__A bird of many colors...__ __NBCUniversal__ (owned by __[Comcast](https://robinhood.com/stocks/CMCSA)__) just unveiled details on the 271,366,768th player in the streaming wars, [Peacock](https://www.vox.com/recode/2020/1/15/21066676/peacock-streaming-nbc-comcast-fallon-tonight-news-olympics). Here's how much you'll pay/get with NBC's streaming option: 

- __Basic version:__ A free, ad-supported service with lots of shows, including live sports/news (and all seasons of *The Office*, which leaves Netflix in 2021)
- __Premium version:__ *Double* the number of shows/movies as Basic (also ad-supported). But free for Comcast/Cox cable subscribers and $5/month if you're not. This one gets you the Olympics and late-night talk shows too (Basic doesn't).
- __Extra premium:__ For an extra $5/month (for both cable subscribers and cord-cutters) the ads go away.

__Catch 'em all...__ Peacock is a play to offer great streaming, but not so great that Comcast's cable customers cut the cord. Great-*ish*. Peacock's entering a crowded pool:

- __Streaming Natives:__ They've been streaming since the start (__Netflix, Quibi, YouTube TV__).
- __Cable Dinos:__ Traditional media companies that are transitioning to the streaming world (__Comcast, Disney, AT&T, CBS__).
- __Perk Bait:__ These companies' core products have nothing to do with TV, but they offer streaming shows/movies as a perk to lure you into their main products/services (__Amazon, Apple__).

_Streaming vs. cable: "Whose side are you on?"_

Stream

__Trying to keep everyone happy...__ is like spending an hour at 3 different parties (on the same night). Streaming Natives like Netflix are 100% committed to streaming. Perk bait like Amazon Prime doesn't disrupt Amazon's core product. If NBC went all in on streaming, it would disrupt its main biz (Comcast's cable TV) by accelerating cord-cutting. Disney is willing to lose its cable TV biz by going all-in with Disney+ — Comcast wants it all (cable *and* streaming). We'll see if the strategy works.

NBCUniversal unveils streaming service Peacock – it's good, but intentionally not *too* good

__To build or not to build...__ a __Huawei__-powered 5G network. That's what Germany's asking itself — China just threatened "[consequences](https://www.nytimes.com/2020/01/16/world/europe/huawei-germany-china-5g-automakers.html)" if Germany doesn't partner with the Chinese-owned tech giant Huawei to build its 5G future. Some context:

- Germany is __big on cars__ (think Volkswagens, BMWs, Mercedes).
- And the German brands __sell more cars to China than anywhere else__ on earth.
- But the __US is pressuring Germany__ to not work with Huawei.
- Now China's __threatening to hit Germany's car industry__ if this Huawei deal gets frozen out.

__Feeling the pressure...__ The US is leaning on Europe to avoid Huawei — it's worried the tech company is acting like a Chinese gov spy on American/Euro communications (so it's threatening fresh tariffs). But now that China's pressuring Germany's prized auto industry, German chancellor Angela Merkel faces an even tougher decision: US or China. 


Connect

__Between a rock and China...__ Despite the influence of US pressure, the global economy is also heavily dependent on China: (cough, 1.5B people and the world's 2nd largest economy, cough). China's increasingly using that size to pressure not just industries, but entire countries. Here's where else we see it:

- __Big Hollywood studios__ often won't produce movies critical of China — The last *Avengers* brought in $614M in China alone.
- __British soccer team Arsenal__ distanced itself from a player who was critical of China’s treatment of Muslims.
- And over in hospitality, __airlines and Marriott hotels__ have apologized  (profusely) for listing Taiwan as a separate country.


China holds German car companies hostage in the 5G battle

__After a walk down memory lane...__ '90s hoodie legend __[Gap](https://robinhood.com/stocks/GPS)__ decided yesterday that it won't spin off __Old Navy__ into a separate company. Gap shares spiked 9% on news of the breakup reversal (awkward, because the stock also jumped on the breakup announcement last Feb). Looks like investors changed their minds about this relationship (and sometimes stock moves don't make sense).

__The initial idea...__ was that Gap and Old Navy would be [better](https://www.marketwatch.com/story/gap-has-three-reasons-its-committed-to-spinning-off-the-old-navy-brand-2019-11-22) able to serve their distinct customers and business needs by operating as separate companies (i.e., break up to fulfill their own unique growth paths). It changed course for two main reasons:

- __Cost:__ Breaking up is hard, and sometimes expensive – Gap said that the costs/complexity involved in the split wasn't worth it.
- __Revelation:__ While Gap was prepping for the breakup, it noticed areas for improvement and inefficiencies in Old Navy's biz that they can now work on.
- __FYI, reality:__ Gap is the slowest growing and least profitable of all its brands (Banana Republic, Athleta, Hill City...), so it can still piggyback off Old Navy — but now Gap shareholders won't earn a payout from selling off their top brand.

Stay

__2020 could be the year of relationship re-evaluation...__ Big clothing retailers were looking to split off their best/worst brands throughout 2019 — Gap's move could change that trend.

- Analysts wonder if __[L Brands](https://robinhood.com/stocks/lb)__ could spin off its struggling __Victoria's Secret__.
- __J. Crew__ planned to spin off its better-performing __Madewell__ brand.
- And __[V.F. Corp](https://robinhood.com/stocks/vfc)__ already spun off __Lee__ and __Wrangler__ into a separate denim-obsessed publicly-traded company, __[Kantoor](https://robinhood.com/stocks/ktb)__.


Gap reverses plans to spin off Old Navy into separate company

Dow Jones

S&P 500

Nasdaq

Bitcoin

10-Yr US Treasury

NBC's Peacock = The "flaky friend" of streaming

__Phase 1...__ Complete. After 2 years of trade-war-ing that shook up global markets, the US and China [signed](https://www.npr.org/2020/01/15/796305300/trump-to-sign-phase-one-china-trade-deal-but-most-tariffs-remain-in-place) an agreement that de-escalates the situation. It looks like China's making (almost) all the policy changes and concessions:

- __USA gets more exports:__ China agreed to increase the amount of American goods it buys by $200B total over 2 years (ship off the soybeans, grains, manufactured parts).
- __USA gets access:__ China also agreed to open up its market to American financial companies (__Mastercard__, __Visa__, and __AmEx__ got shoutouts), which were previously banned/denied.
- __USA gets vague promises:__ China infamously forces US companies that want to operate there to first give up their biz secret sauce. China denies it does this (despite evidence) and promises in this deal not to. FYI, China won't change laws to enforce this.
- __China still gets most tariffs:__ The US is keeping tariffs on 3/4 of what Americans import from China, aka __$370B__ worth of stuff each year. Trump said these "will all come off" if future negotiations lead to agreement part-two (he kept them on as leverage).

__Another thing China gets (but not part of the actual agreement)...__ The US will cancel planned tariffs on Made in China consumer goods that would've made Apple and Nike products 25% more expensive for Americans. Plus, it cut existing tariffs on another __$120B__ of Chinese goods in half. Boom.

_It's a (half) deal_

Sign

__The goal of the Trump tariffs...__ was to get Americans to buy less Made in China goods, hurting China's economy and pressuring it to change. US imports of Chinese goods actually rose in 2018, but are now [down](https://www.census.gov/foreign-trade/balance/c5700.html) 17% from 2017. Meanwhile, PBS estimates the average American household will pay [$800](https://www.pbs.org/newshour/economy/making-sense/what-trumps-tariffs-have-cost-the-u-s-economy) per year in higher costs thanks to tariffs — that's a total $102B annually in costs for Americans (those tariffs haven't gone away).

The US and China (finally) sign a partial trade agreement — but Trade War's still on

__"We now will have 'The Child'"...__ AKA, Baby Yoda. Your go-to elementary school bday venue, __[Build-A-Bear](https://robinhood.com/stocks/BBW)__ is [debuting](https://www.businessinsider.com/build-a-bear-baby-yoda-stuffed-animal-2020-1) a Baby Yoda stuffed toy to satisfy the unquenchable thirst for Baby Yoda-anything (aka the Yodaconomy). The adorable *Star Wars* character should be available within the next few months.

__"Trending higher than all the presidential candidates combined..."__ That's what Build-A-Bear's CEO thinks of Baby Yoda. She's not wrong. Because Disney kept Baby Yoda a secret, __Hasbro__ [missed](https://snacks.robinhood.com/newsletters/GptbTfH3TGCsKNYjP48YR/articles/4Dxd9TfAdmR3vc02BBEdSw) a huge opportunity (and millions of $$$) by showing up late to the yoda-bae party. Here's the deal:

- Hasbro's the __exclusive official toymaker__ of Disney franchises (including *Star Wars*).
- But __there's a carve-out__ for stuffed ~~animals~~ Jedi.
- Since Hasbro won't get yoda toys out until May, __Build-a-Bear could be the only Baby Yoda__ option for a few months. 


_"So I'm going to be stuffed?"_

Play

__Timing and partnerships are key...__ But monetization is endless. When a character is as popular (and memeable) as Baby Yoda comes out, Disney's money-making possibilities hit galactic proportions. Licensing deals with companies like Disney are critical to Build-a-Bear's success — Almost 1/2 its sales are now from toys meant for tweens, teens, and (*Star Wars*-loving) adults.


Build-A-Bear Workshop cashes in on Disney's Baby Yoda

__Got Plant?...__ __Califia Farms__ does, and it wants to take over the nut-based dairy market. The alt-milk maker just got a [$225M check](https://techcrunch.com/2020/01/15/plant-based-milk-substitute-market-gets-frothy-with225-million-for-califia-farms/) in its latest funding round (led by a Qatar's state-owned fund). Califia makes Vanilla Almondmilk Creamer, Unsweetened Oatmilk, and even Nitro Cold Brew Latte (with oat milk, duh).

- __Fruit-full:__ Founded in 2010, Califia started as a juice company for "imperfect" fruits (a weirdly-shaped carrot is still totally juicable). 
- __Plant-full:__ It's pivoted to dairy subs only, becoming the #3 biggest plant-based milk maker (you might recognize their dress-shaped bottle).
- __Cash-full:__ The company will use its fresh cash to go deeper into plant-liquid-based options (think creamer, yogurt, and ice cream).

__Feel-good mission + aesthetic packaging...__ But can that beat alt-dairy rivals like hipster __Oatly__, lactose-legend __Chobani__, or pea-based __Ripple__? We know plant-based milks have disrupted the dairy industry (US consumption of cow milk keeps [dropping](https://www.cnbc.com/2019/11/13/5-charts-that-show-how-milk-sales-have-changed.html)). So Califia is trying to stand out with its *brand*, but...


_"So you're saying I can drink this?"_

Plant

__Does brand matter?...__ Customers will often pay more for a premium brand they know/trust/love. And brands matter for plant-based meat: *Impossible* Whopper and *Beyond* Breakfast Sandwich. But alt-milk... might just be alt-milk. Starbucks offers almond milk, but doesn't advertise the brand in your latte. Califia's using its fresh cash to build a brand to beat that.

Califia Farms raises $225M to scale plant-based dairy everything

Phase 1 complete (but Trade War still on)

__Whip out the corporate card...__ __[Visa](https://robinhood.com/stocks/V)__ is swiping $5.3B to treat itself to __Plaid__. You've used Plaid and didn't even know it — the FinTech unicorn [connects](https://www.forbes.com/plaid-fintech/#38bb0e2367f9) your old school Citi, Bank of America, or Wells Fargo bank account to financial apps like Venmo, Robinhood, or Coinbase. Here's how Plaid's more like a financial bouncer (call it "the club analogy"):

- __ID Scan:__ After downloading Venmo, you enter your *bank account* login info on *Venmo* to pay Ashley back for the $15 cocktail — Plaid grabs that username/password.
- __Bouncer:__ Once Plaid verifies the ID with your bank, your checking account gets in to party in Venmo. 
- __Security:__  Plaid securely holds your bank info so that it can safely travel across the web (like a Chanel purse left at coat-check).
- __Stamp:__ You're in — Your account is linked to Venmo. That bank account doesn't need to show ID again.

__Plaid is a bouncer with connections...__ It's a low-profile service, but it dominates the fast-growing financial app space:

- Plaid connects __200M__ accounts at __11K__ banks to  __2,600__ FinTech apps.
- A whopping __25%__ of Americans have connected their accounts to a fintech app through Plaid (anyone still use Mint?).

_"We'll never get through Plaid with this"_

__Keep your friends close...__ and your enemies acquired. Think of the financial info Plaid has access to — LendingClub can use your debit card data to learn your spending habits, then decide on a loan for you. With the same info, Plaid could someday offer its own credit card — aka a Visa competitor. So Visa snagged Plaid instead, before its other investors (*Citi, Mastercard, Goldman, AmEx)* could.

Plaid, the financial bouncer of fintech apps, gets acquired by Visa for $5.3B

__Big money mood...__ How __[JPMorgan Chase](https://robinhood.com/stocks/jpm)__ is feeling after its biggest year of profit, ever (and best year of any bank in US history, nbd). While you racked up travel points with Chase Sapphire Reserve, JPMorgan pulled in $36B in profits for 2019 (a 12% increase from 2018) — *that 1-year profit is more than twice Lyft's entire company valuation, aka Lyft's [market capitalization](https://learn.robinhood.com/articles/GByCbiOluG2kcWs1AF6m5/what-is-market-capitalization/)*.

__More than [half](https://www.wsj.com/articles/jpmorgan-chase-reports-profit-rose-21-11579003228) of Americans are customers...__ of JPM's retail bank, Chase. Here's how it got so intimate with so many US wallets:  

1. __Lotta acquisitions:__ JPM merged with __Chase__ (the #3 largest bank at the time) in 2000, bought __Bank One__ in 2004 (#6), and then scooped up __Bear Stearns__ and Washington Mutual during the '08 financial crisis.
2. __Insane branches:__ In the app age, physical bank branches are still somehow big. JPM Chase's 4,900 branches and 16K ATMs only trail Wells Fargo. It added 400 more branches last year.
3. __Perks on perks:__ Everyone has that friend obsessed with their Chase Sapphire card — it's so popular, they [ran out](https://money.com/chase-sapphire-reserve-new-fee/) of the metal to make it. 

Bank

__JPM's success reflects Wall Street and Main Street...__ JPM's stock has risen thanks to the kumbaya good times on stock markets and the broader economy right now. Here's what its record profit screams:

- __Wall Street__ ...booming. Stocks are at record highs thanks to rising profits, fueling investing banking activity for JPM.
- __Main Street__ ...booming. The unemployment rate is at a record low, which drives demand for JPM's lending and retail banking biz.
- __Taxes__ ...cut thanks to Tax Cuts and Jobs Act of 2017. Overnight, companies became way more profitable as they shipped less money to the IRS (JPM's tax rate was 18% last year). 

JPMorgan Chase has the most profitable year of any American bank, ever

_"We'll never get through Plaid with this!"_

JPMorgan owns 1/2 of America’s wallets

__Water is the essence of wetness...__ for __[Cott Corp](https://robinhood.com/stocks/cot)__. Canada's drinks/filtration company treated itself to acquire __[Primo Water](https://robinhood.com/stocks/prmw)__ for $775M. Cott's so enamored with water that it sold off its soft-drink biz and quit coffee/tea. Now it's even adopting Primo's entire brand — Cott is marrying Primo, taking its name, and paying it $775M. 

__Primo follows the ol' *razor/razor blade* biz model...__ You're lured in with cheap razors, but then have to refill with pricier blades (#hygiene). With water, Primo can barely make any money (but hook you) with its water dispensers, then make bank when you come back to exchange/refill your huge water jugs:

- __Low Margin:__ The *claaaassic* boulder-sized hot/cool water dispensers dominating your office kitchen — *they're barely profitable for Primo (8% [profit margin](https://learn.robinhood.com/articles/2jlpKewku8iEaalz6xrKna/what-is-profit-margin/)).*
- __Higher Margin:__ Pre-filled plastic water jugs delivered to offices and homes nationwide — *pretty profitable ([30%](https://www.cott.com/wp-content/uploads/cott/presentations/Cott_Corporation_to_Acquire_Primo_Corporation_Announcement_January_13_2020.pdf) margin).*
- __Highest Margin:__ FYOB (fill your own bottles) using Primo's filling machines at over 23K locations like Safeway, Walmart, and Costco — *the most profitable (31% margin).*

_New water company corporate mascot_

Hydrate

__Do less, more...__ Companies like __Coca-Cola__ try to do more, more. Coca-Cola is a soda company, but it owns hundreds of non-soda brands from Dasani to Vitaminwater. Cott's doing the opposite: selling off its non-agua brands to focus solely on water (btw — it owns green glass bottle legend Mountain Valley).

- __Upside:__ Cott can *do more* with one product — Hydrating health is [trendy](https://www.nytimes.com/2020/01/04/style/self-care/hydrate-hydrate-hydrate.html) along with sustainable bottles. Plus, everyone literally needs it to survive.
- __Downside:__ But Cott could get cott if the trends disappear — Water surpassed soda as America's favorite bottled beverage in 2017, but it could just be a fad.

Cott acquires Primo Water to become Big H2O

__Selling search data is so 2019...__ That's why __23andMe__ is capitalizing on your DNA instead. The genetic testing unicorn first helped you find your long-lost cousin from Angola. Now it's [sold](https://www.popularmechanics.com/science/health/a30499708/23-and-me-dna-drug/) the rights to a psoriasis drug it developed using its very own genetic database.

- __Old News:__ 23andMe sold access to its users' DNA to __[GlaxoSmithKlein](https://robinhood.com/stocks/GSK)__ in 2018 — GSK uses it to research and develop their own medicines.
- __New News:__ For the first time, 23andMe developed and licensed a drug itself, thanks to research made possible by its giant set of saliva samples — the buyer is Spanish pharma company, __Almirall__.
- __*Key News*:__ 10M customers have sent 23andMe their saliva in a tube to get their DNA analyzed — and 80% of them opted-in to participate in research (without gaining any financial benefit).

__You are the product...__ literally. 23andMe makes money selling DNA kits ($99-$199), selling its DNA data to a pharma company, and now also by developing (and selling) its own drugs. All these money moves involve your DNA, which you're paying them to give them. 

_"There are 10 million more where that came from..."_

Cure

__23andFree?...__ What if 23andMe made its core product (DNA ancestry kits) free instead? That would probably add millions of new customers, leading to more genetic info... which could lead to more drugs developed from all that extra research. That would make 23andMe look more like Facebook — it's free, but Facebook (and Insta) use your data to deliver you targeted ads. That's how FB makes $$$.

23andMe is using your saliva to cure diseases (and make money)

2020 Resolution: Become a water company

__After a restful private sleep...__ direct-to-consumer mattress unicorn __Casper__ wants to [go public](https://www.inc.com/business-insider/casper-mattress-sleep-startup-ipo-paperwork-.html?icid=readmoretext_ab). While you munch açai (food health) after a yoga/spin-hybrid class (workout wellness), Casper thinks you forgot the 3rd pillar of the health/wellness trend: *sleep*. The self-proclaimed "pioneer of the sleep economy" cut out the middleman and basically put __Mattress Firm__ out of business - so we jumped into its IPO paperwork. 

__These numbers woke us up...__ *Spoiler:* Just like Lyft/Uber/Slack/Pinterest, Casper isn't profitable — despite $358M in 2018 revenues, its loss jumped to $92M.

- __$423M:__ How much it __splurged on marketing__ since 2016 to stick its dreamy ads across basically every subway car ever.
- __$80M:__ The amount __lost on returns/refunds/discounts__ in 2019. *That cost is 23% of its revenues.*
- __16:__ The number of __new sleep economy products__ it's working on: sleep pills, vitamins, sprays, medical machines, counseling, and meditation.
- __100%:__ In cities with one of the __60 Casper retail stores__ (great for midday napping), its online sales grow 100% faster than cities without them.
- __3:__ The number of direct-to-consumer mattress rivals Casper mentioned (Purple, Leesa, Brooklinen) — there are __nearly [200](https://www.inc.com/business-insider/casper-mattress-sleep-startup-ipo-paperwork-.html?icid=readmoretext_ab) other copycat competitors__ it didn't mention.
- __201, 136, and 9:__ The number of times Casper mentioned __"brand," "mattress,"__ and __"profitable"__ (#priorities)

_That "ready to go public" look_

Snooze

__Casper wants to be the "Nike of Sleep"...__ but it's really the "Peloton of Slumber." Many moons from now, Casper may turn into a profitable, global brand with an array of products. Right now, it's closer to the spin-bike startup that recently IPO'd:

- Both are dependent on __1 big, expensive product__ (mattresses/bikes)
- Both promise __new things__ are coming (sleeping pills/rowing machines)
- Both may __never become profitable__ (losses this year are bigger than last year)
- Both rest their future on connecting with you __via technology__ (apps, apps, apps)
- Both depend on Millennials' still loving __health/wellness__ 

Mattress unicorn Casper awakens for an IPO

__Above and beyond...__ __[Beyond Meat](https://robinhood.com/stocks/BYND)__ stock rose 27% last week thanks to two plant-based patties of good news. First, __[McDonald's](https://robinhood.com/stocks/MCD)__ announced it's [expanding](https://www.reuters.com/article/us-mcdonald-s-beyond-meat/mcdonalds-expands-beyond-meat-plant-based-burger-trials-in-canada-idUSKBN1Z71F7) its PLT sandwich (BLT, sub the bacon for plant-y Beyond) to a total of 52 Canadian locations. Then, alt-meat rival __Impossible Foods__ dropped out of the competition for the holy grail McD's US partnership — Beyond's rival is focused on Impossible Pork over Impossible Big Macs.

__Musk be love...__ __[Tesla's](https://robinhood.com/stocks/TSLA)__ stock has jumped 35% over the past month, [becoming](https://snacks.robinhood.com/newsletters/69T8jIdyvII6POb1h9ZKt0/) the most valuable American car company *ever*. __[GM](https://robinhood.com/stocks/GM)__ and __[Ford](https://robinhood.com/stocks/F)__ produced a combined 39x as many cars as Tesla did in 2019, but the electric carmaker is now more valuable than GM and Ford *combined*. Oh, and Tesla lost almost a billion dollars over the past year while GM and Ford made over $10B in profit. Investors care more about *future* profits, and they think Tesla's e-cars *are* the future.





Highs

Who's up...

__Like OPEC, but for chocolate...__ The Ivory Coast and Ghana combined produce [over 60%](https://www.wsj.com/articles/new-cocoa-cartel-could-overhaul-global-chocolate-industry-11578261601) of Earth's cocoa. Now they're teaming up cartel-style (we're calling it "CHOPEC") to jack up the chocolate ingredient's price 16% by October to boost farmer pay. __[Hershey](https://robinhood.com/stocks/HSY)__, M&Ms-maker __Mars__, and Oreo-making __[Mondelez](https://robinhood.com/stocks/MDLZ)__ already see cocoa processing prices rising — investors are wondering if/when they'll pass that cost on to you, us, and the Halloween candy bowl.

__Aaaand more problems...__ for __[Boeing](https://robinhood.com/stocks/BA)__, which released damning internal emails for the Congressional investigation into the flawed 737 Max plane. Boeing employees forgot Mom's advice that almost nothing on the internet is private, describing the plane as "designed by clowns," "supervised by monkeys" via email. They also referenced [concealing](https://www.marketwatch.com/story/boeing-papers-show-employees-slid-737-max-problems-past-faa-2020-01-11) problems in order to snag FAA approval, and not wanting to put their families on a MAX simulator trained aircraft.



Lows

...and who's down

Casper lost $80M on mattress returns

__If you can't sell it...__ Subscriptify-it. __[Verizon](https://robinhood.com/stocks/VZ)__ claims it just "[disrupted the cable industry](https://www.verizon.com/about/news/verizon-disrupts-cable-industry)" by ending mandatory 12-month contracts for cable TV and eliminating "extra" fees (they still want normal fees). The goal is to revive its Fios business (fun fact: Fios is an abbreviation for fiber optic service), which is doing fine selling internet — not as fine selling cable TV.

- __The status quo:__ Brutal customer service, inflexible contracts with early termination fees, and (more) fees that make your $80 service cost $100. That's cable TV.
- __The result:__ Cord-cutting rages ahead as TV bingers save $$$ using their internet to stream instead — 67K customers ditched Verizon cable TV just last quarter.
-  __Verizon's new goal__: Slow down cord-cutting by becoming *more* like the streaming industry. 

__"Mix & Match"...__ That's the name of Verizon's new Fios offer — the idea is to make your cable/internet service totally flexible from month to month, with changable channel bundles and upgrade/downgradable internet speed. You know, control of what you're buying without needing to commit for 12 months (it's 2020. Commitment is scary). 

Cord-cut

__Cable is a classic "pros before cos" industry...__ (profits before customers). __Amazon__ is loved by customers because one of its key values is "*customer* obsession." Cable is *profit* obsessed — using its local monopoly to squeeze out your money with brutal year-long contracts and fees ($10/month equipment charge?). Thanks to competition from streaming, Cable's pros before cos strategy is dying.

Verizon is "disrupting itself" by making cable TV less painful for customers

__Cancel Wine & Cheese Wednesday...__ Your weekly merlot could get way pricier. The wine industry is [freaking out](https://www.winespectator.com/articles/what-would-100-percent-wine-tariffs-mean-for-you) over a threat by President Trump to place 100% tariffs on wine imported from Europe. American wine importers and retailers showed up at [Capitol Hill](https://www.axios.com/trump-wine-industry-europe-trade-war-tariffs-ecb68dd0-db94-49e8-a33a-fce844108cf0.html) this week trying to put a stopper on it. Let's rewine'd:

- __1st Pour:__ 25% tariffs imposed in October on some European wines (also Scotch whiskey, Italian cheese, and other goodies). That's indirect retaliation for Europe subsidizing __Airbus__ to compete with America's __Boeing__. Wine importers/distributors swallowed the cost.
- __2nd Pour:__ 100% tariffs *proposed* in early December on French sparkling wines (including your bubbly rosé). That's a US response to a French [digital tax](https://www.politico.com/news/2020/01/07/tech-giants-tariffs-france-095668) targeting big American tech companies. 
- __3rd Pour__: On December 12, American trade reps said the US might *expand* the proposed tariff to 100% on almost all wines from Europe.

__When Trader Joe's pinot costs $60 a bottle...__ Americans lose out, too. The sobering tariff could mean jacked up prices and slimmer choices for consumers. American retailers that sell European wine will be the biggest losers.

_Finishing all the Chardonnay before the tariff hits_

__Let it breathe...__ These tariffs just slap Europe on the wrist. France would lose sales to Americans — you wouldn't splurge $100 for a bottle of Bordeaux that used to cost $50, while the Napa cab still costs $40. The administration hopes the threat of that French export pain will push it to repeal the tax on American tech. But French wine enjoys plenty of demand worldwide, so the tariff could actually backfire. 




French wine faces a 100% tariff threat — here's how it would affect you, and why

__Feeder of the unicorns...__ That's Japan's __Softbank__, one of the [largest](https://www.cbinsights.com/research-softbank-investment-tracker#page-block-1y48k72q68x) tech-focused venture capital funds ever. Fresh after dropping another $9.5B to save WeWork from bankruptcy, it's got a new problem: *[11 startups](https://www.theinformation.com/articles/getaround-to-lay-off-about-one-fourth-of-staff) it’s invested in just had major layoffs*. And we noticed a pattern to how their CEOs "announced" the firings:

- __Step 1:__ Issue company-wide memo that'll ~~probably~~ definitely leak.
- __Step 2:__ Begin said memo with obnoxious stats about how great the startup is.
- __Step 3:__ Reveal you're laying people off, but don't use the words "fire" or "lay off" (be way much more ambiguous).
- __Step 4:__ Make virtuous claim about the future path to profitability.

__We've got your case studies right here...__ Uber let go of 1,000s last year and WeWork fired 2,400. Here are Softbank's 2 most recent portfolio problems:

- __Zume Pizza — raised $375M from Softbank, now firing 400:__ While shutting down its core robot pizza biz, the CEO [wrote](https://www.cnbc.com/2020/01/08/softbank-backed-zume-cuts-360-jobs-closes-pizza-delivery-business.html) they were "blessed with an opportunity to invent brave and innovative solutions.” But “many of the current roles no longer exist.” 
- __Getaround — raised $300M from Softbank, now firing 150:__ The CEO [humblebragged](https://blog.getaround.com/getarounds-next-chapter/) about their 6X growth to 5M users, then mentioned they're "reducing field operations."

Fired

__This is the end of the anti-profit startup era...__ 2019 was the year of tech IPO enthusiasm — but public market investors rejected stocks of loss-making companies like __[Uber](https://robinhood.com/stocks/UBER)__ and __[Slack](https://robinhood.com/stocks/WORK)__. Softbank was the VC fueling Uber's money-losing scale-at-all-costs rise (FYI, Uber loses $543K every hour). Now the rest of Softbank's portfolio is adjusting to the new unicorn normal.

Softbank unicorns are laying off 1,000s of workers (and we noticed a pattern)

Verizon's "pros before cos" problem

__News, delivered hot (28 minutes after the ETA)...__ __[Grubhub](https://robinhood.com/stocks/GRUB)__ shares spiked on word the food-deliverer is considering selling itself (+ fries, sauce on side). If Grubhub gets acquired like the WSJ [reported](https://www.wsj.com/articles/grubhub-considers-strategic-options-including-possible-sale-11578505832) it might, it'll probably be at a higher price than where the stock was trading yesterday — that's why shares jumped 13%.

- __2004:__ Grubhub is founded in Chicago as a menu-posting site — then it merged with delivery rival __Seamless__ in 2013.
- __2014:__ Grubhub IPOs with a $4.5B valuation, ultimately reaching $13B just over a year go.
- __2019:__ Shares plunged over 40% in October on delivery of disappointing earnings -- it's now back to a $5B valuation (barely better than its IPO value). 

__You're becoming "more [promiscuous](https://snacks.robinhood.com/newsletters/3o0KQAYYbRpqhqULwfOWaD/articles/7m8VoFteAIgGsRXEzlIssk)"...__ That's what Grubhub's CEO thinks about us diners. Grubhubers used to be loyal, one-app customers. Now they're flirting with the competition, and it's an (expensive) marketing battle of "$5-off-next-order" promo codes to win them back. We noticed that delivery apps are divided by territory, mafia-style:

- __DoorDash (37% of the US market):__ Dominates the West, with most of the market share in San Francisco, Phoenix, and Dallas.
- __Grubhub (30%):__ Runs the East Coast, from Philadelphia to New York to Boston.
- __[Uber Eats](https://robinhood.com/stocks/UBER) (20%):__ Took over the Atlanta-to-Miami corridor.
- __Postmates (10%)__ is LA-approved (it's pretty much only got LA).

_The Delivery Wars: "Tell them to get their calzone out of my territory..."_

Deliver

__If you can't beat 'em...__ Consolidate. The Delivery Wars are so vicious that even Amazon dropped its restaurant delivery service last year. With un-loyal customers and aggressive price competition, mergers are inevitable. Doordash already bought Caviar, and Grubhub might have to sell itself or merge — that's cheaper than splurging on marketing to beat Uber Eats in Miami.



Gruhub may sell itself because of the mafia-style delivery wars

__Don't skip through this ad...__ __[Spotify](https://robinhood.com/stocks/SPOT)__ could become the #1 podcast monetizer thanks to “[Streaming Ad Insertion](https://techcrunch.com/2020/01/08/spotify-brings-streaming-ad-insertion-technology-to-podcasts/)” (note to Spotify: Please rebrand that name). Instead of 1 ad per podcast played to all listeners (forever), Spotify's offering this combo:

1. __Targeted ads:__ 2 different people, listening to the same pod, get different ads (odds are a direct-to-consumer mattress ad for one, a natural deodorant subscription ad for the other).
3. __Refreshed ads:__ A pod recorded today could have an ad for *Frozen II*. Next year that ad would switch to *Frozen III* instead. Boom. Dynamically changed. 

__Nothing angers a marketer more...__ than when someone hears their ad, but hates their product. Cheesecake Factory making a podcast ad? Lactose-intolerant people will hear it. *That's a wasted ad.* They'd rather the ad target only 18-36 year-old males who like food that's cheesy, meaty, and cheesy. We've seen this before.

- Facebook's ads are __uber targeted__ (because Zuck knows you're in the "Gaga for Gouda" Facebook group).
- Since targeted ads are __more likely to resonate and sell cheesecake__ goods, they're more expensive for advertisers (and lucrative for Facebook/Spotify). 


"_I know you want these sustainable vegan sneakers, Linda!_"

Heard

__Spotify’s secret weapon isn’t just data — it’s their willingness to use it...__ Spotify knows your age, gender, location, and what music you’re listening to (for [Snacks Daily](https://open.spotify.com/show/5RllMBgvDnTau8nnsCUdse) listeners, it's *Post Malone, Drake, and Ariana Grande*). It’s willing to use that data to segment listeners into groups hearing different ads. But pod-rival Apple hasn't been willing to do that — privacy is their major selling point.

Spotify introduces a new service to make podcast ads more like Facebook ads

Grubhub cooks itself up for sale

__As you Musk know...__ __[Tesla](https://robinhood.com/stocks/TSLA)__ shares hit full speed lately — they're up 38% in just the last month. Now Tesla's officially become *the most valuable American car company in history*. Here's how that value got calculated:

- __["Market Capitalization"](https://learn.robinhood.com/articles/GByCbiOluG2kcWs1AF6m5/what-is-market-capitalization/):__ A company's stock price multiplied by the total number of shares. It's the total value of a company based on its stock price.
- Production just started at Tesla's new Chinese Gigafactory — and __China bought nearly 3 times as many electric cars as the US did__ [in 2018](https://www.iea.org/reports/global-ev-outlook-2019).  
- That's why __Tesla's market cap has risen to $85B__ — beating Ford's $81B [record](https://www.wsj.com/articles/tesla-is-now-the-most-valuable-u-s-car-maker-of-all-time-11578427858?tesla=y&mod=article_inline) from '99.
- Today, __[GM](https://robinhood.com/stocks/GM)__ and __[Ford's](https://robinhood.com/stocks/F)__ market cap is __$87B__ — *combined*.  

__Here's the crazy thing...__ Tesla's 2019 profits and car deliveries *pale* in comparison to GM and Ford's:

- __Cars produced per year:__ GM and Ford produced a combined 39x as many cars as Tesla did in 2019 (14.3M vs. 367.5K).
- __Profits over the past year:__ Tesla's profit was -$827M (negative, AKA a big loss). GM and Ford's combined profit was over $10B (AKA actual money-making).


_GM to Ford: "How'd they get that big with such little numbers?!"_

Soar

__Investors care less about today, more about tomorrow...__ Stocks can rise as shareholders believe a company's profits will grow in the years to come. Tesla's cars scream "future" (electric + cyber), while Ford and GM's preach the past (trucks/SUVs + gas). Investors think 17-year-old Tesla has better profit *potential* than 112-year-old GM and its even older Ford brother.

Tesla just became the most valuable US car company. Ever.

__We've got no beef with pork...__ __Impossible Foods__, the privately-held alt-meat startup and __[Beyond Meat](https://robinhood.com/stocks/BYND)__ rival, just launched a new plant-based meat: Impossible Pork. At the risk of not saying pork enough times, Impossible's not porking around here: 

- __Resources:__ Impossible is doubling its Research & Development team so it can whip up more plant-based [*insert animal here*] that tastes like the real thing. 
- __Results__: Impossible [unveiled](https://www.cnet.com/news/impossible-foods-pork-is-here-and-its-scary-similar-to-the-real-thing-meatless-plant-based/) its new pork and sausage products at the Consumer Electronics Show yesterday (Impossible Sausage hits Burger King on Jan. 13).
- __The trade off:__ Since it's focusing on new products over its existing faux beef ones, Impossible officially [stopped competing](https://www.reuters.com/article/us-impossible-foods-mcdonald-s-corp-excl/exclusive-impossible-foods-abandons-pursuit-of-mcdonalds-burger-deal-idUSKBN1Z62GJ) for a huge/exclusive __McDonald's__ plant-based burger partnership.


__"The most significant science project and business endeavor in the world"...__ That's [according](https://www.marketwatch.com/story/ces-2020-impossible-foods-to-add-pork-and-sausage-to-menu-ahead-of-possible-ipo-2020-01-06) to Impossible's CEO, whose environmental concerns back his boasting. Pork is Earth's #1 consumed meat, and Impossible thinks beef is *so* 2019. Plant-based meatopians love to [remind us](https://www.beyondmeat.com/about/): pea/soy burgers require 99% less water, 93% less land, and create 90% less greehouse gas than their real beef brethren.

_Impossible Foods concocting its pork strategy_

__Impossible chose research over production...__ Resources are limited, and companies need to choose where to invest their time/cash. Impossible chose to focus on a new product (pork) rather than more of its existing product (beef). Now, rival Beyond Meat may snag that lucrative plant-based spot in McDonald's burger buns. That's why Beyond shares jumped 12% even though Impossible revealed a new product and partnership.

Impossible Foods goes ham on plant-based pork

__Classic case of rich company, poor stock…__ Over the last 3 years, __[Goldman Sachs](https://robinhood.com/stocks/GS)__’ shares have barely budged. Meanwhile, its big bank buddies pop bottles — __JPMorgan__ and __Bank of America__ stocks both rose over 50%. So here’s Goldman’s self-diagnosis: *severely un-transparent corporate reporting structure*. Now it’s changing:

- __Symptoms:__ Goldman’s 4 divisions were too obscure. Institutional Client Services, Investment Banking, Investing & Lending, and Investment Management (leaning hard into “Investing”).
- __Prescription:__ The WSJ reports that Goldman will [switch](https://www.wsj.com/articles/goldman-sachs-lifts-the-veil-to-woo-skeptical-shareholders-11578394803) to 4 way-clearer divisions based on customer type: Corporations, Trading Firms, Money Managers, and Individuals (like you and us).

__This is how bad it got…__ Want to know how Goldman’s Apple Card did last quarter? Good luck. Goldman's consumer banking performance was buried in its “Investing & Lending” division, along with a bunch of big loans and venture investments. Like a box of chocolates, investors couldn’t tell what was inside Goldman behind all that corporate structure scar tissue.


Reveal

__Investors reward transparency…__ and that’s why Goldman’s transparent-izing itself. This new corporate structure could reveal to investors critical Goldman insights — like how’s its 3-year-old, millennial-obsessed, digital consumer bank Marcus is actually doing. Investors are more down to reward Goldman stock if they can actually see what’s in it.

Goldman Sachs tries to revive its stock by transparent-izing

Tesla = Most Valuable US Car Co. (Ever)

__Prime real estate...__ __[Walmart](https://robinhood.com/stocks/WMT)__ is Earth's biggest retailer — Now __[SmileDirectClub](https://robinhood.com/stocks/SDC)__ will sell its mouth-flattering goods exclusively on Walmart's website and across its 3,800+ US stores. One of the worst IPOs of 2019, SDC shares popped 25% on news of the partnership. The awkward part? *The partnership doesn't even include their core product*.

- __Before:__ SDC is a direct-to-consumer brand, selling its clear braces-replacing aligners from its own website (like DIY Invisalign).
- __After:__ SDC-branded electric toothbrushes, tooth-whitening kits, dental device cleaners — they're all new, and will now be sold at Walmart.
- __MIA:__ Its go-to clear aligners will stay exclusively on SDC's website and its SmileShop locations. 

__More like Smile InDirect...__ SDC's strategic move to go off its own website and into another retailer isn't totally fresh — its online-first, direct-to-consumer cousins made similar moves: __Casper__ mattress, __Harry's__ razors, and __Quip__ toothbrush all now sell in __Target__ stores. But SmileDirect's the only one to keep its core product to itself.

- __Side note:__ Walmart will see how SDC's products do with its lower-income customers before possibly setting up full SDC shops within its stores.

_Yum goes ham_

Scaled

__This is SDC's top-of-funnel strategy...__ How do you warm people up for a bigger commitment, more expensive core product? Offer them gateway goods instead. SDC's main teeth-straightener costs nearly $2,000. An SDC electric toothbrush in color "[blurple](https://shop.smiledirectclub.com/products/electric-toothbrush)" costs just $25. 

- __First date:__ SDC earns your trust through its cheaper, low-commitment options at Walmart.
- __Marriage:__ Then, after months of keeping your teeth white with SDC products, maybe you'll feel ready to put a ring (or an aligner) on it. 

SmileDirectClub snags a spot at Walmart — but not with its core product 

__More than late night drunchies...__ __[Yum! Brands](https://robinhood.com/stocks/YUM)__ announced Monday that it's buying California-based __[Habit Restaurants](https://robinhood.com/stocks/HABT)__, causing the burger chain's shares to [surge](https://www.wsj.com/articles/yum-brands-to-buy-habit-grill-11578319265?mod=business_lead_pos4) 33%. You know Yum as the owner of fast food go-tos __KFC__, __Pizza Hut__, and __Taco Bell__ (AKA, Ken-taco-hut) — this is its 1st acquistion of a stand-alone fast-casual chain since going public in '97. We fried up the history:

- __1969:__ The Habit Burger Grill opens in Santa Barbara — the fancy burger chain boasts some healthy-ish options too (fried green beans FTW).
- __1977:__ __PepsiCo__ starts a fast food division by acquiring Pizza Hut (then Taco Bell in '78, then KFC in '86).
- __1997:__ Pepsi decides its done with restaurants. So it wraps up the tacos, chicken, and pizza into a separate company, and sticks on the "Yum Brands" name (and separate YUM stock).
- __2020:__ Yum is now the world's largest restaurant company with 49K stores in 145 countries. Next, it's throwing Habit's 265 locations on the menu, planning to add over 2K more.

Devoured

__The burning question on everyone's lips...__ *Why Burgers? Why Now?* The answer: *Because fast-food needs fast-casual*. When you think fast-casual, you picture harvest grain bowls that you pay for at the counter (after loading up on free toppings). But burgers are part of the fast-growing segment too:

- __Five Guys__ and __Shake Shack__ are also fast-casual (more expensive and higher quality than Mickey D's, but still pretty accessible).
- From 2005 to 2017, __the number of burger outlets [quadrupled](https://www.wsj.com/articles/diners-are-finding-13-burgers-hard-to-swallow-1496241667)__ — Americans are willing to pay for more expensive premium burgers.
- Yum __wants a piece of the growing fast-casual pie__ without straying too far outside its comfort zone. Burgers hit the spot.


Yum Brands acquires fast-casual chain Habit Burger for a casual $375M 

__"Protect Life"...__ That's the bold mission that greets you at __[Axon Enterprises](https://robinhood.com/stocks/aaxn)__. The inventor of the taser also makes body cameras and sells both to police with hopes that fewer uneccesary deaths happen. Now Axon finds itself in court for a different reason — its suing the government for demanding it break itself up.

- Almost 2 years ago, __Axon acquired Vievu__, which also made body cameras for police officers.
- 2 weeks ago (on Christmas Eve *Eve*), the Federal Trade Commission __accused Axon of aggressively jacking up prices__ after it gained all that market power (AKA, acting like a monopoly).
- The FTC's demanding Axon spin-off __a "clone" company to compete against itself__ with body cameras.
- *Plus,* it has to equip that company with __its business secrets__ (this is a company's worst nightmare). 

__You don't like DMV requests...__ (this one's worse). The government's request is so soul-crushing for Axon that it's suing. The taser-creator believes this is government overreach and that there's still plenty of competition in body cameras. The CEO crafted a whole [blog post](https://medium.com/@Rick_Axon/we-all-deserve-a-fair-day-in-court-ef73fe5efae) about it, and the company [outlined](https://www.axon.com/ftc) its side of the story. 

Un-acquire

__The opposite of cuffing season...__ For years, it's been open-season for companies to mega-merge with each other, creating monopoly-ish dominated industries. If a Democrat becomes president, they may call for breakups in the industries below, and these breakups could follow the Axon playbook. 

- __Tech:__ __[Facebook](https://robinhood.com/stocks/FB)__ was allowed to acquire Instagram, the biggest threat to its dominance.
- __Airlines:__ After a jaw-dropping number of mergers, 4 major airlines now handle 75% of the air travel market.
- __TV & Movies:__ __[Disney](https://robinhood.com/stocks/DIS)__ has acquired Marvel, Star Wars, Pixar, and Fox.


Axon, the taser-inventor, is ordered to break up into 2 companies

KenTacoHut drops $375M on burgers

__Cat videos would be better...__ if your face replaced the feline's. That's the earth-shattering revelation behind "Cameos," __[Snapchat's](https://robinhood.com/stocks/snap)__ new feature that superimposes your selfie in a short video. It's the type of viral animation that's core to Snapchat's DNA, so Snap [acquired](https://techcrunch.com/2020/01/03/snapchat-quietly-acquired-ai-factory-the-company-behind-its-new-cameos-feature-for-166m/) the startup behind Cameos, __AI Factory__, for a reported $166M last week.

- __Location:__ Uncreatively-named AI Factory is based in Ukraine, with an office in San Francisco to convince those who judge books by their covers.
- __Not his first exit:__ Its founder is [Victor Shaburov](https://www.linkedin.com/in/victorshaburov/) — who already sold a previous startup to Snap in 2015 (he's the tech artist behind [virtual rainbow vomiting](https://www.bustle.com/articles/110798-how-to-use-snapchat-lenses-so-you-can-puke-rainbows-like-everyone-else-a-step-by-step-tutorial)).
- __Not dangerous (yet):__ Making a video of one person appear as another is the definition of "[Deepfake](https://www.nytimes.com/2019/11/24/technology/tech-companies-deepfakes.html)" (it's a freaky futuristic technology that could potentially cause mahyem on what you think is true). But we tried Snap's Cameos — they're *shallow*fakes at best.

__Cameo > Lenses > Bitmoji...__ In a [leaked](https://cheddar.com/media/snap-ceo-evan-spiegel-company-memo-on-2019-strategic-goals-and-profitability) 2018 letter to Snappers, CEO Evan Spiegal said 27 times that Snapchat should be "the fastest way to communicate." To accomplish that, text on Snapchat is laughable. Pictures are ok. Videos are better. So Bitmoji (also acquired by Snap), Lenses, and Cameos separate Snap from Instagram, iMessage, and Twitter ('til Insta steals the idea).

_Snapchat: Going for best "Cameo" in a leading role_

Augment

__Snap is the leader in Augmented Reality. Period...__ Tech leaders believe AR will replace smartphones, just like smartphones replaced many PCs. __Facebook__, __Apple__, and __Google__ are all building headsets and glasses so they don't miss it. Before you strap a computer to your face, Snap's way ahead:

- Those tech giants __haven't offered mainstream products yet__ — and Facebook's chief scientist [thinks](https://www.theinformation.com/articles/facebooks-chief-scientist-mass-adoption-of-ar-is-years-away) it'll be 5-10 years before they do.
- __Snap has__. Its filters, lenses, and Spectacles take your real world, then augment it with humanity-improving [dancing hotdogs](https://www.buzzfeed.com/ikrd/this-teen-created-a-music-video-for-the-snapchat-hot-dog).

Snapchat's New Year's Resolution: (A)ugment your (R)eality with fun shenanigans

__Can we please talk about Apple's record high?...__ The stock doubled to become 2019's best performer in the Dow. Now __[Apple's](https://robinhood.com/stocks/aapl)__ got a new 2020 focus: *Make HomeKit happen*. That's the orange house-shaped, pre-downloaded app in your "rando Apple apps" folder — it connects your iPhone with your home (smart lights, smart thermostat, etc). At this week's Consumer Electronics Show, Apple is [sharing](https://www.bloomberg.com/news/articles/2019-10-28/apple-working-on-new-homekit-devices-after-homepod-apple-tv) its plans for HomeKit to make money off iPhone nation.

__*FIFA 2019. Pokemon. Call of Duty*...__ All lost to __Fortnite__. The 3-year-old game hauled in $1.8B last year to keep its crown as Earth's [most lucrative](https://www.cnn.com/2020/01/03/tech/fortnite-sales-2019/index.html) video game (FYI, that's down 25% from 2018). Credit its popularity as a virtual hangout place, and add in some seasonal changes for keeping the game fresh. Fortnite's parent company, __Epic Games__, isn't publicly-traded — but its biggest investor is China's game-glomerate __[Tencent](https://robinhood.com/stocks/TCEHY)__, whose shares trade publicly.

__Ever wanted to charge *Uber* surge pricing?...__ That's kinda what California is doing. The AB5 "gig law" would treat drivers like actual employees, not independent contractors — that could raise the ride-hailer's costs by 30%. So __[Uber](https://robinhood.com/stocks/uber)__ and __Postmates__ [sued](https://www.sfchronicle.com/business/article/Uber-Postmates-sue-California-over-California-14940425.php) California because they feel singled-out as an industry (their words: AB5 is "irrational and unconstitutional"). The law took effect on January 1st, so Uber's pulling an Uber and [won't comply](https://www.npr.org/2020/01/04/793142903/as-california-tries-to-make-contract-workers-employees-industries-push-back) while it fights.


__Pump anxiety...__ Airlines are feeling it. Fresh after the US killed Iran's top general, oil prices immediately [jumped](https://www.cnn.com/2020/01/02/investing/oil-prices-iran-commander-baghdad/index.html) 4% to $68.60 (Middle East oil trade is a fragile thing). US airline stocks immediately fell, led down by __[American Airlines](https://robinhood.com/stocks/aal)__ — that fuel makes up about [24%](https://www.iata.org/contentassets/25e5377cf53c4e48bbaa49d252f3ab03/fact-sheet-fuel.pdf) of their total costs. Good thing the growing US economy just landed airlines' their 10th-straight profitable year.
