__Incoming: triple cliché...__ Self-driving tech, a SPAC, and a Peter Thiel-backed startup — sounds like the perfect recipe for a summer 2020 IPO. __Luminar__ makes lidar tech that allows self-driving cars to "see" their surroundings. The lidar method involves shining lasers at objects to measure their distances. By measuring the time a laser takes to hit something, lidar sensors build out 3D maps of environments (like the 405 at rush hour). 

- __Luminar is going public via SPAC merger.__ A [SPAC](https://snacks.robinhood.com/newsletters/2IlouyJBkMnca9pyPTVgEl/) is essentially a company without a company. SPACs go public for the sole purpose of one day acquiring a real company (in this case, Luminar). 
- __Luminar will be worth $3.4B__ after it merges with __[Gores Metropoulos](https://robinhood.com/stocks/GMHI)__ (sounds like a Russian hotel, actually the SPAC). Gores stock jumped 8% on the surprise acquisition. 

__*Take me to your lidar*...__ Luminar is a 3-year-old company with a 25-year-old CEO. But it's trying to tackle a decades-old issue: how to bring autonomous vehicles to streets. Besides government regulation, there are 2 main obstacles preventing self-driving from going mainstream:

1. __Safety:__ Driverless vehicles are still sweat-inducing. Luminar is pitching advanced safety of its sensors, which identify objects from 250 meters away (even in the dark).
2. __Cost:__ Lidar sensors can cost carmakers tens of thousands of $$$ — Luminar hopes to [differentiate](https://www.bloomberg.com/news/articles/2020-08-24/thiel-backed-startup-luminar-to-go-public-in-3-4-billion-merger?sref=q3KSFp38) itself by bringing down the price of these autonomous eyes.




"_I am your lidar_"

Beam

__Luminar has a unique go-to-market strategy...__ Self-driving peers like __[Google](https://robinhood.com/stocks/GOOG)__'s Waymo focus on introducing *robotaxis* first — Luminar is focused on getting its sensors in regular cars first. While others see robotaxis as a gateway to autonomous domination, Luminar [sees](https://techcrunch.com/2020/08/24/lidar-startup-luminar-to-go-public-via-3-4-billion-spac-merger/) them as a longer-term play. __[Volvo](https://robinhood.com/stocks/VLVLY)__ will be using Luminar's sensors for hands-free highway driving in 2022 — it's also a Luminar investor. These high-profile partnerships could help Luminar's tech go mainstream.

Luminar is going public in a $3.4B merger to sell "eyes" for self-driving cars

__Paging Carrie Mathison...__ We're all "people familiar with the matter" (#PFWTM) now that __Palantir__'s IPO paperwork has been [leaked](https://techcrunch.com/2020/08/21/leaked-palantir-s-1-shows-company-has-125-customers-after-17-years/). That's slightly ironic, since Palantir is known for its super-secretive ways and its ties to intelligence agencies. 

- __At a high level,__ Palantir is a software company that collects and synthesizes data for big clients. That data could allow a bank to spot the movement of criminal money, or help a government agency thwart a terrorist attack. 
- __Palantir filed to go public back in July,__ *17 years* after its founding. It filed its IPO paperwork confidentially (of course), which means we didn't get to check out its financials. *Until now...*


__I spy a mole...__ Palantir's S-1 filing got [leaked](https://techcrunch.com/2020/08/21/leaked-palantir-s-1-shows-company-has-125-customers-after-17-years/) by a shareholder to TechCrunch. A few numbers stood out to us from the screenshotted-leakage:

- __$5.6M:__ Palantir's massive average revenue *per customer*. That's impressive, but a little less impressive when you consider...
- __125:__ Palantir's number of customers could barely fill the theater at a *Mission Impossible* screening.
- __$742M:__ Palantir's sales for 2019, anticlimactically less than the ~$1B that has been reported for years.




"_Who leaked the S-1?_"

__Palantir has big eggs in a small basket...__ Its growth is highly dependent on a few massive players, which is risky. Losing even a few clients could hurt big. Out of Palantir's 125 customers, the top 3 make up over 30% of its sales. Over 90% of its sales growth comes from *existing* customers, the majority of which are government clients. Palantir's good at crunching data — not so good at crunching profit. It reported a $580M net *loss* for 2019, which was almost the same as 2018's. 

Palantir's leaked IPO paperwork gives a look into its secretive business

Dow Jones

S&P 500

Nasdaq

Bitcoin

10-Yr US Treasury

🕵️‍♀️ Palantir's leaked IPO paperwork

__*Revenge is a dish best served cold*...__ So is delivery domination. __DoorDash__ is in the enviable pandemic position of being the #1 restaurant delivery platform in America. In the [mafia-style](https://snacks.robinhood.com/newsletters/5H4bzJb2lCpsjW7HA5Czc3/articles/APpX6NGeIEYFrIq5NYcoA/) food delivery wars, DoorDash has protected its leading market share against promo-slinging rivals __[Grubhub](https://robinhood.com/stocks/GRUB)__ and __[Uber Eats](https://robinhood.com/stocks/UBER)__. Now Don DoorDash is [coming](https://www.theverge.com/2020/8/20/21376552/doordash-grocery-delivery-amazon-instacart-compete-launch-california-midwest) for __Instacart__ and __[Amazon](https://robinhood.com/stocks/AMZN)__'s territory. 

- __DoorDash is launching *grocery* delivery__, starting with chains like Smart & Final in California. It's offering free delivery to DashPass subscribers.
- __Grocery, but make it takeout:__ DoorDash promises to deliver groceries in less than an hour. That gives it an edge over Instacart and Don Bezo's Amazon Fresh, which typically use scheduled delivery windows. 

__It's all about the backend, baby...__ Sometimes the things you *don't* see are the most powerful. __[Shopify](https://robinhood.com/stocks/SHOP)__'s platform powers the ecommerce of over 1M businesses, from Kylie Cosmetics to the local taco joint — but consumers don't *see* Shopify. DoorDash has a similar "hidden" platform:

- __DoorDash Drive:__ DoorDash [sells](https://www.doordash.com/drive/portal/discover) its backend delivery platform to grocery chains like __[Walmart](https://robinhood.com/stocks/WMT)__ and __Wegmans__, handling their last-mile delivery. 
- __Like the Shopify of e-grocery,__ DoorDash Drive powers chain stores' delivery services, letting them brand them as their own. Now, DoorDash is using the same platform to bring grocery delivery to its *own* app. 






"_Tell them we're coming for the eggs..."_

Deliver

__DoorDash wants to be an all-in-one delivery platform...__ It dominates restaurants, it's making big moves in grocery, and it [added](https://www.theverge.com/2020/8/5/21355625/doordash-dashmart-convenience-store-launch-snacks-groceries) convenience stores and pharmacies this year. In addition to selling direct-to-consumer, it's selling to *other* businesses with DoorDash Drive. This service could be a major growth driver as stores expand delivery in the corona-conomy. DoorDash's "delivery everything" play puts it in a strong position as it gears up to [go public](https://www.forbes.com/sites/kenrickcai/2020/06/18/doordash-raises-400-million-ahead-of-ipo/#4e13df8d6e7f) this winter — It [raised](https://www.cnbc.com/2020/06/19/doordash-scores-16-billion-valuation-now-top-of-food-delivery-chain.html#:~:text=A%20DoorDash%20Inc.&text=DoorDash%20on%20Thursday%20confirmed%20that,Durable%20Capital%20Partners%20and%20Fidelity.) $400M in June at a meaty $16B valuation.




DoorDash pushes to become a "delivery-everything" platform ahead of its IPO

__When the red Corolla rolls up before he asks for digits...__ *5 stars for timing*. __[Uber](https://robinhood.com/stocks/UBER)__ and __[Lyft](https://robinhood.com/stocks/LYFT)__ shares soared Thursday after the ride-hailers narrowly avoided a major shutdown. California's AB-5 law required them to reclassify gig drivers as employees by August 20th. Uber/Lyft said *nahhh* and threatened to suspend service in CA starting Thursday. Just hours before the expected shutdown, a court [granted](https://www.cnn.com/2020/08/20/tech/uber-lyft-california-shutdown/index.html) them a reprieve delaying the order. Now Uber/Lyft are urging riders to vote on Prop 22 in November to exclude ride-hailers and delivery apps from the law.

__Bagged a bullseye...__ __[Target](https://robinhood.com/stocks/TGT)__ stock hit an all-time high after the retail classic [posted](https://www.cnbc.com/2020/08/19/target-tgt-q2-2020-earnings.html) its strongest quarterly sales growth *ever*. Profits jumped a massive 80% after curbside pickup popped over 700%. Plus, online sales nearly 3X'd as Tarjay added a whopping [10M](https://corporate.target.com/article/2020/08/q2-2020-earnings?campaign_id=4&emc=edit_dk_20200819&instance_id=21410&nl=dealbook&regi_id=83712167&segment_id=36501&te=1&user_id=05114d149fce45660cf01aea64f5af7e) new digital customers in the 1st half of 2020. But its grocery biz is the real MVP — milk and hummus allowed it stay open during lockdowns.


Highs

Who's up...

__Finally fixed the toilet seat...__ __[Home Depot](https://robinhood.com/stocks/HD)__ had its [best](https://snacks.robinhood.com/newsletters/7MJGXTV2lqwkCcYoPsYqjJ/articles/2cQ8fFsL0GgNwOwWRIFmEA) quarter in 20 years thanks to lockdown DIY "House Hype." But the stock *fell*  because Home Depot's CEO didn't sound hyped about *this* quarter. Stimulus checks helped bankroll last quarter's splurges on Adirondack chairs — now checks have been spent and the $600/week extra unemployment benefit has expired. Investors are wondering whether the home spending boom has peaked.

__Same paper, less Nutella...__ You're shelling out more $$$ for the same jar of Italian decadence. The value of the US dollar [fell](https://www.reuters.com/article/uk-global-forex/dollar-hovers-near-two-year-low-as-traders-push-euro-longs-to-record-high-idUSKCN25E03G) to its lowest level in over two years, making it less valuable compared to currencies like the Euro. That's partly because the Fed has been blasting out fresh dollars to stimulate the economy. More dollars = less demand for dollars = *less valuable dollars*. Depreciation threatens the USD's "[Superman status](https://snacks.robinhood.com/newsletters/4ogc6lVdR6XOMD2eU3NQcI/articles/4tXfBbA0fHrtQFfTkjI5ht)" as a global reserve currency. Long-term, it could mean higher inflation (and really expensive Bordeaux).

Lows

...and who's down

🥬  DoorDash = the Shopify of e-grocery?

__Way harsh, Tai...__ __[Verizon](https://robinhood.com/stocks/VZ)__ just trolled *itself* by saying cable bundles no longer make sense. But it came ready with a self-improvement strategy: a sweet Mickey deal. Verizon is [offering](https://www.cnbc.com/2020/08/19/verizon-offers-hulu-disney-and-espn-free-for-wireless-customers.html) the entire __[Disney](https://robinhood.com/stocks/DIS)__ streaming bundle (aka Hulu, Disney+ and ESPN+) for free to some premium wireless customers.


- __Old Bundle:__ Telecom companies are known for "Triple Play" bundles of cable TV, internet, and phone service.
- __New Bundle:__ Internet, wireless service, *and* the Disney streaming bundle + Apple Music thrown in at no additional cost. And no expiration date.

__Just wanted to stream *Hamilton*...__ Verizon's cable biz is dying because streamers like Disney+ and __Netflix__ are thriving. The cord-cutting frenzy wasn't lost on Verizon, so it decided to disrupt its own cable business:

- __Over 50% of new Verizon Fios households__ choose *not* to add cable TV to their home broadband internet package. That unbundling spells doom for pay TV. 
- “*The current value chain of the media business is not working*. *It’s broken*.” Verizon exec [quote](https://www.cnbc.com/2020/08/19/verizon-offers-hulu-disney-and-espn-free-for-wireless-customers.html), spittin' facts.



"_Way harsh, Tai_"

Stream

__Not all bundles are created equal...__ but they're all meant to reduce churn. You're less likely to cut your relationship with a company if it's offering you 5 services at bundle price (even if you only care about 3). But cable has clearly lost its sex appeal, while streaming is at peak hotness. Verizon isn't the only telecom splurging to offer streaming for free: __[T-Mobile](https://robinhood.com/stocks/TMUS)__ gives away Netflix and Quibi and __[AT&T](https://robinhood.com/stocks/T)__ ships HBO Max. It's customer retention strategy, binge-edition.

Verizon accelerates its own cable death with a free Disney streaming bundle

__Nutella might get pricier...__ The value of the US dollar is sliding (aka [depreciating](https://learn.robinhood.com/articles/5JtDvoFmridr5T9eJcCyuI/what-is-depreciation/)) relative to other currencies like the Euro. Say a jar of Nutella costs €1. A year ago, €1 equaled $1.10. Today, €1 = $1.19. You're spending 9 cents more to nab the same jar of Italian decadence. The value of the dollar has [fallen](https://www.reuters.com/article/uk-global-forex/dollar-hovers-near-two-year-low-as-traders-push-euro-longs-to-record-high-idUSKCN25E03G) to its lowest level in *over two years*, and it might keep sliding.

- __"Superman Currency":__ The USD's stable rep makes it a hot global commodity. It has long been used as the world's reserve currency for international purchases.
- __Superman in Action:__ If Canada wants to buy oil from Mexico, it's likely doing it in USD. Exchanging Canadian dollars for Mexican pesos could mean losing money. Picture gnarly airport exchange fees post-Cabo trip.


__Beware the kryptonite...__ Like that friend who immediately Venmos you, the US government has never missed a debt payment. That has allowed it to borrow trillions at near-zero interest rates (shoutout US Treasury bonds). But depreciation threatens the dollar's Superman status. Some reasons why it's happening:

- __Fed money printer:__ The Fed has been blasting out dollars to inject back into the economy. More dollars = less demand for dollars = less valuable dollars.
- __Instability:__ An out-of-control pandemic, shrinking GDP, and political instability have affected confidence in the dollar. Oh, and the national debt is at a massive [$27T](https://www.usdebtclock.org/).


_Depreciation is his kryptonite_

Currency

__Every dollar has two sides...__ If the US was a store, it would have a "discount" sign out front. Depreciation makes American goods cheaper for foreigners. That drives up demand for American products and stocks, which drives up stock market prices. If the dollar weakens long-term though, that could mean higher inflation, higher interest rates, higher [taxes](https://snacks.robinhood.com/newsletters/6kuXB2ijKRNebRpLuoEsWb/articles/1pDHIlgi54KnJM6zTGyMyY), and less global power for the US. China wouldn't mind [snagging](https://www.axios.com/dollar-index-reserve-currency-9cefee90-86bc-4f02-817a-22b7895011a9.html) the dollar's Superman cape.

America's "Superman Currency" is weakening — how that affects your wallet

 💵 The dollar gets kryptonite poisoning

__80 and sunny on Wall Street...__ The [S&P 500](https://learn.robinhood.com/articles/7kFFEUv46vmMCmMfLuNiRX/what-is-the-s-and-p-500/) index is kind of like a scoreboard for the stock market, since it tracks the stocks of the 500 most valuable publicly-traded companies in America. On Tuesday, the S&P notched a record close. The all-time high confirms the end of Wall Street's shortest [bear market](https://learn.robinhood.com/articles/3i6hIwhY75uWjZUZiLFTFT/what-are-bull-and-bear-markets/#:~:text=That%20means%20you've%20got,period%20is%20a%20bull%20market.) *ever*.

- __On February 19,__ the S&P closed at an all-time high. By March 13, the S&P had fallen over 20%, confirming we were in a bear market.
- __On March 23,__ the S&P hit its lowest low since the February record. Since then, it has rallied over 50%. Tuesday's record confirms that a bull market started on March 23rd.

__Instagram vs. reality...__ The stock market is drinking rosé on a flamingo float in the Hamptons. The economy is eating Safeway frozen pizza and watching *90 Day Fiancé* in bed. The US' [GDP](https://learn.robinhood.com/articles/29d9WQgPq119raQYS1Wm6H/what-is-gross-domestic-product-gdp/#:~:text=Nominal%20GDP%20and%20Real%20GDP%20are%20two%20different%20measures%20of,for%20the%20effects%20of%20inflation.) shrank at a [record](https://time.com/5873610/economy-shrink-record-coronavirus/) rate last quarter, unemployment is at 10%, and we're still mid-pandemic with no vaccine. A few reasons for the market party:

- __The US government spent trillions__ to stimulate the economy by keeping companies' and families' finances afloat. Then the Fed gave us near-zero interest rates to make savings accounts less attractive and stocks more attractive. 
- __Investors are forward-looking__. 3-straight months of falling unemployment and rising retail spending suggest positive momentum. Promising vaccine tests also helped.

_When a few team members carry the whole group project_

Rise

__The "Big Tech 5" carried the market rally...__ Since the S&P 500 is weighted based on [market value](https://learn.robinhood.com/articles/GByCbiOluG2kcWs1AF6m5/what-is-market-capitalization/), it's dominated by America's 5 largest companies: __[Apple](https://robinhood.com/stocks/AAPL)__, __[Amazon](https://robinhood.com/stocks/AMZN)__, __[Alphabet](https://robinhood.com/stocks/GOOG)__, __[Microsoft](https://robinhood.com/stocks/MSFT)__, and __[Facebook](https://robinhood.com/stocks/FB)__. Those 5 stocks soared [37%](https://www.nytimes.com/2020/08/19/technology/big-tech-business-domination.html) in the 1st 7 months of 2020 — the rest of the S&P *fell* a combined 6%. The Big Tech 5 now make up over 20% of the total stock market value. They're benefiting big from the corona-conomy — Apple just hit a historic $2T market cap. The S&P 500 should rename itself to "Big Tech 5 + 495."

 


The stock market hits an all-time high in the middle of a pandemic/economic crisis 

__Plant-based player...__ gets money. __Impossible Foods__ raised a fresh [$200M](https://techcrunch.com/2020/08/13/impossible-foods-gobbles-up-another-200-million/) for its alt-meat operations. Since its founding in 2011, Impossible has raised $1.5B — over *half* of that came in 2020 alone. Back in March, Impossible raised $500M. That money hasn't just been chilling in the company safe. Since June, Impossible has been spending to turn the corona-conomy tide around. 

- __Scared of going outside?__ Impossible [launched](https://thespoon.tech/impossible-foods-raises-another-200-million/) a direct-to-consumer business to deliver bulks of plant-based patties to your door. 
- __Not the ecommerce type?__ Impossible majorly expanded its grocery presence, launching at Trader Joe's and Walmart.
- __Don't know how to cook?__ Impossible partnered with Home Chef to be included in its meal kits. 
- __Not so adventurous?__ Impossible launched breakfast sandwiches at __[Starbucks](https://robinhood.com/stocks/SBUX)__ and __[Burger King](https://robinhood.com/stocks/QSR)__ to bring alt-meat mainstream.

__The theme here is...__ *Distribution*. For the first eight years, Impossible focused on restaurants. In March, its patties were only available in 150 grocery stores. When COVID shut restaurants down, Impossible had to make an impossibly quick distribution pivot. Its grocery store presence has soared [60X](https://www.marketwatch.com/story/impossible-foods-gets-200-million-in-funding-2020-08-13) to 9K stores. 

Plant

__Impossible is playing catch up...__ to older, publicly-traded rival __[Beyond Meat](https://robinhood.com/stocks/BYND)__. Impossible [started](https://www.marketplace.org/2019/06/14/impossible-foods-vs-beyond-meat-why-some-restaurants-prefer-one-over-the-other/) by offering pricey patties to high-end restaurants. Beyond focused more on retail and going international. But Impossible could catch up quickly if it keeps expanding its distribution. It's also developing new products like pork, steak, and milk, which could give it an edge over patty-focused Beyond.



Impossible makes a quick pivot and raises $200M to take on Beyond Meat 

🏔 3 reasons stocks hit all-time highs

__Swapped the $30 red lipstick...__ for a $30 red Adirondack chair. Americans shifted their spending from restaurants and clothes to the only place that matters now: home. People re-painted kitchens, re-tiled floors and *finally* changed the broken toilet seat. We thought the DIY "[house hype](https://snacks.robinhood.com/newsletters/7Fl0kcKPHzNEVEVwnee0Zp/articles/3djXYQJYytx1qKMDTR9yG1/)" might be slowing back in May. Based off __[Home Depot](https://robinhood.com/stocks/HD)__'s latest earnings report, the hype is still strong: 

- __Home Depot's sales soared 23%__, coming in at *$38B*. That's Home Depot's [biggest](https://www.wsj.com/articles/strong-home-depot-results-show-pandemics-consumer-spending-shift-11597749267) quarterly sales growth in almost 20 years.
- __It's *extra* impressive growth__ for a big old retailer like Home Depot, which is past its peak growth spurt. During the same quarter last year, sales jumped just [1%](https://ir.homedepot.com/~/media/Files/H/HomeDepot-IR/reports-and-presentations/quarterly-earnings/2019/Q2/q2-2019-press-release.pdf).

__And yet...__ the stock fell after the news. Home Depot's CEO didn't sound  too hyped about the outlook for this quarter. He's uncertain how long the home spending boom can last:  

- __US retail spending jumped__ for the 3rd straight month in July. But the $600/week boosted unemployment benefit *expired* at the end of July. 
- __Stimulus checks boosted spending,__ but now they've been... spent. [TBD](https://finance.yahoo.com/news/expect-second-coronavirus-stimulus-check-155500578.html) if we'll get a 2nd round (they could be smaller).
- __DIY Home Makeover isn't an everyday thing.__ Cleaning companies like __[Clorox](https://robinhood.com/stocks/CLX)__ can expect continued demand, but there's only so many times you can landscape your garden.

_Time to go to Home Depot_

Renovate

__Home Depot is consistent...__ It has paid [dividends](https://learn.robinhood.com/articles/6jGOO5O2YvyoZzlEUtIq0F/what-is-a-dividend/) to shareholders for 134 quarters in a row. On Sept 17th, it'll pay each shareholder $1.50 per share as a cash dividend. Home Depot took home ~$11B in profit last year, which is about the same as what __[Amazon](https://robinhood.com/stocks/AMZN)__ made. Yet Amazon is worth 5.5X *more* because investors see more potential *future* profit growth. Home Depot's present is pretty strong, though.

Home Depot has its best quarter in 20 years — the "House Hype" is (still) real

__$357 for a Macro textbook...__ And you better get the new *19th* edition. You shell out $300 for a textbook you only use for 3 months, then sell it for $50 (or use it as a dumbell). __[Chegg](https://robinhood.com/stocks/CHGG)__ wants the days of rent-priced books to be over. The EdTech company is known for digital and physical textbook rentals. As learning moved remote, Chegg racked up a straight-A earnings report:

- __Sales soared 63%__ from the same quarter last year. Chegg brought in $153M because Calc is hard, but remote Calc is harder. 
- __New subscribers jumped 67%__ on the rush for more learning support. Chegg added more subscribers in 3 months *than in all of 2018*.

__Sexier than textbooks...__ Chegg wants to be more "Netflix of Learning," less "Blockbuster of Studying." While textbooks are a hook, most of Chegg's sales come from digital study materials and tutoring. It offers $19.95/month Study Packs that include homework solutions, practice sets, and Q&A with "experts." 

- __Chegg has been on an e-learning buying spree__ since 2010. Acquisitions include: a tutoring platform, a flashcard tool, and an $80M online coding school. Those acquisitions are seriously paying off now.









Study

__Chegg owns the whole customer value chain...__ Chegg isn't just a middleman platform that connects you with something (like __Airbnb__ or __Uber__). It's one of the few digital platforms that owns the content, transactions, data, and distribution channels. This direct ownership, combined with the scale of its offerings, is helping it benefit from the e-learning surge — Chegg's shares have doubled this year.






Chegg sales soar on the e-learning surge — a decade of acquisitions just paid off

🏠 Home Depot brings home $4B

__Sounds like a European EDM DJ...__ Actually the world's largest liquor maker. __[Diageo](https://robinhood.com/stocks/DEO)__ is the liquor legend behind cabinet classics like Don Julio, Baileys, and Smirnoff. Its 200+ alcohol brands are sold in 180 of the world's 195 countries (#flex). Its [annual report](https://www.diageo.com/PR1346/aws/media/11293/annual-report-2020.pdf) looks like a lifestyle mag (Johnnie Walker-filled mason jars abound). Soon, it'll get some Deadpool cocktails:

- __Aviation Gin:__ Ryan Reynolds bought an ownership stake in the gin brand in 2018. Since then, he's appeared in [commercials](https://www.youtube.com/watch?v=NjDCH6SiMgo) that look more like Terrence Malick films (feat. citrus fruits misted with Ryan's tears).
- __$610M:__ How much Diageo could [pay](https://www.wsj.com/articles/diageo-to-buy-ryan-reynoldss-gin-other-brands-for-up-to-610-million-11597673592?mod=business_lead_pos4) to buy Aviation, along with its producer __Davos Brands__.

__Big faces = big money...__ Aviation won't be Diageo's 1st celeb-backed brand. In 2007, Diageo teamed up with P. Diddy to sell Ciroc vodka. In 2017, it dropped $700M+ for George Clooney's Casamigos tequila. 

- __Diageo wants to lock in more celeb-infused growth__ now that bar sales are down. Ryan Reynolds could be its next Green Lantern.
- __Aviation's sales *doubled* from 2018 to 2019__, coming in at $40M. In 2019, it accounted for [40%](https://fortune.com/2020/08/17/diageo-aviation-gin-ryan-reynolds-celebrity-liquor/) of growth in the super-premium gin segment. 




"_Did I mention I own a gin company?_"

Shots

__Celebs come with built-in brand equity...__ Brand equity = the extra value companies can squeeze from customers thanks to *perception* of their brand. Diageo’s OG portfolio = stuffy old liquor brands that don’t excite us. Diageo can win younger drinkers with Ryan's Millennial-friendly face (*and charge extra*). Its big investment will save it years (and millions) trying to make a new brand pop off. FYI, cosmetics giant __[Coty](https://robinhood.com/stocks/COTY)__ used the same strategy by [acquiring](https://snacks.robinhood.com/newsletters/53ExK4qFnO6TgaRpz8Ssnl/articles/6iVUy7VWbpoyyhVphbUGt1/) __Kylie Cosmetics__.

The world's largest liquor maker will pay up to $610M for Ryan Reynolds' gin

__*Just the batteries*...__ Sounds like the RXBAR of electric vehicles. __[Tesla](https://robinhood.com/stocks/TSLA)__ stock surged 11% yesterday partly because an analyst pre-[praised](https://markets.businessinsider.com/news/stocks/tesla-stock-price-target-raised-wedbush-china-demand-battery-day-2020-8-1029508926#) its new battery tech (which, BTW, hasn't even been revealed yet):

- __Battery Day:__ Tesla's battery-flexing event on September 22nd. Some analysts expect Elon will unveil game-changing tech, possibly including a battery cell capable of 1M miles.
- __Batteries are the most expensive parts of EVs__. If Tesla unveils a cheaper battery pack, it could become a top supplier for other carmakers, according to the analyst.

__Tesla's Hinge interests...__ *Obsessed with batteries*. After all, batteries put the "electric" in Electric Vehicle. Tesla currently produces batteries with __Panasonic__ at its Gigafactory in Nevada. It also sources them from companies in China and South Korea. It wants to do more: 


- __In June,__ Tesla revealed plans to build a battery research and manufacturing facility in Fremont to expand its "[small](https://www.reuters.com/article/us-autos-tesla-batteries/tesla-plans-battery-manufacturing-facility-under-project-roadrunner-document-idUSKBN23W06W)" battery-making operation.
- __In July,__ Elon [said](https://www.reuters.com/article/us-tesla-batteries/teslas-musk-says-open-to-supplying-batteries-to-other-automakers-idUSKCN24U0E1) Tesla is open to supplying electric batteries *to other carmakers*. Tesla’s battery costs are already [estimated](https://www.forbes.com/sites/greatspeculations/2020/07/27/next-gen-batteries-key-to-charging-teslas-profits/#30e2484e1598) to be ~20% below the industry average.
- __In September,__ we'll see if Tesla's new battery tech is impressive enough to expand its opportunity as a supplier.

_Tesla prepping for Battery Day_

Charge

__Tesla has *a lot* of EV competition...__ Bigger players like __[VW](https://robinhood.com/stocks/VWAGY)__, __[Ford](https://robinhood.com/stocks/F)__ and __[GM](https://robinhood.com/stocks/GM)__ are ramping up EV production (at lower price points). And governments are tossing around EV subsidies to encourage more environmental cars — Germany recently offered $7K off EVs priced under $45K (*not helping Tesla*). On the luxe side, __Lucid__ just [teased](https://www.cnbc.com/2020/08/11/lucid-makes-a-run-for-tesla-with-luxury-ev-sedan-with-a-record-517-miles-of-range-per-charge.html) an EV sedan with a record single-charge range. It's highly unlikely that Tesla will ever get a majority of the EV market, but batteries have a higher barrier to entry. Tesla might have an edge there. 

Tesla stock gets an 11% charge on Battery Day hype

🔋 Tesla's big battery play

__So meta...__ *Fortnite*-maker __Epic Games__ started a Battle Royale on Thursday by adding its own in-app payment system to bypass the "App Tax." The privately-owned video game maker, worth over $17B after a fresh fundraise this month, knowingly defied the App Store Empire:

- __[Apple](https://robinhood.com/stocks/AAPL) and [Google](https://robinhood.com/stocks/GOOG) take a 30% cut__ of in-app purchases, downloads, and subscriptions from non-Apple/Google apps.
- __Fortnite *hates* that.__ So it added its own in-app payment option, offering a 20% discount to players who used that instead of Apple/Google's. In response...
- __Apple and Google *expelled* Fortnite__ from their app stores for violating rules by bypassing the 30% fee. *Then,* Epic promptly filed *War and Peace*-sized lawsuits against both tech giants. It also dropped a Pixar-worthy [video](https://www.youtube.com/watch?v=euiSHuaw6Q4) to troll Apple: "Nineteen-Eighty Fortnite."

__Don't hate the player...__ hate the platform-player. Epic's lawsuits try to establish the App and Play stores as competition-crushing monopolies. This isn't a revolutionary call-out: for years, Apple has been getting heat for being a player in a marketplace it also controls. The Fruit has been [accused](https://snacks.robinhood.com/newsletters/1dxqpvdRnz5eITeoT8vbeN/articles/2WdP7dj2TMzaTUWzOkSACV/) of playing favorites with its own apps.

- __Epic's bold PR campaign is drawing more scrutiny than ever__ on Apple and Google's app store dominance. __[Facebook](https://robinhood.com/stocks/FB)__, __[Spotify](https://robinhood.com/stocks/SPOT)__, and Tinder-owner __[Match](https://robinhood.com/stocks/MTCH)__ have come out in support of Epic against the “App Store tax.” 
- __If Epic wins,__ Apple and Google might have to reduce or remove their fees. Apple made ~$15B in sales from the App Store last year (around 5% of its total sales).




_Are you not entertained by Fortnite's epic battle?_

Fight

__The App Store isn’t just a marketplace — it’s more like a public utility...__ We use apps to communicate, travel, shop, and eat. Google's Android controls [85%](https://www.cnn.com/2020/08/15/tech/fortnite-apple-google-lawsuit/index.html) of the global operating system market, while Apple's iOS has 15% — every mobile app goes through their stores. These stores have created an explosion of opportunity for developers, *but* with caveats: Developers have to swallow Apple/Google's 30% sales tax on the mobile economy. Even Apple TV takes a 30% cut of $30 digital rentals for Disney's *Mulan.* All that could change with Epic's movement. 

Fortnite leads an epic movement against Apple and Google's 30% App Tax

__The tide is high but I'm holdin' on...__ __[Royal Caribbean](https://robinhood.com/stocks/RCL)__ stock surged 18% over the week on [word](https://www.cnbc.com/2020/08/10/royal-caribbean-stock-jumps-as-executives-tout-remarkable-demand-for-2021-cruises.html) of "remarkable" demand for 2021 cruises. Royal has been anchored since March, when COVID outbreaks suspended its global cruise operations. Now execs say pent-up demand led to impressive 2021 bookings, despite "literally no marketing efforts" (and a few PR nightmares). Royal lost $1.6B last quarter, but just snagged a fresh [$700M](https://finance.yahoo.com/news/royal-caribbean-rcl-boosts-liquidity-140302213.html) loan to float until 2021. 


__Grab the pizza cutter, Elon...__ __[Tesla](https://robinhood.com/stocks/TSLA)__ soared 14% after [announcing](https://snacks.robinhood.com/newsletters/6CbBkqrfUFxMuGf2gCnd2N/articles/pfvrdHc6T67RppjVwGIwO/) its 1st-ever stock split. On August 28th, each Tesla share will split into 5: if you own 1 share trading at $1.5K, you'll suddenly have 5 worth $300. Companies split stock to make it cheaper for regular investors (like us) to buy shares — but splits don't change a company's overall value. The Tesla pizza pie will be cut into smaller slices, but it’ll still be the same amount of pizza. Splits aren't as impactful now that more brokerages offer [fractional shares](https://learn.robinhood.com/articles/4EFqqbIXVM4mHEXqqlQAJe/what-is-a-fractional-share/), making Tesla's stock boost after the news puzzling (*classic* Tesla).








__*Change the name*...__ Concert giant __[Live Nation](https://robinhood.com/stocks/LYV)__ saw a [*98%*](https://www.rollingstone.com/pro/news/live-nation-revenue-concerts-q2-2020-1040181/) drop in sales because there's nothing live about this nation at the moment. The quarter ending in June is usually Live Nation's biggest thanks to #FestivalSzn and huge summer tours. But since Coachella was Nochella, ticketing sales actually came in *negative* (lots of refunds). Experimental drive-in concerts haven't matched packed arena revenues. Still, 86% of fans decided to keep tickets for rescheduled shows, saving Live Nation serious musical money.



__No more "pass the AUX cord"...__ __[Uber](https://robinhood.com/stocks/UBER)__ and __[Lyft](https://robinhood.com/stocks/LYFT)__ will likely [shut down](https://www.theverge.com/2020/8/16/21370828/uber-lyft-california-shutdown-drivers-classify-ballot-prop-22) in California after a judge ordered them to treat drivers as employees instead of gig contractors starting August 20th. The ride-hailers would have to provide benefits like overtime, making employees and rides more expensive. They say this threatens to kill their ever-unprofitable companies during a time when rides have plunged. Now they're urging California riders to vote on Prop 22 in November, which guarantees drivers *some* benefits (like healthcare) while keeping their status as independent contractors.

🎮 Epic War on Apple & Google

__Like apples in a basket...__ __[Apple](https://robinhood.com/stocks/AAPL)__ doesn't want its services to hang alone anymore. The Fruit is [reportedly](https://www.bloomberg.com/news/articles/2020-08-13/apple-readies-apple-one-subscription-bundles-to-boost-services?sref=q3KSFp38) launching subscription bundles along with its new iPhones in October. For consumers, a bundle costs less than subscribing to each service individually. For Apple, bundling helps score more subscribers for its services and build Prime-style loyalty. The bundles, dubbed "__Apple One__," will be offered at different price tiers (we named them): 

- __Basic:__ Includes Apple Music and Apple TV+ (so you can watch that one Jen Aniston show).
- __Less Basic:__ Apple Music, Apple TV+, *and* Apple's Arcade gaming service (*who is she?*). 
- __Baller:__ All the above, plus Apple News+ *and* extra iCloud storage. "Baller bundles" will also reportedly include a new fitness service with virtual classes.


__*Excellent timing*...__ Apple's probably relieved that this news didn't spill *before* the big antitrust hearing. Two weeks ago, Big Tech CEOs got [grilled](https://snacks.robinhood.com/newsletters/6RFtJk3mnCKOO7aaL4NeV/articles/6e3Zax9vmlBIyYMmTNkROA/) by Congress while trying to prove their companies aren't giant anti-competitive monopolies. Apple's CEO Tim Cook got the fewest questions. Since then, more fuel has been added to the fire:

- __Apple just removed Fortnite from the App Store__, [saying](https://www.theverge.com/2020/8/13/21366438/apple-fortnite-ios-app-store-violations-epic-payments) it violated guidelines by adding its own in-app payment system (bypassing the 30% cut Apple takes from app purchases).  
- __Now Fortnite-maker Epic Games is suing Apple__ — it says the App Store is a monopoly. This [isn't](https://snacks.robinhood.com/newsletters/1dxqpvdRnz5eITeoT8vbeN/articles/2WdP7dj2TMzaTUWzOkSACV/) the 1st time Apple's getting heat for its App Store-controlling ways (it's a *theme*).  



Bundle

__Bundling is a powerful strategy (that breeds lawsuits)...__ Big Tech can afford to bundle different services together at lower price points than competitors. __[Slack](https://robinhood.com/stocks/WORK)__ recently [filed](https://snacks.robinhood.com/newsletters/6511HaDUMXpAxjp2bEBL6w/articles/4ETsJdiwVFfNzB1Gt8Ozj0/) an antitrust complaint against __[Microsoft](https://robinhood.com/stocks/MSFT)__ for throwing in Teams (free of extra charge) with the Office 365 subscription. __[Spotify](https://robinhood.com/stocks/SPOT)__, which already sued Apple for playing favorites on the App Store, could file *another* complaint about the Apple Music bundling. TBD if __[Peloton](https://robinhood.com/stocks/PTON)__ will sweat over Apple's new fitness subscription.




Apple might be bundling its subscription services (plus, some Fortnite drama)

__The robots are coming...__ Well, more of them are. While humans risk catching coronavirus, aluminum machines don't. Automation, which has been increasing for years, is *majorly* accelerating in the corona-conomy. Robotic usage among retailers in US locations [reportedly](https://www.zdnet.com/article/robot-usage-is-soaring-during-pandemic/) jumped 14% from January to March (compared to the same period last year) and a whopping *24%* from April to June. 

__WALL-E's LinkedIn headline...__ "Well-rounded automaton, open to all opportunities." The robots don't discriminate when it comes to industries. Companies in a wide range of sectors are loading up on automation to meet their pandemic needs. A few major bot-stars:

- __Cleaning:__ __Neo__ is a 4-foot-tall, 1K-pound robot floor scrubber for large commercial buildings. Neo sales have 2X'd since the shutdowns in March. Meanwhile, __Softbank__'s corporate carpet cleaner Whiz has been sold 10K times since November.
- __Food Service:__ __MisoRobotics__' Flippy is the burger-grilling bot hired by __White Castle__ last month. Sally, __Chowbotics__' salad-making robot, saw [60%](https://www.arkansasonline.com/news/2020/jul/15/kitchen-robots-outgrowth-of-pandemic/) more sales since COVID hit.
- __Childcare:__ __Moxie__ is the adorable robot that [teaches](https://www.wsj.com/articles/pandemic-tantrums-enter-the-robot-playmate-for-kids-11596542401) kids at home with "what eerily resembles human empathy." With kids doing school from home and parents losing their minds, Moxie could sell out when it launches this fall (even at the $1.5K price tag).

_The robots are multiplying_

Automate

__This could hurt economic recovery even more...__ While automation and robotics is a safer bet for businesses from a health perspective, the bot-acceleration could make the unemployment situation worse. Despite the [improving](https://snacks.robinhood.com/newsletters/6L8oUYD63XWJRiPR4Z6Ksd/articles/1JOaxMxJMDwJYr7IbGzC9r/) unemployment rate, the US still hasn't brought back even half of the ~22M jobs lost since March. Some estimate that over [80%](https://thespoon.tech/report-80-percent-of-restaurant-jobs-could-be-taken-over-by-robots/) of restaurant jobs could potentially be taken over by automation — Food service, cleaning, and delivery workers are particularly vulnerable.

Robots are taking over in the corona-conomy as human contact gets more risky

🍎 Apple gets bundled up

__Welcome baaack...__ __[Lyft](https://robinhood.com/stocks/LYFT)__ has been hiding in the garage this year, with little to zero newsworthy updates to speak of. Yesterday, it made two big headlines (neither were particularly flattering). The 1st was unsurprising — everyone and their grandma expected rides to take a pandemic plunge: 

- __Lyft's sales plummeted [61%](https://www.cnbc.com/2020/08/12/lyft-earnings-q2-2020.html)__ in the 2nd quarter as virus fears kept riders away (there was nowhere to Lyft to, anyway). Lyft had __8.7M__ active riders compared to __21M__+ in the *previous* quarter.
-  __Rides jumped 78% in July__ compared with April, suggesting a recovery might be underway this quarter. But Lyft still has a long trip ahead (ETA: unknown).

__It gets worse...__ A judge just [ordered](https://www.cbsnews.com/news/uber-lyft-drivers-california-employee-classification-gig-workers/) Lyft and __[Uber](https://robinhood.com/stocks/UBER)__ to treat CA drivers as employees instead of independent gig contractors. The ride-hail giants would have to provide benefits like overtime and sick leave, making employees (and rides) more expensive. They say that threatens to put them out of business. 

- __Lyft and Uber may shut down rides in California__ temporarily if the ruling isn't overturned. That would be tough for the many CA'ers who have never called a taxi in their lives (#UberEverywhere).
- __The suspension would likely last until November__, when voters decide on a ballot measure that would exempt gig drivers from being considered employees.
- __But while Uber has a global footprint__, US-focused Lyft depends on CA for 16% of its rides (*not* coming in clutch RN). 












_Lyft returns to the news cycle (with baggage)_

Ride

__Lyft needs to do more...__ It's mostly a pure-play rides company, which doesn't help in a pandemic. Uber's Ride bookings similarly plunged 73%, but its Eats delivery bookings [*surged*](https://snacks.robinhood.com/newsletters/3Gv0VpT4uNg7cUzDCeIsgl/articles/7guRHFjUJ23HYwesJ8IzAq) 113%. Lyft doesn't have a pandemic-friendly biz to hedge ride losses. Last quarter, Lyft forayed into grocery and meds delivery, and saw growth with its bike-sharing biz. It needs more of that.






Lyft is (finally) back with plunged earnings and a possible suspension

__Waiting for an Elon tweet to drop...__ __[Tesla](https://robinhood.com/stocks/TSLA)__ stock popped 13% yesterday, making Earth's most valuable car company even more valuable. The surge came after Tesla announced it's doing a 5-for-1 [stock split](https://learn.robinhood.com/articles/5Bc1M9bKsFQeJ317f9AqYO/what-is-a-stock-split/#:~:text=A%20stock%20split%20cuts%20the,reducing%20the%20number%20of%20shares). The e-car icon's stock has more than tripled in value since January — on August 28, each Tesla share will be cut up into 5:

- __For owners:__ If you own 1 Tesla share that's trading at $1.5K, you'll suddenly have 5 Tesla shares worth $300. The value of your holding and ownership in the company doesn't change.
- __For buyers:__ Companies split their stock to make it cheaper for retail investors (like us) to buy. A Tesla split makes the pricey stock more accessible, without changing the company's overall value.

__Hyped over tiny pizza slices...__ Investors bought up Tesla after the announcement, making the stock surge. But the split itself doesn't change anything fundamental about Tesla's stock or [market value](https://learn.robinhood.com/articles/GByCbiOluG2kcWs1AF6m5/what-is-market-capitalization/). Even though the Tesla “pizza pie” has been cut into more slices, it’s still the same amount of pizza (with smaller, less caloric slices).

- __In theory,__ splitting the stock could lead to a surge in buying (and consequently, a price surge) because more people can afford to invest. 
- __That's not as relevant now__ that more brokerages are offering [fractional shares](https://learn.robinhood.com/articles/4EFqqbIXVM4mHEXqqlQAJe/what-is-a-fractional-share/), allowing anyone to invest in a company like Tesla for just a few dollars. As these become more popular, stock splits become less impactful.





Split

__But splits aren't entirely useless...__ Investors might interpret them as signs of confidence. A company usually decides to split when it thinks its stock price is too high (likely, because it's performing well). To investors, that suggests the company is confident about the continued growth of its stock. __[Apple](https://robinhood.com/stocks/AAPL)__, which recently became the *most valuable company on Earth*, is also [splitting its stock](https://snacks.robinhood.com/newsletters/vPYyhZjwPeLib6Fug0rQx/articles/1ZCH362yffyTmdyQ6sXP1y/) at the end of August (Apple's 5th split since 1987 — #Banana).

Tesla shares surge after it announces its 1st-ever stock split

🚗 Tesla's stock split surge 

__Where's the WiFi password?...__ __Airbnb__ plans to file to IPO this month and could (*finally*) go public before the end of 2020, according to [WSJ's](https://www.wsj.com/articles/airbnb-plans-to-file-confidentially-for-ipo-in-august-11597164041) infamous "people familiar with the matter" (#PFWTM). A 2020 IPO was on the books for a while. And then... COVID happened.

- __Bookings Plunge:__ By March, Airbnb bookings in COVID hot spots collapsed by [96%](https://www.businessinsider.com/airbnb-city-bookings-drop-coronavirus-2020-3). After getting over [$1B](https://karmaimpact.com/airbnbs-chesky-says-principles-will-guide-companys-recovery/) worth of cancellations, Airbnb shelled out $250M to cover hosts' losses. 
- __Valuations Plunge:__ In March, Airbnb's value fell from $31B to $26B. By the time the pandemic hit full force, its valuation had plummeted to [$18B](https://www.reuters.com/article/us-airbnb-debt/airbnbs-new-1-billion-investment-comes-at-lower-valuation-sources-idUSKBN21P3IM).

__Doesn't seem like IPO primetime...__ Even if [Russia's vaccine](https://www.nature.com/articles/d41586-020-02386-2) miraculously proves to be safe and effective (unlikely), the travel/hospitality biz could be doomed for a while. __[Marriott](https://robinhood.com/stocks/MAR)__ just [reported](https://www.cnbc.com/2020/08/10/marriott-posts-first-quarterly-loss-in-nearly-nine-years-as-virus-hits-bookings.html) that sales plunged 72% last quarter — __[Hilton](https://robinhood.com/stocks/HLT)__'s sank 77% on similarly depressed bookings. But  Airbnb has a few differentiators going for it:

- __Airbnbs are generally cheaper__ and less crowded than hotels, which appeals to our cost-saving, germ-avoiding pandemic lifestyle.
- __Staycations & "Work from Anywhere"__ are rising globally, as people get fed up with staring at their bedroom walls. Long, local getaways are the hot new thing ("Work-from-Hamptons"). 
- __On July 8, guests booked over 1M nights__ of future stays at global Airbnb listings, the 1st time bookings hit that level since March. 

That "Work from Cabin" swagger

Stay

__Airbnb is taking the Nike approach...__ *Just do it*. The home rental giant has been private for a *looong* 12 years. Investors are itching for a public listing, and some early employees hold stock options that expire this year. Airbnb could also really use the cash from a public fundraise: in April, it desperately [agreed](https://snacks.robinhood.com/newsletters/78so4bt9Fa85LcklanAFSB/articles/4O5kJlEPHTgzTTN70wvPrp/) to pay 10% interest on a $1B loan. In May, it sadly laid off 1.9K employees (25% of its staff). With time *not* on its side, Airbnb may as well take the leap. 





Airbnb plans to file for its IPO this month (not as poorly-timed as it seems)

__"Facebook Pay me"...__ Not as catchy as Venmo (but still #Zucked). __[Facebook](https://robinhood.com/stocks/FB)__ has [reportedly ](https://www.bloomberg.com/news/articles/2020-08-10/facebook-financial-formed-to-pursue-company-s-commerce-ambitions?sref=ExbtjcSG)launched a new division that'll unify all its payment products under one umbrella. Excitingly-called "Facebook Financial" will run all digital payments, including Facebook Pay and Calibra crypto. Digital payments have [soared](https://snacks.robinhood.com/newsletters/67oqLAjQUE2o8Qmp9fboSb/articles/7AyLs6WsbFi2Vnl77xwPUQ/) as people fear germy paper cash — FB wants a (large) slice of that growth: 

- __Facebook Pay__ lets you shop and send $$$ to friends directly through FB. In the US, it's available in FB, Messenger, and Insta. Everywhere else, it's only available through FB.
- __Facebook's Master Plan:__ Integrate FB Pay into all its apps *globally* for a huge social-powered payment network. The big focus is integrating FB Pay into WhatsApp in India, which has over [400M](https://techcrunch.com/2019/07/26/whatsapp-india-users-400-million/) users.


__*Come together, right now*...__ FB's feeling Paul and Ringo vibes. Its highly successful children have *very* different reps: Facebook (the helicopter parent), Instagram (the too-cool-for-school teen), WhatsApp (the foreign cousin), and Messenger (the distant aunt). Facebook Financial is its latest move to bring the "family" together:

- __Facebook added "from Facebook" branding__ on Insta and WhatsApp to make sure you *know* it owns your go-to apps. Given FB's complicated rep, we're not sure whether that helps or hurts.
- __Zuck announced plans to integrate__ FB's messaging services across  apps. FB Financial will be a key part of this unified messaging backbone. Social + ecommerce is a powerful duo.









__Own the wallet, own the power...__ Our spending data is a gold mine for advertisers — especially FB, which makes 98% of its sales from ads. By allowing users to spend/shop in-app, FB could charge way more for ads by better targeting users and boosting engagement. But FB's grand payments plan won't come without hurdles: Brazil, one of its largest markets, just [blocked](https://www.exchangewire.com/blog/2020/06/26/apple-announces-changes-to-idfa-brazil-blocks-whatsapp-pay/) recently-launched WhatsApp payments on antitrust concerns.







