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

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

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

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


_When Zoom locks you out of your own account_

Censor

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

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

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

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

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

_Waiting for the Chewy delivery_

Deliver

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

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

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

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

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

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

_Investors waking up on Thursday_

Drop

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


Stocks have their worst day since March on investors' worst fear: A 2nd outbreak

Dow Jones

S&P 500

Nasdaq

Bitcoin

10-Yr US Treasury

💻 Zoom's China flop

__Speak now or forever hold your pizza...__ Back in May, __[Uber](https://robinhood.com/stocks/UBER)__ was [courting](https://snacks.robinhood.com/newsletters/3zyhoJMmhQdMulq2nhX3S/articles/7uGwKzgedJAjF1GbyMgs73/) __[Grubhub](https://robinhood.com/stocks/GRUB)__ for an engagement that would marry the two food delivery giants into a market leader (surpassing __DoorDash__) — now a European stud has [swooped](https://www.wsj.com/articles/just-eat-takeaway-com-nears-all-stock-deal-for-grubhub-11591797653?mod=djemalertNEWS) in to steal Uber's thunder.  

- __Intercontinental:__ American Grubhub is [merging](https://techcrunch.com/2020/06/10/just-eat-takeaway-confirms-its-gobbling-up-grubhub-in-a-7-3b-deal/) with European delivery giant __Just Eat Takeaway.com__ — if you think that's a mouthful, that's because the European company was *itself* formed out of a merger.
- __Confirmed threesome:__ In January, British food deliverer Just Eat merged with Dutch rival Takeaway.com in an $7.6B deal — now, the merged company is eating up Grubhub for $7.3B. Combined, they'll have 70M global active customers.

__Parents prefer this marriage...__ US regulators aren't so thrilled about the consolidations coming out of the hyper-competitive  delivery wars (where the best promo code wins). 

- __Uber pulled out of the deal talks__ because of antitrust concerns — Uber and Grubhub [reportedly](https://www.wsj.com/articles/just-eat-takeaway-com-nears-all-stock-deal-for-grubhub-11591797653) couldn't agree on who would shoulder most of the risk in the likely scenario that regulators got involved.
- __A marriage with Just Eat solves this problem.__ Since the company doesn't have a US presence, the antitrust risk is much lower. JustEat and Grubhub aren't currently competing in the same market, so their merger doesn't hurt competition.
- __BTW__ — Just Eat’s market value is over 3X that of Grubhub’s ($16B to $5.4B).

_JustEat swooping in for Grubhub_

__This defeats the purpose of the consolidation plan...__ Grubhub and Uber hoped to merge to reduce aggressive price competition (and "[promiscuous](https://snacks.robinhood.com/newsletters/3o0KQAYYbRpqhqULwfOWaD/articles/7m8VoFteAIgGsRXEzlIssk)" customers). But the Just Eat/Grubhub merger combines two leaders in *separate* markets — domestic competition stays the same. No delivery fee-jacking is expected as a result of this deal. This merger is more about cost synergies (lowering duplicate costs) than revenue ones (being able to increase prices).



Uber-Grubhub marriage is off the table after a European swoops in with $7.3B

__When the weed killer is also the weed grower...__ The green thumb takes on a new meaning. __[Scotts Miracle Gro](https://robinhood.com/stocks/SMG)__ stock is up 84% since mid-March, when the lockdown-driven home makeover frenzy took hold. Since decking out the house extends to the yard, Scotts' lawn/garden care sales have surged (pesticides are the rosé of summer gardening):

- __Scotts' Miracle-Gro announced that plant soil/food sales surged__ almost [40%](https://www.globenewswire.com/news-release/2020/06/08/2045201/0/en/ScottsMiracle-Gro-Revises-Fiscal-2020-Guidance-Strong-Demand-Continues-in-both-U-S-Consumer-and-Hawthorne-Segments.html) in May on pimp-yo-lawn love.
- __Then it boosted its 2020 US sales forecast__ from 7% pre-coronavirus to 16%-18% after. *That's largely thanks to its interesting side hustle...*

__Side hustle smokes the main hustle...__ A few years ago, Scotts [decided](https://www.fool.com/investing/2019/09/14/scotts-miracle-gro-might-have-the-best-marijuana-s.aspx) it wanted a piece of the cannabis market (minus the cannabis). Enter...

- __Hydroponic systems:__ Tools for growing plants with nutrient-infused water instead of soil. Hydroponics are used by cannabis-growers to control pot production/quality — so Scotts went ham and acquired 50 hydroponics-related brands. Now...
- __Scotts hydroponics-focused Hawthorne division__ is a market leader and drives growth for all of Scotts.
-  __Sales high:__ Hawthorne's sales nearly doubled in 2019, jumped 51% in just the last quarter, and are expected to grow another 45%-50% in 2020.



"_What do you mean we're out of Scotts Miracle-Gro?_"

Grow

__In the cannabis gold rush, you can be a miner or a shovel-maker...__ Cannabis producers are the "miners" who take the biggest risk: their success depends on striking gold (cannabis sales). Scotts makes the "shovels". They get a smaller upside with less risk, but enjoy more consistent success along the way — as long as there's still a rush. 

Scotts Miracle-Gro helps cannabis producers miracle grow pot: a tale of two hustles

🍕 Uber-Grubhub courtship gets Euro-crashed

__Missing *Hey Arnold* and *Dexter's Laboratory*...__ Instead of counting sheep to fall asleep, kids are counting __TikTok__ dance moves. Digital safety company __Qustodio__ collected data from 60K families with kids ages 4-15 in the US, UK, and Spain. Qustodio [found](https://techcrunch.com/2020/06/04/kids-now-spend-nearly-as-much-time-watching-tiktok-as-youtube-in-u-s-u-k-and-spain/) that kids spend:

- __85 minutes/day watching YouTube:__ The video OG boasts 69% of US kids, 74% of UK kids, and 88% of Spanish kids as users — they're watching 2X as many YouTube vids/day as they did in 2016.
- __80 minutes/day watching TikTok:__ The Chinese short video app that exploded in popularity had 16.5% of US kids hooked in February. And engagement is *intense*: TikTok doubled kids’ social app use in 2019 and doubled their screen time in 2020. 
- __Lockdown jump:__ Closed schools and no playdates led to a surge — in mid-April, kids watched 97 minutes/day of YouTube *and* 95 minutes/day of TikTok (and parents had 192 minutes of peace).

__Winning the tech trifecta...__ That's growth, engagement, and profits. While YouTube is winning on sheer numbers of kids, TikTok's almost got it beat on engagement — and it's growing *fast*, with the most quarterly downloads of any app ever. Plus, its parent __ByteDance__ [reportedly](https://pitchbook.com/newsletter/tiktok-parent-posted-3b-net-profit-last-year) turned a $3B profit last year. 




"_Hey Patrick! Wanna start a TikTok channel?_"

Watch

__It's the battle of the attention spans...__ Kids are watching waaayy more videos in 80 minutes on TikTok than in 85 on YouTube. While both platforms are mostly user-generated, YouTube has a tough challenge in the battle for Gen Z's attention:

- __Millennials (24-39):__ Grew up with Nickelodeon, Cartoon Network and Disney TV shows (episodes around 20 minutes long). 
- __1st Wave Gen Z (16-23):__ Grew up with more YouTube videos (around 12 minutes long, on average).
- __2nd Wave Gen Z (1-15) — We're calling them "Gen T" now for TikTok:__ Growing up with short-form mobile content embodied by TikTok, whose videos are just *16 seconds long* on average.

Kids spend almost as much time on TikTok as YouTube: the Battle for Gen Z's Attention

__When you can't afford the WeWork...__ Cruise out the day on a Chamberlain Velvet Sofa in an __[RH](https://robinhood.com/stocks/RH)__ store, where the rustic yet sleekly modern decor will inspire your every PowerPoint. While the whole economy seems to move online, the upscale home-furnishing company (formerly known as Restoration Hardware) is doubling down aggressively on its brick-and-mortar game:

- __Hotels:__ RH Guesthouses will be the company's first foray into the hotel industry (suite comes with RH chaise).
- __Residences:__ Pre-furnished homes and condos will be RH's first experiment in the North American housing market.
- __Yachts:__ RH will also be offering a yacht named "RH3" to charter for well-furnished Caribbean and Mediterranean getaways (casual).


__All about the "lifestyle branding"...__ RH CEO Gary Friedman [believes](https://www.forbes.com/sites/pamdanziger/2020/06/07/gary-friedman-presents-a-new-expansive-luxury-vision-for-rh-but-can-it-be-realized/#4b79afad4484) it can "make the climb" to the top of the luxury mountain by embodying a luxe lifestyle through aggressively physical experiences: 

- __RH already has its Galleries,__ impressive palaces in metropolitan hubs like LA and NYC that provide more of a wow-factor than a shopping trip.
- __The new brick-and-mortar expansions__ are all part of Friedman's plan to create "an ecosystem of products, places, services and spaces that elevate the RH brand."

Furnish

__Bold CEOs make contrarian bets...__ With shopping already heading online 2 years ago, RH put its faith (and $$$) behind offline experiences — it dropped $50M on a huge NYC flagship store complete with a rooftop bar. And now while the corona-conomy accelerates the online push, RH is going harder than ever on physical locations. TBD whether it'll compete in the new market of stays and experiences. RH's CEO: "*This is a time to be defined by our vision, not by a virus.*”



Restoration Hardware triples down on the brick-and-mortar experience (picture hotels and yachts)

__When Facebook knows everyone in the pic...__ (without you even tagging them). Facial recognition is a relatively hot field with potentially big profits to be made by the companies who develop, sell, and use it in their products. But one major player just [ditched](https://www.theverge.com/2020/6/8/21284683/ibm-no-longer-general-purpose-facial-recognition-analysis-software) the tech on moral grounds:

- __[IBM](https://robinhood.com/stocks/IBM) is dropping its facial recognition business__ — it'll stop selling, developing, and researching the creepy/sophisticated tech, because it thinks it could be used as a weapon for mass surveillance and racial profiling. 
- __In a letter to Congress,__ IBM CEO Arvind Krishna said we should reevaluate how facial recognition tech is used by law enforcement agencies (and if it should be used at all).
- __[Amazon](https://robinhood.com/stocks/AMZN) is one major tech company__ that sells facial recognition software to law enforcement through its product, "Rekognition" (creative). 

__Troubling data...__ Research suggests that many commercial facial recognition systems (IBM's included) have demonstrated bias across lines of age, race, and ethnicity. Then there's also the issue of privacy violations — but many don't think of those issues when unlocking their phones with their faces or tagging friends on FB.



Stop

__Weapons deals are controversial — so are big tech deals now...__ Just like the knife you slice your avocado with could cut your finger, facial recognition tech could be (and is) used for a lot more than just unlocking iPhones: On a large scale, China’s [170M](https://www.independent.co.uk/life-style/gadgets-and-tech/news/china-surveillance-camera-facial-recognition-privacy-a9131871.html)+ surveillance cameras use facial recognition to ID citizens out of crowds. Tech companies are increasingly dealing with the moral implications of their creations.


IBM drops its facial recognition program — it thinks it's a weapon, not a tool

🎵 TikTok comes for YouTube's kids 

__I like million dollar deals, where's my pen?...__ Trick, I'm (Docu)signing. The latest trend accelerating in the corona-conomy: e-sigs (not the fruit vapor kind). Electronic signature icon __[DocuSign](https://robinhood.com/stocks/DOCU)__ topped earnings expectations for the quarter, as the WFH/lockdown life triggered a digital shift for businesses: 

- __DocuSign's sales grew 39%__ and it added 68K new customers, for a global total of 661K paying customers. 
- __The demand surge__ was driven by an increased need for eSignatures as you execute contracts from your parents' basement.
- __DocuSign CEO:__ "*We don’t anticipate customers returning to paper or manual-based processes*" — even when the corona-crisis is over. 

__It pays to be known...__ As the largest player in the e-signature world — with [70%](https://www.forbes.com/sites/robertdefrancesco/2019/05/19/docusign-aims-to-build-upon-its-25-billion-e-signature-opportunity/#5f6756eb4082) of the market — DocuSign was the first company many thought of when needing to remotely execute a contract. 

- __In 2018,__ it was [estimated](http://www.prweb.com/releases/2018/01/prweb15068518.htm) that less than 30% of all business paperwork processes are fully digital. Now, many are sending their John Hancocks over the ether. 
- __Google searches for DocuSign__ jumped 50% from February to March, when mandatory WFH policies started hitting.


_When you run out of free e-signatures on DocuSign_

Sign

__DocuSign is a shining example of the top-of-funnel strategy...__ Businesses flock to DocuSign for its free trial e-signatures — then DocuSign tries to sell them unlimited plans or its "Agreement Cloud," which includes a wider array of contract-management functions. The free e-sigs bring DocuSign traffic, attention, and gratitude — but [94%](https://seekingalpha.com/article/4352495-docusign-new-reality-fortune-maker) of its sales actually come from paid subscription services like unlimited plans and Agreement Cloud. 


DocuSign suggests e-signatures are here to stay, along with its "free sample" strategy

__Getting wahed of the curve...__ __Wahed Invest__ just [raised](https://news.crunchbase.com/news/new-york-based-wahed-raises-25m-for-islamic-investment-platform/) $25M for its Islamic investment platform, in a round led by __Saudi Aramaco__'s venture capital arm. The NY-based fintech calls itself the world’s first halal robo adviser. *Halal:* permitted under the laws of the Quran, the religious text of Islam.

- __Wahed identified a problem with the typical robo-adviser:__ Most investment firms will put money into large, market-tracking funds such as the S&P 500. Problem?
- __Many companies are at odds with Sharia law__ because of the products they sell — for [example](https://wahedinvest.com/ethical-investing/): companies that sell alcohol, pork, tobacco, or gambling products. 
- __Since Sharia extends to all aspects of life,__ including money and finance, Wahed solves the barrier for Muslims by screening investments for [Sharia-compliance](https://support.wahedinvest.com/hc/en-us/categories/115000852989-Shari-ah-Compliance).
- __Interest too:__ Companies with excess debt are also excluded, since Shariah forbids Muslims from earning or paying interest.

__Include Islamic finance in the wide world of Fintech...__ In its last financing round in 2018, Wahed was valued at $100M after raising $8M in seed funding. Since May 2019, Wahed has expanded from the US & UK to service over 100K clients across 130 countries. Last October it launched in Malaysia, a country governed by Sharia law.  

Raise

__This could be a big customized market opportunity...__ And Wahed [isn't](https://sifted.eu/articles/islamic-fintechs-europe-survive/) the only Islamic fintech trying to cater to the world's 2B Muslims. In an industry in which customizing to consumer needs is key, these companies could expand quick — especially in Sharia-governed countries like Saudi Arabia. But they'll still face massive competition from traditional banks.


Wahed raises $25M for its Sharia-compliant investment platform 

__Throw on the "Cross-Country" playlist...__ __[Thor Industries](https://robinhood.com/stocks/THO)__ is the impressively named owner of big RV manufacturers like Airstream and Heartland. Thor's slogan: "Go Anywhere. Stay Anywhere." — doesn't seem very feasible in the corona-conomy. But Thor stock is up 43% over the month because investors think RVs can make it possible:

- __Thor's sales fell 33%__ for the quarter ending in April — but, many RV dealers have reopened since then, and Thor restarted production at its North American plants.
- __Thor's CEO [says](https://www.wsj.com/articles/rv-maker-thor-lifted-by-first-time-buyers-amid-pandemic-11591629115?mod=lead_feature_below_a_pos1) sales picked up significantly in May__ after he took the time to actually call a bunch of dealerships.

__An aluminum box on wheels sounds appealing...__ when your Caribbean cruise was cancelled and you're terrified to get on a plane. Thor is seeing a growing number of first-time buyers and renters in 3 categories:

- __Vacationers:__ Rampant unemployment and virus fears have boosted RVs' appeal as cheap, sanitary travel options — pile the whole family in for a trip to Tahoe (mask optional). 
- __Mobile workers:__ A step up from the "work-from-car" trend — people are using RVs as mobile offices while they work remote 9-to-5.
- __1st time “home” buyers:__ Some are ending their leases and financing RVs instead (RV with ocean view is cheaper than house with ocean view).

_Summer 2020: the Caribbean cruise is cancelled_

Vacation

__Vacation demand is actually increasing...__ All the stay-at-home-ing has recently been unleashed in a pent up demand for travel. People aren’t waiting for a COVID-19 vaccine to go on vacation — we're seeing more road trips, and also more staycations at rentals: __Airbnb__ had [more](https://www.bostonglobe.com/business/2020/06/08/airbnb-joins-vacation-rental-sites-seeing-surge-demand/Y7Qax3drupdebsrWzMn0HK/story.html) US bookings from May 17 to June 3rd than it did for the same period last year. *More than the same period last year.*

RVs are back: Thor Industries soars on mobile vacations (and WFmobileH)

✍️ DocuSign's corona-conomy takeover 

__Just when it seemed like 2020 couldn't surprise us anymore...__ The May jobs report dropped. We were [expecting](https://www.cnbc.com/2020/05/28/jobs-data-shows-millions-went-back-to-work-but-unemployment-rate-for-may-is-still-expected-at-20percent.html) to get hit with a 20% unemployment rate, but were pleasantly surprised (rare 2020 occurrence): unemployment actually *fell* in May, and 2.5M jobs were added to the US economy — the largest monthly job gain on record.

- __May's 13.3% unemployment rate__ reveals that 1 in 7 Americans in the labor force can't find work — not exactly confetti-worthy news. But improvement from April is encouraging given the past quarantine-ful months.
- __The unemployment rate was 3.5% in February__ — then it jumped dramatically from 4.4% in March to 14.7% in April, when 20.5M Americans lost their jobs (a post-WWII high). 
- __A footnote in the jobs report__ indicates there could have been a "misclassification error" — unemployment may have been as high as 19.2% in April and 16.1% in May. Either way, it decreased significantly.

__May the (labor) force be with you...__ Over half of people laid off during the pandemic may be [earning](https://www.wsj.com/articles/may-jobs-report-coronavirus-2020-11591310177) *more* than they did at their jobs, largely thanks to stimulus checks and extra $600/week in beefed up unemployment pay. Americans' personal incomes actually [jumped](https://snacks.robinhood.com/newsletters/2sS10g2Vr8bBHTxXSaIGxl/articles/2xmu4pzB8cZ6rnal1iQRnk) 10.5% in April. While that might suggest a slower return to work, the latest stats are encouraging:

- __Restaurants and bars__ added 1.4M workers last month, or 56% of the overall May job gains. Construction, healthcare and retail also added jobs.
- __80% of the people who lost jobs__ during the corona-crisis expect the loss to be temporary.
- __But still TBD__ whether May's stats indicate positive future momentum, or just the bare minimum necessary to reopen the economy.

_Unpacking the jobs report_

Return

__The economy is still using training wheels...__ They get taken off on July 31st, when the beefed up unemployment benefits are scheduled to end. The US government has pumped trillions into aid programs for households and businesses — those will start to run out this summer. If we don't get a second COVID-19 outbreak and Americans feel safe enough to return to work, we could see a sharp decline in unemployment. But 2020 has a thing for surprises. 



The shocker May jobs report: largest monthly job gain ever recorded

- __Be my (e)bae...__ Like dating in the time of coronavirus, __[eBay](https://robinhood.com/stocks/EBAY)__ thrives on a virtual adrenaline rush. Shares of the OG e-marketplace hit an all-time high after it aggressively [raised](https://investors.ebayinc.com/investor-news/press-release-details/2020/eBay-Reports-Stronger-Volume-Growth-and-Raises-Revenue-and-GAAP-and-Non-GAAP-EPS-Guidance-for-Q2-2020/default.aspx) sales forecasts for next quarter (like outbidding yourself in an e-auction). EBay added 6M buyers in April and May, while small biz sign-ups surged 55%. Plus, there was perfect timing: eBay raked in $4B after selling ticket brand __StubHub__ in February, just before live events disappeared. 

- __Restock the Biscoff cookies...__ Airline stocks have [popped](https://snacks.robinhood.com/newsletters/7BlNIqvY4ohy1MtgRGqxKr/articles/GtLkoNokz6uPdh4586Z75) since Warren Buffett sold __[Berkshire Hathaway](https://robinhood.com/stocks/BRK.B)__'s entire airline stake (at a $3.B loss) a month ago. On April 16th, the volume of passengers traveling was 3.6% of last year's — on June 4, it was 15%. And by July, some airlines expect 50% of normal levels. These TSA stats, mixed in with economic reopening, sent stocks of America's 4 biggest airlines soaring: since May 7, __[American Airlines](https://robinhood.com/stocks/AAL)__ is up 95%, __[United](https://robinhood.com/stocks/UAL)__ is up 86%, __[Delta](https://robinhood.com/stocks/DAL)__ is up 58%, and __[Southwest](https://robinhood.com/stocks/LUV)__ is up 50% (insert Warren silently sipping Coke).




Highs

Who's up...

- __When you're called a slacker...__ Because everyone's just comparing you to __[Zoom](https://robinhood.com/stocks/ZM)__. Shares of __[Slack](https://robinhood.com/stocks/WORK)__ took a 14% plunge after the work messaging icon [reported](https://www.cnbc.com/2020/06/05/slack-stock-down-after-q1-earnings-slower-growth-than-zoom.html) 50% sales growth for its first quarter (compared with 49% the quarter before). Given the corona-conomy WFH frenzy, investors were expecting jaw-dropping numbers (like Zoom's 169% sales surge). With great hype comes great disappoint-ability. 

- __An apocalypse thriller...__ __[AMC Theatres](https://robinhood.com/stocks/AMC)__' headline-making [quarter](https://snacks.robinhood.com/newsletters/7nl8PEIlFGFKKefr2SL0WW/articles/30oszoyxCgWFTLfdGVVVdR/). The world's largest movie theater chain's 11K+ screens have been dark since March. In April, AMC suggested it had enough cash to make it until Thanksgiving. Now, it has "substantial doubt" about that — key issue: "We are generating effectively no revenue." AMC expects a $2B+ loss last quarter and even worse in the one we're in now. Its future depends on your choice to show up and studios choosing to make movies.

Lows

...and who's down

💼 April showers bring 2.5M May jobs 

__Warren Buffett just spat out his Coke...__ Exactly a month ago, the investment legend [sold](https://snacks.robinhood.com/newsletters/3o6fm1unqkQI9smatHu2oa/articles/26FCU1DkYrfGSkm5F7gNFJ/) __[Berkshire Hathaway](https://robinhood.com/stocks/BRK.B)__'s entire airline stake (at a $3.5B loss). Air travel was down 95% compared to 2019, and even long-term obsessed Warren gave airlines a vote of no confidence. But airline stocks have rebounded big since then:

- __Since May 5th,__ __[American Airlines](https://robinhood.com/stocks/AAL)__ stock is up 76%, __[Delta](https://robinhood.com/stocks/DAL)__ is up 59%, __[Southwest](https://robinhood.com/stocks/LUV)__ is up 45%, and __[United](https://robinhood.com/stocks/UAL)__ is up 62% — those are America's 4 largest airlines (and also the ones Berkshire sold). 
- __As the economy slowly reopens,__ airline stocks (along with other corona-conomy losers) have been some of the biggest gainers.
- __The hype for homebound stocks__ like __[Zoom](https://robinhood.com/stocks/ZM)__ and __[Slack](https://robinhood.com/stocks/WORK)__ has chilled — shares of both companies actually *fell* after they reported high-growth earnings (when success becomes boring). 

__But it all flies back to the data...__ Investors are focused on a fresh uptick in air travel, a trend that airlines believe will continue as summer approaches.

- __On April 16th,__ TSA checkpoint data revealed that passenger volume was just 3.6% of last year's. On June 3 (aka 2 days ago), that number rose to 13.6%. 
- __Airlines are adding more flights__ as demand picks up: American [plans](https://www.cnbc.com/2020/06/04/american-airlines-and-other-carriers-are-adding-summer-flights-as-passengers-slowly-return.html) to fly 55% of its domestic schedule in July, up from 20% in May.

"_You're in my middle seat_"

__Stocks rally because investors focus on the future...__ And the latest airline data suggests a slow (but steady) return to normalcy. COVID-19 still has no tangible solution. Trade tensions with China are bubbling. Civil unrest is breaking out nationwide. But the Nasdaq 100 just hit a record high and the S&P 500 is down only 8% from its February peak — all because investors are focused on a more blue-skied financial future. 

Airlines help explain the market rally — and their stocks are soaring to post-COVID altitudes 

__When you have the same name as a famous person...__ restaurant reservations come easier. __[ZoomInfo](https://robinhood.com/stocks/ZI)__ (*not* Zoom) is a subscription-based data service that companies buy for their sales teams. ZoomInfo's AI-powered database "crawls" the interwebs to retrieve the juicy deets that employees need to stalk their prey. And it takes a no-BS approach: the [slogan](https://www.zoominfo.com/) is basically "Hit Your Sales Number." 

- __Biggest tech IPO of the year:__ ZoomInfo shares [soared](https://www.cnbc.com/2020/06/04/zoominfo-rockets-over-80percent-in-first-tech-ipo-of-covid-19-era.html) over 60% in its Nasdaq debut yesterday — it's also the 1st tech IPO of the corona-conomy.

__Business reach relies on customer reach...__ And customer reach relies on the quantity and quality of info you have on your customers. ZoomInfo — which was formed out of DiscoverOrg — is trying to provide that:

- __15K customers__ use ZoomInfo's data fetching service to build out and reach their sales network — that automates things like building out org charts and collecting emails/digits of potential leads. 
- __Tech giants__ like __Salesforce__, __Oracle,__ and __Microsoft__ have integrated ZoomInfo with their own sales tools. Fun fact: 90% of the __Zoom Video__ sales team ironically uses the ZoomInfo platform to prospect (#meta).









_Crawling the interwebs for sales lead info_

__ZoomInfo is the dairy farmer...__ But it doesn’t control the milk (aka, the data). It highlighted a key risk in its IPO filing: “*We rely heavily on internet search engines.*” ZoomInfo's core subscription product depends on Google to reel in its customer-stalking info — but search engine algorithms can change, putting it at risk of losing its sales milk. 





Biggest tech IPO of the year: ZoomInfo's data-crawling biz valued at $13.4B

 🔎 Biggest tech IPO of the year

__Warner has got New Rules...__ as a [newly](https://www.reuters.com/article/us-warner-music-ipo/warner-music-strikes-a-chord-as-shares-pop-on-nasdaq-debut-idUSKBN23A1IN) publicly-traded company. __[Warner Music](https://robinhood.com/stocks/WMG)__ stock popped 20% during its first day on Nasdaq (ticker symbol WMG — so much for JAM). Warner owns major labels like  Warner Records and Atlantic Records, signing deals with Dua Lipa, Cardi B, and Ed Sheeran's vocal chords. 

- __It's the third largest of the music "[three-opoly](https://snacks.robinhood.com/newsletters/1WiwiJZ2IRsY4gKeFWU4um/articles/4sBaguWCpI98yjIJ31UiSz/),"__ after __Universal Music__ and __Sony Music__. Those two are owned by big conglomerates, making Warner the only pure-play "music stock."
- __It's the biggest American IPO in 2020__ so far — Warner saw enough market momentum to take its music public as the economy begins to pick up. 

__Thinking out loud...__ Streaming music success makes sense, but what about the blow from cancelled concerts? Warner did lose out on concert promotions and tour merch. Buut — streaming has been accounting for more of Warner's biz each year:

- __Recorded Music made up 86% of Warner's total sales__ in [2019](https://www.sec.gov/Archives/edgar/data/1319161/000119312520026877/d805716ds1.htm), and that was mostly thanks to streaming sales/licensing, which popped 23%.
- __Warner signs artists and negotiates__ with streamers like __[Spotify](https://robinhood.com/stocks/SPOT)__ to get paid on listens, then dishes out [40%](https://www.rollingstone.com/pro/features/warner-music-group-ipo-ar-costs-952821/) of that as artist royalties. 
-   __Warner had a 12% surge in recorded music__ streaming sales this April, fueled by heavy hitters like Dua Lipa's latest album. The more streams, the more $$$.

_Rolling into the (virtual) IPO_

__Music could be COVID-proof...__ Unlike __[Live Nation](https://robinhood.com/stocks/LYV)__ and __[Eventbrite](https://robinhood.com/stocks/EB)__, whose entire businesses rely on people attending live events, Warner can stay afloat on digital revenues. When big live events do return (could be a while), they'll provide some added bonus bucks. Live Nation actually put in a [bid](https://www.hollywoodreporter.com/news/live-nation-puts-bid-warner-173655) to buy Warner's Recorded Music division back in 2011 (now its FOMO has turned into just MO).

Warner Music soars on its first day of public trading: it's the Cardi IPO

__Best actor in a heating role...__ Cream of Mushroom. In March, we talked about how canned soup is making a [comeback](https://snacks.robinhood.com/newsletters/2p7mRmqVVFiLJPwVlHXfcT/articles/4SfcbHp5u7jngjQt0s9Kjd/)  — __[Campbell](https://robinhood.com/stocks/CPB)__'s CEO was (pleasantly) *shocked* at a 1% sales growth driven by Millennials. Campbell's latest quarterly [earnings](https://investor.campbellsoupcompany.com/static-files/b4749261-fee0-4189-a812-605173e0f271) reveal soup is still thriving: 

- __Campbell's soup sales soared 35%__ and total sales jumped 15% during the 3 months ending April 26 (aka, pre to mid corona-conomy).
- __Confidence soared 100%__: Campbell's CEO expressed newfound confidence that elevated demand will continue, and Campbell's raised its 2020 sales forecast.

__A tomato bisque timeline...__ Consumer behaviors shifted quickly and dramatically with the quick/dramatic onset of COVID-19: 

- __Pre-corona:__ For years, consumers moved away from uber-processed packaged products (soup sales fell for 7-straight years), opting for fresher and less unpronounceable ingredient-packed foods (the reason why __[Kellogg](https://robinhood.com/stocks/K)__'s acquired Rx bars).
- __Early-corona:__ As fear/lockdowns set in, consumers super-stocked up on cheap and nonperishable foods like canned soup and Kraft mac & cheese with expiration dates in 2038.
- __Mid-corona:__ When unemployment rose and the economy took a major hit, the move toward cheaper, non-perishable Big Foods brands (like Campbell, __[Kraft](https://robinhood.com/stocks/KHC)__, __[General Mills](https://robinhood.com/stocks/GIS)__) continued.



_Sticking with the packaged cookies_

Slurp

__Consumer behavior usually doesn’t change so quickly...__ But when it does, it could be *sticky.* It literally took a force majeure global pandemic and economic crisis to get people mass buying Campbell’s soup again. Now, even as the economy slowly reopens and summer brings warm, non-soup-friendly weather, Campbell's CEO [believes](https://www.cnbc.com/2020/06/03/campbell-ceo-expects-elevated-demand-to-continue-after-soup-sales-soar-35percent.html) the trend will stick. “We do expect the stickiness, if you will, of these behaviors to continue moving forward." *If you will.* 

Campbell Soup soars on corona-conomy buying shifts — now canned soup might be "sticky"

__Blame the Trolls...__ It's been a wild year for the world's largest movie theater chain — we'd never thought we'd cover so many __[AMC](https://robinhood.com/stocks/AMC)__ headlines in our lives. AMC's 11K+ movie screens around the globe have been closed since mid-March — now everyone is biting their nails over how this blockbuster will end:

- __In April,__ AMC shares soared on word it had enough cash to survive until partial theater reopenings around Thanksgiving — AMC also said it would raise $500M in debt.
- __A few weeks later,__  [drama](https://snacks.robinhood.com/newsletters/76jnSWZc6iKnCka8DwnCwj/articles/12pFjiFXKs4qKrpQFtdJav) erupted over the *Trolls World Tour* movie, which was a smash success after Universal released it straight to streaming. Then AMC banned all Universal movies from its theaters.
- __In May,__ rumors [swirled](https://snacks.robinhood.com/newsletters/3E2MYqmOkTAKbBTKPPKQw7/articles/4IOYTvbMXdjgzwwFYRqYdL/) around the possibility of an AMC acquisition by __Amazon__.
- __*Now,*__ AMC [says](https://www.cnn.com/2020/06/03/media/amc-theatres-business-coronavirus/index.html) it has "substantial doubt" that it can remain in business. Lots of twists.

__"We are generating effectively no revenue..."__ Not the first thing investors want to see in a regulatory filing. But as we know, public companies are required to be brutally honest about financials.

- __Sales fell 22%__ in the first quarter, and AMC expects to have lost between $2.1B-$2.4B.
- __AMC still believes__ it has enough cash to survive until a reopening "this summer or later." But opening isn't the only issue...

__No one can be 100% self-reliant...__ Most businesses are reliant on others in some form or other to continue doing what they do. Even if *movie theater* restrictions are lifted, *movie studios* could still hold back on production and new film releases. Plus, some consumers might not feel comfortable going back to stranger-packed theaters for a while. These factors are out of AMC's control — but their timing will determine how long it can survive.

AMC’s 1st quarter is a drama-filled apocalypse thriller — that could end in failure

🎶 The Cardi IPO

__Stan Smith meets Millennial HENRY...__ Didn't see it coming. Brand collaborations usually happen between companies that don't directly compete  — think: Spotify and Uber, Ben & Jerry's and Netflix, Cheetos and Forever 21 (a classic). But __Allbirds__ and __[Adidas](https://robinhood.com/stocks/ADDYY)__ are shaking things up: 

- __The Team:__ Adidas, the sportswear giant that's obsessed with stripes, is [teaming](https://www.engadget.com/adidas-allbirds-lower-carbon-footprint-sneaker-153232460.html) up with Allbirds, the Millennial-friendly footwear unicorn that's *obsessed* with sustainability.
- __The Situation:__ The carbon footprint of sneakers made with synthetic materials ranges from 11.3-16.7 kg of CO2 per pair, according to Adidas. Allbirds says its sneakers take about 7.6 kg of CO2 to produce (a leg up, in terms of sneaker footprints).
- __The Collab:__ "[Create](https://www.allbirds.com/) the lowest carbon footprint performance shoe ever, with the ultimate goal of a net-zero product." Nice. 

__Put those (sneaker) heads together...__ Adidas and Allbirds will join their resources to reach their carbon-reducing, performance-maintaining goal. But what's in it for each brand?

- __Adidas wants to expand its sustainability rep:__ It shipped a sneaker made from the ocean's plastic waste, and one made from 100% recyclable material (now its Yeezy brand is working on an algae-foam clog). Adidas also promised to use only recyclable materials by 2024.
- __Allbirds wants to expand its performance rep:__ Its Silicon Valley approved everyday shoes are made out of wool and sugarcane waste (VC vest not included), but now it wants in on your sweat game. In April it released a running shoe made of sugarcane and eucalyptus. Delicious.






_Not the biodegradable eucalyptus seafoam sneaker type_

__It's all about brand affinity...__ Although Adidas and Allbirds directly compete in the footwear market, they each get a key brand value they need out of this collab. Without having to do a full blown brand/biz makeover, Adidas gains affinity with Allbirds' sustainability market, while Allbirds' gets some street cred with Adidas' athletic/performance market. In an era where brand is everything, collabing with a rival could become fashionable.




Adidas and Allbirds' unusual sneaker collab — it's all about the "brand affinity"

__Two roads diverged in the social media world...__ And __[Facebook](https://robinhood.com/stocks/FB)__ and __[Twitter](https://robinhood.com/stocks/TWTR)__ are definitely not on the same one. Last Friday, we talked about the [Twitter feud](https://snacks.robinhood.com/newsletters/6gEsMVqlGxt5w2dRl1MD3H/articles/6DJORdl1tbZXO3RABAheOP) that erupted when Twitter labeled President Trump's tweet about mail-in voting "potentially misleading." *Now,* a new Twitter feud is [pitting](https://www.wsj.com/articles/facebook-employees-stage-virtual-walkout-over-trump-posts-11591034647) two social media giants against each other:

- __It all started__ with a Trump tweet calling looters "THUGS" who are "dishonoring the memory of George Floyd." The really problematic part: "when the looting starts, the shooting starts." Trump cross-posted on Facebook.
- __Twitter flagged and shielded__ the Minnesota riots tweet, saying it violated its policy against glorifying violence. Users now have to click a box and read the notice to view it (and it can't be retweeted).
- __Facebook left the post up as is__ — its policy is to refrain from fact-checking or removing politicians’ posts, but also to remove posts glorifying violence. Zuck controls 58% of FB's voting shares — unlike most CEOs, he has final say over everything (including this). So...

__FB employees (literally) left the chat...__ Some employees staged a virtual walkout over Zuck's decision. Think: shutting down MacBook, deleting Zoom, signing out of Workplace (FB's Slack copycat). Some even changed their internal company profiles to Twitter's logo. Their arguments:

- __Zuck said__ that despite finding the post "deeply offensive," it's "better to have this discussion out in the open." He argues that FB is helping democracy by not shielding the President's post.
- __Twitter argues__ it's helping democracy by shielding people from the President's post. See the problem?


_Leaving the (Facebook) chat_

Post

__Government regulation is Facebook and Twitter's biggest threat...__ And it's even bigger now that Trump [signed](https://snacks.robinhood.com/newsletters/6gEsMVqlGxt5w2dRl1MD3H/articles/6DJORdl1tbZXO3RABAheOP) an executive order threatening their immunity from legal liability for their users’ posts/actions. Despite Trump's consistent [portrayal](https://www.newsday.com/news/nation/trump-in-tweet-facebook-is-was-always-anti-trump-1.14284707) of Facebook as an antagonist, FB has an interest in getting on the government's good-ish side (avoid regulation). But despite their diverging stances, any regulation that applies to Twitter will likely apply to Facebook, too.

Facebook and Twitter are taking majorly divergent paths (and a "virtual walkout") because of Trump posts

👟 Adidas runs with Allbirds

__My lipgloss is droppin'...__ Kylie Jenner was a human unicorn (aka, a billionaire) — she may have lost her horn. In August 2018, Forbes celebrated Kylie with a glossy cover as she neared billionaire status thanks to the success of __Kylie Cosmetics__. An exclusive distribution deal with __[Ulta](https://robinhood.com/stocks/ULTA)__, which sells Kylie's $29 Lip Kits at 1K+ stores, seemed to seal it:

- __In March 2019, Forbes [confirmed](https://www.forbes.com/sites/natalierobehmed/2019/03/05/at-21-kylie-jenner-becomes-the-youngest-self-made-billionaire-ever/#38d025d22794)__ that the then 21-year-old beauty mogul was "The Youngest Self Made Billionaire Ever" (insert sad Zuck). 
- __In January 2020, Kylie brought home $600M__ after selling 51% of Kylie Cosmetics to 116-year-old beauty giant __[Coty](https://robinhood.com/stocks/COTY)__. 
- __The deal was valued at a snatched $1.2B__ — Kylie still owned 49% of the company, adding around $600M in value to her $600M cash (quick math: billionaire). 

__The truth is more Matte than Glossy...__ Forbes just published an [article](https://www.forbes.com/sites/chasewithorn/2020/05/29/inside-kylie-jennerss-web-of-lies-and-why-shes-no-longer-a-billionaire/#229454d825f7) titled "Inside Kylie Jenner's Web of Lies" (big tonal shift here). Financial filings from publicly traded Coty reveal that Kylie’s business is much smaller (and less profitable) than the media was led to believe:

- __What the Jenners told the media:__ Kylie Cosmetics did $307M in 2016 sales, $330M in 2017 sales, and $360M in 2018 sales.
- __What Coty revealed:__ Kylie Cosmetics did $125M in 2018 sales and $177M in 2019 sales. 
- __If the 2016/2017 numbers are true__ (the 2018 ones definitely aren't), Coty paid a fortune for a "high growth brand" whose sales shrank from $330M to $125M in one year — instead, Forbes thinks the tax returns it was shown as proof of value were likely forged.


_Questioning the Lip Kit_

Beautify

__Much more important than Kylie's billionaire status...__ Is it Securities Fraud? Publicly traded companies like Coty are required by law to report (accurate) financials each quarter to the [SEC](https://learn.robinhood.com/articles/1iinrIv3s01qSQVEBvYhNj/what-is-the-securities-and-exchange-commission-sec/). Public execs can be criminally charged for lying about company-related things (and misleading public investors like us). Buuut — since Kylie Cosmetics was *private*, what actually matters is whether the info presented to Coty in the [purchase agreement](https://www.sec.gov/Archives/edgar/data/1024305/000102430520000016/a101-purchagrmtkingkyl.htm) was accurate. And Coty signed it. 

Kylie Cosmetics may be worth much less than the media thought — but is it fraud?

__Words With Friends across the Atlantic...__ __[Zynga](https://robinhood.com/stocks/ZNGA)__ is the social gaming giant behind mobile hits like FarmVille, WWF, and Okey Plus. Okay, if you've never heard of Okey Plus, you probably haven't spent much time in Turkish coffee houses. 

- __Zynga just dropped a super-charged $1.8B__ to [buy](https://techcrunch.com/2020/06/01/zynga-acquires-turkeys-peak-games-for-1-8b-after-buying-its-card-games-studio-for-100m-in-2017/) Istanbul-based gaming company, __Peak Games__ — it's the first $1B+ acquisition of a Turkish startup. 
- __This isn't Zynga's first cruise down the Bosphorus:__ In 2017, Zynga snatched up Peak's mobile card games division (which includes rummy-style Okey Plus) for $100M.

__Spill the Raki...__ This acquisition is a huge growth opportunity for Zynga and its in-game buying biz (tokens, etc), as well as its smaller advertising biz (those things you accidentally click on mid-game):

- __Instant Success:__ Peak's Toon Blast and Toy Blast titles have more than 12M daily users combined and are among the highest-grossing games in the App Store — Zynga doesn't have to pour time and money into developing a hit-or-miss game (they're already hits).
- __Global Reach:__ Most of Peak's users are outside of Zynga’s home market (the US) — Zynga says cross-selling across Peak's users will boost its total daily users by 60%. Zynga thinks that'll win it a $40M sales boost for the year.

"_I will make this deck of cards turn into $1.8B_"

Play

__Zynga acquired its way back to relevance...__ And relevance is all about the "forever franchises" — aka, games that outlive fad-status. After its 2011 IPO, Zynga stock plummeted 80% in its first public year. But the stock has tripled over the past 5 years, because Zynga realized it doesn't have to consistently make popular games to offer popular games. It can buy them — and it's spent nearly $1B on acquisitions since 2017. 

Zynga drops $1.8B to acquire Turkey's Peak Games — biggest Turkish startup exit ever

💄 Kylie pulled a Luckin Coffee

__Like Benjamins in the freezer...__ Despite [41M](https://www.npr.org/sections/coronavirus-live-updates/2020/05/28/863120102/40-8-million-out-of-work-in-the-past-10-weeks) jobs lost in the past 10 weeks and a stunning 15% unemployment rate, Americans' household saving and personal income posted record *increases* in April. It's confusing, but it also makes sense. Check out these April stats:


- __Consumer spending plunged 13.6%__, *the biggest monthly decline on record*. Not surprising given nationwide lockdowns. Americans mainly spent on essentials given the economic uncertainty. Buut... 
- __Personal income jumped 10.5%__, thanks to $1.2K government stimulus checks and $600/week extra in unemployment benefits. According to a new study, [68%](https://fivethirtyeight.com/features/many-americans-are-getting-more-money-from-unemployment-than-they-were-from-their-jobs/) of unemployed workers who can receive benefits are eligible for payments *larger than* their original salaries. 
- __Wages and salaries fell 8%__ but that was more than [offset](https://www.wsj.com/articles/consumer-spending-personal-income-coronavirus-april-2020-11590701150?mod=hp_lead_pos4&mod=hp_lead_pos4) by unemployment/stimulus checks. *People made more money this April than last April, on average*. 
- __The personal-saving rate soared to 33%__ in April, meaning Americans saved 33% of their disposable income — *an all-time high*. That's a dramatic increase from 12.7% in March and is quadruple February's rate of 8.2%. 

__Americans are historically terrible savers...__ The United States is a more consumerist and debt-loving country with inequality that has many living on the financial edge. 

- __[78%](https://www.cnbc.com/2019/01/09/shutdown-highlights-that-4-in-5-us-workers-live-paycheck-to-paycheck.html) of US workers__ were living paycheck to paycheck in January 2019 — around [40%](https://www.axios.com/americans-emergency-savings-coronavirus-f11deffc-b8c1-48e0-a3db-0aeb3ce74fb9.html) of US households wouldn't be able to come up with $400 for an emergency expense.
- __Now that jobs and economic stability are far from a sure thing__, Americans are turning to saving as a survival instinct in a time of crisis.


_Checking out the emergency fund_

Save

__Too much saving could actually hurt the economy...__ A prolonged period of extra saving and conservative spending will slow the economic rebound — your not buying is someone else's [not earning](https://learn.robinhood.com/articles/29d9WQgPq119raQYS1Wm6H/what-is-gross-domestic-product-gdp). Crucially, the enhanced unemployment benefits and small biz loans keeping many afloat start to run dry in July. So we need some combo of economic re-opening, COVID outbreak control, and more government emergency assistance. Fast.


Americans have shockingly higher incomes than pre-COVID — what April meant for our wallets

- __Napping on the Pottery Barn couch...__ __[Williams-Sonoma](https://robinhood.com/stocks/WSM)__ is the CA-based home goods retailer behind Pottery Barn, West Elm and (wait for it...) Williams-Sonoma stores. Its stock surged 13% after unboxing some chic (*yet comfortable*) [results](https://ir.williams-sonomainc.com/investor-information/news-releases/news-release-details/2020/Williams-Sonoma-Inc-announces-strong-results-for-the-first-quarter-of-2020/default.aspx): despite closed stores, WS sales actually grew thanks to its online prowess (it's now calling itself: "digital first"). Ecommerce sales jumped 30% on lockdown-induced home makeovers.


- __Less CBD protein powder promos in-feed (please)...__ __[Facebook](https://robinhood.com/stocks/FB)__-owned Instagram will [share](https://snacks.robinhood.com/newsletters/712Ibsc2krjNf8bYFdUGZm/articles/5gQaNkwPYGtwKv3SL2WdnV/) ad revenue with influencers for the first time (ever). Insta will run ads on IGTV, then give creators a 55% cut of revenue from their vids (__[Google](https://robinhood.com/stocks/GOOGL)__ does the same with YouTube). This move could help Insta lure more famous creators (like big YouTubers) onto IGTV. Popular creators = popular content = more users = more ad $$$ for Facebook. YouTube got Zuck'd. 

- __A billion up in smoke...__ Earth's largest cannabis company, __[Canopy Growth](https://robinhood.com/stocks/CGC)__, took a [$1.3B](https://markets.businessinsider.com/news/stocks/canopy-growth-stock-recreational-pot-demand-sinks-amid-pandemic-marijuana-2020-5-1029264349) hit last quarter. The Canadian pot producer saw a 14% decline in direct-to-consumer sales, which it blamed on "off-peak seasonal demand decline" and COVID-related store closures. Canopy burned its 2021 financial guidance and its stock dropped over 21% on the buzz-kill news. 

- __When Liam Hemsworth can't extract you...__ Mobile-first streamer __Quibi__ may be running out of time to turn its "meh" reputation around. Two months after launching, the $1.8B "quick bites" streamer hasn't lived up to the hype. Now advertisers are [reportedly](https://www.wsj.com/articles/advertisers-seek-to-revise-deal-terms-with-streamer-quibi-11590519825?mod=djemalertNEWS) looking to defer payments over low viewership concerns. Those in-between moments in life Quibi was designed for aren't happening with COVID, so Quibi's adding AirPlay streaming in hopes that'll attract more at-home viewers.