__Dear 100M American Bowl-viewers...__ A bunch of companies paid __[Fox](https://robinhood.com/stocks/FOX)__ $5.6M for the right to a 30-second commercial between the QB sneaks and butt fumbles. PR and marketing teams put *extra* thought into this year's Super Bowl ads to send the right message — that reveals their industries' relationship status with customers (sometimes, complicated). The highlight themes:

- __Tech — "I'm sorry":__ __[Facebook](https://robinhood.com/stocks/FB)__'s rookie Super Bowl ad promotes [Facebook Groups](https://www.fastcompany.com/90458905/why-facebook-put-the-focus-on-you-for-its-first-ever-super-bowl-ad) as a way to meet real people with similar interests (emphasizing connection over privacy issues). And could you really try to break-up __[Alphabet](https://robinhood.com/stocks/GOOG)__ when it's helping a widower [keep memories](https://www.youtube.com/watch?v=6xSxXiHwMrg) of his Loretta? Tear-jerker.
- __Also Tech — "I'm not sorry":__ Ellen pondered what people did before [Alexa](https://www.youtube.com/watch?v=trfbpONj3dk) (spoiler: The jester didn't tell a joke and Nixon didn't delete the tapes) — the ad highlights, rather than down-plays, __[Amazon](https://robinhood.com/stocks/AMZN)__'s intimate role in your life.
- __Food & Beverage — "Something for everyone":__ Lil Nas X dance-dueled for Doritos while Bill Nye showed off SodaStream's H2O — __[PepsiCo](https://robinhood.com/stocks/PEP)__ has something for everyone. __[Coca-Cola](https://robinhood.com/stocks/KO)__ tries to reverse shrinking soda sales by adding guarana extracts, B vitamins, and Jonah Hill, making it  "[Coke Energy](https://www.cnbc.com/2020/01/31/coca-cola-super-bowl-ad-pitches-coke-energy.html)." __[Budweiser](https://robinhood.com/stocks/BUD)__ flipped the "[typical Americans](https://www.thestreet.com/video/budweiser-typical-american)" cliché in one ad, then made Bud Light Strawberry Seltzer manly enough for [Post Malone](https://www.youtube.com/watch?time_continue=56&v=wsnnU3fJTWg&feature=emb_logo) in another.
-  __Automotive — "Shaking things up":__ __[Fiat Chrysler](https://robinhood.com/stocks/FCAU)__ brought on Bill Murray, who went full Groundhog Day to introduce the [Jeep Gladiator](https://www.cnbc.com/2020/02/02/jeep-recreates-groundhog-day-with-bill-murray-for-super-bowl-2020-ad.html) (part jeep, part pickup). And LeBron brought his talents to South Detroit to help __[General Motors](https://robinhood.com/stocks/GM)__ tease the new [electric Hummer](https://www.cnbc.com/2020/02/02/watch-gms-super-bowl-ad-for-the-new-all-electric-hummer-with-lebron-james.html). Showing off that new new. 


_It's what happens off the field that matters in the Super Bowl_

Promote

__This is the Super Bowl for your *extra* attention...__ And your eyes and ears are worth millions. With DVR, streaming video, cord-cutting, and options to pay more for no commercials, it's incredibly hard for big brands to get noticed (you ever actually watched an Insta-story ad?). While $5.6M is a lot for 30 seconds, it's probably comparable on a per-view basis with a Facebook or a magazine ad.

Our Super Bowl commercial highlights — it's all about the messaging

__Gloomy IPO season gets some sun...__ __[One Medical](https://robinhood.com/stocks/ONEM)__ stock popped [47%](https://www.barrons.com/articles/primary-care-stock-one-medical-ipo-price-jumps-51580498834) as the membership-based healthcare co went public Friday. Its lofty goal: "*Make people fall in love with their doctor's office.*" Kinda like what Equinox did for gyms, but for medical visits (and not as pricey). The word "delight" was mentioned 7 times in their IPO filing — that's more than the word "doctor." It's still unprofitable with 400K members, but the real opportunity is with corporate clients — __[Google](https://robinhood.com/stocks/GOOG)__ is one of its [biggest](https://www.marketwatch.com/story/one-medical-is-going-public-5-things-to-know-about-the-primary-care-startup-2020-01-06) customers (and investors).


__The branches are growing...__ __[Apple](https://robinhood.com/stocks/AAPL)__ enjoyed its [most profitable](https://snacks.robinhood.com/newsletters/1TSUKPobYVfVzeGc1Gkbyq/articles/7vq1wd9YvQG0Q9ANwNg8zk) quarter ever. It was also the Fruit's first quarterly profit increase in over a year. Highlight: Wearables sales (think AirPods, watches) jumped 37%. In 365 days, Apple has added __over $725B__ to its value (that's more than Facebook's entire value), thanks to its self-serving ecosystem: Apple's wearables and services (Apple TV+, Apple Card) all tie back to and benefit its core iPhone biz.






Highs

Who's up...

__Smoked out of billions...__ __[Altria](https://robinhood.com/stocks/MO)__. The tobacco giant that makes Marlboro cigs [lost](https://snacks.robinhood.com/newsletters/1BeoZk2sScdAg5tPsdxKa9/articles/3kGA0PqkX7vSCvs7cFxaPP) an extra $4.1B on its investment in Juul — that's a total loss of __$8.6B__ in just over a year. As smokers traded tobacco-filled paper for a vape juice-filled metal device, Altria saw Juul as the future of smoking, so it invested $12B in the startup. That "strategic" investment turned into a major fail  (and massive liability). Regulators cracked on down on vaping for hooking kids with mango-tastic flavors and colorful marketing. Now Altria's paying the price.  


__Not so gassed up...__ Oil companies. Shares of oil icons __[Exxon](https://robinhood.com/stocks/XOM)__ and __[Chevron](https://robinhood.com/stocks/CVX)__ [fell 4%](https://www.reuters.com/article/us-energy-results-wrapup-1/exxon-chevron-results-augur-tough-year-ahead-shares-drop-idUSKBN1ZU2C2) Friday on disappointing earnings. Meanwhile, __[Shell](https://robinhood.com/stocks/RDS.A)__ hit a __3-year low__ on slow growth. But the real worry is coronavirus — travel demand continues to tank as it hits global health emergency status. And with reduced demand for travel, oil and gas prices have fallen. Airlines like __Delta__, __American__, and __United__ have all [suspended](https://www.businessinsider.com/coronavirus-flight-suspensions-delta-suspends-china-flights-american-united-2020-1) China flights — plus, China is big oil's major source of demand/growth. 









Lows

...and who's down

Dow Jones

S&P 500

Nasdaq

Bitcoin

10-Yr US Treasury

🏈 What those Super Bowl ads actually meant

__Smoked out...__ __[Altria](https://robinhood.com/stocks/MO)__, the tobacco-giant behind Marlboro cigarettes, just lost an extra $4.1B on its investment in e-cig phenom __Juul__. When Altria first invested in Juul, the startup was worth __$38B__ — Now Juul's value has [dropped](https://www.wsj.com/articles/altria-takes-4-1-billion-writedown-on-juul-investment-11580386578?mod=hp_lead_pos4) 68% to around __$12B__. Boom. Up in smoke.

- __Threat:__ As smokers traded tobacco-filled paper for a liquid-filled metal Juul, the leading vape brand became a big threat to Altria. So...
- __Investment:__ Altria invested __$12.8B in Juul__ in Dec 2018 for a 35% stake in the company. It thought it made a solid strategic investment in the future of smoking. Until...
- __Problems:__ Altria's got 99 of them, all called "Juul." A torrent of regulations and litigation — mostly because __young kids got hooked on Juul's creme-flavored vapes__ — have cost it big.


__Major fail...__ Back in October, Altria wrote down its Juul stake by $4.5B. With this latest drop, Altria's lost $8.6B from its Juul investment in just over a year. For a company whose cigarette biz was already hurt, this one hurts more.

_Altria realizing how much it lost on Juul_

Lose

__A "strategic" investment...__ becomes a major liability. That's the problem with investing in a new industry that's not very regulated — regulation will come. For Juul, this happened in a big way. While the company says it's meant as a safer alternative for smokers, people who never smoked before started. Regulators blamed Juul's charmingly colorful marketing and Jamba Juice-inspired flavors. Now Altria's paying the price, too.

Altria — the Big Tobacco company — just had its worst year ever get even worse

__In the Zon...__ How __[Amazon's](https://robinhood.com/stocks/AMZN)__ feeling after shipping expectations-smashing earnings. Revenue rose 21% and profits came in sweeter than expected at __$3.3B__. Amazon shares jumped 12% to bring its valuation over __$1T__ (*capital* T). Amazon's back in the $1 trillion Platinum Platypus club. For context:

- There are __1,000 Billions__ in 1 Trillion (whoa) 
- A newly-minted __Platinum Platypus__ (a trillion-dollar company) is worth 1,000 __Unicorns__ (billion-dollar companies)... or 35 Lyfts

__Unpack the deets...__ Will do. Amazon's __profits got pinched__ last quarter as it spent a lot of $$$ in its race to 1-day shipping, aggressively challenging __Walmart__ and __Target__ to who-has-the-shortest-ship-time. Amazon won with its SSE (Short Ship Energy).

- __The Cloud:__ Massive. Amazon's cloud Amazon Web Services (AWS) biz made up a huge [67%](https://www.marketwatch.com/story/amazon-earnings-return-to-growth-in-holiday-season-sending-stock-soaring-toward-1-trillion-valuation-2020-01-30) of its profit.
- __Holiday sales:__ Extra strong. Holiday sales rose 4.1% overall in the US, but they rose a whopping [15%](https://ir.aboutamazon.com/static-files/f3589a21-d023-4e4c-9897-1498c60885d2) for Amazon.
- __Prime Time:__ Growing. Amazon now has __over 150M Prime members world-wide__, up from 100M in 2018. And they're shelling out $119/year for free shipping and extra perks. 



Trillion

__How huge can huge get?...__ If Amazon Prime members were a country, they'd be the 9th biggest nation on Earth (sandwiched between Bangladesh and Russia). Amazon's latest earnings suggest it's not slowing down. Other tech giants like __Facebook__ and __Google__ are showing signs of slowing growth. Amazon's already huge, but these recent results suggest it's still speeding up (for now).

Amazon briefly joins the Platinum Platypus club with a record holiday

__Like "bouquet"...__ but (trying to be) cooler, because shortened. __The Bouqs__, a flower delivery/subscription startup, just got a fragrant $30M delivered to its door (#romantic) from a Japanese investor. It's raised a total $74M, [beating](https://techcrunch.com/2020/01/30/with-30-million-in-fresh-funds-the-bouqs-plans-to-plant-its-flower-delivery-business-in-japan/) its flowery peers by a long stem.  Now, The Bouqs is taking its flower biz to Japan's $6B flower market. Here's how it blossomed:


- __Direct-to-consumer:__ No middlemen and straight to your door, deliveries of one-off orders or subscriptions for people who want to treat themselves on the reg. Because if [bacon](https://baconfreak.com/bacon-of-the-month-clubs/) can be subsciptified, anything can.
- __Millennial-friendly:__ Some examples of Bouqs bouquets: "Raspberry Rosé" (roses come complete with a fancy Compartes chocolate bar), "Lavender Lover" (succulent bouquet comes with a lavender diffuser), and other fun ones like "Wild About U."
- __Farm-Direct:__ What sets it apart from other VC-funded flower startups like __Farm Girl__ and __BloomThat__. Getting flowers straight from the farm cuts supply chain costs (and boosts freshness). 

__International expansion...__ means international competition. The Bouqs competes with less-cool-named (but bigger) companies like __1-800-Flowers__ and FTD in the US. Now, it's gonna have to compete with popular Japanese flower delivery companies, too. 

Deliver

__Impulse buys have to be local buys...__ And flowers are classic impulse buys. "Thinking of You" flowers and "Sorry I Forgot Your B'day" flowers need to be delivered *stat*. You're prob gonna choose a local florist for those, rather than a Bouqs-like startup that needs a day or two to deliver. That's why The Bouqs is leaning on its subscription biz, developing its brick-and-mortar stores — and jumping into the (*very* profitable) wedding biz.  

The Bouqs snags $30M in fresh funding

💨Juul makes Altria lose billions (again)

__Cue the *Sweet Caroline* playlist...__ __[Penn National Gaming](https://robinhood.com/stocks/PENN)__ shelled out $163M for a 36% stake in Boston-raised __Barstool Sports__. You've heard of Barstool, the sports-culture blog/video/pod-producer famous for "irreverent" content. You probably hadn't heard of Penn National, which operates casinos like Tropicana and Margaritaville — its shares soared 11% on the news. Here's the deal:

- __Barstool__ gets its valuation bumped close to half-icorn-worthy __[$450M](https://www.wsj.com/articles/penn-national-gaming-to-buy-minority-stake-in-barstool-sports-11580274060?mod=business_lead_pos11)__ (almost half a unicorn).
- __Penn__ gets __exclusive rights__ to use Barstool's brand in its sports-betting products (which its casino biz is going in *big* on).
- __Barstool's founder__ (and fellow early employees) keep 28% ownership of the company.
- *FYI* we figured out the formula to all Barstool merchandise:

__[Insider fan joke] + [Silhouette of athlete] = Barstool t-shirt__

__It's all about the eyes (and ears)...__ Media companies boil down to one word: Audience. That's where the real value is for them (and their investors) — Barstool brings in nearly $100M in revenues annually.

- __Access:__ Since launching in 2003 as a Tom Brady-worshipping [*physical*](https://www.washingtonpost.com/gdpr-consent/?destination=%2fsports%2f2020%2f01%2f29%2fbarstool-penn-national%2f%3f) newspaper, Barstool hustled to build an audience of __66M__ "Stoolies."
- __*Special* Access:__ That audience is particularly likely to be into sports/gaming ([62% of Stoolies](https://pennnationalgaming.gcs-web.com/static-files/7d9349ed-f12a-4a55-9336-5623151149a2) bet on sports, and 44% of those gamblers do it at least 1x/week).
- __Brand:__ Penn wants more flat-brims in its life. "*Sports betting attracts a new, younger demographic than traditional casino gaming.*" That's straight outta Penn's investment presentation [deck](https://pennnationalgaming.gcs-web.com/static-files/7d9349ed-f12a-4a55-9336-5623151149a2). 
- __Conversion:__ Penn is betting it can __convert__ Barstool's audience into its casinos and sports-betting app better if it owns the content and can promote itself there.







_Wondering how many Stoolies showed up..._

__Brand is (almost) everything...__ Since the Supreme Court cleared the way for states to legalize sports betting (Jersey went in [hard](https://time.com/5759895/new-jersey-sports-betting/) on this), the race for customers has been heated. Sports betting rivals like __FanDuel__ and __DraftKings__ lead thanks to their well-known logos sponsoring almost every arena bar area. To compete, Penn needs a popular sports-ish brand with a big and relevant audience. Barstool checks both boxes. 






Barstool lands a $450M valuation, thanks to a casino company 

__Not a secret..__ Les Wexner, the billionaire owner of Victoria's Secret parent __[L Brands](https://robinhood.com/stocks/LB)__, is in talks to step down from his CEO-ship and possibly sell the lingerie brand ([WSJ](https://www.wsj.com/articles/victorias-secret-billionaire-in-talks-to-step-aside-and-sell-brand-11580299200?mod=business_lead_pos13) reports). The 82-year-old is the longest-serving CEO of any [S&P 500](https://learn.robinhood.com/articles/7kFFEUv46vmMCmMfLuNiRX/what-is-the-s-and-p-500/) — and besides V's Secret, he also turned around Abercrombie & Fitch and scaled Bath & Body Works into mall staples. But his [association](https://www.nytimes.com/2020/01/29/business/les-wexner-victorias-secret.html) with Jeffrey Epstein hasn't helped.

- __Vicky's [struggled](https://snacks.robinhood.com/newsletters/6HrC1V3THNnPVsG5psmdE9/articles/6RBJjkxPFi2VjNvlmOx0xe/)__ the past few years with falling sales and shrinking relevance – stores are too dark, the fashion show's outdated, and pushups missed out to the bralette trend.
- __L Brands as a whole__ is losing value — it was worth $29B at its 2015 peak, and is now worth less than $6B. But the stock jumped 13% on word Les may be out. 

__Spin-off the problem brand...__ focus on the clean one. __Bath & Body Works__ has shown annual sales growth for [9-straight years](https://www.barrons.com/articles/l-brands-stock-victorias-secret-sale-les-wexner-51580308781) (guess the foaming hand soaps never get old). Bath & Body's hygiene and self-care is tapped into the wellness trend, and is L Brands' star performer as Victoria's falls.

Exit

__Fashion is constantly evolving...__ And fashion brands succeed through change. VS didn't change. Its sales fell as customers turned to brands more focused on comfort and inclusivity, like __[American Eagle's](https://robinhood.com/stocks/AEO)__ Aerie (which enjoyed 20-straight quarters of double-digit sales growth). L Brands cancelled the VS fashion show in an effort to re-invent its marketing — but it may take a new leader (and Les leaving) to save Victoria.


Victoria's Secret owner might be stepping down (and selling the brand)

__All those ads interrupting your Insta-scrolling?...__ They added up to $70B of revenue for __[Facebook](https://robinhood.com/stocks/FB)__ in 2019. Although that sounds like Zuck & Co. should be celebrating their dominance in online ads sales, that was up only 27% from last year (and slower than the 35% revenue growth the year before). Shares fell almost 8% on word Facebook's profit got [squeezed](https://www.theverge.com/2020/1/29/21114130/facebook-q4-2019-earnings-instagram-whatsapp-messenger):

- __Revenue growth is slowing:__ 240M new people joined a member of the Facebook "Family" (Insta, FB, WhatsApp, Messenger) over the past year — that's a smaller number than years past. The Book's also losing people to TikTok and Snap (or you just put your phone down). 
- __Cost growth is speeding up:__ Facebook's feeds are the #1 targets for bad people to manipulate and abuse others online. Humans and algorithms to police those online streets are expensive — and so are the fines Facebook's seemingly always paying.
- __The result is *skinnier profits*:__ In 2017, Facebook made 50 cents of operating profit for each dollar of ad sales. In 2019, that came down to 34 cents.  

Slim down

__The whole world pays a 7 cents per day "Zuck fee"...__ To show investors that Facebook is growing despite weakness in its core Facebook app, Zuck included Instagram for the first time in its "[average revenue per user](https://s21.q4cdn.com/399680738/files/doc_financials/2019/q4/Q4-2019-Earnings-Presentation-_final.pdf)" category. Globally, Facebook made $25 off each user last year. That's 2.85B people with Facebook accounts, "paying" 7 cents per day in mid-scrolling attention to Facebook's ridiculously-targeted ads that know you like chocolate.

Facebook's profits are skinnier (not good), but the global "Zuck fee" is strong

🍕Barstool becomes an (almost) half-icorn 

__It's an iRecord plus...__ __[Apple](https://robinhood.com/stocks/AAPL)__ just posted its biggest ever quarterly profit, and its first quarterly profit increase in over a year. And iPhone sales rose for the first time in a year, but a star has been born with AirPods. The branches of the Apple tree are growing:

- __Wearables:__ Sales __up 37%__, thanks to AirPods Pro and Apple Watch
- __Services:__ __Up 17%__, thanks to Apple TV+ and the Apple Card
- __iPhones:__ __Up 8%__, iPhone sales (which made up [61%](https://www.wsj.com/articles/apple-posts-revenue-growth-on-strong-airpod-app-sales-11580247318) of Apple's revenue) jumped again thanks to fancy new features (like the 3-eyed camera) and cheaper prices for Chinese consumers 
- __iPad and Mac:__ Sales of the only rotting apples __fell by 11% and 4%__


__An Apple a year...__ Apple shares have more than doubled over the past 365 days. That's right — __over the course of 1 year, Apple has added over $725B to its value__ (that's more than Facebook's entire value). Apple's installed base of hardware devices — iPhones, MacBooks, iPads, etc — grew by 100M over the year to a total of over 1.5B. Plus, Apple is now worth $1.4T, #2 globally to Saudi Arabia’s oil co.

_Apple reviewing its quarterly AirPod sales_

Record

__It's all about the self-serving ecosystem...__ Last year, Apple failed to report a record quarterly profit for the first time since the iPhone's 2007 debut. Now, with iPhone sales up again and wearables and services thriving, it's back in record-profit mode. And the success is circular. Apple's diverse products and services tie back to and benefit its core product: *the iPhone* (which [could be](https://www.businessinsider.com/apple-tim-cook-5g-early-innings-iphone-earnings-q1-2020-1?r=US&IR=T) 5G capable next year, likely driving another wave of upgrades). 



Apple has its most profitable quarter ever thanks to iPhone and Airpods 

__Keeping Huawei away...__ might be harder than the US initially thought. The UK gov just gave Chinese tech giant __Huawei__ the greenlight to build part of its next-gen 5G network, defying warnings from the Trump admin. And 5G is the critical wireless tech infrastructure for the next wave of the internet.

- __The US is worried__ that Huawei will act as a Chinese gov spy on American/Euro communications (sounds [familiar](https://snacks.robinhood.com/newsletters/5CyyLYMeQw9UZAPSDpNJyt/articles/1ZmXS2jJSwPqQJBkPaDmcA/)). The US & UK govs share sensitive intelligence info with each other on the reg, so if China can tap the UK's calls, it kinda taps into the US.
- __Doesn't help much__ that Huawei itself couldn't really explain who owns it in the course of a [90-minute speech](https://www.nytimes.com/2019/04/25/technology/who-owns-huawei.html). Huawei denies it would let China's government use its network for spying... but defying orders from the Chinese government doesn't really happen.
- __Yesterday, the UK decided__ Huawei would build "noncritical" parts of its 5G network — it concluded that the security risks were manageable, and not using Huawei would cost a ton of money (bad news for the other 2 5G providers, __[Ericsson](https://robinhood.com/stocks/ERIC)__ and __[Nokia](https://robinhood.com/stocks/NOK)__).

__There's a lot going on...__ for the UK right now. Brexit is (finally) happening on Jan 31, so the UK is looking to keep its trade relations strong. The US is a key component of that, but so is not antagonizing China. 

Rollout

__Kind of a big deal...__ The UK's decision is a big blow to American efforts to curb the reach of Huawei and China. It could also influence [Germany](https://snacks.robinhood.com/newsletters/5CyyLYMeQw9UZAPSDpNJyt/articles/1ZmXS2jJSwPqQJBkPaDmcA/) and other US allies, who have to walk the line between two economic powerhouses. But the US and the UK have a long-running "special relationship" (#cousins). This decision is a thorn in its side.

The UK lets in Huawei — and the US is not about it

__Remember that low-tech, Razor scooter you loved as a 9-year-old?...__ Big-kid electric scooters are taking over now. __Bird__ is the Santa-Monica based scooter pioneer that just scooped up Berlin-based competitor __Circ__, which scoots across 40 cities in 14 European countries (and the UAE). Here's the scoop:

- __Money:__ Bird hit a [$2.5B](https://www.theverge.com/2019/10/3/20895798/bird-scooter-fundraising-valuation-unit-economics) valuation  in October by littering cities with e-scooters you unlock via phone. It also just raised $75M as an extension to its latest funding round. 
- __Shopping:__ Circ isn't Bird's first acquisition — it bought California rival __Scoot__ in early 2019.
- __Losses:__ Bird lost almost [$100M](https://www.theinformation.com/articles/hit-by-big-loss-bird-seeks-300m-in-new-funds) during the 1st quarter of 2019 — Blame scooter lifespans, vandalism, and (shocker) cold winter months.

__An unprofitable ride...__ Major scooter operators like Bird, __Lime__, __Uber__, and __Lyft__ all laid off employees recently — Circ fired 10% of its team before selling itself to Bird. Even though Bird's surged to a $3B valuation in less than 3 years of life, here's 1 key reason it's [so unprofitable](https://oversharing.substack.com/p/shared-scooters-dont-last-long): *Bird scooters in some cities __only last for 23__ days on average before they have to be replaced*, according to Oversharing.


Scoot

__Just like delivery apps...__ We've talked about [consolidation](https://snacks.robinhood.com/newsletters/5H4bzJb2lCpsjW7HA5Czc3/articles/APpX6NGeIEYFrIq5NYcoA/) in the mafia-style food delivery wars. The heat is also turning up in the scooter market, where rivals like Spin, Jump, and Skip compete over sidewalk real estate. Food delivery and scooter startups similarly face little loyalty from app-comparing "[promiscuous](https://snacks.robinhood.com/newsletters/3o0KQAYYbRpqhqULwfOWaD/)" customers, and low (to no) profits. So scooters are now merging to cut their growing costs to compete.

Bird treats itself, acquiring European e-scooter startup Circ

🍎 Apple posts an iRecord profit 

__Turn me on with your electric wheel...__ (or lack thereof). __[General Motors](https://robinhood.com/stocks/GM)__ will build its new self-driving robotaxi ("[Origin](https://snacks.robinhood.com/newsletters/6wRGgx7QknYZXmDyA2zTy9/articles/9t8Bf2X92irzTlMsYEMb5)") in Detroit. Surprised? GM's Detroit-Hamtramck (not a typo) plant is the auto giant's last remaining Detroit factory. GM was actually going to *close it down*. Then, in October, it changed course after workers at its US factories went on a [40-day](https://www.npr.org/sections/pictureshow/2019/09/20/762347761/why-gm-workers-are-striking) strike ([remember](https://snacks.robinhood.com/newsletters/73UBVtXg4JR3ow81EWHqQL/articles/3JFuwOuMzAlYvEBEIpDnT7/)?).

__Time to invest in your hometown again...__ Here's GM's plan:

- __Cash:__ GM's dropping [$2.2B](https://www.wsj.com/articles/gm-picks-detroit-factory-to-build-driverless-shuttle-electric-trucks-11580139576?mod=business_lead_pos3) on the Detroit factory site, and $800M on nearby projects.
- __Jobs:__ Since the plant is no longer closing, people won't lose their jobs. GM's new investment in Detroit combined with __[Fiat Chrysler](https://robinhood.com/stocks/FCAU)__'s [new factory](https://eu.detroitnews.com/story/business/autos/chrysler/2019/12/13/fiat-chrysler-detroit-plant-construction-milestone-highest-beam/4413393002/) there — which is currently being built — are expected to create 9K jobs. __[Ford](https://robinhood.com/stocks/F)__ is based in neighboring Dearborn, but is building a self-driving tech hub in Detroit's [Corktown](https://corporate.ford.com/campuses/corktown-campus.html).
- __Potential:__ GM has chosen Detroit as the hub of its electric, driverless future. That's right — Detroit is where GM's robo-taxis, electric trucks, and potentially a rumored electric [Hummer](https://www.caranddriver.com/news/a30679130/gm-electric-trucks-suvs-hummer-detroit/) will be born. 

_Please accept this self-driving car as a token of forgiveness_

Stay

__Employees saved GM Detroit...__ Detroit (aka the "Motor City") is Earth's historic car-making hub. It's where Ford introduced moving assembly lines for car manufacturing in 1913. 100 years later, Detroit filed for bankruptcy with the highest unemployment rate of any major American city. GM's investment in its last Detroit plant is both a symbolic and economic win for the city, made possible by GM's unionized employees, who reversed GM's plans via strike.

GM was set on divorcing Detroit — now it's renewing its vows in an electric way

__Spreading fast ...__ Coronavirus. The contagious respiratory illness is alarming the world and dragging down global markets. It first broke out in Wuhan, China, but has expanded far beyond the fish/meat/live animal market where it originated:

- Over __2,700 people__ infected, with over 100 deaths 
- The virus has spread to __13 countries__, with 5 cases confirmed in the US 
- Nearly __50M__ people are under quarantine in China — Travel restrictions are an attempt to contain the spread of the disease (as surgical masks are [selling out](https://www.bbc.com/news/business-51202519) across Asia)

__Stocks take a hit...__ As fears of coronavirus intensify, US markets have been jolted out of the blissful serenity they've enjoyed since [October](https://www.wsj.com/articles/global-stocks-slide-on-coronavirus-fears-11580119666). The Dow and the S&P 500  both fell Monday by 1.6% and the Nasdaq dropped 1.9%. Some sectors are feeling it more than others:

- __Travel-related companies__ (think __[United Airlines](https://robinhood.com/stocks/UAL)__, __[Marriott](https://robinhood.com/stocks/mar)__ hotels, and __[Carnival](https://robinhood.com/stocks/ccl)__ cruises) were hit hardest and all traded lower — oil prices have also fallen because of reduced travel demand.
- __Luxury fashion companies__ that rely heavily on Chinese buyers (like __[Burberry](https://robinhood.com/stocks/BURBY)__ and __[LVMH](https://robinhood.com/stocks/LVMUY)__ also took a tumble — in 2018, Chinese consumers spent [$115B](https://www.cnn.com/2020/01/23/business/coronavirus-carmakers-luxury/index.html) on luxury goods
- __[Nike](https://robinhood.com/stocks/nke)__ and __[Estée Lauder](https://robinhood.com/stocks/el)__ dropped too, since both now get __nearly 1/5 of their revenues from China__
- __Some investors ditched__ stocks and bought into "safe haven" assets like gold and treasury bills 

Viral

__The world's 2nd largest economy is China...__ No surprise that a viral outbreak there hurts global markets. Oh, and this is all happening during the Lunar New Year holiday, China's busiest travel season (3 *billion* trips were expected) — the holiday was just extended to keep stores closed, and US companies that do business in China are suffering as well (like __[Starbucks](https://robinhood.com/stocks/SBUX)__). FYI, 2002's SARS outbreak cost the global economy around [$40B](https://www.nbcnews.com/business/markets/sars-wiped-40-billion-world-markets-what-will-coronavirus-do-n1122151).

Coronavirus hits global markets — and some sectors get a double whammy

__Remember Dean Foods?...__ It's America's biggest milk processor, and it [filed](https://snacks.robinhood.com/newsletters/1lGG2OkJ051IWSvrC3kvRV/articles/2P0Y0JJ42tkEUzj2cT9kzc/) for bankruptcy back in November. It also owns dairy-full brands like Friendly's ice cream and TruMoo chocolate milk. Dean may now merge with another major American dairy cooperative, Dairy Farmers of America, just to survive. The [WSJ](https://www.wsj.com/articles/regulators-probe-potential-dean-foods-merger-11580147236) reports that regulators are now investigating the possible marriage. Here's the low-fat low-down:

- __Dairy wary:__ American milk consumption has fallen around 40% in the past four decades — now milk is being produced by a smaller number of big plants (in 1980 there were 1,066 milk processing plants — in 2018, there were 459)
- __Concerns:__ Some farm groups are worried the merger will hurt their businesses and lower the price they get paid for selling milk (already low)
- __Investigation:__ The Justice Department wants to know how this merger would hit milk prices and competition, hence the probe

__Overall US dairy consumption...__ is actually increasing (Americans love their cheese and yogurt). But, actual milk-drinking continues to decline (thanks to oat, almond, and the rest of the alt-milk gang). The bankruptcies of milk giants like Dean and __Borden Dairy__ are keeping farmers on edge.  

Milk

__Big Milk regulation...__ The decision of this probe might determine the fate of many other milk-processing plants. If the deal goes through, DFA will gain a larger share of the milk market. That could mean less competition and fewer options for farmers, who might have to sell their milk for less. But some farmers think the deal might be good, if it saves a huge milk-buyer like Dean from collapsing.

Big Milk probe: when American dairy giants want to merge

💝 GM renews its vows with Detroit 

__Not as sexy as cars...__ But maybe more formidable. While the news buzzes with shiny stories on __[Tesla](https://robinhood.com/stocks/TSLA)__ and fancy new electric car (EV) models, one player in the electric push has gone sneakily unnoticed: the electric delivery *van*. And big companies are starting to realize its importance:

- __IKEA, DHL, AT&T and Amazon__ built an alliance to [pressure](https://www.marketwatch.com/story/amazon-dhl-and-ikea-front-new-group-thats-pushing-for-more-electric-vehicles-2020-01-22) EV producers to make electric delivery vans diverse/scalable enough for their massive fleets (IKEA goes electric for all its home furniture deliveries by 2025).
- __Hyundai__ and __Kia__ just [invested](https://techcrunch.com/2020/01/16/hyundai-and-kia-put-over-110m-into-uk-electric-delivery-vehicles-startup-arrival/) $110M+ in electric delivery vehicle startup __Arrival__.
- __[Amazon](https://robinhood.com/stocks/AMZN)__ ordered 100K electric vans from __Rivian__ back in September, the largest order of EV delivery vehicles ever (part of its pledge to become carbon neutral by 2040).

__As e-commerce delivery continues to grow...__ more and more vans are hitting the streets. And companies like Amazon are increasingly incentivized to electrify their fleets to save money on fuel, gain independence from volatile oil/gas prices, and lower greenhouse gas emissions. 

_Vans don't have to be human-pushed to be sustainable_

__The biggest shift to electric...__ may not come from consumers buying individual cars. It might come from companies buying work vehicles. Take this new EV [alliance](https://www.marketwatch.com/story/amazon-dhl-and-ikea-front-new-group-thats-pushing-for-more-electric-vehicles-2020-01-22) of some of the largest vehicle fleets in the world — their investment in EV could move the needle faster than individual consumer purchases can. And the money coming from corporate budgets could fuel innovation in electric that filters down to consumer cars. 

The quiet (yet significant) rise of the electric delivery vehicle

__All Uber the place...__ __[Uber](https://robinhood.com/stocks/UBER)__'s had a lot in its trunk lately, from working to [disqualify](https://snacks.robinhood.com/newsletters/2DpDxCQOUGTefBMQ0b0NRA/articles/40Arw1SEXLxQlirUbmGSJp) its California drivers from being employees to a potential London ban. But shares surged 5% after it [sold](https://www.cnbc.com/2020/01/21/uber-offloaded-its-food-delivery-business-in-india.html) its Uber Eats India biz to Indian food delivery competitor __Zomato__. Uber's taking the "dominate or ditch" approach: Leave markets where it's not #1 to focus on markets where it is (or could be). Some see this exit as quitting, but investors see a money-losing company finally make profit-chasing moves.

__Real meat, minus the animal...__ __Memphis Meats__ just [raised](https://snacks.robinhood.com/newsletters/6wRGgx7QknYZXmDyA2zTy9/articles/5Be4NXoB1KfQmeeca6ubJi) $161M to develop cell-based meat, the biggest ever fundraise for a lab-grown meat startup. The startup "feeds" cells taken from animals, then grows the tissue into a hunk of beef you can cook and fit in a taco. *And you thought plant-based was wild.* The world wants twice today's meat by 2050, and lab-grown meat could deliver by requiring 99% less land and 96% less water than raising animals.

__Not in the green...__ Weed delivery leader __Eaze__ (aka "the Uber of pot") has a cash problem — it's almost out of the stuff. It's reportedly laying off employees and [can't](https://techcrunch.com/2020/01/16/eaze-out-of-cash-to-burn/) afford to pay its bills. Eaze wasn't making enough $$$ by acting as a delivery middle guy for 3rd party Cannabis producers, so it's whipped up a new strategy: "touching the plant". Produce and sell its *own* weed directly through depots. Eaze's struggles are also reflective of the cannabis industry not growing as fast as investors had hoped.

__Remember when...__ checkered Vans were a must-have middle-school staple and Timberlands made you an official adult? Those days are gone for __[VF Corp](https://robinhood.com/stocks/VFC)__, which owns both the brands (along with The North Face). VF shares fell 10% last week as Vans and Timbs sales slow. So it's looking to sell off its industrial work apparel divisions so it can fix its more fashionable consumer labels. 

⚡️🚘 The silent rise of the e-vans

__Earth's richest man and the Saudi Crown Prince...__ walk into a WhatsApp chat. The personal phone of __[Amazon](https://robinhood.com/stocks/AMZN)__ CEO Jeff Bezos was allegedly hacked by Saudi Crown Prince Mohammed bin Salman (MBS). Not a headline you see every day. Let's rewind: 

- __April 2018:__ Bezos and MBS exchange numbers at a dinner party in LA.
- __May 2018:__ MBS sends Bezos a Saudi tourism video over WhatsApp (stars are just like us).
- __January 2020:__ Except... not really. UN forensic analysis indicates Bezos' entire phone was likely [hacked](https://www.wsj.com/articles/u-n-experts-say-hacking-of-bezoss-phone-suggests-effort-to-influence-news-coverage-11579704647) from the video (data flowing out of his phone surged by 30,000% after the vid).

__Why so hacky?...__ Jeff Bezos has owned the __Washington Post__ since 2013. Jamal Khashoggi was a WaPo reporter — and Saudi dissident — who MBS reportedly [hated](https://www.nytimes.com/2019/02/07/us/politics/khashoggi-mohammed-bin-salman.html). In October 2018, Khashoggi was [killed](https://www.wsj.com/articles/saudi-crown-prince-says-khashoggi-was-killed-under-my-watch-denies-role-11569513897) and dismembered at the Saudi embassy in Istanbul. The hack could've been an attempt to obtain embarrassing Bezos material for blackmailing purposes — using the leverage to influence the WaPo's reporting on Saudi Arabia.

_When you click on a funny cat video, but it's actually a Saudi hack_

Hack

__When you dip your feet in politics...__ the politics rain down on you. Bezos' business is tech. But owning a news outlet also makes politics his business, dragging him into geopolitical disputes that aren't related to his main biz (and that are possible risks for Amazon shareholders). Now, Saudi media is [attacking](https://www.businessinsider.com/bezos-saudi-hack-report-boycott-amazon-trending-social-media-2020-1) Amazon (#boycottamazonproducts was trending there), and US/Saudi tensions over Khashoggi's murder are resurfacing. 

Amazon CEO Jeff Bezos' phone was allegedly hacked by Saudi Arabia

__If you thought your ads had disappeared...__ look again. __[Google](https://robinhood.com/stocks/GOOG)__ just made ads [harder](https://www.theverge.com/tldr/2020/1/23/21078343/google-ad-desktop-design-change-favicon-icon-ftc-guidelines) to distinguish from organic search results. These "camouflaged ads" subtly launched last week, blurring the line between what you were actually looking for, and what companies are paying to show you.

- __Before last week:__ It was easier to recognize (and gloss over) ads — a squared-off green "Ad" label next to promoted links at the top of a Google search page.
- __Now:__ Meet, "favicons." They're like little logos that Google now sticks next to search results. Ads now look exactly like organic search results, except with the black word "Ad" where the favicon should be.
- __The Problem:__ No more bright colors or boxing off. Less intuitive, more misleading. It's an ad that's trying to fly under the radar (like when you wave back at someone who wasn't waving at you).

__Slow burn...__ Over the years, Google has [slowly but surely](https://twitter.com/GinnyMarvin/status/757606109322633216) made its ads harder to spot. After all, Google is an ads biz — 85% of its $40B in revenue last quarter came from ad sales. Here's Google's visual ad evolution:

- __Up until 2007:__ Ads were obvious on the page, stuck against a blue background.
- __2008-2010:__ Google experimented with other, lighter colors (remember violet?).
- __2011:__ That ad space background was changed to less-bold yellow.
- __2013:__ Then it became a *paler* yellow.
- __2016:__ No more yellow background — just a small green "ad" label (until now).

Search

__Another pros before cos scenario...__ That's "profits before customers." Users are less likely to avoid clicking on paid ad results if they can't tell it's an ad. Advertisers get more clicks, Google gets more $$$, and users get less clarity on valuable/desirable search results. Google's motto used to be "don't be evil" (now it's "do the right thing"). Making money from hard-to-spot ads isn't evil, but it's way less transparent.

Google's big new move — We're calling it "Camouflaged Ads" 

Google's ads go "camouflaged" 😎

__Sweet Valentine's Day...__ On February 14th, __[Delta's](https://robinhood.com/stocks/DAL)__ 90K employees will get a check for an extra 2 months of salary as a bonus. The generous [$1.6B](https://www.cnn.com/2020/01/20/success/profit-sharing-delta/index.html) payout represents 33% of Delta's 2019 profits, which were extra strong (largely thanks to Delta's serendipitous  *[lack](https://snacks.robinhood.com/newsletters/4aXoHIfLkYLnG1NqNGDzhL/articles/1D78gkgLUqr938xxZMgZ2V/)* of Boeing 737 Max planes).

__Not just in-flight peanuts...__ Since 2012, Delta has paid out $1B+ a year in profit-sharing bonuses to employees, but this year is a record. Delta's not the only one sharing wealth — it's a thing in unionized industries like airlines and automakers. Since 2015, __GM__, __Ford__ and __Fiat Chrysler__ have shared a combined $5B with employees. But Delta's bonus (16% of salary) is big compared to [average ](https://www.cnn.com/2020/01/20/success/profit-sharing-delta/index.html) payouts (5% of salary). Here's what companies usually do with profits:

1. __Reinvest:__ Use profits to grow the biz — purchase new equipment and buildings, conduct R&D, marketing, kombucha on tap, etc.
2. __Dividends & Stock Buybacks:__ Reward shareholders with [dividend](https://learn.robinhood.com/articles/6jGOO5O2YvyoZzlEUtIq0F/what-is-a-dividend/) payments and/or buy back your own stock to raise the share price for everyone.
3. __Save & Repay:__ Save $$$ for future expenses and pay back IOUs.

_Basking in that fresh Delta bonus_

Reward

__Investing in your people...__ can sometimes be the best investment. Delta's CEO Ed Bastian [said](https://www.ocregister.com/2020/01/14/delta-to-pay-1-6-billion-in-profit-sharing-to-its-workers/) he used to get a lot of heat from Wall Street for using profits for big employee bonuses. But these payouts help make Delta a top-awarded airline. Keeping employees happy (with fat bonus checks) can mean lower employee turnover and higher morale — and that can translate to a better experience for customers (and stronger sales).

Delta dishes out $1.6B in profit-sharing bonuses for its employees

__It's a bird, it's a plane...__ it's a toaster-shaped robot taxi. __[General Motors](https://robinhood.com/stocks/GM)__ unveiled its highly-anticipated autonomous robotaxi: "Origin." It was developed by GM's self-driving car unit, __Cruise__, which GM acquired in 2016. But unlike futuristic [concept cars](https://www.youtube.com/watch?v=sNq98bUeByU), Origin is a fully engineered vehicle that's actually on its way to production. Here's the deal:

- __Automated:__ No drivers seat, no steering wheel, and (wait for it)... no driver
- __Gondola:__ It looks kinda like a long ski gondola on wheels, with 6 seats facing each other and glass doors that open elevator-door style 
- __Pennywise:__ GM says a trip on Origin will be cheaper than a human-driven Uber/Lyft/taxi trip, and even less costly than driving your own car.

__Hands off the (non-existent) wheel...__ Cars without steering wheels aren't street legal on public roads today (still working on safety concerns). So we don't actually know when Origin will hit the roads, but Cruise's CEO [says](https://www.wsj.com/articles/gms-cruise-reveals-new-robot-taxi-toaster-shaped-no-steering-wheel-11579670413) production plans will be released in a few days.

Cruise

__Ride-sharing gains a whole new dimension...__ Companies like GM and __[Alphabet](https://robinhood.com/stocks/GOOG)__ are spending billions developing self-driving cars. The goal isn't to sell you a robo-vehicle — it's to offer a robo ride-hail fleet:

- __[Uber](https://robinhood.com/stocks/UBER)__ is [stressing](https://snacks.robinhood.com/newsletters/2DpDxCQOUGTefBMQ0b0NRA/articles/40Arw1SEXLxQlirUbmGSJp) about having __to pay its drivers__ as employees.
- But with companies like GM's Cruise and Google's Waymo hitting the streets, one day there __might not even be drivers__ to pay.
- That's why Uber's also working on __its own robotaxis__.

GM unveils a self-driving robo-shuttle (and it's actually going to produce it)

__Disrupt plant-based meat...__ Venture Capital already [wants](https://www.npr.org/sections/thesalt/2020/01/22/798515259/ready-for-meat-grown-from-animal-cells-a-startup-plans-a-pilot-plant) to do that. __Memphis Meats__ just raised $161M to develop "*cell*-based meat." It takes cells from animal tissue (like chicken breast), then "feeds" the cells nutrients in a lab, producing this "clean meat." Kinda *Brave New World*-ish, but it's trying to optimize the flesh-growing process. The idea is to grow meat without the rest of the animal's body, slaughter-free.

__The real problem = land and water scarcity...__ Winston Churchill predicted it back in 1931 (seriously): "*We shall escape the absurdity of growing a whole chicken in order to eat the breast or wing.*"  Here's the problem with our current animal-raising for the meat industry:

- __We need more meat:__ Global demand for meat is expected to double by 2050 as more people enter the middle class and upgrade the heartiness of their meals worldwide.
- __But we don't have enough resources:__ Animals require lots of food, water, land (for grazing), and time to hit maturity.
- __Back to Memphis:__ Memphis Meats isn't in stores yet, but it's using the biggest ever fundraise for a lab-grown meat startup to build a pilot production plant.

Create

__Which is better, plant or cell-based meat?...__ Both try to give us the sustenance and juiciness of a shank, loin, or flank, but with less enviro-guilt. Once cell-based meat gets USDA and FDA approval (a critical next step), you'll have to decide your alt-meat preference based on these criteria:

- __Moral:__ Both win because no animals get slaughtered.
- __Environmental:__  __Impossible__ and __Beyond__ say their burgers burgers create ~90% less greenhouse gases and use ~93% [less water](https://www.nbcnews.com/news/us-news/fake-meat-better-you-or-environment-n1065231) than beef. It's unclear by how much better cell-based may be, though it does release less emissions than beef.
- __Healthiness:__ Cell-based meat can be bred to be a healthier supermeat (kinda scary), while plant-based meat is actually high in saturated fat.

Memphis Meats gets $161M investment to grow animal meat (minus the animal)

✈️ Delta employees get a big frequent flyer bonus

__Hands-on is the new hands-off...__  __[Amazon](https://robinhood.com/stocks/AMZN)__ is creating check-out terminals that put your payments (literally) at the palm of your hand, according to [WSJ](https://www.wsj.com/articles/cash-plastic-or-hand-amazon-envisions-paying-with-a-wave-11579352401) sources. Gives "palm reading" a whole new meaning. Here's how Amazon's handy payments go down:

- __Palm:__ Amazon patented a "non-contact biometric identification system" that scans your hand.
- __The idea:__ Link your credit card to your hand print so your hangry self can breeze past the Sunday morning bagel line.
- __The real customer:__ Amazon's pitching these terminals to physical fast food spots and coffee shops that you visit repeatedly. 
- __Credit Collab:__ Amazon's already working with __[Visa](https://robinhood.com/stocks/V)__ (and is in talks with __[Mastercard](https://robinhood.com/stocks/MA)__). It's also in discussions with card issuers like __[JPMorgan Chase](https://robinhood.com/stocks/JPM)__, who's wondering whether to collab with a potential competitor, or risk being cut out.

__It's getting out of hand...__ How far is too far when it comes to convenience? This hand-scanning thing would just shave down the time it takes you to pull out your phone or plastic (honestly, cool if you're shopping while on a jog). Your palm-info would still have to be transmitted and processed. Is saving a few seconds worth giving up *more* personal info to Big Tech?

_OMW to make an Amazon purchase_

__If money talks, spending screams...__  More info on your shopping habits could mean better targeted ads — and tech can charge advertisers more $$$ for that. It also means actionable info on what you actually splurge on, which Amazon could use to stock its ecommerce site. That's why Big Tech is pushing deeper into customers' wallets:

- __Amazon:__ Launched Amazon Pay and checkout-less Amazon Go stores
- __Apple:__ Shipped Apple Pay for mobile and its own Apple titanium credit card
- __Google:__ Has Google Pay and will begin offering checking accounts this year

Amazon wants to turn your palm into a wallet — the next frontier of frictionless payments

__I'm an app, duh...__ *__[Uber](https://robinhood.com/stocks/UBER)__, to the California government*. Uber is now [letting ](https://www.wsj.com/articles/uber-is-testing-a-feature-that-lets-some-california-drivers-set-fares-11579600801)some CA drivers set their own fares as part of a test in response to CA's new gig-economy law (aka, AB5). The law forces companies like Uber, __[Lyft](https://robinhood.com/stocks/LYFT)__, or __Postmates__ to treat workers as employees (give them sick days, benefits, etc). But Uber wants to prove its drivers are independent contractors. So it's made these changes:

- __Last month__, Uber let CA drivers see where riders are going before deciding whether to accept or reject a ride (wasn't a thing before).
- __This month__, Uber put a 25% cap on commissions drivers pay to Uber.
- __Now,__ Uber is letting drivers who pick-up/drop-off from airports in Santa Barbara, Palm Springs, and Sacramento price their rides up to 5X basic Uber fares (or charge as little as 1/10th).

__It's a tech company, I swear...__ Uber's trying to prove it's just an app with independent drivers (nothing to see here), in an effort to dodge the 20%-30% cost increase that would come with turning their contractors into employees. The gig-law could also make rides pricier for riders, which could reduce demand for rides overall.  

"_Yes, we are very technological_"

Drive

__Uber's current pricing method is all about efficiency...__ 11PM Saturday rides are pricier than 10AM Sunday rides because surge pricing factors in demand. This new bidding-style pricing might mean higher fares for drivers, but could also mean lower fares if drivers compete for the cheapest price. This auction-like system is less efficient, but Uber is hoping it'll help prove that drivers have autonomy, and should therefore be treated not like employees.

Uber is letting some drivers set their own fares (to avoid paying them as employees)

🖐 Amazon wants you to pay with your hands

__Hold my beer...__ That's __[Microsoft](https://robinhood.com/stocks/MSFT)__ to tech rival  __[Amazon](https://robinhood.com/stocks/AMZN)__. Microsoft's direct business has been carbon-neutral since 2012, but its supply chain hasn't. Now, the software giant's [pledging](https://blogs.microsoft.com/blog/2020/01/16/microsoft-will-be-carbon-negative-by-2030/) for itself and all related factories and facilities to become carbon-*negative* by 2030. That means not only reducing emissions, but actively *removing* more carbon from the environment than it's emitting. Microsoft's environmental one-upsmanship in perspective: 

- __87 Companies__ worth a total $2.3T made a UN [pledge](http://www.ethicalcorp.com/15c-pledge-87-global-companies-fuels-hope-bending-emissions-curve-climate-week) to become carbon-neutral (aka, not adding any net carbon to the atmosphere) by 2050.
-  __Amazon__ pledged to do it 10 years faster — carbon-neutral by 2040. Jeff Bezos said they'll get there with 100K electric delivery vans and investing in forest restoration.
- __Carbon Debt:__ Microsoft pledged not only to become carbon-negative by 2030, but to continue doing so until it paid back (i.e. removed) all the carbon it has *ever* emitted since 1975 (it hopes to do that by 2050). Mic (rosoft) drop. 

__America's Next Top Climate Model is...__ Consumers and investors have been rewarding environmentally-friendly companies. __[BlackRock](https://robinhood.com/stocks/BLK)__, the world's largest investment manager (with $7T in hand), just said it'll focus on creating funds that invest in climate-friendly companies. While the products companies make are important, sometimes *the way* companies operate matters more. 

"_Anything you can do I can do better_"

Sustain

__Not just hot air (pun intended)...__ While these sustainability pledges are PR-boosters, it's not all talk. American companies' enviro-pledges require the purchase of tons of renewable energy — tech companies' data centers are huge electricity hogs. And that clean energy demand is why [half](https://www.wsj.com/articles/u-s-companies-fuel-europes-green-energy-push-11579437000) of all corporate-sponsored wind and solar projects in the EU were built. Google-parent __[Alphabet](https://robinhood.com/stocks/GOOG)__ bought enough wind and solar energy in 2019 to power about 500M European homes. 

Microsoft one-ups Amazon with its bold carbon-negative pledge

__Money doesn't grow on trees...__ It grows on bank branches. Last week's big bank earnings validated both Wall Street's and Main street's economic booms. The biggest winner was __[JPMorgan Chase](https://robinhood.com/stocks/JPM)__, which had the most [profitable](https://snacks.robinhood.com/newsletters/70SavazX1qdJQfiXf95GQk/articles/1NkipApHwlGIYAtPuVA1Ij/) year of any American bank *ever* – $36B in profits was 12% growth from 2018. JPM is already the bank that 1/2 of Americans do business with, including the Chasers racking up travel/dining expenses on Sapphire Reserve cards.


__Delta's updated resume...__ *Beat quarterly profit expectations*. Biggest strength? [Not having](https://www.cnn.com/2020/01/14/investing/delta-earnings/index.html) any Boeing 737 Max planes, which will be grounded at least 15 months (through June) for rivals __[United](https://robinhood.com/stocks/UAL)__, __[Southwest](https://robinhood.com/stocks/LUV)__, and __[American](https://robinhood.com/stocks/AAL)__. Besides Delta's incredibly lucky jet selection, strong travel demand and cheap(er) fuel are helping __[Delta](https://robinhood.com/stocks/DAL)__'s profits fly. And it saw success in steering travelers to pricier not-quite-first-class fares (Comfort+, Premium, Business).

__Lost my appetite...__ How American meal-kit company __[Blue Apron](https://robinhood.com/stocks/APRN)__ felt after German rival __HelloFresh__ remained America's most-used meal kit [crafter](https://www.bloomberg.com/news/articles/2020-01-16/hellofresh-shares-surge-after-full-year-results-beat-estimates?sref=q3KSFp38). Despite shrinking *overall* meal kit demand, HelloFresh's simpler DIY-ish mealkits enjoy 1.5M customers, a stock that's up 250% in the last year, and profitability. Blue Apron's down under 400K customers now, with shares 96% lower than their IPO price and it's so far allergic to profits.

__Hands off my wheels...__ __[Volkswagen](https://robinhood.com/stocks/VWAGY)__, __[BMW](https://robinhood.com/stocks/BMWYY)__, and __[Daimler](https://robinhood.com/stocks/DMLRY)__ felt pressure from China over Germany's [prized](https://snacks.robinhood.com/newsletters/5CyyLYMeQw9UZAPSDpNJyt/articles/1ZmXS2jJSwPqQJBkPaDmcA) auto industry. Fun Snackfact: *Germany sells more cars to China than to any other country* (including Germany). Not-so-fun: China wants its own tech giant __Huawei__ to build out Germany's 5G wireless network. Even-less-fun: US officials suspect Huawei can be used by China's gov to spy on American/Euro communications. Now Germany's stuck between US pressure (and potential tariffs) and China's threat to drop the Audis and Mercedes purchases.

