__Literally "grab-and-go"...__ __[Amazon](https://robinhood.com/stocks/AMZN)__ [opened](https://www.cnbc.com/2020/02/24/amazon-opens-its-first-full-size-cashierless-grocery-store-in-seattle.html) a checkout-free grocery in Seattle Tuesday, its biggest "Go" store yet. As you cruise the aisles and squeeze-test avocados, shelf-sensors and cameras stalk your every move (no more "sampling" the nuts section). You grab your favorite rosé, walk out, and see the $10 charge on your Amazon app:

- __Go Big:__ Amazon has opened 25 Go stores over the past 2 years — but this supermarket is __5x bigger__ than its largest Go store. 
- __Or Go Home:__ Go's VP said this improved tech can be deployed on an even *larger* scale — "There's no real upper bound."
- __But:__ Sales at the first batch of Go stores actually declined in 2019 from the year before.

__Go's true ambitions lie beyond grocery...__ Amazon is using this huge Go store as a showcase for its customer-stalking, product-tracking *tech*, which it will likely start [selling](https://www.fastcompany.com/90467932/amazon-go-expanding-to-larger-seattle-store-licensing-tech-to-retailers) to other businesses. It's reportedly talked already with potential partners like airport convenience stores (snatch that Kind Bar while sprinting to Gate E14) and sports arenas (grab the Cracker Jack without missing an at bat).

- "__Go as a Service__"__:__ Amazon might offer *GaaS* (not actually called that) to retail companies that want Amazon's tech in their own stores.  
- __Question is:__ Will Amazon's retail competitors be down to partner with their #1 rival? __[Walmart](https://robinhood.com/stocks/WMT)__ almost certainly [won't](https://www.engadget.com/2018/06/14/microsoft-cashierless-walmart/). 

"_Amazon Go cannot identify this shopper: Please scan your app for assistance_"

Shop

__Amazon's real money lies in its tech and services infrastructure...__ Besides acquisitions like __Ring__ and products like Alexa or Amazon Basics, Amazon doesn't really sell *its own* physical goods. The company is most known for its ecommerce platform, where other companies sell *their* stuff. It actually made 63% of its profit from its Amazon Web Services cloud — that's twice as much as its core ecommerce biz. Now it's positioning Go as a 2nd potential software profit puppy.

Amazon opens a cashier-less supermarket — but it's more interested in the tech than the groceries

__Employee of the decade...__ __[Disney](https://robinhood.com/stocks/DIS)__ legend Bob Iger surprised the world Tuesday by [stepping down](https://variety.com/2020/biz/news/bob-chapek-bob-iger-disney-ceo-succeed-1203515498/) as CEO (he was expected to retire at the end of 2021). Over 14 years, Iger grew Disney into Hollywood's largest, most powerful media conglomerate. He'll continue through 2021 as Creative Chief and Chairman, but Let's take a magical journey back in time:

- __2005:__ Bob becomes CEO. Disney owns 21 TV channels — and 55% of its profits come from cable TV (mostly ESPN). 
- __2006-2007:__ In 2006, Disney buys Pixar. A year later, Netflix launches streaming, threatening Disney's cable biz.
- __2009-2019:__ Disney acquires Marvel in 2009, scoops up Star Wars (aka LucasFilm) in 2012, and snags 21st Century Fox in 2019 for $71B (Bobby's biggest deal) to beef up his content arsenal. 
- __Today:__ Disney is thriving thanks to Iger's media acquisitions (it posted a record $69.5B revenue last year) and the stock is 5X more valuable than when Big Bob took charge in '05. 

__Disney makes bank...__ off its media/movie franchises, its character-driven theme parks, and its franchised merch (Baby Yoda FTW) — it's all part of its product ecosystem. As CEO, Iger had become one of the most powerful people in:

- __Hollywood:__ Between Marvel, Fox, and Star Wars, Disney is the king of blockbusters. 
- __Streaming:__ Disney+ already has over [28M subscribers](https://techcrunch.com/2020/02/04/disney-plus-subscribers/) since its November launch. 
- __Sports:__ Disney owns ESPN and ABC — leaders in sports programming.
- __Toys:__ Baby Yoda. 'Nuff said.

Dream

__TBD on the new guy...__ He's another guy named Bob: Disney's head of parks/resorts, [Bob Chapek](https://variety.com/2020/tv/news/who-is-bob-chapek-ceo-walt-disney-1203515791/). He's been at Disney for 27 years, and was at Heinz Ketchup before. But Disney's future is cutting-edge media, so the theme parks + condiment resumé is a tad surprising. But Chapek has headed key Disney units, and beat out potential successors (including Disney's streaming exec). He's got big Mickey shoes to fill.

Disney's visionary CEO Bob Iger steps down after 14 magical years

__That feeling when you're stuck in a Shack line...__ We got it from __[Shake Shack](https://robinhood.com/stocks/SHAK)__'s earnings — a 3.6% fall in same-store sales (adorably called "Same-Shack Sales") and foot traffic [slipped](https://markets.businessinsider.com/news/stocks/shake-shack-stock-price-falls-earnings-4q-revenue-forecast-miss-2020-2-1028933210), too. Some of the pickles that soured Shack's burger and dropped the stock 14%:

- __"Significant slowdown"__ in the growth of its delivery biz — Shack decided to go [exclusive](https://www.investors.com/news/shake-shack-earnings-q419-shake-shack-stock-delivery/) with __GrubHub__, uprooting itself from DoorDash, Postmates, etc. The "moving out" process cost it deliveries. 
- __"Less menu innovation":__ Fad foods drive sales. Think __Chipotle's__ carne asada, __McDonald's__ Beyond Meat PLT, and __Popeye's__ Chicken Sandwich (which literally caused a chicken shortage/fights). The Shack has lacked in the "dope foods" category.

__Shake Shack is like a fast-growing teen (in a slump)...__ Most of the 15-year-old chain's 275 Shacks are just in the adolescent phase — 60% are less than 3 years old (teens, in millennial biz years). And Shack's been aggressively expanding into malls, airports, and "free standing pads." But the core problem is lack of innovation...

__Shake Shack needs to shake up its menu...__ Last year's Chick'n Bites weren't a game changer. Even Shake Shack's CEO said "*We chose to limit our menu innovation in comparison to prior years.*" But buzzy new food items are *key* to driving store traffic. So are buzzy new features, like __McDonald's__ $1B worth of ordering kiosks, __Domino's__ constantly-improving delivery app, and __Sweetgreen's__ office food lockers. 

Shake Shack sales fall because it's struggling through a "teen slump"

Dow Jones

S&P 500

Nasdaq

Bitcoin

10-Yr US Treasury

🥑 Amazon's GaaS play  

__You can do it, put your back Intuit...__ __[Intuit](https://robinhood.com/stocks/INTU)__ confirmed it's buying privately-held __Credit Karma__ for $7.1B, its largest acquisition ever. Intuit's splurging on CK because it wants more of your financial data — that's crucial to how it makes $$$. FYI, Intuit [spends](https://www.propublica.org/article/filing-taxes-could-be-free-simple-hr-block-intuit-lobbying-against-it) millions of bucks trying to keep the tax system complex because it owns a whole lot of tax software:

- __TurboTax:__ Intuit charges for certain tax situations when you use its filing service (and allegedly — along with H&R Block — [hid](https://www.propublica.org/article/turbotax-deliberately-hides-its-free-file-page-from-search-engines) its free filing page from showing up on Google). 
- __QuickBooks:__ Intuit's popular small biz accounting software makes money off monthly subscription fees.
- __Mint:__ Intuit acquired the budget tracking tool in 2009 for $170M. Mint is free, but makes money off ads and product referrals (like an Amex cash back card that's perrrfect for the Chipotle over-spending habit Mint knows that you have). 

__We're calling it the "Data Double Dip"...__ Claaassic Triple D scenario, but with a Premium topping. TurboTax and QuickBooks make Intuit $$$ on premium services, while "free" services like Mint and CK earn by double-dipping into users' financial data: 

- __Targeted Ads:__ CK knows your credit/debt info, and Mint knows your spending habits — they can charge advertisers for *highly targeted* ads based on your financial situation. 
- __Referral Commissions:__ If you click on one of the Capital One card ads CK or Mint show you, they could get a finders fee (aka referral commission) if you sign up. 


_2 scoops of Data Double Dip, with a generous Premium topping_

Data

__Intuit wants to be the [Facebook](https://www.nytimes.com/2020/02/23/business/dealbook/credit-karma-intuit-deal.html) of personal finance...__ Its CEO [thinks](https://www.benzinga.com/news/earnings/20/02/15398374/intuit-reports-q2-earnings-beat-acquires-credit-karma-for-7-1b) the Credit Karma acquisition will "create a personalized financial assistant to help consumers find the right financial products..." Key words: *personalized* and *products*.

- Intuit can offer a free service, get your  financial data, and find ways to __turn that intel on your wallet__ into revenue by selling targeted ads and partner products.
- Facebook does the same with __social intel you reveal on Instagram__.

Intuit acquires Credit Karma for $7.1B so it can become the Facebook of finance

__An everyone problem...__ Coronavirus. The World Health Organization hasn't declared it a global pandemic yet — that would mean uncontained global spread and large scale deaths. But 2 more countries are scrambling to control the infectious disease:

- __South Korea:__ [231 new cases](https://time.com/5789596/south-korea-coronavirus-outbreak/) on Monday, bringing the total to 833. The highest level of national alert was issued there.
- __Italy:__ Now the [largest](https://www.cnn.com/2020/02/23/europe/italy-novel-coronavirus-spike-intl/index.html) coronavirus outbreak outside of Asia — cases surged from 3 on Friday to over 219 on Monday. Over 50K people in 11 northern Italian towns are under [quarantine](https://www.telegraph.co.uk/news/2020/02/24/nightmare-inside-italys-coronavirus-quarantine-zone/). 

__Think of each country as a huge factory...__ a huge shopping mall, and a huge tour group. China's 3 economic "personas" have all been shuttered because of coronavirus. And that's affecting the whole world:

- __China, The Factory:__ Companies like __Apple__, __Nike__, and __Honda__ shut down Chinese factories and/or slow production. [94%](https://fortune.com/2020/02/21/fortune-1000-coronavirus-china-supply-chain-impact/) of the Fortune 1000 companies are seeing coronavirus supply chain disruptions. 
- __China, The Mall:__  People in China are staying home to avoid catching/spreading the disease — that hurts Chinese consumer spending (__Apple__, __McDonald's__ and __Starbucks__ shuttered stores).
- __China, The Tourist:__ China has over 1.4B people and an outsize impact on global tourism. Travel restrictions have hit the airline, hotel, and luxury retail industries outside China especially hard. 

Spread

__The economy has reason to worry, but not to freak out....__ Over 2.5K coronavirus deaths have been reported so far in China, and at least 33 in other countries. The WHO [thinks](https://www.npr.org/sections/goatsandsoda/2020/02/24/808893094/coronavirus-has-pandemic-potential-but-isn-t-there-yet-who-says) it has "pandemic potential." And it's taking a real toll on global markets.

- But long-term investors shouldn't panic, [according to](https://www.forbes.com/sites/sergeiklebnikov/2020/02/24/heres-what-warren-buffett-says-about-the-coronavirus-and-his-outlook-on-stocks/#32b35ebb182c) "buy low, sell high" guru Warren Buffett: __"We think the 20 and 30-year outlook is not changed by the coronavirus.”__
- TBD how investors will continue to __react in the short-term__. 



Coronavirus is a factory/mall/tourist triple whammy — and it just entered 2 more countries

💰 Intuit's $7B Credit Karma splurge 

__This is a smog-free zone...__ Upstate New York's __[Plug Power](https://robinhood.com/stocks/PLUG)__ wants to be the "leader in powering electric motors" — but it's 23-years-old and definitely isn't that. It's taking a different approach than Tesla to clean electric motors: The Hydrogen Fuel Cell. Now it's getting major attention from investors in its 24th year.

- __Battery electric:__ Drives ~250 miles on a charge. Great for most car owners, because 99% of drives are shorter than that. Charge the car overnight with your garage outlet.
- __*Fuel cell* electric:__ For industrial vehicles (think forklifts, buses, delivery trucks), battery doesn't work as well because charging takes hours. And hours of not moving is big lost $$$. Fuel cell is as green as battery, but takes minutes to *fill up* instead of hours to *charge up*. 
- *__For the chemistry fans (how Fuel Cell works):__* Hydrogen and Oxygen [enter](https://www.plugpower.com/about-us/fuel-cell-benefits/) a fuel cell engine, then electricity, heat, and water go out. 

__But you've still never heard of Plug Power...__ Until this year. In January, the company announced a major [order](https://www.ir.plugpower.com/Press-Releases/Press-Release-Details/2020/Plug-Power-Receives-172M-Order-for-Hydrogen-and-Fuel-Cell-Solutions-From-Fortune-100-Customer/default.aspx) from one Fortune 100 company — the single order will generate nearly as much revenue ($172M) as Plug Power made in the entire past year ($191M). It also announced a [new engine](https://www.ir.plugpower.com/Press-Releases/Press-Release-Details/2020/Plug-Power-Partners-with-Lightning-Systems-to-Build-Zero-Emission-Middle-Mile-Delivery-Solution/default.aspx) it's working on specially for delivery trucks. But __its stock has risen over 150% in 5 months__ and 27% just last week... despite 2 decades of consistent unprofitability.

_When a stock hits "cult" speed_

Moon

__We have to talk about "cult stocks"...__ 3 stocks this year have enjoyed gigantic stock price jumps that can't really be explained by fundamentals or company news. __[Tesla](https://robinhood.com/stocks/TSLA)__ and __[Virgin Galactic](https://robinhood.com/stocks/SPCE)__ both hit the upper stratosphere of Wall Street recently, and elements of their inexplicable rise can be seen in Plug Power (although valued at under $2B, Plug Power is much smaller). We noticed a cult stock formula:

- Each features a combo of __charismatic leader__, __revolutionary product__, and __tons of attention on Reddit__.
- [CNBC](https://www.cnbc.com/2020/02/19/add-surging-plug-power-to-the-list-of-stocks-seeing-big-speculative-trading-right-now.html) credits Plug Power's rise to campaigns on Reddit, while the [Financial Times](https://ftalphaville.ft.com/2020/02/20/1582193215000/Reddit--bull-attack/) cites "coordinated buying."
- In the long run, fundamental profitability is the key driver of a stock price, so cult stocks can be vulnerable to fall if their buzzy status passes. 


Plug Power looks like the latest "cult stock" to want to join Tesla and Virgin Galactic

__Put your back Intuit....__ The creator of TurboTax and QuickBooks is adding to its clique of popular financial products, just in time for tax season. __[Intuit](https://robinhood.com/stocks/INTU)__ is close to striking a [deal](https://www.wsj.com/articles/intuit-near-deal-to-buy-credit-karma-for-7-billion-11582433880?mod=hp_lead_pos1) to buy privately held __Credit Karma__ for $7B — its largest acquisition ever. In 2009, Intuit acquired budget tracker Mint for $170M. Now Intuit's splurging more because it wants to be aggressively involved in your daily finances (not just your yearly tax frenzy). 

__Tastes better when you DIY...__ __[Domino's](https://robinhood.com/stocks/DPZ)__ global sales jumped 8%, sending shares up 30% last week. It's one of the only big chains that refuses to partner with delivery apps like __Gruhub__ and __DoorDash__. For years, it's taken a [DIY approach](https://snacks.robinhood.com/newsletters/4dQzmfcL6V8Dtknj3cmAs4/articles/7t7MNxjGP1Bmx1DtzDt9BN) to delivery, investing big in its own app — now it's expanding GPS-pizza tracking for hangry orderers. FYI, takeout now makes up *nearly half* of Domino's orders — and it's more profitable than delivery (because delivery costs extra time & money). 



Highs

Who's up...

__Don't hate the player...__ hate the benchmark. Shares of Warren Buffett's legendary holding company __[Berkshire Hathaway](https://robinhood.com/stocks/BRK.B)__ rose 11% in 2019 — not bad, right? Until you compare that with the [S&P 500](https://learn.robinhood.com/articles/7kFFEUv46vmMCmMfLuNiRX/what-is-the-s-and-p-500/), which jumped 31.5% last year. That means that if you'd invested in an S&P 500-tracking [ETF](https://learn.robinhood.com/articles/QkpPOCYYd2fMe76837dvG/what-is-an-exchange-traded-fund/) for all of 2019, you would've made a 31.5% return (that's almost triple the return of Buffett's baby). But Warren reminded us as always in his annual [letter](https://www.berkshirehathaway.com/letters/2019ltr.pdf) to shareholders (which came out Saturday) that Berkshire has performed twice as well as the S&P 500 historically since 1965.

__Secret goes private...__ __Victoria's Secret__ was sold off by struggling parent __[L Brands](https://robinhood.com/stocks/LB)__. And get this: the lingerie chain is only worth $1.1B as a private company. Vicky hasn't adapted well to an era of inclusivity and bralettes — slowing sales and [bad PR](https://www.nbcnews.com/news/us-news/former-jeffrey-epstein-pal-leslie-wexner-steps-down-ceo-victoria-n1139916) dropped L Brands' value by 75% over 5 years. With the sale of VS (and its PINK brand), all L has left is a healthy-ish __Bath & Body Works__ brand. Scented shower gel may help clean the financial woes. 


Lows

...and who's down

💫 Plug Power hits "cult speed"

__Anything you can do, I can do better (alone)...__ __[Domino's](https://robinhood.com/stocks/DPZ)__ just delivered a hot box of tasty earnings — without relying on food-delivery middlemen. The pizza chain [beat](https://finance.yahoo.com/news/dominos-pizza-dpz-beats-q4-134501951.html) both sales and profit expectations in the 4th quarter, sending shares up a steamy 26%. Extra impressive, given Domino's DIY attitude:

- __Delivery app middlemen__ like __DoorDash__ and __Grubhub__ promise to boost restaurants' sales, but they take a cut of that money. 
- __Restaurants don't want to splurge__ on their own delivery app/drivers, so they'll partner with  apps for tech + exposure despite the fees. __Shake Shack__, __Starbucks__, and __Wendy's__ are all [listed](https://delivery.starbucks.com/) on partner apps. 
- __Domino's is 1 of the only__ big chains that refuses to work with outside delivery apps — it thinks commissions are lame and wants to have control over its customer service (and guard against cold pizza).

__Domino's is one of the OGs...__ that popularized delivery — it was always DIY. But now with increased competition from the apps, it's rolling up its sleeves to beef up its delivery/carryout game: 

- __Online:__ Introduced online-ordering for carryout, and an app that shows real-time GPS order tracking. Its [AnyWare](https://anyware.dominos.com/) platform lets you even order via Alexa, Slack, or Apple Watch.
- __Speed:__ Introduced designated lanes in stores to cut wait times for carryout — it's also building more stores to be closer to pizza lovers and slice delivery times.



_Tastes better when you Do It Yourself_

Grub

__DIY carryout could be Domino's future...__ Efficient carryout operations can hurt delivery middlemen — if there's a Domino's 8 min away from your house, you prob won't be down to pay for delivery/tip on Postmates. Carryout now makes up nearly *half* of Domino's orders, up from about 30% in 2012. And carryout is more profitable than delivery (no drivers to pay). Maybe Domino's will scrap dine-in altogether (have you ever actually sat down in one?). 

Domino's wins with its DIY attitude (and its takeaway-only HOV lanes)

__Sharp left on Wall Street onto Main Street...__ The intersection __[Morgan Stanley](https://robinhood.com/stocks/MS)__ just landed on by buying __[E-Trade](https://robinhood.com/stocks/ETFC)__.  MS is an OG Wall Street bank that has historically done big deals for large institutional clients, corporations, and million/billionaires. But it just dropped $13B for a discount online broker. Why?

- __Main Street push:__ MS wants to manage money for regular people — it thinks gaining retail investors will be a more durable (and less risky) biz model.
- __What E-Trade brings:__ 5M retail customers and their $360B in assets (an average of $72K per customer). MS will also get E-Trade's online banking biz, which is clutch.

__Wall Street thought E-Trade was a goner...__ E-Trade used to make 18% of its revenue from stock trade commissions ($7 on each buy and sell). But after __Robinhood__ introduced commission-free trading in 2013 (disclosure: that's us), brokerages were under pressure to go to $0. In October, Schwab [ended](https://snacks.robinhood.com/newsletters/3nFFPd0MfjBs5AqG8088gu/articles/5YfrqB1klOSuz0H52tu48Z/) its commission fees, and E-Trade kinda had to follow. Its stock plunged 14% that day as a big source of revenue was erased. But MS still sees strength in E-Trade... 

- __So it's paying a huge premium__ to buy E-Trade — 34% more than its October value before its commissions got killed.
- __E-Trade shareholders celebrated__ (its stock rose 22% yesterday). It wasn't so cool for MS shareholders (MS fell 5%).

Acquire

__This deal saves MS loads of *time*...__ and time is money. __[Goldman Sachs](https://robinhood.com/stocks/GS)__ — MS' arch rival — has spent 4 years trying to become a retail bank with its Marcus savings account — and it's still losing money on that unprofitable division. Making a product/market shift takes time for any business. But by acquiring E-Trade, MS just became a retail bank overnight — and it's already profitable on day 1. 

Morgan Stanley snatches up E-Trade to go after sub-millionaires

__It was a public Secret...__ But now it's a *private* Secret (and less of an oxymoron). __Victoria's Secret__ is being sold by its parent __[L Brands](https://robinhood.com/stocks/LB)__ — the lingerie legend and its teen-friendly offshoot Pink will be taken private at a $1.1B valuation. Private equity firm Sycamore Partners gets 55% of VS, while L Brands keeps the rest of its former child. L has been [struggling](https://snacks.robinhood.com/newsletters/6dHf0IKoXordQpWw5SfXlp/articles/7cMpQYST3D9SL5IWBdfVri/) lately...

- __L Brands' [market value](https://learn.robinhood.com/articles/GByCbiOluG2kcWs1AF6m5/what-is-market-capitalization/) has fallen 75%__ in the past 5 years, from $29B to $6.4B.
- The decline's been driven by Victoria's Secret, which __hasn't aged well in the era of inclusivity and bralettes__. The $1.1B value is less than the Gap (which is struggling) - by over 80%.
- That leaves L Brands with just its __Bath & Body Works__ chain (because hygiene is *not* a fad).

__We hear a lot about private companies going public...__ not so much the opposite (except for Elon's [tweets](https://twitter.com/elonmusk/status/1026872652290379776?lang=en)). PE firms usually take out big loans for these buyouts, which they often pass on as debt to companies like VS — this has resulted in quite a few bankruptcies (__Toys R Us__, __Payless__), but also some successes (__SeaWorld__, __Canada Goose__). 

Sell

__VS (badly) needs a makeover...__ The brand has lost touch with customers. If Sycamore Partners is just bargain hunting — like stripping a car for parts — VS could be done for. But this could also be a great opportunity to rebrand, by focusing more on the athleisure-minded Pink line. Plus, new ownership could help distance VS from the controversial Les Wexner, who's stepping down as chairman/CEO.

Victoria's Secret goes private at $1.1B — could go 1 of 2 ways

🍕Domino's DIY Win 

__Low as a kite...__ Google's parent __[Alphabet](https://robinhood.com/stocks/GOOGL)__ is shutting down energy kite startup __Makani__, which wanted to make wind energy cheaper by flying power-harvesting wind turbine kites in the air (tbh, they [look](https://www.theverge.com/2020/2/19/21143540/alphabet-discontinues-makani-flying-wind-turbine-drone-kites-clean-energy) more like small planes). But yesterday, Alphabet announced that it's pulling the plug on one of its most innovative companies. It's an attitude shift:

- __Google's main biz__ is ad sales from its ginormous online platform (Google search, YouTube, Google Maps, etc) — ad sales are [85%](https://www.reuters.com/article/us-alphabet-results/google-parents-shares-dive-as-youtube-changes-competition-hurt-revenue-idUSKCN1S521N) of its revenue. Buuut... Google wants to be more.
- __Enter "X",__ Google's secretive lab of moonshot projects, part of its "Other Bets" division. X is all about making cool stuff: think do-gooder, futuristic projects like self-driving cars (__Waymo__), LTE balloons (__Loon__), and drone delivery (__Wing__). All — including Makani — graduated from X into Alphabet subs. 

__Getting in a gym sesh before 7am...__ Google's moonshot goals are a little more ambitious — and waayy more expensive. CEO Sundar Pichai has [said](https://www.forbes.com/sites/jilliandonfro/2020/02/18/alphabet-shutters-its-energy-kite-company-makani/#7091fbd72b20) Alphabet will increasingly start seeking 3rd-party investors for Other Bets, because:

- __$2.7B & $3.4B__: How much Google lost on "Other Bets" in 2017 and 2018
- __$4.8B:__ "Other Bets" [loss](https://www.ft.com/content/56582032-528e-11ea-8841-482eed0038b1) last year. We're sensing a trend... 

"_So you're saying it won't actually reach the moon?_"

__Other Bets are 'future insurance'...__ Google is big enough to afford moonshots, and in a way, it can't afford *not* to take them: It risks being left in the dust when a huge opportunity hits (#DontMissTheNextiPhone). So far, its 1 big win is Waymo ([valued](https://www.cnbc.com/2019/09/27/waymo-valuation-cut-40percent-by-morgan-stanley-to-105-billion.html) over $100B). But... Makani is the 1st moonshot to shutter since Pichai became Alphabet's CEO in December as the co-founders, who were major champions of the passion projects, retired. We think that signals a shift in openness to fund riskier moonshots.


Google's parent shuts down a "moonshot" — could be the new normal

__An OGPS makes a comeback...__ An original GPS company. We're talking __[Garmin](https://robinhood.com/stocks/grmn)__. The GPS-tech company was founded in 1989 by Gary Burrell and Min Kao (hence, "Gar-Min"). Its stock just hit a 12-year high on an A+ earnings report: quarterly profit nearly doubled, jumping to $361M in Q4. Garmin has a bunch of divisions, but it's lost some of its consumer-appeal over the years. Enter the smartphone...

- __Car GPS:__ Garmin introduced GPS III in 1997 to guide your commute (your dashboard is still bruised from the suction cup) — now you connect apps like Google Maps to CarPlay instead. Garmin's auto revenue declined [14%](https://www8.garmin.com/aboutGarmin/invRelations/reports/2019_Q4_Earnings_Call_Webcast_Slides.pdf) last year and profits are close to zero.
- __Wearables:__ Garmin's Foretrex was the wrist-worn GPS sported by joggers in the early 2000s (1st gen iPod not included). Then Fitbit and Apple took over the wrists of casual joggers. Garmin is still in the wearables game, but [lags](https://www.cnet.com/news/apple-still-tops-growing-global-smartwatch-market/) marathons behind Apple.
- __Handheld GPS:__ Garmin launched the compact eTrex in 2000. Now "handheld GPS" is synonymous with smartphone.

__To beat iPhone...__ go where iPhone won't have service. And Garmin's winning in areas like: Marine GPS (no bars in the ocean), Aviation GPS (does inflight WiFi even work?), and Outdoors (think extreme skiing). Garmin wants to be 35K feet in the air and 30K leagues under the sea — anywhere iPhone can't. 














Track

__Don't underestimate the power of Barriers to Entry...__ The road less traveled is usually toughest, but Garmin uses it to its advantage. Marine/aviation are tougher areas for others to enter than regular consumer markets — that means less competition. GPS guiding a military plane is a bigger technical responsibility than GPS guiding you to Starbucks. With big responsibility comes a fat profit margin — Garmin made [74 cents](https://www8.garmin.com/aboutGarmin/invRelations/reports/2019_Q4_Earnings_Call_Webcast_Slides.pdf) of profit for every $1 of aviation sales. 



Garmin takes the road less traveled to Profit Land

🌙 Google ends a moonshot

__XL-sized cart full of "meh"...__ __[Walmart](https://robinhood.com/stocks/WMT)__'s disappointing  earnings. Physical store sales for the world's largest brick-and-mortar retailer rose barely 2% (a slowdown from last year's 4.2% growth). But there's light at the end of the aisle: ecommerce sales popped 37% for the year. The star? Walmart's online grocery biz.

- __Milking it:__ With its [265M](https://corporate.walmart.com/our-story) weekly global customers, 11.5K physical stores globally, and reputation for the lowest prices (outside Amazon), Walmart has the loyalty and locations to scale online grocery.
- __Lettuce rejoice:__ So Walmart's speedily [expanded](https://techcrunch.com/2020/02/18/walmart-reports-lower-than-expected-q4-earnings-despite-e-commerce-sales-growth-of-35/) online grocery — 3.2K locations  will bag your groceries ahead so you can just pickup curbside, while another 1.6K spots will cruise the aisles, bag, and deliver to your door. But...

__Walmart's overall ecommerce biz is still unprofitable...__ E-sigh. It's leaning into online grocery — which it thinks has profit puppy potential — while leaning out of its e-acquisitions:

- __Like an Innovation Vampire__, Walmart scooped up hip ecommerce startups to compete with Amazon, sucked the valuable digital lifeblood out of them, and threw them to the curb when they didn't live up to expectations. It's the *Twilight Saga*, but for retail.
- __After splurging on innovative companies since 2015__, Walmart's recently sold off __ModCloth__, laid off hundreds at __Bonobos__, ended __Jet.com's__ grocery biz, and just announced it's shutting down shopping service __JetBlack__. 


__Cash in the (e-grocery) bag...__ Grocery shopping is a habit. And owning habits means $$$ — [Over 1/2](https://www.wsj.com/articles/walmart-posts-mixed-holiday-sales-11582025656) of Walmart's US sales are from food. The US online grocery market is still in toddler stage, but it's predicted to take 20% of all grocery sales by 2025. Since [90%](https://corporate.walmart.com/newsroom/2019/02/13/automation-is-reshaping-work-across-america-a-new-report-explores-the-impact-and-how-communities-might-respond) of Americans live within 10 miles of a Walmart, its curbside/delivery grocery game boasts a critical foundation. That's how it can stay ahead of __Amazon__, __Instacart__, and __Target__.

Walmart's online grocery is thriving

__5 Stars for Convenience...__ 0 stars for congestion. The __[Uber](https://robinhood.com/stocks/UBER)__ and __[Lyft](https://robinhood.com/stocks/LYFT)__-led ride industry has made life easier for many: whether it's having a few too many margaritas with dinner, visiting a new city, or needing a ride to the airport. It's also never been harder in one way: traffic. Here's the low-down, based on studies summed up by the [WSJ](https://www.wsj.com/articles/the-ride-hail-utopia-that-got-stuck-in-traffic-11581742802#comments_sector):

- __The Pitch:__ Uber/Lyft pitched themselves as ride-sharing apps (picture 4 strangers in a Prius heading the same direction). Five years ago, Uber founder Travis Kalanick [said](https://www.wsj.com/articles/the-ride-hail-utopia-that-got-stuck-in-traffic-11581742802#comments_sector) it would end congestion: "*If every car in San Francisco was Ubered there would be no traffic.*"
- __The Reality:__ Congestion got worse. Most riders hail private cars — an estimated 70%-80% of rides in major metro areas are non-pool. Drivers in NYC and California cruise without passengers ~40% of the time. Though Lyft estimates 500K Americans gave up personal cars thanks to *ride-hailing* (not ride-sharing).

__Negative effects take a back-seat...__ When you can get contact solution delivered to your door same-day by Amazon, you're probably not thinking about delivery vehicles congesting streets. Similarly, users of ride-hailing services are likely to think more about convenience than traffic or pollution.




Ride

__Fibbing about your mission can be a (disturbingly) successful strategy...__ The reality of ride-hail apps is more driving, more traffic, more pollution, more horn honking, more air fresheners. If we were woke sooner to Uber being part of a problem, not part of a solution, we may be less likely to have started Ubering. But now Lyft/Uber are here to stay, despite years pitching a mission that wasn't accurate.


Society's winners and losers of Uber and Lyft (it's a love/hate relationship)

_When the curbside pick-up takes less than 10 minutes_

🥬 Walmart's big e-grocery bet 

__Cue the "high" jokes...__ __[Canopy Growth](https://robinhood.com/stocks/CGC)__, Earth's biggest cannabis company, whipped up a surprise Friday: Stronger-than-expected revenues and a smaller-than-expected loss. Sales were up [62%](https://www.canopygrowth.com/wp-content/uploads/2020/02/200213-CGC-Press-Release-Quarterly-DC-v1.pdf) from last quarter, and operating expenses were down 14%. That combo forms a soothing CBD balm on the bruised cannabis industry:

- __Canada's green wave:__ In October 2018, recreational weed was legalized nationwide in Canada, making Amsterdam feel Puritan.
- __The Willy-Wonka-moment investor dream:__ By early 2019, __[Aurora Cannabis](https://robinhood.com/stocks/ACB)__, __[Tilray](https://robinhood.com/stocks/TLRY)__, and __Canopy__ rocketed to multi-billion dollar valuations — everyone wanted to own a piece of the legal cannabis factory, which was expected to boom.
- __The buzzkill reality:__ Consumer demand [didn't meet](https://snacks.robinhood.com/newsletters/5rc41cYVIJqFIaeHESJL4Q/articles/7oCEM6Su7WwK3R1ovHEKGW) those sky-high expectations — and enthusiastic cannabis co's found they'd over-produced. Didn't help that the US legalization trend (11 states so far for recreational pot) seems to have [stalled](https://www.fool.com/investing/timeline-for-marijuana-legalization-in-the-united.aspx).  
- __The popped bubble:__ Those top Canadian pot stocks started 2020 down by ~60% from the highs they reached just a year before — Tilray's fallen nearly 90%. 

__Aaaand exhale...__ Canopy's strong earnings [lifted](https://www.marketwatch.com/story/canopy-roars-higher-after-better-than-expected-earnings-and-sparks-rally-in-cannabis-sector-2020-02-14) its own stock 13% on Friday. Then it passed the fun to the right — pot peers Aurora and Tilray both jumped almost 8%, and so did smaller cannabis companies in the US and Canada.

Rise

__Is this the end of the dip?...__ Despite the bubble-hype, cannabis can still sit back and enjoy some trends in its favor: It's seen as a safer alternative to opioids, US states have legalized, and CBD-infused-everything is killing social stigma. Young industries just need time to mature, hash out their issues, and self-select leaders. But every cannabis company is different — Canopy rival Aurora just reported an almost [$1B loss](https://www.marketwatch.com/story/aurora-cannabis-shares-rise-after-an-earnings-report-that-was-mostly-expected-2020-02-13) over just 3 months.

Canopy Growth's surprise earnings hint at a cannabis turnaround

__It's like Ben & Jerry's giving up dairy...__ 98% of __[Delta's](https://robinhood.com/stocks/dal)__ hefty carbon footprint is jet fuel, so it's announced a new [bold](https://news.delta.com/delta-commits-1-billion-become-first-carbon-neutral-airline-globally) move: *Become the world's 1st carbon neutral airline by 2030.* Delta's splurging $1B starting in March to get there, but the plan is mostly through carbon offsets (paying for a certificate for someone *else* to plant trees or install solar panels). Sustainability pressure on a majorly polluting industry just hit a fresh milestone.

__Wedding bells...__ __[T-Mobile](https://robinhood.com/stocks/TMUS)__ and __[Sprint](https://robinhood.com/stocks/S)__ won [approval](https://snacks.robinhood.com/newsletters/PmRtD9krW8T3WMf5elaP3/articles/61rPuJhCjslevX0uRucLKO) from a judge for their long-delayed merger marriage — 13 states had sued to block the mega-merger, saying it would reduce competition and lead to pricier phone bills. But the judge doesn't think it's so clear. If this decision stands, we're left with a three-opoly of major carriers: __Verizon__, __AT&T__, and the new __T-Mobile__.










__Everybody hurts...__ even $1.4T __[Apple](https://robinhood.com/stocks/AAPL)__. On Monday, it [revealed](https://techcrunch.com/2020/02/17/apple-will-miss-revenue-forecast-as-coronavirus-impacts-its-manufacturing-sales/) it doesn't expect to meet its 2nd quarter revenue forecasts — that's less than a month after [posting](https://snacks.robinhood.com/newsletters/1TSUKPobYVfVzeGc1Gkbyq/) its biggest quarterly profit. Ever. Coronavirus has slowed Apple's iPhone supply chain as factories shut across China. Plus, sales in China are already suffering as locals [stay home](https://www.cnn.com/2020/02/14/asia/coronavirus-work-from-home-intl-hnk-scli/index.html) instead of heading to work or shopping for new noise-cancelling AirPods.

__Brand is everything...__ Ecommerce startup __Brandless__ is [shutting down](https://snacks.robinhood.com/newsletters/7DiobMh6pvFOwBiAXdpRIf/articles/6Fi1JZs20TirSMZokP08Xa) after failing to build a brand without a brand. The Softbank-backed company tried to make products cheaper for consumers by saving on marketing costs, cutting out grocery stores, and deleting logos. But its no-frills, health-conscious go-to's ($3 organic cashew butter, cruelty-free moisturizer, etc) weren't able to compete in the crowded direct-to-consumer space where brand wins.

_"Those our sales numbers? Nice."_

🍃Canopy Growth saves cannabis

__Time to get money...__ __[Tesla](https://robinhood.com/stocks/TSLA)__'s stock has been having [a moment](https://snacks.robinhood.com/newsletters/23rAZNGewLgeWZFmLjk94T/articles/2FGrtDgStyRFOOhKpFOiRE) — its [market cap](https://learn.robinhood.com/articles/GByCbiOluG2kcWs1AF6m5/what-is-market-capitalization/) is now $144B, worth nearly double Ford and GM's *combined* $83B value. Now, Tesla is cashing in by issuing $2B worth of new stock — 2 weeks after Elon [said](https://www.reuters.com/article/us-tesla-offering/tesla-seeks-to-tap-into-stock-surge-with-2-billion-share-sale-idUSKBN2071OY) raising money "doesn't make sense." Tesla stock dipped at first (because new shares [dilute](https://learn.robinhood.com/articles/5rlezLS4uMuf3cZTyEAo38/what-is-stock-dilution/) the value of existing shares), but quickly bounced back.

__Unusual move for a large, public company...__ but it makes sense. That's because swings in a stock price don't directly affect the company -— A Tesla stock surge doesn't influence its bottom line. *Unless* the company decides to issue and sell new shares: 

- __IPO:__ An [Initial Public Offering](https://learn.robinhood.com/articles/6UsdUrlnUvxiDpDT4D2bup/what-is-an-initial-public-offering-ipo/) price *does* matter, because the company is directly selling new shares for the first time to the public (the higher the stock price, the more $$$ the company collects).
- __Secondary Market:__ Once those shares are in the hands of regular investors, *we* are the ones who benefit or lose from the stock price's rise/fall. When you own a stock and sell it high, *you* get money, not the company. 



_Tesla: "Let's get this bag"_

Raise

__Tesla shares are kind of like second-hand Gucci bags...__ Gucci only makes money off the initial purchase — not when the original buyer sells the special edition purse for a higher price years later. Neither do publicly-traded companies when you sell their shares. But by offering *new* shares to the public, Tesla can raise cash to fund its projects, like the 4th Gigafactory that's currently [finding space](https://electrek.co/2020/02/13/tesla-starts-deforestation-process-gigafactory-berlin/) in a forest near Berlin.


Tesla is finally cashing in on its stock price, offering $2B in new stock

__The classic Heinz ketchup bottle...__ hasn't changed much during the company's 151-year history. Condiment legend Heinz merged with mac-n-cheese icon Kraft back in 2015 to form __[Kraft Heinz](https://robinhood.com/stocks/KHC)__. The food giant's latest 5% drop in quarterly sales knocked shares down 8% Thursday — probably a result of Kraft's lack of healthy food options:  

- __Think of processed pantry puppies__ like Jell-O, Oscar Mayer, Capri-Sun, and Lunchables — all Kraft Heinz brands. All boasting unpronounceable ingredient lists.
- __Consumers have been moving__ away from super-processed foods, towards healthier/trendier "whole" foods snacks like Greek yogurt, almond butter, and protein bars that show off their (lack of) ingredients.

__Kraft's labels are in pain...__ The company had to [write down](https://www.marketwatch.com/story/why-the-154-billion-kraft-heinz-brand-write-down-was-unusual-2019-02-22) the value of its old-school brands by $15B last year — just yesterday, Kraft Heinz announced that Maxwell House coffee is worth $213M less than you thought. Add that all up and Kraft Heinz's stock has plunged over 70% in the past 3 years, and 40% in the past year alone.

__Kraft needs to ketchup to the times...__ because it's getting left behind by its rivals. Its sugary Big Food peers have been busy acquiring cool, health-centric startups — without having to innovate themselves:

- __Kellogg__ bought RXBar, when it was the [fastest growing](http://newsroom.kelloggcompany.com/2017-10-06-Kellogg-adds-RXBAR-fastest-growing-U-S-nutrition-bar-brand-to-wholesome-snacks-portfolio) nutrition bar in the US.
- __General Mills__ bought Annie's Organic and Epic meat-based bars.
- __Hershey's__ acquired SkinnyPop popcorn. 

Kraft Heinz sales fall as it doubles down on processed food

__Not so fast...__ __[Microsoft](https://robinhood.com/stocks/MSFT)__ scored a huge win by snagging the Pentagon's $10B cloud computing contract (aka the "JEDI" deal) back in October. Cloud-competitor __[Amazon](https://robinhood.com/stocks/AMZN)__ wasn't so pleased, so it [appealed](https://snacks.robinhood.com/newsletters/3LqtV85M89Jc6D6iWOYgE0/articles/4oud1BIj8oUwneA9uooyDi/) the decision in December. *Now,* a federal judge ordered a temporary [block](https://www.cnbc.com/2020/02/13/amazon-gets-restraining-order-to-block-microsoft-work-on-pentagon-jedi.html) on JEDI in response to Amazon's lawsuit.

- __JEDI:__ Over 10 years, Microsoft would modernize/build the Department of Defense's IT in the cloud (cloud: think a Google Doc stored on the internet, vs. an OG Word Doc stored on your laptop). Microsoft's servers would store/crunch government data.
- __AWS:__ Amazon's cloud-computing giant makes up 12% of Amazon's revenue, but a whopping __63% of its profit__. Amazon claims President Trump sabotaged its bid because he [doesn't like](https://www.thestreet.com/world/trump-vs-bezos-a-history-of-their-twitter-clashes-14859977) *The Washington Post* (which Amazon CEO Jeff Bezos owns).

__The DoD is America's largest employer...__ That means big data. And big data means big cloud cash — cash that's now on the line because of this temporary block. If the judge decides the DoD needs to reconsider its decision, Microsoft could lose the [biggest cloud contract](https://www.npr.org/2019/11/14/777585675/amazon-appeals-pentagons-choice-of-microsoft-for-10-billion-cloud-contract) in US history.

Block

__Cloud is the new oil...__ Like oil back when everything in the economy needed to be shipped and delivered in trucks, today's economy runs on cloud computing — Companies are moving to cloud providers to store their data and manage their biz apps, instead of doing it themselves. Now cloud leaders like Amazon, Microsoft, __Oracle__, and __IBM__ are increasingly fighting over these big cloud deals.

Microsoft's $10B deal with the Pentagon gets frozen, because of Amazon

💴Tesla cashes in on its high 

__Before [Spotify](https://robinhood.com/stocks/SPOT) and Apple Music...__ You turned to Pandora for "stations" that matched your mood, fiercely skipping to find that one song. But when you tired of Michael Bublé-ish, you'd turn to edgier __SoundCloud__ — your go-to for mashups and 50-minute tropical house mixes. The Berlin-based startup has been out of the limelight for years, but it just got a [$75M investment](https://www.engadget.com/2020/02/11/siriusxm-invests-75-million-soundcloud/) from __[Sirius XM](https://robinhood.com/stocks/SIRI)__ (which, coincidentally, owns Pandora): 

- __Street Cred:__ Described as "the YouTube of music," SoundCloud embraced user-generated tunes and became a place for up-and-coming creators to share their songs. It helped launch Chance the Rapper, Billie Eilish... and Elon Musk's [EDM career](https://soundcloud.com/user-209448905/dont-doubt-ur-vibe)). 
- __Growing Pains:__ Due to difficult licensing and monetization issues, SoundCloud almost went bankrupt. In 2017, it laid off nearly 200 employees and raised emergency funding.
- __Identity Crisis:__ As other streamers struck deals with the big record labels, SoundCloud started favoring ad-revenue-generating music from big stars at the expense of lesser-known artists, introducing paid subscriptions and licensed music.

__Still around...__ SoundCloud made $127M revenue in 2018. But it's moved further from the DIY roots that made it popular, while still lagging on the mainstream/money-making front. FYI, both Twitter and Spotify tried to acquire SoundCloud — and both deals fell apart.

__SoundCloud was late to the 'License Game'...__ Its early biz was more like users uploading songs to YouTube without copyright licenses. Now, record labels [insist](https://www.theverge.com/2017/7/21/15999172/soundcloud-business-model-future-spotify-streaming) on licenses to use their artists' music (they can get paid on streams). __Spotify__ was quick to strike these license deals, letting it to offer many more songs/artists (and draw more subscribers). By the time SoundCloud made its 1st label deal in 2014, Spotify and Apple Music were already leaders.



SoundCloud just got a $75M investment — but it's going through an awkward phase

__What's a Deepfake, again?...__ __[Facebook](https://robinhood.com/stocks/FB)__, with its 2.5B users sharing billions of posts, just made a new addition to its fact-checking army: a whopping [4 journalists](https://techcrunch.com/2020/02/12/reuters-facebook-fact-checker/). The 4 Reuters journalists will join a US fact-checking team that includes the Associated Press, PolitiFact, Factcheck.org, and thousands of FB-employed contractors. Oh, and don't forget machine-taught AI bots that spot potentially [false news](https://www.facebook.com/help/1952307158131536) and flag ALL-CAPS!!! posts.

- __'Tis the Season:__ Political ads season. Presidential primary elections are happening — and the outflow of political ads and posts is just gonna increase. FB's been in hot water for misinformation on its platform — and the jacuzzi is getting hotter. 
- __Cue the Fact Squad:__ We're calling it: __Factual Accuracy Investigation League__ (*or F.A.I.L., for short*). This crew of moderators, journalists, and bots has *a lot* on its plate (billions of posts per day, including generous servings of misleading, false, and manipulative information). 
- __Blog About It:__ Reuters' 4 journalists will review user-generated vids, pics, and headlines that were flagged or submitted for review. Then, they'll blog about whether something is true, false, or partially true. FB will use those conclusions to label bad info and limit its spread in the News Feed algorithm (by up to [80%](https://techcrunch.com/2020/02/12/reuters-facebook-fact-checker/)). 



Check

__It would really take an army...__ to actually fact-check and verify every single Facebook post for misinformation, since most is user-generated content. Even with its F.A.I.L. army, Facebook has become nearly too big to moderate. And Zuck still insists that it's a social network — not an editorial operation like The Wall Street Journal. Since Facebook is failing to keep up, you'll need to stay vigilent.

Facebook adds Reuters to its fact-checking army against quasi-impossible odds

_Realizing you're no longer as edgy SoundCloud, but also not as mainstream as Spotify_

Facebook adds to project F.A.I.L.

__I approve this relationship...__ Judge Victor Marrero to __[T-Mobile](https://robinhood.com/stocks/TMUS)__ and __[Sprint](https://robinhood.com/stocks/S)__. Approval of the biggest merger in the wireless industry powered Sprint stock up 77% (investors we're expecting this outcome). If the opinion remains unchallenged, we're left with 3 major carrier choices: __[Verizon](https://robinhood.com/stocks/VZ)__, __[AT&T](https://robinhood.com/stocks/T)__, and the new __T-Mobile__ (that ate Sprint). Here's the history of this complex courtship:

- __June 2018:__ T-Mobile's CEO announces that his company has agreed to merge with Sprint. The combo company – valued at $146B – would be split between 3 owners: Deutsche Telekom (T-Mobile's parent), SoftBank (which owns most of Sprint), and retail investors like you and us who own remaining shares. 
- __November 2019:__ The Department of Justice and the Federal Communications Commission approve the merger under certain conditions... But 13 states plus DC sued to block the deal, saying it would hurt competition and lead to pricier phone bills.

__Sprint has been [lagging](https://www.wsj.com/articles/a-decade-of-wireless-change-in-charts-11581459073?mod=article_inline) rivals for a while...__ so the judge doesn't think this deal will substantially hurt competition. Plus, regulators will make sure that __[Dish Network](https://robinhood.com/stocks/DISH)__ enters the game as a viable new service provider. Sprint will have to sell Dish 9M customers, but that'll still be a distant competitor to the Big 3. 



_When the parents approve of your complicated marriage_

Merge

__We have a three-opoly on our hands...__ Here's the pecking order now: Verizon #1, New T-Mobile #2, and AT&T #3. And a three-opoly could affect your bill:

- __Interpretation A: Competition has been reduced__, now that we've gone from 4 major players to 3. When there's less competition, companies tend to charge higher prices. 
- __Interpretation B:__ __Actually, this merger increases competition,__ because Sprint was never a real player and T-Mobile wasn't big enough to compete over future 5G networks. Now T-Mobile + Sprint can effectively challenge AT&T and Verizon. 

We've got a new "Big 3" in wireless: T-Mobile + Sprint gets approved

__Trying to make iPhone jealous...__ __Samsung__ just unveiled a gaggle of new phones at its Galaxy Unpacked event (ironically, it was packed). In 2019, more than 73% of phones globally were Android (even though iPhones are the majority in [all but 14](https://www.pcmag.com/news/mapping-state-by-state-tech-trends-android-vs-ios) US states). And Samsung is the Android leader, so we're looking at what it showed off:

- __S20 Line:__ Magically skipping 10 generations since the S10, Samsung showed off the Galaxy S20, the S20 Plus, and the S20 Ultra (has a superiority complex). It was all about the camera: video in 8K, strong zoom game, AR lenses.
- __Z Flip:__ This one stands out — A folding glass phone [you can flip shut](https://www.cnet.com/pictures/samsung-galaxy-z-flip/) when you feel #sassy (same idea as Motorola's flippable new [Razr](https://www.cnn.com/2019/11/13/cnn-underscored/motorola-razr-foldable-pricing-features/index.html)). Fold it laptop-style for easy video chatting, AKA "Flex Mode." Makes sense. Shipping starts Valentine's Day at a whopping $1,380. 

__Global smartphone growth has stalled...__ So Samsung is looking to maintain its worldly lead by jacking up its and introducing the first line of mainstream 5G phones. Plus, it's going nostalgic with circa 2008 foldable-ness.

Talk

__How far can "better" really get?...__ When cellphones first hit markets, annual improvements were dramatic. You switched from your plastic Nokia button phone to a touch-screen iPhone in just a few years. But now that smartphones are portable computers, that improvement has plateaued. How many more HD cameras can Samsung and Apple really stick on 6 inches of aluminum?

