squeezed, too.

Banks set record-high account fees to juice more out of the struggling retail biz

🍩 Dunkin' might sell itself (privately)

__Guac dirty to me...__ So extra. __[Chipotle](https://robinhood.com/stocks/CMG)__'s sales jumped 14% from last year to a quarterly record of $1.6B. Digital orders were the steak in Chipotle's earnings bowl, taking the limelight as we got guac all over our WFH laptops:

- __Digital sales more than *tripled*__, helping offset lost traffic from depressed restaurant dining.
- __Online orders made up nearly half__ of the burrito legend's total sales. Despite the e-win and record sales, Chipotle stock fell because *profit* took a hit.

__Dude, where's my carne?...__ ETA for your asada is 15 minutes, but Chipotle would rather you *pick it up* instead. About half of Chipotle’s digital customers chose delivery last quarter (instead of take-out or drive-thru) — that boosted costs and hurt profit:

- __Profit fell 19%__, partly because of delivery costs. Food delivery companies often charge restaurants double-digit commissions on orders.
- __Chipotle says__ that the delivery fees it charges  don’t fully cover the commissions it *pays* to partners like __DoorDash__ and __[Grubhub](https://robinhood.com/stocks/GRUB)__. 


_E-burritos just aren't as tasty_

Guac

__Delivery success doesn't always deliver...__ Chipotle would've been better off if people *only* did drive-thru and/or pick-up. It's not in Chipotle's interest to go full-ghost kitchen (delivery only). That's why it opened 44 new restaurants last quarter, 26 of which include digital-order drive-thru lanes (aka Chipotlanes). Investment in take-out/drive-thru could be the secret salsa to fast-casual's pandemic profits.

Chipotle reels in record sales, but takes a profit hit on delivery

__Anime filter was a hit...__ __[Snap](https://robinhood.com/stocks/SNAP)__ stock soared 55% for the week to a record high after the little ghost [reported](https://snacks.robinhood.com/newsletters/2hhFJkDD8GRIrdEY3An17Q/articles/44SSiCA2niJS661gqxKehP) expectation-smashing earnings. Sales shot up 52% as advertisers started spending again, compared to growth of 17% in the previous quarter — you probably noticed more ads between "Kylie sizzles in red" and "Is your dog depressed?" Daily users grew 18% to 249M (but Snap still isn't profitable). Earnings were boosted by the FB ad boycott and India's TikTok ban. TBD if Snap can keep up the lucky growth.

__Fridge is Truly stocked...__ Sam Adams-maker __[Boston Beer Company](https://robinhood.com/stocks/SAM)__ saw its stock soar 15% for the week to a record high on truly refreshing earnings. Boston Beer [raised](https://www.cnbc.com/2020/10/23/boston-beer-shares-soar-to-a-new-all-time-high-after-raised-guidance.html) its financial forecast for the year, mostly thanks to the success of its Truly hard seltzer. Sales of Sam Adams and Dogfish Head [fell](https://www.bostonbeer.com/news-releases/news-release-details/boston-beer-reports-third-quarter-2020-results), but growth of *non-beer* brands Truly and Twisted Tea helped offset those losses.  With the big buzz around seltzers and teas, Boston Beer should probably rebrand to 'Boston Booze.'

__Call *Emily in Paris*...__ __[Netflix](https://robinhood.com/stocks/NFLX)__ needs some cheering up. The stream-icon [added](https://snacks.robinhood.com/newsletters/2hhFJkDD8GRIrdEY3An17Q/articles/FL8fYUalmcoSK7GR3JhvI) a disappointing 2.2M subscribers in its third quarter, compared to 10M in Q2 and *16M* in Q3. Netflix stock fell 8% on the slumping growth. The subscriber boom from the first half of the year is over: Netflix added just 180K subscribers in the US and Canada because subscripturation (aka: subscription saturation) is real. Now the Flix is looking to emerging markets like India for its next 100M subs — customers in the Asia-Pacific region made up 46% of all new Flixers last quarter. 

__*Not the Lays kind*...__ __[Intel](https://robinhood.com/stocks/INTC)__ stock dropped 11% for the week after the famous chip-maker [revealed](https://www.intc.com/news-events/press-releases/detail/1424/intel-reports-third-quarter-2020-financial-results) not-so-chipper results for its data center unit. Sales of data-storing/processing hardware to companies and governments plunged 47% after two quarters of growth over 30%. Chip sales are booming, but customers don't want Intel's pricier ones — so it [sold](https://www.reuters.com/article/us-intel-results/intels-data-center-chip-sales-fall-short-shares-slide-10-idINKBN2772XW) more "cheap" chips, driving down profit despite higher volumes. Intel beat earnings expectations, but investors were bitter about the data dip. 

🌯 Chipotle's delivery dilemma 

__Calling it quiti...__ __Quibi__, short for "quick bites," is shutting down just six months after launching. The video startup [raised](https://snacks.robinhood.com/newsletters/6tL9rj4NSZ6yeAUZMcTFdg/articles/iJPjyX1dxuDPncD7wa9AW) a *gargantuan* $1.75B before debuting in April — now it's quitting to avoid losing investors any more money. In the likely chance you never downloaded it: Quibi is (was?) a mobile-only short video streamer (~8-minute episodes). It drummed up massive hype for three reasons:

- __Major backers:__ With DreamWorks founder Jeff Katzenberg and former __[HP](https://robinhood.com/stocks/HPQ)__ CEO Meg Whitman at the helm, Quibi got mega bucks from investors like __[Disney](https://robinhood.com/stocks/DIS)__ and __[Comcast](https://robinhood.com/stocks/CMCSA)__.
- __Big stars:__ Quibi splurged on HBO-level production quality shows and  big names like Liam Hemsworth, Reese Witherspoon, and Chrissy Teigen.
- __Cool tech:__  Quibi's "Turnstyle" feature lets you seamlessly switch between horizontal and vertical viewing (but it got [sued](https://deadline.com/2020/07/quibi-wins-eko-motion-turnstyle-technology-1202984830/) for that).

__No "Quibi and Quaker Oats"...__ Quibi was made for "in-between" moments. But we're not subway-and-Quibi'ing since the pandemic killed commutes — we're *also* not Quibi-ing while nuking oatmeal during WFH. Quibi missed paid subscriber targets, and  [reportedly](https://www.theverge.com/2020/7/8/21318060/quibi-subscriber-count-free-trial-paying-users-conversion-rate) lost 90% of early users after kindly sending a "your trial is expiring" email (#bless).

_Chrissy's Court is closed: the Quibi funeral_

Bites

__Content is king...__ While Quibi has partly [blamed](https://quibi-hq.medium.com/an-open-letter-from-quibi-8af6b415377f) timing, it likely failed because its content wasn't compelling enough to charge $5-$8/month  (see: show about a [golden arm](https://news.avclub.com/we-need-to-talk-about-the-golden-arm-episode-of-quibi-1842886592)). Those "in-between" moments still exist — but they're dominated by extra-short, user-generated content on *free* apps like Instagram, TikTok, and Snap. And those are thriving during the corona-conomy.


Quibi is sadly shutting down six months after launch  (it's not about timing)

__Requesting 1/1000 of a bitcoin...__ *for the truffle pizza we shared last night*. Venmo-owner __[PayPal](https://robinhood.com/stocks/PYPL)__ is [launching](https://www.reuters.com/article/idUSL1N2HB14U) crypto buying, selling, *and* shopping on its service. While buying/selling crypto isn't novel, the spending part is: 

- __PayPal users will be able to shop__ at the *26M* merchants on its network starting in early 2021. Think: paying for your burger or Bloomies in bitcoin.
- __US account holders can start buying virtual coins__ on PayPal in the next few weeks — PayPal's planning to bring this to Venmo and other countries next year.
- __BTW:__ The merchants won't actually get paid in crypto. PayPal is basically handling sales on the backend to turn your bitcoin into regular bucks.

__Big on the crypto...__ small on the currency. Crypto hasn’t been widely adopted as a real currency for three key reasons: lack of trust, lack of acceptance, and price volatility. You don't want to spend a bitcoin on a Birkin bag if that same coin could be worth *double* next week. Also: crypto transactions tend to be slower than traditional payments. 


Crypto

__This could be crypto’s mainstream moment...__ or not. With 346M active accounts, PayPal has waaaayy bigger reach than other crypto-slinging fintechs. That's why bitcoin [hit](https://www.independent.co.uk/life-style/gadgets-and-tech/bitcoin-price-2020-latest-record-cryptocurrency-b1205021.html) a record high for 2020 on PayPal's news. Just like GM’s EV Hummer [could](https://snacks.robinhood.com/newsletters/2hhFJkDD8GRIrdEY3An17Q/articles/4FDnuKMvUnNXfRZLTkT98w/) bring non-EVers to the electric side, PayPal could help normalize crypto. There's also a big chance that people won't see any value in using it, too. 

Venmo-owner PayPal will let users buy, sell, and shop with crypto

📲  Quibi's quick demise (it bites)

__Who didn't get corona-ghosted last quarter...__ __[Snap](https://robinhood.com/stocks/SNAP)__ stock soared ~30% to an all-time high after the little ghost [reported](https://www.cnbc.com/2020/10/20/snap-earnings-q3-2020.html) expectation-smashing earnings. You probably noticed more ads appearing every 5 seconds as you tried to watch “Kylie sizzles on Capri beach” and "Oddly Satisfying."

- __Sales shot up 52%__ as advertisers started spending again, compared to growth of 17% in the previous quarter. 
- __Daily users grew 18% to 249M__ — that's equivalent to 75% of the US population.
- __Snap's loss shrank 12%__, but the 9-year-old company still isn't profitable. 

__Zucking revenge...__ Snap's growth slowed big time after Facebook's Instagram copied its game-changing Stories back in 2016. But last quarter, Snap profited off FB's misfortune: earnings were boosted by the FB ad boycott, as marketers shifted spend to Snap. Also: since TikTok was banned in India, Snap more than [*doubled*](https://www.theinformation.com/articles/snapchats-indian-users-rise-150-as-growth-stalls-in-home-market?utm_campaign=%5Brtsu%5D+Automated+RTS&utm_content=1002702&utm_medium=email&utm_source=cio&utm_term=1000266) its users in the world's 2nd most populous country.

- __Snap has done a lot this year,__ [launching](https://snacks.robinhood.com/newsletters/2FFx07PkihITcdXy20oUUt/articles/f5oNMz0Gj22IuOs59hqQ3) new features from Mini apps to TikTok rivaling Sounds to the (in)famous anime filter.
- __There’s a lot you can do on Snap__ now besides sending double chin pics, from meditating with Headspace to Shazaming songs to identifying plant species.

_Snap getting freaky with the filters_

NSFW

__Snap got lucky...__ with the FB boycott and the TikTok ban saga. Now the question is: can it keep up the growth and users it gained last quarter? Snap's CFO said that it's not clear whether pumped-up ad demand will stick. But investors ignored that, boosting the stock on the surprising growth.


Snap hits a record on a wow-worthy quarter (it got its Facebook revenge)

__Just like *Emily in Paris*...__ __[Netflix](https://robinhood.com/stocks/NFLX)__'s quarter didn't go as planned. Netflix [added](https://variety.com/2020/digital/news/netflix-q3-2020-earnings-subscriber-miss-1234811242/) just 2.2M subscribers in its third quarter, less than the 2.5M it forecast and waaay less than the 3.6M analysts expected. Netflix stock dropped 7% because in the markets, everything is relative: 

- __Netflix added nearly 16M subscribers__ in the 1st quarter of this year, and over 10M in Q2, making its latest quarter look even worse.
- __It's forecasting just 6M new subs this quarter__, and expects paid subscriber additions to be *down* for the first half of 2021.

__The boom is over...__ Netflix saw explosive growth during the first half of the year, as we hibernated with our laptops and instant ramen. It became a utility (gas, electric, and Flix) — but that also led to more *subscripturation* (aka: subscription saturation). 

- __Netflix already takes up [72%](https://www.theverge.com/2020/4/21/21229587/netflix-earnings-coronavirus-pandemic-streaming-entertainment) of US home streaming time__. Plus, consumers are now spoilt for choice with newbie streamers like Disney+ (RIP Quibi). That's why...
- __Netflix added only 180K subscribers in the US and Canada__. Subscribers in the Asia-Pacific region were the largest growth contributors, making up [46%](https://www.cnbc.com/2020/10/20/netflix-nflx-earnings-q3-2020.html) of all newbie additions.

Flix

__Netflix needs to get creative to reach non-streamers...__ It has 200M paying subscribers, but its *next 100M* will probably be streaming virgins — everyone else is over-subscribed. That's why Netflix is looking to emerging markets like India and Brazil for future growth. It's even [offering ](https://www.protocol.com/after-discontinuing-free-trials-netflix-plans-streamfest-promotion) a free, 48-hour streaming event in India — and it probably won’t even ask for payment info.

Netflix stock slumps on slowing subscriber growth and subscripturation

__Are We There Yet?...__ Like the 2005 Ice Cube family classic, the mid-2000s were filled with gas-guzzling cars that could fit entire football teams (RIP Lincoln Navigator). Now __[GM](https://robinhood.com/stocks/GM)__ is bringing bulky back by reviving the Hummer, which it discontinued in 2009 when it went bankrupt. But now it's the opposite of a gas-guzzler:

- __The world's first all-electric supertruck:__ What GM unveiled in a (mildly terrifying) [commercial](https://twitter.com/KingJames/status/1317168024709853185) during the World Series on Tuesday.
- __GM's Hummer EV__ will be an electric pickup beast with 1K horsepower that goes zero to 60 in three seconds. BTW: LeBron is repping.

__Smells Musky...__ GM has made big moves in the EV world, and is now competing against __[Tesla](https://robinhood.com/stocks/TSLA)__ with the Hummer.  It's set to go on sale in a year – likely ahead of Elon’s Cybertruck.

- __$20B:__ How much GM plans to invest in autonomous and all-electric vehicles through 2025, led by the Hummer pickup.
- __$2B:__ How much GM just [said](https://www.businessinsider.com/general-motors-2-billion-build-cadillac-lyriq-spring-hill-tennessee-2020-10) it's pouring into factories to build its Cadillac EV. It plans to launch 22 new electrified vehicles by 2023.
- __$2B:__ How much GM was going to [hand over](https://snacks.robinhood.com/newsletters/7FZzguUiD8aLKkREx4vy4F/articles/7CfZXV2CbwDk29abnMj5hQ/) to produce cars for e-truck startup Nikola. That's on ice after fraud allegations against the startup.

Electrify

__This is a mainstream milestone for EVs...__ Everyone's talking about Tesla, but EVs [were](https://www.iea.org/reports/global-ev-outlook-2020) just 2.6% of global car sales in 2019. GM's sustainable version of its nostalgic, ultra-*un*sustainable car could lure more non-EV people to the electric side.

🐜 The biggest IPO ever: squashed

🎵 Crocs' popstar moment

🛍 Facebook, Twitter, and Google's ad roundup

📦 Amazon's quarter of insanity

🥘 Tupperware's filling quarter

🛍 Postmates delivers holiday shopping

🍩 Dunkin' might sell itself (privately)

🌯 Chipotle's delivery dilemma

📲 Quibi's quick demise (it bites)

👻 Snap's storied revenge